title: Pharmacy Owner and Associate Sentenced for Health Care Fraud and Black Market Prescription Drug Diversion Scheme

component: Criminal Division

body_text: A pharmacy owner and an associate were sentenced for submitting false and fraudulent claims to Medicare and California Medicaid (Medi-Cal) for prescription drugs and engaging in a black market prescription drug diversion conspiracy. Irina Sadovsky, 54, of Calabasas, California, a pharmacist who owned Five Star RX, doing business as Five Star Pharmacy and Ultimate Pharmacy Inc., was sentenced on July 8 to two years and three months in prison. Shahriar “Michael” Kalantari, 56, of Los Angeles, was sentenced yesterday to one year and 11 months in prison. According to court documents and evidence presented at trial, from September 2016 to April 2017, Sadovsky conspired to submit fraudulent claims to Medicare and Medi-Cal for prescription drugs that were never dispensed to beneficiaries and instead were provided to her co-conspirators to sell on the black market. Sadovsky’s co-conspirators created fraudulent prescriptions, and Sadovsky recommended the combinations of prescription drugs to be written and checked the eligibility of the patients for reimbursement. Kalantari, who is not a medical professional, conspired with Sadovsky to defraud Medicare and Medi-Cal by generating false prescriptions. Kalantari’s co-conspirators obtained beneficiary information, which Kalantari then used to write or cause to be written false and fraudulent prescriptions for expensive prescription medication, including drugs used to treat HIV. These medications were not dispensed to patients, but rather were provided to a co-conspirator to sell on the black market. A jury convicted Sadovsky in October 2022 of one count of conspiracy to commit health care fraud and one count of conspiracy to engage in the unlicensed wholesale distribution of prescription drugs. A jury convicted Kalantari in November 2022 of one count of conspiracy to commit health care fraud, three counts of health care fraud, and one count of conspiracy to engage in the unlicensed wholesale distribution of prescription drugs. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office; and Special Agent in Charge Timothy DeFrancesca of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement. The FBI and HHS-OIG investigated the cases, with valuable assistance from the California Department of Justice. Counsel Alexis Gregorian and Trial Attorney Matthew Belz of the Criminal Division’s Fraud Section handled the sentencing hearings. Counsel Alexis Gregorian, Assistant U.S. Attorney Alexandra Michael for the Central District of California, formerly of the Criminal Division’s Fraud Section, and Justin Givens, formerly of the Criminal Division’s Fraud Section, tried the cases. The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit .


title: Former Boston Police Officer Sentenced for Overtime Fraud Scheme

component: USAO - Massachusetts

body_text: BOSTON – A former Boston Police officer was sentenced today in connection with an investigation of overtime fraud at the Boston Police Department’s evidence warehouse. Craig Smalls, 58, of Roxbury, was sentenced by U.S. District Court Judge Allison D. Burroughs to two years’ probation. Smalls was also ordered to pay a $16,000 fine as well as $16,252 in restitution. In July 2021, Smalls pleaded guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. From at least January 2015 through September 2016, Smalls submitted false and fraudulent overtime slips for overtime hours that he did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned. For the “purge” shift, Smalls claimed to have worked from 4 – 8 p.m., but he routinely left at 6 p.m., or earlier. For the “kiosk” shift, Smalls submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact he and, allegedly, other members of the unit only worked three-to-four hours of those shifts. Between January 2015 and September 2016, Smalls personally collected approximately $16,252 for overtime hours he did not work. To date, 15 Boston Police officers have been charged in connection with committing overtime fraud at the Boston Police Department’s evidence warehouse. Smalls is the third officer to be sentenced. Acting United States Attorney Joshua S. Levy; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Mark Grady of the Criminal Division prosecuted the case.


title: Sauk Centre Man Sentenced to More Than 19 Years in Prison for Producing Child Pornography

component: USAO - Minnesota

body_text: MINNEAPOLIS – A Sauk Centre man has been sentenced to 235 months in prison followed by 10 years of supervised release for coercing minors to produce sexually explicit images, announced United States Attorney Andrew M. Luger. According to court documents, Shawn Norbert Kulzer, 32, began chatting with a minor victim on Snapchat on or about January 2, 2023. Over the course of their conversation, Kulzer learned that the minor victim was under the age of 18, yet still pressured them to send nude photographs. In his plea agreement, Kulzer also admitted that he used and enticed a second minor victim to produce and send sexually explicit images over Snapchat. While on pretrial release for these charges, Kulzer obtained another cell phone and engaged in the same behavior with at least six additional victims. On March 14, 2024, Kulzer pleaded guilty in U.S. District Court before Judge Nancy E. Brasel to one count of production and attempted production of child pornography. At sentencing, Judge Brasel noted that Kulzer’s offense is “the nightmare that every parent thinks of when they think of online behavior involving their children.” This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children in crimes involving child pornography, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . This case is the result of an investigation led by the FBI, the Stearns County Sheriff’s Office, and the Sauk Centre Police Department. Assistant U.S. Attorney Emily Polachek prosecuted the case.


title: Contractor Admits Guilt in $1.5 Million Bid-Rigging Scheme

component: USAO - New Mexico

body_text: ALBUQUERQUE – A Shiprock man pleaded guilty in federal court to orchestrating a bid-rigging and money laundering scheme that defrauded a federally-funded Native American educational institution of approximately $1.5 million over a three-year period. According to publicly available court documents, William Badoni , 61, admitted to conspiring with his co-defendant, Elroy Harry, an employee of Kinteel Residential Campus, Inc. (KRCI) from April 2018 to June 2019 to obtain non-public information about construction projects and the bidding process. This information was used to give Badoni ’s company an unfair advantage in winning KRCI contracts. Badoni also arranged for the submission of falsified bids from other companies to circumvent KRCI's contracting policies. The contracts and related change orders resulted in revenue of approximately $1.5 million paid to Badoni ’s company by KRCI between 2016 and 2019. In exchange for this assistance, Badoni paid Harry approximately $50,000. These payments were made in cash and by check, using funds derived largely from the fraudulently obtained contracts. Additionally, Badoni admitted to conducting financial transactions to conceal the proceeds of the illegal scheme. This involved depositing portions of contract payments into bank accounts while taking other portions in cash to avoid creating records of payments made with fraudulently obtained funds. Harry pleaded guilty to conspiracy to commit federal program fraud and remains on conditions of release pending sentencing, which is currently scheduled for August 7, 2024. The Court ordered that Badoni remain on conditions of release pending sentencing, which has not been scheduled. At sentencing, Badoni faces up to twenty years in prison and a fine up to $500,000 or twice the pecuniary gain resulting from the fraud. Upon his release from prison, Badoni will be subject to up to three years of supervised release. U.S. Attorney Alexander M.M. Uballez, Jamie DePaepe, Special Agent in Charge of the Department of the Interior (DOI) Office of Inspector General, and Andy Tsui, Special Agent in Charge of IRS Criminal Investigation Denver Field Office, made the announcement today. The U.S. Department of the Interior, Office of Inspector General and IRS Criminal Investigation investigated this case. Assistant United States Attorneys Taylor F. Hartstein and Mark Probasco are prosecuting the case. # # #


title: Three Indicted for Armed Robbery of Cash Courier

body_text: BOSTON – Three men have been indicted for the February 2024 armed robbery of a cash courier in Swansea, Mass. The defendants allegedly robbed the courier at gunpoint; zip-tied and pepper sprayed the victim; and then burned the stolen getaway vehicle. Steven Madison, 38, of Bridgewater; Christopher White, 37, of Raynham; and Quentin McDonald, 25, of Brockton, were each indicted on one count of robbery interfering with interstate commerce, commonly referred to as Hobbs Act robbery; one count of conspiracy to commit Hobbs Act robbery; one count of arson of property used in or affecting interstate commerce; and one count of conspiracy. Madison and White were also indicted for brandishing a firearm in the commission of a crime of violence; one count of being a felon in possession of a firearm; and one count of possession with intent to distribute cocaine. The defendants were arrested and charged by criminal complaint in May 2024. According to the charging documents, in the early morning hours of Feb. 19, 2024, two men were seen on video stealing a rental van from a U-Haul Moving & Storage location in Abington, Mass. Later in the day an armed courier who worked for a company that provides secure cash transportation services for licensed cannabis companies arrived at a bank in Swansea, Mass. carrying approximately $436,200 in cash for deposit. It is alleged that the U-Haul van pulled up alongside the courier and a masked man wearing a camouflaged vest exited the van and pointed a firearm at the courier before zip-tying the courier’s hands behind his back. It is further alleged that a second masked man exited the U-Haul van and quickly loaded the cash into the vehicle. After trying to disarm the courier, the two men allegedly forced the courier into the back seat of his own car, pepper sprayed him and closed the door. Surveillance footage showed that the courier managed to remove one hand from the zip-tie restraints while inside his vehicle, draw his firearm and fire four rounds in the direction of the U-Haul van as it fled the scene before calling 911. After leaving the bank, the men allegedly drove the van to a nearby location in Swansea where they met with a third man driving an SUV. It is alleged that the men then transferred the stolen cash into the getaway SUV, burned the U-Haul van and fled. A subsequent investigation allegedly identified Madison, White and McDonald as the individuals involved in both the robbery and arson. It is alleged that during a search of Madison’s residence in Bridgewater, an estimated $5,000 or more in cash was located in various amounts throughout the house, as well as a Rolex watch appraised at $47,000, a sweatshirt similar to that worn by one of the robbers, a firearm, ammunition and cocaine. Following a search of White’s residence in Raynham, zip-ties, a black mask similar to that worn by one of the robbers, a firearm, ammunition and cocaine were recovered. According to the charging documents, both Madison and McDonald have prior state convictions for masked armed robbery, assault and battery by means of a dangerous weapon and unlawfully possessing a firearm. White has prior state convictions for larceny and receiving stolen property. The charge of Hobbs Act robbery provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of arson of property used in or affecting interstate commerce provides for a mandatory minimum sentence of five years and up with 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of being a felon in possession of a firearm provides for a sentence of up to 15 years in prison, three years of supervised release and a fine of $250,000. The charge of possession with intent to distribute cocaine carries a maximum sentence of up to 20 years and a $1 million fine. The charge of brandishing a firearm during a crime of violence carries a mandatory minimum sentence of seven years, to be served consecutively to any sentence on the underlying offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; and Swansea Police Chief Mark Foley made the announcement today. Valuable assistance was provided by the Bristol County District Attorney’s Office and the Bridgewater, Brockton and Raynham Police Departments. Assistant U.S. Attorney John J. Reynolds III of the Major Crimes Unit and Special Assistant U.S. Attorney Patrick Driscoll are prosecuting the case. The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Man Caught with Child Pornography After Approaching Children Sentenced to 11 Years in Prison

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – U.S. District Judge Ronnie L. White on Wednesday sentenced a man caught with child pornography after approaching children in Kirkwood to 11 years in prison. On April 12, 2022, Kirkwood Police Department officers were investigating allegations that Darrell Ray Sanders had approached children on the street. They identified Sanders as a person of interest and arrested him. At the police station, he admitted having child pornography on his cell phone. Investigators found images and videos containing child sexual abuse material on two cell phones belonging to Sanders. Sanders, 29, of Jefferson County, Missouri, pleaded guilty in February in U.S. District Court in St. Louis to one count of receiving child pornography and one count of possessing child pornography. The Kirkwood Police Department and Homeland Security Investigations investigated the case. Assistant U.S. Attorney Nathan Chapman prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Serial Rapist Indicted for Three Violent Stranger Sexual Attacks

component: Federal Bureau of Investigation (FBI)

body_text: WASHINGTON – Jose Angel Gomez, 42, formerly of Washington D.C., was indicted today by a District of Columbia grand jury on numerous counts of first degree sexual abuse while armed with aggravating circumstances and first degree sexual abuse with aggravating circumstances, for three rapes involving three different victims who were strangers to him, that occurred between July and October 2018, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD). On July 10, 2024, a District of Columbia grand jury returned an indictment, charging Gomez with three counts of first-degree sexual abuse while armed with aggravating circumstances, five counts of first-degree sexual abuse with aggravating circumstances, and two counts of assault with a dangerous weapon, for the attacks on the three victims. If convicted, Gomez faces a maximum penalty of life without release, and would be required to register as a sex offender for the remainder of his lifetime. Trial is scheduled to begin on September 17, 2024, before the Honorable Anthony Epstein. According to court documents, on July 15, 2018, at approximately 2:45 a.m., Gomez knocked on the back door of a home in the 5500 block of 8 th St. NW. When the victim emerged, Gomez brandished a knife to her face, forced the victim to the ground and raped her at knifepoint. The victim was able to kick Gomez and escape back inside of her home, where she called 911. The victim sustained a cut to her face and other injuries. Police responded immediately, canvassed for the suspect, and transported the victim to the hospital, where she obtained a sexual assault examination. On September 7, 2018, at approximately 11:48 p.m., in the 100 block of Gallatin Street, NE, Gomez raped a second victim at knifepoint, also a stranger to him. This time, Gomez followed a woman from the Ft. Totten Metro, and dragged the victim into a wooded area nearby, where he raped her at knifepoint. Gomez then fled the scene. The victim sustained injures but was able to flag down police. The victim was transported by ambulance to the hospital, where she received a sexual assault examination. On October 21, 2018, at approximately 6:35 a.m., in the 5400 block of 7 th Street, NW, Gomez sexually assaulted a third stranger victim. The victim had called for a share ride to take her to work. As she waited at the corner of 7 th and Longfellow Street, NW, the defendant approached her and began talking to her. The victim asked Gomez to leave her alone, but he continued trying to have a conversation with her. As she checked on the status of her rideshare vehicle, she started to walk away but Gomez followed her. Gomez grabbed the victim by the throat and dragged her under the porch of a nearby home. Gomez raped the victim under the porch, strangling the victim harder when she attempted to move. When the assault was over, Gomez fled on foot. The victim sustained injuries and immediately returned home and called police, who responded promptly. The victim was transported to the hospital, where she obtained a sexual assault examination. By December 2018, all three rape kits had been forensically tested, and the DNA profile of an unknown male had been obtained from the testing of all three kits and entered into the Combined DNA Index System (CODIS) maintained by the FBI. The cases matched each other but the perpetrator was still unknown. Detectives with MPD’s Sexual Assault Unit continued to develop and investigate forensic leads over the next several years in an exhaustive effort to identify the unknown assailant. Once identified, Gomez was arrested in Louisville, Kentucky on June 7, 2023 and transported by law enforcement to D.C. Subsequent DNA testing confirmed that Gomez was the rapist in all three cases. He is currently detained pending trial. This case was investigated by the Metropolitan Police Department, including the Sexual Assault Unit and the Cold Case Unit of the Sexual Assault Unit, and the U.S. Attorney’s Office for the District of Columbia. This case is being prosecuted by Assistant U.S. Attorneys Marco Crocetti and Amy Zubrensky. This case was brought as part of the U.S. Attorney’s Office’s Cold Case Sexual Assault Initiative. In February 2018, the U.S. Attorney created the Cold Case Sexual Assault Initiative, designed to work with law enforcement partners to reinvestigate, solve and bring charges in previously-unsolved cases of sexual assault of adults and juveniles. The Cold Case Initiative works with the Metropolitan Police Department, the Federal Bureau of Investigation, the United States Marshal’s Service, and state and local law enforcement agencies in the DMV area and nationwide. An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.


title: First of six-member drug trafficking ring bringing hundreds of pounds of narcotics to western Washington sentenced  to 8.5 years in prison

component: USAO - Washington, Western

body_text: Seattle –The first of six defendants tied to a significant drug trafficking ring that used recreational vehicles to transport massive quantities of methamphetamine, fentanyl pills, cocaine and heroin was sentenced today in U.S. District Court in Seattle to 102 months in prison, announced U.S. Attorney Tessa M. Gorman. Ernesto Casillas, 48, has been in custody since his arrest on September 9, 2022. Casillas was arrested at a Kent, Washington hotel with more than three kilograms of heroin, more than five kilograms of fentanyl pills and more than six kilograms of cocaine. There were two firearms in the room as well as more than $145,000 in cash. At today’s sentencing hearing U.S. District Judge Lauren King said, “Despite two sentences that were drug related you not only continued distributing drugs, but you did it on a massive scale. You did all of this for money without regard for the consequences.” “Mr. Casillas was a member of one of three inter-related drug trafficking rings taken off the street in the fall of 2022,” said U.S. Attorney Gorman. “Even when one of the RV’s connected to the group was pulled off the highway and seized by law enforcement, the traffickers didn’t stop. Mr. Casillas not only traveled for the group with drugs, he mailed the drugs to other communities across the country.” According to records filed in the case, Casillas was seen shipping packages of drug via FedEx to various addresses in Western Washington and elsewhere. In July and August 2022, he shipped five kilograms of cocaine to a Kent, Washington address, more than two kilograms of cocaine to a Columbus, Ohio, and approximately 20 pounds of methamphetamine to a Federal Way, Washington address. On September 9, 2022, Casillas was arrested along with Agustin Gutierrez Valencia, 33, of Kent, Washington Daniel Vazquez Arroyo, 33, of Kent, Washington Rosalio Reynoso Arellano, 52, of Los Angeles Benigno Hernandez aka Ivan Santos Arellano, 33, of Kent, Washington Jesus Toledo Pardo, 27, of SeaTac, Washington On April 3, 2024, Casillas pleaded guilty to conspiracy to distribute controlled substances and one count of being an illegal alien in possession of a firearm. In asking for a 102-month prison sentence, prosecutors wrote to the court. “There is no question that this is a serious criminal offense given the staggering amount of drugs being transported by this DTO. Between two seizures over the course of four days, agents were able to seize approximately 749 pounds of methamphetamine, 25 kilograms of fentanyl laced pills, over seventeen kilograms of cocaine, over seven kilograms of heroin, and five kilograms of fentanyl powder. Mr. Casillas and his co-conspirators were in charge of pumping massive amounts of dangerous and deadly substances into the community.” Prosecutors noted the harm fentanyl and methamphetamine are doing in the community. During 2024, in King County alone, there have already been 556 overdose deaths as of July 3, 2024, with 420 of those deaths involving fentanyl and 310 of them involving methamphetamine. The investigation was led by the FBI field offices in Seattle and Los Angeles, with assistance from the Drug Enforcement Administration, the Seattle Police Department, Customs and Border Protection (CBP), High Intensity Drug Trafficking Area (HIDTA), and Homeland Security Investigations, both the LA and Seattle offices. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. The case is being prosecuted by Assistant United States Attorney Casey Conzatti. The case is U.S. v. Casillas CR22-151LK.


title: Former city treasurer in Alaska sentenced to prison for wire fraud, money laundering, tax evasion

component: USAO - Alaska

body_text: ANCHORAGE, Alaska – An Alaska man was sentenced yesterday to two and half years in prison for embezzling more than $1 million from the City of Houston, Alaska, and from a Wasilla-based equipment company, and then evading taxes on the embezzled profits. According to court documents and statements made in court, from 2015 through 2018, Jess Adams, 67, was the Treasurer for the City of Houston, Alaska, where he was entrusted with bookkeeping responsibilities and had administrative access to the city’s accounting records and software. Adams used this access to direct electronic transfers from the city’s bank account to a personal account in his name, which he maintained to hide the embezzled funds. Adams created fictitious entries in the city’s accounting records to disguise these payments as legitimate business expenses. In October 2018, the City of Houston placed Adams on administrative leave, and he resigned his position in November 2018. A year later, Adams was employed as a bookkeeper by an equipment company, where he exercised control over the company’s accounting records and software. Using this access, Adams directed electronic transfers from the company’s bank account to other personal accounts that Adams opened in his name to hide the embezzled money. To conceal his activity, Adams used fictitious entries in the company’s accounting software to make it appear as though these funds were transferred for the payment of legitimate business expenses. Adams then laundered the money he embezzled from the equipment company by making several wire transfers from his personal bank account to other accounts, each at a value greater than $10,000. To further conceal his embezzlement and evade his taxes, Adams – a former seasonal tax return preparer for a national tax advisory company – filed false individual income tax returns for tax years 2016 through 2021. These returns did not disclose the additional income he embezzled. In addition to his prison sentence, U.S. District Court Judge Sharon Gleason for the District of Alaska ordered Adams to serve three years’ supervised release and to pay over $1.5 million in restitution to the City of Huston, a private company and the IRS. “Mr. Adams abused his positions of trust to greedily deceive and steal from victims and the U.S. government,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “His actions caused serious, life-long harm for some of the victims. My office is fully committed to working with our law enforcement partners to hold accountable those who prey on innocent victims and seek justice for anyone who is impacted by their deplorable actions.” “Stealing from both the government and from members of the community, Mr. Adams chose to cause great harm wherever he worked,” said Special Agent in Charge Adam Jobes, IRS Criminal Investigation (IRS-CI), Seattle Field Office. “Because financial crimes cause real damage to real people, there are consequences for committing these crimes, as Mr. Adams is learning today. IRS-CI is committed to putting a stop to criminals who prey on the well-being of our communities.” IRS CI Seattle Field Office investigated the case, with substantial assistance from the Alaska State Troopers. Trial Attorney Boris Bourget of the Tax Division, Assistant U.S. Attorney Tom Bradley and former Assistant U.S. Attorney George Tran for the District of Alaska prosecuted the case. ###


title: Spokane Man Sentenced to More Than 22 Years in Prison Following Seizure of Large Quantity of Fentanyl-Laced Pills in Spokane Valley, Washington

component: USAO - Washington, Eastern

body_text: Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Jordy Scott Deboer, age 32, of Spokane, Washington, was sentenced after pleading guilty to one count of Possession with Intent to Distribute 50 Grams or More of Actual (Pure) Methamphetamine and one count of Possession with Intent to Distribute 400 Grams or More of Fentanyl. United States District Judge Thomas O. Rice imposed a sentence of 272 months imprisonment to be followed by 5 years of supervised release. According to court documents and information presented at the sentencing hearing, on March 30, 2023, the Federal Bureau of Investigation’s Safe Streets Task Force executed several federal search warrants at the Motel 6 in Spokane Valley, Washington. The Task Force seized approximately 24.7 pounds of fentanyl-laced pills (approx. 83,000 pills), 2 pounds of methamphetamine, 1 pound of cocaine, as well as 2 firearms, and more than $13,000 in US Currency. Deboer and Matthew Sailors (a.k.a. Rabbit) were arrested. Prior to this incident, Deboer was previously arrested and federally indicted for trafficking in large quantities of methamphetamine and fentanyl pills from the Tri-Cities, Washington area to the Spokane, Washington area. After his indictment, Deboer was released from federal custody to attend inpatient drug treatment. A short time after Deboer’s release from custody to attend inpatient treatment, the Safe Streets Task Force received information he had re-engaged in drug trafficking activities, this time with Sailors. Deboer and Sailors were located at the Motel 6 in Spokane Valley engaging in drug trafficking activities, to include selling fentanyl pills. Law enforcement acted quickly, obtaining multiple federal search warrants. During the execution of the search warrants, Deboer was encountered in a hallway of the motel. When he saw law enforcement approaching him, Deboer took out a loaded firearm out of his waistband and threw it. Deboer also dropped a large black duffle bag that contained a large amount of controlled substances and tried to run away. He was quickly caught. On September 6, 2023, Sailors pleaded guilty to one count of Possession with Intent to Distribute 400 Grams or More of a Mixture or Substance Containing Fentanyl. On December 13, 2023, Sailors was sentenced to 120 months in federal prison, to be followed by 5 years of supervised release. “The significant amount of illicit drugs seized in this case demonstrates the need for law enforcement intervention to address the fentanyl crisis. I am grateful for the quick actions of the Safe Streets Task Force and the prosecutors in my office, who have worked to stop Mr. Deboer’s drug trafficking activities, including after he was released from custody after his initial indictment,” stated U.S. Attorney Waldref. “My office will continue to relentlessly remove deadly fentanyl and other narcotics from Eastern Washington communities and will hold accountable those who seek to profit from the illicit sale of illegal drugs.” “Mr. DeBoer’s previous time in custody did not deter him from engaging in the same type of activities which resulted in his prior incarceration.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Each Fentanyl pill that remains on the street has the potential to destroy the life, not only of the person taking it, but also of the people who loved and cared for them. The FBI and our partners will continue the work of removing these dangerous drugs off our streets.” This case was investigated by the Federal Bureau of Investigation’s Safe Streets Task Force, which is comprised of agents of the FBI and United States Border Patrol, as well as detectives for the Spokane County Sheriff’s Office, the Spokane Police Department, the Spokane Valley Police Department, and the Washington State Department of Corrections. The case was prosecuted by Assistant United States Attorney Caitlin Baunsgard.


title: Colorado Resident Sentenced To 10 Years In Prison For Assault With A Tomahawk Hatchet

component: USAO - Nevada

body_text: LAS VEGAS – A Colorado man was sentenced today to 10 years in prison for using a Tomahawk hatchet to attack and cause serious injury to a person at the Lake Mead National Recreation Area in 2018. According to court documents, on September 7, 2018, Christopher Dewey Booker, 48, repeatedly struck and bludgeoned a person using a Tomahawk hatchet. The victim sustained at least 22 injuries including fractures, lacerations, partial detachment of his left hand, and partial facial paralysis. These injuries resulted in protracted loss and impairment of the victim’s jaw and permanent impairment of the victim’s left hand. In May 2023, a federal grand jury indicted Booker; and in April 2024, Booker pleaded guilty to one count of assault resulting in serious bodily injury. In addition to imprisonment, United States District Judge James C. Mahan sentenced Booker to three years of supervised release. United States Attorney Jason M. Frierson for the District of Nevada made the announcement. The case was investigated by the National Park Service. Assistant United States Attorney Mina Chang prosecuted the case. ###


title: Spokane Bank Manager Sentenced to Federal Prison for  Stealing more than $345,000

body_text: Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Jessica Ann Marshall, age 28, of Spokane, Washington, was sentenced after pleading guilty to one count of Theft and Embezzlement by Bank Employee. United States District Judge Thomas O. Rice imposed a sentence of 24 months imprisonment to be followed by 5 years of supervised release, as well as restitution of $345,664.66 to be paid to the victim, the Bank of Idaho. Judge Rice ordered Ms. Marshall to be taken into custody immediately following the sentencing hearing. According to court documents and information presented at the sentencing hearing, between June 2023 and September 2023, Marshall was working as a Bank Manager at the Bank of Idaho’s downtown Spokane, Washington branch. Using her position as a manager, Marshall stole and embezzled at least $345,664 in cash from the bank vault, ATM, and her cash drawer. Marshall falsified documents to reconcile the cash and directed bank employees to sign falsified count sheets in order to hide her theft and embezzlement. Marshall also used her position as Bank Manger to make fraudulent deposit transactions into her spouse’s account. These fraudulent transactions reflected that money was being deposited into the account; however, no funds were deposited. When Bank of Idaho inquired about the deposits into her spouse’s account, Marshall attempted to conceal her conduct by using a co-worker’s email account to send an e-mail with false information. Marshall then accessed the computer of another co-worker to delete an email from Bank of Idaho inquiring about the deposits. “Ms. Marshall abused her position of extraordinary trust to enrich herself. When her conduct was discovered, Ms. Marshall attempted to obstruct the investigation into her actions,” stated U.S. Attorney Waldref. “I want to especially commend the FBI’s exceptional investigative work on this important case. Crimes like those committed by Ms. Marshall erode public confidence in financial institutions. By holding those accountable who commit theft, we restore trust and help keep Eastern Washington safe and strong.” This case was investigated by the Federal Bureau of Investigation, Spokane Resident Agency. Assistant United States Attorney Dan Fruchter prosecuted the case on behalf of the United States. Case No. 2:24-CR-00040-TOR


title: Shipyard Contractor Sentenced to Prison for Stealing Almost $600,000 Worth of Computer Equipment from the U.S. Navy

component: USAO - California, Southern

body_text: NEWS RELEASE SUMMARY – July 10, 2024 SAN DIEGO – Ernesto Saldivar, a civilian contractor at General Dynamics NASSCO who was employed as part of the shipyard’s modernization efforts, was sentenced in federal court today to 18 months in prison for stealing almost $600,000 worth of computer equipment from several U.S. Navy ships. According to court documents, from November 2022 to August 2023, Saldivar stole hundreds of military hard drives and laptops from declassified areas on ships undergoing maintenance. Saldivar then sold the stolen items on eBay. Two of the hard drives he stole contained classified military communications. The affected ships included the USS Pinckney, USS Curtis Wilbur and USS Spruance. The total value of the stolen computer equipment – including two laptops, two programmer units, four DC-DC converters, 18 power converters, and 302 hard drives – totaled $596,997.53. During the investigation of the missing hard drives, the U.S. Army Criminal Investigation Laboratory conducted a forensic analysis on fingerprints left inside the empty hard drive trays. These interior areas of the hard drive trays could only be touched after a hard drive was removed. The prints belonged to Saldivar. Naval Criminal Investigative Service agents also traced eBay listings of some of the stolen equipment to Saldivar. And, during a court-authorized search of Saldivar’s home on August 25, 2023, NCIS agents recovered 120 of the missing hard drives, a Panasonic Toughbook laptop from the USS Pinckney with software from Integrated Voice Communications System (IVCS), several DC-DC converters traceable to the USS Pinckney, a BPM Microsystems 1410 taken from the Curtis Wilbur, and a BPM Microsystems 1710 Universal Device Programmer matching the serial number of an inventoried loss, all stored haphazardly in a shed on Saldivar’s property. Saldivar admitted in his plea agreement that the total value of the stolen items was $596,997.53, almost all of which he was ordered to pay the United States government in restitution. The defendant was also ordered to pay back the United States Navy the $2,584.98 he incurred in payments from eBay sales of the stolen items. Prosecutors urged the court to impose a custodial sentence, noting that the three U.S. Navy destroyers that Saldivar stole from are critical to the national defense of the United States. At sentencing, U.S. District Judge John A. Houston repeatedly admonished Saldivar for committing a “grave breach of national security,” and noted the danger Saldivar’s criminal behavior posed to military personnel and national defense. The judge declined to impose defense’s recommended sentence of probation, stating that “if you steal from the United States Navy, you go to jail. You don’t get a walk.” “Stealing from the military doesn’t just hurt the taxpayer, it puts our national security at risk,” said U.S. Attorney Tara McGrath. “Our armed forces rely heavily on contract employees and service members must be able to trust the civilians standing by their side.” “Mr. Saldivar’s criminal actions to steal nearly $600,000 worth of computer equipment from multiple U.S. Navy ships betrayed the Navy's warfighters, posed a threat to our national security, and wasted valuable taxpayer money,” said Special Agent in Charge Nicholas Carter of the NCIS Southwest Field Office. “NCIS and our partners remain committed to protecting the Department of the Navy’s assets.” This case was prosecuted by Assistant U.S. Attorney Sarah Goldwasser and former Assistant U.S. Attorney Michelle Wasserman. DEFENDANT Case Number 24CR532-JAH Ernesto Saldivar Age: 30 San Diego, CA SUMMARY OF CHARGES Theft of Government Property – Title 18, U.S.C., Section 641 Maximum penalty: Ten years in prison and $250,000 fine INVESTIGATING AGENCY Naval Criminal Investigative Service If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Inspector General Hotline at 800-424-9098.


title: Wabash County Man Convicted of Firearm Offense

component: Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)

body_text: SOUTH BEND – Roy Skeens, 40 years old, of Wabash County, Indiana, was found guilty of being a convicted felon in possession of a firearm following a two-day jury trial presided over by United States District Court Judge Damon R. Leichty, announced United States Attorney Clifford D. Johnson. Skeens is scheduled for sentencing on October 17, 2024. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Wabash County Sheriff’s Department, the Kosciusko County SWAT Team, the South Bend Police Department, and the Indiana Department of Correction. The case was prosecuted by Assistant United States Attorneys Katelan McKenzie Doyle and Joseph P. Falvey. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Former religious services assistant charged for smuggling contraband into federal prison

component: USAO - Texas, Southern

body_text: HOUSTON – A 32-year-old Beeville resident has been taken into custody for smuggling contraband into a federal prison, announced U.S. Attorney Alamdar S. Hamdani. Ashley Priscilla Garza made her initial appearance in federal court in Corpus Christi. Garza is charged with receiving a bribe as a public official. According to the indictment, returned June 26, Garza was employed as a religious services assistant at Federal Correctional Institution Three Rivers. During her employment, she allegedly abused the access her position gave her to smuggle contraband to an inmate in 2022 and 2023 in exchange for payment. If convicted, Garza faces up to 15 years in federal prison and a possible $250,000 maximum fine. The Department of Justice-Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Joel Dunn and Michael Chu are prosecuting the case. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.


title: South Sioux City Man Sentenced to 63 Months’ for Possession of Child Pornography

body_text: United States Attorney Susan Lehr announced that Alexander W. Harlan, 34, of South Sioux City, Nebraska, was sentenced on July 9, 2024, in federal court for possession of child pornography. Chief United States District Judge Robert F. Rossiter, Jr., sentenced Harlan to 63 months’ imprisonment. There is no parole in the federal system. After Harlan’s release from prison, he will begin a 6-year term of supervised release. On February 16, 2022, Alexander Harlan self-admitted to St. Luke’s Hospital in Sioux City, Iowa. During an interview with a social worker, he admitted to possessing child pornography on his electronic devices. In an interview with an FBI agent, Harlan admitted to having child pornography on his devices and said he purchased child pornography from “overseas retailers” from his residence in South Sioux City, Nebraska. The FBI searched his apartment and seized 12 devices. The devices were submitted for forensic examination. The forensic examination yielded over 600 images of child pornography on 3 of the devices. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . This case was investigated by the Federal Bureau of Investigation.


title: Ardmore Resident Sentenced For Federal Firearm Charge

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Pete Allen Knight, Jr., age 40, of Ardmore, Oklahoma, was sentenced to 47 months in prison for one count of illegal possession of a firearm and ammunition. The charge arose from an investigation by the Oklahoma Bureau of Narcotics and the Federal Bureau of Investigation. On December 18, 2023, Knight pleaded guilty to one count of Felon in Possession of a Firearm and Ammunition. According to investigators, on July 17, 2023, Knight knowingly possessed a firearm and 45 rounds of ammunition after having been previously convicted of a crime punishable by more than one year imprisonment. The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Knight will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration. Assistant United States Attorney Jonathan E. Soverly represented the United States.


title: Stilwell Resident Sentenced For Assault With A Dangerous Weapon

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announces that Tassia Ann-Lorene Sellers-Turner, age 32, of Stilwell, Oklahoma, was sentenced to 42 months imprisonment for one count of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country. The charge arose from an investigation by the Stilwell Police Department, the Cherokee Nation Marshal Service, and the Federal Bureau of Investigation. On January 11, 2024, Sellers-Turner pleaded guilty to the charge. According to investigators, on September 9, 2023, officers responded to a 911 call of a stabbing at a Stilwell residence. Officers arrived to discover the victim bleeding from multiple life-threatening stab wounds sustained during an attack. Sellers-Turner fled the scene on foot but was apprehended and arrested by officers a short distance from the scene of the crime. The crime occurred in Adair County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma. The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Sellers-Turner will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration. Assistant United States Attorney T. Cameron McEwen represented the United States.


title: Pain Clinic Owners Sentenced For Role In Operating Pill Mills In Tennessee And Florida

component: Drug Enforcement Administration (DEA)

body_text: KNOXVILLE, Tenn. – On July 8, 2024, Clyde Christopher Tipton, 63, of Tazewell, Tennessee, was sentenced to 50 months in prison by the Honorable Thomas A. Varlan, United States District Judge for the United States District Court for the Eastern District of Tennessee at Knoxville. Tipton was the final defendant to be sentenced in a sprawling pill mill case that resulted in the federal criminal convictions of approximately 140 defendants. Following his incarceration, Tipton will be on supervised release for 3 years. As part of the plea agreement filed with the court, Tipton pleaded guilty to three counts in the superseding indictment: one count of conspiracy to launder money in violation of 18 § U.S.C. 1956(h), and two counts of conspiracy to defraud the United States and pay healthcare kickbacks in violation of 18 U.S.C. § 371. In February 2020, four co-defendants were found guilty at trial for their roles in operating or using pill mills to distribute opioids: Sylvia Hofstetter , 60, of Miami, Florida, Cynthia Clemons, 52, Courtney Newman, 48, and Holli Womack, 51, all of Knoxville. Three other co-defendants, Luigi “Jimmy” Palma, 61, of Miami, Florida, Luca Sartini, 64, also of Miami, Florida, and Benjamin Rodriguez, 49, of Delray, Florida, have previously pleaded guilty to various counts of the superseding indictment and been sentenced for their roles in operating pill mills in Tennessee and Florida. Tipton’s filed plea agreement, as well as the evidence presented at trial against Hofstetter, Clemons, Newman, and Womack, established that the pill mills owned and operated by Tipton and various co-defendants distributed over 11 million tablets of oxycodone, oxymorphone, and morphine that generated over $21 million in revenue, with a corresponding street value of $360 million. The conspiracy involved four separate clinics in or near Knoxville, Tennessee, each of which was a pill mill. A pill mill owned by Sartini, Palma, and Rodriguez, operating in Hollywood, Florida, gave rise to the Tennessee pill mills. The stipulations and evidence demonstrated that, as law enforcement shut down hundreds of pill mills in South Florida, the Florida co-codefendants planned the move to East Tennessee where a large percentage of these clinics’ opioid-addicted customers lived. The three tabbed Hofstetter to run the Tennessee pill mills. She and Tipton later opened competing pill mills in Knoxville. Palma and Sartini were sentenced on December 14, 2023, to 120 and 130 months in prison, respectively. Rodriguez was sentenced on January 22, 2024, to 65 months in prison. U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee and Special Agent in Charge Joseph E. Carrico of the Federal Bureau of Investigation (FBI) made the announcement. This sweeping prosecution is the result of an investigation by the United States Attorney’s Office for the Eastern District of Tennessee, the Violent Crime and Racketeering Section, U.S. Department of Justice, and the FBI High Intensity Drug Trafficking Area (HIDTA), comprised of investigators assigned to the task force by the Loudon County Sheriff’s Office, Knoxville Police Department, Blount County Sheriff’s Office, Roane County Sheriff’s Office, Harriman Police Department, and Clinton Police Department. Other agencies provided invaluable assistance, including the Rome Attaché of the Office of International Affairs, the U.S. Department of Justice, FBI’s liaison in Rome, the FBI’s Miami Field Office, the Hollywood, Florida, Police Department, the United States Department of Health and Human Services, the Tennessee Department of Health, and the Drug Enforcement Administration’s Knoxville Diversion Group. Deputy Criminal Chief Tracy L. Stone, U.S. Attorney’s Office for the Eastern District of Tennessee, and Deputy Chief Kelly Pearson, Violent Crime and Racketeering Section, U.S. Department of Justice, represent the United States in the prosecution of this case. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. ###


title: Final 2 members of a Washington family sentenced in monumental Indian Arts and Crafts Act case

body_text: JUNEAU, Alaska – The final two members of a Washington state family were sentenced yesterday for selling over $1 million of Philippine produced products as authentic Alaska Native produced artwork, violating the Indian Arts and Crafts Act. According to court documents, Glenda Tiglao Rodrigo, 46, was sentenced to up to six months’ home confinement and 240 hours of community service, and Christian Ryan Tiglao Rodrigo, 24, was sentenced to up to three months’ home confinement and 200 hours of community service. Both defendants are required to serve five years’ probation and write a letter of apology to be published in the Ketchikan Daily Newspaper. All three defendants are required to jointly pay over $54,000 in restitution. Cristobal Rodrigo, 59, Glenda’s husband and Christian’s father, was a co-conspirator in the case and was sentenced to two years in prison in August 2023 for his role in the scheme. Cristobal Rodrigos’ sentence was reduced to 18 months in June 2024, but remains the longest sentence a defendant has received for any Indian Arts and Crafts Act violation in the U.S., according to the Indian Arts and Crafts Board. Court documents explain that from April 2016 to December 2021, while residing in Washington state, the Rodrigo family owned and operated Alaska Stone Arts, LLC and Rail Creek, LLC in Ketchikan, Alaska. Alaska Stone Arts, LLC primarily sold stone carvings, and Rail Creek, LLC primarily sold wood totem poles. The carvings and totem poles were sourced from Rodrigo Creative Crafts, a company owned by Glenda Rodrigo and located in the Philippines. The Philippine business was created for the sole purpose of producing carvings featuring Alaska Native designs and motifs using Philippine labor. The carvings were shipped to the U.S. and then to the family’s stores in Ketchikan, where they were later sold as authentic Alaska Native art. Christian Rodrigo helped with the day-to-day operations and worked as a salesperson at both stores, while Glenda Rodrigo oversaw the business affairs for both stores. The Rodrigo’s also hired Alaska Natives at both Ketchikan stores to represent and sell Philippine produced artwork as their own authentic Alaska Native artwork. The workers told customers they were all related family working in the store and the art was all produced from locally sourced materials and made by Alaska Natives. Court documents outline over 20 separate instances where salespersons misrepresented themselves and the artwork to sell a Philippine produced product as authentic Alaska Native artwork. Prior to the conspiracy, Cristobal Rodrigo worked in Alaska at different stores and shops producing stone carvings that were sold in the tourist trade for over 20 years. Cristobal Rodrigo taught the styles of Alaska Native stone art and wood totem poles to the Philippine based company. In 2019 and for part of 2021, the family and their Alaska-based company employees sold over $1 million worth of Philippine made carvings presented as Alaska Native artwork. “The actions the Rodrigo’s family took to purposefully deceive customers and forge artwork is a cultural affront to Alaska Native artisans who pride themselves on producing these works of art, and negatively affects those who make a living practicing the craft,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The sentences in this monumental case are a testament to the federal government’s commitment to prosecuting Indian Arts and Crafts Act violations, and our office will continue to work with law enforcement partners to protect Alaska Native cultural heritage and unwitting customers, and hold perpetrators accountable who carry out these crimes.” “The Indian Arts and Crafts Board administers and enforces the Indian Arts and Crafts Act, a truth-in-marketing law,” said Indian Arts and Crafts Board Director Meridith Stanton. “The Act is intended to rid the Alaska Native and Indian arts and crafts marketplace of fakes and counterfeits, in order to protect the economic livelihoods and cultural heritage of Alaska Native and Indian artists and craftspeople and their Tribes and villages, as well as the buying public. Authentic Alaska Native art and craftwork is an important tool for passing down cultural traditions, traditional knowledge, and artistic skills from one generation to the next. Fakes and counterfeits, such as those marketed for huge sums of money by the Rodrigos, tear at the very fabric of Alaska Native culture, Native livelihoods, and Native communities. Today’s sentencing should send a strong message to those who prey upon authentic Alaska Native artists and vulnerable consumers that this destructive conduct will not be tolerated, and Act violators will be held accountable.” “The Rodrigos sold imported products as Alaska Native made in their Ketchikan, Alaska store,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “This deceptive business practice cheated customers and undermined the economic livelihood of Alaska Native artists. The U.S. Fish and Wildlife Service has a dedicated team of special agents that work on violations of the Indian Arts and Crafts Act. Today’s sentence was the result of the strong collaboration between our special agents, the Indian Arts and Crafts Board, and the U.S. Attorney’s Office.” The Department of Interior – U.S. Fish and Wildlife Service and Office of Law Enforcement, with assistance from the Indian Arts and Crafts Board, U.S. Customs and Border Protections, and U.S. Department of Agriculture, investigated the case. Assistant U.S. Attorney Jack Schmidt prosecuted the case. If you suspect potential Indian Arts and Crafts Act violations are being committed, a complaint may be submitted through the Indian Arts and Crafts Board’s online complaint form, www.doi.gov/iacb/should-i-report-potential-violation , by emailing iacb@ios.doi.gov , or by calling 888-278-3253. ###


title: Justice Department Leads Efforts Among Federal, International, and Private Sector Partners to Disrupt Covert Russian Government-Operated Social Media Bot Farm

component: Office of the Attorney General

body_text: Note : View the affidavit for search of 968 X accounts here and affidavit for domains seizure here . The Justice Department today announced the seizure of two domain names and the search of 968 social media accounts used by Russian actors to create an AI-enhanced social media bot farm that spread disinformation in the United States and abroad. The social media bot farm used elements of AI to create fictitious social media profiles — often purporting to belong to individuals in the United States — which the operators then used to promote messages in support of Russian government objectives, according to affidavits unsealed today. In conjunction with the domain seizures and search warrant announced today, the FBI and the Cyber National Mission Force (CNMF), in partnership with Canadian Centre for Cyber Security (CCCS), the Netherlands General Intelligence and Security Service (AIVD), Netherlands Military Intelligence and Security Service (MIVD), and Netherlands Police released a joint cybersecurity advisory detailing the technology behind the social media bot farm, including details regarding how the bot farm’s creators leveraged their bespoke AI system in furtherance of the scheme. The advisory will allow social media platforms and researchers to identify and prevent the Russian government’s further use of the technology. In addition, X Corp. (formerly, Twitter) voluntarily suspended the remaining bot accounts identified in the court documents for terms of service violations. “With these actions, the Justice Department has disrupted a Russian-government backed, AI-enabled propaganda campaign to use a bot farm to spread disinformation in the United States and abroad,” said Attorney General Merrick B. Garland. “As the Russian government continues to wage its brutal war in Ukraine and threatens democracies around the world, the Justice Department will continue to deploy all of our legal authorities to counter Russian aggression and protect the American people.” “Today’s action demonstrates that the Justice Department and our partners will not tolerate Russian government actors and their agents deploying AI to sow disinformation and fuel division among Americans,” said Deputy Attorney General Lisa Monaco. “As malign actors accelerate their criminal misuse of AI, the Justice Department will respond and we will prioritize disruptive actions with our international partners and the private sector. We will not hesitate to shut down bot farms, seize illegally obtained internet domains, and take the fight to our adversaries.” “Today’s actions represent a first in disrupting a Russian-sponsored Generative AI-enhanced social media bot farm,” said FBI Director Christopher Wray. “Russia intended to use this bot farm to disseminate AI-generated foreign disinformation, scaling their work with the assistance of AI to undermine our partners in Ukraine and influence geopolitical narratives favorable to the Russian government. The FBI is committed to working with our partners and deploying joint, sequenced operations to strategically disrupt our most dangerous adversaries and their use of cutting-edge technology for nefarious purposes.” “We support all civic engagement, civil dialogue, and a robust exchange of ideas,” said U.S. Attorney Gary Restaino for the District of Arizona. “But those ideas should be generated by Americans, for Americans. The disruption announced today protects us from those who use unlawful means to seek to mislead our citizens and our communities.” “The disruption announced today is the result of a combined response with our international partners to a serious and unique threat,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “Multiple U.S. and foreign governmental components worked closely and efficiently to address the threat and develop and execute a mitigation strategy. Through vigorous enforcement efforts and collaborative international partnerships, the Justice Department works tirelessly to disrupt criminal cyber activity.” Overview According to court documents, a bot farm is an enhanced software package which allows for the creation of false personas on social media platforms. Bot farms are enhanced by integrating components which contain artificial intelligence, such as image production or text generation. As described in the affidavits filed in support of the warrants, development of the social media bot farm was organized by an individual identified in Russia (Individual A). In early 2022, Individual A worked as the deputy editor-in-chief at RT, a state-run Russian news organization based in Moscow. Since at least 2022, RT leadership sought the development of alternative means for distributing information beyond RT’s standard television news broadcasts. In response, Individual A led the development of software that was able to create and to operate a social media bot farm. As planned, the social media bot farm would create fictitious online personas for social media accounts, through which RT, or any operator of the bot farm, could distribute information on a wide-scale basis. The development was executed by Individual B and others, who hid their identities and location (Russia) while beginning to purchase infrastructure for the social media bot farm in April 2022. In early 2023, with the approval and financial support of the Presidential Administration of Russia (aka the Kremlin), a Russian FSB officer (FSB Officer 1) created and led a private intelligence organization (P.I.O.), as explained in the affidavits. The P.I.O.’s membership was comprised of, among others, employees at RT, including Individual A. The true purpose of the P.I.O. was to advance the mission of the FSB and the Russian government, including by spreading disinformation through the social media accounts created by the bot farm. According to the affidavits, FSB Officer 1, Individual A, and other members of the PIO had access to the social media bot farm. The following are examples of Russian-government narratives that the bot farm posted on X in October and November 2023: A purported U.S. constituent replied to a candidate for federal office’s social media posts regarding the conflict in Ukraine with a video of President Putin justifying Russia’s actions in Ukraine; A purported resident of Minneapolis, Minnesota, posted a video of President Putin discussing his belief that certain geographic areas of Poland, Ukraine, and Lithuania were “gifts” to those countries from the Russian forces that liberated them from Nazi control during World War II; A purported U.S. resident of a city identified only as “Gresham,” posted a video claiming that the number of foreign fighters embedded with Ukrainian forces was significantly lower than public estimates; The same purported individual posted a video of President Putin claiming that the war in Ukraine is not a territorial conflict or a matter of geopolitical balance, but rather the “principles on which the New World Order will be based.” To register the fictitious social media accounts, the social media bot farm relied on private email servers, which in turn relied on the two domain names seized by the FBI. An individual who controls an internet domain can create email accounts using the domain. For example, an individual controlling the domain name www.example.com can create email accounts using @example.com (e.g., EmailAddress@example.com). Here, the actors obtained and controlled the domain names “mlrtr.com” and “otanmail.com” from a U.S.-based provider. They then used those domains to create the email servers that ultimately allowed them to create fictitious social media accounts using the bot farm software. The FSB’s use of U.S.-based domain names, which the software used to register the bots, violates the International Emergency Economic Powers Act. In addition, the accompanying payments for that infrastructure violate federal money laundering laws. The Justice Department commends members of the private sector who coordinated with law enforcement efforts on this disruption, including X for its voluntary efforts to suspend the identified bot accounts from its platform. Prior to the government’s action, X identified and suspended a significant number of the bot accounts. The Justice Department’s investigation is ongoing. The National Security Division’s National Security Cyber Section, U.S. Attorney’s Office for the District of Arizona, and U.S. Attorney’s Office for the Northern District of Illinois are prosecuting the case, with valuable assistance from the National Security Division’s Counterintelligence and Export Control Section.


title: Four of Six Foreign Nationals Charged in Multi-State ATM and Retail Skimming Conspiracy Scheduled to Appear Before a U.S. Magistrate Judge in Rhode Island

component: USAO - Rhode Island

body_text: PROVIDENCE, RI – Four of six foreign nationals, all of whom are illegally present in the United States, charged in federal court for their alleged roles in a conspiracy to install “skimming” devices on bank Automated Teller Machines (ATMs) and at retail store checkout point-of-sale units in at least six states, including Rhode Island and Massachusetts, and using credit, debit, and benefit card information gleaned from the skimming devices to create new cards that were then used to fraudulently withdraw cash from victims’ bank accounts and/or to make retail purchases, are scheduled to appear before a U.S. Magistrate Judge in Rhode Island on Tuesday, announced United States Attorney Zachary A. Cunha. Charging documents allege that members of the conspiracy placed skimming devices locally on ATMs at banks in Bristol and Westerly, RI, and at retail store checkout terminals in Johnston, Warwick, and Coventry, RI, as well as in Avon, Raynham, Seekonk, and Walpole, MA. Skimming devices allow fraudsters to read and capture account information and PIN numbers when customers swipe or insert their credit, debit, and EBT cards to complete a purchase on terminals where the devices have been attached. The information obtained from the skimming devices is then used to create counterfeit cards that can be used to fraudulently obtain cash from victims’ bank accounts, or to make purchases. It is alleged that members of the conspiracy used the account information skimmed from unsuspecting victims’ cards to withdraw substantial amounts of cash from bank accounts and to purchase goods at various retailers. It is alleged that members of the conspiracy withdrew more than $300,000 from unsuspecting victims’ bank accounts locally and made an as yet unknown number of purchases at retail outlets. “The scale, scope, and brazen nature of these defendants’ scheme to steal the financial account information of unsuspecting consumers and use it to help themselves to funds and property, as we have alleged in federal court, is staggering,” remarked U.S. Attorney Cunha. “I commend the superb work of Homeland Security Investigations, as well as our local law enforcement partners, for their diligent and effective work to disrupt this ring of thieves, and ensure that those responsible face a reckoning in federal court.” “The complaint alleges these six individuals are members of an organization who defrauded thousands of residents of Rhode Island and beyond of their hard-earned money. The ATM and point of sale skimming equipment they used worked quickly and efficiently to steal credit card information, allowing them to clone and illegally access credit cards, bank accounts, and other financial accounts of unsuspecting victims,” said Homeland Security Investigations New England Special Agent in Charge Michael J. Krol. “HSI is a leader in illicit finance investigations and is committed to working with our partners in the public and private sector to protect the integrity of our financial systems. Armando Ion Codreanu, 23, of Placentia, CA, a citizen of Ireland, is scheduled to make his initial appearance on charges of conspiracy to commit access device fraud, conspiracy to commit bank fraud, and aggravated identity theft. Isabela Ignat Codreanu, 23, of Anaheim and Placentia, CA, a citizen of Romania, Robby Vicson Codreanu, 20, Placentia, CA, a citizen of Great Britian, and Mila Ciuciu, 20, of Placentia, CA, a citizen of Romania, are each charged with conspiracy to commit access device fraud. A fifth defendant, Nicolas Longin Codreanu, 21, of Placentia, CA, a citizen of Romania and Ireland, charged with conspiracy to commit access device fraud, conspiracy to commit bank fraud, and aggravated identity theft, is in the custody of the U.S. Marshals Service and is being transported to Rhode Island. He will appear before a U.S. Magistrate Judge on a date not yet determined. An arrest warrant has been issued for a sixth defendant, Ionut Zamfir, 37, of Los Angeles, CA, a citizen of Romania. Zamfir is charged with conspiracy to commit access device fraud, conspiracy to commit bank fraud, and aggravated identity theft. The alleged conspiracy first came to light when the Bristol Police Department began an investigation into the origin of skimming devices discovered on ATMs at a local bank branch. As an example of the breadth of criminal conduct in this matter as detailed in court documents: to date, skimming devices have been recovered from a single major retailer at 22 separate locations in Rhode Island, Massachusetts, Virginia, Maryland, New Jersey, and New York. It is alleged that security camera images from those locations depict one or more members of the conspiracy charged in federal court in Rhode Island tampering with the checkout devices. According to charging documents, in October 2023, the Bristol Police Department received a report from a local bank that a skimming device had been discovered on a drive-through ATM at a local bank. The bank provided law enforcement with surveillance footage and still photographs that are alleged to clearly show two males placing and removing a skimming device from the ATM. Further investigation by Homeland Security Investigations determined that at least one of the individuals was allegedly also visible in security camera images installing skimming devices at retail locations in Warwick, Johnston, and Coventry, RI, and in Seekonk, Raynham, Walpole, and Avon, MA. in September and December 2023. Additionally, in December 2023, Homeland Security Investigations learned of skimming devices that had been placed on ATMs at two bank branch offices in Westerly, RI. Security images and footage of the individuals who were likely responsible for the placement and removal of the devices, and for withdrawing cash from compromised bank accounts, allegedly match images of individuals responsible for skimming at other locations around the region. A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty. The case is being prosecuted by Assistant United States Attorney Ronald R. Gendron The matter was investigated by Homeland Security Investigations and the Bristol Police Department, with the assistance of the Warwick Police Department, Coventry Police Department, Westerly Police Department, Johnston Police Department, Seekonk Police Department, United States Secret Service, and Homeland Security Investigations agents in Lafayette, LA, New York, NY, and Los Angeles, CA. ### criminal_complaint_affidavit.pdf


title: Major Raleigh Heroin Trafficker Who Intimidated Witnesses Sentenced to 40 Years in Federal Prison

component: USAO - North Carolina, Eastern

body_text: Raleigh, N.C. – Ahmad Rashad McClain, a/k/a “Wop,” a longtime resident of Raleigh, was sentenced to 480 months in prison for trafficking heroin after attempting to intimidate witnesses. On June 8, 2022, Ahmad Rashad McClain pled guilty to two counts of drug trafficking. “Tampering with witnesses and attempted intimidation is a sure-fire way to extend your stay in federal prison,” said U.S. Attorney Michael Easley. “Heroin traffickers like McClain drive addiction in our city and will do anything to dodge accountability. We are turbocharging our partnership with the Raleigh Police Department to get these dangerous narcotics – and those who supply them – off the streets.” According to court documents and other information presented in court, McClain, age 47, was determined by Raleigh Police Department (RPD) in late 2021 to be a major distributor of heroin in the Raleigh area. This was determined by physical and electronic surveillance, the use of confidential informants, and statements from witnesses. On June 8, 2022, a traffic stop was made on a vehicle driven by McClain, who was later transported to his residence where a search warrant was executed. McClain was found to be in possession of heroin mixed with protonitazene and marijuana, various drug paraphernalia, and over $15,000 in cash. As part of the investigation, witnesses provided RPD with information demonstrating that McClain was accountable for distributing over 24,000 grams of heroin over a two-year period. The Government argued for and received an enhanced sentence because McClain was found to be intimidating witnesses before sentencing. In five calls recorded between March 1 and March 29, McClain directed an associate to contact two confidential informants expected to provide evidence at his sentencing hearing. Although McClain and the associate used code, it was clear from the calls that McClain was directing him to approach, or have someone else approach, the witnesses to ensure they did not testify, discussing during the calls that the Government could not tie drug weight to him without their testimony. In one call, McClain directed the associate to “…shut them arcade games off.” In another, McClain said, “Yeah, without they testimony, they… can’t do s#!@…” The associate confirmed, “You ain’t got to worry about seeing them anyway…” In many of the calls, the associate confirmed that he or one of his “boys” had made contact with the witnesses. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Judge James C. Dever III. The Raleigh Police Department and the Federal Bureau of Investigation investigated the case and Assistant U.S. Attorney Casey L. Peaden prosecuted the case. This investigation was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-cr-00042-BO-RJ. ###


title: Ohio Man Sentenced to Prison After Pleading Guilty to Filing False Tax Returns and Wire Fraud

component: USAO - Ohio, Northern

body_text: TOLEDO – Jacques J. Eid, 56, of Perrysburg, Ohio, was sentenced to 30 months in prison by U.S. District Judge James G. Carr, after pleading guilty to filing false tax returns and wire fraud that defrauded educational and government entities. He was also fined $797,151.38 and ordered to pay restitution to the following: U.S. Department of Education, $14,760; Notre Dame Academy, $13,450; St. John’s Jesuit High School, $30,000; and the U.S. Department of Agriculture, $223,575.69. Eid pleaded guilty to the offenses in court on March 1, 2024, where he admitted to filing false tax returns with the IRS by underreporting taxable income of nearly $880,000 earned as owner of a convenience store, Madison Market, and a restaurant, Le Pam Pam, in Toledo from 2012-2018. Before the district court-imposed sentence, Eid repaid all taxes and penalties owed to the IRS resulting from his tax offenses. Eid also admitted falsifying his income on the U.S. Department of Education’s Free Application for Federal Student Aid, commonly known as FAFSA, for one of his children which was then used to determine aid packages at The University of Toledo and the University of Dayton. This resulted in fraudulently obtaining more than $11,000 in Pell Grants and $3,000 in Federal Supplemental Opportunity grants for college. Eid also falsified his income when seeking financial assistance for his children at two Toledo-area private schools, St. John’s Jesuit High School and Notre Dame Academy, ultimately receiving more than $40,000 collectively. His children would not have been entitled to receive financial aid if accurate income, assets, and net worth had been reported on applications. “Eid lied on his tax returns to avoid paying the taxes he owed and to further another lie about his children needing financial aid,” said U.S. Attorney Rebecca Lutzko for the Northern District of Ohio. “Falsifying financial need takes away from students who genuinely need the assistance for their education, and the defendant shamelessly scammed the system so that his own family could benefit at the expense of others. Federal law enforcement agencies pay attention when persons lie about their finances, and we are pleased that the district court has held Eid accountable for his disgraceful conduct.” Additionally, Eid admitted submitting a false application for his convenience store to become an authorized retailer for the U.S. Department of Agriculture’s SNAP Food Stamp Program. The application falsely stated that his spouse was the sole owner of the convenience store and that there were no other owners, even though Eid was the true owner of the business. He attempted to hide his ownership of the store so that it could accept food stamps. Eid was disqualified as a program retailer due to his prior conviction for seven counts of illegal use of food stamps or WIC program benefits in 2004. From 2008 to 2021 he operated Madison Market under the false pretense that he was not the owner. As a result of that misrepresentation, the store received more than $1 million in SNAP benefits which resulted in at least $220,000 in unlawful profits to the store. This case was prosecuted by Assistant U.S. Attorney Gene Crawford for the Northern District of Ohio. The case was investigated by the Internal Revenue Service–Criminal Investigations, Department of Agriculture Office of Inspector General, and the Department of Education Office of Inspector General.


title: Warwick Man Admits to Travel with Intent to Engage in Illicit Sexual Conduct

body_text: PROVIDENCE, RI – A Warwick man admitted to a federal judge today that he traveled to a local hotel via a commercial rideshare provider with the intent of having illicit sex with a person he thought to be 13 years old, announced United States Attorney Zachary A. Cunha. Zachary Q. Baker pleaded guilty to a charge of travel with intent to engage in illicit sexual conduct. He is scheduled to be sentenced on October 3, 2024. The defendant’s sentence will be determined by a federal district court judge after consideration of the U.S. Sentencing Guidelines and other statutory factors. In pleading guilty, Baker admitted that, on March 10, 2023, he responded to an online advertisement for “escorts” that contained images of what appeared to be two young females being offered for a “short visit” and a “little fun.” Baker engaged in a lengthy series of text messages with a person he believed was offering a 13-year-old and an 11-year-old for sex for a fee. After several hours of text messaging, Baker rode to a local hotel via a rideshare where he met with the person he believed was arranging for a sexual encounter with one or both of the girls. The person he was communicating with and with whom he met was, in fact, a Homeland Security Investigations agent. Baker was arrested after acknowledging to an undercover agent that he was the person who engaged in the conversations with the agent and that he wanted to have sex with the 13-year-old girl for a fee. The case is being prosecuted by Assistant United States Attorney Paul F. Daly, Jr. The matter was investigated by Homeland Security Investigations. ###


title: Two Former Missouri Police Officers Indicted for Federal Civil Rights Violations

component: Civil Rights Division

body_text: Two former Northwoods, Missouri, police officers were indicted last week for violating a man’s civil rights in 2023. One officer turned himself in yesterday, and the other turned himself in today. Samuel Davis and Michael Hill were each indicted in relation to a July 4, 2023, encounter with a man, identified in the indictment as “C.G.,” after they were called to a Walgreens in Northwoods. Each were indicted on one count of conspiracy to intimidate C.G. in the free exercise and enjoyment of his right to be free from unreasonable seizure and deprivation of rights under color of law. Davis was also indicted on one count of engaging in misleading conduct with the intent to hinder, delay and prevent the communication of information relating to the possible commission of a federal offense and one count of altering records in a federal investigation. Hill was also indicted on one count of lying to the FBI. According to the indictment, Hill, who was Davis’ supervisor, told Davis to take C.G. to Kinloch, Missouri. Davis then took C.G. to a field in Kinloch, where he struck the handcuffed man with his police baton. To cover up the incident, Davis told a dispatcher that C.G. was gone before Davis arrived at the Walgreens. Davis also allegedly turned off his body camera. The indictment also alleges Hill lied to FBI agents investigating the incident when he falsely stated that C.G. asked to go to Kinloch because he “had people” there. If convicted, Davis and Hill each face a maximum penalty of life in prison for the charges of conspiracy to violate civil rights and deprivation of rights under color of law. Davis also faces a maximum penalty of 20 years in prison for witness tampering and a maximum penalty of 20 years in prison for destruction of records. Hill faces a maximum penalty of five years in prison for lying to the FBI. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Saylor A. Fleming for the Eastern District of Missouri and Acting Special Agent in Charge Christopher Crocker of the FBI St. Louis Field Office made the announcement. The FBI St. Louis Field Office and St. Louis County Police Department investigated the case. Assistant U.S. Attorney Christine Krug for the Eastern District of Missouri and Trial Attorney Taylor Payne of the Civil Rights Division’s Criminal Section are prosecuting the case. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: U.S. Attorney, Albuquerque FBI Charge Third Individual Connected to Violent Day-Long Crime Spree in Gallup

body_text: ALBUQUERQUE – A Little Water man was charged by criminal complaint following a violent crime spree on the Navajo Nation, which involved a series of shootings and murder. Dewayne George , 22, an enrolled member of the Navajo Nation, appeared before a federal judge today and will remain on conditions of release pending trial, which has not been scheduled. According to the criminal complaint, on April 24, 2024, a family traveling south on U.S. Highway 491 reported to law enforcement that they had been followed, rear-ended, and shot at by someone sitting in the front passenger seat of a white SUV. Navajo Nation Police Department officers in the area were on the lookout for an SUV matching the description when they observed the vehicle driving southbound on U.S. Highway 491. Officers pursued the vehicle, which attempted to evade them before crashing. The officers took all three individuals in the vehicle into custody, later determined to be George , Rydell Happy, 30, and Brittania Navaho, 28. Further investigation revealed that earlier that day, George , Happy, and Navaho had been involved in a separate shooting incident in Gallup, New Mexico. Additionally, they were implicated in the murder of an individual identified as John Doe. Navaho was charged by indictment with straw purchase of the firearm used to murder John Doe and will remain in custody pending trial. If convicted, Navaho faces 25 years in prison. Happy was charged by criminal complaint with second degree murder and will remain in custody pending trial. If convicted of the current charges, Happy faces life years in prison. If convicted of the current charges, George faces up to 15 years in prison. The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from Navajo Nation Police Department, the Navajo Nation Department of Criminal Investigations and the McKinley County Sheriff’s Office. Assistant United States Attorney R. Eliot Neal is prosecuting the case. This case is being prosecuted as part of the Department of Justice’s Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which aims to aid in the prevention and response to missing or murdered Indigenous people through the resolution of MMIP cases and communication, coordination, and collaboration with federal, Tribal, state, and local partners. The Department views this work as a priority for its law enforcement components. Through the MMIP Regional Outreach Program, a broad spectrum of stakeholders work together to identify MMIP cases and issues in Tribal communities and develop comprehensive solutions to address them. This prosecution upholds the Department’s mission to the unwavering pursuit of justice on behalf of Indigenous victims and their families. View the Criminal Complaint A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. # # #


title: Headstone Salesman Charged with Defrauding Hundreds of Customers in Pennsylvania and New Jersey

component: USAO - Pennsylvania, Eastern

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Gregory J. Stefan, Jr., 54, of Upper Merion, Pennsylvania, was arrested and charged by indictment with seven counts of wire fraud, arising from fraudulent business practices he employed in the operation and management of headstone sales companies. The indictment alleges that between January 2018 and September 2023, Stefan—through his businesses 1843 LLC and Colonial Memorials—defrauded hundreds of grieving customers by entering into contracts to provide custom headstone and engraving services for their deceased loved ones that he knew he would not deliver on the promised timeline, if at all. Stefan demanded large up-front payments from his customers (often 100% of the purchase price) but routinely failed to fulfill their orders by the projected delivery date. When customers reached out to request updates on the status of their overdue orders, Stefan either ignored them or employed lulling tactics and assured them that their orders would be delivered shortly without taking any steps to follow through on those assurances. According to the indictment, Stefan failed to deliver, or provide refunds for, orders placed by almost 500 customers who had paid Stefan in excess of $1.5 million. The defendant made an initial appearance in federal court on these charges before U.S. Magistrate Judge Jose R. Arteaga this afternoon. If convicted, the defendant faces a maximum possible sentence of 140 years’ imprisonment. The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Jessica Rice. An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.


title: Former Postal Carrier Convicted of Mail Theft and Fraud

component: USAO - Alabama, Middle

body_text: Montgomery, Alabama – Today, United States Attorney Jonathan S. Ross announced that a federal jury convicted 44-year-old James Glover, a former postal carrier and resident of Montgomery, Alabama, on one count of postal theft by an employee and three counts of mail fraud. Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service Office of Inspector General and Inspector in Charge Scott Fix of the Houston Division for the U.S. Postal Inspection Service joined United States Attorney Ross in making the announcement. According to court records and evidence presented during Glover’s trial, he was involved in a fraudulent mail theft and bank fraud scheme involving multiple individuals. The jury heard testimony that, in September and October of 2022, while doing his work as a mail carrier, Glover stole checks and documents containing financial information from the mail. The stolen checks were altered or used to create fraudulent checks and then deposited into bank accounts by Glover and others. Previously, 24-year-old Keldric Ortez Jones, also from Montgomery, Alabama, was convicted of conspiracy to commit bank fraud for his role in the scheme. Jones received a 46-month sentence on March 11, 2024. There is no parole in the federal system. “The U.S. mail system is a vital part of our daily lives,” stated United States Attorney Ross. “Mail carriers are entrusted with access to enormous amounts of sensitive information. Abuse of that trust must have consequences. This prosecution is a result of our commitment, along with the commitment of our law enforcement partners, to protect the millions of letters and packages processed by the United States Postal Service each day.” “The vast majority of U.S. Postal Service employees are honest, hardworking individuals who would never violate the public trust in this manner,” said Special Agent in Charge Jonathan Ulrich of the U.S. Postal Service Office of Inspector General. “But for those who do, our special agents, along with our law enforcement partners, will aggressively investigate these federal crimes to protect the sanctity of the U.S. Mail. This conviction is a testament to the dedication of the investigative and legal teams and should send a strong message to any employee who thinks of conspiring with others to commit check fraud.” “It is very disappointing when any of our U.S. Postal Service employees abuse their position of trust to facilitate illegal activity,” said Inspector in Charge Scott Fix of the Houston Division for the U.S. Postal Inspection Service. “James Glover is not representative of the honesty and integrity of postal employees serving our nation today. Glover’s conviction demonstrates that the USPIS remains resolute in our mission to bring to justice those who fraudulently use the nation’s mail system in the furtherance of their deceptive schemes.” Following his June 27, 2024, conviction, Glover faces a sentence of up to 20 years in federal prison. A sentencing hearing for Glover is scheduled for September 30, 2024. At that hearing, a federal district court judge will determine Glover’s sentence after considering the United States Sentencing Guidelines and other statutory factors. The United States Postal Service Office of Inspector General, the United States Postal Inspection Service, and the Millbrook Police Department investigated the case, which Assistant United States Attorneys J. Patrick Lamb and Tara Ratz are prosecuting.


title: Terre Haute Sex Offender Sentenced to 10 Years in Federal Prison for Possessing Images of the Sexual Abuse of Babies and Toddlers

body_text: TERRE HAUTE- Joshua Lee Schatz, 33, of Terre Haute, has been sentenced to 10 years in federal prison, followed by 15 years of supervised release, after pleading guilty to possession of child sexual abuse material. According to court documents, on February 3, 2023, Indiana State Police Troopers received a tip that Joshua Lee Schatz had sent anime and computer-generated images of child sexual abuse material to another individual through text messages. The obscene images were extremely graphic, and some depicted toddlers being raped and sexually abused by adult men. On March 10, 2023, investigators executed a search warrant and seized Schatz’ phone and electronic devices from his home in Terre Haute. Investigators discovered hundreds of child sexual abuse images and videos on his devices, including images and videos depicting the rape and sexual abuse of babies, toddlers, and other prepubescent children—some of the victims appearing to be babies under 6-months-old. Investigators also located text messages sent by Schatz in which he described sexual activity he wanted to perform on children known to him. At the time of his 2023 arrest, Joshua Schatz was a registered sex offender as a result of his 2016 conviction for sexually abusing a child under 14-years-old in Vigo County. “There is no greater responsibility for a society than to protect our children from harm—especially the youngest and most vulnerable, unable to speak for themselves,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Repeat offenders like this defendant demonstrate their unwillingness or inability to stop committing these crimes, and a serious term of imprisonment is needed to protect the public and hold the offender accountable. Together with our partners at the FBI, IMPD, and Indiana’s exemplary ICAC Task Force, we will continue to make our children safer by ensuring that these dangerous predators are in prison where they belong.” The FBI, Indiana State Police, and IMPD investigated this case. The sentence was imposed by U.S. District Judge James R. Sweeney. U.S. Attorney Myers thanked Assistant U.S. Attorney Samantha Spiro, who prosecuted this case. This investigation was conducted by the Indiana Internet Crimes Against Children (ICAC) Task Force, a multiagency task force led by the Indiana State Police that investigates and prosecutes persons who use the internet to sexually exploit or entice children. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse. Visit https://www.in.gov/isp/icactf/ to learn more about their efforts. This case was also brought as part of Project Safe Childhood , a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. ###