title: Annapolis Resident Indicted on Sexual Exploitation of a Minor Charges

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, Pa. - A resident of Annapolis, Maryland, has been indicted by a federal grand jury in Pittsburgh on charges related to the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today. The nine-count Indictment named George Luton, 49, as the sole defendant. According to the Indictment, on multiple occasions in March 2024, Luton attempted to and did use, persuade, induce, entice, and coerce a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct, and also attempted to do the same on another occasion. The Indictment further charges that, on April 6, 2024, Luton traveled in interstate commerce with a motivating purpose of engaging in illicit sexual conduct with another person. The law provides for a sentence of up to 30 years in prison, a fine of up to $250,000, or both. Under the federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Luton is detained pending trial. Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Kiskiminetas Township Police Department, and Southern Armstrong Regional Police Department conducted the investigation leading to the Indictment. This case was 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 the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.


title: United States Files Forfeiture Action Against $1.55 Million Aircraft Landing Gear

component: National Security Division (NSD)

body_text: The Justice Department today filed a forfeiture complaint against a set of aircraft landing gear for a Boeing 737-800 that was detained in September 2023 at Miami International Airport by U.S. Customs and Border Patrol. The gear was purchased for the benefit of a Kyrgyz Republic-based transhipper of dual-use items servicing the Russian Federation, in violation of U.S. economic sanctions. According to court documents, the landing gear had been sold in June 2023 by a Florida-based aircraft parts overhauler and reseller for $1.55 million to an intermediary in Istanbul, GQ Solution Elektronik Ekipman Limited Sirketi. Concurrent with today’s action, the State Department announced new sanctions against entities engaged in Russia’s technology sector, including GQ Solution Elektronik Ekipman Limited Sirketi in connection with the company’s supplying of electronic components to Russia-based companies. In July 2023, the Treasury Department’s Office of Foreign Assets Control (OFAC) designated LLC RM Design and Development (RMDD) as a Specially Designated National (SDN) for operating in the electronics sector of the Russian Federation economy. According to OFAC, RMDD was established in March 2022, less than one month following the Russian invasion of Ukraine. OFAC has described RMDD as a “prolific shipper of dual-use goods to Russia, including to firms that have supplied electronics to Russia-based defense companies.” As a result of RMDD’s designation as an SDN, all property and interests in property of RMDD that are in the United States are blocked. On July 25, 2023, five days after being designated as an SDN by OFAC, RMDD sent an email asking HML Aviation to “switch [the purchase] fully to our partners GQ Solution.” After the email, all mentions of RMDD were scrubbed from invoices for the landing gear. On Aug. 29, 2023, GQ Solution completed HML Aviation’s End Use/End User Certification form. Among the items included in the form are statements that GQ Solution “will not export or re-export U.S. products, technology or software… to any restricted country unless otherwise authorized by the United States Government.” On Sept. 1, 2023, U.S. Customs and Border Protection (CBP) alerted the shipper that it had detained the landing gear shipment at the airport in Miami. This forfeiture action is a product of the U.S. government’s coordinated effort to enforce U.S. sanctions and export controls against the Russian Federation following the invasion of Ukraine. The forfeiture complaint detailed here is merely an allegation. HSI Colorado Springs and the Commerce Department’s Bureau of Industry and Security are leading the larger investigation into Russian Federation attempts to avoid U.S. sanctions and export controls. Assistant U.S. Attorneys Conor Mulroe and Rick Blaylock Jr. for the District of Columbia and Trial Attorney Sean Heiden of the National Security Division’s Counterintelligence and Export Control Section are litigating the case. This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression. The burden to prove forfeitability in a forfeiture proceeding is upon the government.


title: Former HUD Property Manager Pleads Guilty to Embezzlement

component: USAO - Maine

body_text: PORTLAND, Maine: A Glenburn woman pleaded guilty in U.S. District Court in Portland to embezzling from an organization receiving federal funds and conspiring to alter money orders. According to court records, Kelly Ballinger , 57, was a former property manager for a Portland apartment complex with residences funded by the Department of Housing and Urban Development (HUD). From about December 2017 to June 2021, Ballinger stole rent payments made by HUD Housing Choice Voucher Program tenants. Ballinger would direct the tenants to pay their rent with a blank postal money order and then would place her name or that of fellow employee Kathleen Conway , 70, on the payee line, adding information such as “groceries” on the memo line to suggest the payments were reimbursements. In some instances, Ballinger would deflate the tenants’ income to as low as $0 so that HUD would pay a larger share of the rent to disguise shortfalls. Ballinger faces up to ten years imprisonment and a maximum fine of $250,000 on the embezzlement charge and up to five years in prison and a maximum fine of $250,000 on the alteration of a postal money order charge, followed by up to three years of supervised release. The Court may also order Ballinger to pay restitution to HUD. Kathleen Conway pleaded guilty to embezzlement on August 2, 2023 and is awaiting sentencing. The U.S. Department of Housing and Urban Development Office of Inspector General and U.S. Postal Inspection Service the investigated the case. “Ballinger used her position of trust to take advantage of elderly and disabled individuals by preying on their vulnerability for her own self-enrichment,” said Acting Special Agent-in-Charge William Woolard with the U.S. Department of Housing and Urban Development, Office of Inspector General. “HUD OIG will continue to work with its law enforcement partners to diligently pursue and hold accountable bad actors who willfully misuse Federal assets.” “The U.S. Postal Inspection Service commends the U.S. Department of Housing and Urban Development for their hard work on this investigation,” said Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division . “We will continue to conduct investigations and seek prosecution of those individuals who choose to partake in fraud schemes that take advantage of systems that are designed to support those in need.” ###


title: Extradited Nigerian National Convicted of Business Email Compromise Scheme

component: Criminal - Computer Crime and Intellectual Property Section

body_text: A federal jury in New Haven convicted a Nigerian national today for operating a business email compromise scheme out of multiple countries, including the United States. According to court documents and evidence presented at trial, Okechuckwu Valentine Osuji, 39, and his co-conspirators targeted specific individuals and businesses by masquerading as trustworthy entities in electronic communications to obtain money. They utilized unwitting and witting “money mules” to receive fraud proceeds in their bank accounts, and then transferred those funds to accounts under the control of Osuji and his co-conspirators or to convert the stolen proceeds to cash for further transfer. Over the course of the scheme’s years-long operation, numerous victims were tricked into transferring funds into bank accounts the victims believed were under the control of legitimate recipients of the funds as part of normal business operations, when in reality, the bank accounts were controlled by Osuji and his co-conspirators. The victims included a Connecticut-based financial company, a Colorado-based lending company, an Alaska-based nonprofit performing arts organization, a New York-based food and beverage company, and others. As a result of the scheme, losses and intended losses totaled over $6.3 million. “While it is often difficult to identify and bring to justice cybercriminals operating overseas, today’s verdict demonstrates the expertise of the FBI and Stamford Police in uncovering this criminal network, and the shared commitment of our counterparts in Malaysia to ensure that fraudsters are held accountable in a court of law,” said U.S. Attorney Vanessa Roberts Avery. “We will continue to work to root out those who engage in internet fraud schemes, no matter where in the world they operate, and achieve justice for victims of these crimes.” “Osuji led a network of scammers in Malaysia and elsewhere in a sophisticated business email compromise scheme to defraud victims of millions of dollars,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today’s conviction is another example of how the Department’s collaboration with international law enforcement partners enables us to bring cybercriminals to justice in the United States.” “The defendant perpetrated a complex international business email compromise scheme and laundered millions in stolen proceeds,” said Executive Assistant Director Timothy R. Langan Jr. of the FBI’s Criminal, Cyber, Response and Services Branch. “This conviction is the result of hard work and close collaboration between the FBI and our local and international partners. Together, we will work aggressively to bring to justice anyone who engages in fraud and theft against Americans, no matter where they are in the world.” “Today’s verdict provides a bit of closure to some victims of these often financially crippling crimes,” said Special Agent in Charge Robert Fuller of the FBI New Haven Division. “It also displays our international ability to bring criminal actors to justice despite the complexities of their crimes. We want to thank all of our law enforcement partners here and abroad, as well as the U.S. Attorney’s office, for their dedication to serving justice.” The jury convicted Osuji of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. He is scheduled to be sentenced on July 24 and faces a mandatory minimum of two years on the identity theft count and a maximum penalty of 60 years in prison on the wire fraud and conspiracy counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Osuji was arrested in Malaysia and extradited to the United States in 2022. His alleged co-conspirator, John Wamuigah, remains in Malaysia and is pending extradition proceedings. Another co-conspirator, Tolulope Bodunde, pleaded guilty on February 16, 2024, and is awaiting sentencing. As to Wamuigah, the charges in the indictment are only allegations and he is presumed innocent unless and until proven guilty beyond a reasonable doubt. The FBI New Haven Field Office and the Stamford Police Department investigated the case. The Justice Department’s Office of International Affairs, Royal Malaysia Police, and Malaysian Attorney General’s Chambers provided valuable assistance in securing the arrest and extradition of Osuji. Assistant U.S. Attorney Margaret M. Donovan of the District of Connecticut and Trial Attorney Lydia Lichlyter of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case, with the assistance of Assistant U.S. Attorney Patrick Doherty and Law Student Interns Christopher D’Urso and Eli Scher-Zagier. If you believe that you have been victimized by Valentine Osuji, John Wamuigah, or Tolulope Bodunde, please contact the FBI New Haven Field Office at 203-777-6311 and ask for FBI Task Force Officer Michael Stempien. Please note that defendants are believed to have used the following accounts in perpetuation of their crimes (partially redacted where necessary, to obscure the names of stolen identities): Ew---leeu------rrg@gmail.com Lui-fra----la@gmail.com shawncarta@gmail.com agoggiia@gmail.com ksniper100@gmail.com or kindsnipes@gmail.com To learn more about business email compromise scams, please visit www.fbi.gov/how-we-can-help-you/scams-and-safety/common-scams-and-crimes/business-email-compromise and www.ic3.gov/Media/Y2023/PSA230609 .


title: Clarkston Man Sentenced to Federal Prison for Attempting  to Meet with a Minor for Sex

component: USAO - Washington, Eastern

body_text: Yakima, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that David Elmo Curry, 38 of Clarkston, Washington, was sentenced on two counts of Attempted Enticement of a Minor. Curry was convicted of those crimes on December 6, 2023, following a jury trial. Chief United States District Judge Stanley A. Bastian imposed a sentence of 156 months in federal prison to be followed by 10 years of supervised release. According to court documents and information disclosed at trial and sentencing, Curry was arrested when he arrived at a house in Yakima, Washington after travelling from Kennewick, Washington in order to have sex with two minor girls. Earlier that day, Curry responded to an on-line ad by a woman purporting to be the mother of two daughters – ages 11 and 13. In text and email exchanges, the mother explained she was seeking a man to have sex with her minor children. The on-line ad was actually part of a sting operation conducted by the Washington State Patrol, assisted by the Yakima and Union Gap Police Departments and Homeland Security Investigations and the purported mother was an undercover officer. At the time of his arrest, Curry had condoms and flavored lubricant with him. Curry was then charged in Yakima County Superior Court with Attempted First Degree Attempted Rape of a Child and Second Degree Attempted Rape of a child. He later was released on bail on these state charges. Following Curry’s release on bail, a Homeland Security Investigations Task Force Officer, acting in an undercover capacity, responded to a separate on-line ad, which Curry placed while on release. The undercover officer represented that he was a thirteen-year-old girl and Curry engaged the officer in sexual talk, requested nude images, and made arrangements to meet with him in person over the course of dozens of email and text messages. At one point, Curry determined the purported child’s preferred candy and purchased flavored lubricant in a corresponding flavor for a planned meeting the next day, which never took place. Chief United States District Judge Stanley A. Bastian presided over the trial, which began on December 4, 2023. After 2 days of trial testimony, the jury returned guilty verdicts on all counts. “Even while on release for related crimes, Mr. Curry attempted to find a young child to victimize,” stated U.S. Attorney Waldref. “I am deeply grateful for the work of Homeland Security Investigations, our local partners, and the Internet Crimes Against Children Task Force, for effectively responding to technology-facilitated sexual exploitation and for protecting our children.” “Predators like Mr. Curry are motivated to target their victims through mouse clicks and keystrokes, and any sentence punishing his perverse actions is an important step in ensuring cyberspace is kept free of those that seek to exploit children,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI, through its investigative expertise and law enforcement partnerships, will continue to hunt down these predators to ensure every one of them faces the full weight of justice.” 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 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 https://www.justice.gov/psc. This case was investigated by Homeland Security Investigations with the assistance of the Washington State Patrol, the Yakima Police Department and the Southeast Regional ICAC Task Force, consisting of the Richland and Kennewick Police Departments. This case was prosecuted by Michael Murphy, Assistant United States Attorney for the Eastern District of Washington.


title: Former VA Psychologist Sentenced to Prison for Submitting False Medical Documents, Health Care Fraud

component: USAO - Illinois, Southern

body_text: BENTON, Ill. – A district judge sentenced a Herrin woman, formerly employed in southern Illinois as a psychologist with the Department of Veterans Affairs, to 10 months imprisonment after she admitted to submitting false medical documents, obstructing justice and committing Medicare fraud. Theresa A. Kelly, 57, pleaded guilty in October 2023 to one count of concealing a material fact by trick, scheme or device; three counts of making or using a false writing or document; one count of obstruction of justice and one count of health care fraud. Kelly’s conduct involved a multi-faceted scheme that impacted her employment at the VA, fraudulent billing to Medicare, and the obstruction of a federal civil lawsuit in the Southern District of Illinois. “As a psychologist for the VA, the defendant was employed to provide important services to veterans, but instead she used her position to submit fraudulent medical documents with the intention of earning otherwise unauthorized leave and reasonable accommodations,” said U.S. Attorney Rachelle Aud Crowe. “Government employees acting to defraud their agencies will be investigated and prosecuted to the fullest extent of the law, and I commend the agencies for their work in bringing this offender to justice.” Kelly, a licensed clinical psychologist, was employed by the Marion VA Medical Center. According to court documents, between November 2016 and August 2020, Kelly submitted fraudulent medical documentation in the name of real and fake medical providers as part of the approval process for reasonable accommodations and medical leave, including FMLA leave. Kelly admitted to submitting false medical documents with forged signatures of two legitimate medical providers, one of whom is local to the southern Illinois area. “This sentence sends a clear message that VA employees will be held accountable if involved in fraudulent activities,” said Special Agent in Charge Gregory Billingsley with the Department of Veterans Affairs Office of Inspector General’s Central Field Office. “The VA OIG thanks the U.S. Attorney’s Office and our law enforcement partners for their efforts in this joint investigation.” In addition to her submission of fraudulent medical documents, Kelly engaged in a scheme to defraud Medicare and obtain payment for psychiatric services that she did not provide to residents of a Southern Illinois nursing home between May 2016 and January 2018. In addition to her full-time job at the VA, Kelly owned a company by the name of TS Onsite Mental Health through which she claimed to provide psychotherapy sessions to patients at Shawnee Christian Nursing Center in Herrin, Illinois. Kelly billed Medicare for more than 400 claims—worth more than $54,000—for services that she did not provide. Kelly billed for at least some of the services on days she was on approved medical leave from the VA. In addition her term of imprisonment, Kelly was ordered to repay $35,795.94 in restitution to the Centers for Medicare & Medicaid Services as repayment for her fraudulent claims. “HHS-OIG is committed to ensuring that citizens’ tax dollars are protected from fraud and abuse by investigating providers who undermine our federal health care programs and the well-being of patients by submitting fraudulent claims,” said Mario M. Pinto, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We will continue to work with our law enforcement partners to investigate conduct that compromises the integrity of federal health care programs.” Kelly also admitted to obstructing justice in a civil proceeding in federal court by submitting fraudulent medical documentation to her attorney—the contents of which were used to seek a continuance of the judicial proceeding. In April 2020, Kelly filed a discrimination complaint in U.S. District Court against the Secretary of Veterans Affairs. Rather than proceeding with the case, Kelly submitted a letter impersonating a real physician who had practiced in Anna, IL but had never treated Kelly. Kelly’s lawsuit was ultimately dismissed by the judge. The investigation was conducted by investigators with the VA-OIG and HHS-OIG. Assistant U.S. Attorney Zoe J. Gross prosecuted the case.


title: Scheme to Transfer Money to Iran Results in Guilty Pleas

component: Federal Bureau of Investigation (FBI)

body_text: Muzzamil Zaidi, 40, and Asim Mujtaba Naqvi, 40, both of Houston, Texas, pleaded guilty today for their roles in an illicit scheme to collect tens of thousands of dollars from the United States to Iran, including in the name of Ayatollah Ali Husseini Khamenei, the Supreme Leader of the Islamic Republic of Iran, and arrange for the money to be exported to Iran without the required licenses from the Offices of Foreign Assets Control. According to court documents, in December 2018, Zaidi received permission to collect khums – a religious tax on wealth – on behalf of several Imams. Between December 2018 and December 2019, Zaidi and Naqvi collected payments of this tax, as well as donations purportedly to help victims of the ongoing civil war in Yemen, from individuals in the United States. Zaidi and Naqvi arranged for the funds to be exported from the United States to Iran and to be received by the Office of the Supreme Leader of Iran. Zaidi and Naqvi enlisted friends, family members, and other associates to carry the cash out of the United States, in amounts less than $10,000 in order to avoid law enforcement scrutiny. One transfer of dollars to Iran involved a group of 25 travelers going on a religious pilgrimage in Iraq, and the subsequent transport of U.S. dollars hand-carried by those travelers to Iran. Both Zaidi and Naqvi were arrested in Houston on Aug. 18, 2020, as a result of this scheme. The transfer of money was illegal because the United States has imposed economic sanctions on Iran since 1995. Every year since 1984, the U.S. State Department has named Iran as a state sponsor of terrorism. And on June 24, 2019, the President imposed additional sanctions on the Supreme Leader of Iran that prohibit the provision of funds to, or for the benefit of, the Supreme Leader of Iran. Zaidi and Naqvi both pleaded guilty to conspiracy and violations of the International Emergency Economic Powers Act (IEEPA) before U.S. District Judge Tanya S. Chutkan, who scheduled sentencing for Zaidi on Aug. 13 and for Naqvi on Oct. 1. The FBI Washington Field Office and the FBI Houston Counterterrorism team are investigating the case. FBI Field Offices in Dallas, Chicago, and Detroit provided valuable assistance. Assistant U.S. Attorneys Jolie Zimmerman, Erik Kenerson, and Maeghan Mikorski for the District of Columbia, and Trial Attorneys Adam Small and Derek Shugert of the National Security Division’s Counterintelligence and Export Control Section and Jennifer Levy of the Counterterrorism Section are prosecuting the case.


body_text: WASHINGTON – Muzzamil Zaidi, 40, and Asim Mujtaba Naqvi, 40, both of Houston, Texas, pleaded guilty today for their roles in an illicit scheme to collect tens of thousands of dollars from the United States to Iran, including in the name of Ayatollah Ali Husseini Khamenei, the Supreme Leader of the Islamic Republic of Iran, and arrange for the money to be exported to Iran without the required licenses from the Offices of Foreign Assets Control. The guilty pleas were announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General for National Security Matthew G. Olsen, FBI Special Agent in Charge Douglas A. Williams Jr. of the Houston Field Office, and FBI Assistant Director in Charge David Sundberg of the Washington Field Office. Zaidi and Naqvi both pleaded guilty to conspiracy and violations of the International Emergency Economic Powers Act (IEEPA) before U.S. District Judge Tanya S. Chutkan, who scheduled sentencing for Zaidi on August 13, 2024, and for Naqvi on October 1, 2024. According to court documents, in December 2018, Zaidi received permission to collect khums – a religious tax on wealth – on behalf of several Imams. Between December 2018 and December 2019, Zaidi and Naqvi collected payments of this tax, as well as donations purportedly to help victims of the ongoing civil war in Yemen, from individuals in the United States. “The defendants smuggled cash out of the United States for the purpose of illegally delivering it to Iran, a country that sponsors terrorism across the globe,” said U.S. Attorney Matthew M. Graves. “This Office and our law enforcement partners will find and prosecute those seeking to unlawfully fund this regime.” “For over 40 years, Iran has financed terror organizations that export fear, violence, and death across the globe,” said FBI Houston Special Agent in Charge Douglas Williams. “Zaidi and Naqvi financially supported Iran’s dispersion of terror through a system of subterfuge and deception. Thanks to the work of FBI counterterrorism agents, their system has been neutralized and Iran’s rabid campaign of state-sponsored terrorism has been impaired.” “The FBI remains steadfast in preventing U.S. currency from reaching the most prolific state sponsor of terrorism in the world,” Assistant Director in Charge Sundberg said. “Today's hearing should be a warning to others that the FBI is committed to finding those who willfully circumvent U.S. sanctions and bring them to justice.” Zaidi and Naqvi arranged for the funds to be exported from the United States to Iran and to be received by the Office of the Supreme Leader of Iran. Zaidi and Naqvi enlisted friends, family members, and other associates to carry the cash out of the United States, in amounts less than $10,000 in order to avoid law enforcement scrutiny. One transfer of dollars to Iran involved a group of 25 travelers going on a religious pilgrimage in Iraq, and the subsequent transport of U.S. dollars hand-carried by those travelers to Iran. Both Zaidi and Naqvi were arrested in Houston on August 18, 2020, as a result of this scheme. The transfer of money was illegal because the U.S. has imposed economic sanctions on Iran since 1995. Every year since 1984, the U.S. State Department has named Iran as a state sponsor of terrorism. And on June 24, 2019, the President imposed additional sanctions on the Supreme Leader of Iran that prohibits the provision of funds to, or for the benefit of, the Supreme Leader of Iran. This case was investigated by the FBI’s Washington Field Office and the FBI Houston Counterterrorism investigative team. The FBI’s offices in Dallas, Chicago, and Detroit all provided valuable assistance. The case is being prosecuted by Assistant U.S. Attorneys Jolie Zimmerman, Erik Kenerson, and Maeghan Mikorski of the National Security Section of the U.S. Attorney’s Office for the District of Columbia, along with Trial Attorneys Adam Small and Derek Shugert of the Counterintelligence and Export Control Section and Jennifer Levy of the Counterterrorism Section of the National Security Division of the Department of Justice.


title: Phoenix Man Sentenced to 8.5 Years in Prison for Involvement in Murder-for-Hire Plot

component: USAO - Arizona

body_text: PHOENIX, Ariz. – Ali Joseph, 44, of Phoenix, was sentenced on Monday by United States District Judge Diane J. Humetewa to 102 months in prison, followed by three years supervised release. Joseph pleaded guilty on December 12, 2023, to one count of Use of Interstate Commerce Facilities in the Commission of Murder for Hire. Between May and August 2022, while Joseph was involved in contentious child-custody proceedings with the victim, Joseph had multiple in-person and electronic communications with an individual who was a Confidential Human Source (CHS) for the FBI. In these communications with the CHS, Joseph revealed that he was unwilling to share custody of his children with the victim because he believed her to be an “apostate” who would not raise his children on “the right path,” and he expressed his desire to have her murdered. Thereafter, the CHS introduced Joseph to an undercover FBI employee who Joseph believed was a hitman. Joseph offered to pay the “hitman” $3,000 to disguise himself as a homeless person who would attempt to rob and violently attack the victim as she left her workplace. Joseph provided the CHS with a $1,000 down payment along with a piece of paper containing photographs of the victim and her identifying information. Joseph told the CHS that he wanted the “hitman” to stab the victim in the neck to ensure she would not survive the attack, and asked the CHS to notify him when the murder was completed by sending him a funny photo or short video. The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, handled the prosecution. CASE NUMBER: CR-22-01070-PHX-DJH RELEASE NUMBER: 2024-056_Joseph # # # For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/ Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.


title: Butte man sentenced to prison in large-scale meth, fentanyl ring

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

body_text: MISSOULA — A Butte man who admitted to distributing multiple pounds of methamphetamine and tens of thousands of fentanyl pills as part of large-scale trafficking ring was sentenced today to three years and six months in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said. The defendant, Trevor Allen Handy, 27, pleaded guilty in September 2023 to conspiracy to distribute and possess with intent to distribute controlled substances. U.S. District Judge Dana L. Christensen presided. “Individuals like Mr. Handy continue to terrorize communities like Butte by transporting and mailing staggering quantities of illegal drugs and poisoning Montana citizens. I’m grateful to our federal, state, and local law enforcement partners for their cooperation in this investigation and hope this sentence serves as a warning to people who think they can profit from this reprehensible conduct,” U.S. Attorney Laslovich said. In court documents, the government alleged that in June 2022, law enforcement in Utah stopped a vehicle that contained approximately four pounds of meth, one pound of heroin and 6,000 pills containing fentanyl. The driver told law enforcement he was transporting the drugs to Butte for distribution by a drug trafficking organization headed by co-defendant Juan Felipe Vidrio Fuentes, aka “Esco.” Law enforcement determined that the co-conspirators would transport meth and fentanyl by driving the drugs from California to Montana and by mailing the pills. Law enforcement arrested Handy in January 2023 after the drug trafficking organization sent him a package of approximately 3,000 fentanyl pills for distribution in Butte. Handy admitted that he had received multiple packages of drugs sent to his residence on behalf of the drug organization for distribution by its members. Handy also admitted he had traveled by vehicle to California to pick up multiple pounds of meth and thousands of fentanyl pills and driven them back to Butte for distribution for the drug organization. After Handy’s arrest, law enforcement searched two Butte addresses occupied by members of the drug organization and located multiple pounds of meth, more than 200 grams of fentanyl, approximately $17,500 in cash and seven firearms. Investigators seized a total of approximately 18 pounds of meth, which is the equivalent of about 65,232 doses, and approximately 4.85 pounds of fentanyl. The total amount of meth and fentanyl that Handy flooded into Butte is much higher, based on his admissions to previously distributing multiple pounds and tens of thousands of fentanyl pills that were not seized. Co-defendants Fuentes, 36, of Anaheim, California; James Andrew Stringari, 51, of Whitehall; and Janet Dean White, 57, of Butte, were found guilty of conspiracy to distribute and possess with intent to distribute controlled substances and possession with intent to distribute controlled substances on April 25 in a federal jury trial and are awaiting sentencing. Four other co-defendants, Martin Topete Garcia, 32, his brother, Johnathan Topete, 28, both of Mira Loma, California; Anthony Wayne Johnson II, 51, of Santa Ana, California; and Agatha Noriz Carranza, 34, of Whitehall, pleaded guilty earlier to charges and are awaiting sentencing. Assistant U.S. Attorney Brian C. Lowney prosecuted the case. The Montana Division of Criminal Investigation, Southwest Montana Drug Task Force, Montana Highway Patrol, Jefferson County Sheriff’s Office, Missouri River Drug Task Force, U.S. Postal Inspection Service, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, Utah Highway Patrol and Utah State Bureau of Investigations conducted the investigation. The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. XXX


title: Sodinokibi/REvil Affiliate Sentenced for Role in $700M Ransomware Scheme

body_text: A Ukrainian national was sentenced today to 13 years and seven months in prison and ordered to pay over $16 million in restitution for his role in conducting more than 2,500 ransomware attacks and demanding over $700 million in ransom payments. “As this sentencing shows, the Justice Department is working with our international partners and using all tools at our disposal to identify cybercriminals, capture their illicit profits, and hold them accountable for their crimes,” said Attorney General Merrick B. Garland. “Deploying the REvil ransomware variant, the defendant reached out across the globe to demand hundreds of millions of dollars from U.S. victims,” said Deputy Attorney General Lisa Monaco. “But this case shows the Justice Department’s reach is also global—working with our international partners, we are bringing to justice those who target U.S. victims, and we are disrupting the broader cybercrime ecosystem.” “Today, the FBI’s close collaboration with our worldwide partners has again ensured that a cybercriminal who thought he was beyond our reach faces the consequences of his actions,” said FBI Director Christopher Wray. “We will continue to relentlessly pursue cyber criminals like Vasinksyi wherever they may hide, while we disrupt their criminal schemes, seize their money and infrastructure, and target their enablers and criminal associates to the fullest extent of the law.” According to court documents, Yaroslav Vasinskyi, also known as Rabotnik, 24, conducted thousands of ransomware attacks using the ransomware variant known as Sodinokibi/REvil. Ransomware is malicious software designed to encrypt data on victim computers, allowing bad actors the ability to demand a ransom payment in exchange for the decryption key. The co-conspirators demanded ransom payments in cryptocurrency and used cryptocurrency exchangers and mixing services to hide their ill-gotten gains. To drive their ransom demands higher, Sodinokibi/REvil co-conspirators also publicly exposed their victims’ data when victims would not pay ransom demands. “Yaroslav Vasinskyi and his co-conspirators hacked into thousands of computers around the world and encrypted them with ransomware,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Then they demanded over $700 million in ransom payments and threatened to publicly disclose victims’ data if they refused to pay. Although the conspirators attempted to cover their tracks by laundering the payments from victims, Vasinskyi could not hide from law enforcement. Vasinskyi’s sentence today should serve as a reminder to ransomware actors everywhere: we will track you down and bring you to justice.” “Using ransomware, malicious actors from around the globe can paralyze U.S. companies in a matter of minutes,” said U.S. Attorney Leigha Simonton for the Northern District of Texas. “But as cybercriminals work together to deploy these attacks, law enforcement throughout the United States stands ready to dismantle their criminal enterprises. The dedicated prosecutors from the Northern District of Texas and the skilled agents at the FBI Dallas Field Office proved once again today to ransomware actors everywhere: When you hit targets in the United States, the Justice Department and its partners will come after you.” Vasinskyi previously pleaded guilty in the Northern District of Texas to an 11-count indictment charging him with conspiracy to commit fraud and related activity in connection with computers, damage to protected computers, and conspiracy to commit money laundering. He was previously extradited to the United States from Poland. Relatedly, in 2023, the Department obtained the final forfeiture of millions of dollars’ worth of ransom payments obtained through two related civil forfeiture cases, which included 39.89138522 Bitcoin and $6.1 million in U.S. dollar funds traceable to alleged ransom payments received by other members of the conspiracy. The FBI investigated the case. Assistant U.S. Attorney Tiffany H. Eggers for the Northern District of Texas and Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case. Assistant U.S. Attorney Dimitri N. Rocha for the Northern District of Texas assisted with the related civil forfeiture cases. The Justice Department’s Office of International Affairs worked with Polish authorities to secure the extradition of Vasinskyi.


title: Hobbs Man Arrested for Illegal Sale of Automatic Weapon Conversion Devices and Silencer

body_text: ALBUQUERQUE – A Hobbs man was arrested for the illegal sale of automatic weapon conversion devices and a silencer after an undercover investigation by the Lea County Drug Task Force. The criminal complaint alleges that undercover agents from the Lea County Drug Task Force purchased two Glock switches and one silencer from Tevon Wayne Davis Cobbs , 22, in the parking lot of his workplace in Hobbs, New Mexico. During the transactions, Cobbs admitted to selling switches - devices that convert semi-automatic pistols into fully automatic "machineguns" - for the past 3-4 years. He offered to install the switches for the undercover agents and showed them videos of himself firing weapons with the illegal modifications. During the transaction, Cobbs also offered to sell the agents a suppressor, stating he did not want to wait the typical 9-month wait time for legal ownership. This was the second successful controlled purchase from Cobbs , following an initial sale of one switch on February 8, 2024. Cobbs claimed to have a steady supply of the illegal devices, which he obtained from an unknown source. The Lea County Drug Task Force is continuing its investigation into Cobbs ' illegal firearms trafficking operation. Possession of Glock switches and unregistered suppressors are serious federal crimes that carry lengthy prison sentences. U.S. Attorney Alexander M.M. Uballez, and Brendan Iber, Special Agent in Charge of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement today. The Bureau of Alcohol, Tobacco, Firearms, and Explosives is investigating this case with assistance from the Lea County Drug Task Force. Assistant United States Attorney Ry Ellison is prosecuting the case. One (1) Glock switch with no markings, disassembled into three pieces. 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: St. Louis County Man Sentenced to 84 Months in Prison for Selling Fentanyl

component: Drug Enforcement Administration (DEA)

body_text: ST. LOUIS – U.S. District Judge John A. Ross on Wednesday sentenced a man from St. Louis County, Missouri who sold drugs to a woman who later died to 84 months in prison. Donald Lawrence Bateman, 28, pleaded guilty in January to distribution of a controlled substance and possession with the intent to distribute a mixture or substance containing fentanyl. He admitted selling illegal drugs to a St. Louis woman who was found dead the next day. In a series of text messages, Bateman and the victim discussed the sale of $90 worth of drugs, and what Bateman had available, including reference to pills referred to by them as “30s.” The victim’s blood sample contained, among other things, fentanyl and ethanol. Seventeen blue pills labeled “M30” that contained fentanyl, 14 green pills and a firearm were later found in Bateman’s possession. Courtesy of the Drug Enforcement Administration. Bateman and his lawyers disputed that the pills were the cause of the victim’s death, but after witness testimony and evidence was presented Wednesday, Judge Ross said that Bateman’s sale of the drugs was central to her death. The Drug Enforcement Administration and the St. Louis Metropolitan Police Department investigated the case. Assistant U.S. Attorneys Cort VanOstran, James Delworth and Samantha Reitz prosecuted the case.


body_text: WASHINGTON - The Department of Justice today announced the filing of a forfeiture complaint against a set of aircraft landing gear for a Boeing 737-800 that was detained in September 2023 at Miami International Airport by U.S. Customs and Border Patrol. The gear was purchased for the benefit of a Kyrgyz Republic-based transhipper of dual-use items servicing the Russian Federation, in violation of U.S. economic sanctions. The pleas were announced by U.S. Attorney Matthew M. Graves, Assistant Attorney General for National Security Matthew G. Olsen Homeland Security Investigations (HSI) Special Agent in Charge Ryan L Spradlin of the Denver Field Office, and Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod with the Department of Commerce, Bureau of Industry and Security. According to court documents, the landing gear had been sold in June 2023 by a Florida-based aircraft parts overhauler and reseller for $1.55 million to an intermediary in Istanbul, Turkiye, GQ Solution Electronic Ekipman Limited. “This Office continues to use every tool it has to stop illegal transactions with Russian businesses,” said U.S. Attorney Graves. “Today’s complaint stops an attempted illegal transfer to the Russian Federations of parts for airplanes and seeks to permanently deprive both the Russian Federation and the company that tried to sell them of these goods.” Concurrent with today’s action, the State Department announced new sanctions against entities engaged in Russia’s technology sector, including GQ Solution Elektronik Limited in connection with the company’s supplying of electronic components to Russia-based companies. In July 2023, the U.S. Department of the Treasury, Office of Foreign Assets Control (OFAC) designated LLC RM Design and Development (RMDD) as a Specially Designated National (SDN) for operating in the electronics sector of the Russian Federation economy. According to OFAC, RMDD was established in March 2022, less than one month following the Russian invasion of Ukraine. OFAC has described RMDD as a “prolific shipper of dual-use goods to Russia, including to firms that have supplied electronics to Russia-based defense companies.” As a result of RMDD’s designation as an SDN, all property and interests in property of RMDD that are in the United States are blocked. On July 25, 2023, five days after being designated as an SDN by OFAC, RMDD sent an email asking HML Aviation to “switch [the purchase] fully to our partners GQ Solution.” After the email, all mentions of RMDD were scrubbed from invoices for the landing gear. On August 29, 2023, GQ Solution completed HML Aviation’s End Use/End User Certification form. Among the items included in the form are statements that GQ Solution “will not export or re-export U.S. products, technology or software… to any restricted country unless otherwise authorized by the United States Government.” On September 1, 2023, U.S. Customs and Border Protection (CBP) alerted the shipper that it had detained the landing gear shipment at the airport in Miami. This forfeiture action is a product of the U.S. government’s coordinated effort to enforce U.S. sanctions and export controls against the Russian Federation following the invasion of Ukraine. The forfeiture complaint detailed here is merely an allegation. The burden to prove forfeitability in a forfeiture proceeding is upon the government. The Homeland Security Investigations (HSI) Colorado Springs Field Office and the Department of Commerce, Bureau of Industry and Security are leading the larger investigation into Russian Federation attempts to avoid U.S. sanctions and export controls. This case is being litigated by Assistant U.S. Attorneys Conor Mulroe and Rick Blaylock Jr., with the U.S. Attorney’s Office for the District of Columbia, and Trial Attorney Sean Heiden of the National Security Division’s Counterintelligence and Export Control Section. This case was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.


title: Eagle River man charged with being a felon in possession of a firearm

component: USAO - Alaska

body_text: ANCHORAGE, Alaska – An Eagle River man was charged last week with being a felon in possession of a firearm. According to court documents, in October 2023, Kyle Reynolds, 27, allegedly possessed a firearm during a domestic violence assault. At the time of the alleged event, Reynolds had a prior felony conviction for assault and failing to stop at the direction of a peace officer resulting in serious injury. Reynolds is charged with 18 U.S.C. § 922(g)(1) in violation of being a felon in possession of firearms. If convicted, Reynolds faces a maximum penalty of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney S. Lane Tucker of the District of Alaska, Anchorage Police Department (APD) Chief Designee Bianca Cross and Alcohol, Tobacco, Firearms and Explosives (ATF) Seattle Field Division Special Agent in Charge Jonathan Blais made the announcement. APD and ATF Anchorage Field Office are investigating the case. If anyone has any information related to Reynolds’s possession of firearms, suppressors or other activities, please submit an online police report with APD at www.anchoragepolice.com/file-a-police-report or submit a tip to the ATF at www.atf.gov/atf-tips . Assistant U.S. Attorneys Adam Alexander and Christina Sherman are prosecuting the case. A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: Morgantown Man Charged with Theft of Federal Broadband Funding

component: USAO - West Virginia, Northern

body_text: CLARKSBURG, WEST VIRGINIA – The owner of Clearfiber, Inc., an internet service provider in Monongalia County, has been charged with money laundering. Timothy Chad Henson, 35, of Morgantown, West Virginia, allegedly defrauded the United States Department of Agriculture (USDA). According to court documents, the USDA’s Community Connect Program offered grants to eligible applicants providing broadband services to rural areas. On behalf of Clearfiber, Henson applied and was awarded $1.96 million to offer high-speed internet services in Monongalia and Marion Counties. Henson submitted false invoices to the USDA to receive more than $340,000. Henson then transferred $322,900 into another bank account for his personal use. Henson faces up to 10 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Henson is scheduled for an initial appearance on May 29 before U.S. Magistrate Judge Michael John Aloi. Assistant U.S. Attorney Sarah Wagner is prosecuting the case on behalf of the government. This case was investigated by the Internal Revenue Service-Criminal Investigations. An information is merely an allegation, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Readout of Justice Department’s Civil Rights Division’s Meeting with Jewish Community Stakeholders

component: Office of the Attorney General

body_text: Marking the first day of Jewish American Heritage Month, the Justice Department convened an interagency meeting with Jewish community stakeholders. Attorney General Merrick B. Garland spoke with those at the meeting and underscored the Department’s commitment to addressing antisemitic hate crimes. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division outlined the enforcement efforts across the Department and highlighted actions to prevent and combat hate crimes. Department leadership, including representatives from the Civil Rights Division, FBI, Community Relations Service, Office of Justice Programs, Office of Privacy and Civil Liberties, and Community Oriented Policing Service heard from attending organizations on antisemitic hate crimes and reporting, safety on campuses and in schools, the intersection of antisemitism and democracy and discrimination in employment. Representatives from other federal government agencies were also in attendance, including the Equal Employment Opportunity Commission, and the Departments of Education, Housing and Urban Development, Labor, and Homeland Security. This convening occurred alongside a precipitous increase in the volume and frequency of threats against Jewish communities across the country, and many Jewish communities expressing fear for their peace and safety. Combating hate crimes and incidents is among the Department’s top priorities. Today’s meeting represents the Department’s latest efforts to engage with organizations and stakeholders on issues affecting the Jewish community. In March, the Department hosted a community safety briefing for Jewish community stakeholders, during which the Department released resource documents designed to help the public better understand federal civil rights laws, including laws that prohibit violence and discrimination on the basis of religion and national origin , and protections afforded by Religious Land Use and Institutionalized Persons Act (RLIUPA) local land use decisions. The Department has also continued to prosecute antisemitic hate crimes, including recent cases involving a former Cornell University student who issued threats to kill or injure Jewish students on campus; a California man who firebombed a Planned Parenthood clinic in Southern California and had planned home invasions of Jewish homes in Los Angeles; a California rideshare driver charged with a federal hate crime for an assault on a passenger who he perceived to be Jewish or Israeli; and an Oregon man charged with hate crimes for defacing a synagogue in Eugene. If you believe that you or someone else experienced religious or national origin discrimination, report a civil rights violation online at civilrights.justice.gov . If you believe you are a victim or a witness of a hate crime, report it to the FBI by calling 1-800-CALL-FBI or submitting a tip at tips.fbi.gov . Learn more about the Department’s work on hate crimes here .


title: Pennsylvania Man Convicted For Kidnapping And Death Of Woman Whose Body Was Found In Nevada Desert

component: USAO - Nevada

body_text: LAS VEGAS – A federal jury convicted a Pennsylvania resident today for kidnapping a woman in Pennsylvania then driving her to Nevada and killing her in the desert. John Matthew Chapman, 44, was found guilty of one count of kidnapping resulting in death. United States District Judge James C. Mahan scheduled a sentencing hearing for August 2, 2024. Chapman faces the maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. According to court documents and evidence presented during the eight-day trial, on November 14, 2019, the Bethel Park Police Department in Pennsylvania conducted a welfare check on the victim at the request of a friend. During the welfare check, neighbors stated that they had not seen the victim in approximately two months, but they had observed a person whom they believed to be her boyfriend (Chapman) entering and leaving the victim’s residence. Inside the victim’s residence, officers found identification cards with Chapman’s name and photograph, the victim’s cellular telephone, multiple zip ties, and a roll of duct tape. On November 15, 2019, Bethel Park Police Department detectives arrested and interviewed Chapman. During the interview, Chapman admitted that in September 2019 he drove the victim from Bethel Park, Pennsylvania, to Las Vegas, Nevada. He further admitted that he misled the victim to believe the trip was a vacation and they would potentially purchase a residence in Las Vegas. Chapman, however, had planned to kill the victim before their departure to Nevada. Chapman told investigators that he drove the victim out to the desert in Lincoln County, Nevada. Under the pretext of a bondage photo shoot, Chapman bound the victim’s hands and feet with plastic zip ties and affixed her to a signpost. Then he applied duct tape to her mouth and nose and watched her die from asphyxiation. The joint investigation revealed that Chapman returned to Pennsylvania. He pretended to be the victim, including using the victim’s Facebook messenger account, and he continuously used the victim’s residence and money following her death. United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI Las Vegas Division made the announcement. The FBI Las Vegas Division, the Lincoln County Sheriff’s Office in Nevada, and the Bethel Park Police Department in Pennsylvania investigated the case. Assistant United States Attorneys Penelope Brady, Megan Rachow, and Steven Rose are prosecuting the case. ###


title: District Man Found Guilty of Gun and Drug Paraphernalia-Related Charges

component: USAO - District of Columbia

body_text: WASHINGTON - Demann Shelton, 31, of Washington, D.C., was found guilty today by a jury of charges related to a December 2019 incident in which he possessed an illegal firearm in NW Washington D.C., announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department. The Honorable Lynn Leibovitz scheduled sentencing for July 12, 2024. Shelton was found guilty following a jury trial in the Superior Court of the District of Columbia, of unlawful possession of a firearm, carrying a pistol without a license, possession of an unregistered firearm, unlawful possession of ammunition, and unlawful possession of drug paraphernalia. According to evidence presented during the trial, on December 18, 2019, Shelton and two other men were inside an illegally parked car, near 90 L Street NW, when Metropolitan Police Department (“MPD”) officers drove into the parking lot. Officers ordered Shelton, the sole backseat passenger, to get out of the car. During the ensuing search of the car, officers located a large black jacket on the backseat near where Shelton had been sitting moments earlier. Inside the jacket, officers found a loaded .40 caliber Glock 23 handgun, with an affixed laser light and an inserted extended magazine containing 15 rounds of ammunition, along with a digital scale with white powder residue, Shelton’s photo ID, a credit card with a picture of Shelton on it, and mail with Shelton’s name on it. Officers also located $2,443 in cash in Shelton’s pants pocket. Judge Leibovitz ordered that the defendant remain held pending sentencing. This case was investigated by the Metropolitan Police Department. It was prosecuted and tried by Assistant U.S. Attorneys Luke Albi and Leah Paisner of the General Crimes Section of the U.S. Attorney’s Office for the District of Columbia.


title: Repeat child sex predator sentenced to 60 years

component: USAO - Texas, Southern

body_text: GALVESTON, Texas – A 36-year-old Alvin resident has been ordered to federal prison for distribution, receipt and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani. Keenan Edward Howe pleaded guilty Oct. 24, 2022. U.S. District Judge Jeffrey Vincent Brown has now sentenced Howe to 300 months each for the distribution and receipt convictions in addition to 120 months for possession of child pornography, respectively. They will run consecutively for a total 720-month-term of imprisonment. In handing down the prison terms, the court noted the egregious nature of Howe’s conduct. He will serve the rest of his life on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Howe will also be ordered to register as a sex offender. In handing down the sentence, Judge Brown reiterated the need for Howe’s sentence to reflect the offensive nature of his conduct. In August 2022, authorities identified Howe through an undercover online investigation in which Howe communicated with someone he believed to be a father with access to minor children. Throughout the conversation, Howe expressed his desire to drug and violently sexually abuse the children. He also discussed purchasing the younger minor child for the purpose of sexually abusing her. Further communication revealed Howe also admitted to sexually abusing multiple minor victims. Law enforcement subsequently arrested Howe prior to a scheduled meeting with the “father.” Two months before the conversations, Howe was previously released from prison for offenses involving the sexual abuse of a minor. Howe will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The FBI conducted the investigation. Assistant U.S. Attorney Luis Batarse prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page . For more information about internet safety education, please visit the resources tab on that page .


title: Utica Man Sentenced for His Role in Large Fentanyl Conspiracy

component: USAO - New York, Northern

body_text: SYRACUSE, NEW YORK –Eric Ares, age 38, of Utica, New York, was sentenced today to serve 120 months in federal prison for conspiring to possess with intent to distribute fentanyl and to distribute fentanyl, and possession with the intent to distribute fentanyl, announced United States Attorney Carla Freedman, Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division and Thomas Fattorusso, Executive Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office. Ares was also ordered to serve a 5-year term of supervised release following his term of imprisonment and pay a $200 special assessment. The Court also imposed a $150,000 money judgment. As part of his guilty plea, Ares admitted that from May 2020 through October 2021, he, together with his co-conspirators in the Rodriguez drug trafficking organization, possessed with intent to distribute and distributed fentanyl in the Utica, New York area. Ares admitted to making numerous trips to the New York City area to purchase fentanyl, which he then drove back to the Utica area where he and others distributed it. Ares admitted that on September 20, 2021, he drove to the New York City area and received 3 kilograms of fentanyl for distribution. Law enforcement officers stopped the vehicle Ares was driving and recovered 3 kilograms of fentanyl hidden inside a speaker in the trunk. This case is being investigated by the United States Drug Enforcement Administration (DEA), the United States Internal Revenue Service-Criminal Investigations (IRS-CI), the New York State Police, the Oneida County Sheriff’s Office, the Oneida County District Attorney’s Office, the City of Utica Police Department, the City of Syracuse Police Department, the City of Rome Police Department, United States Homeland Security Investigations (HSI), United States Immigration and Customs Enforcement and Removal Operations (ICE), the Onondaga County Sheriff’s Office, the Onondaga County District Attorney’s Office, the New York Army National Guard Counter Drug Program, the Village of Yorkville Police Department, and the Village of Whitesboro Police Department, and is being prosecuted by Assistant U.S. Attorney Tamara Thomson.


title: Colorado Woman Sent to Federal Prison for  Possessing Meth & Firearms

component: USAO - Iowa, Northern

body_text: A woman who possessed a pound of methamphetamine and 150 pounds of marijuana was sentenced on May 1, 2024, to 8 years in federal prison. Amy Cruz age 37, from Denver, Colorado, received the prison term after an October 13, 2022, guilty plea to Possession with Intent to Distribute Methamphetamine. Evidence in the case showed that on April 27, 2022, Cruz and a co-defendant committed several offenses in Colorado before traveling cross country to deliver drugs to Minnesota. Locally, Cruz and a co-defendant stole a vehicle from a car dealership in Sioux City, Iowa, and led law enforcement on a high-speed pursuit with speeds exceeding 100mph. During the pursuit, Cruz and the co-defendant began discarding items from the stolen vehicle before switching to a second stolen vehicle. The pursuit ended when they crashed into an unoccupied car in Le Mars, Iowa. The two were transported to the hospital with varying degrees of injury. Several totes were found Cruz’s path, and some in the stolen vehicles, which contained stolen marijuana from a Colorado dispensary, approximately one pound of methamphetamine, three firearms, and numerous other items that had been reported stolen. Cruz was sentenced in Sioux City by United States District Court Judge Leonard T. Strand. Cruz was sentenced to 96 months’ imprisonment. She must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system. Cruz is being held in the United States Marshal’s custody until she can be transported to a federal prison. The case was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office. The case was prosecuted by Assistant United States Attorneys Patrick T. Greenwood and Kraig R. Hamit. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 22-4045. Follow us on Twitter @USAO_NDIA.


title: Alma Man Convicted for Providing False Statement to Federal Authorities

body_text: United States Attorney Susan Lehr announced that David Sikes, 69, of Alma, Nebraska, was sentenced on May 1, 2024, in federal court in Lincoln, Nebraska for providing a false statement. Senior United States District Judge John M. Gerrard sentenced Sikes to 36 months’ probation. There is no parole in the federal system. Sikes was additionally ordered to pay a $1,000 fine. In January of 2018, Jeffrey Sikes, son of David Sikes, was set to be sentenced in the United States District Court for wire fraud crimes. Jeffrey failed to appear at his sentencing and arrest warrants were issued. Following his failure to appear, David Sikes was contacted by federal law enforcement on multiple occasions in attempts to determine Jeffrey’s whereabouts. David indicated to officers he did not know where Jeffrey was located. However, David knew where Jeffrey was living as a fugitive with his family. David even visited Jeffrey where he was hiding in Alabama on at least one occasion before Jeffrey was arrested for further federal crimes. The investigation also revealed that David supported Jeffrey financially while he was living as a fugitive in Alabama. This case was investigated by the Federal Bureau of Investigation.


title: Dallas man sentenced to over 16 years in federal prison for distributing fentanyl  that killed Frisco man

component: USAO - Texas, Eastern

body_text: PLANO, Texas – A Dallas man who sold fentanyl-laced pills has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today. Benjamin Linder, also known as Benzo, 23, pleaded guilty to conspiracy to distribute fentanyl resulting in death and was sentenced to 200 months in federal prison on April 30, 2024 by U.S. District Judge Robert W. Schroeder III. According to information presented in court, on Dec. 24, 2021, law enforcement responded to a Frisco residence regarding an unresponsive person. Upon arrival officers were informed by the father of the victim that he had found his 20-year-old son unresponsive on the living room floor. Paramedics arrived but were unable to revive the victim and he was pronounced deceased at the residence. Investigators were able to access the victim’s cellular phone and discovered the phone contained a contact labeled as “Benzo,” later identified as the defendant, Benjamin Linder. Investigators learned that on Dec. 23, 2021, the victim sent a message to Linder requesting to purchase pills and “lean,” which is a promethazine-codeine syrup. A series of text messages between the victim and Linder revealed they arranged to meet in a parking lot on the campus of the University of Texas at Dallas, where the victim purchased fentanyl-laced pills and “lean” from Linder. Investigators were able to determine that the victim had been communicating with Linder since at least November 10, 2021. Investigators were able to access Linder’s text messages as well, which showed Linder sent an unidentified person messages stating, “So that kid that died” and “I jus found out I sold him the drugs.” Toxicology reports identified the victim’s cause of death as toxic effects of fentanyl, flubromazepam, trazodone, hydroxyzine, and promethazine. Linder was indicted by a federal grand jury on Jan. 12, 2023, and charged with federal drug trafficking violations. This case was investigated by the Frisco Police Department Special Investigations Unit and the Collin County Medical Examiner’s Office and prosecuted by Assistant U.S. Attorney Matthew T. Johnson. ###


title: Broken Bow Resident Sentenced For Murder

body_text: MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Devon Leroy Battiest, age 43, of Broken Bow, Oklahoma, was sentenced to 168 months in prison for one count of Murder in Indian Country – Second Degree. The charge arose from investigations by the Broken Bow Police Department, the Choctaw Nation Lighthorse Tribal Police, and the Federal Bureau of Investigation. On January 17, 2024, Battiest pleaded guilty to the charge. According to investigators, on May 6, 2023, Battiest entered a Broken Bow residence armed with a firearm, then shot and killed a guest at the residence. The crimes occurred in McCurtain County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma. The Honorable Keith Starrett, U.S. District Judge in the United States District Court for the Southern District of Mississippi, sitting by assignment, presided over the hearing in Muskogee. Battiest will remain in 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 Richard J. Lorenz represented the United States.


title: Recidivist Sex Offender Sentenced for Possessing Deepfake Child Sexual Abuse Material

component: USAO - Pennsylvania, Western

body_text: A Pennsylvania man was sentenced yesterday to 14 years and seven months in prison for possessing deepfake child sexual abuse material (CSAM) depicting numerous child celebrities. According to court documents and evidence presented at trial, on two separate occasions, James Smelko, 57, of Pittsburgh, possessed and accessed pictures that digitally superimposed the faces of child actors onto nude bodies and bodies engaged in sex acts. Smelko possessed the pictures at his home in Pittsburgh. After law enforcement discovered the pictures during a search of Smelko’s computer, he was charged for possessing CSAM. While pending trial, Smelko was found to have violated his conditions of pretrial release by again accessing such images after incriminating web searches and images were detected by court-mandated monitoring software installed on his cell phone. In November 2023, a federal jury in Pittsburgh convicted Smelko of one count of possessing child pornography and one count of accessing with the intent to view child pornography. Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Eric G. Olshan for the Western District of Pennsylvania; and Special Agent in Charge Kevin Rojek of the FBI Pittsburgh Field Office made the announcement. The FBI Pittsburgh Field Office investigated the case. Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael Mitchell for the Western District of Pennsylvania prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc .


title: Sixteen People Charged with Conspiracy to Defraud Hundreds of Elderly Americans of Millions of Dollars

component: USAO - New Jersey

body_text: NEWARK, N.J. – Sixteen individuals were charged in connection with a sprawling “grandparent scam” to defraud hundreds of elderly Americans out of millions of dollars, U.S. Attorney Philip R. Sellinger announced today. Eleven men from the Dominican Republic are charged in a 19-count indictment with mail and wire fraud conspiracy; wire fraud; mail fraud; conspiracy to commit money laundering; and money laundering: *Juan Rafael Parra Arias, aka “Yofre,” 40 Nefy Vladimir Parra Arias, aka “Keko,” 39 Nelson Rafael Gonzalez Acevedo, aka “Nelson Tech,” 35 *Rafael Ambiorix Rodriguez Guzman, aka “Max Morgan,” 59 Miguel Angel Fortuna Solano, aka “Botija,” aka “Boti,” 41 *Felix Samuel Reynoso Ventura, aka “Fili,” aka “Filly The Kid,” 36 Carlos Javier Estevez, 45 Louis Junior Serrano Rodriguez, aka “Junior,” 27 Miguel Angel Vasquez, aka “Miguel Disla,” 24 Jovanni Antonio Rosario Garcia, aka “Porky,” aka “Chop,” 45 *Jose Ismael Dilone Rodriguez, 34 * denotes in custody An additional five defendants were charged by complaint with wire fraud conspiracy as part of the same scheme: Endy Jose Torres Moran, 21, of Brooklyn, New York; Ivan Alexander Inoa Suero, 32, of the Bronx, New York; Jhonny Cepeda, 27, and Ramon Hurtado, 43, both of New York; and Yuleisy Roque, 21, of the Bronx. “As alleged, these 16 defendants preyed upon grandparents’ familial love and devotion, cheating them out of millions of dollars. In this ‘grandparents’ scam,’ the defendants allegedly impersonated grandchildren in distress, claiming, for example, they had been arrested after a car accident involving a pregnant woman who later miscarried, and they needed immediate cash for bail or a lawyer. The panic-stricken grandparents quickly paid—sometimes tens of thousands of dollars. My office is committed to protecting the rights of all victims, and we will relentlessly prosecute those who allegedly target vulnerable seniors to steal their hard-earned savings.” U.S. Attorney Philip R. Sellinger “The Justice Department’s Consumer Protection Branch and its law enforcement partners will vigorously pursue individuals who prey on vulnerable and elderly victims through fraudulent schemes,” Deputy Assistant Attorney General Arun Rao of the Justice Department's Civil Division, Consumer Protection Branch said. “We will continue to identify perpetrators of these schemes and prioritize the pursuit of those who deliberately target vulnerable consumers, whether located in the United States or abroad.” “Today’s announcement stems from the defendants’ alleged heartless targeting of elderly victims who were collectively tricked into handing over millions of dollars,” Department of Homeland Security, Homeland Security Investigations, New York, Acting Special Agent in Charge Darren B. McCormack, said. “For their own selfish gain, these accused individuals threatened innocent Americans’ livelihoods, and robbed them of their precious time and any nest eggs they had secured for themselves. I commend HSI New York’s El Dorado Task Force Cyber Intrusion Group, the U.S. Attorney’s Office for the District of New Jersey, the NYPD, the FBI, the Social Security Office of Inspector General, and HSI Santo Domingo for their outstanding collaboration and coordination. This can truly happen to anybody, and while we will always be there to assist victims, we hope that raising awareness will give these criminal opportunists fewer chances to target the public.” “We allege these scammers created an elaborate scheme revolving around a grandchild reaching out to say they were in trouble, had been arrested, and needed help,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Then to reinforce an immediate need for cash, these fraudsters allegedly posed as attorneys, law enforcement officers and court employees explaining how grandparents can get them money. Even the most jaded and savvy of us out there may pause a moment, thinking that this could actually be real. That’s the insidious nature of this particular fraud, criminals are preying on our instinct to protect our families. We ask anyone who believes they could also be a victim to report it at www.ic3.gov .” “Fraud targeting the elderly has a uniquely harmful effect on a segment of the population that is often amongst society's most vulnerable,” Bradley Parker, Acting Special Agent in Charge, Social Security Administration (SSA) Office of the Inspector General (OIG), Boston - New York Field Division, said. “SSA OIG is proud to join HSI, the FBI, the Justice Department, and the NYPD in investigating these complex, international scams aimed at defrauding SSA beneficiaries.” “These charges underscore law enforcement’s commitment to protecting our older population from fraudsters and financial exploitation,” New York Police Department Commissioner Edward A. Caban said. “The crimes outlined here are truly depraved in their nature: targeting our parents and grandparents, aunts and uncles, and others in an elaborate venture to bilk them of their hard-earned savings. I applaud our NYPD investigators and all of our federal partners involved in this important case for their tireless dedication to our shared public safety mission.” According to documents filed in this case and statements made in court: Juan Rafael Parra Arias, Nefy Vladimir Parra Arrias, and Gonzalez Acevedo operated a sophisticated network of call centers in the Dominican Republic. Their alleged victims included elderly residents of several states, including New Jersey, New York, Pennsylvania, and Massachusetts. The call centers victimized hundreds of Americans through fraud, stealing millions of dollars. Members of the conspiracy referred to as “openers” called elderly victims in the United States and impersonated the victims’ children, grandchildren, or other close relatives. The call centers used technology to make it appear that the calls were coming from inside the United States. Typically, the victim was told that their grandchild had been in a car accident, was arrested as a result of the accident, and needed help. Once openers duped victims into believing their loved ones were in dire trouble, others working at the call centers, known as “closers,” impersonated defense attorneys, police officers, or court personnel and convinced victims to provide thousands of dollars in cash to help their loved ones. Closers, including defendants Rodriguez Guzman, Fortuna Solano, Reynoso Ventura, and Estevez, typically told victims to give the cash to couriers who they sent to victims’ homes to collect their money. Other times, closers instructed victims to send the cash by mail. Once victims were convinced to give cash, call center “dispatchers,” including Serrano Rodriguez, Vasquez, Rosario Rodriguez, and Dilone Rodriguez recruited and managed a network of U.S.-based couriers to steal cash from the elderly victims across the Northeast. Those U.S.-based couriers, including the five charged by complaint, typically went to the elderly victims’ home to retrieve the cash, often using false names and providing victims with fake receipts in exchange. The couriers then brought the cash to other members of the conspiracy, who sent the victims’ money back to the Dominican Republic. Each of the charges in the indictment and complaint carries a maximum potential penalty of up to 20 years in prison. Each of the mail and wire fraud charges also carry a potential fine of up to $250,000; each of the money laundering charges also carry a potential fine of up to $500,000. U.S. Attorney Sellinger credited special agents and investigators of the Department of Homeland Security, under the direction of Acting Special Agent in Charge McCormack; special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark; the Social Security Administration, Office of the Inspector General, New York / Boston Field Division, under the direction of Acting Special Agent-in-Charge Bradley Parker; and the New York Police Department, under the direction of Commissioner Caban, with the investigation leading to the charges. He also thanked the Justice Department’s Office of International Affairs. The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark, and Jason Feldman, Joshua Ferrentino, and Emily Powers of the Department of Justice, Consumer Protection Branch in Washington, D.C. The charges and allegations contained in the indictment and complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty. Video press statement: Grandparents Scam press statement - YouTube usattorney_remarks.pdf grandparents.indictment.pdf


title: Maryland U.S. Attorney Erek L. Barron and HUD Inspector General Rae Oliver Davis host Safe Housing Summit

component: USAO - Maryland

body_text: Baltimore , Maryland – United States Attorney for the District of Maryland Erek L. Barron and the U.S. Department of Housing and Urban Development Inspector General Rae Oliver Davis hosted a seminar today focused on promoting the health and safety of tenants living in HUD-assisted housing by focusing on eliminating environmental hazards and combatting sexual misconduct in HUD-assisted housing. The seminar, which took place at the U.S. Attorney’s Office in Baltimore, was part of the HUD Office of Inspector General’s new community outreach initiative. The topics included effective safe housing strategies, environmental justice concepts and issues, and how to recognize and report sexual misconduct in housing. Participants included representatives from organizations who routinely work with vulnerable populations most likely to be impacted by environmental injustices, such as lead paint in their homes, or become victims of sexual harassment in housing by their landlords, property managers, maintenance staff, or other housing personnel in positions of authority. Organizations represented included local law enforcement agencies, legal aid offices, fair housing organizations, shelters, and transitional housing providers. Participants were encouraged to share their experiences, concerns, and expertise to build future partnerships and provide aid and assistance to beneficiaries when reporting matters related to health and safety in housing. “Marylanders deserve to live and raise their families in areas that are safe and where those who are tasked with providing HUD housing treat them with dignity and respect,” said U.S. Attorney Erek L. Barron. “My office is committed to addressing systemic environmental and housing violations that exist in underserved communities who rely on HUD’s housing assistance programs. We hope our partnership with HUD-OIG, and with other federal agencies and community advocates, will afford us the necessary resources to support vulnerable communities in a more coordinated and impactful way. The Safe Housing Summit is the first step of our expanded effort.” “Everyone deserves to live in a home that is free from exposure to lead and other environmental hazards, and without the threat of sexual harassment or sexual assault by housing providers,” said Inspector General Oliver Davis. “Outreach summits like the one we cohosted today with the U.S. Attorney are an important way to increase awareness of tenants’ rights within HUD-assisted housing and build stronger partnerships within the community. We will continue to work closely with our partners at the U.S. Attorney’s Office to investigate these violations of law.” If you or someone you know has information about environmental hazards and unsafe unit conditions in HUD-assisted housing or has been a victim of sexual harassment, sexual assault, or sexual exploitation—even if the events occurred years ago—report it to the HUD Office of Inspector General Hotline at 1-800-347-3735 or visit the website at www.hudoig.gov/hotline . You may also file a complaint with HUD’s Office of Fair Housing and Equal Opportunity at https://www.hud.gov/fairhousing/fileacomplaint . You may also contact the U.S. Department of Justice at 1-844-380-6178 or visit www.civilrights.justice.gov . Individuals who believe they may have been victims of environmental injustices or housing discrimination may also contact the U.S. Attorney’s Office at (410) 209-4965, USAMD.Environment@usdoj.gov or https://www.justice.gov/usao-md/civil-rights . For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach . # # #


title: Stoughton Man Who Mailed Packages Containing Fentanyl Pleads Guilty to Fentanyl Trafficking

component: USAO - Massachusetts

body_text: BOSTON – A Stoughton man pleaded guilty yesterday in federal court in Boston to his role in a wide-ranging fentanyl trafficking conspiracy. Angel Morales, 52, pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl and one count of distribution and possession with intent to distribute 400 grams or more of fentanyl. U.S. District Court Judge Angel Kelley scheduled sentencing for Sept. 5, 2024. In December 2022 , Morales was indicted along with co-conspirators Quenty Ogando, Erika Prado and Rahelin Reynoso. Between September 2022 and November 2022, Morales was involved in a scheme involving a large-scale pill press operation that manufactured, sold, and mailed counterfeit pills, including pills containing fentanyl, among other drugs. Morales’ role within the operation was to ship the packages from various post offices across Massachusetts. On multiple occasions, Morales used various post offices and FedEx facilities in Boston, Randolph, Holbrook, Quincy, Mattapan, Braintree, Milton and elsewhere to mail over 150 packages knowing that some of the packages contained controlled substances. On at least two occasions, FedEx employees opened packages pursuant to their internal procedures, and observed clear plastic sandwich bags filled with pills with markings consistent with prescription-only medication that later tested positive for fentanyl. On multiple occasions in October and November Morales was observed leaving an apartment in Mattapan before travelling to multiple post offices and FedEx facilities. During a subsequent search of that apartment, over 20 kilograms of pills in various colors, a sample of which tested positive for fentanyl, over 20 kilograms of loose powder, a sample of which tested positive for fentanyl, numerous packages and mailing labels, electronic devices, cash and three industrial grade pill presses were recovered. In addition, fentanyl, heroin, cocaine and methamphetamine were also found at the apartment. Morales is the fourth and final defendant to plead guilty in the case. On Jan. 31, 2024 , Ogando was sentenced to 144 months in prison and five years of supervised release. Prado and Reynoso are scheduled to be sentenced on April 30, 2024, and June 3, 2024, respectively. Both charges provide for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and fine of up to $10 million. 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; Michael J. Krol, Special Agent in Charge for Homeland Security Investigations in New England; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. Valuable assistance was provided by the Boston Police Department; Massachusetts State Police; United States Customs and Border Protection; Drug Enforcement Administration; and U.S. Food and Drug Administration. Assistant U.S. Attorneys J. Mackenzie Duane and Jennifer Zacks of the Narcotics & Money Laundering Unit are prosecuting the case.


title: U.S. Trustee Program Obtains Sanctions Against Consumer Bankruptcy Attorneys Involved in Real Estate Schemes

component: U.S. Trustee Program

body_text: The Justice Department’s U.S. Trustee Program (USTP) recently brought enforcement actions against two consumer bankruptcy attorneys who hid their involvement in schemes to acquire their clients’ homes. On Feb. 20, the Bankruptcy Court for the Southern District of California entered a stipulated judgment permanently barring attorney David Speckman from representing clients in bankruptcy cases in the district. Speckman also agreed to pay a fine of $3,500 in the stipulated judgment, which resolved an adversary complaint by the U.S. Trustee’s San Diego office. And the Bankruptcy Court for the Northern District of Georgia entered an order on April 5 prohibiting Stanley Kakol and his law firm from filing any new bankruptcy cases in the district for one year. The court’s order, which granted a motion for sanctions by the U.S. Trustee’s Atlanta office, also permanently barred Kakol from filing any bankruptcy case where he would be paid by a party other than the debtor. “Consumers who have fallen on hard times rely on their attorneys to help navigate the way to a fresh start,” said Director Tara Twomey of the Executive Office for U.S. Trustees. “Attorneys who abuse this trust for their own gain have no place in bankruptcy court.” In the California case, Speckman failed to disclose property transfers and other transactions involving his clients and Prado Investments LLC, a company owned by Speckman’s wife. Among other things, Speckman drafted agreements for two debtor clients to sell their homes to Prado during their chapter 13 bankruptcies without seeking court authorization and filed several false and misleading documents with the court that failed to disclose the transfers. In another chapter 13 case, Speckman failed to list his client’s debt to Prado and failed to identify Prado as the junior lienholder on the debtor’s home. In the stipulation, Speckman agreed that his conduct violated the Bankruptcy Code, federal and local rules of bankruptcy procedure and California attorney ethical rules. Kakol, the attorney in Georgia, filed two skeletal chapter 13 petitions for an 80-year-old widower at the behest of CMNC Homes LLC, which paid Kakol’s fees. The petitions were intended to delay a foreclosure on the debtor’s home and allow CMNC to complete a purchase of the home for well below market value. The property went into foreclosure after the debtor’s wife died, triggering a default on a reverse mortgage on which the wife was the sole borrower. After the second bankruptcy case was dismissed, the debtor’s family contacted a legal aid attorney who helped the debtor remain in the home through a federal program for non-borrowing spouses of deceased borrowers. In its order imposing filing restrictions, the bankruptcy court noted Kakol’s history of disciplinary action for similar misconduct in other cases including failure to properly disclose his compensation, failure to verify debtors’ signatures on bankruptcy paperwork and inadequate representation. The bankruptcy court has opened a separate proceeding to address at least 17 similar cases in which Kakol took payment from CMNC. The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the USTP at www.justice.gov/ust .


title: Muskegon Man Indicted For Possessing  Arsenal Of Weapons And Drugs

component: USAO - Michigan, Western

body_text: GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Orlando Bernard Easter, 35, of Muskegon, has been arrested after a federal grand jury returned an indictment charging Easter with one count of possession with intent to distribute controlled substances and two counts of being a felon in possession of firearms. “These allegations are serious and touch on two major threats to our communities: fentanyl and the spread of illegal firearms in the hands of prohibited persons,” said U.S. Attorney Mark Totten . “I’m grateful to the Drug Enforcement Administration and the West Michigan Enforcement Team for their work, including their effort to ensure crime doesn’t pay by recovering the fruits of these alleged crimes.” The indictment alleges that Easter possessed cocaine, fentanyl, MDMA, and methamphetamine, with the intent to distribute those substances, in a residence and storage unit. Easter is also alleged to have possessed seven firearms, including two stolen handguns and a handgun with an obliterated serial number. Easter could not legally possess firearms following a prior felony conviction. Investigators seized over $100,000 in cash, as well as two cars and gold and diamond jewelry, which the government alleges were purchased using the proceeds of Easter’s illegal drug trafficking enterprise. A photo of the seized evidence is below: “Fatal drug poisonings caused by fentanyl are a significant threat to communities throughout Michigan,” said Special Agent in Charge Orville O. Greene . “DEA, our state, local, and federal partners will employ every resource available to hold individuals, like Mr. Easter, who peddle these poisons-for-profit, accountable.” This case was investigated by WEMET and DEA. The charges in the indictment are merely accusations, and the defendant is presumed innocent until and unless proven guilty in a court of law. ###


title: Lexington Man Sentenced for Trafficking Fentanyl and Illegal Possession of a Machinegun

component: USAO - Kentucky, Eastern

body_text: LEXINGTON, Ky. – A Lexington man, James W. Jointer, Jr., 31, was sentenced on Monday, by Chief U.S. District Judge Danny Reeves, to188 months in prison, for two counts of possession of firearm by a convicted felon, two counts of possession with intent to distribute fentanyl, and one count of possession of a machinegun. According to his plea agreement, in November 2022, agents with the ATF identified Jointer as a trafficker of firearms and narcotics. During the investigation, ATF purchased two firearms and 15.9 grams of pressed fentanyl pills. ATF also purchased a machinegun conversion device, commonly referred to as a “Glock” switch. The purchased device was tested by agents and was confirmed to convert a semi-automatic firearm into an automatic firearm. Under federal law, such conversion devices qualify as machineguns. Jointer knew he had a prior felony conviction for trafficking in a controlled substance first degree, in Fayette Circuit Court from 2015, and was prohibited from possessing a firearm. Under federal law, Jointer must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for six years. Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Shawn Morrow, Special Agent in Charge, ATF Louisville Field Office, jointly announced the sentencing. The investigation was conducted by the ATF. Assistant U.S. Attorney Cynthia Rieker is prosecuting the case on behalf of the United States. — END —