title: Failed Restaurateur Pleads Guilty to Bankruptcy Fraud

component: USAO - Maryland

body_text: The Defendant Hid Money in Panamanian Banks While Discharging $6.2 Million in Debt Baltimore, Maryland – Keith K. Asante, age 51, formerly of Baltimore County, Maryland, pleaded guilty today to bankruptcy fraud. The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration Office of Inspector General (“SBA OIG”), Eastern Region; and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division. According to his guilty plea, Asante obtained two loans totaling approximately $4 million, one in April 2015 and the second in December 2016, for the construction and operation of two restaurant franchises in the Baltimore area. Asante personally guaranteed both loans, as did a consulting group that he owned, Asante Consulting Group (“ACG”). The Small Business Administration also guaranteed 75 percent of the loan balances to the financial institutions that made the loans. In the spring and early summer of 2017, Asante’s restaurants experienced financial difficulties, and Asante decided to close both restaurants in the fall of 2017. However, closing the restaurants did not relieve Asante or ACG of their loan guarantees. As detailed in the plea agreement, from approximately March 2017 through April 2018, Asante executed a scheme to defraud his creditors by misappropriating loan funds and using them for non-business purposes; hiding money in undisclosed bank accounts; transferring money to Panamanian bank accounts; filing for bankruptcy; and fleeing to Panama. Specifically, Asante used $30,000 of the loan funds to make payments to a builder for the construction of a 5,000 square foot home in Perry Hall, Maryland. In addition, on July 5, 2017, Asante formed Temak Technologies, LLC in New Mexico. The publicly available corporate documents did not identify Asante as having any affiliation with Temak. Instead, Asante used the identity of his then-wife, without her knowledge, to form Temak. In fact, Asante was the sole owner of Temak. Asante opened bank accounts on behalf of Temak and began operating the ACG business as Temak, depositing payments from ACG’s clients into the Temak bank account. From September 2017 to December 2017, Asante transferred approximately $260,000 from a Temak bank account and another bank account to banks in Panama. On January 10, 2018, Asante filed for Chapter 7 bankruptcy in the U.S. Bankruptcy Court in Maryland. In his filing, Asante did not disclose his ownership of Temak or his ownership of several bank accounts, including any of his Panamanian bank accounts. In his plea agreement, Asante further admitted that he continued to transfer funds to the Panamanian bank accounts while in bankruptcy, transferring $62,550 to Panamanian banks between January and March of 2018. At the conclusion of the bankruptcy proceeding, the Trustee was only able to distribute $36,775.31 to Asante’s creditors and on April 22, 2018, the Court granted Asante a bankruptcy discharge which eliminated Asante’s personal responsibility for $6,227,214.39 in debt. Asante began residing in Panama in or around January 2018. Asante faces a maximum sentence of five years in prison for bankruptcy fraud. U.S. District Judge Deborah L. Boardman has scheduled sentencing for January 23, 2024, at 11am. U.S. Attorney Erek L. Barron commended the SBA-OIG and the U.S. Postal Inspection Service for their work in the investigation. Mr. Barron also thanked Assistant United States Attorneys Matthew P. Phelps and Jefferson M. Gray, who are prosecuting the case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach . # # #


title: U.S. Attorney’s Office For The Middle District Of Pennsylvania Celebrates Funding Announced During Domestic Violence Awareness Month

component: USAO - Pennsylvania, Middle

body_text: SCRANTON - The Department of Justice joins survivors, victim service providers, advocates, and communities nationwide in recognizing October as National Domestic Violence Awareness Month (DVAM). This is a time to center the experiences of survivors, honor those who lost their lives to domestic violence; express gratitude to the countless individuals in the movement to end violence; and raise awareness on the issues of domestic violence, dating violence, sexual assault, and stalking. As part of its monthlong observance of DVAM, the U.S. Attorney’s Office for the Middle District of Pennsylvania is proud to announce that the Department’s Office on Violence Against Women (OVW) awarded $1,347,116 to the Middle District to bolster coordinated community responses aimed at bringing an end to domestic violence, as well as sexual assault, dating violence, and stalking. Data from the most recent National Intimate Partner and Sexual Violence Survey indicate about 41% of women and 26% of men experienced contact sexual violence, physical violence, and/or stalking by an intimate partner and reported an intimate partner violence-related impact during their lifetime. Domestic violence rates are even higher for American Indian and Alaska Native populations, Black individuals, people of color, people with disabilities, and LGBTQI+ individuals. The announced grants will reach Tribal nations, historically marginalized communities, underserved communities, college and university campuses, rural towns, culturally specific communities, and more. The funding prioritizes increasing access to justice, improving survivor safety, holding perpetrators accountable, and offering training and technical support to professionals addressing these crimes. Specifically, the Middle District of Pennsylvania received the following funds for the 2023 fiscal year: OVW awarded $573,202 for PA Coalition against Domestic Violence/PA Coalition Against Rape under State and Territory Domestic Violence and Sexual Assault Coalitions Program to enhance the coordination between courts, child protective services agencies, advocates, law enforcement, and community programs to encourage trauma-informed, survivor-centered responses to domestic violence and sexual assault. OVW awarded $374,836 State College Borough under the Improving Criminal Justice Responses to Sexual Assault, Domestic Violence, Dating Violence, and Stalking Grant Program to promote coordinated community responses among law enforcement agencies, courts, victim service providers, and other system partners. OVW awarded $399,078.00 to Widener University under the Grants to Reduce Sexual Assault, Domestic Violence, Dating Violence, and Stalking on Campus Program (Campus Program ) to support colleges and universities to develop and strengthen effective security and investigation strategies for such crimes and to develop prevention education and awareness programs. “I am pleased to announce that the Middle District of Pennsylvania has been awarded over $1.3 million in funding from the Office on Violence Against Women,” said United States Attorney Gerard M. Karam. “These grants will help agencies, organizations, and colleges to provide victim services and to address domestic and dating violence, sexual assault, and stalking in our communities across the Middle District.” “Every day, a vast network of dedicated individuals helps domestic violence survivors access multiple pathways to safety, justice, and healing,” said OVW Director Rosie Hidalgo. “OVW understands that there is no one-size-fits-all approach to addressing domestic violence. These funds will enable communities to increase capacity and strengthen a coordinated community approach to prevent and address violence in more comprehensive ways tailored to their communities. Together, with our grantees, we are building a future where individuals and families can live and thrive without the threat of intimate partner violence.” ### OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw . For more information on the U.S. Attorney’s Office, Middle District of Pennsylvania, visit https://www.justice.gov/usao-mdpa .


title: U.S. Attorney's Office for Western District of Kentucky Celebrates Funding Announced During Domestic Violence Awareness Month

component: USAO - Kentucky, Western

body_text: Louisville, KY – The Department of Justice joined survivors, victim service providers, advocates, and communities nationwide as it recognized October as National Domestic Violence Awareness Month (“DVAM”). This was a time to center the experiences of survivors; to honor those who lost their lives to domestic violence; to express gratitude to the countless individuals in the movement to end violence; and to raise awareness on the issues of domestic violence, dating violence, sexual assault, and stalking. As its monthlong observance of DVAM ends, the U.S. Attorney’s Office for the Western District of Kentucky is proud to announce that the Department’s Office on Violence Against Women (“OVW”) awarded $782,036 to organizations working in Western Kentucky to bolster coordinated community responses aimed at bringing an end to domestic violence, as well as sexual assault, dating violence, and stalking. Data from the National Intimate Partner and Sexual Violence Survey indicate about 41% of women and 26% of men experienced contact sexual violence, physical violence, and/or stalking by an intimate partner and reported an intimate partner violence-related impact during their lifetime. Domestic violence rates are even higher for American Indian and Alaska Native populations, Black individuals, people of color, people with disabilities, and LGBTQI+ individuals. The announced OVW grants will reach Tribal nations, historically marginalized communities, underserved communities, college and university campuses, rural towns, culturally specific communities, and more. The funding prioritizes increasing access to justice, improving survivor safety, holding perpetrators accountable, and offering training and technical support to professionals addressing these crimes. Specifically, organizations providing services for survivors of intimate partner violence, sexual assault, and human trafficking in the Western District of Kentucky received the following funds for the 2023 fiscal year: OVW awarded $340,618 to two Western Kentucky organizations under the State and Territory Domestic Violence and Sexual Assault Coalitions Program to enhance the coordination between courts, child protective services agencies, advocates, law enforcement, and community programs to encourage trauma-informed, survivor-centered responses to domestic violence and sexual assault. Under this initiative, ZeroV, Inc., formerly the Kentucky Coalition Against Domestic Violence, received $108,034, and the Kentucky Association of Sexual Assault Programs received $232,584. These organizations provide support for programs and shelters across Kentucky, including locations in Louisville, Elizabethtown, Owensboro, Paducah, Hopkinsville, Bowling Green, and Somerset. OVW awarded $441,418 to Women Aware, Inc., a non-profit in Paducah, Kentucky, under the Transitional Housing Assistance Grants for Victims of Sexual Assault, Domestic Violence, Dating Violence, and Stalking Program (Transitional Housing Program) to provide 6 to 24 months of transitional housing or housing assistance to survivors of domestic violence, sexual assault, dating violence, and stalking. Western District of Kentucky U.S. Attorney Michael A. Bennett stated, “I am thrilled to share these funding awards from the Office on Violence Against Women which benefit organizations and service providers advocating for victims and helping survivors throughout the Western District of Kentucky escape abuse, heal from trauma, and rebuild their lives. These awards will support their ongoing commitment to providing essential services in our communities and empowering survivors and their families to realize a life free from abuse.” “Every day, a vast network of dedicated individuals helps domestic violence survivors access multiple pathways to safety, justice, and healing,” said OVW Director Rosie Hidalgo. “OVW understands that there is no one-size-fits-all approach to addressing domestic violence. These funds will enable communities to increase capacity and strengthen a coordinated community approach to prevent and address violence in more comprehensive ways tailored to their communities. Together, with our grantees, we are building a future where individuals and families can live and thrive without the threat of intimate partner violence.” OVW provides leadership in developing the nation’s capacity to reduce violence through implementing the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw . ###


title: Pelham Manor Man Charged With Health Care Fraud And Kickback Scheme

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Naomi Gruchacz, the Special Agent in Charge of the New York Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced the unsealing of a five-count Indictment charging MANISHKUMAR PATEL in connection with a health care fraud and kickback scheme involving the sale of fraudulent prescriptions. PATEL was arrested this morning in Pelham Manor, New York, and was presented this afternoon before U.S. Magistrate Judge Gary Stein. The case is assigned to U.S. District Judge Schofield. U.S. Attorney Damian Williams said: “As alleged, Manishkumar Patel ran a scheme to get rich by generating fraudulent prescriptions used to bill Medicare for millions of dollars in unnecessary healthcare expenses. Today’s charges send a message: our Office and our law enforcement partners are dedicated to holding accountable anyone who tries to rip off critical healthcare programs like Medicare.” HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Certain violations of the Anti-Kickback Statute can result in the inducement of medically unnecessary durable medical equipment, medications, and laboratory tests, which can affect the availability of services for others and drive up the cost of health care for everyone. Individuals and entities that participate in the federal health care system are required to obey the laws meant to preserve the integrity of program funds and the provision of appropriate, quality services to patients.” As alleged in the Indictment: [1] Between 2019 and 2022, PATEL and a coconspirator (“CC-1”) fraudulently sold prescriptions and doctors’ orders for durable medical equipment, pharmaceuticals, and laboratory tests (collectively, “scripts”) to durable medical equipment suppliers, pharmacies, and laboratories (collectively, the “Medicare Providers”). PATEL obtained the scripts from call centers that called Medicare beneficiaries and asked them perfunctory questions designed to justify a script that would be reimbursed by Medicare. PATEL turned the information from those calls into scripts by, variously: (i) arranging cursory telemedicine appointments with the beneficiaries; (ii) a practice called “doctor chasing,” in which the information was sent to a doctor who signed the script without seeing the patient and who was frequently unaware of what they were signing; and (iii) obtaining forged scripts. PATEL then sold the scripts to Medicare Providers, which filled the orders and billed Medicare. Because the scripts were fraudulently obtained, many beneficiaries rejected the items they were sent by the Medicare Providers, many doctors threatened to report PATEL for fraud, and Medicare frequently refused to pay for the scripts. The Medicare Providers made payments to PATEL for the scripts in violation of the Anti-Kickback Statue. PATEL and the Medicare Providers entered into sham contracts for generic marketing services at flat rates in an attempt to conceal their illegal kickback scheme. * * * PATEL, 44, of Pelham Manor, New York, is charged with (i) conspiracy to commit health care fraud and wire fraud, which carries a maximum sentence of 20 years in prison; (ii) health care fraud, which carries a maximum sentence of 20 years in prison; (iii) wire fraud, which carries a maximum sentence of 20 years in prison; (iv) conspiracy to violate the Anti-Kickback Statute, which carries a maximum sentence of five years in prison; and (v) violation of the Anti-Kickback Statute, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Mr. Williams praised the outstanding work of HHS-OIG. The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Kevin Mead is in charge of the prosecution. The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitutes only allegations, and every fact described therein should be treated as an allegation.


title: Five individuals sentenced for their role in sex trafficking scheme

component: USAO - Georgia, Northern

body_text: ATLANTA – Five individuals have been sentenced for their involvement in a sex trafficking scheme that occurred throughout the Northern District of Georgia. The conduct came to light after a minor victim was reported missing in Miami, Florida when her parents realized she failed to board a flight to Honduras. The minor had been transported by two defendants to Georgia and forced to commit commercial sex acts and participate in “sex parties.” “Sex trafficking exploits and traumatizes some of the most vulnerable members of our society,” said U.S. Attorney Ryan K. Buchanan. “Sex trafficking victims from immigrant communities can be especially fearful of reporting these crimes. So, our office is grateful for the diligence of our federal, state, and local law enforcement partners who remained steadfast in achieving the trust of the victims in this case and helping to secure justice for these young girls and their families.” “These criminals were more concerned with their own selfishness and greed than the terrible circumstances they exposed minors to,” said Brian Ozden, Assistant Special Agent in Charge of FBI Atlanta. “These crimes are among the most depraved on the books. With a victim-centered approach, the FBI will continue working with our law enforcement partners to hold those who choose to prey on our most vulnerable citizens accountable.” “The investigators and U.S. Attorney’s office did a great job prosecuting this case. I am pleased that the Dalton Police Department was able to play a role in getting these individuals off the streets,” said Dalton Police Chief Cliff Cason. According to U.S. Attorney Buchanan, the charges and other information presented in court: Brian Hernandez Acosta, along with co-defendants Nilageo Alvarez Acosta, Jaime Adam Riano, Anthony Joseph Lawhon, and Brandi Rice Stumpe, conspired to traffic minor girls for commercial sex throughout North Georgia. Beginning in or around November 2015, and continuing until December 2016, the defendants caused at least six girls between 16 and 17 years old to engage in prostitution, including by using force, fraud, and coercion. Hernandez Acosta, after pursuing some of the girls on Facebook and Snapchat, posted provocative photographs of them in the adult entertainment and escort sections of Backpage.com , a classified advertisement website seized by the Department of Justice. Hernandez Acosta used these ads to solicit men to engage in sex with the minors for money. The advertisements used fake names for the minors and falsely listed the girls’ ages as between 19 through 21 years old. Hernandez Acosta and his brother, Alvarez Acosta, forced one 16-year-old girl to engage in sex with men after driving her from Florida to Georgia after falsely claiming they would provide the girl a place to live. The defendants required the young girls to engage in sex acts with multiple men each night and kept a large portion of the money they earned. Riano acted as the co-defendants’ driver and transported the minors to hotel locations throughout the district, where the girls were forced to engage in commercial sex acts. Between July 2016 and December 2016, co-defendants Anthony Joseph Lawhon and Brandi Rice Stumpe hosted numerous sex parties at their residence in Canton, Georgia, where they engaged in sex acts with minor girls and young women, while plying them with alcohol and cocaine. Investigators recovered images of some of this conduct on Hernandez Acosta’s cellphone. Lawhon paid Hernandez Acosta thousands of dollars in exchange for commercial sex and cocaine. Chief U.S. District Judge Timothy C. Batten, Sr. sentenced the defendants for their respective roles in the criminal scheme as follows: Jaime Adam Riano, 34, of East Ridge, Tennessee, was sentenced to seven years in prison to be followed by 10 years of supervised release. Riano pleaded guilty on November 17, 2017, to two counts of sex trafficking children under 18 years old. Nilageo Alvarez-Acosta, 37, of Camaguey, Cuba, was sentenced to 23 years in prison to be followed by 20 years of supervised release. Alvarez-Acosta pleaded guilty on April 11, 2019, to the offense of sex trafficking of a minor, transportation of a minor for prostitution, and two counts of conspiracy to commit sex trafficking of a minor. Hernandez Acosta, 32 of Havana, Cuba, was sentenced to 30 years in prison to be followed by 20 years of supervised release. Acosta was sentenced after pleading guilty on July 1, 2019, to conducting a child exploitation enterprise, sex trafficking minors by force, fraud, or coercion, sex trafficking of children under 18 years old, transporting a minor in interstate commerce for prostitution, producing child pornography, and distributing cocaine to a person under 21 years old. Brandi Rice Stumpe, 40, of Powder Springs, Georgia, was sentenced to five years in prison to be followed by five years of supervised release, including 100 hours of community service. Stumpe pleaded guilty on August 5, 2020, to the offense of conspiracy to commit sex trafficking of a minor. Anthony Joseph Lawhon, 44, of Atlanta, Georgia, was sentenced to 10 years in prison to be followed by a lifetime of supervised release after pleading guilty on April 14, 2022, to the offense of conspiracy to commit sex trafficking of a minor. This case was investigated by the Federal Bureau of Investigation and the Dalton Police Department. The U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Georgia Bureau of Investigation, and the Murray County Sheriff’s Office also provided assistance. Assistant U.S. Attorneys Dash A. Cooper and Phyllis Clerk, and former Assistant U.S. Attorney Suzette Smikle, prosecuted the case. This case is part of Project Safe Childhood. In February 2006, the Attorney General launched Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices around the country, Project Safe Childhood marshals federal, state and local resources to apprehend and prosecute individuals who exploit children. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov. For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga .


title: Drug trafficker convicted of murder for hire outside parole office – facing mandatory life sentence

component: USAO - Texas, Southern

body_text: HOUSTON – A federal jury in Houston has convicted a 50-year-old Houston man on multiple violent crimes related to a drug trafficking conspiracy, announced U.S. Attorney Alamdar S. Hamdani. The jury deliberated for six hours before returning the guilty verdicts on all counts against Ronald Brown aka Nuk, Nook or Nookie following a six-day trial. He was found guilty of conspiracy to commit murder for hire, intentional killing related to drug trafficking, two counts of using a firearm in the commission of a murder, kidnapping and using a firearm in relation to the kidnapping as well as conspiracy to distribute and possess with the intent to distribute cocaine. “Stuffing a zip-tied man into a trunk, raining down gunfire during a car chase and hiring a murderer…all part of Ronald Brown’s illicit cocaine business,” said Hamdani. “People like him destroy communities with the poison they sell and the violence they commit. Brown’s actions cut short someone’s life and put others in peril. And now, thanks to the hard work of federal prosecutors and law enforcement, the only thing in peril is Brown’s freedom.” During trial, the jury heard from several witnesses who testified about working directly for Brown. He was responsible for moving as much as 100 to 200 kilograms of cocaine each week from Houston to Atlanta, Georgia, on 18-wheeler trucks and car haulers. Once in Atlanta, his associates would divide the shipments before delivering it to Brown’s customers. In December 2013, law enforcement seized 21 kilograms of cocaine from one of Brown’s associates who had placed the bag in a vehicle at a Valero gas station. Brown was upset by the loss and sidelined him from the drug operation at that time. The jury also heard testimony from one of Brown’s drivers who was robbed of approximately 56 kilograms of cocaine April 18, 2014. Brown suspected the same individual who lost the drugs at the Valero and another drug associate conspired to steal the cocaine from him. On April 23, 2014, Brown and others kidnapped the associate, zip-tied his arms and legs and put him in the trunk of Brown’s girlfriend’s vehicle. A good Samaritan picked up the victim and attempted to drive him to safety after the victim managed to free himself from the trunk. However, Brown pursued and shot at them repeatedly, ultimately striking the good Samaritan in the upper body and the associate in the head. Both survived. One of the kidnappers told the jury he met Brown following the kidnapping who directed him to dump the vehicle and gun used during the shooting. Brown also directed his girlfriend to report the vehicle as stolen. Following the failed attempt to kill this person, Brown began searching for the other man from the Valero incident whom he also thought was part of the alleged theft on April 18 in order reclaim his drugs. He ultimately decided he wanted to kill him. Testimony revealed Brown was able to obtain the date of the man’s next parole visit. Through a middleman, Brown then hired a shooter and provided him with a handgun. Following that parole visit on July 1, 2014, the victim returned to his vehicle in the parking lot. The shooter then fired multiple shots at close range at the victim as he sat in the driver’s seat. He died at the scene. Afterwards, Brown met the shooter and middleman in the parking lot of a grocery store and paid them $20,000. The defense attempted to convince the jury that other members of Brown’s drug trafficking organization orchestrated the kidnapping and murder. They did not believe those claims and found Brown guilty as charged. Senior U.S. District Judge Sim Lake presided over the trial and set sentencing for Jan. 29, 2024. At that time, he will get life in a federal prison. Brown has been and will remain in custody pending that hearing. Assistant U.S. Attorneys Sebastian A. Edwards and Britni Cooper are prosecuting the case. The FBI conducted the investigation with assistance from the Houston Police Department’s Homicide Division, Texas Department of Criminal Justice – Parole Division, U.S. Marshals Service, Federal Bureau of Prisons and Drug Enforcement Administration.


title: Gang Leader Sentenced to 30 years, Three Others Sentenced to Federal Prison, for Lexington Fentanyl Conspiracy

component: USAO - South Carolina

body_text: COLUMBIA, S.C. — The leader of a local street gang, Carlos Antonio Grooms , a/k/a “B Lord,” 36, of Columbia, was sentenced to 30 years in federal prison, following a federal drug conspiracy conviction. Three co-conspirators were also sentenced to federal prison for their role in the scheme. Between 2020 and 2022, Grooms led a drug trafficking organization that was responsible for distributing multiple kilograms of heroin, fentanyl, and methamphetamine in the Lexington and Columbia areas. Grooms sold drugs on video to agents with the Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) on numerous occasions, typically through drug users who he used as couriers. Evidence at sentencing indicated that he used as many as 9 others to distribute drugs, that the conspiracy used firearms in connection with drug trafficking, and that Grooms used numerous stash houses in the area to operate this conspiracy. Agents found a kilogram press, scales, night vision goggles, more than $10,000 in U.S. currency, a heat sealer, multiple cell phones, and other tools of the drug trade at Grooms’ house when he was arrested. At sentencing, the Court found that Grooms continued to coordinate drug distributions while in federal custody over recorded jail phones and e-mail accounts, and that Grooms was the leader of a local criminal street gang. The Court also found that Grooms threatened and tampered with numerous witnesses, including by telling witnesses to lie to agents or not speak with the police, and Grooms was responsible for at least one witness receiving what amounted to death threats. As a result, the Court enhanced Grooms’ sentence for obstruction and witness tampering. United States District Judge Mary Geiger Lewis sentenced Grooms to 30 years in federal prison, to be followed by five years of Court-ordered supervision. There is no parole in the federal system. The Court also sentenced three others for helping Grooms in his drug distribution operation: Christine Elizabeth Horan (age 33, of Pelion, S.C.) was sentenced to 57 months to be followed by three years of Court-ordered supervision, Lucas Channing Austin (age 30, of Gaston, S.C.) was sentenced to 21 months to be followed by three years of Court-ordered supervision, and Emerald Kate Hearon (age 35, of Gaston, S.C.) was sentenced to Time Served (about 10 months) to be followed by two years of Court-ordered supervision. All three were convicted of conspiracy to possess with intent to distribute and to distribute controlled substances, and all three distributed narcotics for Grooms. This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. This case was investigated by the ATF, the Lexington County Sheriff’s Department, and the Richland County Sheriff’s Department. Assistant U.S. Attorney Elliott B. Daniels prosecuted the case. ###


title: Virginia man sentenced to more than 12 years for methamphetamine trafficking

component: USAO - West Virginia, Northern

body_text: WHEELING, WEST VIRGINIA - A Virginia man has been sentenced to nearly 13 years in prison for methamphetamine trafficking. Jason Knapp Downey, age 39, of Covington, Virginia, was sentenced to 154 months in federal prison for possession with intent to distribute 50 grams or more of methamphetamine. According to court documents and statements made in court, Downey obtained the illegal substance from Cleveland, Ohio and brought it to Weirton, West Virginia to be distributed. Officers executed a search warrant on Downey’s residence and retrieved two digital scales, a large amount of pure methamphetamine, United States currency, and ammunition. Assistant U.S. Attorney Carly Nogay prosecuted the case on behalf of the government. The Hancock-Brooke-Weirton Drug Task Force investigated the case. U.S. District Judge John Preston Bailey presided.


title: Four Men Indicted for Defrauding Global Financial Services Company Based in Menlo Park, California of Over Two Million Dollars

component: USAO - New York, Eastern

body_text: A two-count indictment was unsealed today in federal court in Central Islip charging four men with conspiracy to commit securities fraud and money laundering conspiracy in connection with a scheme to steal millions of dollars from a global financial services company based in Menlo Park, California. The charges arise from a wide-ranging scheme by the defendants to create hundreds of sham brokerage accounts in order to access short-term cash advances which the defendants then stole through a complex options trading scheme. In total, the defendants recruited dozens of individuals to engage in their fraudulent scheme and stole more than $2 million. Eduardo Hernandez was arrested today in Atlantic City, New Jersey and will be arraigned this afternoon in federal court in Brooklyn before United States Magistrate Judge Lois Bloom. Christopher Flagg and Daquan Lloyd were arrested earlier today on Long Island and will be arraigned this afternoon in federal court in Central Islip before United States District Judge Gary R. Brown. The fourth defendant, Corey Ortiz, remains at large. Breon Peace, United States Attorney for the Eastern District of New York and James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI) announced the arrests and charges. “The defendants are charged with stealing millions of dollars by creating fraudulent brokerage accounts and engaging in sham trading,” stated United States Attorney Peace. “For years, the defendants deceived others to line their own pockets. Today’s indictment shows that this Office will hold accountable anyone who tries to manipulate the financial system.” U.S. Attorney Peace thanked the Securities and Exchange Commission for their assistance with the case. “The defendants allegedly engaged in a sprawling multiyear complex financial fraud scheme, which saw more than 2 million dollars stolen. This type of scam is not only illegal, but weakens the public’s faith in our financial marketplace. The FBI will continue to ensure that anyone attempting to benefit from this type of fraud is punished in the criminal justice system,” said FBI Assistant Director-in-Charge Smith. As alleged in the indictment, between December 2018 and January 2023, the defendants engaged in a scheme to defraud a global financial services company of millions of dollars of short-term cash advances, called “Instant Deposits.” The Instant Deposits were intended to enable legitimate investors to immediately trade in their brokerage accounts without having to wait for an incoming wire transfer to clear. To gain access to millions of dollars of Instant Deposits, which were typically capped at $5,000 per account, the defendants established a multi-state recruitment network through which the defendants opened hundreds of fraudulent accounts held in the names of straw account holders, or “Losing Accounts.” Using the Instant Deposits available to the Losing Accounts, the defendants repeatedly bought thinly traded and highly speculative stock options at above-market prices. Selecting these virtually worthless stock options enabled the defendants to match their bids in the Losing Account with offers to sell the same overpriced stock options initiated by other brokerage accounts, or “Winning Accounts,” that were also controlled by the defendants and their conspirators. In effect, the defendants transferred the Instant Deposits from the Losing Accounts to the Winning Accounts by way of fraudulent securities transactions. Meanwhile, the incoming wire transfers supposed to cover the Instant Deposits in the Losing Accounts had purposely been initiated by the defendants from bank accounts that had little or no balance. These wire transfers, therefore, failed to clear, but not before the defendants drained the Instant Deposits, leaving the accounts with negative balances and worthless options. The defendants then laundered the stolen funds through multiple electronic banking platforms. In total, the defendants recruited dozens of individuals to engage in their fraudulent scheme and stole more than $2 million. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 25 years in prison. In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft. The government’s case is being handled by the Business and Securities Fraud Section. Assistant United States Attorneys Jonathan P. Lax and Sara K. Winik are in charge of the prosecution with the assistance of Paralegal Specialist Jake Menz. The Defendants : EDUARDO HERNANDEZ (also known as “Ghost”) Age: 33 Lindenhurst, New York CHRISTOPHER FLAGG (also known as “Venus”) Age: 28 Copiague, New York DAQUAN LLOYD (also known as “Payday”) Age: 29 Copiague, New York COREY ORTIZ (also known as “Jefe”) Age: 29 Greensboro, North Carolina E.D.N.Y. Docket No. 23-CR-428 (GRB)


title: Cryptocurrency Founder “Bruno Block” Sentenced To Four Years In Prison

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that AMIR BRUNO ELMAANI, a/k/a “Bruno Block,” the founder of the cryptocurrency “Oyster Pearl,” was sentenced to four years in prison, the maximum sentence allowed by statute, for tax offenses ELMAANI committed in connection with the Pearl token. ELMAANI had previously pled guilty on April 5, 2023, before U.S. District Judge Colleen McMahon, who imposed today’s sentence. In connection with his guilty plea, ELMAANI admitted that he had secretly minted and sold for his own gain Pearl cryptocurrency tokens, which caused the price of Pearl tokens to plummet, and that he did not pay income tax on certain cryptocurrency profits. ELMAANI agreed that he caused a tax loss of over $5.5 million. U.S. Attorney Damian Williams said: “Amir Elmaani violated the duty he owed to pay taxes on millions of dollars of cryptocurrency profits, and he also violated the trust of investors in the cryptocurrency he founded. Participants in the cryptocurrency markets must play by the rules, and this Office will be tireless in prosecuting those who do not.” Based on the allegations in the Indictment, in the Superseding Information to which ELMAANI pled guilty, the plea agreement, and other statements made and documents filed in court: In September and October 2017, ELMAANI began promoting online a new cryptocurrency known as Pearl tokens. Using a variation of his online pseudonym “Bruno Block,” ELMAANI stated that he planned to develop an online data-storage platform, known as Oyster Protocol, which would allow users to purchase online data storage with Pearl tokens. Instead of using his real name, ELMAANI operated almost exclusively online under the pseudonym “Bruno Block.” ELMAANI concealed his true identity from his prospective employees and business associates and never met them in person. In the fall of 2017 and thereafter, ELMAANI sold Pearl tokens to the investing public through an “initial coin offering” and on cryptocurrency market platforms. ELMAANI announced that he intended to take a “founder’s share” of Pearl tokens for his own personal use. ELMAANI owned and controlled the subsequently established company Oyster Protocol Inc. through a shell company not associated with his true name. In a statement issued under ELMAANI’s online pseudonym on June 7, 2018, ELMAANI stated that he was retaining millions of Pearl tokens as his “ownership stake” in Oyster Protocol, but that he had to move the tokens to a different cryptocurrency wallet “in order to avoid being double-taxed.” In truth, ELMAANI did not report or pay tax on any of his cryptocurrency proceeds. At various points, ELMAANI used friends and family as nominees to receive cryptocurrency proceeds and transfer them or U.S. currency to his own accounts. ELMAANI dealt substantially in precious metals, kept gold bars in a safe on a yacht he owned, and used large amounts of cash to pay personal expenses. In late October 2018, although the number of Pearl tokens was purportedly fixed, ELMAANI used his access to the blockchain technology used to create Pearl tokens to mint new tokens, which he took for his own personal use (the “Exit Scheme”). ELMAANI thereby increased the total volume of Pearl tokens. Shortly after creating the new tokens, ELMAANI converted the Pearl tokens he had obtained to other types of cryptocurrency on an online marketplace or exchange. As a result of ELMAANI’s conduct, trading in Pearl tokens halted on that exchange and the price of Pearl tokens held by investors dropped substantially. Pearl tokens were subsequently de-listed from the primary exchange where they were traded. Subsequent to the Exit Scheme, ELMAANI used his friends and family to receive cryptocurrency and to transfer funds to a bank account in his name. While ELMAANI initially attempted to hide even “Bruno Block’s” involvement in the Exit Scheme, he later effectively admitted to the conduct online under his “Bruno Block” pseudonym. In a recorded call with the then-chief executive officer (“CEO”) of Oyster Protocol Inc. after the Exit Scheme, the CEO asked ELMAANI why he had to take the additional new Pearl tokens if he had already cashed out millions of dollars’ worth of Pearl tokens in the past. ELMAANI responded, in part, that “taxes are pretty nasty.” ELMAANI carried out the Exit Scheme only days before the exchange he had used to cash out his Pearl tokens was set to require “know your customer” personal identifying information from its users. In connection with his plea, ELMAANI admitted in the plea agreement that: In or about 2017, using the alias “Bruno Block,” I began an online project called the “Oyster Protocol.” In support of this project, an initial coin offering (“ICO”) was held in or about October 2017, in which a token named “Pearl” (“PRL”) was issued. I stated in public forums that after the ICO, the supply of PRL would not increase, and that the smart contract that created PRL would be “locked.” Contrary to these statements, on or about October 29, 2018, I used the smart contract to mint new PRL, without telling anyone, including others who worked on the Oyster Protocol project. I then sold these newly minted PRL on a digital trading platform. I was aware that the counterparties who were buying these newly-minted PRL likely were not aware of my reopening of the smart contract and did not know that I had just substantially increased the total supply of PRL. After Oyster management learned of my reopening of the smart contract and alerted the public, the price of PRL plummeted. ELMAANI filed a false 2017 tax return stating that he had only approximately $15,000 of income from a “patent design” business, and he filed no return and reported no income to the IRS in 2018. Nevertheless, ELMAANI spent, in 2018, over $10 million for the purchase of multiple yachts, $1.6 million at a carbon-fiber composite company, hundreds of thousands of dollars at a home improvement store, and over $700,000 for the purchase of two homes, one of which was titled in the name of a shell company and the other in the name of two of his associates. The tax loss to the United States from ELMAANI’s conduct was approximately $5,523,794. * * * In addition to the prison term, ELMAANI, 31, of Martinsburg, West Virginia, was sentenced to one year of supervised release and was ordered to pay restitution in the amount of $5,523,794. Mr. Williams praised the investigative work of the Internal Revenue Service and the Federal Bureau of Investigation and also thanked the Securities and Exchange Commission and the Commodity Futures Trading Commission for their assistance. This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham and Adam Hobson are in charge of the prosecution.


title: Former Bureau of Prisons Correctional Officer Sentenced to A Year in Federal Prison for Accepting Bribes from Inmates to Smuggle Tobacco

component: USAO - Indiana, Southern

body_text: TERRE HAUTE- Shauna N. Boatright, 36, of Fisher, Illinois, has been sentenced to one year and a day in federal prison after pleading guilty to accepting a bribe as a public official. According to court documents, for nine years, Shauna Boatright was employed with the United States Department of Justice, Federal Bureau of Prisons, as a correctional treatment specialist at the Federal Correctional Complex in Terre Haute, Indiana. In late 2021, Boatright was assigned to monitor an inmate in the facility’s Residential Drug Abuse Program. Boatright told the inmate that she was in financial distress and asked him how she could make some money. Boatright agreed to take bribes to smuggle tobacco into the prison for the inmate. Inmates are prohibited from possessing tobacco in federal prisons. Boatright later took bribes to smuggle tobacco into the prison for a second inmate. After the inmates received the contraband, they directed their associates outside of the facility to transfer money to Boatright using CashApp. Between September 30 and October 27, 2021, Boatright received five CashApp payments from the inmates’ associates totaling $9,800. “The defendant took an oath to enforce the law and protect those in her care. Instead, she abused her position for her own financial gain—risking the health and safety of her fellow correctional officers and the facility’s inmates,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Public service is a public trust, especially for those entrusted with positions in corrections and law enforcement. The vast majority of corrections officers serve with honesty and integrity, and those who instead choose to break the law themselves must be held accountable. Our office is committed to working closely with the FBI and DOJ-OIG to root out all forms of corruption or abuse in our federal prisons.” “We trust Federal Bureau of Prisons employees to conduct themselves with honesty and integrity. Ms. Boatright compromised her integrity for a bribe, and in the process, endangered her fellow Correctional Officers by introducing contraband into the prison,” said William J. Hannah, Special Agent in Charge of the Department of Justice Office of the Inspector General’s Chicago Field Office. The FBI and Department of Justice- Office of Inspector General’s Chicago Field Office investigated this case. The sentence was imposed by U.S. District Court Judge, James P. Hanlon. Judge Hanlon also ordered that Boatright be supervised by the U.S. Probation Office for 2 years following her release from federal prison and pay a $500 fine. U.S. Attorney Myers thanked Assistant United States Attorney, James M. Warden, who prosecuted this case.


title: New Jersey Attorney Pleads Guilty To Fraud And Aggravated Identity Theft Charges

body_text: SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 30, 2023, Scott Marinelli, age 52, of Mountainside, New Jersey, pleaded guilty to six counts of wire fraud and six counts of aggravated identity theft. According to United States Attorney Gerard M. Karam, Marinelli admitted that between November 2017 and April 9, 2018, he participated in a scheme to defraud victims of proceeds from the sales of six properties. Marinelli, a suspended attorney from New Jersey, acted as a real estate broker and title agent and directed a mortgage company to wire loan funds to him for the sale of the properties. Marinelli further admitted that instead of properly dispersing the funds from the mortgage company, he used the money that he received for his own personal benefit. Marinelli further admitted that as part of his scheme, he stole the identities of the property sellers, a notary public, a title agent, and an accountant. Marinelli currently faces additional, unrelated charges in federal court in Washington, D.C., and in state court in New Jersey. The case was investigated by the Federal Bureau of Investigation and the Monroe County District Attorney’s Office. Assistant U.S. Attorneys Jenny P. Roberts and Sean Camoni prosecuted the case. Marinelli faces a maximum total period of incarceration of 120 years for the wire fraud charges and must serve at least an additional two and up to twelve years for the aggravated identity theft charges. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. # # #


title: Johnstown Man Sentenced to 42 Months in Prison and 3 Years of Supervised Release for Conspiring to Distribute and Possess Controlled Substances

component: USAO - Pennsylvania, Western

body_text: JOHNSTOWN, Pa. – A former resident of Johnstown, PA, has been sentenced in federal court to a total of 42 months in prison followed by 3 years of supervised release on his conviction of conspiracy to distribute and possess with intent to distribute quantities of controlled substances, United States Attorney Eric G. Olshan announced today. Senior United States District Judge Kim R. Gibson imposed the sentence on Joseph Thornton, age 33, of Johnstown, Pennsylvania. According to information presented to the court, from on or about April 2019, to on or about July 2021, Thornton did conspire to distribute and possess with intent to distribute quantities of controlled substances. Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government. Mr. Olshan commended the Federal Bureau of Investigation, Laurel Highlands Resident Agency and Homeland Security Investigations for the investigation that led to the successful prosecution of Thornton. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Pennsylvania Office of the Attorney General, Pennsylvania State Police, Cambria County District Attorney’s Office, Indiana County District Attorney’s Office, Cambria County Sheriff’s Office, Cambria Township Police Department, Indiana Borough Police Department, Johnstown Police Department, Upper Yoder Township Police Department, Richland Police Department, Ferndale Police Department and other local law enforcement agencies. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.


title: Peoria, Illinois, Man Sentenced to Three Years of Probation for Paycheck Protection Program Fraud

component: Department of Justice

body_text: PEORIA, Ill. – A Peoria, Illinois, man, Andre K. Johnson, 25, was sentenced on October 30, 2023, to three years of probation for making false statements related to the federal Paycheck Protection Program (PPP). United States District Judge James E. Shadid also ordered Johnson to pay restitution in the amount of $30,586.05 and to serve six months of home detention. The PPP provided federal funds to small businesses that were directly affected by the COVID-19 pandemic to pay up to eight weeks of payroll costs, rent, utilities and mortgage interest. The program was implemented by the Small Business Administration (“SBA”) and administered by third-party lenders. The PPP was enacted via the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, an economic bill that passed in March 2020 in response to the economic fallout caused by the pandemic. Johnson was indicted in March 2023 and pleaded guilty in June 2023 to one count of making a false statement to obtain a PPP loan. From May 2020 to September 2021, Johnson fraudulently obtained PPP funds to which he was not entitled by submitting a false PPP application, as well as a fraudulent PPP loan forgiveness application. Johnson claimed to be a self-employed individual who was the sole proprietor of an alleged jewelry and watch wholesale store with a taxable gross income of $100,000 on his loan application. He was held responsible for losses to the SBA of $23,410.05 and Harvest Small Business Finance LLC, in the amount of $7,176.00. In addition to the fraudulent PPP loan, Johnson fraudulently tried to obtain over $26,000 in unemployment benefits from the states of Illinois, Pennsylvania, Indiana, and California. The statutory penalties for making a false statement are up to five years imprisonment, a possible $250,000 fine, and up to three years of supervised release. The Internal Revenue Service, Criminal Investigation Division, and the Federal Bureau of Investigation, Springfield Field Office, investigated the case. Criminal Chief Darilynn J. Knauss represented the government in the prosecution.


title: District Man Sentenced to 15 Years in Prison  for Armed Bank Robberies and Threats

component: USAO - District of Columbia

body_text: WASHINGTON – Mark Stubblefield, 66, of Washington, D.C., was sentenced today to 15 years in prison in connection with two armed bank robberies, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department. The Honorable Jason Park of the D.C. Superior Court sentenced Stubblefield to 15 years in prison for each bank robbery and 22 months in prison for felony threats, with each of those sentences to run concurrently. As part of the sentence, Judge Park ordered five years of supervised release and a $300 payment to the fund established by the Victims of Violent Crime Compensation Act. According to the government’s evidence, Stubblefield threatened to blow up bank tellers at a Truist Bank branch located at Dupont Circle and escaped with $10,000. On August 3, 2023, a jury found Stubblefield guilty of robbery while armed and felony threats in connection with a bank robbery he committed on October 20, 2022. Following that conviction, Stubblefield pleaded guilty to robbery for a second bank robbery. In that offense, on November 15, 2022, Stubblefield robbed the Peoples Bank located north of Dupont Circle. He entered the Peoples Bank around noon disguised with a hat, mask, sunglasses, and dark clothing. He threatened to shoot the bank tellers, putting them in fear for their lives, and demanded money. He left moments later with $7,370 in cash. Stubblefield was arrested on November 15, 2022, and remains in custody. In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of the officers and detectives with the Metropolitan Police Department who investigated the case, as well as members of the prosecution team. They thanked the FBI’s Washington Field Office and Laboratory for providing valuable assistance. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including: Supervisory Litigation Technology Specialist Leif Hickling, Litigation Technology Specialist Charlie Bruce, and Paralegal Specialists Debra McPherson and Antoinette Sakamsa, with valuable assistance from AUSAs Paul Courtney and Jessica Ans. Finally, they thanked Assistant U.S. Attorneys Carlos A. Valdivia and Alec Levy who prosecuted the case.


title: San Antonio Couple Sentenced for Claiming Deceased Mother’s Federal Benefits

component: USAO - Texas, Western

body_text: SAN ANTONIO – A San Antonio couple was sentenced in federal court today to five years probation and ordered to pay $218,730.60 in restitution for theft of government funds. According to court documents, Tracy Stephanie Grubbs, 59, failed to report her mother’s death to the Social Security Administration and the Department of Veterans Affairs. From January 2011 to December 2018, Grubbs received and negotiated SSA and VA benefit payments intended for her deceased mother. Grubbs would write checks to her husband Gary Lewis Grubbs, 70, who would negotiate the check and use the funds for his own benefit. Both defendants received the same penalty. “Long term fraud deprives government agencies like the Social Security Administration and the VA of valuable resources,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “My office, along with our law enforcement partners, will continuously pursue these cases to guard vital resources for Americans in need.” “This sentence holds Ms. Grubbs accountable for deliberately using her deceased mother’s Social Security benefits for years until SSA OIG uncovered a death certificate for her mother; theft of government funds is a federal crime, which we will always aggressively pursue,” said Inspector General Gail S. Ennis for SSA. “I want to thank the VA OIG for its efforts in this investigation and the U.S. Attorney’s Office for prosecuting this case.” “This sentence sends a clear message that those who would defraud VA programs intended for deserving veterans and their families will be held accountable,” said Special Agent in Charge Kris Raper for the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “The VA OIG is grateful to the U.S. Attorney’s Office and our law enforcement partners for their efforts to achieve justice in this case.” The SSA OIG and VA OIG investigated the case. Assistant U.S. Attorney Tiffany Miller prosecuted the case. ###


title: El Paso Man Sentenced to 7 Years in Prison for Operating $9 Million Ponzi Scheme Disguised as Crypto Investment Firm

component: Federal Bureau of Investigation (FBI)

body_text: EL PASO, Texas – An El Paso man was sentenced in a federal court in El Paso to 84 months in prison for wire fraud. According to court documents, Abner Tinoco, 27, operated a Ponzi scheme through his business by soliciting millions of dollars of investments from clients and claiming he would invest their money into funds dealing with cryptocurrency and foreign exchange markets. Out of approximately $9 million worth of investments deposited into his business accounts, Tinoco spent more than half on personal expenses to include luxury cars, private jets, real estate and jewelry. Tinoco furthered the deception by providing some of the misappropriated funds as profits to his clients. “This defendant manufactured a predatory scheme, investing less than half a percent of funds from over a dozen victims who trusted him with millions of dollars in investments,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “We will continue to strongly prosecute rapacious fraudsters who take advantage of unsuspecting victims while also holding the defendants responsible for those victims’ lost funds.” “The defendant orchestrated an elaborate cryptocurrency investment fraud scheme that caused extensive financial harm to unsuspecting victims,” said Special Agent in Charge John S. Morales for the FBI El Paso Field Office. “The FBI El Paso’s Complex Financial Crimes Task Force will continue to investigate and seek justice for individuals who fall victim to criminals who cheat and lie their way into victims’ pockets for the sole purpose of taking their hard-earned income for their own personal gain.” In a separate civil case stemming from the above scheme, the Commodities Futures Trading Commission (CFTC) secured a civil consent decree against Tinoco and his business, imposing a ban relating to trading activities. The Department of Justice will work to achieve additional restitution for victims of Tinoco’s scheme. A restitution hearing is scheduled to be held in 2024. The FBI investigated the case. Assistant U.S. Attorneys Shane Romero and Chris Skillern prosecuted the case. ###


title: Two Men Sentenced for International Money Laundering and Bank Fraud Scheme

component: USAO - Massachusetts

body_text: BOSTON – Two Nigerian men were sentenced today in federal court in Boston for their roles in an expansive money laundering and bank fraud scheme that resulted in millions in losses from pandemic fraud, romance scams and other online scams. Osakpamwan Henry Omoruyi, 37, and Osaretin Godspower Omoruyi, 36, both previously of Canton, were sentenced by U.S. District Court Judge Patti B. Saris to 78 months and 72 months, respectively. In June 2023, the defendants were each convicted following an eight-day jury trial of one count of bank fraud, one count of bank fraud conspiracy and one count of money laundering conspiracy. “This case demonstrates that if you prey on the elderly and the vulnerable through on-line scams, you can rest assured that federal law enforcement will invest the resources to track you down and hold you accountable. These types of romance fraud schemes cause both huge financial and emotional harm,” said Acting United States Attorney Joshua S. Levy. “What these men did is disgraceful. They cashed in on a public health crisis, stole millions from hard-working Americans who were looking for love online, struggling to feed their families, and keep their businesses afloat, and sent that money to their friends overseas,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “It is critical that every dollar spent in pandemic relief goes to those who need it, not to greedy con artists trying to cheat the system. Anyone who tries to follow in their footsteps will soon find themselves in federal court to answer for their crimes.” “Osakpamwan Henry Omoruyi and Osaretin Godspower Omoruyi conspired with others to launder the proceeds of multiple illegal schemes, including the defrauding of multiple state workforce agencies by obtaining Pandemic Unemployment Assistance unemployment benefits using stolen identities. We will continue to work with our law enforcement partners to safeguard Department of Labor programs designed to help those that struggled during the COVID-19 pandemic,” said Special Agent-in-Charge Jonathan Mellone, U.S. Department of Labor, Office of Inspector General. “These scammers strategically targeted and swindled unsuspecting victims,” said Michael J. Krol, Special Agent in Charge of Homeland Security Investigations (HSI) New England. “Together, with our law enforcement partners, HSI is dedicated to putting a stop to these criminal acts, which inflict financial ruin on so many. Romance scams are a pervasive threat, and with our partners, HSI special agents will ensure that the transnational criminal organizations responsible for such harm are prosecuted.” “Today’s sentencing sends a strong message: the Diplomatic Security Service is committed to making sure that those who commit fraud schemes, and use false documents to deceive and defraud their victims, face consequences for their criminal actions,” said Matthew O’Brien, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service (DSS) Boston Field Office. “Our strong relationship with the U.S. Attorney’s Office and other law enforcement agencies around the world continues to be essential in the pursuit of justice.” The defendants opened multiple bank accounts in the names of a fake company and fake people using falsified foreign passports. The defendants then used those accounts to receive the proceeds from various frauds perpetrated by their co-conspirators, including pandemic unemployment assistance fraud, romance scams and other online scams. The majority of the fraud proceeds came from romance scams, which occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and steal from the victim. In total, between 2019 and 2021, the bank accounts involved in the scheme received more than $2 million in fraud proceeds, most of which was transferred to overseas bank accounts controlled by the defendants and their co-conspirators. Acting U.S. Attorney Levy, FBI SAC Cohen, DOL-OIG SAC Mellone, HSI SAC Krol, and DSS SAC O’Brien made the announcement. Assistant U.S. Attorneys Christopher J. Markham and Benjamin A. Saltzman of the Securities, Financial & Cyber Fraud Unit prosecuted the case. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Schenectady Man Sentenced to 120 Months for Cocaine Conspiracy

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Jeffrey C. Civitello, Sr., age 52, of Schenectady, New York, was sentenced today to 120 months in prison for conspiring to traffic about 15 kilograms of cocaine in March and April 2021. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement. Civitello Sr. and his son Jeffrey C. Civitello Jr., both of Schenectady, and Richard D. Sinde, of Fort Lee, New Jersey, were convicted on all counts following an 8-day trial in April 2023. United States Attorney Carla Freedman stated: “Today’s sentencing will keep Schenectady safe from someone who worked with his own son and experienced drug traffickers from the New York City area to transport large amounts of cocaine to Schenectady. I commend the DEA and its task force members for bringing this sophisticated drug dealer to justice.” DEA Special Agent in Charge Frank Tarentino stated: “Jeffrey Civitello Sr. and his five-man conspiracy used a sophisticated trafficking ring to push cocaine throughout the streets of Schenectady. This sentencing is a prime example of how the proximity to New York City helps fuel drug trafficking organizations throughout the state and the northeast. New York City is the finance capital of the world to include drug cartels using it as a transit hub for poison. I applaud our law enforcement partners for their steadfast efforts to bring Civitello Sr. and his co-conspirators to justice.” The trial evidence demonstrated a conspiracy between five men: the three defendants on trial, as well as Christopher J. Kelly, of Brooklyn, New York, and Robert J. Ingrao, of Lodi, New Jersey. As part of the conspiracy, Kelly delivered 3 kilograms of cocaine to Civitello Sr. in Schenectady on March 29, and Kelly and Sinde an additional 3 kilograms to Civitello Sr. on March 31. Also on March 31, the Civitellos ordered more cocaine and suggested that Kelly use a 2018 Jeep Grand Cherokee owned by Civitello Jr., which contained, in its trunk, a sophisticated, hidden compartment, also known as a “trap.” Unbeknownst to the conspirators, the DEA had placed a court-authorized tracker on the Jeep several months prior, as part of an investigation of Civitello Jr. Sinde then drove the Jeep from Schenectady to Fort Lee, and the following evening met Kelly in Breezy Point, New York, on the Rockaway Peninsula, where Kelly and Sinde loaded up the Jeep’s hidden compartment with 9 kilograms of cocaine to be delivered the following day to the Civitellos in Schenectady. The following day, on April 2, 2021, Ingrao went to Sinde’s house and got into the blue Jeep, driving it north on Interstate 87. A New York State Police Trooper, at the DEA’s request, conducted a stop on Ingrao in Greene County. The Trooper then located 9 kilograms of cocaine in the Jeep’s hidden compartment. As part of the conspiracy, the Civitellos were arranging for a “trap” to be installed in another Jeep used by Sinde, so that Sinde could continue to traffic drugs to the Civitellos after Kelly went to state prison for a prior cocaine case; they abandoned that plan following the seizure of 9 kilograms of cocaine from Civitello Jr.’s Jeep on April 2. United States District Judge Mae A. D’Agostino also ordered Civitello Sr. to serve a 5-year term of supervised release and to forfeit $240,000. In 1999, Civitello Sr. was convicted in federal court of conspiring to distribute cocaine and money laundering, and received a 72-month term of imprisonment. Civitello Jr. is scheduled to be sentenced on December 12, and Sinde is scheduled for sentencing on December 19. On July 28, 2023, Judge D’Agostino sentenced Ingrao to 37 months in prison, with 3 years of supervision to follow. On August 21, she sentenced Kelly to 41 months in prison, to be followed by a 4-year term of supervised release, and to pay a $25,000 fine. This case was investigated by the DEA’s Capital District Drug Enforcement Task Force, which includes DEA Special Agents and investigators from state and local police agencies, including the Saratoga Springs Police Department, the Saratoga County Sheriff’s Office, the Washington County Sheriff’s Office, the Columbia County Sheriff’s Office, and the New York State Police. Assistant U.S. Attorneys Michael Barnett and Dustin C. Segovia are prosecuting this case.


title: Schenectady Man Pleads Guilty to Marijuana and Firearms Offenses

body_text: ALBANY, NEW YORK – Jeffrey C. Civitello Jr., age 24, of Schenectady, New York, pled guilty today to conspiring to traffic more than 100 kilograms of marijuana, and to possessing two firearms in furtherance of a drug trafficking crime. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement. Civitello Jr. admitted that from 2019 to 2021, he worked with others to acquire and sell more than 100 kilograms of marijuana. On October 21, 2021, the DEA executed a federal search warrant on Civitello’s penthouse apartment residence in Schenectady. Investigators located approximately 75 pounds of marijuana, mostly packaged in 1-pound bags, which Civitello Jr. intended to sell. Additionally, they found $407,545 in cash and a 14-karat Miami Cuban chain, all of which were proceeds of drug trafficking. In Civitello Jr.’s bedroom, investigators located a loaded Taurus Judge Public Defender revolver and a Smith and Wesson M&P 15-22 rifle loaded with a high-capacity magazine containing numerous .22 caliber rounds, including a round in the chamber. In pleading guilty, Civitello Jr. admitted that he possessed these firearms to protect himself in the event that someone attempted to enter his apartment and steal his marijuana or his drug proceeds. Sentencing is scheduled for March 5, 2024 before United States District Judge Mae A. D’Agostino. The parties have jointly recommended to Judge D’Agostino that Civitello Jr. receive a 10-year term of imprisonment, with half of the term running consecutive to the term of imprisonment to be imposed in a separate cocaine case in which Civitello Jr. faces at least 10 years in prison after being convicted at trial. Civitello Jr. has already forfeited the $407,545 in cash found in his safe, and has also agreed to forfeit the firearms, ammunition and the Miami Cuban chain, and to entry of a $250,000 money judgment against him. This case was investigated by the DEA’s Capital District Drug Enforcement Task Force, which includes DEA Special Agents and investigators from state and local police agencies, including the Saratoga Springs Police Department, the Saratoga County Sheriff’s Office, the Washington County Sheriff’s Office, the Columbia County Sheriff’s Office, and the New York State Police. Assistant U.S. Attorney Michael Barnett is prosecuting this case.


title: Repeat Sex Offender Pleads Guilty, Sentenced To 27.5 Years In Federal Prison

component: USAO - Michigan, Western

body_text: GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that repeat sex offender Justin Lee Sloothaak, of Holland, Michigan, age 32, was sentenced to 27 years and 6 months in federal prison following Sloothaak’s guilty plea to sexually exploiting a child. “The sexual exploitation of children is inexcusable and intolerable,” said U.S. Attorney Totten . “Sexual predators who commit heinous crimes against children inflict lifelong damage in the lives of their young victims. My office is committed to working with law enforcement partners to ensure that sex offenders who assault our children are held fully accountable.” Investigators from the Ottawa County Sheriff’s Office and the Federal Bureau of Investigation uncovered evidence that Sloothaak sexually assaulted a child from West Michigan in 2022. Sloothaak filmed the assault using his smartphone and included the video in his collection of other pornographic videos featuring children. At the time Sloothaak committed the offense, he was on parole following his 2015 sexual assault of another child. While explaining the reasons for Sloothaak’s lengthy sentence, United States District Judge Jane M. Beckering remarked on the seriousness of Sloothaak’s crime, observing, “This is, absent murder, probably the most traumatizing thing you can do to a human being, especially a minor.” “The FBI is deeply committed to protecting the most vulnerable members of our society, particularly our children, and bringing predators like the defendant to justice,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan . “The sentence in this case reflects the gravity of the crimes committed, which are particularly distressing given the defendant’s repeated attempts to harm and exploit minors. I want to express my gratitude to the dedicated law enforcement partners of the West Michigan Based Child Exploitation Task Force (WEBCHEX) for their invaluable assistance in securing some measure of justice for the victim.” This case arose from 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 the U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit https://www.justice.gov/psc . ###


title: U.S. Attorney’s Office Reaches Settlement with Kansas Nail Salon After Complaint of Disability Discrimination

component: USAO - Kansas

body_text: KANSAS CITY, KAN. – The U.S. Attorney’s Office has reached a settlement with a Kansas nail salon to resolve allegations that the salon discriminated against an individual with a disability in violation of the Americans with Disabilities Act of 1990 (ADA), U.S. Attorney Kate E. Brubacher announced today. Under the settlement, Pretty Nails, Inc. of Shawnee agrees to adopt a non-discrimination policy and post it in a conspicuous place, to train current and future employees on the requirements of Title III of the ADA, and to pay $1,500 in damages to the individual complainant in this matter. Title III prohibits disability discrimination in places of public accommodation, like nail salons. The settlement resolves allegations that Pretty Nails discriminated against a woman with cerebral palsy, who uses a motorized wheelchair, by refusing to provide nail services. “What was supposed to be a fun outing to get her nails done, instead turned into an ordeal that left the complainant in this case upset and embarrassed,” said U.S. Attorney Kate E. Brubacher. “We at the U.S. Justice Department hope to spare people with disabilities from these kinds of painful experiences by educating business owners and their employees about disability rights laws.” The Department of Justice’s enforcement efforts under the ADA seek equal opportunity and dignity in all aspects of life, including access to public accommodations such as nail salons. This settlement agreement is the fourth agreement that the Department of Justice has reached with a nail salon through its U.S. Attorney Program for ADA Enforcement, and the first in the District of Kansas. In June 2021, the U.S. Attorney’s Office for the Middle District of North Carolina entered a settlement agreement resolving an allegation that a nail salon in Durham, North Carolina, refused to provide services to an individual with HIV. In June 2022, the U.S. Attorney’s Office for the Eastern District of Louisiana reached a settlement agreement with a nail salon in Harahan, Louisiana, to resolve an allegation that an individual was refused services because of the inability to transfer out of their wheelchair. And in February 2023, the U.S. Attorney’s Office for the District of New Jersey entered a settlement agreement with a nail salon in Ocean County, New Jersey, to resolve allegations that the salon discriminates against individuals with mobility impairments. Individuals who believe they may have been victims of discrimination may file a complaint with the U.S Attorney’s Office Civil Rights Unit at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint . Additional information about the ADA can be found at www.ada.gov, or by calling the Department of Justice’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TDD). The government is represented by the Civil Rights Coordinator, Andrea L. Taylor of the U.S. Attorney’s Office in Kansas City, Kansas. ###


title: Manchester, New Hampshire Man Pleads Guilty to Interstate Transportation of Stolen Check

component: USAO - Vermont

body_text: Burlington, Vermont – The United States Attorney’s Office stated that yesterday Nicholas Melanson, 41, of Manchester, New Hampshire, pleaded guilty in United States District Court for the District of Vermont to one count of interstate transportation of a stolen check. United States District Judge Christina Reiss accepted Melanson’s plea and scheduled his sentencing hearing for April 2, 2024. During the plea hearing, Melanson admitted to traveling from New Hampshire, where he lived and worked, to the residence of an elderly woman in Windsor, Vermont on five occasions between May 11 and May 19, 2022. Melanson was directed to transport the elderly woman from her Windsor home to one or more banks to conduct transactions, and to obtain checks from her. Two of these checks were payable to Melanson, each in the amount of $25,000. Melanson deposited these checks into his bank accounts in New Hampshire, though ultimately the payments were stopped and any deposits were reversed. Based on Melanson’s personal interactions with the elderly woman, he made various observations about her cognitive limitations, including that he believed she was not able to make informed decisions about large financial transactions without instruction from someone else. The attempted or completed financial transactions that Melanson facilitated or conducted for the elderly woman totaled at least $392,000, though many of the transactions were ultimately stopped or reversed. Melanson was arrested in connection with this matter on September 29, 2022. He was released on conditions that day and remains on release pending sentencing. Melanson faces a maximum possible penalty of ten years of imprisonment, three years of supervised release, and fines of up to $250,000. The actual sentence will be determined by Judge Reiss with reference to the Federal Sentencing Guidelines and the United States Code. United States Attorney Nikolas P. Kerest commended the investigatory efforts of the United States Postal Inspection Service, the United States Secret Service, and the Windsor, Vermont Police Department, and he further thanked the Windsor Police Department for its efforts on behalf of the victim in this matter. Melanson is represented in this matter by Assistant Federal Public Defender Mary Nerino. Assistant United States Attorneys Nicole Cate and Michael Drescher have handled the case for the government. Since being signed into law, the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA), the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. Please visit: http://www.justice.gov/elderjustice/ .


title: Four Accused of Fraudulently Registering Vehicles in Missouri

body_text: ST. LOUIS –Four people have been indicted in U.S. District Court in St. Louis and accused of fraudulently registering vehicles in Missouri, including three former employees of driver license offices. Gary Wilds, 46, Megan Leone, 40, Michelle Boyer, 51, and Ashlyn Graeff, 38, were each indicted by a grand jury October 25 with one count of conspiracy to commit mail and wire fraud. Wilds was also indicted on four counts of wire fraud, four counts of aggravated identity theft and six counts of making a false statement. Leone also faces four counts of wire fraud and two counts of making a false statement. Boyer faces five counts of wire fraud and Graeff faces five counts of wire fraud and four counts of making a false statement. Wilds was arrested and appeared in court Tuesday, where he pleaded not guilty to the charges. Boyer, Graeff and Leone worked for contract license offices, the indictment says. The indictment accuses Wilds of paying them up to $100 for each vehicle that they fraudulently registered via their access to Missouri Department of Revenue computers. Wilds provided his customers’ names, license plate numbers, VIN number and motor vehicle title number and the employees falsely represented in the DOR database that they had verified emissions inspections, safety inspections, the payment of personal property taxes and proof of insurance, the indictment says. Wilds is also accused of using forged and fraudulent forms seeking an exemption for Missouri businesses seeking to register trucks weighing more than 24,000 pounds or trailers. Wilds would keep the sales taxes that vehicle owners had paid him, the indictment says, as well as a nominal fee that he charged owners for handling the paperwork. Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. The conspiracy and wire fraud charges each carry a potential penalty of up to 20 years in prison, a $250,000 fine, or both prison and a fine. The charge of making a false statement carries a potential penalty of up to five years in prison, a $250,000 fine, or both. Each aggravated identity theft charge is punishable by two years in prison, consecutive to any other charge. The case was investigated by the Missouri Department of Revenue and the FBI. Assistant U.S. Attorney Tracy Berry is prosecuting the case.


title: Sex Offender Pleads Guilty to Child Exploitation Charge

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SHELDON THOMSON, 35, last residing in Norwich, waived her right to be indicted and pleaded guilty today in New Haven federal court to possession of child pornography. According to court documents and statements made in court, in 2007, Thomson, who now identifies as female, was convicted in state court of sexual assault in the first degree, involving sexual intercourse with a person under the age of 13, and of risk of injury to a child. She was released from prison in November 2015 and began serving a term of probation. In May 2022, Thomson’s state probation officer seized multiple cellphones, a tablet, and a storage card from Thomson, her vehicle, and her residence. Analysis of the seized devices revealed more than 100 images and videos depicting the sexual abuse of children, including prepubescent children. Sentencing is scheduled for January 23, 2024, at which time Thomson faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of 20 years. The penalties in this matter are enhanced based on Thomson’s prior convictions for sexual assault in the first degree and risk of injury to a minor. This matter has been investigated by Homeland Security Investigations (HSI) with the assistance of the State of Connecticut Office of Adult Probation. The case is being prosecuted by Assistant U.S. Attorney Daniel E. Cummings. This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc . To report cases of child exploitation, please visit www.cybertipline.com .


title: Philadelphia Man Sentenced To 121 Months In Prison For Drug Trafficking Offense

component: USAO - Pennsylvania, Middle

body_text: According to U.S. Attorney Gerard M. Karam, Speedwell was part of a large-scale drug trafficking operation moving quantities of methamphetamine from Philadelphia to Altoona, Pennsylvania. Law enforcement conducted a coordinated traffic stop on October 7, 2019, in York County, in which Speedwell was a passenger of the vehicle and found in possession of more than 500 grams of methamphetamine. The matter was investigated by the Pennsylvania State Police, the Pennsylvania Office of Attorney General, and the Drug Enforcement Administration. Assistant U.S. Attorney Scott R. Ford prosecuted the case. This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. # # #


title: United States Recovers $2.4 Million Obtained In Business Email Compromise

component: USAO - Florida, Middle

body_text: Orlando, Florida – United States Attorney Roger B. Handberg announces that the United States has civilly forfeited $2,462,000 in proceeds obtained from a wire fraud scheme that involved the takeover of a business email account. The forfeited funds are being returned to the fraud victim. According to court documents, the victim, Company 1 (“C1”), sells comprehensive lead frame products and material solutions to the semiconductor packaging industry. In April 2022, C1 received an email requesting a change of payment information from someone it believed worked at its business partner, Company 2 (“C2”), a heavy equipment manufacturer from which C1 regularly purchases lead frame equipment. The email came from what appeared to be C2’s true email address. The email explained that C2 was unable to accept payment into its regular account due to a “fiscal year update,” and instead, asked C1 to make future payments to a different account. This email was a fraudulent communication intended to mislead C1 into unwittingly transferring funds to a criminal entity, rather than C2. As a result of the fraudulent communication, C1 wired $2,462,000 million to the account identified by the fraudster. After realizing that C2 had not sent the email requesting the change, C1 reported the fraud to its bank, which ultimately caused the $2,462,000 million to be frozen. Agents from the United States Secret Service (USSS) then tracked down the sole signatory of the account that received the funds, S.T., who informed USSS agents that he has never done business with C1 or C2 and he did not believe he was the rightful owner of the funds. S.T. claimed that in approximately January 2022, he met a group of individuals at a Bitcoin conference and agreed to contract his services to the group. S.T. provided his banking information to this group in order to receive payment for the work he was going to perform. S.T. stated that he communicated with the group primarily though the WeChat messaging application, and that when he contacted them about the funds, they denied any fraud-related activity. Because C1 and its bank acted quickly, law enforcement was able to seize and forfeit the full amount transferred by C1. United States Attorney Handberg has requested and received permission from the Department of Justice’s Money Laundering and Asset Forfeiture Section (MLARS) to remit the forfeited funds back to the victim. MLARS administers the Department’s Asset Forfeiture Program victim compensation process to ensure forfeited funds are returned to victims. U.S. Attorney Handberg noted that “civil forfeiture is an important tool frequently used by federal law enforcement to benefit victims.” In fact, in fiscal year 2023, the Middle District of Florida obtained permission to use almost $44 million in forfeited funds to compensate crime victims. Since 2000, more than $11 billion in forfeited funds has been returned to victims through federal forfeiture. In many cases like this one, criminal forfeiture is not an option because law enforcement is not able to identify the perpetrator even after the criminal proceeds are recovered. U.S. Attorney Handberg thanks MLARS for its assistance in facilitating the distribution in this matter. “This is another example of how fraudsters are getting more sophisticated with their schemes to steal money,” said Caroline O’Brien Buster, Special Agent in Charge with the Orlando Field Office. “With the cooperation of our partners in the business community, we were able to quickly freeze the funds and assist with returning them to the victim. The United States Secret Service will continue to investigate these and other types of financial fraud in our community and around the nation.” Business Email Compromise (BEC) is a sophisticated fraud scheme targeting businesses that use wire transfers as a form of payment. The BEC scheme affects large global corporations, governments, and individuals, with current global daily losses estimated at approximately $8 million. Criminals compromise legitimate business email accounts through various hacking schemes, including social engineering and the use of malware. Once a business email account is compromised, a fraudulent email is sent directing the recipient of the email to unwittingly transfer funds to an illicit account. Alternatively, they create “spoofed” email domain names to trick people into thinking they know the sender. An email domain name is the part of an email address that comes after the “@” symbol. In email spoofing, one character in an email address is often changed or missing, thereby tricking the recipient. Criminals obtain and use privileged information to convince BEC email recipients that the transfer instructions are legitimate. To avoid becoming the victim of a BEC scheme, verify email addresses are accurate when checking mail on a cellphone or other mobile device before you open any attachments or follow any instructions and never make any payment changes without verifying with the intended recipient by phone or in person. If you think you have been a victim of a BEC scheme, 1) immediately contact your bank to request a recall or reversal as well as a Hold Harmless Letter or Letter of Indemnity; and 2) file a detailed complaint with the Internet Crime Complaint Center at www.ic3.gov . The Internet Crime Complaint Center, is run by the FBI and serves as the country’s hub for reporting cybercrime. Visit www.ic3.gov for updated information regarding BEC trends as well as other cyber fraud schemes. This case was investigated by the United States Secret Service. It was prosecuted by Assistant United States Attorney Jennifer M. Harrington.


title: Walkertown Man Sentenced to 46 Months for Distributing a Video Depicting Animal Cruelty

component: USAO - North Carolina, Middle

body_text: GREENSBORO – TIMOTHY LEWIS BLACKMON was sentenced today to 46 months in prison after pleading guilty to distributing an obscene video depicting animal cruelty after a multi-agency investigation, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC). According to court records, BLACKMON, age 45, was charged with one count of possession of child pornography and one count of knowingly selling, marking, advertising, exchanging, and distributing an obscene video depicting an animal cruelty video on July 25, 2022. In March 2022, investigators received an anonymous tip alerting them of an individual in Forsyth County selling videos of himself engaging in animal cruelty on the application “Kik.” A search warrant for BLACKMON’s mobile devices revealed multiple videos of BLACKMON engaging in animal cruelty. BLACKMON was sentenced today to a 46-month term of imprisonment followed by 3 years of supervised release by the Honorable Catherine C. Eagles, Chief United States District Judge in the United States District Court for the MDNC. In addition to prison time, BLACKMON was ordered to pay $3,000 in restitution to the victims of the charges listed in the indictment. The case was investigated by Homeland Security Investigations, the Forsyth County Sheriff’s Office and the Forsyth County District Attorney’s Office, and the case was prosecuted by Assistant United States Attorney Nicole DuPré. ###


title: Perry County Man Sentenced To 121 Months’ Imprisonment For Receiving Child Pornography

body_text: HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 30, 2023, Todd Franklin Stydinger, age 42, of Perry County, Pennsylvania, was sentenced by United States District Court Judge Christopher C. Conner to 121 months’ imprisonment for receiving child pornography. According to United States Attorney Gerard M. Karam, Stydinger previously pleaded guilty to receiving images and videos of child pornography. A search warrant was executed on Stydinger’s residence, and 13 electronic devices were seized. It was found that Stydinger downloaded 198 images and 73 videos depicting child pornography using multiple platforms. Judge Conner also ordered Stydinger to serve 15 years on supervised release after the conclusion of his prison sentence and ordered Stydinger to pay approximately $35,000 in restitution and assessments. The matter was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant United States Attorney Christian T. Haugsby prosecuted the case. 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.usdoj.gov/psc . # # #