title: Long Island Man Convicted At Trial Of Participating In Multimillion-Dollar Cryptocurrency-Related Crimes

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that EUGENE WILLIAM AUSTIN, JR., a/k/a “Hugh Austin” (“AUSTIN”) was convicted Tuesday, September 24, 2024, of three criminal counts stemming from his participation in a conspiracy to commit wire fraud, money laundering, and the interstate transportation of stolen property. The defendant and his son, BRANDON AUSTIN (“BRANDON”), were responsible for defrauding numerous victims across the country of millions of dollars. AUSTIN was convicted after a jury trial before U.S. District Judge P. Kevin Castel. The defendant’s son, BRANDON, previously pled guilty to conspiracy to commit money laundering and was sentenced principally to 4 years in prison. U.S. Attorney Damian Williams said: “A unanimous jury has found that Hugh Austin engaged in a yearslong fraud and money laundering scheme. Austin’s scheming caused millions of dollars of losses. Austin even conspired with his own son to rip off his victims. Thanks to the hard work of the career prosecutors of this Office and our law enforcement partners, Austin’s crime spree has come to an end, and he will be held accountable for his conduct.” As reflected in the Indictment, public filings, and the evidence presented at trial: AUSTIN participated in a scheme with his son BRANDON and others to steal money from entrepreneurs, investors, and other victims by fraudulently offering to, among other things: serve as a broker for sales of large quantities of cryptocurrency; provide short-term investments in cryptocurrency for purportedly high returns; and secure investors for startups and other small businesses from their purported network of high-net-worth individuals. AUSTIN also frequently sought personal loans from friends and acquaintances in connection with AUSTIN’s purported cryptocurrency and investment businesses, falsely promising to pay lenders back with interest. In each instance, investors and lenders lost their money, and AUSTIN and BRANDON frequently spent investors’ funds on personal expenses, including airline travel, luxury hotels, restaurants, shopping, transfers of money to relatives, as well as nominal payments to victims to prolong the scheme. Over the course of the scheme, AUSTIN and BRANDON have caused millions of dollars in losses to numerous victims all over the country. Below are several examples of victims defrauded by AUSTIN and BRANDON. In or about August 2018, AUSTIN and BRANDON fraudulently induced a California-based investment firm to send an interstate wire transfer of approximately $5 million to a Manhattan-based attorney for the purported purchase of cryptocurrency, which was never provided to the victim. In or about September 2018, AUSTIN and BRANDON fraudulently induced a cryptocurrency start-up company to send an interstate wire transfer of approximately $100,000 as a short-term loan for a purported cryptocurrency transaction; instead of using the funds as promised, AUSTIN and BRANDON used the money to fund their lifestyle. In or about June 2020, AUSTIN and BRANDON laundered approximately $567,000 that had been sent via an interstate wire transfer to the trust account of a New York-based real estate attorney for a purported cryptocurrency transaction. In or about October 2021, AUSTIN and BRANDON stole approximately $528,000 that had been sent via an interstate wire transfer to the bank account of a Manhattan-based company for the purported purchase of Bitcoin. * * * AUSTIN, 62, of Port Jefferson, New York, was convicted by a jury of one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 year in prison; one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison; and one count of conspiracy to receive stolen property, which carries a maximum sentence of five years in prison. AUSTIN will be sentenced before Judge Castel on February 20, 2025. The maximum potential sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Williams praised the outstanding investigative work of Homeland Security Investigations. The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Andrew Chan, Steven Kochevar, Matthew Weinberg, and Olga I. Zverovich are in charge of the prosecution, with assistance from Paralegal Specialists Chanel-Ashley Foster, Frank Mastroianni, and Christine Woods.


title: Convicted CBP Officer Sentenced in El Paso for Use of Excessive Force

component: USAO - Texas, Western

body_text: EL PASO, Texas – A former U.S. Customs and Border Protection (CBP) Officer was sentenced to 24 months in federal prison for two counts of deprivation of rights under color of law and one count of the falsification of a document in a federal investigation. According to court documents, documents and evidence presented at trial, Miguel Angel Delgado Jr., 41, used excessive force in two incidents while he was on duty at the Bridge of Americas Port of Entry between October 2019 and June 2020. As a result of Delgado’s unlawful use of force, the victims suffered bodily injury. Following one of the incidents, Delgado submitted a CBP Incident Log Report, in which he falsely reported the occurrence. U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement. The Department of Homeland Security Office of Inspector General and the CBP Office of Professional Responsibility investigated the case. Assistant U.S. Attorneys Patricia Aguayo, Sarah Valenzuela and Debra Kanof prosecuted the case. ###


title: Acadia Healthcare Company Inc. to Pay $19.85M to Settle Allegations Relating to Medically Unnecessary Inpatient Behavioral Health Services

component: USAO - Florida, Middle

body_text: Note: View the settlement here. Tampa, FL – Acadia Healthcare Company Inc., a Delaware corporation with its principal place of business in Franklin, Tennessee, has agreed to resolve allegations that it violated the False Claims Act and related state statutes by knowingly billing for medically unnecessary inpatient behavioral health services or for services that did not meet federal and state regulations. Acadia Healthcare Company owns and operates inpatient behavioral health facilities throughout the United States, including The Pavilion at HealthPark LLC, doing business as Park Royal Hospital in Ft. Myers, Florida; Riverwoods Behavioral Health LLC, doing business as Lakeview Behavioral Health in Norcross, Georgia, and as Riverwoods Behavioral Health System in Riverdale, Georgia; Ten Broeck Tampa LLC, doing business as North Tampa Behavioral Health in Wesley Chapel, Florida; PHC of Michigan LLC, doing business as Harbor Oaks Hospital in New Baltimore, Michigan; and Seven Hills Hospital LLC, doing business as Seven Hills Hospital in Henderson, Nevada (collectively, Acadia). The United States contended that, between 2014 and 2017, Acadia knowingly submitted false claims for payment to Medicare, Medicaid and TRICARE for inpatient behavioral health services that were not reasonable or medically necessary. In particular, the United States contended that Acadia admitted beneficiaries who were not eligible for inpatient treatment and failed to properly discharge beneficiaries when they no longer needed inpatient treatment and had improper and excessive lengths of stay. The United States further alleged that Acadia knowingly failed to provide adequate staffing, training and/or supervision of staff, which resulted in assaults, elopements, suicides and other harm resulting from these staffing failures. In addition, Acadia allegedly failed to provide inpatient acute care in accord with federal and state regulations, including, but not limited to, by failing to provide active treatment, to develop and/or update individualized assessments and treatment plans, to provide adequate discharge planning and to provide required individual and group therapy. Under the settlement agreement, Acadia will pay $16,663,918 to the United States to resolve its liability under the False Claims Act for its allegedly false Medicare, Medicaid and TRICARE billings. The Medicaid program is jointly funded by the states and the federal government, and pursuant to separate settlement agreements, Acadia will pay an additional $3,186,082 to Florida, Georgia, Michigan and Nevada to resolve their state law claims against Acadia. “This settlement demonstrates the Justice Department’s commitment to ensuring that federal healthcare programs pay only for services that are needed and properly provided,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “It is particularly important that health care providers satisfy these requirements when providing services to a vulnerable patient population, such as residents of an inpatient behavioral health facility.” “Federal health care programs rely upon the honesty and credibility of participating providers,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “The Justice Department will hold accountable those who seek to exploit these programs for personal gain, jeopardizing the health of patients.” “Medical providers who participate in federally funded health care programs must follow the law when billing Medicare, Medicaid and Tricare,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “This settlement illustrates HHS-OIG’s commitment to protecting the integrity of these taxpayer-funded programs and the well-being of enrollees seeking treatment. Working closely with the United States Attorney’s Office and other law enforcement partners, we will continue to thoroughly investigate such fraudulent billing schemes.” “Billing TRICARE for medically unnecessary inpatient behavioral health services or for services that did not meet federal and state regulations impacts our ability to reimburse providers in a timely manner for care that is needed to keep our military ready to defend the nation,” said Rear Admiral Matthew Case of the U.S. Navy and Acting Assistant Director for Health Care Administration for the Defense Health Agency. “We thank our state and federal partners for their work on this case, and the whistleblowers who came forward for their bravery. As a result, we are able to continue delivering one of the most comprehensive and affordable health benefits available to any American.” The settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Franka Tirado, Brian Snyder and Jamie Thompson, all former employees of Acadia. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned U.S. ex rel. Tirado, et al. v. Park Royal Hospital et al. , Case No. 2:17-cv-201-FtM-99 (MDFL), and U.S. ex rel. Thompson v. Acadia Healthcare Company Inc., et al. , Case No. 2:18-cv-543-FtM-38CM (MDFL). The whistleblower share of the federal portion of the settlement will be $3,166,144.42. The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and U.S. Attorney’s Office for the Middle District of Florida, as well as the National Association of Medicaid Fraud Control Units, with assistance from HHS-OIG and the Department of Defense Criminal Investigative Service. The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477). Senior Trial Counsel Sarah Arni of the Civil Division’s Fraud Section and former Senior Litigation Counsel Lindsay Griffin for the Middle District of Florida handled the matter. The claims resolved by the settlements are allegations only. There has been no determination of liability. ###


title: Colonie Man Pleads Guilty to Trafficking Fentanyl and Cocaine

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Benz Coleman, age 33, of Colonie, New York, pled guilty today to one count of possessing with intent to distribute fentanyl and cocaine. 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. Coleman admitted that on January 31, 2024, he possessed more than 3,000 fentanyl pills and more than 13 grams of cocaine, all with the intent to distribute the drugs. Coleman further admitted that between November 1, 2023, and January 31, 2024, he sold another person more than 2,400 fentanyl pills. At sentencing on February 12, 2025, before Senior United States District Judge Lawrence E. Kahn, Coleman faces at least 5 years and up to 40 years in prison. The judge will also be required to impose a term of post-release supervision of at least 4 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. DEA and the Colonie Police Department investigated this case. Assistant U.S. Attorney Rick Belliss is prosecuting the case.


title: Albany County Man Pleads Guilty to Sexual Exploitation of a Child

body_text: SYRACUSE, NEW YORK – Thomas Berrington, age 33, of Colonie, New York, pled guilty yesterday in federal court to two counts of sexual exploitation of a child announced United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI). As part of his guilty plea yesterday, Berrington admitted that between June of 2023 and January of 2024, he repeatedly sexually abused a minor female child for the purpose of photographing and video recording the abuse. The victim was eight years old when Berrington’s abuse of her began. At sentencing, currently scheduled for January 30, 2025, in Albany New York, Berrington faces a term of imprisonment between 15 and 60 years, a term of post-release supervision between 5 years and life, and a fine of up to $250,000. Berrington will also be ordered to pay restitution to the victim, forfeit the device used in the offense, and will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the statute the defendant violated, the U.S. Sentencing Guidelines, and other factors. The case was investigated by the FBI’s Albany Division Child Exploitation and Human Trafficking Task Force – comprised of FBI Special Agents, and state and local police investigators, including from the New York State Police and Colonie Police Department. The case is being prosecuted by Assistant United States Attorney Adrian S. LaRochelle as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc .


title: Missoula meth, fentanyl trafficker sentenced to more than six years in prison

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

body_text: MISSOULA — A Missoula woman who admitted conspiring to traffic methamphetamine and fentanyl was sentenced on Wednesday to six and one-half years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said today. The defendant, Robin Marie Holcomb, 42, pleaded guilty in May to conspiracy to possess with intent to distribute controlled substances. U.S. District Judge Donald W. Molloy presided. The government alleged in court documents that from May 2022 to September 2023, Holcomb and others distributed meth and fentanyl in the Missoula area. Law enforcement served a search warrant on a hotel where Holcomb was staying and located meth and 99 fentanyl pills. Holcomb attempted to call her sister to have her remove cash and drugs from Holcomb’s vehicle. Law enforcement searched the vehicle and located $20,520 cash, 794 grams, which is approximately one and three-quarters pound, of meth and 5,013 fentanyl pills. The U.S. Attorney’s Office prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and Missoula High Intensity Drug Trafficking Area Task Force conducted the investigation. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN . XXX


title: St. Paul Felon Pleads Guilty to Illegal Possession of Firearm

component: USAO - Minnesota

body_text: MINNEAPOLIS – A St. Paul man has pleaded guilty to illegally possessing a firearm as a convicted felon, announced United States Attorney Andrew M. Luger. According to court documents, on June 22, 2023, law enforcement executed a search warrant at the residence of Dean Wade Guenther, 57. In conducting the search, officers discovered a locked black safe in Guenther’s bedroom. Inside the safe, law enforcement found two 9mm semiautomatic pistols, 142 grams of fentanyl, and miscellaneous drug paraphernalia. Because Guenther has prior felony convictions, he is prohibited from possessing firearms or ammunition at any time. Guenther pleaded guilty today in U.S. District Court before Judge David S. Doty to one count of possession of a firearm as a felon. A sentencing hearing will be scheduled at a later date. This case is the result of an investigation conducted by the St. Paul Police Department, the Minnesota Bureau of Criminal Apprehension, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Paul Bunyan Drug Task Force. Assistant U.S. Attorney Evan B. Gilead is prosecuting the case.


title: Pain Doctors Sentenced to 6 ½ Years In $45 Million Healthcare Fraud

component: USAO - Texas, Northern

body_text: Two pain management doctors who pantomimed injections on patients were sentenced today to six and a half years apiece for healthcare fraud, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Drs. Desi Barroga, 51, and Deno Barroga, 51, were indicted in November 2023 and pleaded guilty in May 2024 to one count each of conspiracy to commit healthcare fraud. They were sentenced Thursday by U.S. District Judge Brantley Starr, who ordered them jointly and severally liable for $9,016,883.10 in restitution. Under the terms of their plea agreement, both men were also required to forfeit their medical licenses. “These doctors exploited drug users’ vulnerabilities, requiring them to submit to monthly visits in exchange for controlled substance prescriptions, then billing their insurance providers for services the patients did not need nor receive. In a bizarre attempt to cover up their crimes, the defendants feigned giving injections without actually piercing the patients’ skin,” said U.S. Attorney Leigha Simonton. “Not only did they defraud their patients’ insurers, they facilitated their patients’ addictions. Their actions are antithetical to the practice of medicine, and the U.S. Attorney’s Office is proud to hold them accountable for their crimes.” “Deno and Desi Barroga conspired to fraudulently bill private insurance companies, which included Employee Retirement Income Security Act of 1974 covered plans, tens of millions of dollars for services not rendered. Among other things, both doctors falsely represented to insurance companies that patients received over eighty injections during the office visits, when, in fact, the patients received few or no injections at all. This sentencing reflects the Office of Inspector General’s commitment to working with the U.S. Department of Labor’s (DOL) Employee Benefits Security Administration and our law enforcement partners to investigate and bring to justice those who engage in fraud against employee benefit programs,” said Casey J. Howard, Special Agent in Charge, Central Region, U.S. Department of Labor - Office of Inspector General. According to court documents, the twin brothers admitted that they conspired to defraud Blue Cross Blue Shield, Cigna, and United Healthcare by submitting claims for corticosteroid injections that were never administered. As part of the conspiracy, the Barrogas required patients to submit to monthly office visits. This allowed patients to continue receiving highly addictive Schedule II controlled substances – including hydrocodone, oxycodone, and morphine – while allowing the defendants to bill patients’ insurance companies for expensive services they never provided. The Barrogas reported to insurance that they performed as many as 80 corticosteroid injections per patient per visit. In reality, the majority of these injections were never administered. In many instances, the doctor simply placed a needle on the patient’s body without actually piercing the skin to mimic giving an injection. They defendants created fake medical records, which were often cut and pasted, or cloned, from patient to patient with little to no variation. They also instructed patients to include false statements pertaining to the injections and other treatments in the record. In plea papers, the brothers admitted that they billed insurers at least $45 million and were paid at least $9 million as part of the scheme. The U.S. Department of Labor’s Office of Inspector General, the U.S Department of Labor’s Employee Benefits Security Administration, U.S Office of Personnel Management’s Office of the Inspector General, the Drug Enforcement Administration’s Dallas Field Division Diversion Group, and the Texas Department of Insurance – Fraud Unit – Austin and Fort Worth Field Offices conducted the investigation. Assistant U.S. Attorney Renee Hunter is prosecuting the case. Assistant U.S. Attorney Dimitri Rocha assisted with forfeiture.


title: MEMPHIS MAN CHARGED WITH FIREARMS OFFENSE

body_text: KNOXVILLE, Tenn. - On September 18, 2024, a federal grand jury in Knoxville, TN, returned a one-count indictment against Antonio Fontaine, 47, of Memphis, TN. According to the indictment, the defendant is charged with being a felon in possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g)(1), stemming from offense conduct on September 11, 2024. Fontaine had his initial appearance on September 26, 2024, before the Honorable Jill E. McCook, United States Magistrate Judge, and entered a plea of not guilty. This case has been set for trial on January 14, 2025, before the Honorable Katherine A. Crytzer, United States District Judge, in the Eastern District of Tennessee at Knoxville. If convicted, Fontaine faces a prison term of up to 15 years and other penalties. U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement. This indictment is the result of an investigation led by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with significant support from the Knoxville Police Department. Assistant U.S. Attorney Michael Gilmore will represent the United States. Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until their guilt has been proven beyond a reasonable doubt. ###


title: Durham Woman Sentenced to 12 Years in Prison for Sex Trafficking

component: USAO - North Carolina, Middle

body_text: GREENSBORO – LESLIE CHEVONNE STOUT was sentenced today to 144 months in prison after being convicted of sex trafficking, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina. STOUT, age 43, pleaded guilty on October 16, 2023, to conspiracy to commit sex trafficking by force, threats of force, fraud, and coercion. Evidence at the trial of STOUT’s codefendant Chester Fletcher Wallace showed that STOUT and Wallace ran a sex trafficking ring based out of a three-bedroom house located in Durham that Wallace rented from July 2021 until late spring of 2022. STOUT and Wallace recruited women who were homeless or suffering from substance abuse, promising them housing and drugs if they came to live at the residence. Once there, all five victims testified they were photographed for advertisements posted for commercial sex posted on sites such as “Mega Personals” and “Skipthegames,” and that STOUT and Wallace set up the “dates” for commercial sex. The victims further testified that STOUT and Wallace established certain house rules that all the victims had to obey and used violence and coercion to enforce the rules of the house. STOUT was sentenced today to 144 months imprisonment and ten years of supervised release by the Honorable Loretta C. Biggs, United States District Judge in the United States District Court for the Middle District of North Carolina. In addition to prison time, STOUT was ordered to pay restitution in the amount of $914,401.07. Wallace was sentenced on November 2, 2023, to six life terms of imprisonment, to run concurrent with one another. The case was investigated by Homeland Security Investigations and the Durham Police Department, with support and assistance from the Durham County District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney Nicole DuPré and former Assistant United States Attorney Tanner Kroeger. ###


title: New Jersey Business Owner Admits Wire Fraud Conspiracy, Wire Fraud

component: USAO - New Jersey

body_text: NEWARK, N.J. – A New Jersey business owner today admitted his role in a fraud scheme involving COVID funds, fraudulent tax filings and a fraudulent loan application, U.S. Attorney Philip R. Sellinger announced. Richard Fadraga, aka “Ricardo Fadraga,” 53, of Elizabeth, New Jersey, pleaded guilty before U.S. District Judge Michael E. Farbiarz in Newark federal court to an information charging him with one count of wire fraud conspiracy and two counts of wire fraud. According to documents filed in this case and statements made in court: In June 2020, Fadraga and a conspirator who was in the business of preparing tax returns submitted a fraudulent application for an Economic Injury Disaster Loan (EIDL), which resulted the Small Business Administration (SBA) paying $110,000 in COVID-19 related proceeds. In July 2020, Fadraga and the conspirator submitted another fraudulent EIDL application, which resulted in the SBA paying $131,200 in COVID-19 related proceeds. The July 2020 application was submitted under another person’s name to conceal the involvement of Fadraga and his conspirator, but law enforcement was subsequently able to link the July 2020 application back the two conspirators. At the urging of his conspirator, Fadraga also obtained an Employer Identification Number (EIN) and Electronic Filer Identification Number (EFIN) using Fadraga’s personal identifying information. His conspirator then used the EIN and EFIN to submit federal tax returns on behalf of other people that contained false information. The fraudulent EIN was associated with tax returns that received more than $195,000 in federal refunds for tax year 2023, and the fraudulent EFIN was associated with tax returns that received more than $595,000 in federal refunds for tax year 2023, including tax refunds totaling more than $100,000 in the names (including variations of the names) of the conspirator and the conspirator’s associates. Fadraga also fraudulently applied for a bank loan in connection with the purchase of property in Florida. When the lender requested additional information, Fadraga sent bank statements to his conspirator, who then altered those bank statements to make it appear as if Fadraga’s bank account contained more money than it really did. Each count of wire fraud conspiracy and wire fraud carries a maximum penalty of 20 years in prison and a maximum fine of $250,000 fine, or twice the gross gain to the defendant or loss to the victim, whichever is greatest. Sentencing is scheduled for Feb. 10, 2025. U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan in Newark, with the investigation leading to the guilty plea. The government is represented by Assistant U.S. Attorney Matthew Specht of the Special Prosecutions Division in Newark. fadraga.information.pdf


title: Former Naples Airport Customs Officer Sentenced To Prison For Stealing Cash From Airline Passengers

body_text: Fort Myers, FL – U.S. District Judge Thomas P. Barber has sentenced William Joseph Timothy (43, Ave Maria) to 12 months in federal prison for stealing cash from arriving airline passengers during the course of his official duties. The Court also ordered Timothy to pay $18,700 in restitution to the victims of his thefts. Timothy entered a guilty plea on June 18, 2024. According to court documents, between mid-2023 and early-2024, while working asa U.S. Customs and Border Protection (CBP) Officer at the Naples Airport, Timothy stole approximately $18,700 in cash from airline passengers during 17 incidents of theft uncovered by CBP’s Office of Professional Responsibility investigators. Evidence collected during the investigation showed that Timothy was surreptitiously stealing cash from arriving international passengers during border enforcement examinations and currency verifications performed as part of his official duties as an assigned CBP Officer at Naples Airport. “CBP does not tolerate misconduct within its ranks,” said Carlos C. Martel, Director, U.S. Customs and Border Protection (CBP), Miami and Tampa Field Offices. “CBP’s efforts in this case are a testament to CBP’s commitment to preserving the honor of its overwhelmingly professional workforce, and our core values of vigilance, integrity, and service to country.” This case was investigated by U.S. Customs and Border Protection’s Office of Professional Responsibility. It was prosecuted by Assistant United States Attorney Simon R. Eth.


title: Department of Justice awards nearly $8 million to Washington Tribes, non-profits, and government entities to combat domestic violence

component: USAO - Washington, Western

body_text: Seattle – The Department of Justice Office on Violence Against Women has awarded nearly $8 million to Western Washington tribal nations, non-profits, and government programs to provide services for victims of domestic violence, announced U.S. Attorney Tessa M. Gorman. The grants are paid out over multi-year periods. “These federal dollars support the strong work done in our state to protect the vulnerable,” said U.S. Attorney Gorman. “Native American women suffer domestic violence at a higher rate than other communities, so I am pleased to see the impactful programs our tribal partners are supporting with this funding.” The Port Gamble S’Klallam Tribe in Kitsap County was awarded $1 million for its program that provides advocacy, legal services, housing, and safety planning for victims of domestic violence. The Snoqualmie Indian Tribe in east King County was awarded $998,595 to increase their supervised visit program, no cost civil legal services for survivors, as well as advocacy and support efforts. Both the Quileute Tribe and the Confederated Tribes of the Chehalis Reservation were awarded $650,000 for victim services such as housing, transportation, advocacy and legal assistance. The Chehalis will also provide education and training to 75 young people on dating violence and healthy relationships. The Makah Tribe was awarded $425,000 for its Domestic Violence Program to better respond to violence, stalking, sex trafficking and sexual assault. Funding will help develop prevention and education programs. The Washington State Native American Coalition against Domestic Violence and Sexual Assault received two grants totaling $796,335 for education and training for all 29 federally recognized Tribes in the state on ways to combat domestic violence, sexual assault and trafficking of Native women. The funding also supports the WomenSpirit Coalition, providing domestic violence and sexual assault services in Tribal communities. Pierce County received $1 million to improve the criminal response to domestic violence. The money will support victim outreach and support for victims at legal hearings, as well as creation of a policy and procedure handbook for advocates. King County Sexual Assault Resource Center was awarded $803,741 to identify gaps in legal advocacy and to work with other entities such as the King County Prosecuting Attorney’s Office, the Atlantic Street Center and El Centro de la Raza to develop coordinated responses with system-based improvements. The Seattle City Attorney’s Office was awarded $500,000 to enhance investigation and prosecution of domestic violence, dating violence, sexual assault and stalking. In partnership with the YWCA of King and Snohomish Counties, the funds will support an investigator position and trainings for Seattle Police Officers. The Domestic Abuse Women’s Network (Dawn) in South King County was awarded $300,000 to provide shelter beds for victims who also need to shelter their pets. The Family Support Center of South Sound was awarded $499,915 to improve advocacy services in Thurston, Mason, and Lewis Counties. The funds may pay for a dedicated domestic violence detective as well as law enforcement training. Finally, both the Washington Coalition of Sexual Assault Programs of Kennewick, Washington ($252,846) and the Washington State Coalition against Domestic Violence ($114,533) in Seattle, received grants for statewide coordination and education programs.


title: Owner Of Brick Construction Business Admits Failure to Collect and Pay Over Taxes

body_text: TRENTON, N.J. – An Ocean County man today admitted failing to collect and pay over employee taxes, U.S. Attorney Philip R. Sellinger announced. Gerard Artz, 44, of Brick, New Jersey pleaded guilty before U.S. District Judge Robert Kirsch in Trenton federal court to an information charging him with one count of failure to collect and pay over taxes. According to documents filed in this case and statements made in court: Artz owned and operated a construction company in Brick, New Jersey, and New York City. Beginning around 2016, Artz’s company, under his direction, withheld employment taxes from the company’s employees’ paychecks and did not remit those employment taxes to the IRS. From 2016 to 2020, Artz and his company failed to collect and pay over $937,943 in employment taxes owed by his company. The count of failure to collect and pay over taxes carries a maximum penalty of five years in prison and a $250,000 fine. As part of his plea agreement, Artz has agreed to pay the government restitution of $937,943. Sentencing is scheduled for Feb. 5, 2024. U.S. Attorney Sellinger credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jenifer L. Piovesan, with the investigation leading to the guilty plea. The government is represented by Assistant U.S. Attorney Eric Suggs of the Criminal Division in Trenton. artz.information.pdf


title: United States Seizes More than $6 Million in Alleged Proceeds of a Crypto-Confidence Scheme

component: Criminal Division

body_text: WASHINGTON – The United States seized over $6 million worth of cryptocurrency from perpetrators overseas, announced U.S. Attorney for the District of Columbia Matthew M. Graves, U.S. Attorney for the Eastern District of Tennessee Francis M. Hamilton III, Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Criminal Division, and FBI Special Agent in Charge Joseph E. Carrico of the Knoxville Division. The perpetrators in Southeast Asia targeted one or more individuals in the United States and fraudulently obtained millions of dollars’ worth of cryptocurrency through a cryptocurrency confidence investment scheme. The FBI was able to trace victim funds on the blockchain and located multiple cryptocurrency wallet addresses which still held victim funds totaling more than $6 million. Cryptocurrency confidence investment schemes begin by criminals contacting potential victims through seemingly misdirected text messages, dating applications, or professional meetup or investment groups. Next, using various means of manipulation, the criminal gains the victim’s affection and trust. The perpetrator then recommends cryptocurrency investment by touting their own, or an associate’s, success in the field. Means of carrying out the scheme vary, but a common tactic is to direct a victim to a fake investment platform hosted on a website. These websites, and the investment platforms hosted there, are created by criminals to mimic legitimate platforms. The subject assists the victim with opening a cryptocurrency account, often on a U.S.- based exchange, and then walks the victim through transferring money from a bank account to that cryptocurrency account. Next, the victim will receive instructions on how to transfer their cryptocurrency assets to the fake investment platform. On its surface, the fraudulent platforms often show lucrative returns, encouraging further investment; however, all deposited funds are actually routed to a cryptocurrency wallet address controlled completely by the perpetrators. The perpetrators frequently allow victims to withdraw some of their “profits” early in the scheme to engender trust and help convince victims of the legitimacy of the platform. As the scheme continues, victims are unable to withdraw their funds and are provided various excuses as to why. Ultimately, victims are locked out of their accounts and lose all their funds. “In these scams, fraudsters trick U.S. citizens into believing they are transferring funds to cryptocurrency investment opportunities when, in fact, they are just unwittingly turning their money over to the fraudsters,” said U.S. Attorney Graves. “The fact these fraudsters and their accounts are typically located outside the United States, will not stop us or our partners at the FBI from doing all we can to recover the proceeds of these frauds and to hold the people running them accountable.” “Investment scams and schemes are not new, but committing fraud with digital currency presents new challenges for law enforcement attempting to recover lost funds,” said Special Agent in Charge Carrico. “The FBI along with our law enforcement partners will continue to investigate allegations of crypto scams, but the best defense is to educate yourself before making any investment. Remember, if it sounds too good to be true, it probably is.” Based on data submitted to the FBI’s Internet Crime Complaint Center ( https://www.ic3.gov/ ) in 2022 alone, perpetrators of these schemes targeted tens of thousands of victims in the United States and resulted in over two billion dollars in private assets being siphoned overseas. The loss amount reported in IC3 complaints involving cryptocurrency increased 45% since 2022, from more than $3.8 billion to over $5.6 billion in 2023. The FBI Knoxville Division is investigating the case. The Justice Department’s Office of International Affairs and FBI’s Virtual Asset Unit are providing invaluable assistance. The Department of Justice would like to acknowledge Tether for its assistance in effectuating the transfer of these assets. This case is being prosecuted by Assistant U.S. Attorneys Kevin Rosenberg and Rick Blaylock Jr. of the District of Columbia, Assistant U.S. Attorney Joseph DeGaetano of the Eastern District of Tennessee, and Trial Attorney Stefanie Schwartz from the National Cryptocurrency Enforcement Team with the Computer Crime and Intellectual Property Section of the Department of Justice. ### Twitter , Instagram , and YouTube


title: Former Connecticut-Based Energy Trader Convicted of International Bribery Scheme

body_text: A federal jury in Bridgeport, Connecticut, convicted a former oil and gas trader today for his role in a nearly eight-year long scheme to bribe Brazilian government officials and to launder money to secure business for two Connecticut-based commodities trading companies. According to court documents and evidence presented at trial, Glenn Oztemel, 65, of Westport, Connecticut, paid bribes to officials of Petróleo Brasileiro S.A. (Petrobras), the Brazilian state-owned oil and gas company, to obtain lucrative contracts for Arcadia Fuels Ltd. (Arcadia) and Freepoint Commodities LLC (Freepoint). “Glenn Oztemel paid and laundered more than $1 million in bribes to employees of Brazil’s state-owned oil and gas company to obtain lucrative contracts for his commodities-trading companies in Connecticut,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Bribing public officials to win business undermines the rule of law and creates unfair competition. Today’s verdict reaffirms the Criminal Division’s commitment to combatting foreign corruption that violates U.S. law.” “Bribery and money laundering are well-established federal crimes,” said U.S. Attorney Vanessa Roberts Avery for the District of Connecticut. “This conviction serves as another warning to anyone involved in the financial industry who seeks to gain an unfair advantage and illegally profit, both here in the U.S. and abroad. This office and our law enforcement partners will continue to keep a watchful eye to ensure that representatives from U.S. businesses operating overseas comply with our nation’s laws.” “Individuals and companies who collude to thwart free market competition through bribery ultimately erode public trust in the marketplace,” said Assistant Director in Charge Akil Davis of the FBI Los Angeles Field Office. “Today’s conviction demonstrates the commitment of the FBI and our partners to investigate anti-competitive behavior and hold accountable those who try to cheat the system for their own benefit and profit.” The trial evidence showed that, between 2010 and 2018, Oztemel worked as a senior oil and gas trader — first at Arcadia and then at Freepoint. With the assistance of others, Oztemel paid and caused the payment of bribes to Petrobras officials for their assistance in helping Arcadia and Freepoint to obtain and retain fuel oil contracts with Petrobras and by providing Oztemel and others with confidential information regarding Petrobras’ fuel oil business. Oztemel and his co-conspirators caused Arcadia and Freepoint to make corrupt payments — disguised as purported consulting fees and commissions — to a third party intermediary and agent, Eduardo Innecco, 74, knowing that Innecco would pay a portion of those funds to Brazilian officials, including to Houston-based Petrobras trader Rodrigo Berkowitz. To conceal the scheme, Oztemel, Innecco, and their co-conspirators used coded language like “breakfast” and “freight deviation” to refer to the bribes and communicated using personal email accounts, encrypted messaging applications, disposable phones, and fictitious names like “Spencer Kazisnaf” and “Nikita Maksimov.” In total, Oztemel paid more than $1,000,000 in bribes, which were split between Berkowitz and other Petrobras officials in Brazil. The bribe money moved from the trading companies to shell companies around the world controlled by Innecco, who then made payments to a bank account in Uruguay controlled by Berkowitz’s father. The jury convicted Oztemel of conspiracy to violate the Foreign Corrupt Practices Act (FCPA), conspiracy to commit money laundering, three counts of violating the FCPA, and two counts of money laundering. He faces a maximum penalty of five years in prison on each of the FCPA and conspiracy to violate the FCPA counts, and a maximum penalty of 20 years in prison on each of the money laundering and money laundering conspiracy counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Charges against Oztemel and Innecco were unsealed on Feb. 17, 2023. In a superseding indictment returned on Aug. 29, 2023, both were charged alongside Oztemel’s brother, Gary Oztemel. Gary Oztemel pleaded guilty to money laundering on June 24. In May 2023, Innecco was arrested in France and his extradition to the United States is pending. An indictment is merely an allegation, and Innecco is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. In a related matter, in December 2023, Freepoint admitted to bribing officials in Brazil in violation of the anti-bribery provisions of the FCPA. Freepoint entered into a deferred prosecution agreement with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the District of Connecticut. As a part of the resolution, Freepoint agreed to pay more than $98 million in criminal penalties and forfeiture. The FBI Los Angeles Field Office’s International Corruption Squad investigated the case. The Justice Department’s Office of International Affairs and authorities in Brazil, Latvia, Switzerland, and Uruguay provided assistance with the investigation. Trial Attorneys Allison McGuire and Clayton P. Solomon and Assistant Chief Jonathan P. Robell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael McGarry for the District of Connecticut are prosecuting the case. The Criminal Division’s Fraud Section is responsible for investigating and prosecuting FCPA and Foreign Extortion Prevention Act (FEPA) matters. Additional information about the Justice Department’s FCPA and FEPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa .


title: Individual Sentenced to Over 19 years in Prison for Child Exploitation and Drug Trafficking

component: USAO - Puerto Rico

body_text: SAN JUAN, Puerto Rico –Today, Bryan Xavier Pérez Hernández was sentenced by United States District Court Judge María Antongiorgi-Jordan to 235 months (19 years and seven months) in prison, followed by 5 years of supervised release, for production of child exploitation material and drug trafficking charges. According to court documents, Bryan Xavier Pérez Hernández knowingly used, persuaded, induced, enticed, and coerced 13-year-old female minor G.L.C.C., to engage in sexually explicit conduct for the purpose of producing child exploitation material. On April 18, 2024, Pérez Hernández also pleaded guilty to possession with intent to distribute cocaine, including distribution to a minor. On August 16, 2024, Melanie Cruz Clivilles, mother of the minor victim was sentenced to four years in prison for lying to a federal law enforcement agent. Cruz Clivilles made a materially false, fictitious, and fraudulent statement and representation by falsely stating to a Task Force Officer of the United States Department of Homeland Security Investigations that she first met Bryan Xavier Pérez Hernández at the hospital on August 4, 2023, where he arrived with defendant’s deceased daughter G.L.C.C. The statement and representation were false because, as she then and there knew, she had met Pérez Hernández at the latest in July of 2023, and had been with him during a meeting on August 3, 2023. “This sentence concludes a disturbing case in which a 13-year-old girl died at the hands of her adult boyfriend and her complicit mother,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “I commend the prosecution team and our law enforcement partners who worked diligently to ensure that these defendants were held accountable for their crimes.” “13-year-old Gabriela Cabán Cruz died at the hands of individuals she trusted. As a society we can’t accept inappropriate relationships between minors and adults, we need to report, get involved, most importantly if it involves child neglect,’ said Rebecca González-Ramos, Special Agent in Charge HSI San Juan. “Today we mourn the death of a thirteen-year-old who we failed, let’s stay vigilant and if we see something, say something. As an agency our priority will always be the safety of our minors. This sentencing reflects the commitment HSI and the PRPB have towards child exploitation investigations, a tough investigation worked together to seek justice for Gabriela.” Homeland Security Investigations and the Puerto Rico Police Bureau investigated the case. Assistant U.S. Attorney Jenifer Hernández Vega, Chief of the Child Exploitation and Immigration Unit prosecuted the case. For more information about HSI’s efforts to protect children from sexual predators, visit https://www.ice.gov/topics/iGuardians ; and to denounce suspicious activities call 787-729-6969. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###


title: KC Tax Preparer Sentenced for Wire Fraud, False Tax Returns

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A Kansas City, Mo., tax preparer was sentenced in federal court today for a nearly $1 million wire fraud scheme in which he filed federal income tax returns for his clients that contained false information. Ebens Louis-Loradin, 45, was sentenced by U.S. District Judge Brian C. Wimes to 20 months in federal prison without parole. The court also ordered Louis-Loradin to pay $722,121 in restitution. On March 27, 2024, Louis-Loradin pleaded guilty to one count of wire fraud and 10 counts of aiding in the preparation of false tax returns. According to court documents, Louis-Loradin prepared and filed 154 fraudulent tax returns that inflated his clients’ refunds by a total of nearly $1 million and thereby boosted the fees he charged them. Louis-Loradin, who has been a tax preparer since 2012, admitted that he engaged in a scheme to defraud the IRS and obtain money by preparing and electronically filing federal tax returns containing false items over a seven-year period from 2013 to 2020. Louis-Loradin claimed items on his clients’ federal tax returns that his clients were not entitled to claim, including dependents, inflated income tax withholding amounts, credits for child and dependent care expenses, American opportunity credits, earned income credits, itemized deductions, and business losses. These false claims had the effect of reducing his clients’ taxable income and increasing his clients’ tax credit eligibility. Louis-Loradin’s fraud scheme resulted in a total loss of $953,873 to the United States. Many of his clients, who told investigators they weren’t aware of the false items he placed on their tax returns, have been paying back the Internal Revenue Service for the refund overpayments caused by Louis-Loradin’s fraud scheme. According to court documents, Louis-Loradin failed to file personal federal income tax returns for tax years 2016, 2017, and 2018. He also fraudulently utilized multiple identities, including those of children, in the commission of his fraud scheme. Specificallym Louis-Loradin utilized the identity of at least seven minors to claim them as dependents on various clients’ tax returns. According to court documents, Louis-Loradin was in Haiti when he was indicted in July 2021. He traveled to Florida in May 2023 and was arrested. This case was prosecuted by Assistant U.S. Attorney Nicholas P. Heberle. It was investigated by IRS-Criminal Investigations.


title: Convicted Felon Sentenced to 34 Months in Prison on Gun Charge

body_text: BIRMINGHAM, Ala. – A convicted felon has been sentenced for illegally possessing a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus Watson. U.S. District Court Judge Anna Manasco sentenced Jonathan Teal, 35, of Vestavia, to 34 months in prison. In April, Teal pleaded guilty to being a felon in possession of a firearm. According to the plea agreement, on September 24, 2023, a Birmingham Police Department officer responded to a call of a man walking down the street and waving a gun as vehicles drove by him. The officer approached Teal, and while performing a pat down search for weapons, the officer recovered a Taurus 9mm pistol from Teal’s waistband. Teal is prohibited from possessing a firearm because of multiple prior felony convictions. The ATF investigated the case along with the Birmingham Police Department. Assistant U.S. Attorney Kristy M. Peoples prosecuted the case.


title: Virginia Man Sentenced to Three Years in Prison for Sextortion Scheme Targeting More Than 100 Young Female Victims Across the Country

component: Federal Bureau of Investigation (FBI)

body_text: PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Terrell Ashby, aka “Jason Brandon,” 26, of Williamsburg, Virginia, was sentenced today by United States District Court Judge Gerald McHugh to 36 months’ imprisonment and three years of supervised release, for engaging in a widespread “sextortion” scheme targeting young women across the country. Ashby was also ordered to pay $28,883.64 in restitution to the victims. In April, the defendant pleaded guilty to two counts of cyberstalking (one count resulting in serious bodily injury) and two counts of extortion. From at least February 2020 to December 2020, Ashby engaged in an extensive sextortion scheme affecting more than 100 young female victims. Targeting women based on their social media profiles, he systematically tricked the victims into participating in nude video chats with him or sending him explicit photos of themselves by promising to pay them $70,000. However, instead of paying the victims, he surreptitiously took screenshots during the nude video chats. Then he used the explicit images to extort the victims, threating to disseminate the images publicly unless they paid him. Many victims succumbed and paid Ashby anywhere from $25 to $50. After receiving such extortion payments, he continued to haunt the victims – sometimes for months. He created numerous shaming profiles on social media using the victims’ identities and explicit photos. He stalked the victims, repeatedly sending them threatening messages that their “expose” page had been created and would be shared with their friends and contacts. One of the victims who resided in the Eastern District of Pennsylvania was so distraught that she overdosed on her prescription medication and had to be rushed to the emergency room. Fortunately, she recovered from the incident, but was hospitalized for a period of time. During her hospitalization, Ashby continued to harass her, advertising her explicit images to others using various social media accounts. Even months later, Ashby continued his extortion of this victim. “Terrell Ashby was absolutely relentless in terrorizing these women online,” said U.S. Attorney Romero. “It’s hard to understand what prompted, and then perpetuated, his criminal cruelty. At the end of the day, though, we don’t really need to know why he did it. It’s more important to know where he’s headed for doing so — and that’s federal prison, for the next several years of his life. That’s a measure of justice for his many victims, but it will never erase all the harm done.” “We hope today's sentencing brings justice to the countless victims this defendant harassed, violated, and extorted,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “The FBI and our partners at the U.S. Attorney's Office encourage any victim of sextortion to report information to law enforcement so we can continue to identify, investigate and prosecute these crimes.” The case was investigated by the Philadelphia FBI and is being prosecuted by Assistant United States Attorney Sarah Wolfe. The FBI and U.S. Attorney’s Office in the Eastern District of Virginia also provided assistance in the investigation.


title: New Britain Man Pleads Guilty to Child Exploitation Offense

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JOSHUA GLAESER, 36, of New Britain, pleaded guilty today before U.S. District Judge Omar A. Williams in Hartford to possession of child pornography. According to court documents and statements made in court, in the summer of 2022, a Connecticut State Police detective investigating child exploitation offenses identified an IP address at Glaeser’s New Britain residence that was being used in the distribution of child pornography. In 2012, Glaeser was convicted in state court of possession of child pornography and was sentenced to 10 years of imprisonment, execution suspended after two years, followed by 10 years of probation, which Glaeser was currently serving. On December 9, 2022, HSI special agents executed a court authorized search warrant at Glaeser’s residence and seized his Chromebook, tablet, smartphone and storage cards. Analysis of the seized items revealed more 3,000 images and videos of child pornography, including images depicting the sexual abuse of children, including infants and toddlers. The investigation also revealed that Glaeser used a peer-to-peer file sharing network to distribute child pornography to other users. At sentencing, which is not scheduled, Glaeser faces a mandatory minimum term of imprisonment of 10 years and maximum term of imprisonment of 20 years. The penalties in this matter are enhanced because of Glaeser’s prior state conviction for possessing child pornography. Glaeser has been detained since December 9, 2022. This matter is being investigated by Homeland Security Investigations (HSI) and the Connecticut State Police. 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: Marijuana Trafficker Sentenced to Prison

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DELROY ANDERSON, also known as “Max,” 57, formerly of Stamford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 13 months of imprisonment, followed by three years of supervised release, for leading a money laundering conspiracy related to his large-scale trafficking of marijuana. Anderson also must serve the first six months of his supervised release in home detention. According to court documents and statements made in court, for approximately five years, Anderson conspired with others to launder proceeds from a marijuana trafficking operation by paying for marijuana cultivation, package shipping, electricity, and air travel expenses with the proceeds. He also deposited the drug trafficking proceeds into multiple bank accounts opened in the name of Maximillion Enterprises Inc., and structured deposits to evade reporting requirements under federal law. Between 2015 and 2019, Anderson operated marijuana cultivation farms in Santa Rosa, California, and Willits, California, and he employed others to grow, harvest, package, and ship the marijuana for distribution in Connecticut, Virginia, New York, and elsewhere. In February 2020, Anderson and his co-conspirators, Kelvin Jackson and Stephanie Atkinson, were charged by indictment with various money laundering offenses. On February 18, 2022, Anderson, who had been released on bond pending trial, was scheduled to appear before Judge Dooley for a guilty plea proceeding. He failed to appear for that court proceeding and ceased contact with his attorney and the U.S. Probation Office. On November 8, 2023, the U.S. Marshals Service located and arrested Anderson in Dallas, Texas. He has been detained since his arrest. On July 1, 2024, he pleaded guilty to conspiracy to launder monetary instruments. Anderson has forfeited his interest in multiple bank accounts associated with the charged conspiracy. Jackson, of Bristol, Virginia, and Atkinson, of Stamford, previously pleaded guilty to the same charge and await sentencing. This matter has been investigated by the Drug Enforcement Administration with the assistance of the U.S. Marshals Service, the Stamford Police Department, and the Sonoma County (Calif.) Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorneys David T. Huang and Jocelyn Courtney Kaoutzanis through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs, and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .


title: Two Defendants Plead Guilty to Roles in Beckley Drug Trafficking Organization

component: USAO - West Virginia, Southern

body_text: BECKLEY, W.Va. – Today, Christopher Michael Shepherd, 48, of Fayetteville, pleaded guilty to possession with intent to distribute fentanyl and Kimberly Rosetta Logan, 47, of Beckley, pleaded guilty to distribution of fentanyl. Shepherd and Logan admitted to roles in a drug trafficking organization (DTO) that distributed methamphetamine, fentanyl and cocaine base, also known as “crack,” in Beckley and elsewhere within the Southern District of West Virginia. According to court documents and statements made in court, on April 24, 2024, Shepherd arranged to exchange approximately 8.5 grams of heroin with co-defendant Tilford Joe Bradley Jr. for approximately 8.5 grams of fentanyl. Shepherd met with Bradley at a Beckley-area gas station and made the exchange later that day. Law enforcement observed the transaction and conducted a traffic stop of a vehicle driven by Shepherd shortly afterward. Shepherd admitted that he threw a bag of controlled substances from his vehicle while officers attempted the traffic stop. Officers found and seized 150 grams of fentanyl, 53 grams of methamphetamine, 1.7 grams of crack, and $4,007 as a result of the traffic stop. Shepherd admitted that he possessed the seized controlled substances and intended to distribute them within the Southern District of West Virginia. Logan admitted that she sold a quantity of fentanyl to a confidential informant at her residence in Beckley on April 10, 2024. Logan further admitted to distributing additional amounts of fentanyl and cocaine to other individuals while using some herself throughout May 2024. Logan ordered an average of 8 grams of fentanyl and 4 grams of cocaine per week from her Beckley-based supplier by phone during that time period, receiving the controlled substances at her residence. Shepherd and Logan are scheduled to be sentenced on January 31, 2025, and each faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine. Shepherd, Logan and Bradley are among 12 individuals indicted on charges alleging the defendants conspired to distribute methamphetamine, fentanyl, and crack within the Southern District of West Virginia from in or about June 2023 to in or about May 2024. The charges against Bradley and the other defendants are pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Beckley/Raleigh County Drug and Violent Crime Unit, which consists of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department. United States Magistrate Judge Omar J. Aboulhosn presided over the hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case. The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:24-cr-90. ###


title: Tennessee Man Pleads Guilty to Using Drone to Fly Marijuana into Yazoo City Federal Correctional Complex

component: USAO - Mississippi, Southern

body_text: Jackson, Miss. – A Tennessee man pled guilty to providing marijuana to an inmate of a federal prison. According to court documents and statements made in court, Mark Anderson, 49, of Tullahoma, Tennessee, flew a drone carrying approximately 195 grams of marijuana over the Federal Correctional Complex in Yazoo City and delivered it by releasing it from the air where an inmate would later retrieve it during the early morning hours of October 2, 2021. Anderson pled guilty to providing contraband in a prison. He is scheduled to be sentenced on January 7, 2025, and faces a maximum penalty of 5 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Acting Special Agent in Charge Eric DeLaune of Homeland Security Investigations made the announcement. The case was investigated by Homeland Security Investigations and the Tennessee Bureau of Investigations. Assistant U.S. Attorney Bert Carraway is prosecuting the case.


title: Previously convicted felon sentenced to 14 years in prison for trafficking fentanyl and cocaine and illegally possessing firearms

body_text: RICHMOND, Va. – A Richmond man was sentenced today to 14 years in prison for possession with intent to distribute para-fluorofentanyl, fentanyl, and cocaine and being a felon in possession of firearms. According to court documents, from January 2021 to May 2021, Richmond Police (RPD) detectives observed Tycota Rich Slater, 37, engaged in what appeared to be drug trafficking activities and made two controlled purchases of narcotics from Slater. On Aug. 31, 2021, detectives searched Slater’s residence in Chesterfield County. Detectives recovered two firearms, ammunition, and 743 grams of para-fluorofentanyl, as well as a press, a scale, and other items used for packaging illegal narcotics for distribution. In Slater's car, which was parked at the residence, agents recovered a firearm with an extended magazine along with federal court paperwork and $9,700 in drug-trafficking proceeds. On Oct. 26, 2023, RPD narcotics detectives with the assistance of agents of the Drug Enforcement Administration, searched Slater's residence in Richmond. The detectives and agents recovered a firearm, two press machines, three cellphones, and $71,144 in drug-trafficking proceeds, as well as a money counting machine, a vacuum sealer and bags, digital scales, and ammunition. Two of Slater’s vehicles were also searched, leading to the recovery of 500 grams of fentanyl, three kilograms of cocaine, and two more firearms. Detectives searched Slater's storage unit in Henrico County and recovered additional cocaine and four more firearms. Slater was convicted previously of possession with intent to distribute cocaine, domestic violence, possession of a firearm by a convicted felon, and other crimes. As a convicted felon, Slater cannot legally possess firearms or ammunition. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; James VanVliet, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Jason S. Miyares, Attorney General of Virginia; and Rick Edwards, Chief of Richmond Police, made the announcement after sentencing by U.S. District Judge David J. Novak. Assistant U.S. Attorney Olivia L. Norman and Special Assistant U.S. Attorney Ellen Hubbard, an Assistant Attorney General with the Virginia Attorney General’s Office, prosecuted the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-162.


title: South L.A. Man Sentenced to 4 Years in Federal Prison for Illegal Firearms Sales, Including ‘Ghost Guns’

component: USAO - California, Central

body_text: LOS ANGELES – A South Los Angeles man was sentenced today to 48 months in federal prison for participating in a scheme in which he and others illegally sold more than two dozen firearms – including “ghost guns,” firearms that lack serial numbers – and three silencers. Jonathan Perez, 35, was sentenced by United States District Judge John A. Kronstadt. After a three-day bench trial in August 2023, Judge Kronstadt found Perez guilty the following month of one count of conspiracy to engage in the business of dealing in firearms without a license, one count of engaging in the business of dealing in firearms without a license, and one count of possessing an unregistered firearm silencer. Perez and his co-conspirators sold 22 guns and three firearm silencers over the course of seven transactions to a confidential informant. In a text to an associate that was introduced as evidence in the trial, Perez said he was “selling straps to the cartel.” Perez personally manufactured many of the 18 “ghost guns” that were sold to the informant during the transactions in 2017. “[Perez] made a business out of manufacturing and selling firearms, and he did so without any concern for where the firearms might end up, what they may be used for, or who might get hurt,” prosecutors argued in a sentencing memorandum. Two other defendants in this case pleaded guilty in 2018 and 2021 to separate charges stemming from a related narcotics conspiracy. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this matter. Assistant United States Attorney Declan T. Conroy of the International Narcotics, Money Laundering, and Racketeering Section and Assistant United States Attorney Maria Jhai of the Violent and Organized Crime Section prosecuted this case.


title: Leader in 2012 Benghazi Attack that Killed U.S. Ambassador Stevens and 3 Other Americans Is Resentenced to 28 Years

body_text: WASHINGTON -- Ahmed Abu Khatallah, aka Ahmed Mukatallah, 53, a Libyan national, was resentenced today to 28 years in prison on federal terrorism charges and other offenses stemming from the Sept. 11, 2012, terrorist attack on the U.S. Special Mission in Benghazi, Libya. Ambassador J. Christopher Stevens and U.S. government personnel Sean Smith, Tyrone Woods, and Glen Doherty died in the attack at the Mission and the nearby Annex in Benghazi. The announcement was made by Assistant Attorney General for National Security Matthew G. Olsen, U.S. Attorney for the District of Columbia Matthew M. Graves, Assistant Director David J. Scott of the FBI’s Counterterrorism Division, and Assistant Director in Charge James E. Dennehy of the FBI’s New York Field Office. On June 15, 2014, Khatallah was captured in Libya and brought to the United States to face trial in the U.S. District Court for the District of Columbia. On Nov. 28, 2017, at his original sentencing, Khatallah was sentenced to 22 years in federal prison after a federal jury found him guilty of one count of conspiracy to provide material support or resources to terrorists, one count of providing material support or resources to terrorists, one count of maliciously destroying and injuring dwellings and property and placing lives in jeopardy within the special maritime and territorial jurisdiction of the United States, and one count of using and carrying a semiautomatic assault rifle during a crime of violence. Khatallah appealed his conviction, and the government cross-appealed the sentence imposed. On July 26, 2022, the D.C. Circuit affirmed the conviction, but, having found that the defendant’s “sentence [was] substantively unreasonably low in light of the gravity of his crimes of terrorism” the court reversed the sentence and remanded for resentencing. U.S. District Court Judge Christopher Cooper today resentenced Khatallah to 28 years. According to the government’s evidence, Khatallah was a leader of an extremist militia named Ubaydah bin Jarrah, which operated outside the law, and in the months prior to the attacks, he sought to incite violence by his and other militia groups against the presence of the United States in Libya. In early September 2012, he and other members of his group mobilized for an attack by stockpiling truckloads of weaponry. On the night of Sept. 11, 2012, according to the government’s evidence, Khatallah directed his group to carry out the violence, striking first at the U.S. Special Mission in Benghazi. A group of men, armed with AK-47 rifles, grenades, and other weapons, swept into the Mission compound, setting fires and breaking into buildings. During that violence, Ambassador Stevens and Mr. Smith valiantly tried to protect themselves when the attackers stormed into a villa, but they were fatally overcome by thick, black smoke when the attackers set a fire. A State Department employee, who tried to guide them to safety, was injured. Before, during and after the attack, Khatallah maintained contact with his group in a series of cellphone calls. Also, according to the government’s evidence, for much of the attack, he positioned himself on the perimeter of the compound and kept others, including emergency responders, from getting to the scene. The government’s evidence also showed that Khatallah made calls to leaders of other militia groups warning them not to interfere with the attack. Following the attack at the Mission, in the early hours of Sept. 12, 2012, the violence continued at a nearby CIA Annex, first with gunfire and then with a precision mortar attack. Mr. Woods and Mr. Doherty died in the mortar attack, and a State Department employee and U.S. government security specialist were seriously wounded. This case was investigated by the FBI New York Field Office’s Joint Terrorism Task Force with substantial assistance from various other government agencies, including the two victim agencies, the CIA and the Department of State. This latest proceeding in the case was handled by Assistant U.S. Attorney John Crabb, Jr., and Special Assistant U.S. Attorney Michael C. DiLorenzo. Assistance also was provided by Trial Attorney Joseph Kaster of the National Security Division’s Counterterrorism Section and Victim/Witness Advocate Yvonne Bryant of the U.S. Attorney’s Office for the District of Columbia. 14cr0141 ### Twitter , Instagram , and YouTube


title: Owner Of Online Luxury Baby Boutique Sentenced To 90 Months For Defrauding Covid-19 Relief Programs

component: USAO - Colorado

body_text: DENVER - The United States Attorney’s Office for the District of Colorado announces that Shambrica Washington, 39, now a resident of Parker, Texas, was sentenced to 90 months in prison to be followed by three years of supervised release, and restitution of $542,924.45 after being found guilty by a federal jury on 31 counts including wire fraud, bank fraud, money laundering, and false claims offenses. According to facts established at trial, Washington obtained loans from the Small Business Administration for two Economic Injury Disaster Loans (EIDL) and from JP Morgan Chase for two Paycheck Protection Program (PPP) loans for a total of $485,749.00 between March of 2020 and July of 2020. During that time, Washington obtained the loans under two business names. One was “Tiny Toes and Tiaras,” which was an online luxury baby boutique based in Colorado Springs. To obtain the fraudulent loans, Washington misrepresented how many people were employed by her businesses and the businesses’ wages, revenues, and costs of operation. She used the funds to purchase a car, a custom-built home, pay for elective surgery, and pay credit card debt and other bills. She then applied for millions of dollars in additional loans, grants, and tax credits, including by applying for advance tax credits from the Internal Revenue Service and a $6 million grant through a Small Business Administration program intended for shuttered concert venues. “People who steal taxpayer dollars for personal benefit can and will pay the price,” said Acting United States Attorney for the District of Colorado Matt Kirsch. “Our office has and will continue to find people who have abused Covid-19 funds and prosecute them to the fullest extent of the law.” “Shambrica Washington fraudulently obtained PPP and EIDL designated to provide Americans financial relief during the COVID-19 pandemic,” said Tom Demeo, Acting Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “Washington’s sentence demonstrates the federal government's commitment to holding individuals accountable who defrauded critical programs that served to provide aid for families and small businesses.” United States District Court Judge William J. Martinez presided over the trial. IRS Criminal Investigation and the FBI Denver Field Office conducted the investigation. Assistant United States Attorneys Craig Fansler and Taylor Glogiewicz handled the prosecution. 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 . On July 11, 2023, the Attorney General selected the District of Colorado’s U.S. Attorney’s Office to head one of five national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-results-nationwide-covid-19-fraud-enforcement-action . 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: San Francisco Software Engineering Manager Convicted Of Tax Evasion

component: USAO - California, Northern

body_text: SAN FRANCISCO – A federal jury in San Francisco returned a guilty verdict against Dwayne Lorenzo Richardson on three counts of tax evasion, announced United States Attorney Ismail J. Ramsey and Internal Revenue Service Criminal Investigation (IRS-CI) Acting Special Agent in Charge Michael Mosley. The guilty verdict followed a three-day jury trial before the Honorable William Alsup, Senior U.S. District Judge. A three-count indictment was filed on June 27, 2023, charging Richardson with tax evasion in violation of 26 U.S.C. § 7201. According to court documents and evidence presented at trial, Richardson, 53, of San Francisco, evaded his personal income taxes for tax years 2017, 2018, and 2019 by claiming to owe only about $28,496 in total tax when he made over $1.2 million as a software engineering manager. Richardson did so by declaring over $1.1 million in medical expenses on his tax returns, overstating those expenses by more than $945,000. Richardson received tax refunds totaling over $165,000 for the three charged tax years, according to evidence presented at trial. Richardson then lied to an IRS revenue agent in two audit interviews, stating that the $1.1 million of medical expenses were related to an appendectomy. But according to the court record, Richardson paid no more than a few hundred dollars for treatment related to the appendectomy, which took place in 2010, not 2017, 2018, or 2019. As Richardson explained to one of his representatives in the tax audit, Richardson deducted nonexistent medical expenses from his taxes for multiple years because he had not been “caught” the first time he did it. Assistant United States Attorneys Jared S. Buszin and Ryan Rezaei and Special Assistant United States Attorney Matthew Chou are prosecuting the case, with assistance from Helen Yee. The prosecution is the result of an investigation by IRS-CI. Richardson’s sentencing hearing is set for Jan. 14, 2025. Richardson faces a maximum statutory penalty of five years in prison and a $100,000 fine on each of the three counts. However, any sentence will be imposed only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.


title: Discharged Army Soldier Formerly Based in Hawaii Sentenced to 3 Months in Prison for Theft from Government

component: USAO - Hawaii

body_text: HONOLULU – United States Attorney Clare E. Connors announced that Andre Fulton, II, 30, of Georgia, was sentenced today by U.S. District Judge Jill A. Otake to three months in prison followed by three years of supervised release for theft of government money. Fulton was also ordered to pay $202,309.27 in restitution and a $100 fine. According to information provided to the court, in January 2018, the defendant, while stationed at Fort Hood, Texas, entered a fraudulent marriage. Thereafter, his co-conspirator filed an application for a change in immigration status, based on her fraudulent marriage to the defendant. The defendant admitted in his plea agreement he knew the purpose of the fraudulent marriage was to permit his co-conspirator, who was not a United States citizen, to evade the immigration laws of the United States and remain in the United States illegally. The defendant further admitted that the marriage was fraudulent because, among other things, the defendant and his co-conspirator were not romantically involved, never lived together, did not intend to establish a life together, and married only for the purpose of using the marriage ceremony to facilitate their fraudulent scheme. The defendant received several thousand dollars as payment to enter the fraudulent marriage. In May 2019, the Army transferred the defendant to Fort Shafter, Hawaii. His co-conspirator and her minor daughter remained on the mainland. The defendant admitted that in August and September 2019, he submitted paperwork claiming, falsely, that his co-conspirator and her minor daughter were living with the defendant, in Hawaii, as his dependents. If they were truly his dependents, the defendant would have been entitled to additional money for housing allowances, medical coverage, and cost of living allowances. As a result of the defendant’s deceit, a non-citizen was able to maintain her status in the United States and the government paid out at least $202,039.27 (Housing Allowances - $166,071.35; Medical Expenses - $30,214.40; and Cost of Living Adjustment - $5,753.52) in unauthorized benefits. “While the United States appropriately confers significant benefits upon our military personnel for their service, it does so with the understanding that such benefits will be not exploited or misused,” said U.S. Attorney Clare E. Connors. “Here, defendant Fulton exploited his position with the United States military to violate our immigration laws and defraud the government. We will hold those who abuse our laws and privileges accountable under the law.” “The successful prosecution of this case highlights the Department of the Army Criminal Investigation Division’s unwavering commitment to upholding the integrity of our military and ensuring those who violate the public’s trust are held accountable,” said Special Agent-in-Charge Ruben R. Santiago, Department of the Army Criminal Investigation Division’s Pacific Field Office. “Engaging in fraudulent activities erodes confidence in our institutions and diverts funds and resources that should be dedicated to our nation’s defense.” “HSI is committed to safeguarding the nation through protecting the integrity of our country’s immigration system,” said HSI’s Acting Special Agent in Charge Lucia Cabral-DeArmas. “Through our partnerships with federal agencies, HSI ensures the benefits afforded to honorable service members are not abused.” The investigation was conducted by the U.S. Citizenship and Immigration Services, Fraud Detection and National Security Directorate; Army Criminal Investigation Division; Defense Criminal Investigative Service; and Homeland Security Investigations. Assistant U.S. Attorney Darren W.K. Ching prosecuted the case.


title: Rock Island, Illinois Man Sentenced to 84 Months in Federal Prison for Firearms Charge

component: USAO - Iowa, Southern

body_text: DAVENPORT, Iowa – A Rock Island man was sentenced September 24, 2024, to 84 months in federal prison for possessing a firearm as a felon. According to public court documents, in July 2023, Daryel Deanthony Shears, 20, was a passenger in a vehicle stopped by officers with the Davenport Police Department. Shears was arrested on his outstanding state warrant for not returning to a residential facility in October 2021. In the vehicle, law enforcement located a loaded, stolen handgun. The Iowa Department of Criminal Investigations (DCI) Criminalistics Laboratory located Shears DNA profile on the handgun. Shears was convicted for previous felony state crimes in Iowa and was therefore prohibited from possessing firearms. After completing his term of imprisonment, Shears will be required to serve a three-year term of supervised release. There is no parole in the federal system. United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.


title: Coralville Man Sentenced to 78 Months in Federal Prison for Assault Charge

body_text: DAVENPORT, Iowa – A Coralville man was sentenced September 24, 2024, to 78 months in federal prison for assault on person assisting federal officer. There is no parole in the federal system. According to public court documents and evidence presented at sentencing, Jorey Daniel Karl Butterbaugh, 33, was convicted in November 2023 of possession with intent to distribute methamphetamine and possession of a firearm in the United States District Court for the Southern District of Iowa. Following his sentencing, and while awaiting transport to a Bureau of Prisons (BOP) facility, Butterbaugh was temporarily held at the Muscatine County (Iowa) Jail. On November 13, 2023, Butterbaugh assaulted a Muscatine County correctional officer, who was conducting an internal investigation of contraband within the jail. United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the United States Marshal’s Service and Muscatine County Sheriff’s Office.


title: Cincinnati man pleads guilty to selling machinegun, possessing firearm within 1,000 feet of local high school

component: USAO - Ohio, Southern

body_text: CINCINNATI – Antonio White, 19, of Cincinnati, pleaded guilty in U.S. District Court to three separate gun crimes. White pleaded guilty to attempted firearm trafficking, illegal possession of a machine gun and possession of a firearm in a school zone. According to court documents, throughout the course of the investigation, White sold 11 firearms, one machine gun conversion device, a bulletproof vest, two extended pistol magazines and a 50-round drum. For example, in April 2024, White sold undercover agents a pistol with a “switch” machine gun conversion device. The firearm was an untraceable “ghost gun” that had no serial number. White believed the firearms were being trafficked out-of-state to have their serial numbers obliterated and sold to gang members. White also exited Dohn Community High School on 4 th Street in Cincinnati while possessing a pistol in April 2024. White was arrested in May 2024. He faces up to 15 years in prison and up to five years consecutive to that. Congress sets maximum statutory sentences, and sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors at a future hearing. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Cincinnati Police Chief Teresa A. Theetge announced the guilty plea entered today before Senior U.S. District Judge Micheal R. Barrett. Assistant United States Attorneys Ryan A. Keefe and Timothy D. Oakley are representing the United States in this case. # # #


title: Waterloo Man Sentenced to Prison after Being Caught with “Ghost Gun” at High School Football Game

component: USAO - Iowa, Northern

body_text: A Waterloo man who possessed a loaded privately made firearm, also known as a “ghost gun,” and ammunition at a Waterloo high school football game was sentenced yesterday to nearly four years in prison. Dayton Amaru Shakur Bruce, age 20, from Waterloo, Iowa, received the prison term after an April 4, 2024, guilty plea to possession of ammunition by a drug user. Information disclosed during the plea and sentencing hearings revealed that, in August 2023, Waterloo police officers responded to Waterloo East High School after a fight broke out. Officers observed Bruce in the crowd and attempted to contact him after learning he may be involved in the fight. Bruce ran and officers chased him throughout the parking lot. Along the way, Bruce threw a fully loaded “ghost gun” in the back of a pickup truck. Bruce did not know the owner of the pickup truck. Officers took Bruce into custody and located the gun in the pickup truck. Bruce was under the influence of marijuana at the time and was a regular user of marijuana. “Ghost guns” are guns which are often assembled from kits, do not contain serial numbers, and are sold without background checks, making them difficult to trace and easy to acquire by criminals. At sentencing, the court also found that Bruce was involved in a shooting in June 2023. During that incident, Bruce shot into a car hitting the victim in the back of the head. The victim survived that incident. Bruce was later located by police and the gun used in that shooting was found nearby. Bruce was sentenced in Cedar Rapids by Chief United States District Court Judge C.J. Williams. Bruce was sentenced to 46 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Waterloo Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Federal Bureau of Investigations. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 24gv-CR-2010. Follow us on Twitter @USAO_NDIA.


title: Southeast Missouri Felon Caught Twice with Guns, Drugs Sentenced to 110 Months in Prison

component: USAO - Missouri, Eastern

body_text: CAPE GIRARDEAU – U.S. District Judge Rodney W. Sippel on Thursday sentenced a convicted felon who was caught twice with guns and drugs to 110 months in prison. Joshua Allen Morris, 39, pleaded guilty in U.S. District Court in Cape Girardeau in June to one count of being a felon in possession of a firearm. He admitted being caught with two handguns and methamphetamine on Feb. 20, 2023, during a traffic stop by the Dunklin County Sheriff’s Office. On June 11, 2023, the Kennett Police Department received a report that Morris pistol-whipped someone at a store. Officers found Morris and discovered a vacuum sealed bag of marijuana, 23 grams of meth, a digital scale and a .45-caliber semi-automatic pistol under the hood of his car. Morris has prior felony convictions and is thus barred from possessing a firearm. The Dunklin County Sheriff’s Office and Kennett Police Department investigated the case. Assistant U.S. Attorney Julie Hunter prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.