title: Chinese Woman Convicted of Setting Fire to a Montgomery Church and Illegally Possessing a Firearm

component: USAO - Alabama, Middle

body_text: Montgomery, Alabama – Yesterday, a federal jury in Montgomery convicted 29-year-old Xiaoqin Yan, a Chinese national, of arson and possession of a firearm by an illegal alien, announced United States Attorney Sandra J. Stewart. According to court records and evidence presented at trial, during the early morning hours of September 30, 2021, the Montgomery Fire Department (MFD) responded to a fire reported inside First Baptist Church Montgomery. The MFD was able to extinguish the blaze, but only after the church sustained significant damage. Surveillance videos taken from inside the church the day before the fire showed a woman carrying duffel bags and a plastic bag into the church during its Wednesday night service. Just after 2:00 a.m. on September 30, video showed the same individual removing silver containers from one of her bags and igniting multiple fires around the building. Investigators identified the vehicle driven by the suspect and obtained a tag number linking the vehicle to Yan. Law enforcement also learned that, on multiple occasions before the fire, church employees encountered someone matching Yan’s description on the church’s campus. During one encounter, a staff member escorted her off of church property due to her odd behavior. Investigators ultimately identified Yan as the same person encountered by the staff and in the surveillance videos. During Yan’s arrest at a residence in Montgomery on October 4, 2021, agents found duffel bags identical to the ones seen in the church surveillance videos, as well as clothing matching the type worn by the suspect, gas containers, starter logs, and lighters. Officers also found a handgun. At the time of the arson and her arrest, Yan was in the United States illegally due to overstaying her non-immigrant visa and, therefore, could not lawfully possess a firearm. Following the June 7, 2023, verdict, Yan faces a sentence of up to 20 years in federal prison. A sentencing hearing will be scheduled for Yan in the coming months. The Montgomery Fire/Rescue Bureau of Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service Gulf Coast Regional Fugitive Task Force, the U.S. Department of Homeland Security, and U.S. Immigration and Customs Enforcement investigated this case, with assistance from the Montgomery Police Department. Assistant U.S. Attorneys B. Chelsea Phillips and Brandon W. Bates are prosecuting the case.


title: Russian Nationals Charged With Hacking One Cryptocurrency Exchange And Illicitly Operating Another

component: Criminal Division

body_text: Damian Williams, the United States Attorney for the Southern District of New York, Kenneth A. Polite, Jr., the Assistant Attorney General for the Department of Justice’s Criminal Division, Ismail J. Ramsey, the United States Attorney for the Northern District of California, James C. Lee, the Chief of the Internal Revenue Service-Criminal Investigation (“IRS-CI”), Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), William Mancino, the Special Agent in Charge of the U.S. Secret Service’s Criminal Investigative Division (“USSS”), and Katrina W. Berger, the Acting Executive Associate Director of Homeland Security Investigations (“HSI”), announced the unsealing of charges against ALEXEY BILYUCHENKO and ALEKSANDR VERNER, both Russian nationals. BILYUCHENKO and VERNER are charged in the Southern District of New York with conspiring to launder approximately 647,000 bitcoins from the 2011 hack of Mt. Gox (the “SDNY Case”). BILYUCHENKO is separately charged in the Northern District of California with conspiring with Alexander Vinnik to operate the illicit cryptocurrency exchange BTC-e from 2011 to 2017 (the “NDCA Case”). The SDNY Case has been assigned to U.S. District Judge P. Kevin Castel. The NDCA Case has been assigned to U.S. District Judge Chhabria. U.S. Attorney Damian Williams said: “As cyber criminals have become more sophisticated in their methods of thievery, our career prosecutors and law enforcement partners, too, have become experts in the latest technologies being abused for malicious purposes. As alleged, Alexey Bilyuchenko and Aleksandr Verner thought they could outsmart the law by using sophisticated hacks to steal and launder massive amounts of cryptocurrency, a novel technology at the time, but the charges unsealed demonstrate our ability to tenaciously pursue these alleged criminals, no matter how complex their schemes, until they are brought to justice.” Assistant Attorney General Kenneth A. Polite, Jr. said: “This announcement marks an important milestone in two major cryptocurrency investigations. As alleged in the indictments, starting in 2011, Bilyuchenko and Verner stole a massive amount of cryptocurrency from Mt. Gox, contributing to the exchange’s ultimate insolvency. Armed with the ill-gotten gains from Mt. Gox, Bilyuchenko allegedly went on to help set up the notorious BTC-e virtual currency exchange, which laundered funds for cyber criminals worldwide. These indictments highlight the department’s unwavering commitment to bring to justice bad actors in the cryptocurrency ecosystem and prevent the abuse of the financial system.” NDCA U.S. Attorney Ismail J. Ramsey said: “For years, Bilyuchenko and his coconspirators operated a digital currency exchange that enabled criminals around the world – including computer hackers, ransomware actors, narcotics rings, and corrupt public officials – to launder billions of dollars. The Department of Justice will work tirelessly to identify cyber criminals, no matter where they are. And Bilyuchenko and his coconspirators will learn that the Department of Justice has long arms and an even longer memory for crimes that harm our communities.” IRS-CI Chief James C. Lee said: “Cryptocurrency offers a new way for criminals to steal and launder money, but greed and deceit are nothing new. IRS-CI is specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed. IRS-CI is proud to stand with our law enforcement partners to announce these indictments.” FBI Assistant Director in Charge Michael J. Driscoll said: “As alleged in the indictment, the defendants gained unauthorized access to a server used by Mt. Gox to house cryptocurrency wallets. Mt. Gox was the world’s largest bitcoin exchange at the time, and the defendants used their unauthorized access to steal the bulk of the bitcoins held by Mt. Gox customers. The FBI and our partners will continue to work tirelessly to protect the integrity of all of our financial markets.” USSS Special Agent in Charge William Mancino said: “The Secret Service has a long tradition of pursuing and bringing to justice those who aim to exploit our financial systems and target innocent victims. Working together with our local, state, and federal law enforcement partners, we will continue to investigate criminal organizations that operate in the ever-evolving cyber domain.” HSI Acting Executive Associate Director Katrina W. Berger said: “Homeland Security Investigations continues to investigate cyber criminals illicitly operating in virtual spaces, and we are proud to have worked collaboratively with our law enforcement partners to bring these two individuals to justice. Our special agents continue to investigate transnational criminal organizations operating in emerging technologies, leveraging our broad authorities to identify and dismantle those behind sophisticated crypto scams.” The SDNY Case According to the allegations in the Indictment unsealed in the Southern District of New York: [1] In or about September 2011, BILYUCHENKO, VERNER, and their co-conspirators gained unauthorized access to the server holding the cryptocurrency wallets for Mt. Gox. At the time, Mt. Gox was the largest bitcoin exchange in existence, servicing thousands of users worldwide, including users in the Southern District of New York. Mt. Gox stored the cryptocurrency wallets containing its customers’ bitcoin and the corresponding private keys used to authorize bitcoin transfers from those wallets on a computer server in Japan. BILYUCHENKO, VERNER, and their co-conspirators used their unauthorized access to Mt. Gox’s server to fraudulently cause bitcoins to be transferred from Mt. Gox’s wallets to bitcoin addresses controlled by BILYUCHENKO, VERNER, and their co-conspirators. From September 2011 through at least May 2014, BILYUCHENKO, VERNER, and their co-conspirators caused the theft of at least approximately 647,000 bitcoins from Mt. Gox, representing the vast majority of the bitcoins belonging to Mt. Gox’s customers. BILYUCHENKO, VERNER, and their co-conspirators laundered the bulk of the bitcoins stolen from Mt. Gox principally through bitcoin addresses associated with accounts BILYUCHENKO, VERNER, and their co-conspirators controlled at two other online bitcoin exchanges (“Exchange-1” and “Exchange-2”), as well as a particular user account on Mt. Gox itself. In furtherance of the money laundering scheme, in or about April 2012, BILYUCHENKO, VERNER, and their co-conspirators negotiated and entered into a fraudulent contract (the “Advertising Contract”) to provide purported advertising services to a bitcoin brokerage service based in the Southern District of New York (the “New York Bitcoin Broker”). Under the guise of the Advertising Contract, in order to conceal and liquidate the bitcoins stolen from Mt. Gox, BILYUCHENKO and VERNER made regular requests to the owner and operator of the New York Bitcoin Broker to make large wire transfers into various offshore bank accounts, including in the names of shell corporations, controlled by BILYUCHENKO, VERNER, and their co-conspirators. In accordance with these requests, between in or about March 2012 and in or about April 2013, the New York Bitcoin Broker transferred more than approximately $6.6 million to overseas bank accounts controlled by BILYUCHENKO, VERNER, and their co-conspirators. In exchange for the wire transfers, the New York Bitcoin Broker received “credit” on Exchange-1, through which BILYUCHENKO, VERNER, and their co-conspirators laundered more than 300,000 of the bitcoins stolen from Mt. Gox. The fraudulent Advertising Contract with the New York Bitcoin Broker enabled BILYUCHENKO, VERNER, and their co-conspirators to conceal and liquidate bitcoins stolen through the Mt. Gox hack. Mt. Gox ceased operations in 2014 after the theft was revealed. The NDCA Case According to the allegations in the Indictment unsealed in the Northern District of California: [2] BILYUCHENKO worked with Alexander Vinnik and others to operate the BTC-e exchange from 2011 until it was shut down by law enforcement in July 2017. During that time period, BTC-e was one of the world’s largest cryptocurrency exchanges and was one of the primary ways by which cyber criminals around the world transferred, laundered, and stored the criminal proceeds of their illegal activities. BTC-e served over one million users worldwide, moving millions of bitcoin worth of deposits and withdrawals and processing billions of dollars’ worth of transactions. BTC-e received criminal proceeds of numerous computer intrusions and hacking incidents, ransomware events, identity theft schemes, corrupt public officials, and narcotics distribution rings. * * * The SDNY Indictment charges BILYUCHENKO, 43, and VERNER, 29, both Russian nationals, with conspiracy to commit money laundering. If convicted of the charge in the SDNY Indictment, each defendant faces a maximum penalty of 20 years in prison. The NDCA Indictment charges BILYUCHENKO with conspiracy to commit money laundering and operating an unlicensed money services business. If convicted of the charges in the NDCA Indictment, BILYUCHENKO faces a maximum penalty of 25 years in prison. The maximum potential sentences set forth above are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the Court. Mr. Williams praised IRS-CI and the FBI for their work in investigating the SDNY Case. The SDNY Case is being handled by the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office for the Southern District of New York. Assistant U.S. Attorney Olga I. Zverovich is in charge of the prosecution of the SDNY Case. The NDCA Case is behind handled by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California and the Criminal Division’s Computer Crime and Intellectual Property Section (“CCIPS”). CCIPS Trial Attorney C. Alden Pelker and NDCA Assistant U.S. Attorney Claudia Quiroz, both members of the National Cryptocurrency Enforcement Team, and NDCA Assistant U.S. Attorney Katherine Lloyd-Lovett are prosecuting the case. The FBI; IRS-CI Oakland Field Office and Cyber Crime Unit in Washington, D.C.; U.S. Secret Service Criminal Investigative Division; and Homeland Security Investigations are investigating the case. The Justice Department’s Office of International Affairs provided invaluable assistance. The charges in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation. [2] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation. U.S. v. Bilyuchenko and Verner Indictment


title: Columbia Man Sentenced to Nearly Five Years in Federal Prison for Theft of Firearms from Retail Store

component: USAO - South Carolina

body_text: COLUMBIA, SOUTH CAROLINA — Christopher Cunningham, 34, of Columbia, was sentenced to 57 months in federal prison for stealing firearms from a licensed firearms dealer. Evidence presented to the Court showed that on March 6, 2022, at approximately 1:30 a.m., Cunningham and a co-conspirator broke into a retail store on Garner’s Ferry Road and stole two shotguns and two rifles by forcefully opening a display case in the sporting goods section. The City of Columbia Police Department responded, viewed the surveillance video of the incident, and collected fingerprints from the display case. Cunningham was identified from the surveillance footage, and further investigation confirmed the fingerprints collected from the display case belonged to Cunningham. Cunningham had prior convictions for burglary, grand larceny, malicious injury to personal property, and multiple shopliftings. United States District Judge Sherri A. Lydon sentenced Cunningham to 57 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the City of Columbia Police Department. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case. ###


title: Indictment Charges Connecticut, Kansas, and California Men with Operating Gun Trafficking Ring

body_text: An investigation into an organization that trafficked numerous firearms into Connecticut has resulted in federal charges against residents of Connecticut, Kansas, and California. Today’s announcement was made by Vanessa Roberts Avery, United States Attorney for the District of Connecticut; Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; James Ferguson, Special Agent in Charge, ATF Boston Field Division; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations (HSI), New England; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. On May 31, 2023, a federal grand jury in Hartford returned a 19-count indictment charging the following men with engaging in a firearms trafficking conspiracy, and additional offenses: LUIS PEREZ , 44, of Waterbury, Connecticut ALGELLY DIAZ , 40, of Hartford, Connecticut BRIAN BAKER , 46, of Scott City, Kansas RAMON PICHARDO , 33, of Elkhart, Kansas FERNANDO SOTO, JR. , 51, of Diamond Bar, California U.S. Attorney Avery noted that this case is being prosecuted, in part, under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms. As alleged in court documents and statements made in court, a joint investigation revealed that Perez was acquiring firearms that were purchased by co-conspirators in Kansas and shipped through the U.S. Mail to a stash location that Diaz maintained in Hartford. Perez coordinated the purchase of the firearms through Baker in Kansas and Soto in California. Perez then obtained the firearms from Diaz and sold them to others throughout Connecticut. Perez, Diaz, Baker, and Soto are all convicted felons who cannot not lawfully purchase or possess firearms. Baker used straw purchasers, including Pichardo, to purchase firearms from licensed gun dealers in Kansas. In May 2023, members of the FBI Waterbury Safe Streets Task Force conducted controlled purchases of a total of nine firearms from Perez. It is further alleged that between August 2020 and May 2023, Pichardo purchased at least 73 firearms from a licensed gun dealer in Deerfield, Kansas. To date, six of these firearms have been recovered by law enforcement in Connecticut, Michigan, and California. A firearm purchased by Pichardo in July 2022 was recovered on August 27, 2022, in San Bernardino, California, at the scene of the homicide of a juvenile. Perez, Diaz, Baker, and Pichardo were arrested on federal criminal complaints on May 19, 2023. On that date, investigators executed search warrants at locations in Connecticut, Kansas, and California. A search of Perez’s Waterbury residence and vehicle revealed nine firearms; more than 200 rounds of ammunition; distribution quantities of cocaine, crack cocaine, and fentanyl/heroin; items used to process and package narcotics for street sale; and more than $7,000 in cash. A search of Diaz’s residence revealed approximately 90 rounds of ammunition, and a search of Pichardo’s residence revealed six firearms. In addition, a court-authorized search of a package that was shipped to Diaz and seized from the mail stream revealed an additional three firearms. The charge of engaging in a firearms trafficking conspiracy carries a maximum term of imprisonment of 15 years. The indictment also charges Perez, Baker, and Diaz with multiple counts of firearms trafficking, an offense that also carries a maximum term of imprisonment of 15 years. In addition, Perez, Baker, and Soto are charged with unlawfully mailing firearms, an offense that carries a maximum term of imprisonment of two years. The indictment also charges Perez with unlawful possession of a firearm by a felon, which carries a maximum term of imprisonment of 15 years; possession of a firearm in furtherance of a drug trafficking crime, which carries a mandatory consecutive sentence of at least five years; possession with intent to distribute, and distribution of, cocaine, which carries a maximum term of imprisonment of 20 years; and possession with intent to distribute 500 grams or more of cocaine and quantities of heroin and fentanyl, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years. In addition, Diaz is charged with unlawful possession of ammunition by a felon, which carries a maximum term of imprisonment of 15 years. Perez, Diaz, and Pichardo appeared yesterday before U.S. Magistrate Judge Robert M. Spector in New Haven and entered pleas of not guilty to the charges against them. Perez and Diaz are detained, and Pichardo is released on a $25,000 bond. Soto, who was arrested on June 5 and currently released on a $60,000 bond, and Baker, who is detained, are scheduled to be arraigned in Connecticut on June 16. U.S. Attorney Avery stressed that an indictment is not evidence of guilt. A charge is only an allegation, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. This matter is being investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, the Waterbury Police Department, the Connecticut State Police, and the Chino (Calif.) Police Department. This case is being prosecuted by Assistant U.S. Attorney Natasha M. Freismuth 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 . U.S. Attorney Avery thanked the U.S. Attorney’s Office for the District of Kansas, the U.S. Attorney’s Office for the Central District of California, and the U.S. Attorney’s Office for the Eastern District of Michigan for their assistance in the investigation and prosecution of this case.


title: Informational: Federal Court arraignments

component: USAO - Montana

body_text: The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt: Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on June 6 was: Jaylin John Ridesatthedoor, 19, of Browning, on charges of attempted kidnapping, assault with a dangerous weapon and assault resulting in serious bodily injury. If convicted of the most serious crime, Ridesatthedoor faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release. Ridesatthedoor was released pending further proceedings. The FBI, Blackfeet Law Enforcement Services and Glacier County Sheriff’s Office investigated the case. PACER case reference. 23-38. The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html . To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl . XXX


component: USAO - California, Northern

body_text: SAN FRANCISCO – The Department of Justice today unsealed charges related to the 2011 hack of the cryptocurrency exchange Mt. Gox and the operation of the illicit cryptocurrency exchange BTC-e. According to court documents, Alexey Bilyuchenko, 43, and Aleksandr Verner, 29, both Russian nationals, are charged with laundering approximately 647,000 bitcoins from their hack of Mt. Gox. Bilyuchenko is also charged with conspiring with Alexander Vinnik to operate BTC-e from 2011 to 2017. “This announcement marks an important milestone in two major cryptocurrency investigations. As alleged in the indictments, starting in 2011, Bilyuchenko and Verner stole a massive amount of cryptocurrency from Mt. Gox, contributing to the exchange’s ultimate insolvency. Armed with the ill-gotten gains from Mt. Gox, Bilyuchenko went on to help set up the notorious BTC-e virtual currency exchange, which laundered funds for cyber criminals worldwide,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These indictments highlight the department’s unwavering commitment to bring to justice bad actors in the cryptocurrency ecosystem and prevent the abuse of the financial system.” Southern District of New York Indictment According to court documents unsealed in the Southern District of New York (SDNY), in or about September 2011, Bilyuchenko, Verner, and their co-conspirators allegedly gained unauthorized access to the server holding the cryptocurrency wallets for Mt. Gox. At the time, Mt. Gox was the largest Bitcoin exchange in existence, servicing thousands of users worldwide. Mt. Gox stored the cryptocurrency wallets containing its customers’ bitcoin, and the corresponding private keys used to authorize bitcoin transfers from those wallets, on a computer server in Japan. “As cyber criminals have become more sophisticated in their methods of thievery, our career prosecutors and law enforcement partners, too, have become experts in the latest technologies being abused for malicious purposes,” said U.S. Attorney Damian Williams for the Southern District of New York. “As alleged, Alexey Bilyuchenko and Aleksandr Verner thought they could outsmart the law by using sophisticated hacks to steal and launder massive amounts of cryptocurrency, a novel technology at the time, but the charges unsealed today demonstrate our ability to tenaciously pursue these alleged criminals, no matter how complex their schemes, until they are brought to justice.” Bilyuchenko, Verner, and their co-conspirators allegedly used their unauthorized access to Mt. Gox’s server to fraudulently cause bitcoin to be transferred from Mt. Gox’s wallets to bitcoin addresses controlled by Bilyuchenko, Verner, and their co-conspirators. From September 2011 through at least May 2014, Bilyuchenko, Verner, and their co-conspirators allegedly caused the theft of at least approximately 647,000 bitcoins from Mt. Gox, representing the vast majority of the bitcoins belonging to Mt. Gox’s customers. Bilyuchenko, Verner, and their co-conspirators allegedly laundered the bulk of the bitcoins stolen through Mt. Gox principally through bitcoin addresses associated with accounts Bilyuchenko, Verner, and their co-conspirators controlled at two other online bitcoin exchanges. “The FBI will continue to work with our U.S. government and international partners to relentlessly pursue and disrupt malicious cyber actors wherever they may reside,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “When cyber criminals engage in fraudulent activity, such as hacking and illicitly operating cryptocurrency exchanges, it is critical that we impose cost on the bad actors and ensure they face justice.” “Cryptocurrency offers a new way for criminals to steal and launder money, but greed and deceit are nothing new,” said Chief Jim Lee of the IRS Criminal Investigation (IRS-CI). “IRS-CI is specially equipped to follow the complex financial trail left by criminals, and we are dedicated to holding those accountable for crimes committed. IRS-CI is proud to stand with our law enforcement partners to announce this indictment.” In furtherance of the money laundering scheme, in or about April 2012, Bilyuchenko, Verner, and their co-conspirators allegedly negotiated and entered into a fraudulent contract (the “Advertising Contract”) to provide purported advertising services to a Bitcoin brokerage service based in the Southern District of New York (the “New York Bitcoin Broker”). Under the guise of the Advertising Contract, in order to conceal and liquidate the bitcoins stolen from Mt. Gox, Bilyuchenko and Verner allegedly made regular requests to the owner and operator of the New York Bitcoin Broker to make large wire transfers into various offshore bank accounts, including in the names of shell corporations, controlled by Bilyuchenko, Verner, and their co-conspirators. In accordance with these requests, between in or about March 2012 and in or about April 2013, the New York Bitcoin Broker allegedly transferred more than approximately $6.6 million to overseas bank accounts controlled by Bilyuchenko, Verner, and their co-conspirators. In exchange for the wire transfers, the New York Bitcoin Broker allegedly received “credit” on Exchange-1, through which Bilyuchenko, Verner, and their co-conspirators allegedly laundered more than 300,000 of the bitcoins stolen from Mt. Gox. The fraudulent Advertising Contract with the New York Bitcoin Broker allegedly enabled Bilyuchenko, Verner, and their co-conspirators to conceal and liquidate bitcoins stolen through the Mt. Gox Hack. Mt. Gox ceased operations in 2014 after the theft was revealed. Northern District of California Indictment According to court documents unsealed in the Northern District of California (NDCA), Bilyuchenko allegedly worked with Vinnik and others to operate the BTC-e exchange from 2011 until it was shut down by law enforcement in July 2017. During that period, BTC-e was one of the world’s largest cryptocurrency exchanges and was one of the primary ways by which cyber criminals around the world transferred, laundered, and stored the criminal proceeds of their illegal activities. “For years, Bilyuchenko and his co-conspirators operated a digital currency exchange that enabled criminals around the world – including computer hackers, ransomware actors, narcotics rings, and corrupt public officials – to launder billions of dollars,” said U.S. Attorney Ismail J. Ramsey for the Northern District of California. “The Department of Justice will work tirelessly to identify cyber criminals, no matter where they are. And Bilyuchenko and his co-conspirators will learn that the Department of Justice has long arms and an even longer memory for crimes that harm our communities.” “Bilyuchenko conspired with Vinnik and others to create a lawless and anonymous space in service to cybercriminals and cryptocurrency laundering,” said Robert Tripp, SAC of the FBI San Francisco Field Office. “FBI investigators were committed to shining a light on this activity through dogged investigation, technical skill, and partnerships. We will continue to work with our local and global law enforcement colleagues to identify, pursue, and arrest criminals no matter where they reside and no matter how long it takes.” BTC-e served over one million users worldwide, moving millions of bitcoin worth of deposits and withdrawals, and processing billions of dollars’ worth of transactions. BTC-e received criminal proceeds of numerous computer intrusions and hacking incidents, ransomware events, identity theft schemes, corrupt public officials, and narcotics distribution rings. “The Secret Service has a long tradition of pursuing and bringing to justice those who aim to exploit our financial systems and target innocent victims,” said Special Agent in Charge William Mancino of the U.S. Secret Service’s Criminal Investigative Division. “Working together with our local, state, and federal law enforcement partners, we will continue to investigate criminal organizations that operate in the ever-evolving cyber domain.” “Homeland Security Investigations (HSI) continues to investigate cyber criminals illicitly operating in virtual spaces, and we are proud to have worked collaboratively with our law enforcement partners to bring these two individuals to justice,” said Acting Executive Associate Director Katrina W. Berger of HSI. “Our special agents continue to investigate transnational criminal organizations operating in emerging technologies, leveraging our broad authorities to identify, and dismantle those behind sophisticated crypto-scams.” “HSI San Francisco/NorCal is on the alert to money laundering via crypto currency and other criminal activity that pervade the dark web,” said Special Agent in Charge Tatum King of HSI San Francisco. “In addition to the multi-year efforts of HSI personnel, partnerships continue to be key in this monumental and complex work and we are appreciative of joint efforts with FBI San Francisco, U.S. Secret Service San Francisco, IRS-CI San Francisco, and the Northern District U.S. Attorney’s Office, all of whom have expended significant resources in pursuit of this investigation.” The SDNY indictment charges Bilyuchenko and Verner with conspiracy to commit money laundering. The NDCA indictment charges Bilyuchenko with money laundering conspiracy and operating an unlicensed money services business. The U.S. Attorney’s Office for the Southern District of New York’s Complex Frauds and Cybercrime Unit is handling the SDNY case. The FBI and IRS-CI are investigating the case and SDNY Assistant U.S. Attorney Olga I. Zverovich is prosecuting the case. The Corporate and Securities Fraud Section of the U.S. Attorney’s Office for the Northern District of California and the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are handling the NDCA case. The FBI; IRS-CI Oakland Field Office and Cyber Crime Unit in Washington, D.C.; U.S. Secret Service Criminal Investigative Division; and Homeland Security Investigations are investigating the case. CCIPS Trial Attorney C. Alden Pelker and NDCA Assistant U.S. Attorney Claudia Quiroz, both members of the National Cryptocurrency Enforcement Team, and NDCA Assistant U.S. Attorney Katherine Lloyd-Lovett are prosecuting the case. The Justice Department’s Office of International Affairs provided invaluable assistance. A criminal indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. biluchenko_indicment_redacted_cr-22-0255_vc.pdf u.s._v._bilyuchenko_and_verner_indictment.pdf


title: Federal Defendant Receives 19+ Year Sentence for Trafficking Methamphetamine

component: USAO - Louisiana, Western

body_text: LAKE CHARLES, La. - United States Attorney Brandon B. Brown announced that a Lake Charles man has been sentenced by United States District Judge James D. Cain, Jr. for trafficking methamphetamine. Andrew Simmons, III , 42, was sentenced to 235 months (19 years, 7 months) in prison, followed by 5 years of supervised release, for possession of methamphetamine with intent to distribute. On August 10, 2021, troopers with the Louisiana State Police and other law enforcement agents with the Anti-Drug Task Force based in Calcasieu Parish, attempted to execute an arrest warrant on Simmons. As he exited his residence and got into his vehicle, law enforcement officers activated their emergency lights, but Simmons fled at a high rate of speed. After a short vehicle and foot pursuit, Simmons was apprehended. Officers detected a strong odor of marijuana coming from inside his vehicle and conducted a search of it. Inside the vehicle, officers located a black duffle bag which contained several clear bags containing approximately 4,121 grams of methamphetamine, as well as a loaded Ruger 9mm pistol. Simmons was arrested and charged with possession of methamphetamine with intent to distribute. The case was investigated by the Department of Homeland Security - Criminal Investigation, Louisiana State Police, and Calcasieu Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney Daniel J. Vermaelen. # # #


title: PUERTO RICAN MAN SENTENCED TO 10 YEARS ON COCAINE POSSESSION CHARGE

body_text: St. Thomas, VI – United States Attorney Delia L. Smith announced today that Carlos Caez-Torres, 45, of Puerto Rico, was sentenced by District Court Judge Robert A. Molloy to 120 months incarceration on his conviction of possession with intent to distribute a controlled substance while on board a vessel subject to the jurisdiction of the United States. Molloy also sentenced Caez-Torres to five years of supervised release and ordered him to pay a special assessment of $100.00. According to court documents, in the early morning hours of February 28, 2023, Customs and Border Protection (CBP) Marine Interdiction Unit detected a vessel with two people onboard traveling without navigational lights on the west side of St. Thomas heading towards Puerto Rico. CBP approached the vessel ordering it to stop, but the operator of the vessel refused to comply. The occupants of the vessel were observed throwing a black bag into the ocean. CBP disabled the vessel and later retrieved the black bag from the ocean which contained 18 kilograms of cocaine. The U.S. Customs and Border Protection and Homeland Security Investigations investigated the case, and Assistant United States Attorneys Everard Potter and Natasha Baker prosecuted this case. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.


title: PUERTO RICAN MAN SENTENCED TO 87 MONTHS ON COCAINE POSSESSION CONVICTION

component: Drug Enforcement Administration (DEA)

body_text: St. Thomas, VI – United States Attorney Delia L. Smith announced today that Emanuel Campbell Camacho of Puerto Rico was sentenced to 87 months of imprisonment by Chief District Judge Robert A. Molloy on his conviction of possession with intent to distribute cocaine. According to court documents, on September 22, 2020, Drug Enforcement Administration agents learned that Campbell Camacho and Carlos Rafael Velez-Lopez, both of Puerto Rico, had traveled by commercial flight from Puerto Rico to St. Thomas, and were driving a purple Jeep Wrangler. After two days of surveillance, agents observed Campbell Camacho leave the Windward Passage Hotel as the passenger of a blue Mazda sedan that traveled to a parking lot at Mandela Circle. Campbell Camacho exited his vehicle and leaned into the passenger side of another vehicle parked next to his vehicle. Moments later, Campbell Camacho removed a large duffle bag from the parked vehicle and place it inside his vehicle. Agents followed Campbell Camacho back to Windward Passage Hotel and observed him carrying the duffle bag up to the second floor level of the hotel. As they approached Campbell Camacho, agents also observed Velez-Lopez near the top of the stairs with a cell phone in his hands. Agents later discovered 30 bricks of cocaine in Campbell Camacho’s black duffle bag. A search of Velez-Lopez’s cell phones revealed that Campbell Camacho and Velez-Lopez were in constant contact while Camacho traveled to Mandela Circle to collect the cocaine. Velez-Lopez is scheduled for sentencing on July 7, 2023. The Drug Enforcement Administration investigated this case and Assistant United States Attorney Kyle Payne prosecuted the case. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.


title: THREE CHARGED WITH ILLEGAL ENTRY INTO THE UNITED STATES

component: USAO - Virgin Islands

body_text: St. Thomas, VI – United States Attorney Delia L. Smith announced today that Randy Jimenez-Vargas and Irving Jhon Mendoza-Alcantara, both from the Dominican Republic, and Jonas Alberto Mendez-Garcia, of Venezuelan, were charged with illegally entering the United States. According to court documents, Jimenez-Vargas, Mendoza-Alcantara and o Mendez-Garcia presented themselves for inspection at the Cyril B. King airport in St. Thomas prior to boarding a flight to Washington, DC. During their inspection, Customs and Border Patrol Officers determined that the three individuals were foreign nationals and were not in possession of any legal documents that would permit them to enter the United States. A review of the individuals’ passport stamps revealed that the last stamp in each passport were dated from between March 6, 2023, and May 20, 2023, which corresponded with their exit from a foreign country. Records checks also revealed that neither individual legally entered the United States. If convicted, each faces a maximum penalty of six months in prison. A federal judge will determine any sentence after considering the appropriate statutory factors. United States Customs and Border Protection is investigating the case, and Assistant United States Attorney Adam Sleeper is prosecuting the case. United States Attorney Delia L. Smith reminds the public that a criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: DOMINICAN NATIONAL SENTENCED TO EIGHT MONTHS FOR UNLAWFULLY REENTERING THE UNITED STATES

body_text: St. Thomas, VI – United States Attorney Delia L. Smith announced today that Kelvin Bautista Valdez, 35, of the Dominican Republic, was sentenced to eight months of imprisonment by Chief District Judge Robert A. Molloy, on his conviction of Illegal Reentry into the United States of a Removed Alien. According to court documents, on November 30, 2022, while conducting training operations in Brewers Bay, Customs and Border Patrol Officers observed a vessel that they recognized from a previous smuggling operation involving undocumented migrants. Officers later discovered Valdez among a group of undocumented migrants gathered at the shoreline awaiting transport to Puerto Rico. A record check revealed that Valdez had previously entered the United States and was removed on two prior occasions. When interviewed, Valdez stated that he paid smugglers $26,000.00 cash for his transport to the United States. The case was investigated by United States Customs and Border Protection and Homeland Security Investigations and prosecuted by Assistant United States Attorneys Kyle Payne and Natasha L. Baker.


title: Statement from United States Attorney Prim F. Escalona on Appearance of Joran van der Sloot in Federal Court in Birmingham, Alabama

component: Department of Justice

body_text: BIRMINGHAM, Ala. – Joran van der Sloot , 35, was arraigned today before U.S. Magistrate Judge Gray Borden in Birmingham, Alabama, on one count of extortion and one count of wire fraud for soliciting money from Beth Holloway, Natalee Holloway’s mother, on promises he would reveal the location of her daughter’s remains in Aruba and the circumstances of her 2005 death. Van der Sloot was brought to the United States to stand trial on these charges pursuant to the Extradition Treaty Between the United States of America and the Republic of Peru and will be returned to Peru after this case concludes pursuant to the terms of that same treaty. Assistant United States Attorneys Lloyd C. Peeples, III and Catherine L. Crosby are prosecuting the case. The Justice Department’s Office of International Affairs, FBI, and Peruvian law enforcement authorities have been instrumental in securing the temporary surrender of van der Sloot. An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.


title: Columbia, KC Man Pleads Guilty to $1.1 Million Insurance Fraud Conspiracy

component: USAO - Missouri, Western

body_text: JEFFERSON CITY, Mo. – A Kansas City, Mo., man who formerly lived in Columbia, Mo., has pleaded guilty in federal court to his role in a $1.1 million insurance fraud conspiracy that involved false claims of injuries suffered in car accidents, as well as to his role in a conspiracy to fraudulently obtain COVID-19 relief benefits. Lawrence Courtney Lawhorn, 35, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., on Thursday, June 8, to the charges contained in two separate federal indictments. In the first indictment, Lawhorn pleaded guilty to one count of conspiracy to commit wire fraud, one count of conspiracy to commit mail fraud, and one count of aggravated identity theft. In the second indictment, Lawhorn pleaded guilty to conspiracy to commit wire fraud. Lawhorn is among 17 defendants who have pleaded guilty to their roles in the scheme that defrauded six insurance companies from June 2017 to July 2020. Conspirators submitted false claims that they had suffered bodily injuries and that they would be personally liable for any medical bills related to insurance claims. Conspirators, some of whom were involved in multiple incidents, received thousands of dollars, and in some cases tens of thousands of dollars, based on these false claims. However, none of the conspirators made any payments to medical providers and instead used the funds for their personal expenses. Lawhorn was directly involved in two incidents in which he received separate payments of $1,500 and $17,350 from insurance companies. In several other incidents, Lawhorn sent emails to insurance companies, made telephone calls to insurance companies, directed others what to tell insurance companies, reviewed insurance policies prior to incidents, witnessed release agreements, and assumed the identity of parties to the incidents or people related to parties to these incidents in communication with insurance companies. By pleading guilty today, Lawhorn admitted to his involvement in nine automobile accidents in June and December 2017, in May and August 2018, and in January, February, August, October and December 2019 as part of the insurance fraud scheme that resulted in a total loss to his victims of $1,148,198. Most of the accidents were in Columbia and Kansas City, Mo., with one accident in St. Louis, Mo. FBI agents seized Lawhorn’s iPhone and Apple Mac laptop when he was arrested in the insurance fraud case. A detective with the Boone County Cyber Crimes Task Force found evidence of additional fraud after searching those devices, which led to Lawhorn being indicted in the second case. By pleading guilty in the second federal indictment today, Lawhorn admitted that he fraudulently obtained three $10,000 COVID-19 economic relief loans for non-existent businesses in his name and in the names of two other individuals as part of a fraud conspiracy. He also applied online for loans in the names of five more individuals, but those applications were rejected. Under the CARES Act, the federal Economic Injury Disaster Loans (EIDL) provided loan assistance, including $10,000 in advances for small businesses. EIDL proceeds could be used to pay fixed debts, payroll, accounts payable, and other bills associated with small businesses that could have been paid had the pandemic not occurred. A business applying for EIDL relief was eligible for an advance of $1,000 per employee up to 10 employees that did not have to be repaid. Under federal statutes, Lawhorn is subject to a sentence of up to 20 years in federal prison without parole on each of the three conspiracy charges, plus a mandatory consecutive sentence of two years for aggravated identity theft. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. These cases are being prosecuted by Assistant U.S. Attorney Aaron M. Maness. They were investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the National Insurance Crime Bureau, the Kansas City, Mo., Police Department, the Boone County, Mo., Sheriff’s Department and the Missouri State Highway Patrol.


title: Three Men Sentenced to a Collective 25 Years in Federal Prison for Armed Robbery of Lawrence Mobile Phone Store

component: USAO - Indiana, Southern

body_text: INDIANAPOLIS- Clifford Lewis, 20, Tyrese Turner, 22, and Calvin Johnson, 21, all of Indianapolis, have been sentenced to federal prison after pleading guilty to interference with commerce by robbery and using a firearm during a crime of violence. Lewis was sentenced to 8 years in federal prison. In November 2022, Tyrese Turner, 22, was sentenced to seven and a half years in federal prison. In June of 2022, Calvin Johnson was sentenced to 10 years in federal prison. According to court documents, on November 12, 2020, at approximately 7:03 pm, Johnson and Lewis entered a T-Mobile store on Pendleton Pike in Lawrence, Indiana. Both men approached an employee at the display counter and inquired about switching a service plan. As the employee began to help them, he noticed that Lewis had a pistol secured in a holster in his waistband. Johnson and Lewis then approached a second employee as Turner entered the business carrying a black backpack over his shoulders. Johnson brandished a semiautomatic pistol at the second employee and ordered him into the back room. In the back room, the three men took turns removing electronic devices from the safe and placing them into Turner’s backpack. Johnson zip-tied the victims’ hands behind their backs as well as their ankles. Once the defendants were satisfied with the number of cell phones in the backpack, Lewis began wrapping it in foil. As the robbery was still in progress, Lawrence Police Department officers arrived. All three men attempted to flee. Johnson and Turner were caught and arrested in the store. Lewis fled the scene and was arrested on a later date. Officers conducted a search of Johnson’s person and found a Taurus 9mm caliber semiautomatic pistol in his right front jean pocket. Officers located the loaded Glock 19 9mm caliber semiautomatic pistol that was in Lewis’s waistband in a ravine behind the store. The total amount of property taken during the robbery included over 50 devices and amounted to a value of $43,804.30. “Everyone in the Southern District of Indiana deserves to feel safe where they live and work. These three violent criminals conspired not only to rob a store of thousands of dollars in merchandise, but also to traumatize innocent people just doing their jobs,” said U.S. Attorney Zachary A. Myers. “Gun-toting criminals are a menace to our communities and will be met with consequences, as demonstrated by the serious sentences imposed today. I commend the FBI and Lawrence Police Department for their quick action to protect the public in this case.” “These convictions are the results of exemplary collaboration between Federal, State, & Local law enforcement agencies focusing their resources on those who engage in violent crime in our communities,” said Lawrence Police Deputy Chief Gary Woodruff. “The community is safer due to these collaborative efforts. We’re grateful to our law enforcement partners at the FBI & US Attorney’s Office for the Southern District of Indiana for their ongoing investment in these collaborations.” Federal Bureau of Investigation and Lawrence Police Department investigated this case. The sentences were imposed by U.S. District Court Judge Richard L. Young. Judge Young also ordered Lewis to serve 5 years of supervised release and Turner and Johnson to serve 3 years following their release from federal prison. U.S. Attorney Myers thanked Assistant United States Attorney Jayson W. McGrath, who prosecuted this case. ###


title: Commercial Real Estate Investor Natin Paul Indicted on Eight Counts in Austin

component: USAO - Texas, Western

body_text: AUSTIN, Texas – A federal grand jury in Austin returned an indictment Tuesday, June 6, 2023, charging Natin Paul, aka Nate Paul, with making false statements for the purpose of influencing the actions of financial institutions on applications for loans. The indictment, unsealed during his initial appearance in Austin today, charges Paul with eight violations of Section 1014 of Title 18 of the United States Code, which prohibits knowingly making a false statement or report for the purpose of influencing the action of a financial institution on an application for a loan. According to the indictment, the lenders were based in Ireland, New York, Connecticut and Texas. The alleged violations occurred between March 2017 and April 2018. The defendant made his initial court appearance today before U.S. Magistrate Judge Dustin Howell of the U.S. District Court for the Western District of Texas. Each count of the indictment carries a maximum penalty of up to 30 years in prison and a fine up to $1,000,000. The magistrate judge ordered the defendant released on bond. U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Oliver E. Rich Jr., of the FBI San Antonio Division made the announcement. The FBI is investigating the case. Assistant U.S. Attorneys Robert Almonte and Alan Buie are prosecuting the case. 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: Five Defendants Indicted for Conspiracy to Distribute Meth in Texas County

body_text: SPRINGFIELD CITY, Mo. – Five defendants have been indicted by a federal grand jury for their roles in a conspiracy to distribute methamphetamine in Texas County, Mo., and for illegally possessing firearms. Richard D. Sims, 61, and his wife, Billie J. Sims, 51, both of Texas County, Mo., Nathan K. Roth, 39, of Mountain Grove, Mo., Cody D. Martin, 29, of Salem, Mo., and Tameica D. Everett, 46, of Yazoo City, Mississippi, were charged in an eight-count indictment returned under seal by a federal grand jury in Springfield, Mo., on May 24, 2023. That indictment has been unsealed and made public following the arrests of all five defendants. The federal indictment alleges that all five defendants participated in a conspiracy to distribute methamphetamine in Texas County from March 9 to July 11, 2022. In addition to the conspiracy, the indictment charges Richard and Billie Sims in two counts of distributing methamphetamine and in one count of possessing methamphetamine with the intent to distribute. Martin is also charged with one count of distributing methamphetamine. Roth and Everett are each also charged with one count of possessing methamphetamine with the intent to distribute. Richard Sims is also charged with one count of being a felon in possession of four firearms. Sims, who has prior felony convictions, allegedly was in possession of a Canik 9mm semi-automatic pistol, a Hi-Point 9mm semi-automatic pistol, a Colt Army Special .38-caliber revolver, and an Armscor of the Philippines .38-caliber revolver on July 8, 2022. The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence. This case is being prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Drug Enforcement Administration, the Texas County, Mo., Sheriff’s Department, the South Central Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Licking, Mo., Police Department, the Dent County, Mo., Sheriff’s Department, and the Salem, Mo., Police Department.


title: Georgia Woman Pleads Guilty to Conspiracy to Commit Identity Fraud

component: Federal Bureau of Investigation (FBI)

body_text: ALEXANDRIA, Va. – A Loganville, Georgia, woman pleaded guilty today to her role in a bank fraud conspiracy. According to court documents, Brianna Mills, 28, conspired with Stanley Desirade, Terrell Hale, and others to transfer, possess, and use wrongfully obtained identifying information— namely, names, social security numbers, dates of birth, and addresses—to make fraudulent withdrawals. From December 2015 to March 2016, Mills was a bank teller at Capital One Bank. Mills used her position as a bank teller to steal customer account information. Mills passed that information to her then-boyfriend, Desirade, who used that information to create fraudulent driver’s licenses. Those licenses were, in turn, used to fraudulently withdraw money from the customers’ accounts at Capital One Bank. The conspiracy attempted to steal almost $1.7 million and successfully defrauded banks of at least $650,000. Mills is scheduled to be sentenced on August 25. She faces a maximum penalty of 15 years in prison. Mills is the second defendant in this case to plead guilty. Terrell Hale pled guilty on April 14, 2023 and will be sentenced on July 21, 2023. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Matthew Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea. Assistant U.S. Attorney Christopher Hood is prosecuting 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. 1:23-cr-40.


title: Las Vegas Tax Preparer Sentenced To Prison For Filing False Tax Returns

component: USAO - Nevada

body_text: LAS VEGAS – A Las Vegas tax preparer was sentenced yesterday by United States District Judge Richard F. Boulware II to three years in prison, followed by one year of supervised release, for fraudulently preparing and filing over $1.2 million false income tax returns. Maria Magdalena Mendoza (52) pleaded guilty in February 2023, to two counts of aiding and assisting in the preparation and presentation of false income tax returns. According to court documents, beginning around 2013, Mendoza ran her own tax preparation business under the names “Taxes & More” and “Taxs y Mas.” She used false or inflated deductions and credits on tax returns filed on behalf of her clients. Additionally, she used her clients’ personal identifying information to falsely obtain a larger refund on her own tax returns. In total, Mendoza prepared more than 700 tax returns that claimed more than $3 million in refunds from the IRS. She caused more than $1.2 million in tax loss. Furthermore, Mendoza inflated her clients’ refund requests without their knowledge and stole the excess amount of those refunds. Through this scheme, Mendoza diverted over $500,000 of her clients’ tax refund payments into her own accounts from 2013 to 2017. In March of 2023, while on pretrial release, Mendoza was arrested while in possession of a stolen passport, drivers licenses, and credit cards in the name of other individuals, along with forged copies of checks. “The defendant prepared hundreds of false income tax returns and brazenly defrauded the IRS of more than $1.2 million,” said United States Attorney Jason M. Frierson for the District of Nevada. “Tax preparers who use false deductions to inflate tax refunds and defraud their clients will be investigated. We will hold unscrupulous tax return preparers accountable.” “Ms. Mendoza not only cheated the IRS but she victimized her clients in a pattern that extends years before indictment, all the way up to the eve of sentencing,” said Albert Childress, Special Agent in Charge IRS Criminal Investigation. “Through this scheme, she diverted over $500,000 of her clients’ tax refund payments to herself. The defendant further harmed her clients by causing them to be audited by the IRS. Return preparers who seek to profit through false tax return schemes will be caught and held accountable.” “Taxpayers expect that tax preparers will prepare their tax returns in accordance with the law. It is unacceptable for tax preparers to break this confidence by submitting fraudulent returns in their clients’ names,” stated Inspector General J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA). “TIGTA is committed to bringing to justice any tax preparers who betray their clients’ trust for their personal gain.” The IRS CI and TIGTA investigated the case. Assistant United States Attorney Eric Schmale prosecuted the case. If you have information about an individual or a business you suspect of tax fraud, you can submit a report to the IRS at: https://www.irs.gov/individuals/how-do-you-report-suspected-tax-fraud-activity . ###


title: Four Indicted For St. Petersburg Drug Conspiracy

component: USAO - Florida, Middle

body_text: Tampa, Florida –United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Eric L. Lemon (44, New Port Richey), Eric Lekent Lemon, Jr. (20, St. Petersburg), Dominic Giannantonio (46, St. Petersburg), and Tryon Metteria Byrd IV (43, St. Petersburg) with conspiring to possess with the intent to distribute methamphetamine and cocaine. If convicted on all counts, Lemon and Giannantonio face mandatory minimum penalties of 10 years, up to life, in federal prison. If convicted on all counts, Lemon, Jr., and Byrd face a maximum penalty of 20 years’ imprisonment. According to the indictment and statements made by prosecutors in open court, the defendants were operating a drug trafficking ring in St. Petersburg, Florida, where they would sell narcotics out of various residential homes. During the course of the investigation, the defendants sold methamphetamine, powder cocaine, and crack cocaine to undercover agents. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the St. Petersburg Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney David P. Sullivan.


title: Members Of “Robles Park” Racketeering Enterprise Sentenced For Attempted Murder, Series Of Shootings, Drug Trafficking, And Committing Millions In Fraud

body_text: Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Keaujay Hornsby, a/k/a “Plug,” (26, Tampa) to 16 years and 9 months in federal prison and Kareem Spann, a/k/a “Reem,” (27, Tampa) to 10 years and 10 months in federal prison for criminal conduct committed by, and on behalf of, the Racketeering Influenced and Corrupt Organization (RICO) group known as the “Robles Park Enterprise.” These crimes included a series of shootings, attempted murder, drug trafficking, fraud, and identity theft. Spann had pleaded guilty on February 7, 2023, and Hornsby had pleaded guilty on July 1, 2023. According to court documents and evidence presented at sentencing, in the early morning of July 19, 2020, Hornsby and other members of the Enterprise congregated outside the Truth Lounge club in Tampa, Florida. The streets and sidewalks were flooded with people, including rival gang members in the parking lot outside the club. Spann was driving while Hornsby occupied the front passenger seat, with a loaded gun resting on his lap. Spann drove a black Infinity through the crowd, while Hornsby engaged in a verbal altercation with rival gang members. Suddenly, Hornsby and the rival gang members ignited a mass shooting in which Hornsby pulled out his gun and unleashed a barrage of gunfire into the crowd. Panic ensued, with surveillance video capturing the immediate chaos as the crowd scattered for safety. Law enforcement later recovered dozens of ammunition casings. The shooting resulted in the injury of at least eight people, including minors, some of whom were shot in the jaw, shoulder, elbow, wrist, finger, foot, arms, and legs. Six days later, on Saturday, July 25, 2020, and in retaliation for the Truth Lounge shooting, three rival gang members ambushed Hornsby and Spann as they exited the International Plaza in Tampa. On that afternoon, three individuals surrounded the defendants and opened fire. Hornsby took Spann’s gun and returned fire. In total, seven vehicles were struck by gunfire, including two occupied by bystanders. Law enforcement later determined that at least 25 bullets had been fired from three different firearms. Two days later, on July 27, 2020, while driving east on Columbus Drive, Hornsby and Spann spotted a rival gang member who was driving south on Rome Street. They followed that individual and waited to get close to him before Hornsby lowered his window, and opened fire on a residential street, unleashing dozens of shots at his target. In addition to acts of violence, the Robles Park Enterprise also trafficked in cocaine, marijuana, and firearms. Finally, members of the Robles Park Enterprise, including Hornsby and Spann, worked with one another to unlawfully obtain the personal identifying information (PII) of other persons. They used this PII to submit false applications via interstate wire communications and claim unemployment benefits to which they were not entitled. In total, the defendants submitted over 200 fraudulent claims, in 20 different states, with an intended loss of approximately $2.8 million dollars. For many of those claims, a bank card was issued from the state in which the claim was filed, loaded with Unemployment Insurance funds from financial institutions and sent to the Middle District of Florida. The defendants later used these cards to withdraw cash from ATMs in Tampa and Hollywood, Florida. On June 10, 2022, a third member of this conspiracy, Tywon Spann was sentenced to six years and nine months imprisonment. This case was investigated by the Federal Bureau of Investigation, the Tampa Police Department, and the Department of Labor, with substantial assistance from the United States Secret Service. It was prosecuted by Assistant United States Attorney Diego F. Novaes and former Assistant United States attorney Natalie H. Adams.


title: Multiple Defendants Indicted on Federal Racketeering, Narcotics and Firearm Charges

component: USAO - Pennsylvania, Western

body_text: ERIE, Pa. – Fifty-eight defendants have been charged with violating federal racketeering, narcotics, and firearm laws, Acting United States Attorney Troy Rivetti announced today. The 30-count Indictment, returned on May 30, 2023, and unsealed today, charged the first 22 listed defendants with conspiring to participate in a criminal enterprise as members and associates of an Erie, Pennsylvania neighborhood street gang known as “4-Nation” under the Racketeer Influenced and Corrupt Organizations Act (RICO). The Indictment named the following individuals as having conspired to participate in this criminal organization: Davante Qualee Jones, 29 Dajean Dupree Williams, 28 Javar Beason, Jr., 26 Darian Allen Beasley, 31 John Ferrell Cooley, Jr., 27 Von Darnell McCallum, Jr., 26 Jaquon Lashawn Manning, 22 Marius Lavon Russell, 31 Jermaine Antwon Phillips, Jr., 27 Rayshawn Markel Woodard, 23 Michael Jarod Manning, 32 Dajour Raekwon Woodard, 24 Chikuyo Asania Bayete, 25 Raheem Tyre Farmer, 28 Kalen Allen Gambill, 36 Damon Deandre Grady, 25 Eric Martin Jells, Jr., 25 Levanta Davon Keim, 25 Tayvon Marquise Lindsey, 27 Dorrell Antwun McLaurin, 24 Tymeir Mekhi Sadique Oglesby, 24 Lamont Devail Warren, Jr., 25 According to information presented in the Indictment, these individuals engaged in organized criminal activity as part of their membership and association with the 4-Nation gang which included drug distribution and acts of violence within the Western District of Pennsylvania and elsewhere. According to the Indictment, one of the principal activities of the gang involves the sale and distribution of marijuana, prescription hydrocodone, cocaine, cocaine base, heroin, methamphetamine, fentanyl powder, and fentanyl pills within the gang’s geographic territory. 4-Nation members would obtain drugs from sources of supply primarily in California, Arizona, and Mexico and disseminate these drugs for redistribution by other gang members and associates. 4-Nation gang members possessed firearms and guarded their territory to prevent encroachment by rival gang members or drug dealers through assaults and shootings. The Indictment details more than 150,000 fentanyl pills, over 100 pounds of methamphetamine, and multiple kilograms of fentanyl and fentanyl analogue powder trafficked by the gang into Erie, Pennsylvania. The RICO conspiracy statute carries a maximum penalty of up to life imprisonment and a fine of not more than $250,000. The Indictment named all 58 charged individuals at Count Two as part of an overlapping drug distribution conspiracy including: Antwon Donnell Arrington, 48 Jamonte Capriese Hollingsworth, 34 Stewart Lee Phillips, 46 Tyler Quinn Magee, 30 Chikuyo Isani Bayete, 28 Dajuwon Brown Faulkner, 20 Demari Naquan Euell, 24 Cordell Jamal Gregory, 30 Jadarious Devon Samuel Lofton, 22 Shikeal Marquese Page, 29 Antoun Depree Moore, Jr., 25 Stephen William Carter, 31 Rhashan Dunston, 28 Dazerion Jaquial Hinton, 24 Devon Devontae Blue, 21 Javarie Barnett, 24 Damond Wilson Carr, 31 Saint Martin Ellman, 26 William Todd Stephens, 32 Wessam Ali Abood, 30 Alexis Marie Althof, 28 Samantha Lynn Ermekeil, 26 David Leroy Hall, 47 Travis Blake Longley, 29 Tasha Nicole Pacley, 34 Anthony James Stufflebeam, 36 Kevin John Berdis, 28 Mackenzie Alaska Fike-Bliscik, 24 Joseph Michael Lazar, 59 Bethany Nicole Mallette, 27 Immanuel Rashad Smith, 28 Jaelyn Rachelle Kuczynski, 33 Gary A. Warren, III, 32 Henry Daniel Barker, 34 Jamond Carnell McDonald, 20 Dazjona Marique Goodwine, 31 According to the Indictment, these individuals conspired to distribute and possess with intent to distribute Schedule I and Schedule II controlled substances, including large quantities of fentanyl, a fentanyl analogue, methamphetamine, cocaine, and cocaine base, from at least August 2023 through the date of the Indictment, in the Western District of Pennsylvania and elsewhere. The statute calls for a maximum sentence of up to life imprisonment. Dajour Woodard is charged at Count Three with attempted possession with intent to distribute four hundred (400) grams or more of a mixture and substance containing a detectable amount of fentanyl on or about August 9, 2021. The statute calls for a mandatory minimum sentence of ten years of incarceration. Damond Carr is charged at Count Four with possession with intent to distribute forty (40) grams or more of a mixture and substance containing a detectable amount of fentanyl and at Count Five with possession of a firearm by a convicted felon, both occurring on or about October 15, 2021. The statute at Count Four calls for a mandatory minimum sentence of five years incarceration. The statute at Count Five calls for a maximum sentence of twenty years of incarceration. Jaquon Manning and Michael Manning are charged at Count Six with possession with intent to distribute one hundred (100) grams or more of a mixture and substance containing a detectable amount of fentanyl analogue, five hundred (500) grams or more of a mixture and substance containing a detectable amount of methamphetamine, and forty (40) grams or more of a mixture and substance containing a detectable amount of fentanyl on or about February 11, 2022. The statute calls for a mandatory minimum sentence of ten years of incarceration. Dajean Williams is charged at Count Seven with possession with intent to distribute four hundred (400) grams or more of a mixture and substance containing a detectable amount of fentanyl, one hundred (100) grams or more of a mixture and substance containing a detectable amount of fentanyl analogue, and a quantity of a mixture and substance containing a detectable amount of cocaine, and at Count Eight with possession of a firearm by a convicted felon, both occurring on or about April 20, 2022. The statute at Count Seven calls for a mandatory minimum sentence of ten years of incarceration. The statute at Count Eight calls for a maximum sentence of twenty years of incarceration. Javar Beason, Jr. is charged at Count Nine with interstate and foreign travel in aid of business enterprise involving narcotics or controlled substances from on or about June 26, 2022 and continuing to on or about June 28, 2022. The statute calls for a maximum sentence of five years of incarceration. Jamonte Hollingsworth is charged at Count Ten with possession with intent to distribute and distribution of forty (40) grams or more of a mixture and substance containing a detectable amount of fentanyl on or about September 6, 2022. The statute calls for a mandatory minimum sentence of five years of incarceration. Kalen Gambill is charged at Count Eleven with possession with intent to distribute and distribution of fifty (50) grams or more of a mixture and substance containing a detectable amount of methamphetamine on or about September 7, 2022. The statute calls for a mandatory minimum sentence of five years of incarceration. Javar Beason, Jr. is charged at Count Twelve with conducting a monetary transaction, affecting interstate commerce, in criminally derived property with a value greater than $10,000, which property was derived from specified unlawful activity on or about October 12, 2022. The statute calls for a maximum sentence of ten years of incarceration. Tasha Pacley is charged at Count Thirteen with possession of firearms by a convicted felon on or about October 13, 2022. The statute calls for a maximum sentence of ten years of incarceration. Javar Beason, Jr, Antwon Arrington, Jadarius Lofton, and Mackenzie Fike-Bliscik are charged at Count Fifteen with possession with intent to distribute and distribution of forty (40) grams or more of a mixture and substance containing a detectable amount of fentanyl on or about November 29, 2022. The statute calls for a mandatory minimum sentence of five years of incarceration. Antwon Arrington is charged at Count Sixteen with maintaining a drug-involved premise from no later than in and around December 2022 through on or about January 14, 2022. The statute at Count Sixteen calls for a maximum sentence of twenty years of incarceration. Antwon Arrington is also charged at Count Seventeen with possession with intent to distribute four hundred (400) grams or more of a mixture and substance containing a detectable amount of fentanyl, five hundred (500) grams or more of a mixture containing a detectable amount of methamphetamine, and five hundred (500) grams or more of a mixture containing a mixture and substance containing a detectable amount of cocaine, and at Count Eighteen with possession of a firearm by a convicted felon, both occurring on or about January 14, 2023. The statute at Count Seventeen calls for a mandatory minimum sentence of ten years of incarceration. The statute at Count Eighteen calls for a maximum sentence of ten years of incarceration. Javar Beason, Jr. is charged at Count Nineteen with possession with intent to distribute five hundred (500) grams or more of a mixture and substance containing a detectable amount of methamphetamine, at Count Twenty with possession of a firearm by a convicted felon, and at Count Twenty-One with using and carrying a firearm in furtherance of a drug trafficking crime, all occurring on or about January 14, 2023. The statute at Count Nineteen calls for a mandatory minimum sentence of ten years of incarceration. The statute at Count Twenty calls for a maximum sentence of ten years of incarceration. The statute at Count Twenty-One calls for a mandatory consecutive sentence of five years of incarceration. Darian Beasley is charged at Count Twenty-Two with possession with intent to distribute five hundred (500) grams or more of a mixture and substance containing a detectable amount of cocaine and a mixture and substance containing a detectable amount of cocaine base in the form commonly known as crack, and at Count Twenty-Three with possession of a firearm by a convicted felon, both occurring on or about January 14, 2023. The statute at Count Twenty-Two calls for a mandatory minimum sentence of ten years of incarceration. The statute at Count Twenty-Three calls for a maximum sentence of ten years of incarceration. Jaquon Manning is charged at Count Twenty-Four with possession with intent to distribute four hundred (400) grams or more of a mixture and substance containing a detectable amount of fentanyl on or about January 31, 2023. The statute calls for a mandatory minimum sentence of ten years of incarceration. Jaquon Manning and Joseph Lazar are charged at Count Twenty-Five with possession with intent to distribute and distribution of fifty (50) grams or more of a mixture and substance containing a detectable amount of methamphetamine on or about February 2, 2023. The statute calls for a mandatory minimum sentence of five years of incarceration. Jaquon Manning, Dajuwan Faulkner, and Samantha Ermekeil are charged at Count Twenty-Six with possession with intent to distribute and distribution of fifty (50) grams or more of a mixture and substance containing a detectable amount of methamphetamine on or about February 22, 2023. The statute calls for a mandatory minimum sentence of five years of incarceration. Jaquon Manning, Jaelyn Kuczynski, and Gary Warren are charged at Count Twenty-Seven with possession with intent to distribute and distribution of fifty (50) grams or more of a mixture and substance containing a detectable amount of methamphetamine on or about March 2, 2023. The statute calls for a mandatory minimum sentence of five years of incarceration. Jaquon Manning and Henry Barker are charged at Count Twenty-Eight with possession with intent to distribute and distribution of fifty (50) grams or more of a mixture and substance containing a detectable amount of methamphetamine on or about March 10, 2023. The statute calls for a mandatory minimum sentence of five years of incarceration. John Cooley, Jr. and Dazjona Goodwine are charged at Count Twenty-Nine with attempted possession with intent to distribute four hundred (400) grams or more of a mixture and substance containing a detectable amount of fentanyl on or about March 13, 2023. The statute calls for a mandatory minimum sentence of ten years of incarceration. Stewart Phillips is charged at Count Thirty with possession with intent to distribute forty (40) grams or more of a mixture and substance containing a detectable amount of fentanyl on or about March 15, 2023. The statute calls for a mandatory minimum sentence of five years of incarceration. “We are committed to disrupting the violence and destruction that gangs such as these inflict upon our communities,” said Acting U. S. Attorney Troy S. Rivetti. “The unified efforts of each of the agencies involved in this investigation is to be commended. This work and the continued efforts of the EAGLE Safe Streets Task Force is dedicated to restoring Erie residents’ rights to feel safe in their own neighborhoods. “This gang brought violence and despair to our neighborhoods and pedaled drugs onto the streets, exploiting the young and vulnerable,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “This investigation was a collaborative effort led by the FBI’s EAGLE Safe Streets Task Force and the community will see the impact immediately. I commend the work done by the investigative team and restate the commitment of the FBI and our partners to aggressively pursue those that bring harm to our communities.” “Today’s announcement deals a major blow to a drug trafficking gang whose activities have inflicted irreparable harm and pain throughout our communities,” said William S. Walker, Special Agent in Charge of HSI Philadelphia. “Results like these are only achieved through partnerships and information sharing. There is no doubt that the Erie and its surrounding areas are safer today due to the outstanding teamwork of the dedicated law enforcement professionals who investigated and prosecuted this case. HSI will continue to prioritize investigations that prevent illicit and highly addictive opioids from being distributed in our neighborhoods.” “The Pennsylvania State Police is proud of the hard work by our investigators that has resulted in getting dangerous narcotics and drug dealers off our streets. We’re thankful for the cooperation with our local, state, and federal law enforcement partners, and our communities are much safer for it.” “Today, the Erie Police and its many local, state and federal partners continue working together on removing violent criminals and drug dealers,” said Daniel P. Spizarny, Sr., Chief of Police, City of Erie Police Department. “We are committed to making Erie a safer community with welcoming and vibrant Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government. This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. The Federal Bureau of Investigation (FBI) Erie Resident Agency Erie Area Gang Law Enforcement (EAGLE) Safe Streets Task Force, which is comprised of investigators from the FBI, United States Customs and Border Patrol, Erie Police Department, Pennsylvania State Police, Pennsylvania Office of the Attorney General, Millcreek Police Department, Oil City Police Department, Franklin Police Department, and Erie School District Police Department, conducted the investigation leading to the Indictment in this case in coordination with the Department of Homeland Security – Homeland Security Investigations; Internal Revenue Service; Bureau of Alcohol, Tobacco Firearms and Explosives; Pennsylvania State Police Vice and Drug Law Units; Erie County Detectives; and Erie County District Attorney’s Office. The investigation was also conducted in association with the Northwest Pennsylvania Drug Initiative which was formed following Erie County’s designation as a High Intensity Drug Trafficking Area (HIDTA) in 2021. The HIDTA program was created by Congress in 1988 to coordinate and assist Federal, State, and Local law enforcement agencies in addressing regional drug threats with the purpose of reducing drug trafficking and drug production in the United States. The Northwest Pennsylvania Drug Initiative coordinates personnel and resources between multiple agencies including the Pennsylvania State Police, Federal Burau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, Erie Police Department, Erie County District Attorney’s Office, Erie County Detectives, United States Postal Inspection Service, the EAGLE Task Force, and other participating agencies. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.


title: Clay County Softball Coach Pleads Guilty To Producing And Attempting To Produce Sexually Explicit Images And Videos Of Children

body_text: Jacksonville, Florida –United States Attorney Roger B. Handberg announces that Andrew Lynn Overheul (43, Orange Park) has pleaded guilty to two counts of production and attempted production of child sexual abuse material. Overheul faces a mandatory minimum sentence of 15 years, up to 60 years, in federal prison. A sentencing date has not been scheduled. According to the plea agreement, on September 17, 2022, the parent of a 12-year-old child (MV1) contacted the Clay County Sheriff’s Office (CCSO) to report a complaint MV1 had made about finding a cellular phone recording her changing clothes and using the shower in the bathroom at her softball coach’s house. CCSO responded that same night and interviewed the parent and MV1. The parent and MV1 said that they were at Overheul’s home in Orange Park, Florida on September 17, 2022, for a softball team family party, as Overheul was the child’s softball coach. The children decided to have an impromptu group sleepover at Overheul’s home. Overheul told MV1 that she could take a shower in the master bathroom shower, as another girl was showering in the other bathroom at that time. MV1 spotted a phone on the bathroom countertop propped up between two boxes, with the camera facing the shower. Upon closer inspection, MV1 discovered the phone was actively recording, and immediately grabbed the phone and stopped the recording. MV1 reviewed the video and discovered that it depicted her, so she deleted the video, placed the phone back on the counter, and called her parents to pick her up from Overheul’s residence. MV1’s parent sent a text message to Overheul at 8:17 p.m. indicating they were on their way to pick MV1 up and would tell Overheul about it when they got there. At 8:44 p.m., Overheul responded by text message, “Hey we talked with the girls. No one is addmitting [ sic ] to playing a joke. The others that were in that bathroom said they saw my phone charging but no other phones.” After interviewing the parents and MV1, CCSO detectives responded to Overheul’s residence in the early morning hours of September 18, 2022, and interviewed Overheul, during which he acknowledged he was the only person that used or had access and control of his cellphone. He further acknowledged that his cellphone was in the bathroom and claimed he had placed it there to charge. Agents obtained a federal search warrant for Overheul’s cellphone and a forensic review of the device found two photos of several minor females on the softball team wearing swimsuits and sitting on the floor in Overheul’s living room, dated September 17, 2022, with a time stamp of 5:36 p.m. Forensics also showed that, at 7:38 p.m., a search for “canon remote app” was conducted on the cellphone, and then the Canon Camera Connect app was installed a few seconds later. This app allows a camera to record remotely with live view imaging of the camera from a smartphone. Forensics also revealed a search in the evening of September 17, 2022, in the Google Play Store on Overheul’s cellphone for two applications, which were downloaded, and can be used to delete information from a person’s phone. On November 18, 2022, Homeland Security Investigations (HSI) executed a federal search warrant at Overheul’s residence and seized numerous electronic devices. Agents discovered hundreds of photos and videos of minors that appeared to have been taken surreptitiously without their consent. This case was investigated by the Clay County Sheriff’s Office and Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Ashley Washington. This case is brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: Brooklyn Center Man Sentenced to 30 Months in Prison for Insurance Fraud After Staging a Politically Motivated Arson Attack

component: USAO - Minnesota

body_text: MINNEAPOLIS – A Brooklyn Center man was sentenced to 30 months in prison, followed by one year of supervised release and ordered to pay $3,850 in restitution and an $18,381 fine for filing fraudulent insurance claims for a staged arson, announced U.S. Attorney Andrew M. Luger. According to court documents, on September 23, 2020, Denis Vladmirovich Molla, 30, falsely reported to law enforcement that someone had lit his camper on fire and that three unknown males were near his home when he heard an explosion. Molla also reported that his garage door was vandalized with spray painted graffiti stating, “Biden 2020,” “BLM,” and an Antifa symbol, and that his camper was targeted because it had a Trump 2020 flag displayed on it. In reality, Molla started his own property on fire and spray painted the graffiti on his own garage. According to court documents, Molla submitted multiple insurance claims seeking coverage for the damage to his garage, camper, vehicles, and residence caused by the fire. When Molla’s insurance company denied some of those claims, Molla submitted a written complaint to the insurance company claiming that it was defrauding him and threatened to report the company to the Department of Commerce and to the Attorney General. Molla also created and allowed others to create two GoFundMe accounts to benefit Molla and his family. In total, Molla submitted more than $300,000 in fraudulent insurance claims, and he received approximately $61,000 from his insurance company. Molla also received more than $17,000 from individual donors via GoFundMe. Molla pleaded guilty on October 11, 2022, to one count of wire fraud. He was sentenced yesterday in U.S. District Court by Senior Judge David S. Doty. This case is the result of an investigation conducted by the FBI and the Brooklyn Center Police Department. Assistant U.S. Attorney Kimberly A. Svendsen and former Assistant U.S. Attorney Angela M. Munoz prosecuted the case.


title: Federal Jury Convicts Fentanyl Trafficker Who Stole 7 Kilos from Fayetteville Stash House

component: USAO - North Carolina, Eastern

body_text: WILMINGTON, N.C. – A federal jury convicted Hector Perez Valenzuela, age 34, for conspiracy and drug trafficking charges related to his role in the theft of seven kilograms of fentanyl with an estimated value of more than $250,000 from a Fayetteville stash house. “According to DEA, fentanyl is the deadliest drug threat our country has faced,” said U.S. Attorney Michael Easley. “We are working closely with our law enforcement partners to stem the tide of this highly addictive and potentially lethal drug in our communities.” According to court records and evidence presented at trial, in 2019, the Federal Bureau of Investigation and Fayetteville Police Department began investigating a large-scale fentanyl trafficking ring with ties to the Sinaloa cartel. The leaders of the drug trafficking organization were based on the west coast, but they set up apartments in the Fayetteville, North Carolina as hubs for the distribution of kilogram quantities of fentanyl across the United States. John Ellingson was a courier for the drug trafficking organization. From Fayetteville, he transported dozens of kilograms of fentanyl to several cities, including Chicago, Atlanta, and Baltimore. In early November, 2019, Ellingson and two co-conspirators—Kittisack Sam Vorana and Hector Perez Valenzuela, the defendant—decided to steal large quantities of drugs that belonged to the drug trafficking organization. They planned to make the theft look like a burglary. They also planned to sell the drugs and divide the profits. On November 7, 2019, the defendant and Vorana traveled from the west coast to Fayetteville. They broke into the apartment and took 7 kilograms of fentanyl and approximately 3,000 fentanyl pills. They then began driving back to the west coast in a rented Dodge Caravan. In the early morning hours of November 8, 2019, Vorana and the defendant were stopped for speeding in St. Charles County, Missouri. Vorana and the defendant consented to a search of the vehicle. During the search, law enforcement discovered a toolbox that contained seven brick-like packages. The packages had been wrapped in electrical tape and covered in grease to help evade detection by drug canines. A key to the toolbox was found in the defendant’s pocket. Vorana and the defendant were arrested and admitted to the theft of narcotics. They also admitted that they planned to sell the drugs in the Portland, Oregon area. Each kilogram was valued at approximately $38,000. The packages were tested by a Drug Enforcement Administration (DEA) laboratory and found to contain more than seven kilograms of fentanyl. On June 8, 2023, the jury convicted Perez Valenzuela of both counts with which he was charged: conspiracy to distribute and posses with the intent to distribute fentanyl (Count One) and possession with intent to distribute fentanyl, and aiding and abetting (Count Two). At sentencing, he faces up to 40 years’ imprisonment. Vorana and Ellingson have previously pleaded guilty to fentanyl conspiracy charges, and they are awaiting sentencing. This is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Related Cases : United States v. John Ellingson: 5:20-CR-397-M-1. United States v. Kittisack Sam Vorana: 5:20-CR-12-M-2. The leaders of the drug trafficking organization are being prosecuted by the United States Attorney’s Office for the Southern District of California. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after Chief U.S. District Judge Richard E. Myers II accepted the verdict. The Federal Bureau of Investigation, the Drug Enforcement Administration (DEA), the Fayetteville Police Department, and the St. Charles County Police Department investigated the case and Assistant U.S. Attorney Scott Lemmon and Special Assistant U.S. Attorney Scott Gainer prosecuted the case. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-00012-M-1.


title: Drug Trafficker Sentenced to Federal Prison for Distributing Fentanyl Linked to Fatal Overdose in Hillsboro

component: USAO - Oregon

body_text: PORTLAND, Ore.—A drug trafficker was sentenced to federal prison today for his role in a conspiracy to distribute fentanyl that led to the fatal overdose of a Hillsboro, Oregon man in February 2021. Gerardo Corrales-Aragon, 30, whose place of residence is unknown, was sentenced to 150 months in federal prison and five years’ supervised release. According to court documents, on February 3, 2021, a 25-year-old man was found deceased by his parents at their home in Hillsboro after he consumed a counterfeit Oxycodone pill containing fentanyl. In less than three weeks, law enforcement uncovered a four-person drug distribution chain whose illicit actions led to the young man’s death. Investigators identified Corrales-Aragon as the individual responsible for transporting the deadly counterfeit pills from California to Oregon for distribution in and around Portland. On February 23, 2021, law enforcement arrested Corrales-Aragon as he was leaving a local hotel to deliver fentanyl and methamphetamine in exchange for cash. Investigators found 4,000 fentanyl pills and six pounds of methamphetamine in Corrales-Aragon’s backpack and a loaded 9mm “ghost gun” in his waistband. Corrales-Aragon admitted to selling counterfeit pills to the Hillsboro victim’s drug supplier and possessing a firearm for his own protection while trafficking drugs. By the time of his arrest, Corrales-Aragon had been working with Mexican drug cartels to distribute drugs in the U.S. for more than half his life. On March 16, 2021, a federal grand jury in Portland returned a 13-count indictment charging Corrales-Aragon and four others with conspiring with one another to possess with intent to distribute fentanyl and other related offenses. On March 6, 2023, Corrales-Aragon pleaded guilty and agreed to a sentencing enhancement that his fentanyl distribution resulted in the death of the Hillsboro victim. This case was investigated by the Portland Police Bureau, Washington County Sheriff’s Office, and Hillsboro Police Department with assistance from Homeland Security Investigations (HSI). It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.