title: U.S. Attorney’s Office for The District of Vermont Celebrates Funding Awarded to Combat Domestic and Sexual Violence

component: USAO - Vermont

body_text: Burlington, Vermont – The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault. These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety. The U.S. Attorney’s Office for the District of Vermont is proud to announce that the Department of Justice’s Office on Violence Against Women (OVW) awarded $1,350,000 to Vermont organizations that provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking. OVW awarded $750,000 under the Legal Assistance for Victims (LAV) Program to Vermont Network Against Domestic Violence and Sexual Assault, Inc. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking. OVW awarded $600,000 under the Justice for Families (JFF) Program to Champlain Valley Office of Economic Opportunity, Inc. The JFF Program aims to improve the capacity of communities and courts to respond to families impacted by violence. U.S. Attorney Nikolas P. Kerest commented: “Domestic violence is destructive to families and communities and cannot be tolerated. The OVW grants announced today serve to bolster important non-prosecutorial tools to combat domestic violence in Vermont. In addition, this office, working with our partners in law enforcement, will continue to use federal statutes to hold domestic abusers accountable.” “The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system’s approach to supporting families affected by violence,” stated OVW Director Rosemarie Hidalgo. “These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety.” OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw .


title: Justice Department Awards Funding for Legal Services and Improved Court Responses to Domestic and Sexual Violence

component: USAO - New Jersey

body_text: NEWARK, N.J. – The Department of Justice Office on Violence Against Women (OVW) awarded more than $1.3 million to two programs in the state to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking, U.S. Attorney Philip R. Sellinger announced today. The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault. These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety. The awards to New Jersey are: OVW awarded $750,000 under the Legal Assistance for Victims (LAV) Program to 180 Turning Lives Around Inc. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking. OVW awarded $599,512 under the Justice for Families (JFF) Program to the Essex County Family Justice Center Inc. The JFF Program aims to improve the capacity of communities and courts to respond to families impacted by violence. “There is an urgent need to fund programs for survivors of sexual assault, domestic violence, dating violence, and stalking, so I am pleased to announce that two programs in the District of New Jersey have been awarded funding from the Justice Department’s Office on Violence Against Women. These funds will help survivors who are struggling with the emotional and physical toll of violence to navigate the complex and often overwhelming legal system. The programs this money will help fund will provide needed legal support to ensure justice and safety for survivors.” U.S. Attorney Philip R. Sellinger “The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system's approach to supporting families affected by violence,” OVW Director Rosemarie Hidalgo said. “These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety.” The U.S. Attorney’s Office has an unyielding commitment to combat sexual misconduct. As part of the Justice Department’s initiative to combat sexual harassment in housing, the U.S. Attorney’s Office routinely conducts community outreach throughout New Jersey to help identify and encourage reporting of sexual misconduct. This outreach ultimately led to a landmark lawsuit and $4.5 million monetary settlement against a landlord who the United States alleged demanded sex acts from dozens of tenants under the threat of eviction or other negative consequences. In addition, the U.S. Attorney’s Office brought an investigation that revealed that the Edna Mahan Correctional Facility for Women failed to protection inmates from sexual abuse by staff. This lawsuit resulted in a consent decree that required the New Jersey Department of Corrections to implement reforms to ensure incarcerated women are protected from sexual abuse. OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw . 23-260


title: U.S. Attorney's Office for District of South Carolina Celebrates Funding Awarded for Legal Services and Improved Court Responses to Domestic and Sexual Violence

component: USAO - South Carolina

body_text: COLUMBIA, SOUTH CAROLINA -- The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault. These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety. The U.S. Attorney’s Office for the District of South Carolina is proud to announce that the Department of Justice Office on Violence Against Women (OVW) awarded $1,500,000 to South Carolina to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking. OVW awarded $750,000 to the South Carolina Coalition Against Domestic Violence and Sexual Assault (SCCADVASA) and $750,000 to the South Carolina Victim Assistance Network (SCVAN) under the Legal Assistance for Victims (LAV) Program . The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking. “These grants reflect our commitment to making South Carolina a more difficult place for violent actors to operate and a safer place for survivors,” said U.S. Attorney Adair F. Boroughs. “We are grateful to SCCADVASA and SCVAN for their tireless work in helping victims of domestic violence and sexual assault find both justice and safety.” “The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system’s approach to supporting families affected by violence," stated OVW Director Rosemarie Hidalgo. “These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don’t merely navigate our legal system, but genuinely find a path to justice and safety.” These grants are just one way the U.S. Department of Justice partners with community organizations to support and protect victims of domestic violence and sexual assault. Earlier this week, representatives from the U.S. Attorney’s Office participated in the 2023 POWER Act Conference hosted by the United States District Court and SCCADVASA. The conference provided attorneys, victim service professionals, and law enforcement officers with an overview of South Carolina’s civil protective orders and how they can trigger federal firearms prohibitions. A team of federal and state experts led a roundtable discussion on ways to improve collaboration between civil attorneys and criminal justice professionals to help protect victims from threats of gun violence. ### OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw .


title: Luzerne County Man Sentenced To 42 Months’ Imprisonment For Covid-Relief And Credit Card Fraud, And Identity Theft Offenses

component: USAO - Pennsylvania, Middle

body_text: SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Reynard Lewis, age 30, formerly of Nanticoke, Pennsylvania, was sentenced by United States District Judge Robert D. Mariani to 42 months of imprisonment, for wire fraud conspiracy and aggravated identity theft offenses. According to United States Attorney Gerard M. Karam, Lewis and his coconspirators used stolen identities to create forged identification documents and credit and debit cards. The conspirators used those forged items and stolen identities to open bank accounts, apply for lines of credit, and obtain retail merchandise. The conspirators also used the stolen identities to apply for multiple COVID-19 pandemic relief loans issued under the Small Business Administration’s Paycheck Protection Program (PPP), including by submitted false federal tax documentation. The conspirators allegedly received over $100,000 in pandemic stimulus funds. The PPP is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, PPP funds are offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses. Lewis previously was charged in a criminal complaint and arrested on September 16, 2022. He has remained in detention since his arrest. Lewis’s alleged coconspirator, Robert Brownstein, age 51, of Scranton, Pennsylvania, was previously charged in a criminal information with wire fraud conspiracy and aggravated identity theft. The case was investigated by the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, and the Pottsville Bureau of Police. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . # # #


title: U.S. Attorney’s Office for Western District of Washington celebrates funding awarded for legal services and improved court responses for domestic and sexual violence

component: USAO - Washington, Western

body_text: The U.S. Attorney’s Office for the Western District of Washington is proud to announce that the Department of Justice Office on Violence Against Women (OVW) awarded $1.3 million to two programs in Western Washington to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking. OVW awarded $750,000 under the Legal Assistance for Victims (LAV) Program to the YMCA of Clark County, Washington. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking. OVW awarded $591,457 under the Justice for Families (JFF) Program to the Coalition for ending Gender Based Violence. The JFF Program aims to improve the capacity of communities and courts to respond to families impacted by violence. “Both of these programs provide crucial services in Western Washington to survivors of domestic violence and sexual assault,” said Acting U.S. Attorney Tessa M. Gorman. “The YMCA of Clark County is a leader in Southwest Washington on programs and services for survivors. In the Seattle area, the Coalition Ending Gender Based Violence has a number of projects and tools to assist survivors with housing, metal health and access to justice. These grants are highly competitive, and it speaks to the quality of these programs that they have been chosen for DOJ funding.” “The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system's approach to supporting families affected by violence," stated OVW Director Rosemarie Hidalgo. "These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety.” You can learn more about each of these Washington State Organizations here: https://ywcaclarkcounty.org/ and here https://endgv.org/ . coalition_grant.pdf ymca_clark_co_grant.pdf ### OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw


title: Funding Awarded in Missouri for Domestic And Sexual Violence Services

component: USAO - Missouri, Eastern

body_text: ST. LOUIS – The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault. These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety. U.S. Attorney Sayler A. Fleming is proud to announce that the Department of Justice Office on Violence Against Women (OVW) awarded $869,540 to the Eastern District of Missouri to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking. • OVW awarded $719,540 under the Legal Assistance for Victims (LAV) Program to the Crime Victim Advocacy Center of St. Louis. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking. • OVW awarded $150,000 under the Domestic Violence Mentor Court Technical Assistance Initiative to St. Louis County. The initiative recognizes well-established specialized courts and enables them to guide newly established specialized courts and court-based programs that wish to significantly improve their responses to domestic violence cases and ensure victim safety and offender accountability. “I’m very pleased that this money will be available for the vital work of supporting women who are the victims of domestic and other forms of violence, both in and out of the court system,” said U.S. Attorney Fleming. “The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system's approach to supporting families affected by violence," stated OVW Director Rosemarie Hidalgo. "These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety.”


title: Beckley Man Pleads Guilty to COVID-19 Relief Fraud

component: USAO - West Virginia, Southern

body_text: BECKLEY, W.Va. – Mark William Bailey, 50, of Beckley, pleaded guilty today to theft of government monies, admitting he stole approximately $451,237.51 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. According to court documents and statements made in court, on July 10, 2020, Bailey was the sole owner and president of RMR Delivery Service Inc. when he obtained an Economic Injury Disaster Loan (EIDL) for $150,000. The EIDL program was created by the CARES Act for eligible small businesses experiencing substantial financial disruptions due to the COVID-19 pandemic. EIDL proceeds can only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred. Bailey sought two modifications of his EIDL, increasing the loan amount first to $500,000 and then to $2 million. To obtain each modification, Bailey certified that RMR Delivery Service Inc. would use all loan proceeds solely as working capital to alleviate economic injury caused by the pandemic. Bailey admitted that he fraudulently used approximately $403,768.04 of the EIDL proceeds for his own personal benefit from about March 1, 2022 through about October 20, 2022. Among other personal uses, Bailey purchased a garage and a personal vehicle with the EIDL proceeds. In or around April 2020, Bailey also applied for and received a $110,032 loan through the Paycheck Protection Program (PPP). Also created by the CARES Act for qualifying small businesses, PPP loans were for job retention and certain other business expenses. Bailey admitted that he misappropriated $47,469.47 of the PPP loan to pay his personal mortgage on or about June 4, 2020. Bailey is scheduled to be sentenced on January 12, 2024, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine. Bailey also owes $451,237.51 in restitution. “The CARES Act offered an emergency lifeline amid a devastating pandemic, and Mr. Bailey saw this as an opportunity to enrich himself at the expense of taxpayers,” said United States Attorney Will Thompson. “I commend the thorough, collaborative and all-hands-on-deck approach by the National Aeronautics and Space Administration Office of Inspector General (NASA OIG), the United States Secret Service, the West Virginia State Police-Bureau of Criminal Investigations (BCI) and the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU).” “NASA OIG is committed to investigating and holding accountable those who improperly obtain and use government loans,” said Special Agent in Charge Adelle Harris of the NASA Office of Inspector General’s Eastern Field Office. “I am proud of the exceptional teamwork of our federal and state law enforcement partners, the Pandemic Response Accountability Committee Fraud Task Force, and the USAO for the Southern District of West Virginia which resulted in today’s guilty plea.” “We are committed in our office to protecting taxpayer dollars and holding those accountable who commit fraud,” said West Virginia State Auditor J.B. McCuskey. “The pandemic was challenging for everyone, especially our small businesses, and these loans were to help businesses survive, but unfortunately, we know that some took advantage of the billions of dollars flowing out of Washington. I would like to commend the investigative work by this task force, including our specialized accountants, who are cracking down on this abuse and returning taxpayer dollars to the people.” United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Erik S. Goes is prosecuting the case. The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who suffered the economic effects caused by the COVID-19 pandemic. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus . Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-131. ###


title: Fitchburg Man Sentenced to Over Three Years in Prison for His Role in Wide-Ranging Drug Conspiracy

component: USAO - Massachusetts

body_text: BOSTON – A Fitchburg man was sentenced yesterday in federal court in Worcester for his role in a wide-ranging fentanyl, heroin, crack, and cocaine trafficking conspiracy. Ivan Torres, 32, of Fitchburg, was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to 37 months in prison, followed by three years of supervised release. On March 10, 2023, Torres pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. According to court documents, following a fatal fentanyl overdose in September 2018, an investigation began into a drug trafficking organization in the Fitchburg area. Beginning in July 2019, court authorized interceptions of wire and electronic communications to and from telephones used by members and suppliers of the drug trafficking organization revealed that Torres was a cocaine dealer who supplied cocaine to the drug trafficking organization. Over the course of the investigation, over 1.8 kilograms of a heroin/fentanyl mixture, over 3.6 kilograms of cocaine, over 50 grams of crack cocaine, a stolen, loaded handgun, drug manufacturing equipment and over $376,000 in U.S. currency were seized. Torres is the 12th defendant to be sentenced in this case. All 18 defendants have been convicted – either by guilty plea or jury conviction following trial. The remaining convicted defendants are scheduled to be sentenced in September and October 2023. Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police, made the announcement today. The Fitchburg and Lunenburg Police Departments, U.S. Postal Inspection Service and Massachusetts State Police provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division 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: Maryland Man Pleads Guilty to Extorting Massachusetts Victims He Met Via Online Dating Website

body_text: BOSTON – A Maryland man pleaded guilty today to making extortionate threats toward victims in Massachusetts. Brandon D. Kane, 27, of Baltimore, pleaded guilty to making extortionate threats in interstate commerce. U.S. District Court Judge Patti B. Saris scheduled sentencing for Jan. 11, 2024. Kane was arrested and charged in April 2023. Kane used an online dating website to meet victims locally in Eastern Massachusetts. During such meetings, Kane made unauthorized videos of his victims engaging in illicit drug use or sexual activity with him. Kane then threatened to release the videos to the victims’ families and employers unless his victims paid him. The charge of making extortionate threats in interstate commerce provides for a sentence of up to two years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Jessica Soto and Benjamin Tolkoff of the Criminal Division are prosecuting the case.


title: Lowell Gang Member Pleads Guilty in Drug Trafficking and Money Laundering Conspiracies

body_text: BOSTON – A leader of a Lowell-based gang, One Family Clique (OFC), pleaded guilty yesterday to conspiring with fellow OFC gang members to traffic wholesale quantities of cocaine, and to launder millions of dollars in drug proceeds through casinos in Canada. Virak Prum, a/k/a “Polo,” a/k/a “Capo,” a/k/a “Lips,” 36, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine and one count of money laundering conspiracy. U.S. Senior District Court Judge William G. Young scheduled sentencing for Dec. 14, 2023. In August 2018, law enforcement began investigating OFC in response to a dramatic spike in shootings and gang violence in Lowell. OFC is an alliance between several gangs in and around Lowell with ties to gangs in California and other states. In 2018 and 2019, at least 12 incidents of gunfire in the Lowell area are alleged to be attributable to gang-motivated hostilities between OCF and its rivals. Since at least 2019, Prum and his co-conspirators used the U.S. Postal Service to receive shipments of illegal narcotics, and, in return, to ship cash proceeds to the sources of supply. Members of the conspiracy maintained stash houses in Lowell, which also served as venues for gang meetings and other events furthering the gang’s illegal activities. Over the course of the investigation, agents seized or purchased approximately 12 kilograms of methamphetamine, 2.4 kilograms of cocaine, 2.1 kilograms of MDMA, 513 grams of heroin, and 169 grams of Fentanyl; $177,591 in cash; and seven firearms. In May 2021, Prum led a money laundering operation in which he and his co-conspirators provided “protection” to a shipment from Europe that purportedly contained 8 million Euros in drug proceeds from black tar heroin sales. Specifically, Prum and his co-conspirators helped pack a shipment of money into a truck and escorted it from New York to New Hampshire. Prum was charged with 14 others in June 2021. He is the final defendant in custody to plead guilty in the case. One defendant remains a fugitive. The charge of conspiracy to distribute and to possess with intent to distribute cocaine provides for a sentence of up to twenty years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. The charge of money laundering conspiracy provides for a sentence of up to twenty years in prison, supervised release for up to three years up to life and a fine of up to $500,000 or twice the value of the laundered property. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. Acting United States Attorney Joshua s. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Greg Hudon, Superintendent of the Lowell Police Department made the announcement today. Valuable assistance was provided by the DEA-San Jose Task Force as well as the Long Beach (Calif.) and Santa Clara (Calif.), Police Departments. Assistant U.S. Attorneys Timothy Moran and Fred Wyshak, III of the Organized Crime & Gang Unit are prosecuting 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 . The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Leader of Identity Theft Conspiracy That Stole Nearly 50 Vehicles Sentenced to 8.5 Years in Prison

body_text: BOSTON – A Haverhill man was sentenced today in federal court in Boston for orchestrating schemes to use the stolen identities of United States citizens from Puerto Rico to fraudulently purchase vehicles and other merchandise and apply for and utilize bank accounts and credit cards. Alvin Rivera, 40, was sentenced by U.S. District Court Judge Patti B. Saris to 102 months in prison and three years of supervised release. He was also ordered to pay $389,141 in restitution to victims. In March 2023, Rivera pleaded guilty to one count of conspiracy to commit wire fraud; two counts of wire fraud; three counts of aggravated identity theft; and three counts of false representation of a Social Security number in his District of Massachusetts case; he also pleaded guilty to a similar scheme originating in the District of New Jersey that was transferred to the District of Massachusetts for resolution. Between October 2017 and September 2020, Rivera was the leader of a conspiracy in Massachusetts that used stolen identity information of United States citizens to obtain credit and goods. Under Rivera’s direction, and with stolen identity information that he provided, co-conspirators visited Massachusetts car dealerships to purchase late-model vehicles and applied for 100% financing. In support of the applications, the co-conspirators provided stolen biographical information from real United States citizens, fraudulent Puerto Rico driver’s licenses and Social Security cards in those identities, as proof of identification. The co-conspirators used the stolen identities to illegally open bank accounts and credit cards and purchase vehicles, many of which were exported out of the United States. Between October 2017 and February 2018, Rivera also personally used stolen identity information of United States citizens to apply for credit and fraudulently purchase vehicles in a similar scheme in New Jersey. Together, the co-conspirators fraudulently purchased at least 47 vehicles from dealerships in Massachusetts, Pennsylvania, New York and New Jersey – obtaining over $2 million in cars and other merchandise using the stolen identities. Following Rivera’s arrest, the investigation revealed that in 2020, Rivera also allegedly led a conspiracy that used stolen identity information of United States citizens to apply for and obtain over $450,000 in Economy Injury Disaster Loans, a form of pandemic relief, from the Small Business Administration. It is alleged that Rivera’s co-conspirators fraudulently opened bank accounts to receive those funds, laundered the funds and shared a portion of the profits with co-conspirators in the Dominican Republic. Multiple individuals have been arrested, charged, and pleaded guilty with respect to that conspiracy, and Rivera’s sentencing also took that conduct into account. Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations, in New England; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Brockton Police Chief Brenda Perez made the announcement today. Valuable assistance was provided by the U.S. Attorney’s Office for the District of New Jersey; and the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna J. Nuzum and Adam W. Deitch of the Criminal Division prosecuted the case. The District of Massachusetts investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes. The District of New Jersey investigation was conducted by the Social Security Administration, Office of Inspector General, Office of Investigations.


title: Wheeling businessman charged with wire fraud

component: USAO - West Virginia, Northern

body_text: WHEELING, WEST VIRGINIA – Jeffrey James Morris, age 36, of Wheeling, West Virginia, was charged today with wire fraud. According to a federal criminal complaint, Morris is charged with fraudulently inducing an individual to provide him with funds to renovate the Scottish Rite Cathedral, a building located at the corner of Fourteenth and Byron Streets in East Wheeling. It is alleged that Morris, who is the managing member and majority owner of Roxby Development, LLC, caused an investor to provide him with $350,000 to rehabilitate the Cathedral but instead used the funds for other purposes. It is further alleged that Morris misrepresented work performed upon the Cathedral, the status of the historic tax credits, and the amount of rental income from a purported tenant. The principal purpose of Roxby Development, LLC, was to acquire and develop real estate in the region, to include the Cathedral, the McClure House Hotel, and the Mount Carmel Monastery. The Roxby companies received a total of $6.9 million dollars from approximately twenty investors between October 2019 until July 2022. “Jeffrey Morris made misrepresentations to people in Wheeling, West Virginia, and throughout the country in order to fund a fraudulent scheme,” said United States Attorney William Ihlenfeld. “His arrest today brings an end to a ruse in which innocent investors were tricked into providing him with millions of dollars.” According to Ihlenfeld, additional charges will be filed at a later date. Today’s charge and arrest were necessitated by Morris’s plan to travel outside of the United States next week. Morris appeared in federal court this afternoon where he surrendered his passport and then was released under terms and conditions imposed by the court. U.S. Attorney Ihlenfeld and Assistant U.S. Attorney Jarod Douglas are prosecuting the case on behalf of the government. The matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-CI. Morris is presumed innocent unless and until proven guilty.


title: Des Moines Man Sentenced to Six Years in Prison for Child Pornography Offense

component: Federal Bureau of Investigation (FBI)

body_text: DES MOINES, IA – A Des Moines man was sentenced Wednesday, September 6, 2023, to six years in prison following his guilty plea to receipt of child pornography. According to court documents, over the course of several months in 2022, Matthew John Marcalus, 55, used Instagram to communicate with a fifteen-year-old child. During these conversations, Marcalus engaged in sexually explicit chats, and solicited and received photos of the child engaged in sexually explicit conduct. Marcalus also sent the child photos of Marcalus’s genitals. Eventually, law enforcement became involved and communicated with Marcalus while posing as the fifteen-year-old child. Officers arrested Marcalus when he arrived at a location to meet the child. Following his prison term, Marcalus must also serve a ten-year term of supervised release. There is no parole in the federal system. United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Ankeny Police Department, the Iowa Division of Criminal Investigation, and the FBI Child Exploitation and Human Trafficking Task Force investigated the case. Assistant United States Attorney Ryan Leemkuil prosecuted the case. The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorney’s Offices and the Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.


title: Wilmington Blood Gang Member Sentenced to Eight Years for Gang Related Shooting

component: USAO - North Carolina, Eastern

body_text: WILMINGTON, N.C. – A Wilmington man was sentenced today to 96 months in federal prison for possession of a firearm by a convicted felon. On June 7, 2023, Quajohn Anthony Crews, age 21, pled guilty to the charge. According to court documents and other information presented in court, on October 12, 2022, members of the Wilmington Police Department responded to two almost simultaneous ShotSpotter notifications in a community known by law enforcement to be associated with Gangster Disciple street gang activity. Upon arrival, officers located 12 spent shell casings and several residences that were damaged by gunfire. One of the residences that suffered damage was occupied by a woman and her children at the time of the shooting and officers located a projectile on the floor of an upstairs bedroom. Law enforcement was able to identify a red four door Ford sedan as a suspect vehicle involved in the shooting. The next day, on October 13, 2022, members of the Mobile Field Force, a joint task force comprised of officers with the Wilmington Police Department and deputies with the New Hanover County Sheriff’s Office, located the suspect vehicle traveling near the Hillcrest public housing community and determined it was reported stolen on October 1, 2022. Officers got behind the vehicle and attempted to initiate a stop of the vehicle, but the vehicle fled. While officers were in pursuit of the vehicle, they observed a handgun being thrown from the passenger side of the vehicle. After the vehicle stopped, Crews jumped out of the back passenger window and fled on foot, but he was quickly apprehended and placed under arrest. Officers went to the area where the handgun was thrown from the vehicle and located a black Ruger semiautomatic handgun that had been reported stolen. Following his arrest, Crews was brought to the Wilmington Police Department and interviewed by detectives. During his interview, Crews admitted to being a Blood street gang member and acknowledged there was an ongoing dispute between members of the Blood and Gangster Disciple gangs. He also admitted to traveling to the Creekwood housing community with others on October 12, 2022, and participating in the shooting to “send a message” and retaliate for another shooting that he believed to have been carried out by a Gangster Disciple. Crews also admitted to possessing the Ruger pistol that was thrown from the vehicle and admitted to firing the pistol on October 12, 2022. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Wilmington Police Department Gun Crimes Task Force, the Wilmington Police Department, and the New Hanover County Sheriff’s Office investigated the case and Special Assistant United States Attorney William Van Trigt prosecuted the case. Special Assistant United States Attorney William Van Trigt represents the government. Van Trigt is a prosecutor with the New Hanover County District Attorney’s Office assigned to the United States Attorney’s Office to prosecute federal violent crimes and other criminal matters. This has been made possible by a grant funded by New Hanover County. The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing. 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. 7:23-cr-00009-FL-001. ###


title: West Virginia man sentenced for federal firearms charge

body_text: CLARKSBURG, WEST VIRGINIA – Jessie Ross Duke, age 36, of Fairmont, West Virginia, was sentenced today to 10 years in federal prison for theft from a federal firearms licensee. According to court documents and statements made in court, Duke broke into a licensed firearms dealer in Fairmont, stealing multiple long guns and handguns. Of the 13 firearms stolen, six were recovered nearby shortly after the burglary. Duke had previously stolen firearms from a licensed dealer in South Carolina and committed several other break-ins and robberies. Assistant U.S. Attorney Sarah Wagner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Marion County Sheriff’s Office investigated. Chief U.S. District Judge Thomas S. Kleeh presided. ###


title: U.S. Attorney’s Office Celebrates Funding Awarded For Legal Services And Improved Court Responses To Domestic And Sexual Violence

component: USAO - Michigan, Western

body_text: GRAND RAPIDS, Mich. – The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault. These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety. The U.S. Attorney’s Office for the Western District of Michigan is proud to announce that the Department of Justice Office on Violence Against Women (OVW) awarded $1.783 million to statewide and local agencies in the district to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking. OVW awarded $600,000 under the Legal Assistance for Victims (LAV) Program to the Michigan Coalition to End Domestic and Sexual Violence . The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking. OVW awarded $1.183 million under the Justice for Families (JFF) Program , which includes $583,000 to the Michigan Department of Health and Human Services and $600,000 to the Child and Family Services of Northwest Michigan . The JFF Program aims to improve the capacity of communities and courts to respond to families impacted by violence. “I am pleased to announce that these two organizations in the Western District of Michigan have been awarded funding from the Office on Violence Against Women,” said U.S. Attorney Mark Totten . “Protecting the victims of gender-based violence and discrimination is a critical part of our mission. This funding will help our statewide and local partners and the justice system continue to support survivors of sexual assault, domestic violence, dating violence, and stalking.” “The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system's approach to supporting families affected by violence," stated OVW Director Rosemarie Hidalgo . "These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety.” Following are several cases prosecuted by the U.S. Attorney’s Office for the Western District concerning gender-based discrimination Muskegon Man Sentenced To 15 Years In Prison For Stalking His Ex-Wife And Possessing Firearms and U.S. Attorney Announced Justice Department Settlement In Sexual Harassment Lawsuit Against Michigan Landlord . ### OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw .


title: U.S. Attorney’s Office for the District of Alaska Celebrates Funding Awarded for Legal Services, Improved Court Responses to Domestic, Sexual Violence

component: Department of Justice

body_text: ANCHORAGE, Alaska – The U.S. Attorney’s Office for the District of Alaska is proud to announce that the Department of Justice’s Office on Violence Against Women (OVW) awarded $400,000 to an Alaska organization to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence and stalking. OVW awarded $400,000 under the Expanding Legal Services Initiative (ELSI) to H.O.P.E. – Helping Ourselves Prevent Emergencies, a victim support and advocacy organization in Craig, Alaska. ELSI, which operates under the Legal Assistance for Victims (LAV) Program, supports developing new legal services programs. “The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault in Alaska, especially in our rural Alaska communities where women and girls are experiencing violence at a high rate,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The announcement of ELSI funding for H.O.P.E. is another step in our efforts to support survivors and families impacted by violence in all corners of our state.” “The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system's approach to supporting families affected by violence," said OVW Director Rosemarie Hidalgo. "These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety.” OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw . ###


title: Compassion and Opportunities Top Takeaways from Recent Job Fair

component: USAO - Florida, Southern

body_text: MIAMI – Putting community before self is the mindset of the Law Enforcement Coordination and Community Outreach Section (LEC/COS) of the U.S. Attorney’s Office for the Southern District of Florida. Everything it does—from food distributions to pre-K readings—is designed to improve people’s lives. That was the case at the recent 305 Second Chance Job & Resource Fair at the Government Center in downtown Miami. Job seekers, many of whom were returning citizens and on probation, went from booth to booth getting job leads and information to make their transition easier. The fair was a collaboration between CareerSource South Florida and the U.S. Attorney’s Office. LEC/COS staff provided resources that returning citizens could share with prospective employers. “There are tax credits that a business can use to reduce its tax liability by up to $9,600 the first year if hiring returning citizens through the Work Opportunity Tax Credit Program,” said Law Enforcement Coordination Specialist Mark McKinney, LEC/COS. “There also is a federal bonding program that provides employers with insurance when hiring a returning citizen. Many employers may not know about these protections and incentives so it’s important to ensure returning citizens have this knowledge.” LEC/COS staff also provided a Re-Entry Resource Guide with points of contact ranging from housing assistance and health care to mental health support and legal assistance. But even with all of the support in the world, it still can be incredibly difficult for returning citizens to find employment. One attendee, who’d served time for armed bank robbery, applied for entry-level positions with numerous national companies with no luck. “They had interest in me until they saw my record,” he said. “After that, nothing.” One thing that may help, another attendee mentioned, is if a returning citizen’s parole officer goes with them to the job interview to speak on the applicant’s behalf and tout the progress they’ve made. Helping a returning citizen get a leg up is good for everyone. “There are so many roadblocks society puts up for people returning from prison,” said LEC/COS Chief J.D. Smith. “We have to do better. They’ve already served their time but we continue to punish them by withholding opportunities. It’s as if they have a life sentence.” LEC/COS Community Outreach Specialist Corey Mackay said in difficult times it’s even more important to have compassion. “I empathize with these job seekers,” said Mackay. “It’s hard enough for citizens with no criminal record to get a job so I can only imagine how frustrating it must be for returning citizens. Sometimes getting a job is about being in the right place at the right time and I hope this event can be someone’s right place/right time.” Law Enforcement Coordination Specialist Mark McKinney and Community Outreach Specialist Corey Mackay assist area residents at a recent Job/Resource Fair at the Government Center in downtown Miami. This fair provided individuals and returning citizens with job leads and resources. ###


title: Federal Indictment Unsealed Charging 15 Defendants in $7.9 Million Dollar Conspiracy to Distribute Fentanyl and Methamphetamine

component: USAO - Missouri, Western

body_text: KANSAS CITY, Mo. – A federal grand jury indicted 15 individuals for their roles in a conspiracy to distribute fentanyl and methamphetamine. Jermel D. McCray, also known as “Bumpy,” 28; Eric M. Duncan, 28; Jermon D. McCray, also known as “Crowe,” 28; Devion M. Miles, also known as “Rooster,” 21; Armeer M. Asad, also known as “Low,” 33; Kyrie H. Fields, 28; Adonijah Q. Moody, 23; Gary T. Young, 31; Zamewick D. McCray, also known as “Buck,” 30; Dollahead M. Finney, 21; Dawn M. Keating, 52; Makenna J. Glynn, 23; Clayton M. Hammons, 21; Brandon M. Kline, 25; and Chase R. McNichols, 25, were charged in a 63-count superseding indictment returned under seal by a federal grand jury in Kansas City, Mo., on September 6, 2023. The indictment was unsealed and made public yesterday upon the arrest and initial court appearances of 1 of the 15 defendants. In addition to the drug-distribution conspiracy, Jermel McCray is charged with possession with intent to distribute fentanyl, possession with intent to distribute methamphetamine, possession with intent to distribute cocaine, possession of a machine gun in furtherance of a drug trafficking crime, possession of a machine gun, and felon in possession of firearms. Duncan is also charged with possession with intent to distribute fentanyl, possession with intent to distribute methamphetamine, distribution of fentanyl, distribution of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, possession of a machine gun in furtherance of a drug trafficking crime, possession of a machine gun, and felon in possession of a firearm. Jermon McCray, Zamewick McCray, and Miles are also charged with distribution of fentanyl. Asad and Fields are also charged with distribution of fentanyl and distribution of heroin. Moody is also charged with distribution of fentanyl, possession with intent to distribute methamphetamine, possession of a machine gun, and felon in possession of firearms. Young is also charged with possession with intent to distribute methamphetamine, possession with intent to distribute fentanyl, and felon in possession of firearms. Finney is also charged with distribution of fentanyl, distribution of methamphetamine, possession of with intent to distribute fentanyl, possession of machine guns in furtherance of a drug trafficking crime, and possession of machine guns. Glynn is also charged with possession with intent to distribute fentanyl. Hammons is also charged with possession with intent to distribute THC, possession with intent to distribute marijuana, possession of firearms in furtherance of a drug trafficking crime, and possession of a machine gun. McNichols is also charged with distribution of fentanyl and possession with intent to distribute fentanyl. The superseding indictment also contains a forfeiture allegation that would require the defendants to forfeit to the government $7,918,000, which represents the proceeds of the defendants’ alleged drug-distribution conspiracy. The charges contained in this indictment are simply accusations and are 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. Attorneys Robert Smith and Jeffrey Q. McCarther. It was investigated by the Federal Bureau of Investigation, the Kansas City, Missouri Police Department, the Jackson County Drug Task Force, the Drug Enforcement Administration, the Overland Park, Kansas Police Department, Independence, Missouri Police Department, the Gladstone, Missouri Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Jackson County, Missouri Sheriff’s Office, the Johnson County, Kansas Drug Task Force, the Blue Springs, Missouri Police Department, Hays, Kansas Police Department, the Olathe, Kansas Police Department, and the Kansas City, Kansas Police Department.


title: Founder of Purported Artificial Intelligence-Driven Hedge Fund Charged With Defrauding Clients

component: USAO - New York, Eastern

body_text: A criminal complaint was unsealed earlier today in federal court in Brooklyn charging Mina Tadrus, the founder and chief executive officer of Tadrus Capital, LLC, with wire fraud in connection with a scheme to steal from clients of his purported hedge fund. Tadrus was arrested this morning in Tampa, Florida and made his initial appearance this afternoon in federal court in the Middle District of Florida where he was released on a $100,000 bond. Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York Field Office (IRS-CI), announced the arrest and charges. “As alleged, the defendant preyed on the Egyptian-American Coptic Christian community through a scheme built on false promises that his purported artificial intelligence-driven hedge fund would earn them guaranteed annual returns, when in reality he never invested a dime and just used new investor money to pay the guaranteed monthly returns and line his own pockets,” stated United States Attorney Peace. “This Office will vigorously prosecute those who, like the defendant, claim to use cutting edge technology but instead are committing old-fashioned fraud against the public to enrich themselves.” Mr. Peace expressed his appreciation to the U.S. Securities and Exchange Commission’s New York Regional Office for its assistance in this matter. According to the complaint, between September 2020 and July 2023, Tadrus, a former registered stockbroker, operated Tadrus Capital LLC. Tadrus promised clients he had met at a Coptic Christian Church in Brooklyn and elsewhere that its artificial intelligence-driven trading strategies would earn them guaranteed annual returns of 30% or more. Tadrus did not appear to have engaged in AI-based algorithmic trading. Instead, Tadrus used the investors’ funds to pay a few employees and purchase luxury goods and expensive meals for himself and make good on the fraudulent “returns” to new investors. In total, Tadrus misappropriated at least $5 million from his victims. If you were a Tadrus Capital LLC client and would like to file a complaint, please visit www.iC3.gov . Please reference “Tadrus Capital” or “Mina Tadrus” in your complaint. The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Tadrus faces up to 20 years in prison. The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Genny Ngai and John O. Enright are in charge of the prosecution. The Defendant : MINA TADRUS Age: 36 Tampa, Florida E.D.N.Y. Docket No. 23-MJ-792


title: BILLINGS  MAN SENTENCED TO PRISON FOR COERCION AND ENTICEMENT

component: USAO - Montana

body_text: BILLINGS — Marshall Vincent Lucas, a 42-year-old Billings man, was sentenced on Tuesday for coercing a minor girl to engage in sexual conduct with him and into producing sexually explicit images of herself after providing the girl with a laptop, U.S. Attorney Jesse Laslovich said. U.S. District Judge Dana Christensen sentenced Lucas to 14 years in prison followed by 10 years of supervised release. The defendant pleaded guilty in February. The government alleged in court documents that in September 2021, Lucas provided the victim, Jane Doe 1, who is under the age of 16 years, with a laptop for purposes of communicating with her. Lucas had met Jane Doe 1 through her mother. Lucas began to correspond with Jane Doe 1 using an alias. Through electronic and in-person communications, Lucas asked Jane Doe 1 how she felt about him and requested nude pictures of her and to engage in sexual conduct with him. Lucas persisted, and ultimately engaged in sexual conduct with Jane Doe 1 and she provided him with nude pictures of herself that she produced as his direction. Lucas also sent Jane Doe 1 nude pictures of himself and instructed her to delete electronic communications between them. Assistant U.S. Attorney Zeno B. Baucus prosecuted the case, which was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force and the Musselshell County Sheriff’s Office.


title: Syracuse Man Sentenced to 33 Months for Cocaine Offense

component: USAO - New York, Northern

body_text: SYRACUSE, NEW YORK – Redell Williams, III, age 43, of Syracuse, was sentenced today to serve 33 months’ imprisonment for possession with intent to distribute cocaine. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA)-New York Division, made the announcement. As part of his earlier guilty plea, Williams admitted that on November 10, 2022, he possessed a total of approximately 531 grams of cocaine and approximately 211 grams of cocaine base at his home in Syracuse, New York with the intent to distribute it. Williams further admitted that in his residence, he “cooked” powder cocaine to manufacture cocaine base, also known as “crack” cocaine, and that $4,587 in cash found at his residence was narcotics proceeds. Chief United States District Judge Brenda K. Sannes also imposed a 3-year term of post-release supervision and ordered Williams to forfeit $4,587 as proceeds of the offense. DEA investigated the case, with assistance from Onondaga County District Attorney’s Office, Onondaga County Sheriff’s Office, and the Syracuse Police Department. Assistant U.S. Attorney Matthew J. McCrobie prosecuted the case.


title: Illinois Family Members Plead Guilty to Kidnapping, Forced Labor and Conspiracy for Coercing Two Minors and a Third Victim in Years-Long Forced Labor Scheme

component: Civil Rights Division

body_text: Lorenza Domingo-Castaneda, 34, a Guatemalan national, pleaded guilty today in the Central District of Illinois to three counts of forced labor and two counts of conspiracy to commit forced labor. On Aug. 18, co-defendant Catarina Domingo-Juan, 37, also pleaded guilty to three counts of forced labor and two counts of conspiracy to commit forced labor. A third co-defendant, Domingo Francisco-Juan, 43, previously pleaded guilty on Aug. 30 to forced labor, conspiracy to commit forced labor, kidnapping and conspiracy to commit kidnapping. According to court documents, the defendants, who are siblings, conspired to bring two minor victims from Guatemala to the United States to work in their homes between December 2015 and March 2021. The defendants compelled the victims to provide domestic services within the homes and to work outside the homes at local hotels and factories. The defendants used false promises of a better life and an education to gain the permission of the victims’ mothers for their minor daughters to travel to the United States to live with the defendants. Domingo-Castaneda and Domingo-Juan also compelled a third victim to work in their homes and outside their homes at local businesses. The defendants isolated the victims in their homes, restricted their communications with their family in Guatemala and subjected them to physical, verbal and psychological abuse, among other coercive means. “Human trafficking — particularly compelling the labor and services of unaccompanied minors — cannot be tolerated.” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Traffickers deftly use the promise of America to lure adults and children into the United States from thousands of miles away, only to then turn around and reveal their promises were false as part of a coercive scheme to compel their labor. The Justice Department remains steadfast in identifying and prosecuting human traffickers who exploit vulnerable victims for their own financial benefit.” “Human trafficking is a scourge that affects not only far-flung locales but our local communities as well,” said U.S. Attorney Gregory K. Harris for the Central District of Illinois. “Traffickers prey on vulnerable victims – including children – bringing them to the United States and entangling them in forced labor schemes. The Central District of Illinois is committed to prosecuting these crimes and further asks community members who are aware of any signs of such exploitation to pass that information on to law enforcement.” “Labor traffickers only care about one thing — money,” said Special Agent in Charge Sean Fitzgerald of Homeland Security Investigations (HSI) Chicago. “Those subjected to domestic servitude are robbed of their dignity and freedom. Thankfully, these victims were rescued thanks to the efforts of law enforcement. Apprehending labor and human traffickers who take advantage of our most vulnerable and rescuing those exploited will always be a top priority for HSI.” In accordance with the plea agreements, the defendants face penalties of 20 years up to life in prison as well as mandatory restitution. A federal district court judge will determine any penalty after considering the U.S. Sentencing Guidelines and other statutory factors. HSI with the assistance of the Champaign Police Department, Champaign County Sheriff’s Office, U.S. Marshals Service and Champaign County State’s Attorney’s Office investigated this case. Assistant U.S. Attorney Bryan Freres for the Central District of Illinois and Trial Attorney Kate Alexander of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case. Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org . Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking .


title: Four Defendants Sentenced on Federal Charges Stemming from Staged Motor Vehicle Accidents

component: USAO - Kentucky, Western

body_text: Louisville, KY – Four defendants were sentenced this week for conspiracy to commit health care fraud. Two of the defendants were also sentenced for mail fraud, and one defendant was sentenced for money laundering. U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Brian Jones of the FBI Louisville Field Office, Special Agent in Charge Bryant Jackson of the Internal Revenue Service, Criminal Investigation (IRS-CI) Cincinnati Field Office, U.S. Postal Inspector in Charge Lesley Allison of the Pittsburgh Division, and Director Juan Garrett of the Kentucky Department of Insurance made the announcement. According to court documents, Joel Abad , 40, of Miami, Florida, Junis Peguero , 40, of Riverview, Florida, Carlos Vazquez , 57, of Louisville, Kentucky, Jose Cordoba Reira , 47, of Louisville, Kentucky, and Miguel Moreno-Cardenas , 55, of Louisville, Kentucky, conspired to recruit people to participate in fake automobile accidents and to obtain treatment at certain chiropractic clinics in Louisville, Kentucky, where insurance companies were billed for the treatment. On September 7, 2023, Peguero was sentenced to 2 years and 7 months in prison, followed by a 3-year term of supervised release, for conspiracy to commit health care fraud and mail fraud. On September 7, 2023, Vazquez was sentenced to 5-years’ probation for conspiracy to commit health care fraud. On September 8, 2023, Reira was sentenced to 1 year and 2 months in prison, followed by a 2-year term of supervised release, for conspiracy to commit health care fraud and money laundering. On September 8, 2023, Moreno-Cardenas was sentenced to 1 year and 2 months in prison, followed by a 2-year term of supervised release, for conspiracy to commit health care fraud and mail fraud. All defendants were ordered to pay $343,832.41, jointly, and severally, in restitution. There is no parole in the federal system. Joel Abad will be sentenced later. The case was investigated by the FBI, IRS-CI, USPIS, and the Kentucky Department of Insurance. Assistant U.S. Attorneys Joseph Ansari and Christopher Tieke prosecuted the case with assistance from health care fraud investigator Bob Masterson of the U.S. Attorney’s Office. ###


title: Porterville Man Sentenced to Over 17 Years in Prison  for Conspiracy to Possess with Intent to Distribute Methamphetamine

component: USAO - Mississippi, Southern

body_text: Jackson, Miss. – Cordaryl Deshean Ford, 37, of Porterville, was sentenced to 210 months in federal prison for conspiracy to possess with intent to distribute 50 grams of more of methamphetamine, announced U.S. Attorney Darren LaMarca and acting Special Agent in Charge Eric DeLaune of Homeland Security Investigations in New Orleans. According to court documents, in May 2020, Cordaryl Deshean Ford conspired with others to distribute methamphetamine in and around the Kemper County area. Ford and his co-conspirators were charged in a federal indictment with conspiracy to possess with intent to distribute methamphetamine. Ford entered a plea of guilty to his charge on the first day of trial in U.S. District Court in Jackson. The case was investigated by Homeland Security Investigations, the Drug Enforcement Administration, Mississippi Bureau of Narcotics, Mississippi Attorney General’s Office, Kemper County Sheriff’s Office, Neshoba County Sheriff’s Office, Philadelphia Police Department, Mississippi Department of Wildlife, Fisheries and Parks, Mississippi National Guard Counterdrug Task Force, and the Madison Police Department. Assistant United States Attorneys Keesha Middleton and Carla Clark prosecuted the case. This case is the result of an extensive investigation targeting illegal drug trafficking in the Neshoba and Kemper County areas. The case 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: Jamaican National Charged with Debt Relief Scam

component: Criminal Division

body_text: Sereika Savariau, also known as Sereika Savariau-Goodison, 36, of Jamaica, appeared in U.S. federal court today and was arraigned on an eight-count indictment charging her with creating a series of fraudulent debt relief companies that tricked U.S. victims into paying fees and disclosing personal identifying information sensitive information, and identity documents to obtain debt relief, which did not actually exist. The announcement was made by U.S. Attorney Matthew M. Graves for the District of Columbia and Assistant Inspector General for Investigations Sally Luttrell of the Treasury Department, Office of Inspector General. On Dec. 2, 2021, a federal grand jury returned an eight-count sealed indictment charging Savariau with one count of conspiracy to commit wire fraud affecting a financial institution, four counts of wire fraud affecting a financial institution and three counts of aggravated identity theft. The indictment alleges that between 2016 and 2018, Savariau conspired with others to profit from fees paid by victims of fraudulent debt relief companies. The indictment alleges that conspirators created and operated fraudulent businesses and websites that marketed and sold fraudulent debt relief services to members of the public. Conspirators fraudulently misrepresented that members of the public could apply for and obtains thousands of dollars’ worth of debt relief on their outstanding, unpaid bills in the form of grants, all in exchange for payment of a service processing fee. Conspirators also claimed that the purported debt relief was funded and administered by the U.S. government. Through their false representations, Savariau and her co-conspirators are alleged to have induced or attempted to induce victims throughout the United States to pay over a million dollars’ worth of service processing fees to Savariau and her co-conspirators via Western Union, Money Gram, PayPal and other payment mechanisms. Savariau arrived in the D.C. metropolitan area on Thursday after being extradited from Jamaica. At today’s initial appearance, the Honorable Zia M. Faruqui ordered that she be held without bond pending her next hearing, which is scheduled for Sept. 20. This case was investigated by the U.S. Department of Treasury’s Office of Inspector General, the Justice Department's Computer Crime and Intellectual Property Section, and the U.S. Attorney’s Office for the District of Columbia. The Justice Department’s Office of International Affairs provided valuable assistance in securing the arrest and extradition of Savariau. The case is being prosecuted by Trial Attorneys Louisa Becker and Ashley Pungello of the Criminal Division's Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Kondi Kleinman for the District of Columbia. An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty. savariau_indictment_september_8th.pdf


title: U.S. Attorney’s Office Hosts Event for United Against Hate Initiative

body_text: ANCHORAGE, Alaska – The U.S. Attorney’s Office for the District of Alaska is partnering with Federal, State and local law enforcement to deliver a series of community events designed to educate the public about hate crimes, hate incidents and discrimination. The first outreach event was held in Anchorage on Sept. 7, 2023. It focused on building relationships with organizations and local leaders who interact with the LGBTQ2SIA+ community in Alaska. The events are part of the U.S. Justice Department’s “United Against Hate” initiative. United Against Hate is a nationwide initiative focused on convening local forums that connect community groups to Federal, State and local law enforcement to increase community understanding and reporting of hate crimes; build trust between law enforcement and communities; and create and strengthen alliances between law enforcement and other government partners and community groups to combat unlawful acts of hate. The program was launched in September 2022. “The United Against Hate initiative serves as an avenue to protect our communities, share methods for reporting, encourage reporting of hateful acts, and educate community leaders and members on laws surrounding hate crimes and discrimination,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “We were honored to share the stage with leaders and first responders yesterday as we discussed this important topic. The conversations had at the recent event are a crucial step in combatting acts of hate in the LGBTQ2SIA+ community and continuing to build important relationships between law enforcement and communities in Alaska.” Yesterday’s event featured a joint presentation from Federal, State and local law enforcement officials and prosecutors. An official from the U.S. Justice Department’s Community Relations Service was in attendance as well. The presentation included information regarding the differences between hate crimes and hate incidents, anti-discrimination laws and the importance of reporting acts of hate to law enforcement. Participants were invited to share views on how law enforcement can best support LGBTQ2SIA+ community members who experience a hate crime or incident. The event also included a panel of Federal, State and local law enforcement personnel. Participants in the panel included: U.S. Attorney Tucker Supervisory Special Agent Andy Smith, FBI Anchorage White Collar Squad Supervisor Jenna Gruenstein, Alaska Department of Law, Chief Assistant Attorney General Captain Tony Wegrzyn, Alaska State Troopers Deputy Chief Sean Case, Anchorage Police Department The U.S. Attorney’s Office will host additional events as part of the United Against Hate initiative, and future events will focus on communicating with different communities across Alaska. These events will encourage further collaboration, support hate crime prevention efforts and encourage the reporting of hate crimes and incidents. If you are interested in holding an event for a specific community in Alaska, send an email to USAAK.UAH@usdoj.gov . ###


title: Artificial Turf Company Owner Sentenced to 15 Months in Prison for Tax Evasion by Failing to Report Nearly $9 Million in Business Income

component: USAO - California, Central

body_text: SANTA ANA, California – The owner of a Newport Beach-based artificial turf company was sentenced today to 15 months in federal prison for failing to report nearly $9 million in income his business earned and for attempting to evade the payment of more than $946,000 in federal income taxes. Craig Steven Voyton, 56, of San Pedro, was sentenced by United States District Judge John W. Holcomb, who also ordered him to pay a fine of $50,000. Voyton pleaded guilty on July 7 to one count of tax evasion. Voyton owns and operates Smart Grass LLC, which installs artificial turf for residential and commercial customers in Orange and Los Angeles counties. From 2016 to 2020, Smart Grass generated more than $1.5 million in gross income per year from its business operations, and – not wanting to pay taxes that income – Voyton attempted to conceal that income from the IRS. To do so, Voyton emailed customers federal tax forms listing false identification information, so, if and when the customers reported to the IRS the payments they had made to him and his company, those payments would not be linked directly to Voyton or Smart Grass for tax purposes. On three occasions in 2020, Voyton emailed to customers in Los Angeles and Beverly Hills an IRS Form W-9 with false information and a signature in a fictitious identity. Voyton sent similar fraudulent IRS Forms W-9 during the tax years 2016, 2017, 2018 and 2019. Voyton also provided a false IRS Form W-9 to a school in Irvine in August 2016. While attempting to evade the payment of taxes during this time, Voyton made more than $63,000 in transfers to the Coinbase cryptocurrency exchange from a Smart Grass bank account. Voyton also used more than $500,000 in company funds to make real estate purchases in Nevada and Mexico. In total, Voyton failed to report approximately $8,926,333 in income, which prevented the IRS from assessing the total sum of approximately $946,479 in federal income taxes for the tax years 2016 through 2020. Prior to today’s sentencing hearing, Voyton paid the IRS all the back taxes he owes, plus interest, as well as paying an additional 75% fraud penalty. “[Voyton] was a businessowner who operated a business in Orange and Los Angeles counties,” prosecutors argued in a sentencing memorandum. “He generated more than a million dollars in business income each year. He reported not one dime of that to the IRS.” IRS Criminal Investigation investigated this matter. Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office prosecuted this case.


title: Activity in the United States Attorney's Office

component: Drug Enforcement Administration (DEA)

body_text: Violent Crime Shawn Lee Gardner , age 24, of Riverton, Wyoming, was sentenced on September 1, 2023, to 34 months’ imprisonment for sexual abuse of a minor. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence which includes five years of supervised release following Gardner’s prison term, and approximately $832 in restitution. According to court documents, Gardner engaged in sex with a 12-year-old girl, whom he had met on Snap Chat. The case was prosecuted by Assistant U.S. Attorney Kerry J. Jacobsen. Gardner was indicted by the federal grand jury in March and pled guilty in June, 2023. Drug Trafficking Kevin Paul Johnson, age 48, of Casper, Wyoming, was sentenced on September 5, 2023, to 120 months’ imprisonment for possession with intent to distribute methamphetamine. U.S. District Court Judge Alan B. Johnson imposed the sentence which includes five years of supervised release, after the prison term, and $500 community restitution. According to court documents, on December 28, 2022, the Wyoming Division of Criminal Investigation (DCI) searched Johnson’s residence and seized approximately 1.2 kilograms of methamphetamine and $2,152 in cash. Johnson was charged by the U.S. Attorney’s Office in May and pled guilty in June, 2023. Christopher Willmer , age 50, of Casper, Wyoming, was sentenced on August 21, 2023, to 48 months’ imprisonment for possession with intent to distribution of fentanyl. U.S. District Court Judge Alan B. Johnson imposed the sentence which includes three years of supervised release. According to court documents, on December 29, 2022, Laramie County Sheriff’s Office deputies assisted Wyoming Probation and Parole with a search of a Cheyenne hotel room that was shared by Willmer and a woman on probation. During a pat down, Wilmer dropped multiple suspected fentanyl pills from his hand onto the floor. Deputies also located two bags of suspected fentanyl pills in Wilmer's right sock. In total after the search of the hotel room was completed, deputies located approximately 500 fentanyl pills. Willmer was indicted by the federal grand jury in March and pled guilty in April, 2023. This crime was investigated by the Laramie County Sheriff’s Office and the Drug Enforcement Administration. Assistant U.S. Attorney Timothy J. Forwood prosecuted the case. Reggie Dale Nelams , age 45, of Louisiana, and Tawna Goodwin-McMurry , age 44, of Casper, Wyoming, were sentenced for conspiracy to distribute methamphetamine and fentanyl. Nelams was sentenced on September 1, 2023, to 57 months’ imprisonment and Goodwin-McMurry was sentenced on June 6, 2023, to 36 months’ imprisonment. Chief United States District Court Judge Scott W. Skavdahl imposed the sentences, each of which included four years of supervised release following imprisonment and $500 community restitution. According to court documents, in January 2021, the Wyoming Division of Criminal Investigation (DCI) learned that Nelams was distributing controlled substances in Natrona County. During the investigation, a traffic stop on Nelams’ vehicle resulted in the seizure of over 400 grams of methamphetamine and 120 grams of fentanyl. When interviewed, Nelams admitted to selling controlled substances in Natrona County and Riverton, Wyoming. A review of Nelams’ phone uncovered messages related to drug trafficking with Goodwin-McMurry and others. Agents also found a drug ledger documenting Goodwin-McMurry’s drug purchases from Nelams. Nelams and Goodwin-McMurry were indicted in January and each pled guilty in March 2023. This crime was investigated by the Wyoming Division of Criminal Investigation. Assistant United States Attorney Jonathan C. Coppom prosecuted the case. About the United States Attorney’s Office The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include: Environmental Justice The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies. Project Safe Childhood Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious. Project Safe Neighborhoods Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful. Victim Witness Assistance The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect. To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking


title: Final two U.S. based defendants in Amazon bribery case sentenced

component: USAO - Washington, Western

body_text: Seattle – Two significant players in a scheme to bribe Amazon employees and contractors were sentenced today in U.S. District Court in Seattle to various federal charges for their scheme to corrupt the Amazon Marketplace with bribes, forged documents and false claims, announced Acting U.S. Attorney Tessa M. Gorman. “For over three years these defendants grew their business by cheating: bribing Amazon employees, forging documents, attacking competitors with fake reviews, and even posting cartoonish obscene gestures on competitors’ order pages. Now they face the consequences,” Acting U.S. Attorney Gorman said. Joseph Nilsen, 33, was sentenced to 18 months in prison for conspiracy to commit wire fraud, conspiracy to commit violations of the Travel Act and filing a false tax return. Following prison, he is on three years of supervised release and must pay a $20,000 fine. Kristen Leccese, 34, was sentenced to two years of probation with six months of home confinement and a $4,000 fine for conspiracy to commit violations of the Travel Act. Both are New York residents. At Nilsen’s sentencing hearing, U.S. District Judge Richard A. Jones said, “It’s almost as if you and the others treated Amazon as an evil empire subject to your attack…. You were a significant contributor to the overall operation… The only reason you stopped is because you were caught.” The couple, who are engaged to be married, are the final two of five U.S. based defendants to be sentenced in the case. One defendant, based in India, remains a fugitive. According to records filed in the case, Nilsen played a central role in the Amazon bribery scheme. He coordinated among the various defendants making it possible for a number of third-party sellers on Amazon to access the illegally obtained information and services. Nilsen was aided by Leccese and their associates conspiring to pay bribes to Amazon employees and contractors to misuse their access to Amazon networks and confidential information. They sought to obtain various unfair competitive advantages for certain merchants on the Amazon Marketplace by, among other things, interfering with Amazon’s ability to monitor the safety and authenticity of goods sold and impairing the accuracy of information posted on the Marketplace. Leccese forged documents for suppliers to gain access to restricted product categories by misrepresenting the source of goods. Nilsen and Leccese both manipulated customer reviews for competing products with Nilsen attacking other merchants’ postings and product listings. Prosecutors asked Judge Jones to sentence Nilsen to 19 months in prison saying, “Nilsen provided the illegal services from Amazon insiders to a substantial number of his own clients, as well as a substantial number of Rosenberg’s clients. This coordinating role, where Nilsen was the linchpin connecting a large number of seller clients to Amazon insiders providing a wide array of illegal services, makes Nilsen the most culpable of the co-defendants…. This global conspiracy caused significant harm to consumers, competing small businesses, and Amazon.” “Mr. Nilsen and Ms. Leccese were key participants in this bribery and fraud scheme.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Their elaborate fraud, not only attempted to trick customers into using specific merchants, they also sought to discredit competitors of those merchants. I am grateful we’ve reached a resolution of this complex investigation and applaud the work of our investigators and partners.” Nilsen also filed a false tax return. In 2018 and 2019 he failed to file tax returns on behalf of his Amazon consulting company, and in 2017 he filed a false tax return significantly underreporting his and his company’s actual taxable revenue. For tax year 2017, the tax loss to the U.S. is $44,178. Nilsen was ordered to pay that in restitution to the IRS today. “Never underestimate the power of fraud…to get you in trouble,” said Special Agent in Charge Adam Jobes, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Fair business practices and an even playing field are fundamental to a healthy economy, and IRS:CI is committed to investigating those who bribe and cheat to try to get ahead.” On February 11, 2022, defendant Rohit Kadimisetty, 29, of Northridge, California, was sentenced to ten months in prison and ordered to pay a $50,000 fine. On February 10, 2023, Hadis Nuhanovic, of Acworth, Georgia, was sentenced to 20 months in prison. He was ordered to forfeit $100,000 as proceeds of the conspiracy, and to pay $160,453 in restitution to the Internal Revenue Service. On July 14, 2023, Ephraim Rosenberg, 48, of Brooklyn, NY, was sentenced to two years of probation with one year of home confinement and a $100,000 fine. Defendant Nishad Kunju, of Hyderabad, India, has not been arraigned on the indictment. The case was investigated by the FBI, with assistance from the Internal Revenue Service-Criminal Investigations (IRS-CI), and the Department of Justice Office of International Affairs.


title: Two Brothers Plead Guilty To COVID Relief Fraud

component: USAO - New York, Western

body_text: BUFFALO, NY – U.S. Attorney Trini E. Ross announced today that two brothers, Larry Jordan, 45, of Lancaster, NY, and Sutukh El a/k/a Curtis Jordan a/k/a Hugo Hurt a/k/a Hugo Hermes Hurtington, 41, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to commit bank fraud and wire fraud for their participation in a scheme to file fraudulent loan applications seeking forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine. In addition, Jordan pleaded guilty to bank fraud, which carries a maximum penalty of 30 years in prison and engaging in monetary transactions in criminally derived property, which carries a maximum sentence of 10 years in prison. According to court documents, between April and September 2020, Jordan and El conspired to submit eight fraudulent PPP loan applications on behalf of companies they owned or controlled. Three of the applications were submitted to Evolve Bank & Trust and the other five were submitted to Lendio, a financial technology company based in Utah. The applications contained false statements about the 2019 payroll expenses of each company, which were used to calculate the amount of PPP funds to which the applicant-companies would be entitled. To corroborate the applications, Jordan and El submitted IRS forms, which had never been filed with the IRS, as well as fraudulent payroll registers that purported to identify the names, personal information, and salary of the employees identified on the PPP applications. For example, a PPP loan application was submitted on behalf of 5 Stems Inc to Evolve. The application represented that in 2019, 5 Stems Inc had 194 employees and an average monthly payroll of $242,133.33. In truth, 5 Stems Inc had nine employees in 2019 and paid those employees a total of approximately $57,380 for all of 2019. Evolve approved the application and funded a $605,200 loan. The money was deposited into an account controlled by defendant El. Some of the money was used for the defendants’ own investments, as well as personal expenses and home improvements. This case was investigated by the Federal Deposit Insurance Corporation’s Office of Inspector General, the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection’s Office of the Inspector General, the Federal Housing Finance Agency’s Office of the Inspector General, the Federal Bureau of Investigation, and the Small Business Administration’s Office of Inspector General. Assistant U.S. Attorneys Charles Kruly and Grace Carducci for the Western District of New York and Trial Attorneys Ariel Glasner and Della Sentilles of the Criminal Division’s Fraud Section are prosecuting the case. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . Sentencing is scheduled for January 17, 2024, before Judge Sinatra. # # # #