title: Former President of The Lerner Group Pleads Guilty to Defrauding His Clients

component: USAO - New York, Eastern

body_text: Earlier today, in federal court in Brooklyn, Marat Lerner, the former president of a debt relief services business, pleaded guilty to one count of wire fraud conspiracy and one count of committing wire fraud while he was on pre-trial release. Lerner admitted that he lied to his victims and that he stole money that the victims had intended to use to pay off their home mortgages. The proceeding was held before United States District Judge Nicholas G. Garaufis. When sentenced, Lerner faces a maximum sentence of 50 years’ imprisonment. Lerner has also agreed to pay $2,554,217.11 in restitution. He was indicted in January 2023. Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, New York Field Office (FBI), and Thomas Fattorusso, Special Agent-in-Charge, New York Field Office, Internal Revenue Service – Criminal Investigations (IRS CI), announced the guilty plea. “As he admitted today, Marat Lerner turned the victims’ American dreams into a nightmare by promising mortgage and debt relief, and instead preyed on their hard-earned life savings for his own personal gain,” stated United States Attorney Peace. “My Office will continue to protect immigrant communities against those who choose to use their positions of trust to defraud and steal from them.” “Marat Lerner operated as an underground broker in his local community; but instead of completing his end of the bargain by paying their mortgages, he pocketed the money of his unsuspecting victims to live a life of luxury. This wasn’t just a money scam, this fraud affected his own community’s homes and families. Those who fell prey to Lerner’s deceit defaulted on their mortgage payments, and some fell into foreclosure. Today’s guilty plea and agreed restitution is just one step towards his victims getting justice, and his sentencing is the next,” stated IRS CI Special Agent-in-Charge Fattorusso. According to court documents and facts presented at the guilty plea proceeding, Lerner was the owner of the “Lerner Group,” a business that claimed to provide debt relief services, including mortgage modifications, principally to the Eastern European immigrant community in Brooklyn. Many of the victims that the defendant defrauded were already experiencing financial hardship and had specifically sought Lerner’s assistance to help reduce their monthly mortgage payments. Lerner, in turn, promised that he could help them lower their monthly mortgage payments by working with their mortgage lenders to secure a mortgage loan modification or federal homeowner assistance. To carry out his fraud, Lerner instructed the victims that he needed access to their bank accounts so that he could directly transmit payments to the mortgage banks on the victims’ behalf, and that the payments would be addressed to either an escrow agent that would hold the funds until their mortgages had been modified, or to entities affiliated with their mortgage lenders. Lerner further instructed the victims not to contact their mortgage lenders directly and that he would serve as the liaison between the victims and the victims’ lenders. In reality, Lerner stole over $2.5 million from the victims – money that the victims had intended to use to pay their mortgages. Once Lerner gained access to the victims’ bank accounts, Lerner transmitted funds from their accounts to companies and/or bank accounts that he himself controlled. Lerner kept the majority of the victims’ money, spending it on personal and business expenses, including a BMW, luxury goods, and expensive meals. To conceal his fraud, Lerner told the victims to disregard notifications from their mortgage lenders regarding delinquent payments and past due balances. In January 2023, Lerner was indicted by a federal grand jury in the Eastern District of New York and arrested in connection with the above fraud. Pursuant to an order of the United States District Court for the Eastern District of New York, Lerner was released on bail and instructed, among other things, not to commit additional crimes. However, Lerner continued to steal from his victims even after being arrested for the same conduct. After his arrest in this case, between January 2023 and May 2023, Lerner stole at least $10,000 from his victims. Lerner’s bail was subsequently revoked. As a result of Lerner’s years-long fraud, mortgage lenders have initiated foreclosure proceedings against several of the victims. As part of his guilty plea, Lerner has agreed to pay approximately $2,554,217.11 in restitution to the victims. The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Nicholas Axelrod and Genny Ngai are prosecuting the case with assistance from Paralegal Specialist Jacob Menz. The Defendant : MARAT LERNER Age: 41 Brooklyn, New York E.D.N.Y. Docket No. 23-CR-15 (NGG)


title: БЫВШИЙ ПРЕЗИДЕНТ КОМПАНИИ LERNER GROUP ПРИЗНАЕТ СВОЮ ВИНУ  ПО ОБВИНЕНИЮ В МОШЕННИЧЕСТВЕ В ОТНОШЕНИИ КЛИЕНТОВ

body_text: Ранее сегодня в федеральном суде Бруклина Марат Лернер [Marat Lerner], бывший президент компании, занимающейся оказанием услуг по облегчению бремени задолженности, признал себя виновным по одному пункту обвинения в заговоре с целью совершения мошенничества с использованием электронных средств и по одному пункту обвинения в совершении мошенничества с использованием электронных средств в период досудебного освобождения. Лернер признал, что он обманывал своих жертв и украл денежные средства, которые они намеревались использовать для погашения ипотечных кредитов. Судебное слушание проходило перед окружным судьей США Николасом Гарауфисом [Nicholas G. Garaufis]. При вынесении приговора Лернеру грозит максимальное наказание в виде 50 лет тюремного заключения. Лернер также согласился выплатить 2 554 217,11 долларов в качестве компенсации. Обвинение было предъявлено ему в январе 2023 года. Бреон Пис [Breon Peace], прокурор США по Восточному округу Нью-Йорка, Джеймс Смит [James Smith], помощник директора Федерального бюро расследований (FBI) в Региональном управлении Нью-Йорка, и Томас Фатторуссо [Thomas Fattorusso], руководящий специальный агент в Региональном управлении Нью-Йорка (Налоговое управление США – Отдел расследований по уголовным делам), объявили о признании обвиняемым своей вины. «Как сегодня признал обвиняемый, Марат Лернер превращал американскую мечту своих жертв в настоящий кошмар, давая ложные обещания об облегчении бремени задолженности по ипотечным кредитам, а на самом деле занимаясь хищением их с трудом заработанных сбережений ради собственной выгоды, — заявил прокурор США Пис. — Прокуратура продолжит защищать сообщества иммигрантов от преступников, использующих свое доверительное положение для совершения мошенничества против них и хищения их денежных средств». «Марат Лернер действовал в качестве подпольного посредника в своем местном сообществе, но вместо добросовестного выполнения своих обязательств путем выплаты ипотечных кредитов он незаконно присвоил деньги своих ничего не подозревающих жертв, чтобы жить в роскоши. Это было не просто мошенничество с денежными средствами; эти мошеннические действия затронули дома и семьи в его сообществе. Лица, ставшие жертвами обмана Лернера, не смогли выплатить свои ипотечные платежи, а некоторые столкнулись с лишением права собственности за просроченные задолженности. Сегодняшнее признание ответчиком своей вины и согласованное возмещение ущерба — это лишь один шаг на пути обеспечения полной справедливости для жертв его преступлений, а следующий шагом будет вынесение приговора». Согласно судебным документам и фактам, представленным в ходе слушания о признании вины, Лернер был владельцем Lerner Group, компании, заявлявшей, что она предоставляет услуги по облегчению бремени задолженности, включая изменение ипотечных кредитов, главным образом, в сообществах иммигрантов из Восточной Европы в Бруклине. Многие из жертв, обманутые ответчиком, уже испытывали финансовые затруднения и специально обратились за помощью к Лернеру в надежде на снижение ежемесячных выплат по ипотечным кредитам. Лернер, в свою очередь, обещал им, что он поможет им снизить ежемесячные выплаты по ипотечным кредитам, работая с их ипотечными кредиторами с целью изменения ипотечного кредита или получения федеральной помощи домовладельцам. Для совершения мошенничества Лернер давал указания жертвам о том, что ему необходим доступ к их банковским счетам для прямого перевода платежей в ипотечные банки от их имени; он также заявлял, что платежи будут адресованы либо распорядителю условного депозита, который будет удерживать денежные средства до тех пор, пока их ипотечные кредиты не будут изменены, либо организациям, аффилированным с их ипотечными кредиторами. Лернер также давал указания жертвам не связываться напрямую со своими ипотечными кредиторами, поскольку он будет выступать в качестве связующего звена между ними и их кредиторами. На самом же деле Лернер украл у потерпевших более 2,5 миллионов долларов — деньги, которые они намеревались использовать для выплаты своих ипотечных кредитов. Как только Лернер получил доступ к банковским счетам потерпевших, он перевел денежные средства с их счетов в подконтрольные ему компании и/или банковские счета. Лернер удержал большую часть денежных средства жертв, тратя их на личные и деловые расходы, включая автомобиль BMW, предметы роскоши и дорогую еду. С целью скрытия фактов мошенничества Лернер давал указания жертвам игнорировать уведомления от их ипотечных кредиторов о просроченных платежах и задолженностях. В январе 2023 года большое жюри федерального суда Восточного округа Нью-Йорка предъявило Лернеру обвинение и арестовало его в связи с вышеуказанным мошенничеством. Во исполнение постановления Окружного суда США Восточного округа Нью-Йорка Лернер был освобожден под залог и, помимо прочего, получил указание не совершать дополнительных преступлений. Однако Лернер продолжил хищение средств у потерпевших даже после того, как был арестован ранее за те же преступные деяния. После ареста по этому делу, в период с января 2023 года по май 2023 года, Лернер украл у потерпевших не менее 10 тысяч долларов. Впоследствии постановление об освобождении Лернера под залог было отменено. В результате многолетнего мошенничества Лернера ипотечные кредиторы возбудили дело о взыскании задолженности в отношении нескольких потерпевших. В рамках своего признания вины Лернер согласился выплатить потерпевшим около 2 554 217,11 долларов в качестве компенсации. Государственное обвинение находится в ведении Отдела по борьбе с мошенничеством в сфере бизнеса и ценных бумаг Прокуратуры США. За уголовное преследование отвечают помощники прокурора США Николас Аксельрод [Nicholas Axelrod] и Дженни Нгай [Genny Ngai] при содействии помощника юриста Джейкоба Менца [Jacob Menz]. Ответчик : МАРАТ ЛЕРНЕР Возраст: 41 Бруклин, Нью-Йорк № дела E.D.N.Y. 23-CR-15 (NGG)


title: Utah Man Charged in $2.8 Million Wire Fraud Scheme

component: Tax Division

body_text: A federal grand jury in Salt Lake City returned an indictment, unsealed yesterday, charging a Utah man with wire fraud, making a false statement, impersonating a federal officer and aggravated identity theft. According to the indictment, from 2018 to 2020, Santiago Garcia Gutierrez allegedly falsely promised his victim that he could acquire at discounted prices exotic cars, planes and vessels that had been seized by the U.S. government through forfeiture. Garcia allegedly promised the victim that he would transfer these luxury assets to them in exchange for earnest money payments. Garcia allegedly assured the victim that those payments would be paid to the U.S. government, but instead he kept the money. To lure his victim into participating in the scheme, on numerous occasions, Garcia allegedly contacted the victim via text message from multiple phone numbers and falsely claimed to be a confidential government informant, federal agent or Garcia’s own attorney. The indictment alleges that Garcia furthered his scheme by lying to an IRS special agent. In total, Garcia allegedly defrauded the victim of approximately $2.8 million. If convicted, he faces a maximum penalty of 20 years in prison for wire fraud, five years in prison for making a false statement, three years in prison for impersonating a federal officer and two years in prison for aggravated identity theft. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Trina A. Higgins for the District of Utah made the announcement. IRS Criminal Investigation, the Department of Homeland Security’s Office of the Inspector General and the Environmental Protection Agency are investigating the case. Trial Attorneys Richard M. Rolwing and Erika V. Suhr of the Justice Department’s Tax Division are prosecuting the case. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Federal jury convicts Box Elder man of sexually abusing two children

component: Federal Bureau of Investigation (FBI)

body_text: GREAT FALLS — A federal jury on Feb. 7 convicted a Box Elder man of sexually abusing two children at a residence on the Rocky Boy’s Indian Reservation, U.S. Attorney Jesse Laslovich said today. After a two-day trial that began on Feb. 6, the jury found the defendant, Shawn Saddler, Sr., 57, guilty of aggravated sexual abuse and two counts of abusive sexual contact. Saddler faces a mandatory minimum of 30 years to life in prison, a $250,000 fine and not less than five years of supervised release on the charge of aggravated sexual abuse and a maximum of life in prison, a $250,000 fine and not less than five years of supervised release on the charge of abusive sexual contact. Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for June 12. Saddler was detained pending further proceedings. “There is no greater duty of our office than to hold accountable those who victimize children. Saddler’s crimes against these two young victims were disgraceful and it is a relief that the jury convicted him. While his crimes will always traumatize the victims, I hope they find a small measure of comfort knowing that Saddler won’t be able to harm them again. I thank Assistant U.S. Attorney Amanda L. Myers and our support team, along with the FBI and Rocky Boy’s Police Department, for their extraordinary work in investigating and prosecuting this case,” U.S. Attorney Laslovich said. The government alleged in court documents and at trial that in 2021 and 2022 in a residence in Box Elder, on the Rocky Boy’s Indian Reservation, Saddler sexually molested and abused two girls multiple times. Both victims were under the age of 12 years at the time. Assistant U.S. Attorney Amanda L. Myers is prosecuting the case. The FBI and Rocky Boy’s Police Department conducted the investigation. XXX


title: Brownsburg Man Sentenced to Nine Years in Federal Prison for Sharing Thousands of Child Sexual Abuse Videos and Images

body_text: INDIANAPOLIS- Mario Parker, 22, of Brownsburg, Indiana, has been sentenced to nine years in federal prison after pleading guilty to possession of child sexual abuse material. According to court documents, in June of 2021, investigators discovered that an individual living in California had been sharing sexually explicit images and videos via the social media application Kik with someone later identified as Mario Parker. In chats over Kik, Parker learned that the individual from California worked in a daycare and had a sexual interest in children. Knowing that, Parker asked the daycare employee to distribute sexually explicit images and videos of the children in the daycare to Parker knowing that it would result in their sexual exploitation. In one of the Kik conversations, Parker admitted that he would like to adopt a daughter with the intention of raping her. On June 30, 2022, officers executed a federal search warrant at Parker’s residence in Brownsburg and found a Samsung Galaxy cell phone. During a search of the phone, investigators located several graphic sexual abuse videos of children as young as three years old being forcefully tied down and raped by adult men, as well as videos depicting bestiality. In total, officers recovered thousands of images and approximately 889 videos of child sexual abuse from Parker’s cell phone and accounts. In an interview with investigators, Parker admitted to using social media applications such as Kik, Snapchat, and Telegram to communicate about and share child sexual abuse material with users who shared his sexual interest in children. “This pedophile revictimized hundreds of children across the world, many of whom we will never know. Even more disturbing, communicated with other like-minded criminals, sharing these horrific videos and their sick desires to perpetrate these abuses on even more children,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Sexual abuse of children is more widespread than decent people understand, especially the proliferation of abuse images online. Our federal prosecutors will continue to partner with the FBI to identify these criminals, and work to put them where they cannot harm any more of our children.” The FBI investigated this case. The sentence was imposed by U.S. District Court Judge, Jane Magnus-Stinson. Judge Stinson also ordered that Parker be supervised by the U.S. Probation Office for ten years following his release from federal prison and pay $24,000 in restitution to victims. U.S. Attorney Myers thanked Assistant United States Attorney Tiffany J. Preston, who prosecuted this case. If you are a victim of child sexual exploitation, please contact your local police department. Resources for victims of child exploitation can be found on our website at https://www.justice.gov/usao-sdin/project-safe-childhood This case was brought as part of Project Safe Childhood , a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. ###


title: New Mexico Landlords to Pay $42,000 to Resolve Alleged Tenant Abuses Arising from HUD’s Section 8 Low-income Housing Program

component: USAO - New Mexico

body_text: ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Bertrand Nelson, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Southcentral Region, announced today that landlords for properties located in Roswell and Albuquerque paid $30,000 and $12,000, respectively to settle allegations that they violated the anti-fraud False Claims Act by charging low-income tenants more than the amount permitted under HUD’s Housing Choice Voucher Program, commonly known as “Section 8”. The Section 8 program, which is administered by local housing authorities throughout New Mexico and the country, provides a Government subsidy to enable tenants to secure decent housing. The tenant’s share of the rent is determined based upon ability to pay. The total rental amount is determined based upon market rental rates. The program therefore enables tenants to secure decent housing while ensuring that landlords realize full market value for their rental properties. In the Roswell case, the government alleges that apartment complex operator Turnaround Properties overcharged a vulnerable low-income Section 8 tenant for a period of twelve months, despite notices from the Eastern Regional Housing Authority setting forth lawful rental levels. The Government alleges that Turnaround then retained the excess payments despite a request for a refund from the tenant, who suffers from physical and cognitive limitations. Turnaround collected $832 in excess rent. In the Albuquerque case, landlord Santana Ortiz demanded excess rent payments from his tenant for a period of more than four years; even documenting the unlawful payments in a sham lease agreement that was concealed from the local housing authority. The Albuquerque tenant felt compelled to comply with the landlord’s demand for excess payments because she had struggled to find safe, decent housing. Mr. Ortiz participated fully in the Government’s investigation and provided a copy of the improper second lease to Government investigators. Mr. Ortiz collected $5,217 in excess rent. “Low-income families, the elderly, and the disabled deserve dignity in housing,” said U.S. Attorney Alexander Uballez. “That is why Section 8 secures for them the right to decent, safe, and sanitary dwellings. When predatory landlords steal from both the taxpayers and the most vulnerable, we will stand with low-income New Mexican tenants to levy substantial sanctions against those who prioritize profit over people.” “These settlements represent HUD OIG’s priority in protecting HUD beneficiaries from bad actors who prey on their vulnerability for self-enrichment,” said Special Agent in Charge Bertrand Nelson. “HUD OIG is committed to working with Federal prosecutors to pursue and bring to justice landlords who fraudulently overcharge HUD-assisted tenants in violation of Federal law.” “A cornerstone of HUD's Section 8 program, and the key to housing affordability in Section 8, is the Brooke Amendment: a Section 8 tenant pays no more than 30% of their monthly income toward rent and utilities. The local public housing agency which is funded by federal grants pays the rest,” said Attorney Thomas Prettyman, who represented both tenants on behalf of New Mexico Legal Aid. “A small but significant minority of Section 8 landlords flaunt these rules and require tenants to pay extra for rent or utilities, making the housing unaffordable and contravening the very purpose of the Section 8 program. Tenants agree to pay the extra money because they are scared. These extra costs often lead to nonpayment, eviction, loss of vouchers, and homelessness. The results achieved by the US Attorney's Office in these two cases demonstrate the stiff penalties for Section 8 landlords that cheat. We hope these cases will help to discourage Section 8 landlords from breaking the rules, so that the Section 8 program can remain affordable for low-income New Mexicans.” The allegations against Turnaround and Ortiz were brought to the attention of the United States by whistleblowers. The False Claims Act provides for whistleblowers to receive a portion of the amount recovered because of their disclosures. The whistleblowers will receive a share of the settlement proceeds. Absent the willingness of these individuals to come forward, the Government would not have learned of the misconduct by these landlords. The government’s investigations were led by Assistant United States Attorney Sean Cunniff and Auditor Julie Chappell, and investigators from the U.S. Department of Housing and Urban Development, Office of Inspector General. This case was prosecuted as a part of the Department of Justice’s Environmental Justice Strategy. Environmental Justice is 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. This strategy prioritizes cases that will reduce public health and environmental harms to overburdened and underserved communities, including those that hold violators of federal housing laws accountable for their actions. The United States Attorney’s Office for the District of New Mexico partners with federal, tribal, state and local housing agencies and organizations to enable people across the country to live in healthy, thriving communities, and to confirm that justice under the law is justice for all. To learn more about environmental justice or to report a known or suspected environmental violation in New Mexico, please email our Environmental Justice Coordinator at USANM.Environment@usdoj.gov. # # # 24-65


title: Justice Department Secures Language Access Agreement with Sheriff’s Office in Washington State

component: USAO - Washington, Western

body_text: WASHINGTON – The Justice Department announced today an agreement to resolve allegations that the King County, Washington, Sheriff’s Office (KCSO) discriminated against people who are limited English proficient (LEP), in violation of Title VI of the Civil Rights Act of 1964. Under the terms of the agreement, KCSO has agreed to take a number of steps to improve language access for individuals with LEP. Title VI prohibits race, color and national origin discrimination (including discrimination on the basis of English proficiency) by entities that receive federal financial assistance. “The Justice Department is committed to ensuring that our law enforcement agencies are able to protect and serve all people in their community, including crime victims, regardless of their ability to speak English fluently,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement agreement will enhance public safety, and improve delivery of language services for people with limited English proficiency in King County.” “Today’s agreement with the King County Sheriff’s Office helps build community trust,” said U.S. Attorney Tessa M. Gorman for the Western District of Washington. “I am pleased that as soon as the problem was presented to the Sheriff’s Office, the agency realized it had to improve policies around language access and immediately agreed to make changes.” Today’s agreement details a two-year plan to phase in a series of language access supports to improve communication between KCSO deputies and individuals with LEP. Under the agreement, KCSO has agreed to hire a language access program manager; develop interim and final directives prohibiting the use of children, family, bystanders and other unqualified individuals for language assistance; engage in outreach with community members and stakeholders; develop a robust training program and ensure an accessible complaint process. The Justice Department began engaging with KCSO after a community-based organization raised concerns about an incident between a KCSO Deputy and a resident with LEP. The Justice Department provided technical assistance to KCSO, which resulted in this settlement agreement. This agreement was jointly negotiated by the Civil Rights Division and the U.S. Attorney’s Office for the Western District of Washington. The agreement is part of the department’s Law Enforcement Language Access Initiative (LELAI), a nationwide effort to assist law enforcement agencies to overcome language barriers in their day-to-day work. The initiative, which is led by the Civil Rights Division in partnership with U.S. Attorneys’ Offices, provides technical assistance resources and tools that can help state and local law enforcement provide meaningful language access to individuals with LEP, affirmatively engages law enforcement agencies that want to review, update and/or strengthen their language access polices, plans and training and strengthens the connection between law enforcement agencies and LEP community stakeholders and LEP populations. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt and information about limited English proficiency and Title VI is available at www.lep.gov . More information on LELAI is available at www.lep.gov/law-enforcement . Members of the public may report possible civil rights violations at civilrights.justice.gov/report/ .


title: United States Attorney’s Eastern Washington COVID-19 Strike Force Announces Additional Indictments, Arrests

component: USAO - Washington, Eastern

body_text: Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that a federal grand jury has returned two additional indictments in connection with fraudulent COVID-19 relief funding. The indictments are the most recent charges announced by the Eastern Washington COVID-19 Strike Force, which has brought criminal charges against dozens of individuals and companies and recovered millions of dollars in fraudulently obtained COVID relief funding. On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One program, the Paycheck Protection Program (PPP) program, offered forgivable loans to eligible small businesses in order to retain or rehire employees who lost their jobs, or were in danger of doing so, due to the pandemic. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington. The Indictments announced today charge two Spokane-area individuals in two separate cases. The Indictment in United States v. Crawford charges Antonio Feliciano Crawford, age 54, of Mead, Washington, with 30 counts of wire fraud, bank fraud, and false claims arising from PPP and EIDL applications submitted during 2020 and 2021 on behalf of four companies purportedly owned and operated by Crawford: Tann LLC, Crawford Entertainment, A&M Personal Training LLC, and a sole proprietorship doing business as “Antonio Crawford.” The Indictment alleges that Crawford submitted false and fraudulent information and documentation, including fraudulent and fictitious purported tax returns for the companies, in order to obtain at least $186,971 in PPP and EIDL funding for which he was not eligible. In United States v. Oberg , the Indictment alleges that Cheryl Lynn Oberg, age 59, of Spokane, Washington, knowingly participated in a fraud scheme and conspiracy in which Oberg obtained $150,000 in EIDL funding based on a fraudulent application submitted in the name of a periodontal business in Mississippi with which Oberg had no involvement. The Indictment alleges that, while the Mississippi-based business did exist, the application was fraudulent, was submitted without the knowledge of the business, and the EIDL funds went to Oberg, who distributed some of the funds to co-conspirators, and used the remainder to fully pay off an outstanding loan on her personal vehicle. The Indictment further alleges that Oberg lied to FBI investigators when questioned about the scheme. “COVID-19 relief programs were designed to provide a lifeline to struggling businesses during the pandemic. Due to the number of people and businesses that requested funding, some deserving businesses were not able to obtain funding to keep their business in operation. We created the Eastern Washington COVID-19 Fraud Strike Force to hold those accountable who abused these critical programs,” stated U.S. Attorney Waldref. “My Office will continue to lead the effort to prosecute those who stole money intended for those in legitimate need.” In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Department of Homeland Security (DHS) OIG, Internal Revenue Service, Department of Energy OIG, and others. The charges against Crawford carry a maximum of up to 30 years in federal prison, while the charges against Oberg carry a 20-year maximum. United States v. Crawford was investigated by the Eastern District of Washington COVID-19 Fraud Strike Force and by TIGTA, HSI Spokane Field Office, SBA OIG, and the Department of Homeland Security OIG, and is being prosecuted by Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene . United States v. Oberg was investigated by the COVID-19 Fraud Strike Force and by the Federal Bureau of Investigation, Spokane Resident Agency, with analytical support and assistance from SBA OIG, and is being prosecuted by Assistant United States Attorneys Jeremy J. Kelley and Devin Curda . An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. United States v. Crawford : 2:24-CR-00010-TOR United States v. Oberg : 2:24-CR-00009-TOR


title: North Port Man Indicted For Stealing Firearm From Firearms Dealer

component: USAO - Florida, Middle

body_text: Fort Myers, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging James Michael O’Brien (48, North Port) with theft of a firearm from a firearms dealer and possession of a stolen firearm. If convicted, O’Brien faces a maximum penalty of 10 years in federal prison on each count. According to the indictment, on January 17, 2024, O’Brien stole a firearm from J&J One Stop Gun Shop in Port Charlotte, a federal firearms licensee. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Assistant United States Attorney Mark Morgan. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make out neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Lake County Man Arrested For Illegally Possessing A Firearm As A Convicted Felon

body_text: Ocala, Florida – United States Attorney Roger B. Handberg announces the arrest of William Scott Fogg (37, Altoona) on an indictment charging him with possession of a firearm by a convicted felon. If convicted, Fogg faces up to 15 years in federal prison. A federal grand jury indicted Fogg on December 20, 2023. According to court records, Fogg has been convicted of eight felonies since 2008, including burglary, grand theft, and illegal drug possession. On August 28, 2023, Fogg approached his girlfriend, who was seated in a truck with her minor children. Fogg entered the vehicle, took a pistol out of the center console, pulled back the slide, and threatened to shoot all of them. Responding deputies subsequently took Fogg into custody and recovered the loaded firearm. As a convicted felon, Fogg is prohibited from possessing firearms and ammunition under federal law. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lake County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Hannah Nowalk. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.


title: Two Men Plead Guilty to Carjacking and Robbery

component: USAO - Oklahoma, Northern

body_text: TULSA, Okla. – Today in federal court, Ray Alexander Villalba, 21, of Arizona, and Elijah Paul Titone, 25, of Muskogee plead guilty to Carjacking; Carrying and Using a Firearm During and in Relation to a Crime of Violence; Obstructing, Delaying, and Affecting Commerce by Robbery; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence. According to both plea agreements, on December 3, 2022, Villalba and Titone messaged a victim to meet up through a dating app. Villalba and Titone took guns, duct tape, and masks. They hid in bushes and when the victim arrived, they hit, bound, and blindfolded him. They forced the victim to turn over the keys to his vehicle. Villalba drove, while Titone rode in the back with the victim. They threatened him and his family if he did not comply with their commands. Blindfolded and bound, the victim was forced out of the car where Villablba and Titone drove off. The victim was able to break the binding and walked home. He contacted the Tulsa Police Department and reported the vehicle stolen. During a second incident on December 6, 2022, Villalba and Titone broke into a home in Broken Arrow wearing ski masks and carrying firearms. They threatened the victim in the home and demanded marijuana. The victim did not comply and Villalba hit him in the eye with his firearm. As a result, the victim lost sight in that eye. Before leaving the home, they took his cell phone and keys. Villalba and Titone will remain in custody awaiting sentencing. They both face multiple term of imprisonment including up to life for the firearm offenses. At sentencing, the federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Tulsa Police Department, and Broken Arrow Police Department conducted the investigation. Assistant U.S. Attorneys Kenneth Elmore and John Brasher are prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN .


title: New York Man Indicted For Drug Trafficking Offenses

component: USAO - Pennsylvania, Middle

body_text: HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gilberto Rodriguez Jr., age 46, of Long Island, NY, was indicted by a federal grand jury on drug trafficking and firearms charges. According to U.S. Attorney Gerard M. Karam, the indictment alleges that between October 17, 2022 and March 20, 2023, Rodriguez distributed a quantity of fentanyl on three separate occasions, in York County. The indictment further alleges on two separate occasions during that same time frame, Rodriguez distributed approximately 50 grams and more of methamphetamine. Finally, the indictment alleges that on March 20, 2023, Rodriguez possessed a quantity of fentanyl with the intent to distribute the controlled substance. The case was investigated by the York County Detective Bureau, along with the Federal Bureau of Investigation and the Pennsylvania State Police. Special Assistant U.S. Attorney Mark Monroe is prosecuting the case. The maximum penalty for the offenses is life imprisonment, a life term of supervised release following imprisonment, and a $20,000,000 fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. # # #


title: Former jailer charged with sexually assaulting women

component: USAO - Texas, Southern

body_text: LAREDO, Texas - A 28-year-old Laredo man is now in custody for allegedly sexually assaulting and violating the civil rights of two women, announced U.S. Attorney Alamdar S. Hamdani. Hector Humberto Rodriguez Jr. is expected to make an initial appearance before U.S. Magistrate Judge Diana Song Quiroga at 1:30 p.m. A federal grand jury returned the sealed five-count indictment Feb. 6, which was unsealed upon his arrest. Rodriguez was a correctional officer with the Webb County Sheriff’s Department. On two separate occasions, he allegedly deprived two women of their civil rights. While working in his law enforcement capacity, he forcibly sexually assaulted both women while they were housed as inmates at the Webb County Jail, according to the indictment. If convicted, he faces up to life in prison as well as potential fines of $250,000 for each of the five counts in the indictment. The FBI and Department of Justice - Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Brandon Scott Bowling and Leslie Ann Cortez are prosecuting the case. An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.


title: Boone County Man Sentenced for Possession of Child Pornography

component: USAO - Kentucky, Eastern

body_text: COVINGTON, Ky. – A Burlington, Ky., man, David L. Mitchell, 73, was sentenced on Thursday, by U.S. District Judge David Bunning, to 48 months in prison, for possession of child pornography. He also was ordered to pay over $20,000 in victim restitution. According to his plea agreement, on June 29, 2022, law enforcement travelled to Mitchell’s home and requested permission to enter his residence to discuss an investigation. During a consensual search of his home, law enforcement found a USB device and hard drive that Mitchell admitted contained pornographic material of minors, and he also admitted that he had accessed visual depictions of minors engaged in sexually explicit conduct in the past through the Internet. It was discovered the devices contained over 100 unique digital images and over 100 unique digital videos of minors, including minors under the age of 12, engaged in sexual conduct. Under federal law, Mitchell must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years. Mitchell was also ordered to pay $23,000 in victim restitution. Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI); jointly announced the sentence. The investigation was conducted by HSI Northern Kentucky. Assistant U.S. Attorney Andrew Spievack is prosecuting the case on behalf of the United States. The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . — END —


title: West Michigan Man Charged With Child Exploitation Offenses

component: USAO - Michigan, Western

body_text: Richard Anthony Reyna Densmore, a/k/a “Rabid,” Claims Affiliation With Sadistic Child Abuse And Extortion Network GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a federal grand jury returned an indictment charging Richard Anthony Reyna Densmore, 47, of Kaleva, with sexual exploitation of a child, conspiracy to sexually exploit a child, coercion and enticement, and possession of child pornography. Evidence introduced at the detention hearing alleged the defendant encouraged his victims to commit sadistic acts, i.e., acts of self-harm for the sexual gratification of the defendant. “As the allegations in this case demonstrate, the online threats to our children and teenagers evolve and grow every day,” said U.S. Attorney Mark Totten . “Perpetrators can reach kids anywhere, anytime, with devastating effects on our families and communities. My office will do everything in its power to stop this menace and I strongly urge parents, guardians, and anyone who uses a device to be aware and protect themselves.” Based on evidence presented at a February 5, 2024 detention hearing, the government alleged that Densmore, under the username “Rabid,” was involved in creating a chat room on Discord called “Sewer.” One purpose of the “Sewer” server was to stream minors engaging in self-harm and sexually explicit conduct. One example of such self-harm content is “cutting” or “fansigning,” in which someone writes or cuts, into their skin, another’s online username. The government alleges that Densmore was involved in soliciting minors to engage in such conduct and kept related images and videos on his phones. The sexual exploitation offenses each carry a sentence of between 15 and 30 years’ imprisonment. The coercion and enticement offense carries a sentence of 10 years to life in prison. Possession of child pornography carries a maximum sentence of 20 years’ imprisonment. During the detention hearing, the government introduced evidence of Densmore’s affiliation with an online network called “764” and related subgroups. In September 2023, the FBI issued a public service announcement regarding these groups. According to the FBI, these groups target minors; particularly, marginalized children and children experiencing mental health challenges. Prospective members gain access to associated online platforms by livestreaming or uploading videos of minor victims engaging in self-harm and sexually explicit conduct, among other things. Group members use that content to extort additional self-harm and sexually explicit content from victims. “We would like to thank the Manistee County Sheriff's Office and our partners on the FBI’s West Michigan Based Child Exploitation Task Force (WEBCHEX) for their efforts in working to stop further harm against our most vulnerable members of our society, our children,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan . “The FBI encourages families and caregivers to have open and honest conversations with the young people in their life about online exploitation and related risks, including web-based predators, identity thieves, cyberbullies, sextortion, and more. To report online child sexual exploitation, please use the electronic Cyber Tip Line or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children in partnership with the FBI and other law enforcement agencies." U.S. Attorney Mark Totten advised that parents should look for unexpected packages, as members of these abuse and extortion networks are known to send children razor blades, sexual devices, and other materials to use in creating online content. The FBI further advised the public to take a number of precautionary steps, including: Looking for fresh cuts, bruises, wounds, and scars in unusual patterns; Looking for sudden behavior and appearance changes; Being attentive to children wearing long sleeves or pants in unusual circumstances; Monitoring children’s online activity and discussing the risks of sharing information and content; and Running frequent online searches of family and children’s information to help identify and prevent the spread of personal information on the internet. If you are worried about someone who might be self-harming or is at risk of suicide, please consult a health care professional or call 911 in the event of an immediate, life-threatening emergency. The FBI is investigating this case and Assistant U.S. Attorney Adam Townshend is prosecuting it. The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law. ###


title: Two New York Men Indicted for Visa Fraud Conspiracy

component: USAO - Massachusetts

body_text: BOSTON – Two New York men previously arrested and charged in December 2023 in connection with staging armed robberies in furtherance of a visa fraud conspiracy have been indicted by a federal grand jury in Boston, Mass. Rambhai Patel, 36, and Balwinder Singh, 39, were indicted on one count each of conspiracy to commit visa fraud. Patel was arrested in Seattle on Dec. 13, 2023 and remains detained pending trial. Singh was arrested in Queens, N.Y. on Dec. 13, 2023, and was released on conditions following an initial appearance on Dec. 28, 2023. According to the charging documents, starting in March 2023, Patel and his co-conspirators, including at times Singh, set up and carried out staged armed robberies of at least nine convenience/liquor stores and fast-food restaurants across the United States, including at least five in Massachusetts. It is alleged that the purpose of the staged robberies was to allow the clerks present to claim that they were victims of a violent crime on an application for U nonimmigration status (U Visa). A U Visa is available to victims of certain crimes who have suffered mental or physical abuse and who have been helpful to law enforcement in the investigation or prosecution of criminal activity. During the alleged staged robberies, the “robber” would threaten store clerks and/or owners with an apparent firearm before taking cash from the register and fleeing, while the interaction was captured on store surveillance video. The clerks and/or owners would then wait five or more minutes until the “robber” had escaped before calling police to report the “crime.” The “victims” are alleged to have each paid Patel to participate in the scheme. One purported victim allegedly paid $20,000 to participate as a victim in one of the staged armed robberies. In turn, Patel allegedly paid the store owners for the use of their stores for the staged robbery. It is alleged that at least two purported victim co-conspirators submitted U Visa applications based on being victims of the staged armed robberies. The charge of conspiracy to commit visa fraud provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $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. Valuable assistance in the investigation was provided by the U.S. Attorney’s Offices for the Eastern District of New York and the Western District of Washington; FBI’s New York and Seattle Field Offices; U.S. Citizenship and Immigration Services; Massachusetts State Police; Worcester County District Attorney’s Office; and the Hingham, Marshfield, Randolph, Weymouth, Worcester, Upper Darby, (Pa.), West Pittston (Pa.), Louisville, (Ky.) and Bean Station (Tenn.) Police Departments. Assistant U.S. Attorneys Elianna J. Nuzum and Jessica L. Soto of the Major Crimes Unit are prosecuting the case. The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: Federal Jury Convicts Chicago Trader of Engaging in Unauthorized Trading That Caused $30 Million in Losses

body_text: CHICAGO — A Chicago trader has been convicted of fraud for engaging in unauthorized speculative bond trading that cost his employer and others more than $30 million. A jury in U.S. District Court in Chicago on Wednesday convicted KEITH WAKEFIELD, 50, of Chicago, on one count of securities fraud and three counts of wire fraud. Each count is punishable by a maximum sentence of 20 years in federal prison. U.S. District Judge Steven C. Seeger did not immediately set a sentencing date. The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Securities and Exchange Commission, which filed a civil enforcement action against Wakefield, provided valuable assistance. Assistant U.S. Attorneys Sean Franzblau and Bradley A. Tucker are prosecuting the criminal case. According to evidence presented at trial, Wakefield worked as the head of fixed income trading for IFS Securities, Inc., a broker-dealer in Chicago. In 2019, Wakefield knowingly and fraudulently engaged in unauthorized speculative trading in U.S. Treasury bonds using his employer’s trading accounts, causing more than $30 million in losses to the employer and its counterparties. Wakefield attempted to conceal the unauthorized trades and losses by entering fake off-setting trades into a clearing broker’s order system, creating the false impression that he had profitably traded through a different clearing broker. In addition to the fraudulent trading scheme, Wakefield from 2017 to 2019 embezzled hundreds of thousands of dollars from IFS Securities by falsifying the company’s books and records to create fake commissions that Wakefield knew were not actually owed to him.


title: Developer Sentenced for  Conspiring with First NBC Bank President to Defraud First NBC Bank

body_text: NEW ORLEANS – On February 5, 2024, United States District Judge Darrel James Papillion sentenced WARREN G. TREME (“TREME”) , age 59, a resident of Metairie, announced U.S. Attorney Duane A. Evans. TREME previously pleaded guilty to bank fraud conspiracy for his role in the scheme that led to the downfall of First NBC Bank, the New Orleans-based bank that failed in April 2017. TREME , who testified as a government witness at the January 2023 trial of former First NBC Bank President and CEO Ashton Ryan, was sentenced by Judge Papillion to 24 months in prison, followed by three years of supervised release, a $100 mandatory special assessment fee, as well as payment of $6,399,890.38 in restitution, to First NBC Bank’s successors. TREME is jointly and severally liable for the restitution amount with Ryan and William J. Burnell, the Bank’s Chief Credit Officer. According to court documents, from in or around 2008 through April 2017, TREME had a banking relationship with First NBC Bank, individually and through various entities he controlled. TREME also co-owned several entities with Ryan. Because of this conflict of interest, Ryan should not have been involved with TREME’s loans. However, Ryan exercised authority over TREME’s loans, along with Burnell. Throughout TREME’s borrowing relationship at First NBC Bank, TREME lacked sufficient income and cash flow from his businesses to pay his loans and personal expenses. Ryan and Burnell disguised TREME’s true financial condition by making new loans to pay TREME’s existing loans. Court documents further describe a scheme by Ryan and Burnell to take $400,000 from TREME’s business partners as part of a settlement. Rather than using the $400,000 to pay down an outstanding loan debt owed by TREME and his business partners, Ryan and Burnell gave $300,000 to TREME . TREME spent the money on gambling, a trip to the Caribbean, and expenses related to a real estate development company co-owned by TREME and Ryan. During a subsequent Board meeting, Ryan and Burnell falsely stated that the $300,000 was used to pay down the outstanding loan debt owed by TREME and his business partners. Ryan was sentenced to 170 months in prison for his role in this scheme, while Burnell was sentenced to 48 months in prison. Both Ryan and Burnell were sentenced by U.S. District Judge Eldon E. Fallon. U.S. Attorney Evans praised the work of the agencies that conducted this years-long investigation: the Federal Bureau of Investigation - New Orleans Field Office; the Federal Deposit Insurance Corporation, Office of Inspector General, Dallas Regional Office; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General, Miami Field Office. Assistant U.S. Attorneys Matthew R. Payne of the Financial Crimes Unit, Nicholas D. Moses, Health Care Fraud Coordinator, J. Ryan McLaren of the Appellate Unit, and Rachal Cassagne of the Narcotics Unit, are in charge of the prosecution.


title: Gary Man Sentenced to 120 Months in Prison

component: USAO - Indiana, Northern

body_text: HAMMOND – Guadalupe Guerra, 70 years old, of Gary, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio after pleading guilty to Possession of Material Involving the Sexual Exploitation of Minors, announced United States Attorney Clifford D. Johnson. Guerra was sentenced to 120 months in prison, 5 years of supervised release and ordered to pay $33,000 in restitution to the victims of the offense. According to documents in the case, on or about January 31, 2023, Guerra possessed material involving the sexual exploitation of minors while having a previous conviction for aggravated criminal sexual assault. This case was investigated by the United States Department of Homeland Security, Homeland Security Investigations with assistance from the Indiana Internet Crimes Against Children Task Force, the Indiana State Police Digital Forensics Unit, and the United States Marshals Service Great Lakes Regional Fugitive Task Force. The case was prosecuted by Assistant United States Attorney Emily Morgan. 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. Attorneys’ Offices and the DOJ’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: Readout of Justice Department’s Procurement Collusion Strike Force’s Summit in Los Angeles

component: Antitrust Division

body_text: Today, the Justice Department’s Antitrust Division, U.S. Attorney’s Office for the Central District of California and Procurement Collusion Strike Force (PCSF) hosted a summit where procurement officials and law enforcement partners from across Southern California convened to discuss emerging threats and raise awareness. U.S. Attorney (USA) Martin Estrada for the Central District of California, Deputy Assistant Attorney General (DAAG) Manish Kumar of the Justice Department’s Antitrust Division, PCSF Director Daniel Glad and law enforcement partners were joined by representatives from over a dozen state and local government agencies. During the summit, USA Estrada and DAAG Kumar reflected on the PCSF’s growth and success since its inception in 2019. They also detailed additional resources the department has dedicated to combat procurement collusion, emphasized the importance of law enforcement partnerships and a whole-of-government response to persistent threats in government spending and sharpened the PCSF’s focus on the challenges, risks and opportunities posed by increased federal spending in Southern California. Summit participants discussed the importance of defending critical programs under the Infrastructure Investment and Jobs Act, the Inflation Reduction Act of 2022 and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022 from procurement collusion risk. USA Estrada and DAAG Kumar also outlined the ways that state and local government agencies can partner with the PCSF to address these emerging threats. Summit participants included representatives from the FBI, Naval Criminal Investigative Service, Department of Commerce Office of Inspector General, Department of Veterans Affairs Office of Inspector General and the Defense Criminal Investigative Service. The PCSF is the Justice Department’s coordinated, national law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact procurement, grant and program funding at all levels of government — federal, state and local. The PCSF is comprised of the Antitrust Division, multiple U.S. Attorneys’ Offices around the country, the FBI and the Inspectors General for multiple federal agencies. Since its inception in November 2019, the PCSF has opened more than 100 criminal investigations and trained more than 31,000 people. In that time, the PCSF and Antitrust Division have investigated and prosecuted over 65 companies and individuals involving over $500 million worth of government contracts. The summit marks the department’s continued support of the PCSF as it enters its fifth year. To learn more about the PCSF, or to report collusion affecting government contracts, please visit www.justice.gov/atr/procurement-collusion-strike-force .


title: Harvey Man Pleads Guilty to Possession of Materials Involving  Sexual Exploitation of Minors

component: USAO - Louisiana, Eastern

body_text: NEW ORLEANS - U.S. Attorney Duane A. Evans announced today that on February 6, 2024 MAX CORY JOHNSON, JR. (“JOHNSON”) , age 21, of Harvey, pled guilty to Possession of Materials Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (b)(2). JOHNSON faces up to twenty (20) years imprisonment, and/or up to a fine of $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense. In addition, JOHNSON faces no less than five (5) years of supervised release and up to life, following release from prison. According to court documents, the case against JOHNSON stemmed from an undercover online investigation that sought to identify those individuals who were sharing Child Sexual Abuse Material (“CSAM”). On July 20, 2023, Homeland Security Investigations (“HSI”) special agents, and Jefferson Parish Sheriff’s Office deputies, executed a federal search warrant at JOHNSON’s residence in Harvey. JOHNSON confessed to agents that he both, possessed and saved, CSAM to his computer using a specialized network. Sentencing is scheduled for before United States District Judge Wendy B. Vitter. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov . The U.S. Attorney’s Office would also like to acknowledge the assistance of the U.S. Department of Homeland Security, Homeland Security Investigations, and the Jefferson Parish Sherriff’s Office with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.


title: Minneapolis Man Sentenced to 10 Years in Prison for Cocaine Distribution

component: USAO - Minnesota

body_text: MINNEAPOLIS – A Minneapolis man has been sentenced to 120 months in prison followed by five years of supervised release for possession with intent to distribute cocaine, announced United States Attorney Andrew M. Luger. According to court documents, on April 11, 2023, law enforcement executed a search warrant on a Minneapolis home belonging to Luis Fernando Cervantes, 37. As a result of the search, law enforcement found seven one-kilogram packages of cocaine and a firearm. On October 18, 2023, Cervantes pleaded guilty to possession with intent to distribute cocaine. Cervantes was sentenced yesterday in U.S. District Court by Judge Michael J. Davis. This case was the result of an investigation conducted by the Drug Enforcement Agency and the Hennepin County Sheriff’s Office. Assistant U.S. Attorney Campbell Warner prosecuted the case.


title: Readout of U.S. Justice Department Senior Officials Trip to Jamaica

component: Civil Division

body_text: On Feb. 6 and 7, Deputy Assistant Attorney General (DAAG) Arun G. Rao of the Civil Division’s Consumer Protection Branch and Associate Deputy Attorney General (ADAG) and U.S. Coordinator for Caribbean Firearms Prosecutions Michael P. Ben’Ary visited Kingston, Jamaica, to meet with senior officials from the Government of Jamaica and discuss security and law enforcement challenges and our shared interest in strengthening U.S.-Jamaican cooperation in these areas. DAAG Rao and ADAG Ben’Ary speak to Jamaican Prime Minister Andrew Holness. On this visit, they met with Jamaican Prime Minister Andrew Holness and his chief of staff to discuss our shared priorities of combating firearms trafficking and transnational fraud schemes connected to violence in Jamaica, as well as our commitment to further engagement and partnership on these important issues. They also met with U.S. Ambassador to Jamaica N. Nick Perry and other U.S. Embassy leadership and held a roundtable discussion with representatives of key U.S. government agencies based in Kingston focused on law enforcement issues. While in Kingston, DAAG Rao and ADAG Ben’Ary spoke at the 2024 Security Seminar on “Organized Violence and the Threat to Peace in Jamaica and the Region,” sponsored by the Office of the National Security Advisor. Jamaican Prime Minister Holness and Deputy Prime Minister and Minister of National Security Horace Chang also delivered remarks at the conference. DAAG Rao highlighted the importance of international cooperation to successfully prosecuting those responsible for online fraud schemes and combating the violence associated with these criminal organizations. ADAG Ben’Ary highlighted the close security partnerships between U.S. and Jamaican law enforcement, the importance of firearms tracing to identify, disrupt, and dismantle firearms trafficking networks, and the steps that the Government of Jamaica and other Caribbean partners can take to increase joint efforts to counter illegal firearms trafficking. DAAG Rao speaks about consumer frauds at Security Seminar in Kingston. This visit by senior U.S. Justice Department officials follows Jamaican Prime Minister Holness’ visit to Washington, D.C. in December 2023 and reinforces our commitment to advance bilateral cooperation by combating transnational criminal organizations and the trafficking of drugs and firearms, strengthening cooperation to prevent online financial fraud schemes, and promoting regional security under Plan Secure Jamaica and the Caribbean Basin Security Initiative. Disrupting illicit firearms trafficking in the Caribbean is a shared priority for the United States and our Caribbean partners, and an important aspect of our cooperation to address rising levels of crime and violence in the region. The longstanding U.S.-Jamaica relationship is built on mutual respect, common interests, and shared cooperation, and this visit helped build on that partnership. We look forward to continuing our productive relationship with Jamaican law enforcement in the mutually beneficial efforts to investigate and disrupt fraud networks and arms trafficking in Jamaica. ADAG Ben’Ary provides overview on firearms trafficking at Security Seminar in Kingston.


title: Royalton Man Sentenced to 16 Years in Prison for Producing Child Pornography

body_text: MINNEAPOLIS – A Royalton man has been sentenced to 192 months in prison followed by 15 years of supervised release for producing sexually explicit images of a minor, announced United States Attorney Andrew M. Luger. According to court documents, in November 2022, Andrew John Groen, 35, contacted a minor victim using the messaging application TextMe. Groen, who knew the victim was a minor, identified himself in messages as a 19-year-old man named “Tyler.” On multiple occasions, Groen coerced the minor to send sexually explicit images. Groen also sent the minor victim obscene images and links to pornography and encouraged the minor victim to have sex with an adult man identified in messages. On August 24, 2023, Groen pleaded guilty to one count of production and attempted production of child pornography. Groen was sentenced on February 6, 2024, in U.S. District Court by Judge Jerry W. Blackwell. This case was the result of an investigation conducted by the FBI and the Willmar Police Department. Assistant U.S. Attorney Hillary A. Taylor prosecuted the case.


title: Huron Man Charged with Over $2.5 Million in COVID-19 Relief Fraud

body_text: TOLEDO – A federal grand jury in Toledo returned an indictment on February 7, 2024, charging Daniel R. Hitlan, of Huron, Ohio, with three counts of bank fraud and five counts of money laundering related to filing false applications for Paycheck Protection Program loans. The indictment charges that between April 14, 2020 and May 13, 2020, Hitlan submitted three false PPP loan applications and received funding totaling $2,578,318. Hitlan applied for the loans using two businesses that he owned: Sailor Sales, LLC and Daniel Robert Hitlan. Hitlan applied for the loans at three separate banks. In each instance, he falsely stated the number of employees for the businesses and claimed to have payroll expenses when in fact the businesses had no payroll expenses. Hitlan supported the PPP loan applications by creating and submitting fictitious payroll documents and payroll forms with his application. It is further alleged that Hitlan used the proceeds to conduct several financial transactions to include a check for $88,811.27 for the purchase of a 2020 Cadillac Escalade, another check for $48,232.63 for the purchase of a 1968 Chevrolet Corvette, two wires for the purchase of real estate in the amounts of $179,013.97 and $248,423.89, and a debit card transaction for $20,000 to a jeweler for the purchase of Rolex watches. An indictment is only a charge and not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and, in most cases, it will be less than the maximum. The investigation was conducted by IRS–Criminal Investigations and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Gene Crawford.


title: Fort Wayne Man Sentenced to 151 Months in Prison

component: Drug Enforcement Administration (DEA)

body_text: FORT WAYNE –Calvin Jones, 42 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to Possession with Intent to Distribute a Controlled Substance, announced United States Attorney Clifford D. Johnson. Jones was sentenced to 151 months in prison followed by 3 years of supervised release. According to documents in the case, in 2017 and 2018, Jones devised a scheme to distribute synthetic marijuana within various correctional institutions. Jones executed the scheme by soaking documents in a synthetic marijuana. Once soaked, Jones put these drug-soaked pages into envelopes addressed to inmates which purportedly were coming from various attorneys or from a state agency. The intent was that the pages be torn into smaller pieces or “doses” and sold to other inmates The inmates would then get high by ingesting the drug-soaked pieces of paper. Jones was held responsible for a total of 105 pages of drug-soaked pages. This case was investigated by the United States Postal Inspection Service with assistance from the Federal Bureau of Investigation, the United States Marshal’s Service, the Indiana Department of Corrections, the United States Postal Inspection Service Laboratory in VA, and the Drug Enforcement Administration North Central Laboratory. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.


title: Brooklyn Woman Sentenced To Three Years In Prison For COVID-19 Fraud Scheme And Fraud On NYCHA

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that CHANETTE LEWIS was sentenced today to three years in prison for her role in two fraud schemes. LEWIS participated in a scheme to commit COVID-19 pandemic fraud by (i) defrauding New York City’s COVID-19 Hotel Room Isolation Program, and (ii) committing unemployment benefits fraud. LEWIS also committed a fraud in which she submitted fabricated documents to the New York City Housing Authority (“NYCHA”) — such as purported Orders of Protection bearing Judges’ names, purported letters from a District Attorney, and purported letters from healthcare professionals attesting to alleged medical issues — in order to secure public housing benefits for her customers. LEWIS’s sentence was imposed by U.S. District Judge Lewis A. Kaplan. U.S. Attorney Damian Williams said: “Chanette Lewis exploited multiple lifelines offered to New York City residents in need during the COVID-19 pandemic. Each of her schemes misappropriated identifying information of hardworking individuals, including medical professionals whose services were vital during the pandemic. For her brazen crimes, Lewis has now been sentenced to prison.” According to the allegations contained in the Superseding Information, court filings, and statements made during court proceedings: LEWIS’s COVID-19 Pandemic Fraud Scheme During 2020 and 2021, LEWIS conspired to commit COVID-19 pandemic fraud in two ways. First, LEWIS defrauded the COVID-19 Hotel Room Isolation Program (the “Program”). In response to the COVID-19 pandemic, New York City created the Program. Funded by New York City and the Federal Emergency Management Agency, the Program provided free hotel rooms for qualifying individuals throughout New York City. In total, the Program was open to (i) healthcare workers who needed to isolate because of exposure to COVID-19; (ii) patients who had tested positive for COVID-19; (iii) individuals who believed, based on their symptoms, that they were infected with COVID-19; and (iv) individuals who lived with someone who contracted COVID-19. As stated on the City’s website describing the Program, such individuals “may qualify to self-isolate in a hotel, free of charge, for up to 14 days if you do not have a safe place to self-isolate.” Those who wished to book a hotel room through the Program could either call a phone number or use an online hotel booking platform. LEWIS defrauded the Program in several respects. First, she secured free Program hotel rooms for herself by falsely claiming to be a healthcare worker. Second, she sold at least approximately 1,936 nights’ worth of fraudulently obtained hotel rooms to customers who were ineligible for the Program. Third, LEWIS abused her employment, which was supposed to be in service of the Program. Specifically, LEWIS worked at a call center that handled phone calls and certain reservations for the Program for several months in 2020. As a result of her employment, LEWIS had access to legitimate healthcare workers’ identifying information. LEWIS abused her position, including by misappropriating healthcare workers’ identifying information, revealing the Program’s inner workings to co-conspirators, and making unauthorized sales of Program hotel rooms to ineligible individuals. For instance, LEWIS sold a co-defendant personal identifying information of at least five healthcare professionals, as well as certain “codes” to use when booking hotel reservations through the Program, such as an employee ID number and license number. LEWIS also advertised to potential customers that when hotels asked for a healthcare worker’s identification, LEWIS would supply a purported paystub and a letter falsely asserting that the individual was a healthcare worker. Second, during 2020 and 2021, LEWIS committed unemployment benefits fraud in New York State by fraudulently obtaining such benefits for herself and also by stealing the identity of an incarcerated individual and conspiring to obtain unemployment benefits issued for the benefit of that individual. In total, LEWIS fraudulently obtained approximately $47,000 in unemployment benefits. LEWIS’s Fraud on NYCHA During 2020 and 2021, LEWIS participated in a separate conspiracy to defraud NYCHA. LEWIS submitted fabricated documents to NYCHA — such as purported Orders of Protection bearing Judges’ names, purported letters from a District Attorney, and purported letters from doctors attesting to alleged medical issues — in order to secure public housing benefits for her customers, including transfers to larger NYCHA apartments. In total, LEWIS submitted fraudulent applications to NYCHA on behalf of more than approximately 30 individuals, a number of whom in fact received the public housing benefit they requested based on fraudulent documentation submitted by LEWIS. * * * In addition to her prison term, LEWIS, 32, of Brooklyn, New York, was sentenced to three years of supervised release and ordered to forfeit $289,536 and to pay restitution of $360,330. LEWIS’s three co-defendants — Tatiana Benjamin, Tatiana Daniel, and Heaven West — previously pled guilty. On February 1, 2024, Benjamin was sentenced principally to one year and one day in prison, three years of supervised release, restitution of $294,624, and forfeiture of $51,088; and West was sentenced principally to time served, three years of supervised release, restitution of $59,644, and forfeiture of $23,684. Daniel’s sentencing is scheduled for March 6, 2024, at 11:30 a.m. Mr. Williams praised the outstanding efforts of agents, investigators, and analysts from the New York City Department of Investigation, the New York Regional Office of the U.S. Department of Labor – Office of Inspector General (“DOL-OIG”), and the U.S. Attorney’s Office for the Southern District of New York. Mr. Williams also thanked the New York/New Jersey High Intensity Drug Trafficking Area Intelligence Analysts for their support and assistance in this investigation. He also expressed gratitude to the New York City Police Department, the New York State Department of Labor, and the DOL-OIG Atlanta Regional Office for their assistance. This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Michael D. Neff is in charge of the prosecution.


title: Registered sex offender gets 100 years after raping two young children

body_text: HOUSTON – A 32-year-old Houston resident has been ordered to federal prison for sexual exploitation of children, announced U.S. Attorney Alamdar S. Hamdani. George Michael Granados pleaded guilty July 31, 2023. U.S. District Court Judge Kenneth M. Hoyt has now ordered Granados to serve a 600-month sentence for each of his two counts of conviction. They will run consecutively for a total 1200 months in federal prison. At the hearing, the court also heard additional information including a victim impact statement from the father of one of the victims who expressed his horror at this crime, the violation of trust and the pain this caused his family. In handing down the prison terms, the court noted that one day these two little girls will grow up and should not have to bear the fear that Granados may ever be released from prison. “One hundred years is justice. Granados stole the innocence of two children, young girls he knew and were often entrusted to his care,” said Hamdani. “He betrayed them in the most horrific and despicable manner, all for his own deviant sexual desire. This massive sentence makes it clear – if you try to destroy our precious kids through such victimization and abuse, we will destroy your freedom by showing you only prison walls for decades to come.” “What Granados did to those two little girls is abominable and unforgiveable,” said Acting Special Agent in Charge Douglas Williams of the FBI Houston field office. “As a convicted rapist, Granados should have never had access to those children. Today’s sentence is partial justice for his victims whose innocence he stole and trust he violated. It’s precisely the young, innocent and vulnerable victims for whom our agents will continue to investigate some of the most difficult and emotionally taxing crimes.” The investigation revealed Granados raped these children and recorded them on video. After filming, Granados uploaded the files to his Google drive. In February 2022, law enforcement conducted search warrants for his residence, electronic devices and Google drive account. Forensic examination revealed three separate videos and nine image files, each showing his vaginal penetration of the girls. His face, heavily tattooed neck, arms and torso led to his positive identification. Granados was also found to be in possession of other image and video files depicting the sexual abuse of minors. At the time of these events, Granados was a registered sex offender with a prior conviction for sexual assault. Granados will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. The FBI conducted the investigation along with Liberty County Sheriff's Office and the Texas Department of Public Safety - Texas Rangers. Assistant U.S. Attorneys Sharad S. Khandewhal and Anna Swanson prosecuted this case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page . For more information about internet safety education, please visit the resources link on that page.


title: MS-13 Gang Members Sentenced to 35 Years in Prison for Racketeering Charge Including the Murder of 16-Year-Old Victim in Alley Pond Park in Queens

component: USAO - New York, Eastern

body_text: Earlier today, in federal court in Brooklyn, Luis Rivas, a member of the Centrales Locos Salvatruchas (CLS) clique of La Mara Salvatrucha, also known as MS-13, a transnational criminal organization was sentenced by United States District Judge Rachel P. Kovner to 35 years in prison for the May 16, 2017 fatal stabbing of 16-year-old Julio Vasquez in Alley Pond Park in Queens, and Hobbs Act robberies in Jamaica, Queens, after pleading guilty on July 14, 2023. Previously, co-defendant Josue Leiva, also a member of the CLS clique was sentenced on January 23, 2024 by Judge Kovner to 35 years in prison for the murder of Vasquez and Hobbs Act Robberies. Their co-defendant, and the leader of CLS, Melvi Amador-Rios, was convicted of the murder, the robberies and other charges after a three-week jury trial August 2023 , and was sentenced to life in prison plus 38 years in November 2023 . 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 Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the sentence. “The sentencings sends a powerful message to the defendants, other MS-13 members, and the community that gratuitous and senseless violence of this nature will not be tolerated in our district,” stated United States Attorney Peace. “We hope that today brings some measure of closure to the victims and their families.” “There is no place in our communities for barbaric violence being used to threaten and intimidate. Luis Rivas and Josue Leiva were rightly sentenced today for their roles in a senseless murder and other callously violent actions in the name of MS-13. The FBI’s New York Safe Streets Task Force is determined to ensure members of MS-13 or any other gang using violence in an attempt to control territory and people face significant punishment in the criminal justice system,” stated FBI Assistant Director-in-Charge Smith. “Meaningful prison sentences like this are why the men and women of the NYPD, in close partnership with our colleagues at the FBI and the office of the U.S. Attorney for the Eastern District of New York, continue to aggressively pursue anyone who senselessly commits violent crimes and puts our communities at risk,” stated NYPD Commissioner Caban. “We vow to remain relentless in our efforts to dismantle gangs and hold their individual members fully accountable for their actions.” As proven at Amador-Rios’ trial, beginning in fall 2016, the CLS clique, led by Amador-Rios, decided to kill John Doe 3, a CLS chequeo , or low-level MS-13 member, who had been violating the clique’s rules, including by associating with members of the rival 18th Street gang. Amador-Rios ordered Julio Vasquez, also an MS-13 chequeo , to carry out the killing of John Doe 3. Vasquez was tasked with killing John Doe 3 because Vasquez had been violating the clique’s rules and was suspected of cooperating with law enforcement. After Vasquez failed to kill John Doe 3, Amador-Rios ordered Vasquez to be killed. On May 16, 2017, Rivas and Leiva lured Vasquez to a wooded area of Alley Pond Park where they stabbed him more than 30 times, nearly decapitating him and ultimately killing him. Vasquez’s body was discovered by a bird watcher in the park on May 21, 2017. Leiva and Rivas pleaded guilty on July 14, 2023 to racketeering charges, including Vasquez’s murder. Leiva and Rivas also each participated in separate armed robberies of small businesses in Jamaica, Queens. In 2017, Rivas, accompanied by Amador-Rios and other gang members, robbed at gunpoint a money transfer business, during which Rivas pistol whipped an employee in the face. In 2018, Leiva, accompanied by Amador-Rios and other gang members, committed a robbery involving holding the owner and a customer of a convenience store at gunpoint. 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 . Today’s sentencing is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13. The gang has thousands of members across the United States. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders, and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 45 murders in the district and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by our law enforcement partners including the FBI’s Safe Streets Task Force, comprising agents and officers of the FBI and NYPD. The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Nadia E. Moore, Anna L. Karamigios, and Raffaela S. Belizaire are in charge of the prosecution, with the assistance of Paralegal Specialist Emily Moosher. The Defendant : LUIS RIVAS (also known as “Inquieto” and “Kiko”) Age: 28 Jamaica, New York JOSUE LEIVA (also known as “Colocho”) Age: 27 Jamaica, New York E.D.N.Y. Docket No. 18-CR-398 (S-3) (RPK)


title: Brothers each sentenced to more than 12 years in prison for running multi-state cocaine ring

component: USAO - Ohio, Southern

body_text: DAYTON, Ohio – Two brothers were sentenced in federal court here today for leading a long-running drug-trafficking organization that sourced bulk amounts of narcotics from Los Angeles and Houston to Dayton and Charlotte, North Carolina. The government argued at sentencing that Roger Earl Walton, Jr., 44, of Concord, North Carolina, and Shawn Lee Walton, 50, of Charlotte, North Carolina, were sophisticated drug distributors, who, from 2014 until 2020, led a lucrative conspiracy to traffic kilogram quantities of cocaine. Roger Earl Walton, Jr., also known as “Mike,” was sentenced to 168 months in prison. Shawn Lee Walton, also known as “Swoop,” was sentenced to 151 months in prison. “Drug trafficking, by its very nature, is devastating to communities,” said U.S. Attorney Kenneth L. Parker. “Thanks to the work of our law enforcement partners across multiple jurisdictions, the Waltons can no longer harm our cities.” According to court documents, the Waltons and four other defendants conspired to traffic at least 3,000 kilograms of converted drug weight. The six defendants were charged by indictment in August 2020. As part of this case, law enforcement has seized more 25 kilograms of cocaine and more than one million in cash from the drug-trafficking organization. Over the course of the narcotics conspiracy, law enforcement in various jurisdictions conducted multiple stops, searches and seizures of the Walton drug-trafficking organization. They include at least half a dozen law enforcement interactions in North Carolina, Oklahoma, Texas and Ohio. The coconspirators convicted and sentenced as part of this case include: Name Also Known As Age City of residence Sentence imposed Noah Alexander Sherrill 704 Noah 36 Dayton 48 months in prison Rauland Pollard, III Saki, Sockey 38 Dayton 51 months in prison Glynn Sewell Frezzy 42 Charlotte, NC 100 months in prison Louis Walton 26 Charlotte, NC 24 months in prison Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration (DEA); and Dayton Police Chief Kamran Afzal announced the sentences imposed today by U.S. District Court Judge Michael J. Newman. U.S. Attorney Parker recognized the critical assistance of the Oklahoma COMIT Task Force, the Charlotte Mecklenburg, North Carolina, and Beaumont, Texas, police departments, the Cabarrus County, North Carolina, Sheriff’s Office and the DEA in Greensboro and Charlotte, North Carolina. This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, and gangs that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Assistant United States Attorneys Amy Smith and Rob Painter and Trial Attorney Elizabeth R. Rabe, now with the Department of Justice’s Money Laundering Asset Recovery Section, represented the United States in this case. # # #


title: Trucking company owner pleads guilty to wire fraud related to illegally consolidating loads, overbilling

body_text: COLUMBUS, Ohio – A Columbus interstate cargo-transport trucking company owner pleaded guilty in U.S. District Court to wire fraud. He illegally overbilled shippers, consolidated shipments, and caused the loss of hundreds of thousands of dollars’ worth of goods shipped to destinations in Ohio like Bath and Body Works and Amazon warehouses. Gurtej Singh, 48, admitted to covertly opening sealed truck trailers and removing goods. Singh and others illegally consolidated loads to save on delivery costs and failed to deliver many goods to their final destinations. According to court documents, from April 2018 until December 2019, Singh was employed by Cargo Solutions Express as the manager of its warehouse on Fisher Road in Columbus. Singh later created his own transport company, owning and managing Bhullar Transport Group LLC from January 2020 until May 2022. Singh maintained a warehouse for his company on Interchange Road in Columbus. In January 2019, Singh filed an application with the Federal Motor Carrier Safety Administration (FMCSA) on behalf of Bhullar and lied by stating that he did not have certain relationships with other FMCSA-regulated entities. In reality, Singh was affiliated with Cargo Solutions Express and two other trucking companies, Roadhawk Transportation and Show Time Carrier. The trucking companies provided interstate trucking transportation for manufacturers and retailers. The shippers often paid a premium to reserve the entire truck for cargo that they did not want mixed with others’ cargo. To ensure that loads were not tampered with in transit, the shippers often added serialized plastic seals to the trailer locking mechanism and noted the serial number on the shipping documents. Receivers of the goods could then compare a trailer seal to the paperwork to ensure that the trailer had not been opened. Singh and others charged the premium rate but opened trailers and consolidated cargo to generate higher profits. They altered the seal serial numbers and paperwork, among other tactics to hide the scheme from shippers and receivers. For example, in December 2018, Cargo Solutions Express picked up a load in Santa Clarita, California, to be delivered to Reynoldsburg, Ohio, containing products for Bath and Body Works. The load was delivered with an intact seal, indicating that the load had not been opened in transit, but 10 pallets of products worth nearly $230,000 were missing. When law enforcement executed a search warrant at Cargo Solutions Express warehouse in Columbus, they discovered the 10 missing pallets of Bath and Body Works lotions, along with several other pallets of goods reported stolen from multiple shipments bound for an Amazon warehouse in Groveport, Ohio. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Andrea M. Kropf, Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General, Midwestern Region; and Columbus Police Chief Elaine Bryant announced the guilty plea entered on Feb. 6 before U.S. District Judge Sarah D. Morrison. Assistant United States Attorney David J. Twombly is representing the United States in this case. # # #