title: Jury Convicts Warren County Man of Receiving, Transporting and Possessing Child Pornography

body_text: ALBANY, NEW YORK – Wesley Guard, age 34, of Queensbury, New York, was convicted Friday, after a four-day jury trial, of receiving, transporting and possessing child pornography using the online social networking application Kik. United States Attorney Carla B. Freedman; Matthew Scarpino, Special Agent in Charge of Homeland Security Investigations (HSI), Buffalo Field Office; and New York State Police (NYSP) Acting Superintendent Steven A. Nigrelli made the announcement. The trial evidence established that between September 2020 and April 2021, Guard, a registered sex offender, used the Kik Messenger application to receive child pornography from other Kik users. Guard then sent that child pornography to another Kik account under his control as a means of collecting the material. The child pornography the defendant received from other Kik users and transported between his various Kik accounts included numerous videos depicting the sexual exploitation of young children. The trial evidence also established that, at the time of his arrest by law enforcement on April 29, 2021, Guard still possessed the child pornography he had received on Kik. Sentencing, which will be scheduled at a later date, will be held in Albany, before United States District Judge Mae A. D’Agostino. Guard faces a mandatory minimum term of imprisonment of at least 5 years, a maximum term of imprisonment of 20 years, a fine of up to $250,000, and a term of supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. The jury voted to acquit Guard of distributing child pornography to other Kik users. This case was investigated by HSI, the NYSP Internet Crimes Against Children Task Force, and the NYSP Troop G Computer Crime Unit. Assistant U.S. Attorneys Katherine Kopita, Carling Dunham and Adrian LaRochelle prosecuted this case as a part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc .


title: Wake County Man Convicted of 1995 Bombing at BTI Building Resentenced to More Than 37 Years in Prison

component: USAO - North Carolina, Eastern

body_text: NEW BERN, N.C. – Stephan Bullis, the man convicted in the July 1995 bombing at the then Business Telecom, Inc. (BTI) building located in North Raleigh, was resentenced on Friday to 450 months in prison followed by five years of supervised release. Today’s sentence will keep him in prison for an additional 10 years. Bullis, now 58, was originally convicted of six charges related to the incident following a jury trial in February 1996. At the time, he was sentenced to a mandatory life sentence, followed by consecutive terms of 30 years and 235 months. Due to changes in the law, two charges were vacated in September 2022, leaving only the 235-month sentence standing. At that time, the Court set the matter for resentencing. “Stephan Bullis caused terror in the Raleigh community because the pipe bomb at BTI came only a few short months after the Oklahoma City bombing and at a time when the infamous ‘Unabomber’ was at large,” said U.S. Attorney Michael Easley. “At the original sentencing, the Judge noted the heinous nature of the crime, the number of victims and potential victims, as well as the defendant’s lack of remorse. The defendant knowingly risked harm to countless individuals and inflicted psychological trauma on numerous others. This new sentence holds Bullis accountable for his horrific actions and keeps him behind bars where he belongs.” According to court documents and other information presented in court, Bullis mailed two pipe bombs on or around Friday, July 7, 1995. The first package, addressed to his then wife – an employee of BTI, detonated when she opened it on Monday, July 10, 1995. The explosion destroyed most of his wife’s left hand, a portion of her upper right arm and caused numerous cuts, burns and bruises across her body. The bomb also injured a nearby colleague. The second bomb was found in an out-of-service United States Postal Service Collection bin located at Crabtree Valley Mall on July 25, 1995. The second bomb was found 10 days after the arrest of Bullis, who did nothing to warn authorities of the second pipe bomb package even though it was in a public space where an explosion had the potential to injure numerous individuals. Evidence presented at trial showed that Mr. Bullis had begun an affair with a clerk at a video rental store and had recently increased the payout on his wife’s life insurance policy. In the months before the bombing, he began purchasing books such as “The Poor Man’s James Bond” and “The Anarchist Cookbook,” which both include designs and instructions for making explosive devices. In the month immediately before the attack, Bullis learned that his wife’s company had increased her work-funded life insurance policy and included a double-indemnity clause in the event of an accidental death. Statements made by Bullis indicated that he believed the accidental death needed to occur while his wife was at work for the double indemnity clause to apply. Several victims of the bombing incident, including the defendant’s former wife and co-workers who were present, spoke or provided statements at the resentencing recounting the physical and psychological impacts of the crime that they experience to this day. As one victim impact statement said, “He acted with total disregard for all the people that would forever be affected by this crime…” Bullis was convicted of six counts including two counts of mailing a pipe bomb with intent to kill another, one count of arson resulting in injury to another person, one count of attempted arson and two counts of use of a destructive device during a crime of violence. Bullis’ conviction has been upheld by the Fourth Circuit Court of Appeals and the U.S. Supreme Court declined to review the case. Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The United States Postal Inspection Service, the Bureau of Alcohol, Firearms, Tobacco and Explosives (ATF), the Federal Bureau of Investigation (FBI) and the Raleigh Police Department originally investigated the case and Assistant U.S. Attorney Dennis Duffy and Special Assistant U.S. Attorney Casey Peaden handled the resentencing. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:95-CR-00142-FL.


title: Trussville Man Charged in Multi-Million-Dollar Kickback and Health Care Fraud Case

component: USAO - Alabama, Northern

body_text: BIRMINGHAM, Ala. – Another individual has been charged in a series of related cases involving multi-million-dollar health care fraud conspiracies, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles. A federal grand jury yesterday week returned a five-count indictment against John Alan Robson , 40, of Trussville, on charges of health care fraud conspiracy, kickback conspiracy, and kickbacks. According to the indictment, Robson was a sales rep who marketed to doctors’ offices various health care products and services, including prescription drugs from specialty pharmacies, durable medical equipment (DME), and electro-diagnostic testing. Robson was paid fees for the prescriptions, DME, and tests he generated from doctors. From at least 2014 through 2018, Robson allegedly conspired with others to pay and receive kickbacks to induce medical providers to issue medically unnecessary prescriptions and order medically unnecessary goods and services, which were then billed to Medicare and other health insurers. One of those services was electro-diagnostic testing provided by a Huntsville-based electro-diagnostic testing company called QBR, or Diagnostic Referral Community. Robson received per-patient payments from QBR for inducing medical providers to order tests from QBR. According to the indictment, medical providers received payments from QBR too; the payments were disguised as hourly payments for the ordering physician’s time and staff’s time, but in reality they were per-patient kickbacks. The case against Robson is related to several other cases that have resulted in convictions in the last year. Dr. Eric Beck , 64, of Huntsville, pleaded guilty last year to health care fraud conspiracy for his role in the QBR scheme. John Hornbuckle , 53, of Huntsville, pleaded guilty to health care fraud and kickback conspiracy offenses for his role, as QBR’s CEO, in orchestrating the fraud. James Ewing Ray , 52, of Gadsden, pleaded guilty to health care fraud and kickback conspiracy for his role as a sales rep who marketed QBR’s scheme to medical practices and received kickbacks per test ordered. Early last year, a jury convicted Dr. Mark Murphy , 65, and his wife Jennifer Murphy , 66, both of Lewisburg, Tennessee, of drug distribution, fraud, and kickback crimes. The Murphys operated North Alabama Pain Services, which closed its Decatur and Madison offices in early 2017. According to court documents and evidence presented at trial, the Murphys took kickbacks from QBR of more than a million dollars. In return, Dr. Murphy ordered electro-diagnostic tests from QBR for his patients, regardless of whether there was a medical need for those tests. Dr. Murphy also pre-signed prescriptions for expensive specialty topical creams, sprays, and patches, which patients then received whether they wanted the products or not. Before the Murphys went to trial, a co-defendant, Brian Bowman , 42, of Gadsden, pleaded guilty to health care fraud conspiracy. According to Bowman’s plea agreement, Bowman marketed QBR’s electro-diagnostic testing to medical providers, and was paid a fee for each test they ordered. Bowman received nearly a million dollars in fees from QBR. Bowman also marketed high-reimbursing specialty prescription drugs to the Murphys and other providers and received payments for the prescriptions he generated. Beck, Hornbuckle, Ray, Mark Murphy, Jennifer Murphy, and Bowman are all awaiting sentencing. Other co-conspirators have already been sentenced. The maximum penalty for conspiracy to commit health care fraud is ten years in prison; the maximum penalty for conspiracy to receive kickbacks is five years in prison; each kickback count also carries up to ten years. The FBI and HHS-OIG investigated the case, and Assistant U.S. Attorneys J.B. Ward and Don Long are prosecuting it. An indictment contains only charges. Each defendant is presumed innocent unless and until proven guilty.


title: Member of Violent North Shore Drug Enterprise Sentenced for Possessing Firearm in Fentanyl Distribution Conspiracy

component: USAO - Massachusetts

body_text: BOSTON – A member of a prolific and violent North Shore-based drug trafficking organization that manufactured and supplied over 30 kilograms of fentanyl pills was sentenced today in federal court in Boston for possessing firearms, including an automatic weapon. Ernest Johnson, 34, a/k/a “Yo Pesci,” a/k/a “Mr. Live Mr. Drive,” of Salem, was sentenced by U.S. District Court Judge Leo T. Sorokin to 90 months in prison and three years of supervised release. In May 2022, Johnson pleaded guilty to one count of being a felon in possession of firearm and ammunition. “We can only hope that the ‘Yo Pesci’ show has reached its final episode. Mr. Johnson was an active participant in a violent drug enterprise that coordinated armed robberies, engaged in violent shootings and pumped more than 500,000 deadly fentanyl pills onto our streets. He not only unlawfully possessed a stockpile of dangerous firearms, including a machine gun and large capacity magazines, but Mr. Johnson brazenly flaunted his arsenal through livestream videos,” said First Assistant United States Attorney Joshua S. Levy. “His behavior, both on and off social media, promoted violence and a complete disregard for the rule of law. His days as social media influencer for criminal enterprises have ended. Our office will continue to work with our law enforcement partners to put down violent criminal organizations and do everything in our power to keep our communities safe.” “Today, convicted felon Ernest Johnson learned his fate for brandishing numerous firearms he wasn’t allowed to possess in support of an extremely violent drug trafficking enterprise that dealt deadly fentanyl and orchestrated numerous shootings and armed robberies, using an arsenal of firearms, including machine guns,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI’s North Shore Gang Task Force will continue to work with our law enforcement partners to identify, investigate, and eliminate violent criminal organizations like the one Johnson belonged to that are responsible for inflicting serious harm on our communities.” “Armed violent drug dealers are wreaking havoc in our communities, and using fentanyl in counterfeit prescriptions is a deadly combination. ATF will continue to work alongside our OCDETF partners to become a force multiplier in stopping these organizations from devastating our neighborhoods,” said James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Division. Johnson was arrested and charged in June 2021 along with co-conspirators Vincent Caruso, Laurie Caruso and Nicole Benton – all of whom pleaded guilty to their roles in the conspiracy. On Dec. 15, 2022, Benton was sentenced to two years in prison and three years of supervised. On June 30, 2022, Vincent Caruso was sentenced to 250 months (more than 20 years) in prison and five years of supervised release. On June 29, 2022, Laurie Caruso was sentenced to nine years in prison and four years of supervised release. Johnson was a member of a large drug trafficking organization (DTO) operated by Vincent Caruso, a self-admitted Crip gang member, that included Benton and Vincent Caruso’s mother, Laurie Caruso, among others. The DTO specialized in the manufacture and sale of pressed counterfeit prescription pills containing fentanyl designed to imitate Percocet tablets. The DTO produced the pills using multiple large pill presses and distributed the illicit drugs to dealers throughout the North Shore. According to court papers, Caruso boasted about utilizing a pill press that weighed 1,000 pounds and was capable of producing 15,000 counterfeit fentanyl pills per hour – with pill retailing for between $10-$20, thereby generating millions of dollars in retails sales. In total, the Caruso DTO trafficked more than 30 kilograms of fentanyl, equating to 500,000 pills per year. Johnson served in a security role as Vincent Caruso’s driver and personal assistant. As a member of the DTO, Johnson possessed and used a variety of firearms (including an AR-15; a fully automatic Glock 17; multiple large caliber revolvers; and a number of pistols equipped with large-capacity magazines) to threaten rival drug dealers and cultivate the DTO’s violent reputation in furtherance of its drug trafficking activities. The investigation determined Johnson was involved in multiple violent offenses committed on behalf of the DTO, including an attempted armed robbery in May 2021. Additionally, Johnson used social media to post and message photos and videos that showcased the DTO’s arsenal of firearms, fentanyl pills, cash and high-end jewelry. In a number of videos, Johnson boasted about his involvement in shootings, beatings and drug trafficking, promoted the DTO’s reputation for violence and gunplay, as well as identified and threatened people he believed to be a “rat” or a “snitch.” Based on multiple prior felony convictions, Johnson was prohibited from lawfully possessing firearms. FAUSA Levy; FBI SAC Bonavolonta; ATF SAC Ferguson; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistance was provided by the Essex, Middlesex and Suffolk County District Attorneys’ Offices; Essex, Middlesex, Suffolk and Hancock (Maine) County Sheriffs’ Departments; U.S. Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; and the Boston, Cambridge, Chelsea, Danvers, Everett, Lynn, Malden, Salem, Saugus, Somerville, Revere, Bolton (Maine), Bangor (Maine), Portland (Maine) and Westbrook (Maine) Police Departments. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case. The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.


title: U.S. Attorney Nick Brown leads DOJ delegation to commemorate “Bloody Sunday,” and passage of Voting Rights Act of 1965

component: USAO - Washington, Western

body_text: Seattle – U.S. Attorney Nick Brown will be joined by more than 30 other U.S. Attorneys from across the country as a delegation to commemorate the 58 th Anniversary of “Bloody Sunday,” the March over Selma’s Edmund Pettus Bridge, and the passage of the Voting Rights Act of 1965. Over March 4-6, 2023, U.S. Attorneys from across the country will meet with community and civil rights leaders while exploring some of the significant and educational civil rights institutions in Alabama. “As the leaders of the Department of Justice in our districts, we can never forget the historic events that shaped our history and inform our work today,” said U.S. Attorney Brown. “We will be meeting with distinguished Federal Judge Myron Thompson, learning about the important work of the Johnson institute, and exploring the Legacy Museum and National Memorial for Peace and Justice. As we grapple with hate crimes and civil rights abuses in our own states, these resources bring home what is at stake in our civil rights work.” In addition to the Selma March scheduled for Sunday March 5, 2023, the U.S. Attorneys will meet with Assistant Attorney General Kristen Clarke of DOJ’s Civil Rights Division, as part of the subcommittee work supporting the Attorney General Advisory Committee (AGAC). Other meetings and visits during the trip will focus on both historic civil rights conflicts and issues that are still fresh today. The group will meet with distinguished jurist Myron Thompson , the first Black Assistant Attorney General for Alabama and the second Black Federal Judge in the state. As the former Chief Judge in the Middle District of Alabama, Judge Thompson was instrumental in preserving the Montgomery bus station where the Freedom Riders were attacked in 1961 and the establishment of the Freedom Rides Museum. Judge Thompson is a recipient of the Thurgood Marshall award for his “personal contributions and extraordinary commitment to the advancement of civil rights.” The group will also meet with Bryan Stevenson, Founder and Executive Director of the Equal Justice Initiative , a nonprofit organization that provides legal representation to people who have been illegally convicted, unfairly sentenced, or abused in state jails and prisons. The attorneys will visit The Johnson Institute in the Montgomery federal courthouse where many key civil rights cases were decided. The Johnson Institute demonstrates through its programming the importance of the U.S. Constitution and the independent judiciary. They will go to The Legacy Museum , which provides a comprehensive history on the legacy of slavery. Lynching, codified racial segregation, and the emergence of over-incarceration in the 20th century, are examined in depth and brought to life through film, images, and first-person narratives at the museum. At the Memorial for Peace and Justice the group will reflect on America’s History of racial injustice. Set on a six-acre site, the memorial uses sculpture, art, and design to contextualize racial terror. The site includes a memorial square with 800 six-foot monuments to symbolize thousands of racial terror lynching victims in the United States. The U.S. Attorneys from these districts are attending the Selma and Montgomery events: Massachusetts, Connecticut, New Jersey, South Carolina, Colorado, Nevada, Montana, Idaho, South Dakota, Western and Middle Districts of Louisiana, Eastern District of Wisconsin, Eastern and Western Districts of Michigan, Middle District of Florida, Northern and Eastern Districts of California, Eastern District of Pennsylvania, Western District of Virginia, Western District of North Carolina, Southern District of Ohio, Eastern District of New York, and the Southern District of West Virginia. U.S. Attorney Brown and Civil Rights Subcommittee Vice-Chair Rachael Rollins are appreciative of the work done by the Middle District of Alabama to host the delegation.


title: California Man Sentenced to More than Seven Years in Federal Prison for Trafficking Methamphetamine

component: USAO - South Carolina

body_text: COLUMBIA, SOUTH CAROLINA — David Ruger, 44, of Long Beach, California, was sentenced to more than 7 years in federal prison after pleading guilty to conspiracy to possess with intent to distribute and to distribute methamphetamine. Evidence presented to the Court showed that over several years, Ruger was involved in a methamphetamine trafficking conspiracy. Ruger’s role in that conspiracy was as a methamphetamine source of supply for distributors in South Carolina. Over the course of the conspiracy, Ruger was attributed more than four kilograms of methamphetamine. United States District Judge Mary Geiger Lewis sentenced Ruger to 87 months in prison, to be followed by a 5-year term of court-ordered supervision. There is no parole in the federal system. This case was investigated by the Richland County Sheriff’s Department, the Drug Enforcement Administration (DEA), and the United States Postal Inspection Service. Assistant U.S. Attorney Katherine Flynn prosecuted the case. ###


title: Convicted Domestic Abuser Sentenced to Over 3 Years in Federal Prison for Illegally Possessing a Firearm After Fleeing Police at 120 Miles-per-Hour

component: USAO - Indiana, Southern

body_text: INDIANAPOLIS- Max Gellersen, 27, of Indianapolis, was sentenced to 46 months in federal prison after pleading guilty to Possession of a Firearm by a Person Convicted of a Misdemeanor Crime of Domestic Violence. According to court documents, on August 6, 2020, Indianapolis Metropolitan Police Department (IMPD) officers responded to a domestic disturbance. By the time the officers had arrived, Gellersen had left the home. The victim stated that Gellersen pointed a gun at her, struck and choked her. Later that day, officers attempted to stop Gellersen for a probation violation while he was driving. Gellersen failed to comply and led police on 120 mile per hour vehicle chase that ultimately ended when his vehicle caught on fire. While under arrest, Gellersen directed police to where they would find the firearm in his home. IMPD officers searched Gellersen’s home and found a Colt Series 4 handgun in the exact location that Gellersen described. Gellersen is prohibited from possessing a firearm under federal law due to his 2018 misdemeanor conviction for Domestic Battery in Boone County. Zachary A. Myers, United States Attorney for the Southern District of Indiana, Randal Taylor, Chief of Police for IMPD, and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division made the announcement. “Many illegally armed perpetrators of gun violence in the home and in mass shootings have a prior history of committing domestic violence,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The U.S. Attorney’s Office, in partnership with ATF and IMPD, will continue to prioritize federal prosecution of the armed criminals who pose the greatest danger to those closest to them and to the public. The sentence imposed today demonstrates that domestic abusers who choose to illegally possess guns risk significant time in federal prison with no possibility of parole.” ATF investigated this case with valuable assistance provided by IMPD. The sentence was imposed by U.S. District Court Judge James P. Hanlon. Judge Hanlon also ordered that Gellersen by supervised by the U.S. Probation Office for 3 years following his release from federal prison. U.S Attorney Myers thanked Assistant United States Attorneys Abhi Kambli and Jayson W. McGrath, who prosecuted this case. This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms. ###


title: Man Sentenced to 37 Months for Burglarizing Missouri Ranger Station and Stealing National Park Service Truck

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

body_text: CAPE GIRARDEAU – U.S. District Judge Matthew T. Schelp on Monday sentenced a man who broke into a Shannon County, Missouri ranger station in 2021 and stole a National Park Service pickup to 37 months in prison, which will run consecutive to a probation violation in a state gun case. Marvin R. “Mark” Remster, 40, was also ordered to pay more than $17,000 in restitution. Remster admitted in a November guilty plea that he broke into the Round Spring Ranger Station in the Ozark National Scenic Riverways national park. Remster also admitted stealing a Chevrolet Silverado pickup owned by the National Park Service. The burglary and theft were discovered on the night of Dec. 26, 2021, when law enforcement officials were notified that the ranger station was on fire . Remster, who was being sought on unrelated warrants, was spotted near a truck outside a home in Crawford County on Jan. 4, 2022. He was arrested after a brief foot chase, and admitted possessing a 20-gauge shotgun that had been found in the truck. He also admitted breaking into the ranger station through a window and looking for items to steal. Remster found the truck keys, stole the truck and then drove it to an acquaintance’s garage. Remster, of Crawford County, pleaded guilty in U.S. District Court in Cape Girardeau November 21, 2022 to charges of burglary, theft of government property and being a felon in possession of a firearm. The National Park Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Crawford County Sheriff’s Office and the Missouri State Fire Marshal’s Office investigated the case. Assistant U.S. Attorney Jack Koester is prosecuting the case.


title: Louisville Man Sentenced to Over 29 Years in Federal Prison for Fentanyl Distribution, Drug Conspiracy and Firearms Offenses, and for Assaulting Federal Officer

component: USAO - Kentucky, Western

body_text: Louisville, KY – A local man, Terrell Trammell, age 28, was sentenced on February 24, 2023 to 29 years and four months years in prison, followed by a 5-year term of supervised release, for conspiracy to possess with the intent to distribute fentanyl and heroin, distribution of fentanyl, possession with the intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking, possession of a firearm by a convicted felon, and assaulting, impeding, or interfering with a federal officer. Trammell was convicted by a federal jury following a four-day trial in November 2022. U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, Acting Special Agent in Charge Robert Maynard of the ATF Louisville Field Division, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement. According to court documents and evidence presented at the trial, between July 2020, and November 5, 2020, Trammell conspired with others to distribute fentanyl and heroin in the Louisville area. On October 9, 2020, Trammell sold fentanyl to an undercover informant in southern Jefferson County. Trammell, who was a multi-time convicted felon, utilized juveniles to assist in possessing and distributing fentanyl and heroin, as well as in possessing and handling firearms in furtherance of drug trafficking. On November 5, 2020, agents and detectives with the FBI, ATF, HSI, and LMPD attempted to execute a search warrant at an apartment in the Valley Station area of Louisville, which Trammell and other conspirators were using to store fentanyl, heroin, and firearms. Prior to execution of the warrant, Trammell and a 16-year-old crashed their vehicle into an FBI agent, injuring and pinning the agent between two vehicles. Agents ultimately seized an AR-style pistol, a Glock 9-millimeter pistol, and an extended magazine. The FBI laboratory found Trammell’s DNA on the AR-style pistol. From the apartment, agents seized approximately 41 grams of fentanyl and two firearms, one of which had been traded to Trammell in exchange for drugs. “The significant sentence imposed by the Court is a result of the serious nature of the crimes committed by Mr. Trammell as well as his criminal past,” stated U.S. Attorney Bennett. “Individuals involved in drug dealing, illegal possession of firearms, and the assault of agents in the Western District should know they will face a lengthy term in federal prison for such conduct. I commend the work of our federal law enforcement partners, LMPD, and the prosecutors in this case.” “Stopping violent criminals, who pedal deadly narcotics, prey upon our youth, and assault those protecting our community, is one of the most important things law enforcement does,” stated FBI Special Agent in Charge Cohen. “The increase in assaults on federal law enforcement officers—and law enforcement in general is disturbing. It will not be tolerated. Hopefully, Trammell’s sentence sends the message that prosecution and prison are the end result of engaging in such conduct.” “ATF is pleased to have assisted Louisville Metro Police Department and the FBI in this investigation into a violent individual who placed our youth in danger by involving them in drug trafficking,” said ATF Acting Special Agent in Charge Maynard. “This sentence also demonstrates that violence against law enforcement will not be tolerated as we continue to work together to keep our communities safe.” This case was investigated by the FBI, ATF, and LMPD, with assistance from the DEA and the U.S. Department of Homeland Security, HSI. Assistant U.S. Attorneys Frank Dahl and Erin McKenzie represented the United States during the trial of the case. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF . ###


title: DOJ and Lincoln Pharmacy in Tacoma settle allegations the pharmacy failed to follow the Controlled Substances Act

body_text: Seattle – The U.S. Attorney’s Office and Lincoln Pharmacy in Tacoma have reached a settlement agreement over inspection findings by the Drug Enforcement Administration that Lincoln had failed to comply with some of the administrative requirements of the Controlled Substances Act (CSA). Lincoln Pharmacy will pay the United States $80,000 to resolve the claims. The settlement is one in a series of enforcement actions the DEA has taken with providers and pharmacies over administrative violations of the CSA. “The Controlled Substances Act has requirements for medical professionals and pharmacies so that certain narcotic substances are carefully tracked,” said U.S. Attorney Nick Brown. “Those requirements are designed to allow DEA to monitor the distribution of these drugs to try to combat abuse and addiction and the harms that follow.” The settlement with Lincoln Pharmacy states that during an inspection in June 2021, DEA found that in a variety of ways, Lincoln Pharmacy failed to appropriately track controlled substances coming to the pharmacy. For example: Lincoln Pharmacy failed to maintain records on substances such as oxycodone and hydrocodone between March 2020 and June 2021; Lincoln Pharmacy’s inventories of scheduled drugs were inadequate; the pharmacy failed to keep records of when and how much of certain scheduled drugs were delivered to the pharmacy; the pharmacy failed to secure some of the controlled substances; and the pharmacy failed to keep the ‘private key’ secure - something used to sign DEA orders. Lincoln is paying the $80,000 settlement but does not admit any liability. This is the third entity to settle administrative claims with the U.S. Attorney’s Office over administrative failure to follow the Controlled Substances Act. In September 2021, JRK Pharma Inc d/b/a Edmonds Pharmacy settled allegations that between October 2019 and May 2021, it filled 347 prescriptions for controlled substances written by two practitioners who either did not have valid state licensed to practice medicine or did not have an active DEA license to prescribe controlled substances. Edmonds Pharmacy paid $20,000 to resolve the allegations and does not admit liability. In August 2022, Dr. Akiko Kato, a naturopathic physician, signed a settlement stating that she prescribed controlled substances that were outside her naturopathic license and limitations under the CSA. Between October 2016 and October 2021, she wrote 644 prescriptions for substances such as Dextroamphetamine, Alprazolam, Clonazepam, Ketamine, and Phentermine. Dr. Kato was not authorized to prescribe such prescriptions. Dr. Kato paid a $37,500 settlement. These cases were a result of a concerted focus of DEA to prevent pharmacies from filling prescriptions written by providers without prescribing authority for those substances. “The DEA will hold those medical practitioners accountable who fail to comply with the Controlled Substance Act (CSA) in order to deter pharmaceuticals from being abused,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division. The DEA investigated these matters and the cases were resolved by Assistant United States Attorneys Matt Waldrop and Ashley Burns.


title: Man Sentenced to Four Years for Committing COVID-19 Relief Fraud While on Home Confinement for Similar Financial Crimes

component: USAO - Illinois, Northern

body_text: CHICAGO — A suburban Chicago businessman has been sentenced to four years in federal prison for re-offending while still serving a federal sentence stemming from an earlier financial fraud conviction. Shortly after being released from prison and while on home confinement near the end of his 60-month sentence for theft of government funds and aggravated identity theft, CARLOS SMITH, 58, of Park Forest began submitting fraudulent applications for government-backed loans intended to support businesses suffering economic effects from the Covid-19 pandemic. Smith first submitted a fraudulent application for the Economic Injury Disaster Loan (“EIDL”) Program, run by the Small Business Administration (SBA), in April 2020, while he was on home confinement. Shortly after obtaining the EIDL funds, and while serving the supervised release portion of this prior sentence, he fraudulently sought and obtained a second loan, this time through the Paycheck Protection Program (“PPP”). In both applications, Smith lied about the condition and performance of his purported business, CLS Financial Services, Inc., which did not operate during the year prior to the pandemic, when defendant was incarcerated. In the PPP application, Smith also lied about his criminal history and submitted fake tax documents. Between the two loans, Smith received approximately $421,900. Smith pleaded guilty to one count of wire fraud and one count of money laundering on June 22, 2022. The sentence was imposed by U.S. District Court Judge Manish S. Shah on February 23, 2023. The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago; and Hannibal Ware, Inspector General of the U.S. Small Business Administration. The government is represented by Assistant U.S. Attorney Heidi Manschreck. Anyone with information about attempted fraud involving COVID-19 can report it to the Department of Justice by calling the National Center for Disaster Fraud Hotline at 866-720-5721, or filing an online complaint form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Riverside County Tax Preparer Pleads Guilty to Knowingly Preparing False Tax Returns that Caused Over $3 Million in Losses to IRS

component: USAO - California, Central

body_text: LOS ANGELES – A Riverside tax preparer pleaded guilty today to federal criminal charges for knowingly filing thousands of tax returns that falsely claimed deductions, such as fake medical expenses and bogus mortgage interest, and which caused more than $3 million in losses to the IRS. Andrew Zepeda Hansack, 39, pleaded guilty to two counts of aiding and assisting in the preparation of a false tax return. According to his plea agreement, starting in January 2015, Hansack prepared personal income tax returns at AJ Loyal Income Tax Service, a Riverside-based company. Hansack filed tax returns for some of his clients that included false itemized deductions. Specifically, Hansack filed tax returns for these clients that indicated they had paid mortgage interest for their homes, when in truth, as Hansack knew, his clients did not own a home. Hansack also claimed false medical expenses, sales tax, and gifts by cash or check on some tax returns he prepared that he knew to be false. For the tax years 2015 through 2019, Hansack filed approximately 2,533 tax returns with false deductions on behalf of his clients. Because of Hansack’s criminal activity, the IRS was prevented from assessing and collecting the correct amount of taxes owed by the clients. This resulted in a loss in assessed and collected taxes to the IRS between approximately $3,369,886 and approximately $3,799,378. For example, in February 2020, Hansack aided and assisted the preparation of a federal income tax return for a South Gate resident. This tax return falsely claimed $30,488 in itemized deductions, including deductions for mortgage interest. The false and fraudulent deductions caused the South Gate taxpayer to claim a refund from the IRS in the amount of $7,318 to which the taxpayer was not entitled. Hansack has agreed to pay a criminal fine of at least $50,000 and also agreed to a permanent ban on him helping to prepare tax returns for anyone other than himself or his spouse. United States District Judge Stephen V. Wilson scheduled a May 22 sentencing hearing, at which time Hansack will face a statutory maximum sentence of three years in federal prison for each count. IRS Criminal Investigation investigated this matter. Assistant United States Attorney Jeff Mitchell of the Major Frauds Section is prosecuting this case.


title: Central Valley Man Pleads Guilty to Nearly $9 Million Cow Manure Ponzi Scheme

component: USAO - California, Eastern

body_text: FRESNO, Calif. — Ray Brewer, 66, of Porterville, and Sheridan, Montana, pleaded guilty today to wire fraud, money laundering, and identity theft charges for running a multimillion-dollar fraud scheme where he purported to turn cow manure into green energy, U.S. Attorney Phillip A. Talbert announced. According to court records, from March 2014 through December 2019, Brewer stole $8,750,000 from investors by claiming to build anaerobic digesters on dairies in Fresno, Kern, Kings, and Tulare Counties, as well as other counties in California and Idaho. Anaerobic digesters are large machines that use microorganisms to breakdown biodegradable material and turn it into methane. The methane can then be sold on the open market as green energy. The methane also produces Renewable Energy Credits (REC), which represent the property right to the reduction in greenhouse gas emissions achieved through green energy creation. RECs are commonly purchased by companies to meet green energy regulatory, contractual, and initiative requirements or commitments. Brewer’s investors were supposed to receive 66% of all net profits as well as tax incentives. Brewer made various misrepresentations to his investors. Brewer took the investors on tours of dairies where he said that he was going to build the digesters and sent them forged lease agreements with the dairy owners. He also sent the investors altered agreements with banks that made it appear as though he had obtained millions of dollars in loans to build the digesters. Finally, he sent the investors forged contracts with multinational companies that made it appear as though he had secured revenue streams. None of this was true. After Brewer received the investors’ money, he transferred the funds to multiple other bank accounts that he opened in the names of different entities, his family members, and an alias. He used false descriptions for the transfers. He did so to conceal the location, source, ownership, and control of the money before using it for personal expenditures. These expenditures included two plots of land that were 10 or more acres each, a 3,700 square foot custom home, and new Dodge Ram pickup trucks. Brewer subsequently told his investors that the digesters were progressing when that was not the case. He did so by sending them fake construction schedules, fake invoices for project-related costs, fake power generation reports, fake RECs, and fake pictures. In some instances, Brewer purported to refund investors all or some of their money. The refunds, however, came from newly received money from other investors who had not authorized Brewer to use their money in this way. When Brewer’s investors realized the fraud and obtained civil judgments against him, he moved to Montana and assumed a new identity. He later claimed to have been wrongfully arrested before admitting who he was. This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Social Security Administration Office of Inspector General. Assistant U.S. Attorneys Joseph D. Barton, Henry Z. Carbajal III, and Alyson A. Berg are prosecuting the case. Brewer is scheduled to be sentenced on June 26, 2023, by U.S. District Judge Jennifer L. Thurston. Brewer faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 for the wire fraud conviction. He also faces a maximum statutory penalty of 20 years in prison and a fine a of $500,000 or twice the amount of money involved for the money laundering conviction, whichever is the greater. Finally, he faces a mandatory two years in prison, consecutive to other counts, for the aggravated identity theft conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.


title: Jacksonville Man Sentenced To More Than 8 Years For Downloading Thousands Of Videos And Images Of Children Being Sexually Abused

component: USAO - Florida, Middle

body_text: Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Michael Ray King (42, Jacksonville) to eight years and one month in federal prison for using the internet to download and receive videos and images showing children being sexually abused. King was also ordered to serve a 15-year term of supervised release, register as a sex offender, and pay child victims a total of $50,500 in restitution. King was arrested by FBI agents at his home on November 18, 2021, and he has been detained since June 1, 2022, when his bond was revoked because he accessed the internet in violation of his release conditions. King had pleaded guilty in September 2022. According to court documents, in 2021, the FBI was investigating individuals who were using online networks to receive and share child sexual abuse materials. This investigation revealed that in July, August, and September 2021, King used a computer connected to the internet at his Jacksonville residence to access videos depicting young children being sexually abused. On November 18, 2021, the FBI executed a federal search warrant at King’s house and seized, among other things, an external computer hard drive that was connected by a cable to a gaming computer. A forensic examination of these devices ultimately revealed that King had collected at least 5,000 videos and at least 2,000 images depicting child sexual abuse, including young children being sexually assaulted, bestiality, and bondage. The forensic evidence further showed that King had downloaded these child sexual abuse materials from the internet using a particular file-sharing program. This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown. Assistant United States Attorney Mai Tran handled the forfeiture of assets, including the two computer devices used by King to receive and store child sexual abuse materials. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the epidemic of online child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to investigate, locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc .


title: South Bend Man Sentenced to 78 Months in Prison

body_text: SOUTH BEND – Mustafaa Slim, 29 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Robert L. Miller, Jr. after pleading guilty to possessing with intent to distribute controlled substances and being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson. Slim was sentenced to 78 months in prison followed by 2 years of supervised release. According to documents in the case, on two occasions in May 2022, Slim sold a heroin/fentanyl substance to an individual. A search warrant executed at Slim’s residence resulted in the recovery of 3 firearm, fentanyl/methamphetamine, cocaine, and over $8,000.00 in cash. This is Slim’s third conviction involving guns and his second involving drugs. Slim’s prior felony convictions preclude him from possessing the firearms. This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the South Bend Police Department. This case was prosecuted by Assistant United States Attorney Jerome W. McKeever. 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: Osceola County Mortgage Loan Officer Charged With Bank Fraud And Aggravated Identity Theft

body_text: Orlando, FL – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Omayra Ujaque (52, Saint Cloud) with three counts of bank fraud and one count of aggravated identity theft. If convicted, she faces up to 30 years in federal prison on each bank fraud count and a mandatory consecutive 2 years’ imprisonment for the aggravated identity theft count. According to the indictment, Ujaque, in her capacity as a licensed mortgage loan officer, created and executed a mortgage fraud scheme targeting the financial institution where she worked. To ensure that otherwise unqualified borrowers were approved for mortgage loans, Ujaque falsified borrowers’ income through completely fabricated or inflated monthly child support payments on mortgage loan applications that she signed and certified to the financial institution’s underwriting department. In furtherance of her scheme, Ujaque created fictitious Final Judgments of Dissolution of Marriage and Final Orders Modifying Child Support showing the borrowers were entitled to receive non-existent monthly child support payments. Ujaque then used the names of judges from the Circuit Court of the Ninth District of Florida and forged their signatures on the fabricated Final Judgments of Dissolution of Marriage or Final Orders Modifying Child Support. Ujaque then created bogus Florida Department of Revenue Statements showing the party purportedly paying monthly child support payments to the borrowers and manufactured phony prepaid debit card statements showing the borrowers purportedly withdrawing the non-existent monthly child support payments. In most cases, the children did not exist or the borrowers had never been married. Ujaque submitted bogus paperwork to the financial institution to support the false monthly income on the loan applications. Based on Ujaque’s misrepresentations, the financial institution approved and funded the mortgage loans. 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 Federal Housing Finance Agency – Office of Inspector General, U.S. Department of Housing and Urban Development – Office of Inspector General and the Florida Office of Financial Regulation. It will be prosecuted by Special Assistant United States Attorney Chris Poor.


title: 3D Printing Company to Pay Up to $4.54 Million to Settle False Claims Act Allegations for Export Violations in Connection with NASA and DOD Contracts

component: USAO - Texas, Northern

body_text: A 3D printing company has agreed to pay the United States up to $4.54 million to resolve allegations that it violated the False Claims Act by improperly transmitting export-controlled technical data to China in violation of the export control laws of the United States in connection with certain NASA and DOD contracts, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. In parallel agreements also related to alleged export violations, the company has agreed to a $20 million administrative settlement with the U.S. Department of State, and a $2.77 million administrative settlement with the U.S. Department of Commerce. Per the terms of a civil settlement executed with the Department of Justice on February 27, 2023, South Carolina-based 3D Systems Corporation agreed to pay $2.27 million in restitution to the federal government within the next 30 days. The company may be required to pay an additional $2.27 million in penalties under the Justice Department settlement agreement, for a total of up to $4.54 million, if it fails to pay at least that amount in civil penalties to the Department of State and the Department of Commerce in connection with the parallel administrative settlements referenced above. According to the Justice Department Settlement Agreement, 3D Systems – through its Quickparts subsidiary – completed on-demand manufacturing projects both directly and indirectly on contracts issued by DOD and NASA, including for projects involving technical or other data potentially classified under and controlled by the International Emergency Economic Powers Act, the Arms Export Control Act, the Export Administration Regulations, and/or the International Traffic in Arms Regulations (collectively, the Export Control Laws). Generally, the Export Control Laws prohibit certain controlled items and/or intellectual property from being exported to certain foreign countries, including the People’s Republic of China, without a license or authorization from the appropriate federal agencies. In the Justice Department settlement agreement, the United States alleged that between January 1, 2012 and December 31, 2017 3D exported certain items and/or intellectual property to China without the appropriate license or authorization in violation of the Export Control Laws in connection with certain contracts issued by DOD and NASA in violation of the False Claims Act. The claims resolved by the settlement are allegations only. There has been no determination of liability. This matter was jointly investigated by the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, the National Aeronautics and Space Administration Office of Inspector General, Homeland Security Investigations, and the U.S. Department of Commerce, Office of Export Enforcement. Assistant U.S. Attorney Kenneth Coffin handled this matter on behalf of the Department of Justice.


title: Sturgis Man Indicted for Sexual Exploitation of a Minor

component: USAO - South Dakota

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Sturgis, South Dakota, man for Attempted Sexual Exploitation of a Minor, Attempted Enticement of a Minor Using the Internet, Attempted Receipt of Child Pornography, and Attempted Transfer of Obscene Material to a Minor. Bobby Allan Aldinger, age 52, was indicted in November of 2022. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on February 21, 2023, and pleaded not guilty to the Indictment. The maximum penalty upon conviction is a mandatory minimum of 15 years in custody and/or a $250,000 fine, mandatory minimum of five years of supervised release, and $100 to the Federal Crime Victims Fund for each count. Restitution may also be ordered. The charges relate to Aldinger attempting to sexually exploit an undercover law enforcement agent posing as a 14-year-old female. The charge is merely an accusation and Aldinger is presumed innocent until and unless proven guilty. The investigation is being conducted by the South Dakota Division of Criminal Investigation, the South Dakota Internet Crimes Against Children Task Force, and Homeland Security Investigations. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case. Aldinger was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for May 2, 2023. ###


title: South Carolina Man Who Trafficked Guns into Connecticut Sentenced to 8 Years in Federal Prison

component: USAO - Connecticut

body_text: Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MARQUIS JEROME POLLARD, 42, of Yemassee, South Carolina, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 96 months of imprisonment, followed by three years of supervised release, for firearm offenses related to an illegal gun trafficking operation. According to court documents and statements made in court, in the spring of 2021, ATF Task Force officers learned that Pollard used straw purchasers to obtain firearms in South Carolina, and sold the firearms in Connecticut. On April 19, 2021, investigators made a controlled purchase of a 9mm Glock handgun and a drum magazine from Pollard and Quinn Mooring in New Haven in exchange for $1,500. The firearm was one of five 9mm handguns that had been purchased by an individual at a pawn shop in Port Royal, South Carolina, in the month prior to the transaction in Connecticut. On May 3, 2021, investigators surveilled the firearm purchaser as he picked up two additional handguns from the Port Royal firearm dealer and traveled to a restaurant parking lot in Beaufort, South Carolina, where he transferred them to Pollard. When law enforcement attempted to arrest Pollard, he fled in his vehicle at a high rate of speed. Pollard drove on sidewalks and over curbs during the pursuit, and was eventually apprehended in a residential neighborhood after abandoning his car and attempting to flee on foot. Investigators recovered three firearms from his vehicle, including the two handguns that he received in the restaurant parking lot, and a loaded .40 caliber pistol with a 30-round magazine. The investigation revealed that Pollard paid two separate straw purchasers to acquire at least 17 firearms for him. In addition to the two handguns that were seized from Pollard’s vehicle and the 9mm handgun that investigators purchased from Pollard in New Haven in April 2021, five additional firearms have been recovered by law enforcement. One was recovered from a felon in New Haven in June 2021; one was recovered from the scene of a shooting in Hamden; one was recovered after it was used in a shooting in New Haven; one was recovered from a juvenile in South Carolina after it had been used in multiple crimes; and one was recovered earlier this month in Hamden from an individual who was fleeing from law enforcement in possession of the firearm and a distribution quantity of crack cocaine. Nine firearms have not been recovered. Pollard’s criminal history includes multiple felony convictions. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce. Pollard was charged by indictments in both the District of Connecticut and in the District of South Carolina. The South Carolina case was transferred to Connecticut for further prosecution. Pollard has been detained since his arrest. On October 28, 2022, he pleaded guilty to two counts of unlawful possession of a firearm by a felon. On January 13, 2022, Mooring, of New Haven, pleaded guilty of possession of a firearm by a felon. He awaits sentencing. The individuals who purchased firearms for Pollard in South Carolina were charged and convicted in the District of South Carolina. This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), West Haven Police Department, New Haven Police Department, Beaufort Police Department, and Beaufort County Sheriff’s Office. These cases are being prosecuted by Assistant U.S. Attorney Konstantin Lantsman. The South Carolina case is being prosecuted by Special Assistant U.S. Attorney Carra J. Henderson in the District of South Carolina. This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.


title: Former Oglala Sioux Tribe President Indicted for Wire Fraud and Embezzlement

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Pine Ridge, South Dakota, man on six counts of Wire Fraud, one count of Larceny, and one count of Embezzlement and Theft from an Indian Tribal Organization. Julian Bear Runner, age 37, was indicted in September of 2022. He appeared before U.S. Magistrate Judge Daneta Wollman on February 24, 2023, and pleaded not guilty to the Indictment. The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. Between 2019 and 2020, at Pine Ridge, Bear Runner, while acting in his capacity as President of the Oglala Sioux Tribe, fraudulently submitted travel vouchers for official business travel and received payment for travel that he did not take. The charges are merely accusations and Bear Runner is presumed innocent until and unless proven guilty. The investigation is being conducted by Health and Human Services, Office of Inspector General, and the FBI. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case. Bear Runner was remanded to the custody of the US Marshals Service pending trial. A trial date has been scheduled for May 2, 2023. ###


title: North Carolina Woman Indicted for Making False Statements

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Greensboro, North Carolina, woman on two counts of False Statement. Erin Lynn Hower, M.D., age 38, was indicted in January of 2023. She appeared before U.S. Magistrate Judge Daneta Wollman on February 24, 2023, and pleaded not guilty to the Indictment. The maximum penalty upon conviction is up to five years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered. In July of 2020, at Pine Ridge, South Dakota, Hower knowingly made false statements in an employment application she submitted to Indian Health Services. The charge is merely an accusation and Hower is presumed innocent until and unless proven guilty. The investigation is being conducted by Health and Human Services, Office of Inspector General. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case. Hower was released on bond pending trial. A trial date has been scheduled for May 2, 2023.


title: Chief Financial Officer Sentenced to Three Years for Embezzling More Than $1.3 Million

body_text: CHICAGO — The former chief financial officer of a suburban IT consulting firm has been sentenced to three years in federal prison after embezzling over $1.3 million from his former company, of which he was a partner, CFO, and Managing Member. ANTHONY FREMAREK, 49, of Plainfield fraudulently caused funds from two of the Schaumburg-based company’s bank accounts to be used to pay his personal credit cards, from 2013 to 2019. Fremarek attempted to conceal the embezzlement by falsifying entries in the company’s accounting system to disguise the payments as seemingly legitimate business expenses and submitting falsified financial information to the company’s banks. Fremarek pleaded guilty to one count of wire fraud in November 2022. The sentence was imposed by U.S. District Court Judge Robert Gettleman on February 23, 2023. The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Douglas Zloto, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office. The government is represented by Assistant U.S. Attorney Ashley A. Chung. “[A]s soon as [defendant] had access to the company’s accounts and financial records, he began abusing his position out of pure greed,” Assistant U.S. Attorney Ashley A. Chung argued in the government’s sentencing memorandum. “Defendant . . . unrepentantly betray[ed] the trust of his former partners and employees and stopped only when he was caught and terminated.”


title: New Hampshire Man Indicted for Allegedly Robbing Five Massachusetts Banks

body_text: BOSTON – A New Hampshire man has been indicted by a federal grand jury in Boston for the allegedly committing a string of five bank robberies across Northern Massachusetts. Reinaldo Ortiz, 45, of Manchester, N.H., was indicted on five counts of bank robbery. Ortiz was previously arrested and charged by criminal complaint on Jan. 12, 2023. According to the charging documents, between March 9 and March 24, 2022, Ortiz drove from New Hampshire to Massachusetts and robbed a string of banks in Fitchburg, Lowell, Chelmsford, Wilmington and Lexington. It is alleged that Ortiz entered each of the banks disguised in a mask and demanded cash from the teller’s drawer. When the tellers complied, Ortiz allegedly made off with several thousand dollars in cash and fled the scene of the robbery in a gray 2006 Honda Accord. A subsequent investigation allegedly found Ortiz’s fingerprints on a glove discarded outside one of the robbed banks and that his cellphone movement was consistent with the robbery route. The charge of bank robbery provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Manchester (N.H.) Police Department. Assistant U.S. Attorney Benjamin A. Tolkoff of Rollins’ Major Crimes Unit is prosecuting the case. The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: St. Louis Man Accused of Producing Child Sexual Abuse Materials with Multiple Victims

component: Federal Bureau of Investigation (FBI)

body_text: ST. LOUIS – A man from St. Louis, Missouri has been charged by complaint in U.S. District Court with production of child pornography and accused of making and disseminating videos involving multiple victims. Tracy Jenkins, 57, was charged Friday and appeared in court Monday. Charging documents say the local office of the FBI received information Thursday that FBI headquarters had potentially identified and located one of the victims in a series of videos containing child sexual abuse material that had been circulating online. Investigators verified the identity of that victim and conducted interviews that led to the identification of four other minors who were also subjected to years of sexual abuse by Jenkins that Jenkins recorded, the charging documents say. A court-approved search of Jenkins’ home located a hard drive that contained well over 100 videos that matched those circulating online and containing recordings of the abuse of the identified minors as well as others who have not yet been identified, the charging documents say. The complaint says Jenkins has a prior conviction for misdemeanor sexual misconduct in a 1997 case in St. Louis Circuit Court. “The FBI has been continuously working to identify these victims since 2017 when we first became aware this child sexual abuse material,” said Special Agent in Charge Jay Greenberg of the FBI St. Louis Division. “In fact, the FBI initiative called 'Operation Rescue Me' has identified more than 600 child victims like these since 2008 using technology and painstaking investigative work.” “The FBI worked tirelessly to identify and rescue the minors whose abuse was depicted in videos circulating online,” said U.S. Attorney Sayler A. Fleming. The production of child pornography charge is punishable by 15 to 30 years in prison, a $250,000 or both. Charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty. The case was investigated by the FBI. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.


title: Two North Shore Men Indicted for Drug Conspiracy Involving Tens of Thousands of Counterfeit Pills

body_text: BOSTON – Two men from the North Shore have been indicted by a federal grand jury in Boston in connection with a drug conspiracy involving tens of thousands of counterfeit pills containing methamphetamine and fentanyl. Charles Bates, 31, of Reading, and Aaron Lenardis, 36, of Saugus, were indicted on one count each of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine and 40 grams or more of fentanyl. Lenardis was also indicted on an additional count of possession with intent to distribute 500 grams or more of methamphetamine and 40 grams or more of fentanyl and one count of being a felon in possession of firearms and ammunition. Bates and Lenardis will appear in federal court in Boston tomorrow at 3:30 p.m. They were initially charged by complaint in October 2022. According to the charging documents, in August 2022, an investigation began into Bates after he ordered 50 kilograms of an orange binding agent commonly used to make counterfeit Adderall pills, which he was allegedly observed picking up at a UPS store in Boston. Court filings allege that Bates exchanged text messages with drug customers and associates in which he spoke about pills that are “made to order,” described being physically present at the place where the pills were made and “watching the guy work so no corners have been cut.” It is also alleged that Bates drafted recipes for counterfeit pills that he kept on his phone or sent to others. It is alleged that the offense involved at least 136,000 counterfeit pills containing methamphetamine, equivalent to approximately 40 kilograms of such pills. It is further alleged that after the pill press broke, Bates traveled to Pawtucket, R.I., to obtain a replacement. Bates was allegedly observed transporting a large, heavy item that appeared to be a pill press to Lenardis’ residence in Saugus. According to court documents, a search of Lenardis’ residence in Saugus on Oct. 25, 2022 resulted in the seizure of: an industrial pill press, 14 firearms including a Glock outfitted to operate as a machinegun, at least 1.85 kilograms of pills and powder containing methamphetamine, at least 87.6 grams of pills and powder containing fentanyl and “M30” stamps commonly used to manufacture counterfeit pills. The charges of conspiracy to possess with intent to distribute and possession with intent to distribute 500 grams or more of methamphetamine each provide for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charges of conspiracy to possess with intent to distribute and possession with intent to distribute 40 grams or more of fentanyl each provide for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $8 million. The charge of being a felon in possession of firearms and ammunition provides for a sentence of up to 10 years in prison, up to 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. United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Samuel R. Feldman of Rollins’ Narcotics & Money Laundering Unit is 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: Former Aroostook County Man Faces Up to 20 Years for Role in Penobscot & Aroostook County Drug Trafficking

component: USAO - Maine

body_text: BANGOR, Maine: A former Aroostook County resident pleaded guilty in U.S. District Court in Bangor today to conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl. According to court records, between January 2018 and December 2021, Andrew Adams , 31, along with others, trafficked methamphetamine and fentanyl in Penobscot and Aroostook counties. His participation in the conspiracy resulted in contacts with local law enforcement that led to the seizure of drugs, firearms, drug paraphernalia and other items. Adams faces up to 20 years imprisonment. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The U.S. Drug Enforcement Administration, Maine Drug Enforcement Agency, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistance was provided by the Orono, Bangor, Brewer, Caribou, Presque Isle, and Houlton police departments. U.S. Attorney Darcie N. McElwee also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office and the Aroostook County District Attorney’s Office. Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. ###


title: Another guilty of trafficking women in cantina backroom

component: USAO - Texas, Southern

body_text: HOUSTON – A 30-year-old man who resided in Houston has pleaded guilty to several sex trafficking crimes and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani. Edgar Botello admitted to sex trafficking with force, fraud or coercion and conspiracy to do so as well as possession of child pornography. “Sex traffickers prey on the vulnerable, including those in the United States without documentation,” said Hamdani. “These victims are often fearful of law enforcement and reluctant to come forward. I praise the bravery of the victims which led to the conviction of Botello and his mother. If you are a victim or know someone who is, please contact authorities. We work side-by-side with victims to bring people like Botello to justice.” Botello worked with his mother - Maria Botello-Morales - to run a cantina known as Puerto Algre. There, they forced several females to engage in commercial sex in backrooms built specifically for that purpose. As part of his plea, Botello threatened and intimidated these victims with violence to manipulate them into the sex acts for his personal financial benefit. The victims reported they had started at the bar as waitresses. However, Botello-Morales used Botello as her representative and enforcer and told them they had to engage in commercial sex. If they refused, she threatened them with violence. The women reported Botello always carried a gun with him and, on occasion, threatened them. Some of the victims witnessed violence and weapons at the bar and in the back area where the sex acts occurred. Each described how they had to take customers to the backrooms. They were given a condom wrapped in a paper towel, were to spend no more than 15 minutes in the room and charge approximately $70. Upon exit, they had to turn the money over to whoever was guarding the room, which was often Botello. Law enforcement conducted a search at Botello’s residence on April 1, 2021. At that time, they found numerous weapons in his room. They also discovered a computer which was found to contain child pornography. U.S. District Judge Andrew S. Hanen accepted the plea and set sentencing for June 12. At that time, Botello faces up to life in prison for the sex trafficking charges as well as up to another 10 years for the possession of child pornography. Botello has been and will remain in custody pending that hearing. Botello-Morales, 56, pleaded guilty Jan. 3o and also remains in custody pending sentencing. The Texas Alcoholic Beverage Commission (TABC) and Homeland Security Investigations (HSI) conducted the investigation with the assistance of the Houston Police Department (HPD) as part of the Human Trafficking Rescue Alliance (HTRA). Assistant U.S. Attorney Sherri L. Zack is prosecuting the case. HTRA law enforcement includes members of the HPD; FBI; HSI; Texas Attorney General’s Office; IRS-Criminal Investigation; Department of Labor (DOL); DOL – Wage and Hour Division; Department of State; Federal Air Marshals; TABC; Texas Department of Public Safety; Texas Rangers; Texas Parks and Wildlife; Social Security Administration – OIG; Texas Department of Licensing and Regulation; Texas Department of Family and Protective Services as well as police departments in Houston Independent School District (ISD), Conroe ISD and Missouri City; Harris County constables offices – Precincts one and four; sheriff’s offices in Harris, Montgomery, Fort Bend, Brazoria and Waller counties in coordination with District Attorney’s offices in Harris, Montgomery, Fort Bend and Galveston Counties. They work in coordination with victim service providers such as YMCA, United Against Human Trafficking and Texas Forensic Nurse Examiners. Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.


title: Carson Man Sentenced to More Than 11 Years in Prison for Role in International Conspiracy to Launder Money Taken from Fraud Victims

body_text: LOS ANGELES – A Carson man who was a central figure in an international fraud and money-laundering network that targeted $25 million through a variety of frauds – including romance scams and elder fraud – was sentenced today to 135 months in federal prison. Valentine Iro, 34, the lead defendant in a 252-count federal grand jury indictment that charged 80 individuals, was sentenced by United States District Judge R. Gary Klausner. Judge Klausner also ordered Iro to pay $1,397,553 in restitution. Iro pleaded guilty in October 2020 to one count of conspiracy to engage in money laundering. He has been in federal custody since August 2019. From October 2014 to August 2019, Iro helped lead a massive international criminal network that conspired to defraud individuals and companies all over the world and then to launder an intended amount of more than $25 million in intended ill-gotten gains. Known globally to fraudsters and their middlemen, Iro communicated primarily through encrypted messaging applications and phone calls. He worked to connect the fraudsters, who were committing various online scams, with money movers and bank accounts that could be used to receive and launder money from victims. Iro knew that the scams included business email compromise (BEC) fraud, romance scams, and other fraud schemes. A native of Nigeria, Iro at times used code words and Nigerian pidgin – an English-based dialect used across that nation – to avoid detection by law enforcement. The fraudsters perpetrating these criminal activities largely were located outside the United States. As part of the scheme, Iro negotiated his “cut” of the illegal proceeds that he would keep for himself for organizing the receipt and laundering of funds. He then would select or find a bank account, or assist in opening bank accounts, to be used to receive victims’ money. Iro collected bank account information for banks in the Los Angeles area and in other cities and nations often in preparation for requests to come from co-conspirators. For romance scams and elder fraud, Iro sometimes used bank accounts under his personal control. For BEC frauds, if a bank account with a specific business name was required to trick a business-victim into making a payment, Iro often coordinated with “money movers” to open accounts that could receive funds obtained, according to court documents. In addition to making the fake business name mirror the name of a legitimate company, members of the conspiracy routinely filed fictitious business name statements with the Los Angeles County Registrar/Recorder’s Office that were presented to banks when the fraudulent accounts were opened. Once a victim deposited funds into a bank account or a money service account, Iro coordinated with others to further launder the funds. Members of the conspiracy sometimes wired funds to other bank accounts under their control; in other cases, they simply withdrew funds as cash or negotiable instruments such as cashier’s checks. When stolen funds were withdrawn as cash, the conspirators frequently used illicit money exchangers to move funds overseas, generally avoiding transferring the funds directly through banking institutions. To do this, Iro coordinated the transfer of a victim’s funds from a fraudulent bank account they controlled to U.S. bank accounts belonging to illicit money exchangers. Those money exchangers, in turn, used a Nigerian banking application to transfer other funds in naira (₦), the currency of Nigeria, from Nigerian bank accounts they controlled to the Nigerian bank accounts specified by Iro. This method was used to transfer millions of dollars to Nigerian co-conspirators without directly transferring funds overseas. “This case is part of our multiprong approach to protect Americans from attempts to steal their money through elaborate scams being perpetrated around the world,” said United States Attorney Martin Estrada. “Through lies and deceit, these fraud artists try to fleece businesses and individuals, including the elderly and vulnerable. This case demonstrates that we can and will identify, charge, and prosecute fraudsters and their money laundering accomplices, no matter how far across the world their criminal network may stretch.” “Defendant Iro masterminded this international money laundering scheme for years and, in the process, stole money and identities from hundreds of victims, including some who were led to believe they were in a romantic relationship only to learn they were being scammed,” said Donald Alway, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “As we continue to investigate this case and look for fugitives, we urge Americans to learn how to identify BEC, romance, and other schemes, which have increased dramatically in recent years.” Federal prosecutors have secured 21 convictions in this case so far. Additional defendants have been arrested in Nigeria, and others are at large. The FBI Cyber Task Force led this investigation. The Justice Department also recognizes substantial assistance from the United States Department of State’s Diplomatic Security Service; the Los Angeles County District Attorney’s Office; the Orange County District Attorney’s Office; the Ventura County District Attorney’s Office; the San Bernardino Police Department; the Los Angeles County Sheriff’s Department; and the California Franchise Tax Board. Many of the FBI’s Legal Attachés provided assistance throughout this investigation, as did the Office of International Affairs in the Justice Department’s Criminal Division and foreign authorities around the world. Multiple private sector partners were also instrumental throughout this investigation, including Palo Alto Networks, Flashpoint, and the National Cyber-Forensics and Training Alliance (NCFTA). Assistant United States Attorney Sue J. Bai of the Cyber and Intellectual Property Crimes Section is prosecuting this case. The FBI has issued a report on the rise of BEC schemes , and published a recap of Operation WireWire , which was an international effort to disrupt international BEC scams. An FBI public service announcement that warns of the dangers of BEC schemes encourages businesses to “trust but verify.”


title: Former FBI Special Agent Sentenced to 6 Years in Prison for Accepting Bribes Paid by Attorney Linked to Organized Crime Figure

body_text: LOS ANGELES – A former FBI special agent was sentenced today to 72 months in federal prison for conspiring to accept at least $150,000 in cash bribes and other items of value in exchange for providing sensitive law enforcement information to a corrupt attorney with ties to Armenian organized crime. Babak Broumand, 56, of Lafayette, California, was sentenced by United States District Judge R. Gary Klausner. In addition to the prison sentence, Judge Klausner ordered Broumand to pay a $30,000 fine and to forfeit $132,309 linked to his criminal activity. “Mr. Broumand took an oath of office, swearing to defend the laws of the United States and to uphold the high standards of the FBI. He violated this solemn promise and now he will face the consequences of his choice,” said United States Attorney Martin Estrada. “Not only did this one-time special agent put his self-interest above all else, but he also did so while providing support to other criminals who compromise public safety. I am grateful for our hard-working law enforcement partners, including the FBI, who worked to uncover this misconduct and brought this corrupt agent to justice.” “Today's sentencing of Mr. Broumand, a former FBI agent who abandoned his pledge to serve the American people in exchange for a lavish lifestyle, is gratifying and reaffirms the FBI’s commitment to weeding out corruption of public officials, including those from within.” said Donald Alway, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “I'm proud of the agents and prosecutors who devoted years to this sensitive investigation and trial which resulted in today's outcome and a restoration of trust by the people we serve.” A federal jury in October 2022 found Broumand guilty of one count of conspiracy, two counts of bribery of a public official, and one count of monetary transactions in property derived from specified unlawful activity. The jury found Broumand not guilty of one count of bribery of a public official and one count of monetary transactions in property derived from specified unlawful activity. Broumand has been in federal custody since the jury returned the guilty verdict against him at the conclusion of an 11-day trial. “Broumand conspired with the very types of criminals he was trusted to investigate, taking bribes in exchange for information. Today’s sentencing should send a clear message that no one is above the law, and that the Department of Justice Office of the Inspector General is committed to rooting out this kind of corruption,” said Zachary Shroyer, Special Agent in Charge of the Department of Justice Office of the Inspector General Los Angeles Field Office. “Every law enforcement officer took an oath to never betray their integrity and to enforce the law with fairness and justice when they enter this profession. Unfortunately, Babak Broumand betrayed that oath and violated the trust bestowed on him by the American people when he released sensitive law enforcement information in exchange for money, gifts, and other personal benefits,” said Darren Lian, Special Agent in Charge of the IRS Criminal Investigation’s Oakland Field Office. “Today’s sentence shows that no one is above the law, and those who dare to cross the line will be held responsible for their unlawful actions. IRS Criminal Investigation, along with its law enforcement partners, are fully committed to purse those who undermine the integrity of our justice system.” Broumand was a Bay Area resident and served as an FBI special agent from January 1999 until shortly after search warrants were served on his home and businesses in 2018. He was responsible for national security investigations and was assigned to the FBI Field Office in San Francisco. From January 2015 to December 2018, Broumand accepted cash, checks, private jet flights, a Ducati motorcycle, hotel stays, escorts, meals, and other items of value from an organized crime-linked attorney – identified in court papers as “E.S.,” and each man acted to conceal the true nature of their corrupt relationship. In return for the bribe payments and other items of value, Broumand conducted law enforcement database inquiries and used those inquiries to help E.S. and his associates avoid prosecution and law enforcement monitoring. Specifically, Broumand informed E.S. whether a particular person or entity was under criminal investigation by stating that E.S. should “stay away” from that person or that they were “OK.” To conceal the nature of their corrupt relationship, Broumand made it falsely appear that E.S. was working as an FBI source. Broumand wrote false reports after the fact to make it appear that he conducted legitimate law enforcement database inquiries. In exchange for the illegal inquiries, E.S. paid Broumand at least $150,000 in cash and check bribes, including a Ducati motorcycle and accessories valued at more than $36,000. The bribes were deposited into the accounts for Love Bugs LLC, a Lafayette-based lice-removal hair salon business that Broumand and his wife started in 2007. Soon after the bribery scheme began, E.S. asked Broumand to query the FBI database for Levon Termendzhyan, an Armenian organized crime figure for whom E.S. had worked. The database search “rang all the bells” and revealed an FBI investigation in Los Angeles, according to court documents, which note that Broumand accessed the FBI case file on Termendzhyan repeatedly in January 2015. Broumand also allegedly accessed the Termendzhyan FBI case file in May 2016. Termendzhyan, a.k.a. “Lev Aslan Dermen,” was found guilty in March 2020 in federal court in Utah on criminal charges related to a $1 billion renewable fuel tax credit fraud scheme. His sentencing hearing in the District of Utah is scheduled for April 6. In December 2015, at E.S.’s request, Broumand searched a confidential FBI database for information about Sam Sarkis Solakyan, a medical imaging company CEO, and later warned E.S. to “stay away” from Solakyan, who was “trouble,” meaning that Solakyan was under law enforcement investigation. Solakyan eventually was charged in San Diego federal court, tried, convicted and sentenced to five years in federal prison for running a scheme that submitted more than $250 million fraudulent claims through California’s workers compensation system. In May 2016, Broumand interfered with an FBI investigation into Felix Cisneros Jr., a corrupt special agent with Homeland Security Investigations who also had ties to Termendzhyan. Cisneros was convicted at trial in two different cases. The first trial, in 2018, resulted from Cisneros’s corrupt acts for Termendzhyan. The second trial, in April 2022, resulted from Cisneros’s corrupt acts for E.S. Cisneros was sentenced to 10 years in federal prison. The FBI, the United States Department of Justice’s Office of the Inspector General, and IRS Criminal Investigation investigated this matter. The United States Department of Homeland Security’s Office of the Inspector General provided assistance at Broumand’s trial. Assistant United States Attorneys Michael J. Morse of the Public Corruption and Civil Rights Section, Juan M. Rodriguez of the Environmental and Community Safety Crimes Section, and Tara B. Vavere of the Asset Forfeiture and Recovery Section prosecuted this case.


title: Three Sentenced in “Grandparent Scam” Conspiracy that Defrauded Rhode Island Seniors

component: USAO - Rhode Island

body_text: PROVIDENCE – Three men have been sentenced to federal prison for their roles in a “grandparent scam” conspiracy that defrauded more than a dozen Rhode Island seniors between the ages of seventy-nine and ninety-four out of more than $300,000, announced United States Attorney Zachary A. Cunha. At least fourteen Rhode Island seniors were contacted by members of the conspiracy who impersonated family members or attorneys, claiming that a family member, often a grandchild, had been arrested and was in immediate need of cash for bail payments. The victims were directed to gather cash for these fake bail payments and to provide the money to a courier who would be sent to their home. Bryan Valdez-Espinosa, 22, and Diego A. Alarcon, 22, of Union City, NJ; and Jason Hatcher, 40, of New York, NY, previously admitted to a federal judge that in June 2021, they traveled around Rhode Island posing as the couriers, collecting cash from victims of the scam. The elder victims were defrauded out of a total of $304,081. In July 2022, Hatcher pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft; Alarcon and Valdez-Espinosa each pleaded guilty to conspiracy to commit wire fraud. On Friday, Alarcon was sentenced by U.S. District Court Judge William E. Smith to 30 months of incarceration to be followed by 3 years of federal supervised release, and ordered to pay restitution totaling $304,081; Valdez-Espinosa was sentenced by Judge Smith on February 13, 2023, to 30 months of incarceration to be followed by 3 years of federal supervised release, and to pay restitution in the amount of $262,240; Jason Hatcher was sentenced on November 21, 2022, to 33 months in federal prison followed by three years of federal supervised release, and ordered to pay restitution totaling $304,081. The cases were prosecuted by Assistant United States Attorneys Lee H. Vilker , G. Michael Seaman, and Christine D. Lowell. The matter was investigated by Homeland Security Investigations. United States Attorney Cunha thanks the Warwick, Cranston, East Providence, Johnston, Hopkinton, Cumberland, Coventry, North Kingstown, Barrington, and Smithfield Police Departments for their assistance with the investigation. ###