title: Texas Man Sentenced for Extortion and Cyberstalking a Utah Woman for Sexually Explicit Photographs and Videos

component: USAO - Utah

body_text: Salt Lake City, Utah – A Texas man was sentenced Tuesday to five years imprisonment for multiple counts of extortion and cyberstalking a Utah victim and her family. According to court documents, for over a year, Jordy Julian Alvarez, 28, a Texas resident, repeatedly harassed and intimidated the female victim to provide an explicit video or he would release to the public compromising photos and videos of the victim already in his possession. Alvarez further identified, threatened, intimidated, and harassed the victim’s father, brother, and grandmother to extort more explicit videos of the victim and threatened to further ruin her reputation. Additionally, Alvarez admitted to multiple counts of cyberstalking that caused the victim and her family fear of death or serious bodily injury, and emotional distress. Alvarez’s criminal behavior took place via interstate commerce. In addition to his sentence of 60 months’ imprisonment, Alvarez was ordered to serve three years of supervised release after his prison sentence. “I want to be clear; I would impose the same sentence if the sentencing guidelines were lower,” said U.S. District Court Judge Howard C. Nielson Jr. “The defendant’s criminal actions in this case were heinous,” said U.S. Attorney Trina A. Higgins of the District of Utah. “I commend the victim in this case for coming forward. Our office will continue to work with law enforcement to prosecute offenders that prey on our vulnerable and young via the internet.” “Jordy Alvarez is a cyber predator who relentlessly harassed, bullied, and extorted the victim for an extended amount of time, causing substantial emotional harm,” said Acting Special Agent in Charge Cheyvoryea Gibson of the Salt Lake City FBI. “Cyberstalking is a serious federal crime. The FBI’s Cyber Task Force which includes a strong partnership with the Utah Department of Public Safety, has the tools to hold criminals like Alvarez, who hide behind the internet, accountable.” Assistant U.S. Attorney, Jennifer K Muyskens, of the District of Utah prosecuted the case.


title: Defendants in International Drug Trafficking Conspiracy Found Guilty

component: Drug Enforcement Administration (DEA)

body_text: CHICAGO — The last remaining defendants in an international drug trafficking investigation have been found guilty of multiple drug trafficking charges by a federal jury in Chicago. Evidence at trial revealed that between May 2016 and August 2017 ANTONIO CARRAZCO-MARTINEZ, 42, of Fort Valley, Georgia, also known as “El B,” JUAN MANUEL BARENAS-REYNOSO, 47, of Chicago, also known as “Chingon,” and NICOLASA BENITEZ DENOVA, 30, of Paige, Texas, also known as “Lio,” conspired with others to traffic cocaine and heroin from Mexico to the Chicago area. Carrazco-Martinez, who was alleged to have been the leader of the group’s Chicago operations, was found guilty of conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin, as well as possession with intent to distribute a controlled substance. Barenas-Reynoso and Benitez-Denova, who were alleged to have courier-related roles, were found guilty of conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine, as well as possession with intent to distribute a controlled substance. Benitez-Denova was also found guilty of conspiracy to possess with intent to distribute and distribute 1 kilogram of heroin. Barenas-Reynoso was acquitted of an additional count of possession with intent to distribute a controlled substance. Throughout the multi-year investigation, an additional ten defendants were charged: Pablo Anibal Vazquez-Duarte, also known as “Compa”, “Topo”, and “Troncan”, who is alleged to be the group’s leader in Mexico and remains a fugitive, was charged with conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin, possession with intent to distribute a controlled substance, and distribution of a controlled substance. Leonardo Alfaro-Sandoval, 35, of Michoacan, Mexico, who remains a fugitive, was charged with conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin, and possession with intent to distribute a controlled substance. Ricardo Diaz-Deleon, 34, of Nueva Leon, Mexico, also known as “Diablo”, who remains a fugitive, was charged with conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin, and possession with intent to distribute a controlled substance. Scott London Johnson, 36, of Taylor, Texas, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 500 grams of cocaine on July 12, 2022. Melchor Cardenas, 30, of San Jose, California, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin. Fermin Campos, 41, of Bolingbrook, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin. He was sentenced to 56 months’ imprisonment by U.S. District Judge Sharon Johnson Coleman on February 24, 2022. J’Anthony Lara, 25, of Austin, Texas, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin. He is scheduled to be sentenced by U.S. District Judge Sharon Johnson Coleman on October 11, 2023. Oscar Martinez-Galvan, 25, of Austin Texas, was charged with conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin, and possession with intent to distribute a controlled substance. His charges were dismissed pursuant to a pretrial diversion agreement on July 29, 2021. Ignacio Cordova, 51, of Chicago, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine and 1 kilogram of heroin. He was sentenced to 42 months’ imprisonment by U.S. District Judge Sharon Johnson Coleman on June 4, 2021. Clyde Ford, 61, of Ypsilanti, Michigan, pleaded guilty to conspiracy to possess with intent to distribute and distribute more than 5 kilograms of cocaine. He was sentenced to 30 months’ imprisonment by U.S. District Judge John R. Blakey on August 16, 2022. The verdicts were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration. Substantial assistance was provided by the Chicago Police Department, Illinois State Police, Waukegan Police Department, Homeland Security Investigations Chicago, Internal Revenue Service Criminal Investigations Chicago. The government was represented by Assistant U.S. Attorneys Andrew Erskine, Alejandro Ortega, and Kirsten Moran. The investigation was conducted under the Organized Crime Drug Enforcement Task Force (OCDETF) program, a partnership between federal, state and local law enforcement agencies. The principal mission of OCDETF is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations.


title: Carnegie Resident Sentenced to 11 Years of Imprisonment for Violating Federal Narcotics Laws

component: USAO - Pennsylvania, Western

body_text: PITTSBURGH, PA – A resident of Carnegie, Pennsylvania has been sentenced in federal court to 11 years of imprisonment followed by five years of supervised release on his conviction for violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, Acting United States Attorney Troy Rivetti announced today. United States District Judge Christy Criswell Wiegand imposed the sentence on Terrence Dougherty, age 30. According to information presented to the court, Dougherty ordered at least sixty pounds of methamphetamine from George Charlan, a methamphetamine supplier residing on the West Coast, and approximately 4.5 kilograms of pure methamphetamine was interdicted while en route to the defendant. A search warrant was executed at the defendant’s residence, and investigators seized approximately half of a pound of methamphetamine, 17 kilograms of marijuana, $18,840 in United States currency, and a loaded firearm. Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball prosecuted this case on behalf of the government. The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.


title: Trafficker Arrested With $1 - $2 Million in Meth Inside Duffel Bag Sentenced to 30 Years in Prison

body_text: A drug trafficker who retrieved methamphetamine from a stash house in Dallas was sentenced today to 30 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Omar Jorge Valle Estrada, a 37-year old citizen of Mexico, was convicted at trial of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine in December 2022. He was sentenced Tuesday by U.S. District Judge Brantley Starr, who presided over the trial. According to evidence presented at trial, law enforcement conducting surveillance at a stash house on Holcomb Road in Dallas observed Mr. Estrada drive up to the residence in a white Chevy Malibu. He used a code word to gain access to the property, which was being used by a transnational criminal organization as storage for nearly $10 million worth of Mexican methamphetamine. Two men emerged from inside the home carrying duffel bags, which they placed in Mr. Estrada’s passenger seat. After he departed the home, law enforcement pulled him over for operating with an expired registration and discovered 120 pounds of crystal methamphetamine inside the duffel bags. Experts put the street value of the methamphetamine, which was 99% pure, between $1.1 and $2.2 million. Codefendants Angel Cabrera and Joaquin Salinas – who admitted they were concealing millions of dollars of methamphetamine inside boxes of cauliflower – pleaded guilty prior to trial. Mr. Salinas received a life sentence; Mr. Cabrera received a sentence of more than 21 years. At Mr. Salinas’ sentencing hearing, testimony showed that the Salinas had ties to Sureños XIII criminal street gang and the Puro Tango Blast street and prison gang. The Drug Enforcement Administration’s Dallas Field Division conducted the investigation with the assistance of the Dallas Police Department, the Hickory Creek Police Department, the Fort Worth Police Department, and the Dallas County District Attorney’s Office. Assistant U.S. Attorneys George Leal and John Kull prosecuted the case. This prosecution is part of an Organized Crime Drug Enforcement Task Forces ( OCDETF ) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.


title: Pittsburgh Man Sentenced to 30 Months In Prison for Violating Federal Firearms and Narcotic Laws

body_text: PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to a total of 30 months in prison followed by three years of supervised release on his conviction of violating federal firearms and narcotics laws, Acting United States Attorney Troy Rivetti announced today. United States District Judge William S. Stickman IV imposed the sentence on Dajunatae Alston, 25, formerly of the East Liberty section of Pittsburgh. According to information presented to the court, on April 22, 2020, Alston possessed with intent to distribute approximately 50 grams of marijuana while also possessing a firearm in a school zone. Assistant United States Attorney Carl J. Spindler prosecuted this case on behalf of the government. Acting United States Attorney Rivetti commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Alston.


title: Brownsville Man Pleads Guilty to Possessing Material Depicting Sexual Exploitation of a Minor

body_text: PITTSBURGH, PA – A resident of Brownsville, Pennsylvania, has pleaded guilty to possessing material depicting the sexual exploitation of a minor. Karl Lutes, age 52, pleaded guilty to one count before United States District Judge Cathy Bissoon. According to information presented to the court during the guilty plea hearing, on or about February 11, 2020, agents of Homeland Security Investigations executed a search warrant at Lutes’s residence and found him in possession of videos and still images in computer graphics files depicting the sexual exploitation of minors, some of whom had not yet attained the age of 12 years. Judge Bissoon scheduled sentencing for August 21, 2023. The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Lutes will remain on bond pending sentencing. Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government. Homeland Security Investigations conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.


title: Former Pittsburgh Resident Indicted in Project Safe Childhood Case

body_text: PITTSBURGH, PA- A former resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of transporting, distributing and possessing child pornography, Acting United States Attorney Troy Rivetti announced today. The four-count Indictment named Justin Hughes, 42, as the sole defendant. According to the Indictment presented to the court, on or about November 28, 2022, and November 29, 2022, Hughes did knowingly transport and attempt to transport visual depictions of minors engaged in sexually explicit conduct using the internet. On or about December 25, 2022, Hughes also knowingly distributed visual depictions of minors engaged in sexually explicit conduct to another individual outside of this district, using the internet. Further, in February 2023, Hughes knowingly possessed and accessed with intent to view additional visual depictions of minors engaged in sexually explicit conduct. The law provides for a maximum total sentence of not less than five and not more than 20 years in prison, a fine of $250,000.00, and a term of supervised release of at least five years. However, if the defendant has a prior sex offense conviction under applicable state or federal law, such defendant shall be imprisoned not less than fifteen years nor more than forty years. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Assistant United States Attorney Nicole A. Stockey is prosecuting this case on behalf of the government. The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.


title: Vancouver Man Sentenced to Federal Prison for Armed Robbery of Drug Dealer in Portland

component: USAO - Oregon

body_text: PORTLAND, Ore.—A Vancouver, Washington man was sentenced to federal prison today for his role in an armed robbery of a drug dealer that ended in an exchange of gunfire outside an apartment complex on Hayden Island in Portland. Anthony James Pastorino, 43, was sentenced to 77 months in federal prison and five years’ supervised release. According to court documents, in the early morning hours of September 30, 2021, Pastorino, acting on the instructions of an accomplice, Seth Kamaile Teig, 38, also of Vancouver, traveled from Vancouver to an apartment complex on Hayden Island in Portland. At Teig’s direction, Pastorino waited outside the apartment complex in anticipation of robbing a known drug dealer. When the drug dealer arrived, Pastorino discharged his firearm and stole the drug dealer’s backpack. Pastorino and the drug dealer exchanged gunfire and both sustained serious injuries. Soon after, Pastorino and Teig fled the scene and traveled back to Washington. Officers from the Portland Police Bureau responded to the scene and found 18 shell casings, a trail of blood, and Pastorino’s wallet. Later that day, a resident of the apartment complex found a handgun in some nearby bushes. Further investigation revealed that it was the gun used by Pastorino during the robbery. A later search of Pastorino’s phone revealed text messages wherein Teig directed Pastorino during the robbery and provided information about their target. On October 27, 2021, special agents from Homeland Security Investigations arrested Pastorino for his role in the robbery. Pursuant to a court-authorized search warrant, the agents observed gunshot wounds on Pastorino’s arm and thighs. On November 22, 2021, Pastorino was charged by criminal information with interfering with commerce by robbery and using, carrying, brandishing, and discharging a firearm during and in relation to a crime of violence. On February 2, 2023, he pleaded guilty to the latter charge. On March 14, 2023, Teig was sentenced to 92 months in federal prison and five years’ supervised release for orchestrating the robbery. This case was investigated by HSI and the Portland Police Bureau with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Cassady A. Adams, Assistant U.S. Attorney for the District of Oregon. 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: Sidney meth trafficker sentenced to 15 years in prison

component: USAO - Montana

body_text: BILLINGS — A Sidney man who admitted to trafficking large quantities of methamphetamine in the community after law enforcement seized more than six pounds of the drug from his car was sentenced today to 15 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said. Markel Dean Brown, 60, pleaded guilty in January to conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and distribution of meth. U.S. District Judge Susan P. Watters presided. The government alleged in court documents that in January 2022, law enforcement learned that Brown was distributing meth in Sidney and coordinated a controlled purchase of a half-pound of meth from Brown for $1,500. Investigators further learned that Brown would be traveling out of state to pick up a supply of meth and that Brown went to Texas. The Montana Highway Patrol conducted a traffic stop of Brown’s vehicle when it returned to Montana and ultimately served a search warrant on the vehicle. Law enforcement seized three packages of 100 percent pure meth totaling 6.6 pounds. Agents also searched Brown’s cell phone and found messages that discussed the coordination of Brown picking up meth in Texas. The total amount of meth seized from Brown was 7.1 pounds, which is the equivalent of 25,730 doses. Assistant U.S. Attorney Julie R. Patten prosecuted the case, which was investigated by the Drug Enforcement Administration and Montana Division of Criminal Investigation. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. XXX


title: Registered Sex Offender Arrested for Possessing Child Pornography

component: USAO - Massachusetts

body_text: BOSTON – A Beverly man was arrested today on child pornography offenses. Robert Miller, 59, was charged with one count of possession of child pornography. Following an initial appearance in federal court in Boston this afternoon before U.S. District Court Magistrate Judge Paul G. Levenson, Miller was detained pending a hearing set for May 10, 2023. This case arose from an investigation of a secure online chat platform often used for, among other things, accessing and exchanging child pornography. According to the charging documents, Miller was identified as a member of a large-scale group chat trading child pornography on the platform. During a search of Miller’s residence today, approximately 15 electronic devices were seized and allegedly found to contain multiple videos depicting child pornography. In September 2018, Miller was convicted of possession of child pornography in Essex County Superior Court, for which he received a three-year probationary sentence and was required to register as a sex offender in Massachusetts. The charge of possession of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison, at least five 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 Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit is prosecuting the case. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc. 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: Fort Thompson Man Sentenced for Abusive Sexual Contact of a Child

component: USAO - South Dakota

body_text: PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Fort Thompson, South Dakota, man convicted of Abusive Sexual Contact of a Child. The sentencing took place on May 1, 2023. Carl Estes, age 22, was sentenced to 13 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Estes was indicted by a federal grand jury in September of 2021. He pleaded guilty on January 19, 2023. In the spring/summer of 2021, Estes was living with his girlfriend in Fort Thompson, on the Crow Creek Indian Reservation. Estes was observed touching the genitalia of his girlfriend’s child, who was five years old at the time of the offense. Estes admitted to investigators that he had sexually abused the victim and drew a diagram indicating which part of his hand he used in the sexual assault. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . This case was investigated by the FBI. Assistant U.S. Attorney Troy R. Morley prosecuted the case. Estes was immediately remanded to the custody of the U.S. Marshals Service.


title: Federal Jury Convicts Pocatello Man of Sexual Exploitation of a Child and Receipt of Child Pornography

component: U.S. Attorneys (USAO)

body_text: POCATELLO – Yesterday, after a six-day trial, a federal jury convicted Trenton Powell, 43, of Pocatello, of eight counts of sexual exploitation of a child and three counts of receipt of child pornography, U.S. Attorney Josh Hurwit announced. Senior U.S. District Judge B. Lynn Winmill presided over the trial, which began on April 25, and concluded with guilty verdicts on May 2. According to testimony and evidence presented at trial, Powell sexually abused the first victim for six years while living in Pocatello. Powell photographed the abuse with his iPhone. Years after the abuse ended, another of Powell’s victim reported the abuse to police. Police later seized Powell’s iPhone. After the phone was forensically examined, police recovered images of Powell sexually abusing the first victim. Both victims testified during the trial and confirmed that Powell was the man who molested them. Powell is scheduled to be sentenced on August 15, 2023, before Judge Winmill at the federal courthouse in Pocatello. He faces a mandatory minimum of 15 years with a maximum of up to 300 years in federal prison. Judge Winmill will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Powell will be required to register as a sex offender as a result of the conviction. “I am grateful that our office was able to prosecute this defendant for his heinous crimes and bring justice to the courageous victims,” said U.S. Attorney Hurwit. “We appreciate the jury’s service, which is especially difficult in a case like this. We stand ready to seek justice whenever our community and law enforcement partners uncover crimes against children.” U.S. Attorney Hurwit credited the cooperative efforts of Homeland Security Investigations in Idaho Falls, the Idaho Falls Police Department, and the Pocatello Police Department, which led to the charges. The case was prosecuted by Assistant U.S. Attorneys John Shirts and Justin Paskett. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc . ###


title: Fort Thompson Man Indicted for Sexual Abuse of a Minor

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Fort Thompson, South Dakota, man for Sexual Abuse of a Minor and Abusive Sexual Contact. Loren Goodlow, age 33, was indicted in April of 2023. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on April 24, 2023, and pleaded not guilty to the Indictment. The maximum penalty upon conviction is 15 years in custody and/or a $250,000 fine, five years up to lifetime supervised release, and $100 to the Federal Crime Victims Fund for each count. Restitution may also be ordered. The charges relate to Goodlow engaging in sexual acts with two minors who had attained the age of 12 years old but not attained the age of 16. The charges are merely accusations and Goodlow is presumed innocent until and unless proven guilty. The investigation is being conducted by the FBI. Assistant U.S. Attorney Kelsey Blair is prosecuting the case. Goodlow was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 27, 2023.


title: Parmelee Man Sentenced for Prohibited Person in Possession of a Firearm

body_text: PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Parmelee, South Dakota, man convicted of being a Prohibited Person in Possession of a Firearm. The sentencing took place on May 2, 2023. Alun James Guerue, age 27, was sentenced to time served from May 2, 2023, through August 14, 2023, equaling approximately three and half months of custody, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. He was also ordered to forfeit the Glock 19 pistol and ammunition involved in the matter. Guerue was indicted by a federal grand jury in November of 2021. He pleaded guilty on January 19, 2023. The conviction stemmed from an incident near Soldier Creek, South Dakota, on February 26, 2021, when a law enforcement officer conducted a traffic stop on a vehicle traveling 83-mph in a 65-mph zone. The driver was identified as Guerue. A search of the vehicle uncovered a Glock 19 pistol, marijuana, and cocaine. The pistol belonged to Guerue, who was an unlawful user of a controlled substance, thus prohibited from possessing any firearms. The pistol had been shipped and transported in interstate commerce and foreign commerce This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. Guerue was immediately remanded to the custody of the U.S. Marshals Service.


title: Summerset Man Indicted for Illegal Possession of a Firearm

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Summerset, South Dakota, man for Possession of a Firearm and Ammunition by a Prohibited Person and Possession of an Unregistered Firearm. Jason Johnston, age 36, was indicted in April of 2023. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on April 28, 2023, and pleaded not guilty to the Indictment. The maximum penalty upon conviction is 15 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. The charges relate to Johnston, a previously convicted felon who is prohibited from possessing firearms and ammunition, knowingly being in possession of a Mossberg rifle and ammunition in Summerset in January of 2023. Johnston was also in possession of a privately made silencer. The charges are merely accusations and Johnston is presumed innocent until and unless proven guilty. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Summerset Police Department, and the Rapid City Police Department. Assistant U.S. Attorney Kelsey Blair is prosecuting the case. Johnston was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 27, 2023.


title: New Underwood Man Indicted for Child Pornography

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a New Underwood, South Dakota, man for Receipt of Child Pornography with a Prior Child Pornography Conviction and Possession of Child Pornography with a Prior Child Pornography Conviction. Kent Joy, age 47, was indicted in March of 2023. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on April 28, 2023, and pleaded not guilty to the Indictment. The maximum penalty upon conviction is a mandatory minimum of 10 years in federal prison, up to 20 years and/or a $250,000 fine, a 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 Joy, a person previously convicted for a child pornography offense, knowingly receiving and possessing child pornography between April 18, 2018, and September 19, 2022. The charges are merely accusations and Joy is presumed innocent until and unless proven guilty. This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc . The investigation is being conducted by the South Dakota Division of Criminal Investigation, South Dakota Internet Crimes Against Children Task Force, and Homeland Security Investigations. Assistant U.S. Attorney Kelsey Blair is prosecuting the case. Joy was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 27, 2023.


title: Rapid City Man Sentenced to 14 Years in Prison for Possession with Intent  to Distribute a Controlled Substance

body_text: RAPID CITY - United States Attorney Alison J. Ramsdell announced that U.S. District Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance. The sentencing took place on April 17, 2023. Michael Wilson, 46, was sentenced to 14 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Wilson was indicted for Possession with Intent to Distribute a Controlled Substance by a federal grand jury in June of 2022. He pleaded guilty on January 20, 2023. On January 30, 2022, a South Dakota Highway Patrol Trooper observed Wilson traveling eastbound on Interstate 90, close to Spearfish, South Dakota. Wilson’s vehicle then slowed down, entered a median crossing and started traveling westbound toward Spearfish. When the trooper attempted to initiate a traffic stop, the vehicle fled and a pursuit ensued. The pursuit ended when Wilson crashed his car in a housing development and fled on foot. A search of the vehicle revealed over 1300 grams of methamphetamine, other illegal substances, and $11,400 in cash. The investigation showed that Wilson was the driver of the vehicle and he was later arrested. This case was investigated by the South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, Spearfish Police Department, Lawrence County Sheriff’s Office, Deadwood Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Gina S. Nelson prosecuted the case. Wilson was immediately remanded to the custody of the U.S. Marshals Service.


title: Gresham Man Sentenced to Federal Prison for Stealing Covid Relief Funds

body_text: PORTLAND, Ore.—A Gresham, Oregon man was sentenced to federal prison today for stealing more than $77,000 in funds intended to help small businesses during the COVID-19 pandemic. Justin Allen Cunningham, 41, was sentenced to 10 months in federal prison and three years’ supervised release. He was also ordered to pay $81,207 in restitution. According to court documents, in 2021, Cunningham learned about the opportunity to procure Paycheck Protection Program (PPP) loans guaranteed by the U.S. Small Business Administration (SBA) by submitting fraudulent loan applications on behalf of fake business entities. The PPP program, originally authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed by Congress in March 2020, provided emergency financial assistance to American employers suffering the economic effects of the COVID-19 pandemic and resulting shutdowns. To facilitate his scheme, Cunningham paid his friends for their help securing him a loan on behalf of a sole proprietorship he ran as a hobby: an online sneaker retailer called “JC shoe juice.” Cunningham obtained an employer identification number from the IRS and opened an online business bank account. He provided this information to a friend who created bogus tax returns for Cunningham’s company and submitted a PPP loan application on his behalf. The loan application falsely claimed that JC shoe juice had operated since 2015, had six employees, and generated more than $460,000 in gross income in 2019. As a result of these false representations, Cunningham was issued a loan worth more than $77,000. On January 21, 2022, a federal grand jury in Portland returned an indictment charging Cunningham with one count of wire fraud. On October 14, 2022, he pleaded guilty to the single charge. This case was investigated by the U.S. Treasury Inspector General for Tax Administration (TIGTA), the SBA Office of Inspector General, and the FBI. Assistant U.S. Attorneys Ryan W. Bounds and Meredith D.M. Bateman prosecuted the case. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .


title: Fremont County Man Arraigned on Four Counts of Assault

component: Federal Bureau of Investigation (FBI)

body_text: Darrell Lyle Moss Jr., age 40, of Fremont County, Wyoming, appeared for arraignment on May 2, 2023, before Senior United States District Court Judge Nancy Freudenthal. Moss pleaded not guilty to two counts of assault with a dangerous weapon with intent to do bodily harm and two counts of assault resulting in serious bodily injury. A trial has been set for June 26, 2023. If convicted on all counts, Moss faces up to 40 years’ imprisonment with three years of supervised release, up to a $1,000,000 fine, and a $400 special assessment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. This crime is being investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Kerry J. Jacobson. An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty. Case No. 23-CR-00033-NDF


title: Cheyenne Man Sentenced for Being a Felon in Possession of an Illegal Firearm

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

body_text: Michael Langley, age 26, of Cheyenne, Wyoming, was sentenced to 51 months in prison for being a felon in possession of a firearm. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence, which also included three years of supervised release and a $100 special assessment, on May 2, 2023. According to court documents, on October 10, 2022, Langley was a passenger in a vehicle and fired several shots from a semiautomatic pistol at another vehicle while traveling through Cheyenne. At the time, Langley was a convicted felon who was prohibited from possessing a firearm. Langley pled guilty to unlawfully possessing the pistol, which had an obliterated serial number. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Cheyenne Police Department investigated the crime. Assistant U.S. Attorney Jonathan C. Coppom prosecuted the case. Case No. 22-CR-00133-SWS


title: Rochester Man Who Failed To Appear For Sentencing On Riot Charge Pleads Guilty

component: USAO - New York, Western

body_text: ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Christopher Tindal, 29, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to failure to appear, which carries a maximum penalty of five years in prison and a $250,000 fine. Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that while Tindal was awaiting sentencing on a riot charge, he was released with a Global Positioning Satellite (GPS) ankle bracelet and required to comply with other conditions of release, including appearing at all court proceedings as required. On March 28, 2022, without the permission of the Court, Tindal removed his GPS ankle bracelet and failed to appear for sentencing before Judge Siragusa on April 19, 2022. The plea is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, the Rochester Police Department, under the direction of Chief David Smith, and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter. Sentencing is scheduled for August 24, 2023, at 11:00 a.m. before Judge Siragusa. # # # #


title: Puerto Rican Man Pleads Guilty To Cocaine Charge

body_text: ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Michael Almonte Diaz, 30, of Puerto Rico, pleaded guilty to conspiracy to distribute cocaine, before U.S. District Judge Charles J. Siragusa. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine. Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that on August 2, 2022, Diaz and another individual were transporting approximately 504 grams of cocaine from Rochester, eastbound on Interstate 90. The New York State Police conducted a traffic stop of the vehicle in the area of Exit 41 in Seneca County. The cocaine was concealed in a birthday gift-wrapped package. Officers also recovered $18,511 in United States currency. The plea is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino and the New York State Police, under the direction of Major Brian Ratajczak. Sentencing is scheduled for August 8, 2023, at 9:15 a.m. before Judge Siragusa. # # # #


title: Prior Felon Pleads Guilty To Gun Charge

body_text: ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Tyree D. Washington, 40, of Rochester, NY, pleaded guilty to being a felon in possession of firearms before U.S. Magistrate Judge Mark W. Pedersen. The charge carries a maximum penalty of 15 years in prison and a $250,000 fine. Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that on November 26, 2022, New York State Police Troopers on patrol in Rochester attempted to stop Washington, who was operating a black BMW, for traffic violations, but Washington refused to stop. A vehicle pursuit ensued over several city streets and ended when Washington failed to stop at a stop sign and crashed into the front porch of a residence on South Plymouth Avenue in Rochester. After Washington was taken into custody, officers located two loaded pistols in the vehicle. In October 2009, Washington was convicted of a felony in Monroe County Court and is legally prohibited from possessing a firearm. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The plea is the result of an investigation by New York State Police, under the direction of Major Brian Ratajczak and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division. Sentencing is scheduled for July 28, 2023, at 2:00 p.m. before Judge David G. Larimer. # # # #


title: Bath Man Pleads Guilty To Meth Charge

body_text: ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Gerald Barclay, 25, of Bath, NY, pleaded guilty to possession with intent to distribute five grams or more of methamphetamine before U.S. District Judge Frank P. Geraci, Jr. The charge carries a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine. Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that on August 22, 2022, the New York State Police executed a search warrant at Barclay’s residence in Bath, seizing drug packaging materials, digital scales, and approximately $1,866 in United States currency inside the residence. Outside the residence, near a stack of tires next to the garage, investigators found approximately 195 grams of pure methamphetamine. The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division and the New York State Police, under the direction of Major Brian Ratajczak. Sentencing is scheduled for July 27, 2023, at 11:00 a.m. before Judge Geraci. # # # #


title: Portland Area Drug Trafficker Sentenced to 26 Years in Federal Prison for Role in Deadly Kidnapping of Washington State Man

body_text: PORTLAND, Ore.—A Mexican National residing in Marion County, Oregon was sentenced to federal prison today for his role in the 2019 kidnapping and murder of a Washington State man and other drug trafficking crimes. Marcos Alonso Castillo-Bernal, 48, was sentenced to 312 months in federal prison and 10 years’ supervised release. According to court documents, in 2018, the Portland Police Bureau (PPB) began investigating a Mexican drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine, heroin, cocaine, and counterfeit OxyContin in the Portland area. The DTO was an intermediate source of supply to other organizations in Portland, on the Oregon coast, and in the Olympia, Washington area. In January 2019, Castillo-Bernal assumed control of the DTO and, along with various co-conspirators, was directly responsible for distributing large quantities of the illegal drugs in and around Portland. From on or about April 9, 2019, until on or about April 13, 2019, Castillo-Bernal and others kidnapped, held hostage, and murdered Ricardo Corral-Moreno, of Olympia, Washington, and disposed of his body in a rural area near Molalla, Oregon. Castillo-Bernal and his co-conspirators targeted Corral-Moreno because of money he owed to Castillo-Bernal and others. Investigators identified ligature marks on Corral-Moreno’s wrists consistent with his having been tied up and determined he died of blunt force injuries to the back of his head. Castillo-Bernal’s DNA was also found on Corral-Moreno’s left cheek and ankle. On January 6, 2022, a superseding indictment was unsealed charging Castillo-Bernal with various drug trafficking crimes and for his role in Corral-Moreno’s kidnapping and murder. He made his initial appearance in federal court the same day. On January 18, 2023, Castillo-Bernal pleaded guilty to conspiring to possess with intent to distribute and distribute controlled substances, conspiring to commit kidnapping resulting in death, and illegally reentering the U.S. This case was investigated by the U.S. Drug Enforcement Administration, FBI, Portland Police Bureau, Clackamas County Sheriff’s Office, and Clackamas County Interagency Task Force (CCITF). It was prosecuted by the U.S. Attorney’s Office for the District of Oregon. This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. 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: Fredonia Man Arrested, Charged With Selling Drugs That Led To Overdose Death

body_text: BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that John Wallace Buchanan, 36, of Fredonia, NY, was arrested and charged by criminal complaint with distribution of fentanyl causing death, narcotics conspiracy, and possessing firearms in furtherance of drug trafficking crimes. The charges carry a mandatory minimum penalty of 25 years in prison and a maximum of life. Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that in the early morning hours of January 10, 2022, the Ellicott Police Department responded to a residence on Boulevard Avenue in Celoron, NY, for a death investigation. At the scene, law enforcement found an individual, identified as B.G., lying face down on the living room floor with signs of drug use nearby. The cause of death was listed as a potential overdose. A review of the contents of B.G.’s cell phone identified a Facebook Messenger conversation between B.G.’s Facebook account and the account of John Buchanan. Investigators subsequently identified multiple Facebook conversations, with B.G. wanting to purchase narcotic drugs from Buchanan, dating back to November of 2021, including a conversation just prior to B.G.’s death. Investigators also noted that following a review of Buchanan’s Facebook account, some messages between B.G. and Buchanan may have been deleted from Buchanan’s account. At the scene of B.G.’s death, officers recovered, among other things, ammunition and three firearms. Investigators learned that Buchanan was attempting to sell firearms to B.G. in December 2021. Investigators believe that B.G. and Buchanan also discussed firearms transactions in the conversation prior to B.G.'s death. Buchanan was ordered detained following a detention hearing before U.S. Magistrate Judge Michael J. Roemer. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF . The complaint is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the Chautauqua County Sheriff’s Office, under the direction of Sheriff James Quattrone, and the Ellicott Police Department, under the direction of Chief William Ohnmeiss Jr. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty. # # # #


title: California Man & Companies Charged with Defrauding Central Illinois Investors

component: Department of Justice

body_text: URBANA, Ill. – A federal grand jury returned an indictment on May 2, 2023, charging Brett Michael Bartlett, 37, of the 9000 block of Grackle Ave., Fountain Valley, California, and his companies, Dynasty Toys, Inc., and 7M E-group Corporation, with wire fraud, mail fraud, securities fraud, and money laundering. The indictment alleges that Bartlett and his California-based companies, Dynasty Toys, and 7M E-group, devised a scheme to defraud investors and obtain their money by making materially false and fraudulent pretenses, representations, and promises. According to the indictment, Bartlett, thorough Dynasty Toys and 7M E-group, purchased items at liquidation sales and resold those items online, especially through Amazon. Bartlett solicited and accepted money from Central Illinois investors, first to purchase inventory to be resold by 7M E-group at promised annual returns of 20% to 40% and later to purchase Dynasty Toys’ preferred stock shares, which Bartlett claimed were expected to double in value. According to the indictment, Bartlett induced investors to invest by dramatically overstating the success of the companies and the returns that the companies generated for investors, lying about the companies’ assets, failing to disclose the companies’ struggles even while continuing to solicit investments, and using investors’ funds for Bartlett’s own benefit. For example, Bartlett falsely told investors their existing shares were worth approximately $30 million in total, that Dynasty Toys owned hundreds of millions of dollars of gold assets, and that another company was going to purchase Dynasty Toys for $120 million. As a result, approximately 1,000 individuals, including over 50 investors from Central Illinois, invested over $20 million with Bartlett, 7M E-group, and Dynasty Toys. According to the indictment, in May of 2020, Bartlett mailed to Central Illinois investors checks totaling millions of dollars, but the checks bounced. The indictment alleges that investors lost approximately $22.5 million as a result of Bartlett’s and his companies’ fraud. Bartlett, Dynasty Toys, and 7M E-group are scheduled to appear before United States Magistrate Judge Eric I. Long in Urbana, Illinois on June 1, 2023, at 2 p.m. for arraignment on the charges. A trial date will be set at that time. If convicted, Bartlett faces a penalty of up to twenty years in prison on each fraud charge and a penalty of up to ten years in prison on the money laundering charge. Bartlett also faces a penalty of up to three years of supervised release on each charge. The charges also carry maximum fines of up to $6.25 million for Bartlett and up to $27.5 million for the corporations. The charges are the result of an investigation by the Federal Bureau of Investigation, Springfield Field Office, and the Federal Deposit Insurance Corporation – Office of Inspector General. Supervisory Assistant U.S. Attorney Eugene L. Miller is representing the government in the prosecution. In a parallel investigation, the Securities and Exchange Commission filed on the same date as the indictment a civil complaint against Bartlett, 7M E-group Corp., Dynasty Toys, Inc., and other defendants in the United States District Court in the Central District of California seeking a civil judgment against them. Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.


title: Former ILWU Officer Sentenced to 24 Months in Prison for Embezzlement from Union Over 4.5-Year Period

component: USAO - Hawaii

body_text: HONOLULU – Charles Kimo Brown, 64, of Mililani, was sentenced today in federal court by United States District Judge Leslie E. Kobayashi to 24 months of imprisonment, a fine of $96,000, a forfeiture money judgment of $1,425.01, and three years of supervised release for embezzling $96,000 while he was the Secretary-Treasurer of the Hawaii Longshore Division of the International Longshore and Warehouse Union Local 142. According to information presented to the court, as the former Secretary-Treasurer of the Hawaii Longshore Division, Brown was paid according to vouchers that he submitted to the accounting department of Local 142. The hours Brown was supposed to list on the vouchers were based upon the “lost time” that he could have worked for his employer, McCabe, Hamilton & Renny Co., Ltd., where he worked as a machine operator. This was an “honor system” which depended upon the honesty of the defendant and other union officers to accurately report the number of hours they could have worked for their employers instead of working for the union. While Brown was charged with submitting two false wage vouchers that resulted in him embezzling $1,425.01, the prosecution argued during the trial, and in sentencing, that he should be held accountable for all of the false vouchers that he submitted while acting as Secretary-Treasurer of the union, including 384 false entries, with a total embezzlement of $96,000 during a span of 4.5 years. Judge Kobayashi agreed and sentenced him to a term of imprisonment of 24 months and a fine of $96,000. In sentencing Brown, Judge Kobayashi stated that she was “troubled” by the facts that the defendant had breached the trust his fellow union members had given him by stealing $96,000 from them during a long, 4.5-year period. While she recognized that there were a number of mitigating factors, and she took them into account, she found that a sentence of 24 months was necessary to reflect the seriousness of the defendant’s crimes and to deter others from committing similar ones. The case resulted from an investigation by the Department of Labor and the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Marshall Silverberg and Special Assistant U.S. Attorney Nicole Hudspeth handled the prosecution.


title: Three MS-13 Gang Members Convicted of Racketeering and Violent Crime Conspiracy

body_text: A federal jury convicted three La Mara Salvatrucha, or MS-13, members yesterday of RICO conspiracy, murder in aid of racketeering, attempted murder in aid of racketeering, drug trafficking, and destruction of evidence. According to court documents and evidence presented at trial, from 2014 until 2021, Jorge Flores, 30, aka Peluche, Kevin Tidwell, 29, aka Miklo, both of Nashville, Tennessee; and Jose Pineda-Caceres, 24, aka Demente, a Honduran national, were members of MS-13. MS-13 is a national and transnational gang composed largely of individuals of Salvadoran or Central American descent. Branches or “cliques” of MS-13 operate throughout the United States. MS-13 dedicates its members to preserving and protecting the power, territory, reputation, and profits of the gang through the use of intimidation and violence, including murder and promoting the gang through acts of murder, robbery, drug trafficking, and other criminal activities. MS-13 members are required to follow various rules, chief among them being that cooperation with law enforcement is strictly prohibited, and it is understood within the gang that anyone who assists police will be punished with death. Members are also required to confront, fight, and/or kill rival gang members and to retaliate quickly and viciously against anyone who disrespects or threatens the gang’s authority, power, reputation, or control of a neighborhood. By committing murders, the defendants gained entrance into MS-13 or earned respect among the other members. On April 6, 2016, Pineda-Caceres, along with several other MS-13 members and associates, murdered a victim because they believed the victim was a rival gang member. Pineda-Caceres lured the victim to a field where he and other members and associates shot the victim to gain entrance into MS-13. On July 31, 2016, Pineda-Caceres also murdered another victim. After leaving a nightclub in Nashville, Pineda-Caceres followed the victim’s car and, while attempting to kill the victim’s brother, shot and killed the victim. In addition, Tidwell and Flores murdered a victim on May 21, 2017, outside of a bar in Nashville because they believed the victim was associated with a rival gang. Tidwell and Flores shot the victim 11 times while the victim was sitting in the victim’s car. Tidwell and Flores also shot and killed a victim on May 27, 2017, because the victim insulted MS-13. They chased down the victim’s car and shot the victim while the victim attempted to flee. On Sept. 24, 2017, Flores murdered a victim and other MS-13 members and associates lured the victim to a secluded location in Nashville, shot the victim, and placed the victim’s body in the trunk of a car. Flores then burned the car with the victim’s body in the trunk in Cheatham County, Tennessee. The defendants were convicted of RICO conspiracy, five murders, multiple attempted murders in aid of racketeering, conspiracies to commit murder in aid of racketeering, firearms offenses, tampering with evidence, and drug distribution. They will be sentenced at a later date and each face a mandatory minimum sentence of life in prison. The three trial defendants were among the nine defendants charged in the indictment. The other six defendants previously pleaded guilty to RICO conspiracy and related offenses, as follows: Carlos Ochoa, 33, of Nashville, Tennessee Jason Sandoval, 37, of Nashville, Tennessee Gerson Serrano-Ramirez, 35, of El Salvador Franklin Hernandez, 23, of Honduras Juan Melendez, 24, of El Salvador Luis Colindres, 26, of Honduras As part of this multi-year investigation, MS-13 members and associates were also convicted of five additional murders that occurred between 2016 and 2017 in the Nashville area. Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Acting U.S. Attorney Thomas J. Jaworski for the Middle District of Tennessee, Special Agent in Charge Marcus Watson of the ATF Nashville Field Division, Special Agent in Charge Rana Saoud of Homeland Security Investigations (HSI) Nashville, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, U.S. Marshal for the District of Tennessee Denny King, Metropolitan Nashville Police Chief John Drake, and Director David Rausch of the Tennessee Bureau of Investigation made the announcement. The ATF, HSI, DEA, U.S. Marshals Service, Metropolitan Nashville Police Department, and Tennessee Bureau of Investigation investigated the case. Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Ahmed Safeeullah and Brooke Farzad for the Middle District of Tennessee are prosecuting this case. This prosecution is part of an Organized Crime Drug Enforcement Task Force’s (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: Ship’s Operator, Captain, and Chief Engineer Admit to Environmental Crimes Aboard a Rhode Island-Bound Oil Tanker

component: USAO - Rhode Island

body_text: PROVIDENCE –The Greek company that owned and operated the Galissas : a tanker carrying diesel oil from Rotterdam, the Netherlands, to Providence, RI, in February 2022, pled guilty in U.S. District Court in Rhode Island to federal environmental crimes carried out by its captain and chief engineer. In addition, the vessel’s captain pled guilty to failing to report a hazardous condition in the vessel’s cargo tanks to the United States Coast Guard prior to the tanker entering the port of Newport, Rhode Island. The vessel’s chief engineer pled guilty to knowingly discharging untreated oily bilge water directly from the tanker into the sea during the transatlantic voyage. During proceedings in U.S. District Court in Providence, Zeus Lines Management S.A., (Zeus) owner/operator of the Gallissas , admitted violating The Ports and Waterways Safety Act and The Act to Prevent Pollution from Ships. The Galissas ’ captain Jose Ervin Mahinge Porquez, a resident of the Philippines, admitted to violating The Ports and Waterways Safety Act. The Galissas ’ Chief Engineer Roberto Cayabyab Penaflor, also a resident of the Philippines, admitted violating the Act to Prevent Pollution from Ships. Under the terms of the plea agreement Zeus will pay a total monetary penalty of $2.25 million, consisting of a fine of $1,687,500 and a community service payment of $562,500. The community service payment will go to the National Fish and Wildlife Foundation to fund projects to benefit marine and coastal natural resources located in the State of Rhode Island. Additionally, Zeus will serve a four-year term of probation, during which any vessels operated by the company and calling on U.S. ports will be required to implement a robust environmental compliance plan. “A critical mission of this office is protecting our environment from pollution and polluters, whether they impact our neighborhoods or precious natural resources like the Narragansett Bay, one of the crown jewels of Rhode Island,” said United States Attorney for the District of Rhode Island Zachary A. Cunha. “In this case, a foreign company decided it could ignore its obligation under American law, putting our waters and coastal communities at risk. Today’s guilty pleas are a reminder that this Office will enforce our environmental laws to hold violators – individuals and corporate – accountable and protect our vital natural resources and our citizenry.” “This prosecution demonstrates our commitment to ensuring the health and safety of the marine environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The reckless actions of these defendants not only threatened the marine environment, but also the safety of this coastal community. The Department of Justice will continue to work with our partner agencies to ensure those who pollute and endanger our coastal communities are held fully accountable.” “This case demonstrates the U.S. government’s resolve to ensure the safety of life at sea and protect our ports from rogue and negligent actors,” said Rear Adm. John Mauger, Commander of the First Coast Guard District. “Everyday thousands of ships safely call on U.S. ports and handle nearly 95% of US trade that drives our economy and provides for our national security. By sailing into a major U.S. port with a known faulty inert gas generator, the operator, and senior officers of the Galissas endangered not only their shipmates but also the people of Rhode Island. The Coast Guard will continue to train and deploy our vessel examiners to protect mariners and our nations ports by deterring and detecting unsafe and illegal activity. We appreciate the strong resolve from DOJ in holding these rogue actors accountable.” According to information presented in court, while the Galissas was conducting cargo operations in Rotterdam, the Netherlands in February 2022, crew members became aware that the vessel’s inert gas system became inoperable. The inert gas system is necessary to ensure that oxygen levels within the vessel’s cargo tanks remain at safe levels and do not pose a hazardous condition. Rather than remaining in Rotterdam until the inert gas system could be repaired, Zeus and the ship’s captain, Porquez, decided to instead sail to the United States, where a spare part would be delivered upon the vessel’s arrival. On February 11, 2022, while crossing the Atlantic, Porquez submitted a “Notice of Arrival” to the U.S. Coast Guard which failed to report the hazardous condition. On February 15, 2022, the Coast Guard sent an email in preparation for inspection which inquired about the vessel’s inert gas system. Porquez responded to the email but did not disclose the inoperable inert gas system. Upon arrival off the coast of Rhode Island February 19, 2022, the vessel embarked a local ship’s pilot to sail the vessel closer to shore and take delivery of the spare part. Although the crew installed the spare part, the inert gas system remained inoperable. Porquez failed to report to the Coast Guard the hazardous condition that the vessel’s inert gas system was inoperable while the tanks were not gas free. The following day, February 20, the U.S. Coast Guard boarded the Galissas to conduct an inspection. Only then did Porquez inform the Coast Guard that the inert gas system was inoperable. The Coast Guard immediately took measurements of the oxygen levels within the vessel’s cargo tanks, which were registered more than double the maximum allowable levels. The Coast Guard then ordered that the vessel be moved further offshore so as to not endanger the port of Newport, Rhode Island. Zeus’ Operations Manager directed Porquez to create a logbook showing oxygen levels during the transatlantic voyage. Porquez had a logbook created that falsely indicated the cargo tanks were at safe oxygen levels when the vessel left the Netherlands and remained at safe levels during the majority of the vessel’s transit of the Atlantic Ocean. In reality, the crew had not taken any readings of the oxygen levels in the cargo tanks during the vessel’s voyage. Porquez had tasked the vessel’s Chief Officer with creating this fraudulent logbook that was then presented to the U.S. Coast Guard during its inspection. Additionally, Zeus and chief engineer Penaflor admitted that throughout the transatlantic voyage, oily bilge water was illegally dumped from the Galissas directly into the ocean without being properly processed through required pollution prevention equipment. Oily bilge water typically contains oil contamination from the operation and cleaning of machinery on the vessel. They also admitted that these illegal discharges were not recorded in the vessel’s oil record book as required by law. Specifically, on three separate occasions between November 2021 and February 2022, Penaflor ordered crew members working for him in the engine room to discharge a total of approximately 9,544 gallons of oily bilge water from the vessel’s bilge holding tank directly into the ocean using the vessel’s emergency fire pump, bypassing the vessel’s required pollution prevention equipment. In addition, in preparation for the U.S. Coast Guard’s inspection of the Galissas, Penaflor instructed crew members on several occasions to not tell the Coast Guard about bypassing the pollution prevention equipment resulting in illegal discharges. A sentencing hearing in this matter is scheduled to be held on August 8, 2023. The defendants’ sentences will be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and other statutory factors. Senior Trial Attorney Stephen Da Ponte of the Department of Justice’s Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney John P. McAdams for the District of Rhode Island are prosecuting the case with assistance from Lieutenant Commander Paul J. Milliken from the U.S. Coast Guard District One Legal Office. The U.S. Coast Guard Sector Southeastern New England and the U.S. Coast Guard Investigative Service investigated the case. ###


title: The United States Attorney for Puerto Rico, FBI San Juan, and HHS-OIG Announce Redoubling and Focus of Investigative Efforts to Detect and Deter Fraud, Waste, and Abuse of Medicare Funds

component: Civil Division

body_text: SAN JUAN, Puerto Rico – The United States Attorney for the District of Puerto Rico, W. Stephen Muldrow, the Special Agent in Charge (SAC) of the San Juan Office of the Federal Bureau of Investigation (FBI), Joseph González, and the Assistant Special Agent in Charge (ASAC) of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), José Luis Soto, are redoubling efforts and focus to investigate, detect, and deter Medicare fraud. According to estimates from the National Health Care Anti-Fraud Association, Medicare fraud costs taxpayers over $100 billion a year in a wide range of fraud schemes that involve beneficiaries, health care providers, and organizations operating Medicare Advantage (Medicare Part C) plans. All Medicare beneficiaries in Puerto Rico, as well as the doctors and other healthcare providers who serve those beneficiaries, deserve an affordable, effective, efficient, and transparent health care system. “Typical fraud schemes committed in the health care area include cases where healthcare providers bill for services not actually provided or lie about and inflate the nature of the actual services rendered (known as “upcoding”). However, together with our law enforcement partners, our investigative and prosecutorial focus will continue to look to any fraudulent activities occurring within organizations managing Medicare Advantage programs, including payments of illegal incentives and the submission of false information related to patient risk assessments,” said United States Attorney Muldrow. “Healthcare is a basic need and improper use of healthcare systems can turn this basic necessity into a luxury,” said Special Agent in Charge of the FBI San Juan Field Office, Joseph González. “The FBI will not stand by while this type of abuse is taking place. We ask that anyone who believes they have been a victim or witness to a healthcare fraud scheme to report it by calling the FBI San Juan number 787-987-6500 or leave a tip online through tips.FBI.gov. The people can rest assured that we will follow each lead and investigate each case to its ultimate consequence.” ASAC José Luis Soto of the HHS-OIG Puerto Rico Field Office said, “HHS-OIG will continue to investigate any conduct by Medicare Advantage plans that may result in violation of federal law and will work jointly with our law enforcement partners to ensure that entities that execute business with federal health care programs do so in an honest manner.” What can you do? Please contact the FBI and HHS-OIG hotlines below to provide information and leads of any fraud scheme concerning Medicare funds. Such fraud schemes include but are not limited to: billing for services that are not provided, billing for more expensive services than were actually provided, also known as “upcoding”, fraudulent attempts to tamper with patient risk factors or providing incentives to undergo medical testing or procedures that are not medically necessary. Hotline Contacts: HHS-OIG Email: nycoifosanjuan@oig.hhs.gov HHS-OIG Telephone: 787-758-3752 FBI tips online: tips.FBI.gov FBI Telephone: 787-987-6500 Public media complaints: https://m.facebook.com/wkaq580/videos/898068291246958/ ###


title: California Man Pleads Guilty to Trafficking Fentanyl into Texas

component: USAO - Texas, Western

body_text: PECOS, Texas – A California man pleaded guilty Tuesday in a federal court in Pecos to possession with intent to distribute 400 grams or more of a mixture or substance containing a detectable amount of fentanyl. According to court documents, the Texas Department of Public Safety’s (DPS) Criminal Investigations Division (CID) intercepted a known drug conspiracy occurring in the Pecos area. DPS CID requested U.S. Border Patrol’s assistance to seize suspected fentanyl in a controlled environment. On Feb. 23 at the USBP checkpoint in Sierra Blanca, a USBP canine alerted agents to search the vehicle driven by Edgar Jesus Castillo, 26, of Palmdale, California. During an inspection, agents located an unmarked envelope in the trunk of the vehicle containing a vacuum-sealed bag full of a compressed white powder. The powder tested positive for fentanyl. Castillo had obtained the 1.005 kilograms of fentanyl in California and was transporting it to Pecos, where he intended to rent a hotel room and meet with a customer traveling from Houston. Castillo faces a penalty of 10 years to life in prison with a maximum fine of $10 million. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement. The Texas Department of Public Safety, USBP and Homeland Security Investigations are investigating the case. Assistant U.S. Attorney Matthew Ellis is prosecuting the case. ###


title: Queens Woman Charged With Fraudulently Obtaining Government Funds

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, John Gay, the Inspector General of the Port Authority of New York and New Jersey, Office of Inspector General (“PA-OIG”), Jonathan Mellone, the Special Agent in Charge of the Northeast Region of the U.S. Department of Labor, Office of Inspector General (“DOL-OIG”), and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the unsealing of a Complaint charging JASMIN GADSON, an employee of the Port Authority of New York and New Jersey, with wire fraud and theft of government funds for submitting fraudulent applications to obtain unemployment insurance benefits from the New York State Department of Labor at the height of the COVID-19 pandemic in 2020 and 2021. During that period, GADSON also allegedly submitted fraudulent applications for loans under the United States Small Business Administration’s (“SBA”) Paycheck Protection Program (“PPP”). GADSON was arrested this morning and will be presented this afternoon before U.S. Magistrate Judge Stewart D. Aaron in Manhattan federal court. U.S. Attorney Damian Williams said: “Jasmin Gadson, an employee of the Port Authority of New York and New Jersey, allegedly stole government funds intended to help those who were struggling as a result of a national emergency. This Office will continue to prosecute those who used the COVID-19 pandemic as an opportunity to line their pockets with fraudulently obtained taxpayer money.” PA-OIG Inspector General John Gay said: “We are appalled that a toll collector, on her own time, allegedly filed for fraudulent government benefits.” DOL-OIG Special Agent in Charge Jonathan Mellone said: “An important part of the mission of the U.S. Department of Labor, Office of Inspector General is to investigate allegations of fraud related to Pandemic unemployment insurance programs. We will continue to work with our law enforcement partners to investigate these types of allegations.” HSI Special Agent in Charge Ivan J. Arvelo said: “As alleged, Jasmin Gadson not only fraudulently claimed unemployment benefits while actively employed by the Port Authority of New York and New Jersey, but this defendant also defrauded a program intended to assist hardworking Americans who were financially impacted due to the unprecedented COVID-19 health crisis. HSI will not abide those who engage in theft of federal funds destined to help the financially vulnerable. I am extremely grateful to our partners at the Port Authority of NY/NJ, Office of the Inspector General and the U.S. Department of Labor, Office of the Inspector General, as well as HSI New York’s Document & Benefit Fraud Task Force for uncovering and investigating Gadson’s criminal scheme that allegedly defrauded U.S. taxpayers out of $78,000.” According to the Complaint unsealed today in Manhattan federal court and publicly available information: [1] JASMIN GADSON is currently employed by the Port Authority of New York and New Jersey, where she has worked since 2015. Beginning in the summer of 2020 through the fall of 2021, she submitted fraudulent applications for unemployment insurance benefits to the New York State Department of Labor and fraudulent applications for PPP loans to the SBA. In support of her fraudulent unemployment insurance applications, GADSON falsely claimed, in an initial application and weekly verifications, that the last date that she worked was during the onset of the COVID-19 pandemic in March 2020. At all times from March 2020 through the present, GADSON was employed by the Port Authority of New York and New Jersey and received salary or paid sick leave or was on unpaid protected parental leave. During that period, she received full health benefits and was not eligible for unemployment insurance benefits. In addition, GADSON falsely claimed five-figure net revenues for a business that did not exist in support of her fraudulent PPP loan applications. Between both of these schemes, GADSON stole more than $78,000 from the New York State Department of Labor, the SBA, and financial institutions that issued SBA-guaranteed loans. * * * JASMIN GADSON, 29, of Queens, New York, is charged with wire fraud, which carries a maximum penalty of 20 years in prison, and theft of government funds, which carries a maximum penalty of 10 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Williams praised the outstanding investigative work of the PA-OIG, the DOL-OIG, and HSI. The investigation was conducted by HSI’s Document and Benefit Fraud Task Force (“DBFTF”), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes. The case is being prosecuted by the Office’s General Crimes Unit. Assistant U.S. Attorney Amanda C. Weingarten is in charge of the prosecution. The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the Complaint and the descriptions of the Complaint set forth herein constitutes only allegations, and every fact described should be treated as an allegation.


title: Tallahassee Couple Sentenced To Federal Prison For Wire Fraud Conspiracy, Money Laundering Conspiracy, And Making False Statements Relating To COVID-19 Relief Programs

component: USAO - Florida, Northern

body_text: TALLAHASSEE, FLORIDA – Wilbert Jean Stanley, III, 43, and Felicia Jackson Stanley, 43, both of Tallahassee, Florida, were sentenced, after previously pleading guilty to one count each of wire fraud conspiracy, money laundering conspiracy, and making false statements in connection to COVID-19 pandemic relief. Wilbert Stanley was sentenced to 40 months in federal prison, and Felicia Stanley was sentenced to 24 months in prison. Jason R. Coody, United States Attorney for the Northern District of Florida announced the sentences. “The theft of any amount of taxpayer funds is inexcusable but stealing over $4.8 million dollars from honest, hardworking Americans truly in need of pandemic relief is simply abhorrent,” said U.S. Attorney Coody. “Today’s sentences both punish the defendants’ criminal conduct and should serve as a significant deterrent to others who would steal from their fellow citizens to unlawfully enrich themselves. With our law enforcement partners, we remain committed to investigating and vigorously prosecuting those who engage in acts of covid-related fraud.” Court documents reflect that between March 1, 2020, and September 1, 2021, the Stanleys made false and fraudulent representations in applications to the Small Business Administration (SBA), financial institutions, and other lenders, for three different federal COVID-19 relief programs: Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDLs), and Shuttered Venue Operators Grants (SVOGs). The false representations included inflated average monthly payroll expenses and the use of false tax forms as supporting documentation. The Stanleys submitted a total of 166 false and fraudulent EIDL applications, of which 50 were funded, in their names for businesses that they owned and in the names of other individuals (whom they recruited). The Stanleys also submitted 20 false and fraudulent PPP loan applications, and 3 false and fraudulent SVOG applications in their names for businesses that they owned and in the names of other individuals (whom they recruited). For most of the applications that the Stanleys submitted (which were not in their names), the Stanleys had an arrangement with the named applicants to receive a kickback from the named applicants, which was paid from the PPP, EIDL, and SVOG proceeds. “Diverting federal funds intended to provide critical relief from the effects of a pandemic steals resources from those who need it most,” said Brian Payne IRS-CI Special Agent in Charge. “These sentences reinforce our commitment to stopping criminals so every American taxpayer can maintain confidence in our system of taxation.” “These sentences bring justice to the defendants who fraudulently obtained millions from Federal programs that were created to provide assistance to businesses struggling during the COVID-19 pandemic,” said Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “The FDIC-OIG will continue to work with our law enforcement partners to hold those accountable who steal from such programs and threaten to undermine the integrity of the banking system.” In total, through their false applications for federal COVID-19 relief funds, the Stanleys attempted to obtain over $7 million for themselves and others, to which they were not entitled. The Stanleys were successful in fraudulently obtaining over $4.8 million in such funds. Additionally, the Stanleys engaged in multiple monetary transactions that involved at least $10,000 of fraudulently obtained PPP loan, EIDL, or SVOG proceeds that they obtained through their scheme. Many of these transactions included payments for the purchase of real estate and to invest in virtual currency. “These sentences demonstrate that those that steal taxpayer dollars will face the consequences for their actions,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka Brathwaite-McCall. “I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.” The Stanleys’ imprisonment will be followed by 3 years of supervised release. Additionally, the Stanleys were ordered to pay restitution to the SBA in the amount of $2,802,690.76, and the Court entered an order of forfeiture with respect to several parcels of real property and accounts at financial institutions. This case was investigated by the Internal Revenue Service-Criminal Investigation, Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), Treasury Inspector General for Tax Administration (TIGTA), and the U.S. Small Business Administration-Office of Inspector General (SBA-OIG. Assistant United States Attorney Justin M. Keen prosecuted the case. This case was prosecuted as part the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act relief programs. The CARES Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One of the two programs that were developed through CARES Act is the PPP. It provides funding to businesses through PPP loans for payroll costs, interest on mortgages, rent and utilities. PPP allows the interest and principal on loans to be forgiven if the business spends proceeds on certain expense items within a designated time and uses a certain percentage of the loan on payroll expenses. The SVOG program was established by the Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act, and amended by the American Rescue Plan Act. The program included over $16 billion in grants to shuttered venues, to be administered by SBA. The SVOG program’s mission is to support the ongoing operations of eligible live venues and operators, live venue promoters, theatrical producers, talent representatives, live performing arts organization operators, museums, and motion picture theaters during the uncertain economic conditions caused by the COVID-19 pandemic. The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the crisis. The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html .


title: Network of Transnational Fraudsters Indicted for Racketeering in Scheme to Steal Millions from American Consumers’ Bank Accounts

body_text: A federal grand jury in Los Angeles has returned an indictment charging 14 defendants for their participation in a years-long scheme to steal millions of dollars from American consumers’ bank accounts, the Justice Department announced today. According to court documents, Edward Courdy, 73, of Hawaiian Gardens, California; Linden Fellerman, 67, of Las Vegas; Guy Benoit, 68, of Cyprus; Steven Kennedy, 54, of Canada; Sayyid Quadri, of Canada; Ahmad Shoaib, 63, of Canada; John Beebe, 52, of Honolulu; Michael Young, 41, of Hollywood, Florida; Lance Johnson, 52, of Laveen, Arizona; Jenny Sullivan, 46, of Denver; Veronica Crosswell, 35, of Long Beach, California; Eric Bauer, 65, of Huntington Beach, California; Randy Grabeel, 71, of Pittsburg, California; and Debra Vogel, 68, of Las Vegas, were members and associates of a racketeering enterprise that unlawfully debited money from the bank accounts of unknowing U.S. consumer-victims. Through various members and associates, the enterprise obtained identifying and banking information for victims, and created shell entities that claimed to offer products or services, such as cloud storage. The enterprise then executed unauthorized debits against victims’ bank accounts, which it falsely represented to banks were authorized by the victims. Some of the unauthorized debits resulted in returned transactions, which generated high return rates. To both conceal and continue conducting unauthorized debits, the enterprise’s shell entities also generated “micro debits” against other bank accounts controlled and funded by or for the enterprise. The micro debits artificially lowered shell entities’ return rates to levels that conspirators believed would reduce bank scrutiny and lessen potential negative impact on the enterprise’s banking relations. Co-conspirator Harold Sobel was previously convicted for his role in the scheme in Las Vegas federal court and sentenced to 42 months in prison. In a related civil case also filed in Los Angeles federal court, injunctive relief and settlements totaling nearly $5 million were obtained against various persons, including several who are charged in this criminal indictment. “The scheme alleged in the indictment involved an elaborate plot to reach into consumers’ bank accounts and steal their hard-earned savings,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will use all of the tools at its disposal to prosecute such schemes.” “This sophisticated scheme allegedly generated millions of dollars in revenue by stealing consumers’ personal information and then using that information to fraudulently reach straight into the bank accounts of thousands of Americans,” said U.S. Attorney Martin Estrada for the Central District of California. “The indictment alleges that an international network of fraudsters engaged in a wide-ranging ring which sought to victimize consumers while concealing their activities from banks and law enforcement authorities. Thanks to law enforcement, the defendants’ alleged efforts to continue this scheme have failed.” “The U.S. Postal Inspection Service (USPIS) is committed to protecting the U.S. Postal Service and its customers, the American people,” said Inspector in Charge Eric Shen of the USPIS Criminal Investigations Group. “This case is illustrative of our efforts to protect American consumers from a sophisticated fraud scheme that cost American consumers millions of dollars. Postal Inspectors are proud to partner with the Department of Justice to put a stop to these types of schemes.” Courdy, Fellerman, Benoit, Kennedy, Quadri, Shoaib, Beebe, Young, Johnson, Sullivan, Crosswell, and Bauer are charged with racketeering conspiracy and wire fraud; Grabeel and Vogel are charged with racketeering conspiracy. Some defendants made their initial court appearances yesterday. If convicted, each defendant faces a maximum penalty of 20 years in prison for racketeering conspiracy and, if applicable, 30 years in prison for each count of wire fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The department urges individuals to be on the lookout for unauthorized debits to their accounts. Regularly check your bank, credit card, and other financial statements and contact your financial institution if you see a charge you do not recognize. Report any fraudulent debit you identify to law enforcement. Reports may be filed with the FTC at https://reportfraud.ftc.gov or at 877-FTC-HELP. The USPIS is investigating the case. Trial Attorneys Wei Xiang, Meredith Healy, and Amy Kaplan of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Monica Tait for the Central District of California are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Texas provided substantial assistance. The Consumer Protection Branch, in conjunction with the USPIS, is pursing wrongdoers who disguise the unlawful nature of business activities by, among other methods, artificially lowering financial account return rates. These tactics are designed to deceive banks, resulting in bank accounts remaining open and facilitating fraud schemes and other illegal activities, including schemes that debit consumers’ bank accounts without authorization, tech support scams, and subscription traps. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.