title: Justice Department Announces Extradition and Guilty Plea in Connection with International Fraud Scheme

component: Civil Division

body_text: One defendant pleaded guilty on March 27 in an international fraud scheme that preyed on elderly Americans, and the lead defendant in the case was extradited from Spain yesterday in connection with the same scheme. Ezennia Peter Neboh, 48, of Madrid, Spain, made his initial appearance in Miami today to face federal charges. Neboh, and his co-defendants, Kennedy Ikponmwosa, 51, and Prince Amos Okey Ezemma, 49, also of Madrid; and Iheanyichukwu Jonathan Abraham, 44, Emmanuel Samuel, 39, and Jerry Chucks Ozor, 43, of London, were previously charged in the Southern District of Florida with conspiracy to commit mail fraud as well as counts of mail fraud and wire fraud. Samuel pleaded guilty March 27 in Miami to conspiracy to commit mail and wire fraud. According to court documents, the defendants allegedly operated an inheritance fraud scheme. As part of that scheme, they sent personalized letters to elderly consumers in the United States over the course of more than five years. The letters falsely claimed that the sender was a representative of a bank in Spain and that the recipient was entitled to receive a multimillion-dollar inheritance left for the recipient by a family member who purportedly had died years before in Spain. According to the indictment, the defendants told a series of lies to consumers including that, before they could receive their purported inheritance, they were required to send money for delivery fees, taxes, and payments to avoid questioning from government authorities. The defendants collected money sent in response to the fraudulent letters through a complex web of U.S.-based former victims, whom the defendants convinced to receive money and forward to the defendants or persons associated with them. According to the indictment, victims who sent money never received any purported inheritance funds. “Schemes that prey on the elderly are particularly insidious,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice’s Consumer Protection Branch will pursue and prosecute transnational criminals who defraud U.S. consumers, wherever they are located. I thank the Kingdom of Spain, including the Spanish National Police and the Ministry of Justice, for their tireless efforts in assisting U.S. authorities to find and arrest these individuals so that they may face charges here in the United States.” “The U.S. Postal Inspection Service has a long tradition of protecting citizens from these types of schemes and bringing those responsible to justice,” said Postal Inspector in Charge Juan A. Vargas for the U.S. Postal Inspection Service (USPIS) Miami Division. “This extradition and guilty plea are a testament of the dedicated partnership between the Department of Justice’s Consumer Protection Branch, Homeland Security Investigations (HSI), and the U.S. Postal Inspection Service, to protect our citizens from these scams.” “We are one step closer to ensuring that those who conned elderly victims for pure financial greed are brought to justice,” said Special Agent in Charge Scott Brown of HSI Arizona. “The recent extradition of one defendant and the guilty plea of another defendant involved in this inheritance fraud scheme demonstrates the commitment of HSI and our law enforcement partners to target offenders wherever they may live and ensure that those offenders answer for their crimes.” According to court documents, Samuel admitted to defrauding over $6 million from more than 400 victims, many of whom he knew were elderly or otherwise vulnerable. He is scheduled to be sentenced by the Honorable Kathleen M. Williams on June 13, 2023, and faces a maximum penalty of 20 years’ imprisonment. The Consumer Protection Branch, USPIS, and HSI are investigating the case. Senior Trial Attorney Phil Toomajian and Trial Attorneys Josh Rothman and Brianna Gardner of the Justice Department’s Consumer Protection Branch are prosecuting the case. The Justice Department's Office of International Affairs, the U.S. Attorney’s Office for the Southern District of Florida, Europol, the Spanish National Police, the United Kingdom’s National Crime Agency, and the Portuguese Judicial Police all provided critical assistance. The Department urges individuals to be on the lookout for these types of schemes. An inheritance scam is a form of an imposter scam in which fraudsters pretend to be someone they are not, often a lawyer, banker, or foreign official. These fraudsters will try to get people excited about a large windfall and may use legitimate-looking legal documents as part of the scam. Be wary of unexpected contact from individuals offering a large inheritance. Do not send money or provide information to anyone you do not know. Seek advice from a trusted individual or an independent professional if you are in doubt. If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available. More information about the Department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at https://www.ovc.gov. An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Contractor and His Wife Charged with Bankruptcy Fraud, Money Laundering, and Wire Fraud

component: USAO - Rhode Island

body_text: PROVIDENCE – A North Kingstown self-employed contractor who “flipped houses,” and his wife, have both been charged in federal court with executing schemes to conceal substantial assets from the U.S. Bankruptcy Court in Providence, as well as money laundering and wire fraud, announced United States Attorney Zachary A. Cunha. Court documents allege that Ernest P. Ricci and his wife, Brenda L. Ricci, have been accruing large, outstanding debts to creditors and to the IRS dating back to 2004, and that they have engaged in conduct designed to evade their creditors since 2011. It is alleged that, in October 2017, Ernest Ricci filed a Chapter 7 Bankruptcy Petition to protect a $1.5 million dollar home in Florida that he and his wife used as both rental property and a vacation home. Bank records indicate that Ricci has failed to make any mortgage payments on the property since at least 2012. Ricci and his wife are alleged to have concealed assets and knowingly made false representations and omissions in filings with the U.S. Bankruptcy Court. Specifically, according to court documents, Ricci swore under oath that he had been unemployed for many years; that he had no income, no bank accounts, and no assets or properties other than the Florida home; and that he garnered no compensation of any kind from his wife’s company. In those bankruptcy filings, Ricci at first claimed liabilities in excess of $200,000,000 against assets of $1.3 million. He later amended his filings to claim liabilities of more than $2.3 million. In reality, however, it is alleged that Ricci, before filing for bankruptcy, Ricci transferred all the assets of his business: Premier Home Restoration LLC (Premier) in order to shield those assets from his creditors. While Ricci claimed in bankruptcy filings that, following the transfer of the company’s assets, he performed services for Premier without compensation, according to court documents, an investigation determined that, in fact, Ricci continued to control Premier, ran its day-to-day operations, and made use of company financial resources to maintain his lifestyle. Among other falsehoods, it is alleged that Ricci failed to truthfully disclose his monthly income; rental income from his Florida property and income from property he owned in New Hampshire; failed to disclose an actual Rolex watch as an asset (he allegedly went so far as to produce a fake watch for the Bankruptcy Trustee to examine); and failed to disclose ownership of a boat he was offering for sale as late as February 2023. Additionally, Ernest and Brenda Ricci allegedly falsely claimed, under oath, that Ernest Ricci held a $200,000 mortgage in the name of another person for the New Hampshire property that, in fact, he owned and for which he was collecting rent. It is further alleged that, after the Bankruptcy Trustee was declared to be the equitable owner of Premier, Ernest and Brenda Ricci fraudulently applied for COVID-related Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) from the Small Business Administration, supposedly to pay Premier employees and to company expenses. When filing, they failed to disclose that the Trustee was the owner of Premier, and that they were involved in bankruptcy proceedings. It is alleged that, after fraudulently obtaining the EDIL and PPP funds, Ernest and Brenda Ricci committed money laundering by conducting a series of financial transactions designed to conceal the location, ownership, and control of the PPP and EDIL proceeds, and to use those funds to purchase rental property in Warwick, RI, in the name of another person. Additionally, it is alleged that Ernest Ricci fraudulently applied for and received COVID-related unemployment benefits from the Rhode Island Department of Labor and Training at the same time he collected approximately $84,370 rental property income from his New Hampshire property. Court documents detail a number of alleged stalling tactics, frivolous pleadings, and fraudulent claims by Ernest Ricci, including claims that he was indigent, during the years’ long bankruptcy proceedings. Documents also detail numerous combative communications allegedly sent by Ernest to the bankruptcy Trustee, some laced with profanities. Ernest and Brenda Ricci were arrested by FBI agents on Friday and charged by way of federal criminal complaints filed by the United States Attorney’s Office. Ernest P. Ricci is charged with Bankruptcy Fraud; Wire Fraud; and Money Laundering; Brenda L. Ricci is charged with Aiding and Abetting Bankruptcy Fraud; Aiding and Abetting Concealment of Assets in Bankruptcy; Aiding and Abetting Wire Fraud; and Aiding and Abetting Money Laundering. The case is being prosecuted by Assistant U.S. Attorney John P. McAdams. The matter was investigated by the FBI, Internal Revenue Service Criminal Investigation, and the United States Bankruptcy Trustee. ###


title: Puerto Rican Man Sentenced To Over Thirteen Years In Prison For Drug Trafficking

component: USAO - Florida, Northern

body_text: GAINESVILLE, FLORIDA – Emmanuel Martinez Vega, 27, of Vega Baja, Puerto Rico, has been sentenced to serve more than thirteen years in federal prison followed by five years’ supervised release after previously pleading guilty to conspiracy to distribute more than five kilograms of cocaine. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida. “Our local, state, and federal law enforcement partners work tirelessly to keep us safe by removing addictive and deadly controlled substances from our communities,” said U.S. Attorney Coody. “This sentence demonstrates our commitment to support their efforts through the investigation and vigorous prosecution of criminals who would bring drugs into North Florida.” In May 2021, local investigators received information regarding a drug trafficker receiving large quantities of cocaine through the mail from Puerto Rico. The Drug Enforcement Administration and the United States Postal Inspection Service worked in concert with the local investigators to further identify the conspirators and establish a historical record of the cocaine-laded parcels being shipped to Gainesville from Puerto Rico. As a result of the combined investigative efforts, Vega was held accountable for trafficking approximately 129 kilograms of cocaine between 2018 and June 2022. Authorities were able to seize a total of 12 kilograms of cocaine and tens of thousands of dollars over the course of the investigation. “Ridding our communities of this poison and ensuring the safety and health of our citizens is one of DEA’s top priorities,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “The success of this investigation is a direct result of the tireless efforts of these dedicated investigators and highlights our continued commitment to working with our law enforcement partners to protect our Florida communities.” “We will continue to work with our partners to take deadly drugs off our streets,” said Miami Division U.S. Postal Inspection Service, Inspector in Charge Juan Vargas. “Preventing the use of the nation’s mail system for illegal activities or illicit gains is a primary focus of the U.S. Postal Inspection Service.” This case resulted from a joint investigation by the Drug Enforcement Administration and the United States Postal Inspection Service. Assistant United States Attorney Christopher M. Elsey prosecuted the case. 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: Matriarch Sentenced for Role in Violent Multimillion-Dollar Honduran Cocaine Trafficking Organization

component: Criminal Division

body_text: A Honduran woman was sentenced today to 20 years in prison for a large-scale conspiracy to traffic cocaine for importation into the United States. According to court documents, from 2006 until 2015, Erlinda Ramos-Bobadilla, aka Chinda, 62, served as a leader in the Montes-Bobadilla drug-trafficking organization, or Los Montes, one of the most significant drug-trafficking organizations operating in Honduras. The Los Montes drug-trafficking organization was based in the town of Francia on the northeastern coast of Honduras. There, the organization received clandestine maritime and air shipments of cocaine from sources in South America. Individual shipments of cocaine usually carried hundreds of – and sometimes more than a thousand – kilograms of cocaine. After receiving a shipment of cocaine, Los Montes worked with other drug traffickers to transport the cocaine inland through Honduras into Guatemala and, eventually, Mexico, where the cocaine would then be imported into, and distributed within, the United States. “Today’s sentencing reflects the Department of Justice’s commitment to holding traffickers like Ramos-Bobadilla accountable and dismantling the trafficking organizations they support,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The Criminal Division will continue to work tirelessly with our federal, state, and international partners to ensure that our communities are kept safe.” Ramos-Bobadilla played an active leadership role in Los Montes. Among other responsibilities, she participated in the negotiation of cocaine transactions with other drug traffickers in Central and South America, managed the proceeds that the organization made from the sale of cocaine and, at times, paid sources of supply for cocaine that Los Montes purchased. Ramos-Bobadilla employed armed individuals to work at her direction and control, including by providing security for her and her cocaine shipments. “The defendant and her family lead a dangerous drug cartel that brought thousands of kilograms of poisonous drugs into the United States from Honduras and left murder, corruption, violence, and terror in its wake. EDVA prioritizes the investigation, dismantling, and prosecution of organizations like The Los Montes cartel that destroy communities across nations,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “Today’s sentence would not have been possible without the coordinated efforts of our prosecutors and law enforcement partners who work tirelessly to stop illicit drugs and violence from infiltrating our neighborhoods.” Ramos-Bobadilla also participated in procuring, planning, and arranging acts of violence, including murders, in furtherance of the conspiracy. For example, Los Montes and other Honduran drug-trafficking organizations conspired to finance the murder of the head of Honduras’ anti-drug trafficking agency in December 2009. In June 2013, along with her son, Noe Montes-Bobadilla, and another co-conspirator, Ramos-Bobadilla also participated in coordinating and directing the murder of a permanent resident of the United States in Tocoa, Honduras, in retaliation for perceived cooperation with the U.S. government. In addition to her participation in these acts of violence, Ramos-Bobadilla engaged in bribery in furtherance of the conspiracy. Ramos-Bobadilla and her co-conspirators made payments to public officials in Honduras, including police officers and other law enforcement officials, to facilitate and protect the family’s drug-trafficking operations. “The Montes-Bobadilla Drug Trafficking Organization terrorized and poisoned communities under Ramos-Bobadilla’s leadership,” said Special Agent in Charge Jarod Forget of the DEA Washington Field Office. “Today’s sentencing is a testament to the capabilities and commitment by DEA to ensure that any domestic or foreign criminal who peddles deadly drugs into our neighborhoods and puts our families at risk will be held accountable.” “Erlinda Ramos-Bobadilla played a leadership role in a major operation trafficking narcotics into and distributing them throughout the United States,” said Special Agent in Charge Derek W. Gordon of Homeland Security Investigations (HSI) Washington, D.C. “There is no way to know for sure just how much damage Ramos-Bobadilla left in her wake; however, thanks to the collaborative efforts of HSI and our law enforcement partners, Ramos-Bobadilla’s drug trafficking days are over now. HSI will continue to exhaust every resource at our disposal to bring such drug traffickers to justice and ensure the safety of the communities we have sworn to protect.” On Oct. 8, 2015, Ramos-Bobadilla and five co-conspirators were charged by indictment in the Eastern District of Virginia with conspiracy to distribute five kilograms or more of cocaine for importation into the United States. Three of Ramos-Bobadilla’s co-conspirators have been convicted and sentenced in this case: Noe Montes-Bobadilla was sentenced in April 2019 to 37 years in prison. Arnulfo Fagot-Maximo was sentenced in May 2019 to 33 years in prison. Jose del Trancito Garcia-Teruel was sentenced in February 2022 to 13 years in prison. One co-conspirator, Tito Montes-Bobadilla, aka Alejandro Montes-Bobadilla, aka Pimpi, is deceased. The Organized Crime and Drug Enforcement Task Force (OCDETF) supported this case. The DEA Washington Division investigated the case with assistance from FBI’s Washington Field Office, U.S. Immigration and Customs Enforcement’s (ICE) HSI Washington, D.C., and the Virginia State Police. The Honduran National Police and the Justice Department’s Office of International Affairs provided substantial assistance. Trial Attorneys Douglas Meisel and Janet Turnbull of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorneys Thomas W. Traxler, Anthony T. Aminoff, and James L. Trump of the U.S. Attorney’s Office for the Eastern District of Virginia prosecuted the case. The U.S. Attorneys’ Offices for the Southern District of New York, the Middle District of Florida, and the Southern District of Florida also provided assistance.


title: Defense Company CEO Pleads Guilty To Conspiracy To Defraud Investors And Creditors

component: USAO - New York, Southern

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced today that BAREND OBERHOLZER, a/k/a “Barry Oberholzer,” the Chief Executive Officer of a defense technology start-up (“Start-Up-1”), pled guilty today in Manhattan federal court in connection with a conspiracy to solicit investment in and financing for Start-Up-1 on the basis of fraudulent misrepresentations regarding financial solvency, access to cash, and use of investor funds. Magistrate Judge Robert W. Lehrburger accepted the defendant’s guilty plea. The case is assigned to U.S. District Judge Andrew L. Carter, Jr. U.S. Attorney Damian Williams said: “Barend Oberholzer attempted to use the reputation of a retired, four-star Army General in order to solicit investments in his start-up company and a device he developed that purportedly could detect concealed weapons. Instead of attracting investors honestly, Oberholzer lied continuously to make his company more appealing to investors. Fortunately, law enforcement was able to detect the defendant’s lies, and he is now facing substantial time in prison.” According to the allegations in the Indictment and other filings and statements made in court: Beginning in or around 2018, OBERHOLZER began soliciting investments in Start-Up-1 and a purported security device it had developed (“Security Device-1”) from at least two venture capital firms on false pretenses. OBERHOLZER sent multiple emails to the firms, posing as a retired, four-star General in the United States Army (“Retired General-1”), who was employed by a prominent private equity firm based in New York, New York (“Private Equity Firm-1”). Therein, OBERHOLZER, posing as Retired General-1, endorsed and solicited investment in Start-Up-1 and Security Device-1, a smartphone case that purportedly permitted its users to detect at a distance weapons or other dangerous items concealed on another person. OBERHOLZER and his co-conspirator, JAROMY PITTARIO, a/k/a “Jaromy Jannard-Pittario,” also solicited investments in and loans to Start-Up-1 and Security Device-1 by falsely representing, among other things, their financial solvency, access to cash, and use of investor funds. For instance, the pair repeatedly provided falsified financial statements to potential creditors to secure funding. * * * OBERHOLZER, 39, of Calabasas, California, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. PITTARIO previously pled guilty on January 26, 2023. The sentencing of PITTARIO is scheduled for May 25, 2023, before Judge Andrew L. Carter, Jr., and the sentencing of OBERHOLZER is scheduled for July 11, 2023. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. Mr. Williams praised the outstanding investigative work of the New York Office of the U.S. Postal Inspection Service. The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jilan J. Kamal and Timothy V. Capozzi are in charge of the prosecution.


title: St. Elmo Man Facing Multiple Charges After Shooting Rifle at Federal Agents

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

body_text: EAST ST. LOUIS, Ill. – A federal grand jury returned a 15-count indictment charging a St. Elmo man on several assault and firearms charges after he allegedly opened fire on federal law enforcement agents who attempted to serve an arrest warrant at his residence in Fayette County. Dax Baldrige, 46, is facing seven counts of assault of a federal officer, seven counts of using a firearm in during and in relation to a crime of violence and one count of possession of a firearm by a felon. “Fortunately, the law enforcement officers returned home safely to their families after the incident in Fayette County,” said U.S. Attorney Rachelle Aud Crowe. “Attacks on those who protect us will not be tolerated.” “As the U.S. Marshal for the Southern District of Illinois, I am thankful and relieved that none of our task force personnel were injured or worse during this incident,” said David Davis, U.S. Marshal for the Southern District of Illinois. “This incident highlights the danger our task force members and other law enforcement encounter on a daily basis.” “This case serves as a grim reminder of the dangers that federal law enforcement officers face every day, while protecting our communities,” said Special Agent in Charge, Bernard Hansen, ATF, Kansas City Field Division. “As we did in this investigation ATF will continue to work with our law enforcement partners to focus on those that use firearms to facilitate acts of violence in Illinois, and across the country.” “Law enforcement officers put their lives on the line every day and those who attack the people charged with protecting the public’s safety will be held accountable and brought to justice,” said ISP Director Brendan F. Kelly. “Fayette County Sheriff’s Office would like to reiterate that we are extremely thankful that no law enforcement , local or federal officers were injured during this incident. We are also extremely proud of all the assisting agencies response to the incident that aided in a peaceful resolution and that no one was injured,” said Fayette County Sheriff Ronnie Stevens. On Oct. 17, 2022, task force members with the U.S. Marshals attempted to serve an arrest warrant to Baldrige at his residence in Fayette County when he allegedly used a rifle to fire multiple shots at the officers. After a 10-hour stand-off with police, Baldrige was taken into custody without incident, and no injuries were reported. An indictment is merely a formal charge against a defendant. Under the law, the defendant is presumed to be innocent of the charges until proven guilty beyond a reasonable doubt to the satisfaction of a jury. If convicted, Baldrige could face more than 70 years in prison and fines up to $250,000. The U.S. Marshal Service Great Lakes Task Force, the Bureau of Alcohol Tobacco and Firearms, the Illinois State Police and the Fayette County Sheriff’s Department are contributing to the investigation. Assistant U.S. Attorney Kimberly Arshi is prosecuting the case.


title: Former Law Firm Partner Arrested For Bankruptcy Fraud

body_text: Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging JOHN ROESSER, a former attorney, with abusing the bankruptcy system by making false statements under penalty of perjury and submitting falsified records. By February 2022, after years as a partner at major law firms, ROESSER owed the Internal Revenue Service (“IRS”) millions of dollars in income taxes and filed for Chapter 11 bankruptcy. Through multiple false statements, ROESSER lied to the Bankruptcy Court and the IRS about his purported receipt of millions of dollars in order to receive the protections of bankruptcy and keep his assets – including a multi-million-dollar residence and an Aston Martin sports car – while not paying his bills. ROESSER was arrested this morning in Bronxville, New York, and will be presented today in Manhattan federal court. U.S. Attorney Damian Williams said: “Bankruptcy is a lifeline for many people who need its protections to keep their lives together. The defendant allegedly corrupted and degraded a system that helps so many. As alleged, he manipulated the bankruptcy system by lying and falsifying bank records so that he could use its protections to keep his assets and to avoid paying his bills. And he should have known better — he used to be a lawyer. This Office will always bring to justice those who use their status to abuse the public’s trust and to try to put themselves above the law.” FBI Assistant Director Michael J. Driscoll said: “As alleged, Roesser committed bankruptcy fraud when he lied to both the Bankruptcy Court and the IRS about his receipt of millions of dollars so he could retain his assets – which included a multi-million-dollar residence and a luxury sports car – while avoiding paying his bills. The FBI will continue to investigate and bring to justice those who attempt to fraudulently exploit our nation’s legitimate financial protections to satisfy their own selfish desires.” As alleged in the Indictment: [1] From in or about March 2013 through in or about January 2018, ROESSER was a partner at three multinational law firms. During his time as a partner at these law firms, ROESSER earned substantial income — and incurred substantial income tax liability. ROESSER resigned from the New York bar in or about June 2020 after admitting to misappropriating client funds. By 2022, ROESSER owed the IRS, and others, over three million dollars. He also owned a house that he estimated was worth millions of dollars and an Aston Martin Rapide, a luxury sports car. Instead of paying his debts, in February 2022, ROESSER filed for Chapter 11 bankruptcy in the United States Bankruptcy Court for the Southern District of New York. See In re John Roesser , No. 22 Bk. 22049 (Bankr. S.D.N.Y.) (the “Bankruptcy”). In a Chapter 11 bankruptcy, a debtor may remain “in possession,” meaning that the debtor keeps possession and control of his assets during the bankruptcy. But a debtor-in-possession must propose a viable plan of reorganization, which creditors then vote on. If a debtor fails to comply with the requirements of Chapter 11, a Chapter 11 bankruptcy can be converted to a Chapter 7 bankruptcy or dismissed. In a Chapter 7 bankruptcy, an appointed trustee usually converts a debtor’s assets into cash for distribution among creditors. If a bankruptcy is dismissed, the debtor loses the protections of bankruptcy; for example, creditors can take steps to seize a debtor’s assets. ROESSER told the Bankruptcy Court and the IRS that he would soon receive millions of dollars and be able to pay his debts while keeping his house. Then, ROESSER filed a false declaration and submitted falsified records in the Bankruptcy indicating that he had received millions of dollars. This was false. ROESSER was concealing that he had not received millions of dollars after all, in a fraudulent effort to retain control of his assets while avoiding payment of his debts. On or about March 3, 2023, after some of the above false statements were withdrawn by ROESSER’s attorney in the Bankruptcy, ROESSER’s Chapter 11 bankruptcy was dismissed. Without the protections of bankruptcy, creditors can now take steps to seize ROESSER’s assets to pay his debts. * * * ROESSER, 52, of Bronxville, New York, is charged with one count of falsification of records in bankruptcy, which carries a maximum sentence of 20 years in prison, and one count of false oaths and claims in bankruptcy, which carries a maximum sentence of five 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 a judge. Mr. Williams praised the outstanding investigative work of the FBI. The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Steven J. Kochevar is in charge of the prosecution. The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty. [1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described therein should be treated as an allegation.


title: Justice Department Announces Significant Milestone in Policing Reform Efforts for the City Of Seattle and Seattle Police Department

component: Civil Rights Division

body_text: The Justice Department announced today that it has jointly filed a proposed agreement with the City of Seattle that recognizes the city’s consistent compliance with the core requirements of a 2012 consent decree regarding the Seattle Police Department (SPD). The agreement includes important obligations that the city must take to continue the reform process. The proposed agreement, which must be approved by the U.S. District Court for the Western District of Washington, describes the city’s and the SPD’s achievements in implementing the consent decree. For five years, the city has consistently complied with significant portions of the consent decree, including requirements regarding use of force (outside of the crowd management context), crisis intervention, stops and detentions, supervision and the city’s Office of Police Accountability. The proposed agreement would replace the consent decree, but would require that the city continue to measure whether the reforms required by the consent decree remain effective. The city must also complete work in two remaining areas, use of force in crowd management and accountability. “For over a decade, the Justice Department has worked to ensure that the City of Seattle and the Seattle Police Department undertake reforms necessary to bring about constitutional policing,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our consent decree has provided the strong medicine needed to help cure problems and improve the way policing is carried out across the City of Seattle. Today we recognize the progress that has been made, the significant reforms instituted and the central role that the community has played and will continue to play in ensuring fair, non-discriminatory and effective policing moving forward.” “The joint motion filed today acknowledges the significant progress of the City of Seattle and its Police Department, and very clearly lays out what must happen before all requirements of the consent decree may be terminated,” said First Assistant U.S Attorney Tessa M. Gorman for the Western District of Washington. “This proposed agreement allows the City of Seattle to focus on these remaining critical areas so that reforms in those areas become ingrained in the ways the Seattle Police Department engages with the community.” The city has made notable progress in the areas where it has consistently complied with the consent decree for more than five years, and has adopted reforms that go beyond the explicit requirements of the consent decree. For example: Reduced Use of Force: SPD changed its policies and training regarding use of force, including how use of force is reported, reviewed and investigated. As a result, force is used in less than one-quarter of one percent of all events to which officers respond. SPD has reduced the use of serious force by 60%. Improved Response to Behavioral Health Crises: SPD reduced the use of force in crisis incidents to less than two percent of such incidents, and the majority of force used (65%) is low-level. SPD changed its response to people having behavioral health crises, including developing an advanced crisis intervention program, adopting a model where police and civilian mental health practitioners respond jointly and coordinating with King County to dispatch non-police mobile crisis teams to behavioral health incidents. Improved Response to Investigative Stops: SPD changed its policy, training and practices for investigative stops. The court monitor’s review has found that officers complied with legal and policy requirements in nearly all instances it assessed. New Bias-free Policing Policy and Training : SPD adopted a bias-free policing policy and, in consultation with the Community Police Commission, developed bias-free policing training. It also changed its procedures for addressing bias-related complaints. New Supervision Model : SPD changed its supervision practices, providing new training and adopting a new staffing model to ensure that all patrol officers have a consistent, highly-trained supervisor. The proposed agreement, which must be approved by the U.S. District Court for the Western District of Washington, calls for continued work in the following areas: Use of Force/Crowd Management: SPD will develop new crowd management policies and provide them to the court and independent Court Monitor for approval. These policies include ways to report and review uses of force during crowd management. Accountability: Under the proposed agreement, the independent Court Monitor will review the city’s accountability system and propose any improvements. This matter is handled by the Special Litigation Section of the U.S. Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office’s Civil Division. The Civil Rights Division continues to prioritize constitutional policing and currently has pending investigations into police departments across the country, including in Minneapolis, Phoenix, New York City and Louisiana. The consent decree, proposed agreement, as well as additional information about the Civil Rights Division, are available on its website at https://www.justice.gov/crt/special-litigation-section .


title: Madison Man Charged with Firebombing Building

component: National Security Division (NSD)

body_text: MADISON, WIS. – A Madison, Wisconsin man was arrested today on a charge related to the May 2022 firebombing of a Madison office building. According to court documents, Hridindu Sankar Roychowdhury, 29, is charged with one count of attempting to cause damage by means of fire or an explosive. Roychowdhury was arrested earlier today in Boston, Massachusetts. “According to the complaint, Mr. Roychowdhury used an incendiary device in violation of federal law in connection with his efforts to terrorize and intimidate a private organization,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “I commend the commitment and professionalism of law enforcement personnel who worked exhaustively to ensure that justice is served.” “This group of local and federal law enforcement officers has worked, with the federal prosecutors, diligently and creatively to move the investigation forward,” said U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin. “This case is an example of the results law enforcement can achieve when local and federal law investigators work as a team.” Madison Police Chief Shon F. Barnes said, “For months, our detectives remained committed to finding those responsible for this arson. When tips and leads were limited, they never gave up. Their persistence is proof that hateful acts do not have a place in Madison. I applaud their work and want to thank our federal partners for all of their help leading up to this arrest.” “I’m very proud of the tireless and determined efforts the combined federal, state and local team put in to identify and arrest this individual,” said ATF Special Agent in Charge William McCrary of the St. Paul Field Division. “I can assure you, our ATF Certified Fire Investigator invested long hours into this case. It is very satisfying to me to see that this alleged perpetrator has been placed in custody.” “The FBI conducts investigations when someone crosses the line from expression of protected personal beliefs to violations of federal law,” said Special Agent in Charge Michael E. Hensle of the FBI Milwaukee Field Office. “We remained vigilant during this investigation and worked with our law enforcement partners to methodically and thoroughly address every aspect of this act of violence. The arrest today represents these efforts and highlights the work done by law enforcement to protect the safety of our citizens.” According to the complaint, on Mother’s Day, Sunday, May 8, 2022, at approximately 6:06 a.m., law enforcement responded to an active fire at an office building located in Madison, Wisconsin. Once inside the building, police observed a mason jar under a broken window; the jar was broken, and the lid and screw top were burned black. The police also saw a purple disposable lighter near the mason jar. On the opposite wall from the window, the police saw another mason jar with the lid on and a blue cloth tucked into the top; the cloth was singed. The jar was about half full of a clear fluid that smelled like an accelerant. Outside of the building, someone spray painted on one wall, “If abortions aren’t safe then you aren’t either” and, on another wall, a large “A” with a circle around it and the number “1312.” During the investigation, law enforcement collected DNA from the scene of the attack. In March 2023, law enforcement identified Roychowdhury as a possible suspect. Local police officers observed Roychowdhury dispose of food in a public trash can; the officers recovered the leftover food and related items, and law enforcement collected DNA from the food. On March 17, 2023, law enforcement advised that a forensic biologist examined the DNA evidence recovered from the attack scene and compared it to the DNA collected from the food contents. The forensic biologist found the two samples matched and likely were the same individual. In March 2023, Roychowdhury travelled from Madison, Wisconsin, to Portland, Maine, and he purchased a one-way ticket from Boston to Guatemala City, departing Tuesday morning, March 28, 2023. Law enforcement arrested Roychowdhury at Boston Logan International Airport. Roychowdhury will have a detention hearing in Boston. Roychowdhury is scheduled to appear in U.S. District Court in Boston today. A date for his appearance in federal court in Madison has not been set. If convicted, Roychowdhury faces a mandatory minimum penalty of five years and a maximum of 20 years in prison. The charge against him is the result of an investigation by the Madison Police Department, Wisconsin State Capitol Police Department, ATF, the FBI’s Joint Terrorism Task Force, Homeland Security Investigations, Dane County Sheriff’s Office, with the assistance of the FBI Boston Field Office, Boston Police Department, Massachusetts State Police, U.S. Coast Guard, Federal Air Marshal Service, and Transportation Security Administration. Assistant U.S. Attorney Elizabeth Altman for the Western District of Wisconsin and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section are prosecuting the case. Assistant U.S. Attorney Amanda Beck for the District of Massachusetts handled the appearance in Boston. An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Wisconsin Man Charged with Firebombing Building

component: Federal Bureau of Investigation (FBI)

body_text: A Wisconsin man was arrested today on a charge related to the May 2022 firebombing of a Madison office building. According to court documents, Hridindu Sankar Roychowdhury, 29, of Madison, is charged with one count of attempting to cause damage by means of fire or an explosive. Roychowdhury was arrested earlier today in Boston. “According to the complaint, Mr. Roychowdhury used an incendiary device in violation of federal law in connection with his efforts to terrorize and intimidate a private organization,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “I commend the commitment and professionalism of law enforcement personnel who worked exhaustively to ensure that justice is served.” “This group of local and federal law enforcement officers has worked, with the federal prosecutors, diligently and creatively to move the investigation forward,” said U.S. Attorney Timothy M. O’Shea for the Western District of Wisconsin. “This case is an example of the results law enforcement can achieve when local and federal law investigators work as a team.” “Violence is never an acceptable way for anyone to express their views or their disagreement,” said Assistant Director Robert R. Wells of the FBI’s Counterterrorism Division. “Today’s arrest demonstrates the FBI’s commitment to vigorously pursue those responsible for this dangerous attack and others across the country, and to hold them accountable for their criminal actions.” According to the complaint, on Mother’s Day, Sunday, May 8, 2022, at approximately 6:06 a.m., law enforcement responded to an active fire at an office building located in Madison, Wisconsin. Once inside the building, police observed a mason jar under a broken window; the jar was broken, and the lid and screw top were burned black. The police also saw a purple disposable lighter near the mason jar. On the opposite wall from the window, the police saw another mason jar with the lid on and a blue cloth tucked into the top; the cloth was singed. The jar was about half full of a clear fluid that smelled like an accelerant. Outside of the building, someone spray painted on one wall, “If abortions aren’t safe then you aren’t either” and, on another wall, a large “A” with a circle around it and the number “1312.” During the investigation, law enforcement collected DNA from the scene of the attack. In March 2023, law enforcement identified Roychowdhury as a possible suspect. Local police officers observed Roychowdhury dispose of food in a public trash can; the officers recovered the leftover food and related items, and law enforcement collected DNA from the food. On March 17, 2023, law enforcement advised that a forensic biologist examined the DNA evidence recovered from the attack scene and compared it to the DNA collected from the food contents. The forensic biologist found the two samples matched and likely were the same individual. In March 2023, Roychowdhury travelled from Madison, Wisconsin, to Portland, Maine, and he purchased a one-way ticket from Boston to Guatemala City, departing this morning. Law enforcement arrested Roychowdhury at Boston Logan International Airport. Roychowdhury will have a detention hearing in Boston. Roychowdhury is scheduled to appear in U.S. District Court in Boston today. A date for his appearance in federal court in Madison has not been set. If convicted, Roychowdhury faces a mandatory minimum penalty of five years and a maximum of 20 years in prison. The Madison Police Department, Wisconsin State Capitol Police Department, ATF, the FBI’s Joint Terrorism Task Force, Homeland Security Investigations, Dane County Sheriff’s Office investigated the case, with assistance provided by the FBI Boston Field Office, Boston Police Department, Massachusetts State Police, U.S. Coast Guard, Federal Air Marshal Service, and Transportation Security Administration. Assistant U.S. Attorney Elizabeth Altman for the Western District of Wisconsin and Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section are prosecuting the case. Assistant U.S. Attorney Amanda Beck for the District of Massachusetts handled the appearance in Boston. A complaint is merely an allegation. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Businessman sentenced to prison for theft from Morgantown company

component: USAO - West Virginia, Northern

body_text: CLARKSBURG, WEST VIRGINIA – A businessman from Pennsylvania was sentenced to 46 months in prison today for stealing $3.5 million from a Morgantown construction company. Michael D. Allen, 60, of Irwin, Pennsylvania, pled guilty in November to wire fraud and money laundering. Allen, who had been the manager of Accelerated Construction Services, admitted that he used his position to divert $3.5 million in company funds for his own personal benefit. Allen spent $154,000 on vehicles, including a 2020 Range Rover, a 1954 Chevrolet 3100 truck, and a classic car restoration. He purchased a 5.19 carat diamond ring for $113,250 and spent an estimated $19,000 on other jewelry, $18,000 of which was used to purchase a Breitling watch. In addition to serving the prison sentence, Allen must pay $3.5 million in restitution to the company. Assistant U.S. Attorney Jarod J. Douglas prosecuted the case on behalf of the government. The Internal Revenue Service Criminal Investigations and the Monongalia County Sheriff’s Office investigated. The FBI assisted in the investigation. Chief U.S. District Judge Thomas S. Kleeh presided.


title: Massachusetts Man Pleads Guilty to Conspiring to Distribute Ten Kilograms of Fentanyl

component: USAO - New Hampshire

body_text: CONCORD – A Massachusetts man pleaded guilty in federal court to conspiracy to distribute fentanyl in New Hampshire, United States Attorney Jane E. Young announced today. Johan M. Rodriguez, 37, of Lawrence, Massachusetts, conspired with another Lawrence-based drug trafficker to deliver approximately ten kilograms of fentanyl to an individual in Dover cooperating with the Federal Bureau of Investigations. Rodriguez is scheduled to be sentenced on July 6, 2023. The Federal Bureau of Investigations’ Major Offender Task Force investigated the case. The Dover Police Department and the Strafford County Sheriff’s Office provided valuable assistance. Assistant U.S. Attorney Jennifer C. Davis, Deputy Chief of Young’s Criminal Division, is prosecuting the case. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. ###


title: Rochester Man Pleads Guilty to Conspiracy to Distribute Fentanyl and Methamphetamine

body_text: CONCORD – Bradford Sargent, 41, of Hampton, pleaded guilty in federal court to conspiracy to distribute controlled substances, United States Attorney Jane E. Young announced today. According to court documents and statements made in court, Sargent and his co-defendant Jennelle Brown sold drugs multiple times from their hotel room in Portsmouth. Law enforcement then searched their room and uncovered large quantities of money, drugs, and drug ledgers. A search of two vehicles the defendants used in their drug operations revealed more money and drugs. Officers also searched storage units and safety deposit boxes the defendants controlled and discovered additional money and drugs. In total, law enforcement seized over $130,000, 1.3 kilograms of fentanyl, almost 650 grams of methamphetamine, and smaller amounts of cocaine. Sargent is scheduled to be sentenced on July 6, 2023. Brown previously pleaded guilty on January 18, 2023, and is scheduled to be sentenced on April 27, 2023. The case was investigated by the Federal Bureau of Investigation and Rockingham County Sheriff’s Office, with assistance from the Drug Enforcement Administration and Strafford County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorneys Alexander S. Chen and Jarad Hodes. ###


title: Recidivist Fraudster Pleads Guilty To $40 Million Ponzi Scheme

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that FRANKLIN RAY pled guilty today to four counts of wire fraud, including one count of wire fraud while released under conditions of bail, and one count of aggravated identity theft in connection with various fraud schemes relating to his operation of a trucking business known as CSA Business Solutions LLC and another Michigan-based trucking company. RAY, who was previously convicted of wire fraud and bank fraud in the Eastern District of Michigan and was released from prison in 2010, pled guilty before United States District Judge Analisa Torres. U.S. Attorney Damian Williams said: “As he admitted in court today, between June 2020 and April 2022, Franklin Ray engaged in four separate fraudulent schemes by lying about the business operations of his purported trucking companies, including two separate PPP frauds and a $40 million Ponzi scheme. Ray continued his crime spree even after he was arrested by federal authorities in March 2022, brazenly defrauding investors in his fake trucking company of nearly $2 million while he was on bail following his arrest. Thanks to the hard work of the FBI and this Office, he is being held accountable for his serial fraudulent conduct.” As alleged in the previously filed Complaint and Indictment and other court documents: Beginning in at least June 2021, FRANKLIN RAY began to offer investors an opportunity to invest in his trucking and logistics company, CSA Business Solutions LLC (the “Truck Investment Scheme”). Specifically, RAY and the investors entered into contracts pursuant to which CSA Business Solutions LLC would procure and operate a truck in its trucking business for each $20,000 contributed by the investor. RAY told investors that the trucks would perform delivery services for a multinational e-commerce company and/or a multinational shipping company and that the investors would be entitled to 77% of the net income of the trucks. In reality, CSA Business Solutions LLC operated few trucks and had minimal revenues from trucking activities. Instead, investors in the Truck Investment Scheme received payments from new investments into the scheme or from other sources. After the investors purchased the rights to trucks from CSA Business Solutions LLC, RAY sent them falsified spreadsheets at regular intervals, purporting to show the performance of their trucks during the relevant period. RAY ultimately induced approximately 275 investors to invest at least $40 million and fraudulently claimed to have purchased over 2,000 trucks with the investments. RAY also pled guilty to carrying out fraudulent schemes to obtain over $1.9 million in government-guaranteed loans designed to provide relief to small businesses during the COVID-19 pandemic on behalf of CSA Business Solutions LLC and another Michigan-based trucking company (the “SBA Loan Fraud Schemes”). In connection with the SBA Loan Fraud Schemes, RAY submitted false information and forged documents to the Small Business Administration and commercial lenders. RAY claimed that these businesses engaged in significant trucking business, but they had minimal revenues and trucking activity. Finally, RAY pled guilty to fraudulently inducing a New York City-based real estate company (the “Company”) to pay $175,000 in startup costs for a joint venture (the “Join Venture”) between the Company and CSA Business Solutions LLC. RAY misrepresented CSA Business Solutions LLC and his own personal business experience to the Company. Rather than pay for startup costs, RAY spent the funds on personal expenses, including private airplane trips. The Joint Venture was never formed. RAY was arrested in early March 2022, and a CSA Business Solutions LLC bank account was seized at that time. After his arrest, up until his Indictment in April 2022, RAY continued to operate the Truck Investment Scheme. RAY hid the fact of his arrest and the seizure of the bank account and lied to investors about why he did not make expected payments after his arrest. During the period after his arrest, RAY opened new bank accounts on behalf of CSA Business Solutions LLC and continued to solicit and accept investor funds for trucks that did not exist. In the post-arrest period alone, RAY defrauded investors into paying at least $1.9 million into his scheme. * * * RAY, 51, of Canton, Michigan, pled guilty to four counts of wire fraud, including one count of wire fraud while released under conditions of bail and two counts of wire fraud affecting a financial institution, and one count of aggravated identity theft. The counts of wire fraud while released under conditions of bail and wire fraud affecting a financial institution each carry a maximum sentence of 30 years in prison. The remaining count of wire fraud carries a maximum sentence of 20 years in prison. Aggravated identity theft carries an additional mandatory two-year sentence, which must be imposed consecutively to any other sentence. RAY also agreed to forfeit $42,128,912, including the funds on deposit at several bank accounts used in connection with the fraudulent schemes, including the primary CSA Business Solutions bank account. RAY also agreed to pay restitution to the victims. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. RAY is scheduled to be sentenced at 11:40 a.m. on July 25, 2023, by U.S. District Judge Analisa Torres. Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Matthew Weinberg is in charge of the prosecution. If you believe you have been a victim of the schemes described above, including a victim entitled to restitution, and you wish to provide information to law enforcement and/or receive notice of future developments in the case or additional information, please contact Wendy Olsen-Clancy, the Victim Witness Coordinator at the United States Attorney’s Office for the Southern District of New York, at 866-874-8900 or wendy.olsen@usdoj.gov.


title: Former CFO of Russian Natural Gas Company Convicted of Making False Statements to the IRS, Failing to Disclose Offshore Accounts and Failing to File Tax Returns

component: Tax Division

body_text: A federal jury found a Florida man guilty of failing to file a Report of Foreign Bank and Financial Accounts (FBAR), making a false statement to the IRS, and willfully failing to file tax returns. According to court documents and evidence presented at trial, from 2005 to 2015, Mark Anthony Gyetvay of Naples, Florida, concealed his ownership and control over substantial offshore assets and failed to file and pay taxes on millions of dollars of income. After working as a certified public accountant (CPA) in the United States and Russia, Gyetvay became the chief financial officer of Novatek, a large Russian gas company. Beginning in 2005, Gyetvay opened two different accounts at a bank in Switzerland to hold substantial assets, which at one point had an aggregate value of over $93,000,000. Over a period of several years, Gyetvay took steps to conceal his ownership and control over these funds, including removing himself from the accounts and making his then-wife, a Russian citizen, the beneficial owner of the accounts. Additionally, despite being a CPA, Gyetvay did not file his 2013 and 2014 U.S. tax returns. Gyetvay did not file FBARs, as required, to disclose his control over the Swiss bank accounts, at times, rejecting his accountant’s recommendation to do so. In an unsuccessful attempt to avoid significant financial penalties, Gyetvay made a false filing with the IRS using the Streamlined Foreign Offshore Procedures, available only to taxpayers whose failure to report offshore assets and income is due to non-willful conduct. He is scheduled to be sentenced on September 21, 2023, and faces a maximum penalty of five years in prison for failing to file an FBAR, five years in prison for making a false statement and one year in prison for each willful failure to file a tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. IRS-Criminal Investigation is investigating the case. Senior Litigation Counsel Stanley Okula, Assistant Chief David Zisserson and Trial Attorney Kevin Schneider of the Justice Department’s Tax Division are prosecuting the case.


title: Houston Attorney Pleads Guilty to Offshore Tax Evasion Scheme

body_text: A Houston Attorney pleaded guilty today to conspiring to defraud the United States. In September 2019, a federal jury in Houston convicted Jack Stephen Pursley, also known as Steve Pursley, after a several-day trial on charges relating to an offshore tax evasion scheme, and the Court sentenced him to 24 months in prison. However, Pursley’s conviction was reversed on appeal and the case was sent back to the trial court for further proceedings. Pursley has now pleaded guilty to the conspiracy with which he was charged, as set forth in Count One of the indictment. According to court documents and the evidence presented at the 2019 trial, Pursley conspired with a former client to repatriate more than $18 million in untaxed income that the client had earned through his company, Southeastern Shipping. Knowing that his client had never paid taxes on these funds, Pursley designed and implemented a scheme whereby the untaxed funds were transferred from Southeastern Shipping’s business bank account, located in the Isle of Man, to the United States. Pursley helped to conceal the movement of funds from the IRS by disguising the transfers as stock purchases in United States corporations owned and controlled by Pursley and his client. At trial, the government proved that Pursley received more than $4.8 million and a 25% ownership interest in the co-conspirator’s ongoing business for his role in the fraudulent scheme. For tax years 2009 and 2010, Pursley evaded the assessment of and failed to pay the income taxes he owed on these payments by, among other means, withdrawing the funds as purported non-taxable loans and returns of capital. The government showed at trial that Pursley used the money he garnered from the fraudulent scheme for personal investments, and to purchase assets for himself, including a vacation home in Vail, Colorado and property in Houston, Texas. In total, Pursley caused a tax loss to the IRS of more than $6.4 million. Pursley is scheduled to be sentenced on June 8. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement. IRS-Criminal Investigation is investigating the case. Senior Litigation Counsel Sean Beaty and Trial Attorneys Grace Albinson and Wilson Rae Stamm of the Justice Department’s Tax Division are prosecuting the case.


title: Eagle River Man Arrested for Trafficking Firearms

component: USAO - Alaska

body_text: ANCHORAGE – An Eagle River man was arrested today in Illinois on criminal charges related to his alleged trafficking of firearms from Alaska to California. According to court documents, Cornelius Leon William Smith, 32, purchased 9 firearms on behalf of other individuals while falsely stating that he was the true purchaser, bought a gun in Alaska and then re-sold it to a California resident, and operated a firearms business, all without the proper license. Smith is charged with one count of Engaging in the Business of Dealing Firearms Without a License, one count of Transferring a Firearm to an Out-of-State Resident, and nine counts of False Statement During Purchase of Firearms. If convicted, Smith faces a maximum penalty of ten years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement. The Bureau of Alcohol, Tobacco, Firearms, and Explosives are investigating the case. Assistant U.S. Attorney Jennifer Ivers is prosecuting the case. 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. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.


title: Operation "Candyland" Leads to Multiple Drug Arrests in Marianna and Forrest City

component: USAO - Arkansas, Eastern

body_text: MARIANNA—A coordinated arrest operation took place this morning in Marianna and Forrest City as part of an ongoing federal drug investigation. Dubbed “Operation Candyland,” this investigation by the FBI, Arkansas State Police, the First Judicial Drug Task Force, and the St. Francis County Sheriff’s Office, focused on individual independent distributors of methamphetamine and cocaine in Lee and St. Francis Counties. Law enforcement began early this morning by searching for six suspects, all of whom were indicted for federal drug-trafficking crimes. Two others, who were already in custody when this morning’s roundup began, were also indicted. Five of the suspects were taken into custody: Eddie Bonner, 27, of Marianna, is charged with four counts of distribution of methamphetamine; Lance Hendrix, 39, of Marianna, is charged with four counts of distribution of methamphetamine; Leonard People, 26, of Marianna, is charged with one count of distribution of cocaine; Cedric Woods, 46, of Marianna, is charged with two counts of distribution of cocaine; and Jeremy Buchanan, 32, of Forrest City, is charged with one count of distribution of cocaine. Alfred Bonner, 28, of Marianna, and Clenton Wofford, 42, of Pine Bluff, are in custody stemming from unrelated criminal charges. Alfred Bonner is charged federally, along with Eddie Bonner, with drug conspiracy and distribution of methamphetamine. Wofford is charged federally with one count of distribution of methamphetamine. Most of the defendants who were arrested this morning will appear tomorrow afternoon for arraignment before United States Magistrate Judge Patricia S. Harris. 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 case is being prosecuted by Assistant United States Attorney Julie Peters. An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty. # # # This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available online at https://www.justice.gov/edar Twitter: @EDARNEWS


title: Mexican National Sentenced to 144 Months for Drug Trafficking in the Tri Cities

component: USAO - Washington, Eastern

body_text: Richland, Washington – On March 28, 2023, Senior United States District Judge Edward F. Shea sentenced Rafael Muniz-De La Mora, 49, to 12 years in in federal prison after his guilty plea to possession with intent to distribute 50 grams or more of pure methamphetamine. Muniz-De La Mora, who is from Sinaloa, Mexico, also will serve 5 years of federal supervision after he is released from federal custody. According to information disclosed during court proceedings, the DEA Tri-Cities Task Force identified Muniz-De La Mora and his Codefendant, Carlos Madrigal-Deniz, during an investigation into a drug trafficking organization operating in the Tri-Cities area. Madrigal-Deniz was brokering pound quantity transactions for the drug trafficking organization, which routinely was distributing 100 to 200 pound shipments of methamphetamine into the Eastern Washington. During the investigation, De La Mora was identified as Madrigal-Deniz’s supplier. In September 2020, Madrigal-Deniz made arrangements for a ten-pound delivery of methamphetamine from Muniz-De La Mora, who brought a four-year-old child to the transaction. The child was wearing a Spider-Man backpack containing approximately 10 pounds of methamphetamine. Muniz-De La Mora escorted the young child, who is seen wearing the backpack, from one vehicle to another. Muniz-De La Mora, the child, and another co-defendant then entered into the second vehicle – a Chevy Cruze. Shortly, thereafter, DEA Tri-Cities stopped the Chevy Cruze and recovered the backpack, which was inside the car, next to the child. Inside the Spider-Man Backpack, the DEA recovered 10 pounds of methamphetamine supplied by Muniz-De La Mora. Below are still shots from surveillance video of the transaction. Muniz-De La Mora appears in a black t-shirt. Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, stated “Drug distribution continues to be a scourge in the Tri-Cities and elsewhere. It is particularly troubling that Mr. Muniz-De La Mora used a four-year old child to conceal his distribution activities” U.S. Attorney Waldref continued: “I commend the collaborative efforts of state, local, and federal law enforcement to identify Mr. Muniz-De La Mora’s drug trafficking activities and to prevent him from further distributing this poison in our community. The people of Eastern Washington also are incredibly fortunate to be represented in federal court by Assistant United States Attorney Stephanie Van Marter, who spearheads federal drug prosecutions in the Tri-Cities and elsewhere in this District.” “Mr. Muniz-De La Mora, an individual who involved a four-year-old in his drug distribution scheme, will spend a significant amount of time in prison due to the dedication of our state, local and federal partners who continue to work to keep our communities safe, healthy and free of individuals like him,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division. This case was investigated by the DEA Tri-Cities, the METRO Drug Task Force, United States Border Patrol, Richland Police Department, Kennewick Police Department, Pasco Police Department, and West Richland Police Department. This case was prosecuted by Assistant United States Attorney Stephanie Van Marter. 4:20-CR-6028-EFS


title: Former Connections CEO Pays $300,000 to Resolve Alleged Violations of Federal Controlled Substances Act

component: USAO - Delaware

body_text: WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that Catherine Devaney McKay, the former CEO of Connections Community Support Programs, Inc. (“CCSP”), has agreed to pay $300,000 to resolve alleged violations of the federal Controlled Substances Act. Prior to the sale of its assets in bankruptcy, CCSP provided a variety of mental health and addiction treatment services at numerous locations throughout Delaware. In April 2021, the United States filed a lawsuit alleging that CCSP and three of its former executives, including Ms. McKay, had negligently failed to keep proper records of the company’s use of controlled substances, including methadone and buprenorphine, in its treatment of patients with substance use disorders. Among numerous other issues, during a March 2019 audit by the Drug Enforcement Administration (“DEA”), CCSP was unable to properly account for tens of thousands of doses of controlled substances at its Millsboro location, which were later determined to have been transferred to other CCSP facilities without proper documentation. On June 15, 2021, CCSP completed a sale, overseen by the U.S. Bankruptcy Court for the District of Delaware, of its assets and operations to Conexio Care, Inc. and Coras Wellness and Behavioral Health, which are now providing the mental health and addiction treatment services formerly provided by CCSP. On November 1, 2021, the U.S. District Court for the District of Delaware entered a consent judgment in the amount of $1,621,571 against CCSP. The settlement announced today resolves the United States’ separate claims against Ms. McKay for her individual role in CCSP’s violations. “Over the many years that she served as CEO of Connections, Ms. McKay repeatedly failed to take steps to address the company’s compliance failures,” said U.S. Attorney Weiss. “Those failures increased the possibility of drug diversion, putting at risk the very population that Connections purported to serve. Where executives ignore their individual duty to ensure that the companies they manage comply with the laws that protect public safety, my office will continue to seek to hold them personally responsible for those violations.” “We applaud the support of U.S. Attorney Weiss and his office in securing this significant settlement against McKay,” said Thomas Hodnett, Special Agent in Charge of the DEA’s Philadelphia Field Division. “Treatment programs such as CCSP have an obligation to properly account for controlled substances such as methadone and buprenorphine that are used for medication assisted treatment. Settlements such as this are a mechanism to ensure compliance with the requirements of the Controlled Substances Act.” Assistant U.S. Attorneys Dylan J. Steinberg and Laura D. Hatcher represented the United States in this action. The claims resolved by the settlement are allegations only and there has been no determination of liability. Related court documents and information from the civil lawsuit are on PACER by searching for Case No 1:21-cv-00514-MN. A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware.


title: Boston Men Indicted for Unlawful Trafficking of Machinegun Conversion Devices

component: USAO - Massachusetts

body_text: BOSTON – Two Boston men have been indicted by a federal grand jury in Boston for illegally selling a dozen machinegun conversion devices. Elijah Navarro, 24, and Michael Wilkerson, 22, were indicted on one count each of engaging in the business as a manufacturer or dealer in firearms. Wilkerson and Navarro were also indicted on one count and two counts, respectively, of transferring or possessing a machine gun. The defendants were previously arrested and charged by criminal complaint on Feb. 16, 2023. “When we look at crime data for Boston in 2022, our city remains one of very few urban centers in the country where overall violent crime remains down. Every illegal firearm and conversion device we take off the street is preventing a potential homicide, shooting or maiming. Every piece of illegal ammunition we seize represents a life saved. The proliferation of illegal firearms and deadly conversion devices in our Commonwealth is a public health and a public safety crisis,” said United States Attorney Rachael S. Rollins. “Mr. Navarro and Mr. Wilkerson allegedly possessed unregistered machinegun conversion devices that turn already deadly firearms into weapons of war. Our city is far too familiar with the deadly and devastating effects of gun violence. In 2021, we had 40 homicides in Boston and in 2022 we had 41 homicides. The overwhelming majority of those murders were committed with an unregistered firearm by a person expressly prohibited from possessing one. According to the Boston Police Department, fatal shootings rose by eight between 2021 and 2022. Every case we charge that removes an illegal firearm, conversion device or ammunition from the streets of Boston and Massachusetts and ultimately holds prohibited users accountable matters. We will continue to charge these types of cases and work closely with our state, local and federal law enforcement partners to end gun violence.” “Circumventing the law by selling unregistered machine guns, and operating as a licensed dealer without the benefit of following the legal requirements is egregious, particularly when the result is providing unlawful possessors with access to fully automatic firearms”, James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “ATF will continue to actively enforce federal firearms laws to keep our communities safe.” “It is this type of cooperative effort with our federal partners at the ATF and the U.S. Attorney's Office that allows us to take dangerous individuals off our streets and to lessen the availability of high-powered firearms in our City,” said Boston Police Commissioner Michael A. Cox. “We will continue to work together to stem the tide of illegal guns in Boston utilizing all city, state and federal resources available to us in doing so.” According to the charging documents, in January 2023, Navarro agreed to sell 12 machinegun conversion devices to an individual in exchange for $1,700. It is alleged that, following a series of communications, Navarro met the individual twice at a pre-arranged location. It is alleged that on Jan. 19, 2023, Navarro sold the first two machinegun conversion devices to the individual for $400 and later, on Jan. 25, 2023, Navarro sold the remaining 10 devices for an additional $1,300 out of Wilkerson’s residence. It is alleged that during a search of Wilkerson’s residence on Feb. 16, 2023, two 3-D printers, 3-D printing material, machinegun conversion devices, a ballistic vest as well as firearms, ammunition and magazines were seized. Neither Navarro nor Wilkerson possess licenses to import, manufacture, deal or possess firearms. The charge of engaging in the business as a manufacturer or dealer in firearms provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $10,000. The charge of unlawful transferring or possession of a machinegun provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. U.S. Attorney Rollins, ATF SAC Ferguson and BPD Commissioner Cox made the announcement today. Assistant U.S. Attorney John T. Dawley of Rollins’ Organized Crime & Gang Unit is prosecuting the case. The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.


title: United States Attorney Kavanaugh Announces Grant Funding  for Project Safe Neighborhoods Initiatives

component: USAO - Virginia, Western

body_text: Charlottesville, Va. – United States Attorney Christopher R. Kavanaugh announced today the availability of over $320,000 in grant funding for Project Safe Neighborhoods (PSN) initiatives. This funding opportunity will assist in implementing comprehensive, collaborative, and community-based approaches to reducing violent crime in the Western District of Virginia using a wide range of effective violent crime reduction strategies. The grant money, distributed in partnership with the Virginia Department of Criminal Justice Services (DCJS) and the Bureau of Justice Assistance (BJA), will allow eligible organizations to support a broad range of activities to reduce gun and gang violence. Programs should address deterrence efforts aimed at potential offenders, the implementation of evidence-based programs and proven enforcement strategies to prevent and reduce gun and gang crimes, and/or the prosecution of significant firearm, controlled substance, and violent crime offenses. “These funding opportunities will be used by local organizations who are doing important work at the grassroots level to reduce violence in our neighborhoods,” United States Attorney Christopher R. Kavanaugh said today. “Project Safe Neighborhoods continues to be the major source of funding for many of these organizations and we look forward to sharing more information about those partnerships in the future.” In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the Department’s Comprehensive Strategy for Reducing Violent Crime issued by Deputy Attorney General Lisa Monaco, is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities, and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions. Guided by these principles, in October 2021, the United States Attorney’s Office for the Western District of Virginia (WDVA) implemented a strategic PSN plan. PSN is the collaboration of community organizations as well as federal, state, and local law-enforcement agencies to build evidence-based and intelligence-led approaches to identifying the most violent gangs and offenders in each affected community and deploying their combined resources not only to prevent violent crimes but also, through offender intervention and rehabilitation efforts, to help break the cycle of violence by addressing its underlying causes. United States Attorney Kavanaugh has assigned specific federal prosecutors to those areas in our District to help implement this strategy and coordinate with law enforcement as well as engaging with community partners. The Grants Program is just one component of the multi-faceted efforts the U.S. Attorney’s Office has implemented in Danville, Roanoke City/County region, and Lynchburg. This funding opportunity is open to state and local law enforcement agencies, governmental entities, educational institutions, and 501(c)(3) non-profit organizations who are located in, or have the ability to serve, those areas. Applicants are expected to use the funds to support the WDVA’s PSN pillars, which include community engagement, prevention and intervention, focused and strategic enforcement, and accountability. To select and administer its PSN grant funds, the United States Attorney’s Office will select community members to serve as members of an independent Grants Committee. The Committee will be composed of individuals from the Danville, Lynchburg, and Roanoke areas with experience in community outreach, law enforcement, or who are otherwise qualified to fairly review and assess applications that will help achieve our PSN goals. None of the Committee’s members will be current federal employees, and no member will be eligible to apply for or receive PSN funding. The U.S. Attorney’s Office encourages those eligible organizations to apply for grant assistance by visiting the Virginia Department of Criminal Justice Services website at https://www.dcjs.virginia.gov/grants/programs/2023-project-safe-neighborhoods-grant-program-western . The website also has information related to the guidelines and application procedures. Completed applications should be submitted by 5:00 p.m. on April 26, 2023. PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime. For additional funding opportunities and awards that will further assist our efforts to reduce violent crime across our district, please visit The Office of Justice Programs website https://www.ojp.gov/funding/explore/current-funding-opportunities . The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims, and enhance the rule of law.


title: Columbia Man Pleads Guilty to Illegally Possessing a Firearm

component: USAO - South Carolina

body_text: COLUMBIA, SOUTH CAROLINA —Raphiel Coleman, 37, of Columbia, has pleaded guilty in federal court to being a felon in possession of a firearm. Evidence obtained in the investigation revealed Richland County Sheriff’s Deputies were called to a convenience store on Broad River Road concerning a man with a gun. When the deputies arrived, they saw Coleman wearing the same clothing as the man described by the 911 caller. They ordered him to the ground, but Coleman fled behind the store. One deputy gave chase on foot and the other deputy followed in the police car. Eventually, they caught Coleman, and they found one .357 caliber bullet in his pocket. With the help of a police dog, they retraced their steps and found a handgun on the ground in a bush nearby. The police also found approximately 2 grams of marijuana in Coleman’s pocket. Federal law prohibits Coleman from possessing a firearm because of his prior convictions for burglary, possession of a stolen vehicle, failure to stop for a blue light, intimidation of a juror or witness, possession of less than 1 gram of methamphetamine, and pointing and presenting a weapon. Coleman faces a maximum penalty of 10 years federal prison. He also faces a fine of up to $250,000, restitution and 5 years, of supervision to follow the term of imprisonment. United States District Judge Sherri A. Lydon accepted the guilty plea and will sentence Coleman after receiving and reviewing a sentencing report prepared by the U.S. Probation Office. This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Richland County Sheriff’s Department. Assistant U.S. Attorney William K. Witherspoon is prosecuting the case. ###


title: Two Oakland Residents Charged With Crimes Related To Separate Alleged Schemes To Distribute Drugs In The Tenderloin Area

component: USAO - California, Northern

body_text: OAKLAND - Esmun Moyses Moral-Raudales and Omar Zelaya appeared in federal court today to face charges each was engaged in a separate scheme to distribute drugs, including fentanyl and methamphetamine, in the Tenderloin District of San Francisco. The announcement was made by United States Attorney Ismail J. Ramsey and U.S. Drug Enforcement Administration Acting Special Agent in Charge Bob P. Beris. The indictments against the defendants were unsealed by U.S. Magistrate Judge Lisa J. Cisneros during today’s proceedings. On March 7, 2023, a federal grand jury returned two indictments, one against Moral-Raudales, 27, and another against Zelaya, 26, both of Oakland. The government requested that the court detain both defendants. According to documents filed by the government in connection with its request to detain Moral-Raudales prior to trial, Moral-Raudales used a vehicle to commute back and forth from Oakland to his favored selling location in the Tenderloin. On January 17, 2023, Moral-Raudales allegedly sold fentanyl to an undercover officer in the Tenderloin. Law enforcement officers allegedly attempted to arrest Moral-Raudales on March 16, 2023, after he exited his residence in Oakland. Moral-Raudales allegedly tossed his backpack and fled but was eventually apprehended. The government argues that Moral-Raudales possessed—in his residence, car, backpack and on his person—over 3400 grams of suspected fentanyl (3205 grams of which was in powder form), over 50 grams of suspected methamphetamine, equipment for mixing and coloring fentanyl, over $10,000 in cash, and a “ghost gun.” At the time of his arrest, Moral-Raudales was on supervised release, having been previously convicted of a federal felony offense in July 2020. Moral-Raudales is charged with three counts of distributing a controlled substance in violation of 21 U.S.C. § 841(a)(1). The first count alleges he distributed methamphetamine to an undercover officer in the Tenderloin on January 10, 2023; the second count alleges he distributed methamphetamine to an undercover officer in the Tenderloin on February 7, 2023, and the third count alleges he distributed fentanyl to an undercover officer in the Tenderloin on February 7, 2023. As for Zelaya, undercover officers used text messages to contact the defendant by cell phone and arrange a meeting that was to take place on March 16, 2023. On that day, law enforcement officers allegedly observed Zelaya leave his residence and walk in the direction of the agreed-upon location. When officers attempted to arrest Zelaya, he fled and resisted arrest but was eventually apprehended. Zelaya allegedly tossed two bags of suspected narcotics as he ran from the officers. The two bags of contained over 100 grams of fentanyl and over 50 grams of methamphetamine. Zelaya is charged with five counts of distribution of a controlled substance, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C)— three counts pertain to the alleged distribution of fentanyl, one count pertains to the alleged distribution of cocaine, and one count pertains to the alleged distribution of methamphetamine. An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each defendant faces a maximum of twenty years in prison for each count pending against him (five counts are pending against Zelaya and three counts are pending against Moral-Raudales). In addition, for each count, the court may order the defendant to serve up to a lifetime of supervised release and to pay a fine of up to one million dollars. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Moral-Raudales’s next federal court appearance is scheduled for May 8, 2023, before Hon. James Donato, U.S. District Judge, for a status conference. Zelaya’s next federal court appearance is scheduled for April 11, 2023, before Hon. William Alsup, U.S. District Judge, for a status conference. Assistant U.S. Attorney George Hageman is prosecuting the case against Moral-Raudales with the assistance of Erick Machado. Special Assistant United States Attorney Anna Nguyen is prosecuting the case against Zelaya with the assistance of Amala James and Laurence Macaraeg. Both prosecutions are the result of investigations by the DEA.


title: Virginia Mayor Indicted for Violating Federal Clean Water Act

body_text: ROANOKE, Va. – A federal grand jury in Roanoke, Virginia has indicted James Howard Spencer, the Mayor of Glen Lyn, Virginia, for his alleged violation of the Clean Water Act (CWA). The CWA was enacted by Congress to restore and maintain the chemical, physical, and biological quality of the nation’s waterways. The indictment, returned under seal March 9, 2023 and unsealed following the defendant’s initial court appearance, charges Spencer with three counts of violating the CWA. “The protection of our nation’s waters is critical to ensuring environmental justice for all the residents of the Western District of Virginia,” United States Attorney Christopher R. Kavanaugh said today. “When individuals – especially those in positions of authority –pollute our rivers and streams in violation of the law, our Office will hold them accountable.” “The defendant abused his position of authority and violated the public’s trust by ordering public employees of Glen Lyn to illegally discharge raw sewage into the East River, a tributary of the New River,” said Acting Special Agent in Charge Richard Conrad. “EPA is committed to prosecuting those who choose to violate our environmental laws, especially those who hold a position of public trust such as Mayor Spencer.” The indictment alleges that Spencer directed employees of the Town of Glen Lyn to pump sewage and other pollutants from a pump station located behind the Glyn Lyn Post Office into the East River, which is a perennial stream and tributary of the New River. Spencer took these alleged actions on three separate occasions, in the summer of 2019, December 2020, and again in June 2021. United States Attorney Christopher R. Kavanaugh, Colonel Gary T. Settle, Superintendent of the Virginia State Police, and Acting Special Agent in Charge Richard Conrad made the announcement today. The ongoing investigation is being jointly handled by the Environmental Protection Agency’s Criminal Investigation Division and the Virginia State Police. Assistant U.S. Attorney and Environmental Justice Coordinator Michael Baudinet is prosecuting the case for the United States. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. ###