title: Migrant Smuggler Admits to Sexually Assaulting Juvenile During  Travel to the United States

component: USAO - California, Southern

body_text: NEWS RELEASE SUMMARY – November 2, 2023 SAN DIEGO – Cecilio Yonatan Jimenez-Bautista of Mexico pleaded guilty in federal court today to alien smuggling charges and admitted that, in carrying out those crimes, he sexually assaulted a 17-year-old female multiple times while traveling from Mexico to the United States. The minor was not accompanied by relatives or a guardian. According to his plea agreement, on multiple occasions from March 15, 2022, to June 29, 2022, Jimenez-Bautista led at least 25 undocumented aliens from Mexico into the United States. The smuggling fees ranged from at least $5,000 to $9,500 per migrant. In particular, from June 14, 2022, to June 16, 2022, Jimenez-Bautista and another individual led a group of 10 undocumented migrants from Tijuana, Baja California, Mexico to an area near Otay Lakes Road in Chula Vista, California. The group included the minor. Jimenez-Bautista admitted that on June 14 and 15, 2022, he isolated the juvenile from the group and touched her breasts and genitalia without permission. On June 16, 2022, he sexually assaulted her, causing serious bodily injury. “The defendant had no regard for this child’s humanity,” said U.S. Attorney Tara McGrath. “The brutal victimization of a 17-year-old minor is yet another example of the cruelty of smugglers who care only about profit.” “This guilty plea is a reminder of what the combined effort of law enforcement can accomplish,” said Chad Plantz, special agent in charge of HSI San Diego. “HSI special agents remain vigilant to investigate violent human smugglers capable of such revolting actions in the course of circumventing our country’s immigration laws.” “We continue to work with our local, state, and federal partners to deliver consequences to those nefarious characters who wish to inflict harm in our communities,” said San Diego Sector Chief Patrol Agent Patricia McGurk-Daniel. “We have zero tolerance for these types of actions, and we will do everything in our power to bring those responsible to justice.” The defendant is scheduled to be sentenced on January 29, 2024. This case is being prosecuted by Assistant U.S. Attorneys Katherine McGrath and Edward Chang of the Southern District of California, and Trial Attorney Danielle L. Hickman of the Human Rights and Special Prosecutions Section of the Criminal Division of the Department of Justice. DEFENDANTS Case Number 22cr1550-LL Cecilio Yonatan Jimenez-Bautista Age: 27 Mexico SUMMARY OF CHARGES Bringing an Alien to the United States for Financial Gain and Aiding and Abetting – Title 8, U.S.C., Section 1324(a)(2)(B)(ii), and Title 18, U.S.C., Section 2 Maximum penalty: Fifteen years (Five years mandatory minimum) and $250,000 fine AGENCY Homeland Security Investigations U.S. Border Patrol


title: Statement Of U.S. Attorney Damian Williams On The Conviction Of Samuel Bankman-Fried

component: USAO - New York, Southern

body_text: “Sam Bankman-Fried perpetrated one of the biggest financial frauds in American history – a multibillion-dollar scheme designed to make him the King of Crypto – but while the cryptocurrency industry might be new and the players like Sam Bankman-Fried might be new, this kind of corruption is as old as time. This case has always been about lying, cheating, and stealing, and we have no patience for it. When I became U.S. Attorney, I promised we would be relentless in rooting out corruption in our financial markets. This is what relentless looks like. This case moved at lightning speed – that was not a coincidence, that was a choice. This case is also a warning to every fraudster who thinks they’re untouchable, that their crimes are too complex for us to catch, that they are too powerful to prosecute, or that they are clever enough to talk their way out of it if caught . Those folks should think again, and cut it out. And if they don’t, I promise we’ll have enough handcuffs for all of them. This verdict would not have been possible without the amazing work by the career prosecutors from my Office and the FBI agents who have given their all for this case. We have pushed them hard, and they have delivered every step of the way. They are the best of the best, and I am grateful for them. This case has received a tremendous amount of attention, and I understand why that is, but the women and men of the Southern District of New York consistently deliver outstanding public service on behalf of the American people – without fear or favor and often without any public recognition. They do it because they believe in the rule of law, because they love this country, and because they are patriots. I am proud to serve with them.” * * * Bankman-Fried, 31, of Stanford, California, was convicted of two counts of wire fraud conspiracy, two counts of wire fraud, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years in prison. He was also convicted of conspiracy to commit commodities fraud and conspiracy to commit securities fraud, each of which carries a maximum sentence of five years in prison. The statutory maximum 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.


title: Greene County Felon Admits to Possessing Cocaine and Cocaine Base for Distribution, and Possessing Firearms in Furtherance of Drug Trafficking

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – Atniel Pagan, age 24, of Catskill, New York, pled guilty today to possessing and intending to distribute cocaine and cocaine base, and to possessing firearms in furtherance of a drug trafficking crime. The announcement was made by United States Attorney Carla B. Freedman; David L. McNulty, United States Marshal for the Northern District of New York; John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Albany Police Chief Eric Hawkins. Pagan admitted to possessing 225 grams of cocaine and 22 grams of cocaine base that he intended to sell at an apartment in Albany. Pagan, a previously convicted felon, further admitted to possessing a loaded privately manufactured, semi-automatic, AR-style rifle, and a loaded privately manufactured, semi-automatic pistol (a/k/a “ghost guns”), in order to guard against the potential theft of his drugs and drug money. Pagan was arrested at his apartment by the U.S. Marshals executing a state arrest warrant, and Albany Police subsequently obtained a warrant to search the apartment. Pagan faces at least 5 years and up to life in prison, a fine of up to $1 million, and a term of post-imprisonment supervised release of at least 3 years and up to life, when he is sentenced on March 1, 2024 by United States District Anne M. Nardacci. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. This case was investigated by the U.S. Marshals Service and Albany Police Department, with assistance provided by ATF and the Greene County District Attorney’s Office. Assistant U.S. Attorney Emmet O’Hanlon is prosecuting this 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.


title: Schenectady County Man Sentenced for Stealing Precious Metals from VA Dental Clinic

body_text: ALBANY, NEW YORK – Arthur Hanvey, age 65, of Delanson, New York, was sentenced today to 1 year of probation and to pay restitution for his theft of government property. United States Attorney Carla B. Freedman and Christopher Algieri, Special Agent in Charge of the Northeast Field Office of the United States Department of Veterans Affairs Office of Inspector General, made the announcement. As part of his guilty plea, Hanvey admitted that while employed as a dental technician at the Albany Stratton Veterans Affairs Medical Center, between October 2017 and May 2021, he stole and converted to his own use precious metals and noble alloys that were intended to be recycled and used to manufacture crowns, bridges and other dental prostheses, and then sold those precious metals to a third-party refinery for a profit. United States District Judge Anne M. Nardacci ordered Hanvey to pay $13,533.04 in restitution, which he paid at sentencing. The Department of Veterans Affairs Office of Inspector General investigated this case, and Assistant U.S. Attorney Alexander P. Wentworth-Ping prosecuted the case.


title: Hot Springs Man Sentenced to Life in Prison for Kidnapping a Minor Female

component: USAO - Arkansas, Western

body_text: HOT SPRINGS, AR. – A Hot Springs man was sentenced to life in prison yesterday and his co-defendant was sentenced today to 15 years in prison for the kidnapping of a minor female in April 2022. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings for the United States District Court in Hot Springs. According to court documents, Samuel Wayne Bolling Jr., age 40 and Dayla Diane Ferrer, age 21, entered into an agreement to kidnap a minor female in an attempt to extort money from her relatives. On April 18, 2022, Ferrer approached the minor female in the downtown area of Hot Springs, Arkansas and requested her assistance. The minor entered Ferrer’s vehicle where she was immediately attacked and restrained by Bolling. Contact was made with the minor’s family and Bolling demanded payment of $10,000 in exchange for her safe return. Bolling and Ferrer held the minor overnight before releasing her the next day. U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement. Hot Springs Police Department, FBI, Arkansas State Police, Garland County Sheriff's Office, Hot Springs County Sherriff's Office, and the Atoka (TN) Police Department investigated the case. Assistant U.S. Attorneys Bryan Achorn and Carly Marshall prosecuted the case. Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov


title: Utica Man Pleads Guilty to Fentanyl Conspiracy and Distribution

body_text: SYRACUSE, NEW YORK – Bernabe Lopez, age 58, of Utica, New York, pled guilty yesterday to conspiring to possess with intent to distribute fentanyl and distribution of fentanyl, announced United States Attorney Carla Freedman; Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division and Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI), New York Field Office. In pleading guilty yesterday, Lopez admitted that from May 2020 through October 2021, he acquired quantities of fentanyl from co-conspirators, which he then re-distributed to others in the Utica, New York area. Lopez admitted that the combined amount of fentanyl that he distributed during this time frame exceeded 40 grams. Lopez also admitted that during the conspiracy, he sold a cutting agent to member of the conspiracy for $10 a gram knowing that the co-conspirators were adulterating fentanyl with the cutting agent to increase volume for sales. Sentencing is scheduled for February 29, 2024, in front of United States District Judge David N. Hurd. Lopez faces a minimum of 5 years in prison, a maximum of 40 years imprisonment, a fine of up to $5 million, and a term of supervised release of at least 4 years and up to life. This case is being investigated by the U.S. Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations Division, Homeland Security Investigations, United States Immigration and Customs Enforcement and Removal Operations, New York State Police, Oneida County Sheriff’s Office, Oneida County District Attorney’s Office, Utica Police Department, Syracuse Police Department, Rome Police Department, Onondaga County Sheriff’s Office, Onondaga County District Attorney’s Office, New York Army National Guard Counter Drug Program, Yorkville Police Department, Whitesboro Police Department, and is being prosecuted by Assistant U.S. Attorney Tamara Thomson.


title: Attorney General Merrick B. Garland Statement on Guilty Verdict in Jury Trial of Sam Bankman-Fried

component: Office of the Attorney General

body_text: The Justice Department issued the following statement from Attorney General Merrick B. Garland on today’s jury conviction in the trial of Sam Bankman-Fried: “Sam Bankman-Fried thought that he was above the law. Today’s verdict proves he was wrong. This case should send a clear message to anyone who tries to hide their crimes behind a shiny new thing they claim no one else is smart enough to understand: the Justice Department will hold you accountable. I am grateful to the U.S. Attorney’s Office for the Southern District of New York and the FBI for their outstanding work in bringing Mr. Bankman-Fried to justice.”


title: Southern Pine Credit Union President and Controller Plead Guilty to Bank Fraud

component: Federal Bureau of Investigation (FBI)

body_text: VALDOSTA, Ga. – The former President and the former Controller of Southern Pine Credit Union in Valdosta both pleaded guilty to long-running multimillion-dollar bank loan and aggravated identity theft schemes. Teresa Paulo, of Valdosta, pleaded guilty to one count of bank fraud and one count of aggravated identity theft today. Co-defendant Leah Lehman, 63, of Valdosta, pleaded guilty to one count of bank fraud and one count of aggravated identity theft on Oct. 26. Both women face a maximum of 30 years in prison for bank fraud, and a mandatory two years in prison in addition to any other prison term imposed for aggravated identity theft, to be followed by a maximum of five years of supervised release and a $1,000,000 fine. U.S. District Judge W. Louis Sands is presiding over this case. Lehman’s sentencing date is scheduled for Feb. 28, 2024. Paulo’s sentencing date will be determined by the Court. The defendants are not eligible for parole. “As leaders of this credit union, the defendants knowingly put their members—local paper mill employees and their families—at great risk with their complex schemes to enrich themselves,” said U.S. Attorney Peter D. Leary. “I want to thank the FBI and FDIC investigators for unraveling their carefully engineered criminal fraud and helping us hold them accountable.” “These guilty pleas are the direct result of a diligent investigation by hardworking FBI employees and our partners at the Federal Deposit Insurance Corporation,” said Rich Bilson, Senior Supervisory Resident Agent of FBI Atlanta’s Valdosta office. “Paulo and Lehman’s greed driven scheme stole hundreds of thousands of dollars and damaged the financial security of innocent victims. They will now be held accountable for their blatant misuse of the power of their positions.” According to court documents, Lehman served as President of Southern Pine Credit Union (SPCU) in Valdosta from 1990 to 2020. Paolo was SPCU’s controller from Oct. 2011 to June 2020. The Credit Union’s members are employees of the local paper mill and their families. Lehman and Paolo were both authorized to originate all types of loans, were responsible for filing quarterly reports to the National Credit Union Administration (NCUA) and had access to all SPCU employees’ usernames and passwords for all SPCU computers and software. Lehman began her fraud in June 2003, when she created a share secured loan in a SPCU account using the name and social security number of a member without that individual’s knowledge. From Feb. 2012 to May 31, 2020, Lehman paid off the loan and rebooked it multiple times with additional advances. She would take the proceeds and put them in a joint share draft account she had with the individual, using the proceeds to pay for a boat, a hunting club share, personal expenses and gifts to family members. This loan was repaid in full. However, Lehman created another share secured loan in another individual’s name without their knowledge and would also pay off the loan and rebook it multiple times for personal spending. To conceal these activities, Lehman created false credit transactions using the names and passwords of SPCU employees. These transactions would advance the due date on the loans, which prevented these loans from appearing on quarterly call reports to the NCUA and allowed Lehman to defer or not make payment on these loans. Following these transactions, Lehman created debit entries to put the loans back on the accounts, which would often include interest accrued on the outstanding loans. She made additional fraudulent loan advances simultaneously with those entries to advance the loan dates. She reflected the loans as being paid off at the end of the quarter to prevent possible detection of artificial growth in the SPCU loan portfolio. In total, the drafts needed to pay off the loan balances at each quarter grew to $4,112,870.63, excluding payments and interest, as of May 31, 2020. Paulo committed a similar fraud scheme to Lehman. In Oct. 2011, Paulo created a share secured loan in a SPCU account using the name and social security number of a member without that individual’s knowledge. From Nov. 2011 until May 29, 2020, Paulo took out additional advances on the loan as well as additional loans from the account. Paulo would transfer the loan proceeds into a joint account for personal spending purposes. She created another share secured account using the personal identity of another individual and would pay off the loan and rebook it multiple times with additional advances, using the proceeds for her own personal expenses or electronically transfer money into her family’s accounts. Paulo concealed her schemes as Lehman concealed hers: creating false credit transactions using the usernames and passwords of SPCU employees to simulate the payoff of the loans, which would advance the due date on the loans. Paulo also created debit entries using other people’s usernames and passwords to put the loans back on the accounts, which would often include interest accrued on the outstanding loans. The drafts needed to pay off the loan balances at each quarter grew to $1,233,201.77, excluding payments and interest, as of May 31, 2020. Paulo made $7,736.16 in legitimate payments to the loan balances. The case was investigated by the FBI and the Federal Deposit Insurance Corporation (FDIC). Assistant U.S. Attorney Hannah Couch is prosecuting this case for the Government.


title: Middle District Of Florida Agencies And Stakeholders Awarded More Than $20 Million In Funding For Investments In Public Safety

component: USAO - Florida, Middle

body_text: The Justice Department announced today several new commitments as part of its Comprehensive Strategy for Reducing Violent Crime . Instituted by Attorney General Merrick B. Garland in May 2021, the strategy focuses on harnessing federal resources, intelligence, and expertise as a force-multiplier with state, local, and Tribal law enforcement. Deputy Attorney General Lisa O. Monaco and Associate Attorney General Vanita Gupta highlighted the more than $334 million in critical grant funding to law enforcement agencies and stakeholders awarded today by the Office of Community Oriented Policing Services (COPS Office).The COPS grants announced today include funding to help law enforcement agencies hire over 1,730 new law enforcement officers across the country while also providing critical funding to support school safety and continue to advance community policing nationwide. Through this funding, U.S. Attorney’s Office for the Middle District of Florida (MDFL) is pleased to announce that the Department’s COPS Office has awarded $20,677,053 in the MDFL to combat violent crime and maintain public safety. “Law enforcement officers across the country are showing up every day to protect their communities in the face of unprecedented challenges,” said Attorney General Merrick B. Garland. “These grants, which support the hiring of more than 1,700 new officers and make critical investments in school safety and crisis intervention efforts, will help provide local law enforcement agencies with the resources they need to keep their communities safe, support officers, and build public trust.” “The more than $20 million in grant funding awarded to recipients in our district will help our law enforcement partners to continue to keep our communities safe,” said U.S. Attorney Handberg. “This funding will support the hiring of more than 180 new officers in our district, promote community policing, as well as provide funds for law enforcement mental health and wellness.” Lastly, the Deputy Attorney General and Associate Attorney General announced that this December 11-13, in Indianapolis, the Justice Department’s will bring together 1,500 local and federal partners from across the country, including representatives from the more than 50 PSP jurisdictions and from Project Safe Neighborhoods for a Violent Crime Reduction Summit, to be hosted by OJP BJA. Complete lists of all program award recipients, including funding amounts, can be found here .


title: New York man pleads guilty to using explosive device near victim’s Butler County home

component: USAO - Ohio, Southern

body_text: CINCINNATI – A New York man pleaded guilty in federal court here today to possessing an unregistered incendiary device. Farhan Jami, 28, of East Meadow, New York, admitted to placing and lighting an explosive device on top of a car at a victim’s residence in Butler County. According to court documents, in May 2023, Jami flew from New York to Ohio and brought thermite (an explosive powder) and sparklers with him on the flight. In the early morning hours of May 16, Jami traveled to a residence in Butler County and constructed an incendiary device using the thermite, sparklers and a ceramic pot. He placed the device on the hood of a car at the home and lit the sparklers. He left as the fire began. Home security footage shows Jami wearing a hat, surgical mask and gloves while placing and lighting the device before walking away. While responding to the scene, officers located Jami in a vehicle nearby. His shirt and pants had red residue on them consistent with thermite. Officers also discovered the lighter, hat, mask and gloves used during the crime, as well as a bag of thermite. Possessing an unregistered destructive device is a federal crime punishable by up to 10 years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors. Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); announced the guilty plea entered today before U.S. District Judge Matthew W. McFarland. Assistant United States Attorneys Timothy S. Mangan and Ryan A. Keefe are representing the United States in this case. # # #


title: Norfolk Man Sentenced to more than 11 Years’ Imprisonment for Possession of Methamphetamine

component: USAO - Nebraska

body_text: Acting United States Attorney Susan Lehr announced that Rafael Hernandez, 30, of Norfolk, Nebraska, was sentenced on November 1, 2023, in federal court in Omaha for possession with intent to distribute more than 500 grams of methamphetamine. United States District Court Judge Brian C. Buescher sentenced Hernandez to 140 months’ imprisonment. There is no parole in the federal system. After Hernandez’s release from prison, he will begin a 5-year term of supervised release. On August 27, 2022, a Platte County Sheriff's Deputy saw a vehicle driving southbound on Highway 81 in Platte County Nebraska with a defective headlight. A traffic stop was initiated and while the deputy spoke to the driver, he detected the odor of burnt marijuana and conducted a search of the vehicle. Prior to the search, the passenger was identified as Rafael Hernandez and registered owner of the vehicle. As the search moved to the trunk, Hernandez stated that the vehicle was his, everything in it was his, and that the driver had no knowledge of it. It was at this time that a drawstring backpack was located in the trunk containing 1.14 kilograms of meth. Both the driver and Hernandez were transported to the Platte County Detention Facility where Hernandez said the driver had nothing to do with the drugs and that Hernandez didn't want to get him in trouble. The driver was not charged. This case was investigated by the Platte County Sheriff's Office and Columbus Police Department.


title: Omaha Man Sentenced for Aiming Laser Pointer at OPD Helicopter

body_text: Acting United States Attorney Susan Lehr announced that Richard C. Detty, 34, of Omaha, Nebraska, was sentenced on November 1, 2023, in federal court in Omaha for aiming a laser pointer at an aircraft. United States District Court Judge Brian C. Buescher sentenced Detty to 15 months’ imprisonment. There is no parole in the federal system. After Detty’s release from prison, he will begin a 2-year term of supervised release. At about 9:30 pm on October 23, 2021, Detty was outside his workplace in Omaha when he aimed a laser pointer at a helicopter flying overhead. It was the Omaha Police Department helicopter, which was on patrol at the time. The beam illuminated the helicopter’s cockpit. The pilot was startled but maintained level flight, and neither the pilot nor the observer in the helicopter were injured. This case was investigated by the Federal Bureau of Investigation and the Omaha Police Department.


title: Gering Man Sentenced for Bank Fraud

body_text: Acting United States Attorney Susan Lehr announced that George Liakos, 64, of Gering, Nebraska, was sentenced on October 27, 2023, in federal court in Lincoln, Nebraska for Bank Fraud. Senior United States District Court Judge John M. Gerrard sentenced Liakos to 36 months’ imprisonment. There is no parole in the federal system. After Liakos’s release from prison, he will begin a 5-year term of supervised release. As part of his sentence, Liakos was ordered to pay $5,059,035.43 in restitution to First Interstate Bank. Great Western Bank, which was subsequently acquired by First Interstate Bank, was a banking corporation with locations in Iowa, Colorado, South Dakota, and Nebraska, including a banking office in Scottsbluff, Nebraska. Great Western Bank’s deposits were insured by the Federal Deposit Insurance Corporation. Liakos conducted a farming operation in Bayard, Nebraska, primarily growing beans, corn and sugar beets as well as raising cattle for sale. Beginning in April 2017 and continuing through May 2019, Liakos misrepresented the amount of commodities he had in storage, cattle inventory, and acreage of crops and concealed his debt from Great Western Bank in order to secure approximately $11 million in loans. As a part of his scheme to obtain money from Great Western Bank, on June 2, 2017, Liakos executed Loans and a Security Agreement with Great Western Bank. The loans and security agreement consisted of a revolving line of credit, machinery and equipment loan and a livestock loan. In approving the Loans and Security Agreement, Great Western Bank relied upon information provided by Liakos reflecting current commodity and livestock inventory, accounts receivable, loans, and accounts payable which he knew materially overstated his commodity inventory and materially understated and failed to report loans and accounts payable. As part of this agreement, Liakos granted Great Western Bank a security interest in assets and farm products as collateral for the loan. As a result of the Liakos’s scheme and artifice to defraud, Great Western Bank sustained a financial loss of $3,940,007.80. After the sentencing, FBI Omaha Special Agent in Charge Eugene Kowel said, “George Liakos’ crime may not have been violent, but there were real victims. His years of lies and falsifying documents led to a local bank’s loss of more than seven million dollars. Today’s sentence illustrates the FBI’s mission to investigate complex fraud cases and bring to justice those who enrich themselves at the expense of others by breaking the law.” Matthew T. Wilkins, Acting Special Agent-in-Charge, U.S. Department of Agriculture-Office of Inspector General said “I want to thank the US Attorney’s Office, OIG special agents, and our investigative partners for their hard work on this investigation. When the integrity of the United States Department of Agriculture’s farm loan programs is violated by criminal conduct, the Office of Inspector General will pursue justice to the fullest extent of the law.” Acting United States Attorney Susan T. Lehr stated, “Today’s sentencing is the product of nearly four years of investigating and prosecuting Liakos for making material misrepresentations to the Commodity Credit Corporation and Great Western Bank to obtain significant lines of credit. His misrepresentations and actions resulted in millions of dollars in loss being sustained by Great Western Bank. Today’s result reflects our office’s commitment to work with our federal partners such as the FBI and USDA-OIG to bring white collar criminals to justice.” This case was investigated by the United States Department of Agriculture – Office of the Inspector General and the Federal Bureau of Investigation.


title: Cedar Rapids Man Convicted of Methamphetamine Distribution and Money Laundering Crimes

component: USAO - Iowa, Northern

body_text: A man who conspired with others to distribute methamphetamine and commit money laundering was convicted by a jury on November 2, 2023, after a four-day trial in federal court in Cedar Rapids, Iowa. Albert McReynolds, age 35, from Cedar Rapids, Iowa, was convicted of one count of conspiracy to distribute methamphetamine, one count of conspiracy to commit money laundering, and one count of engaging in a monetary transaction in property derived from a specified unlawful activity. The verdict was returned following about an hour of jury deliberations. The evidence at trial showed that McReynolds was a methamphetamine dealer in the Cedar Rapids, Iowa, area. Between September 2020 and continuing to about November 2021, McReynolds conspired with others to distribute methamphetamine in Cedar Rapids. The evidence at trial showed that McReynolds had a source of supply in California who was sending packages containing methamphetamine through the United States Postal Service to several addresses in Cedar Rapids. McReynolds would have the packages sent to other individuals’ addresses to avoid having the methamphetamine delivered directly to him. Investigators intercepted and searched three packages that were mailed from California to addresses associated with McReynolds in Cedar Rapids. In each of those packages, investigators located multiple pounds of methamphetamine. In total, investigators identified 46 packages mailed from California to the Cedar Rapids, Iowa, area between September 2020 and November 2021 that all shared similar characteristics to the packages investigators intercepted and searched. These 46 packages had a combined total mailing weight of over 700 pounds. The evidence at trial showed that, between October 2020 and continuing to November 2021, McReynolds conspired with others to commit money laundering. McReynolds and others would distribute the methamphetamine McReynolds received from California. McReynolds would vacuum-seal the money that he made from selling methamphetamine, and McReynolds and others would send packages containing cash through the United States Postal Service to multiple different addresses associated with his methamphetamine source in California. McReynolds and others would place fake names and addresses on the return labels of the packages containing methamphetamine so law enforcement would not be able to link McReynolds and his co-conspirators to those packages. On July 28, 2021, McReynolds mailed a package from Cedar Rapids, Iowa, to an address associated with his source in California. Investigators intercepted and searched that package and located $56,470 in cash. Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. McReynolds remains in custody of the United States Marshal pending sentencing. McReynolds faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,750,000 fine, and a lifetime of supervised release following any imprisonment. The case is being prosecuted by Assistant United States Attorneys Adam J. Vander Stoep and Shawn S. Wehde and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the United States Postal Inspection Service, the Internal Revenue Service, and the Drug Enforcement Administration (DEA) Task Force. The DEA Task Force consists of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, and the Iowa Division of Narcotics Enforcement. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 22-CR-91-CJW. Follow us on Twitter @USAO_NDIA.


title: Former Crack Dealer Sent Back to Federal Prison for Derecho Fraud

body_text: A former crack dealer who received approximately $1,900 in Federal Emergency Management Agency (FEMA) benefits after falsely claiming to have suffered damage in the 2020 derecho storm in Cedar Rapids was sentenced on November 1, 2023, to 90 days in federal prison. Melvin McKinney, age 41, from Cedar Rapids, received the prison term after a June 15, 2023, guilty plea to one count of theft of government funds. In a plea agreement, and at the sentencing hearing, McKinney admitted that he stole $1,902.62 in FEMA benefits, specifically personal property and rental assistance. McKinney spent the stolen funds at gas stations, restaurants, and Victoria’s Secret. In August 2020, the derecho swept through the Northern District of Iowa. The derecho caused an estimated $7.5 billion in damage within the State of Iowa and other affected states. The Northern District of Iowa, including the City of Cedar Rapids, was particularly hard-hit from the derecho, with estimated 100‑130 mph straight-line winds. FEMA declared Disaster No. 4557 for the State of Iowa on August 17, 2020. Derecho victims could apply to FEMA for disaster relief assistance to help meet repair and replacement expenses not otherwise covered by private insurance. In September 2020, McKinney received the FEMA funds after a false and fraudulent application for derecho benefits was filed in his name. Specifically, the application falsely stated that (1) McKinney was living in an apartment in Cedar Rapids at the time of the derecho, and (2) McKinney suffered both home and personal property damage from the derecho. In conjunction with the application, McKinney provided FEMA with the name of a fictitious landlord, “Willie Davis,” and McKinney pretended to be the same individual when FEMA attempted to verify that McKinney was entitled to derecho benefits. McKinney also lied to a FEMA investigator on the telephone, falsely stating that (1) his apartment building had lost almost half of its shingles, (2) the building’s central air conditioning units were blown over and damaged, (3) the windows to his apartment were blown out, (4) there was drywall and ceiling damage in his apartment, and (5) McKinney’s personal furnishings were damaged. All of these representations and statements were false: McKinney was not even a tenant of the apartment building, which suffered no significant damage in the derecho. When confronted by law enforcement agents, McKinney initialed lied about the theft but eventually confessed. McKinney has a serious criminal history. In 2006, McKinney was convicted of multiple crack cocaine conspiracy and distribution charges in the United States District Court for the Southern District of Iowa and sentenced to 78 months’ imprisonment. In 2015, after his release from federal prison, McKinney was convicted of domestic abuse. McKinney was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. McKinney was sentenced to 90 days’ imprisonment. He was ordered to make $1,902.62 in restitution to FEMA. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. McKinney was released on the bond previously set and is to surrender to the United States Marshal on December 4, 2023, at 10 a.m. The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the United States Department of Homeland Security, Office of Inspector General. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl . The case file number is 23-CR-38-CJW-MAR. Follow us on Twitter @USAO_NDIA.


title: Former chief scientist at the Georgia Tech Research Institute sentenced for conspiring to defraud Georgia Tech and the CIA

component: USAO - Georgia, Northern

body_text: ATLANTA - James G. Maloney, who served as the Chief Scientist for the Georgia Tech Research Institute (GTRI), has been sentenced to federal prison for conspiring to defraud Georgia Tech and the Central Intelligence Agency (CIA). Maloney’s co-conspirators, James J. Acree and James D. Fraley, III—both of whom pleaded guilty in 2016 and cooperated with the government—were also sentenced. “Maloney, who was trusted to work on classified contracts for the U.S. government, took advantage of his high position at GTRI to line his own pockets at the public’s expense,” said U.S. Attorney Ryan K. Buchanan. “In addition to losing his job and his top-secret security clearance, Maloney is now facing a prison sentence and will be required to pay more than $1.9 million in restitution.” “Maloney’s sentence should send a clear message to anyone seeking to abuse their positions for personal gain, the FBI will find you and hold you accountable”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “Thanks to our extraordinary partnership with Georgia Tech, even with Maloney’s defense tactics he was unable to avoid the consequences of his crimes. He will now be held accountable with his coconspirators, closing out this lengthy case.” According to U.S. Attorney Buchanan, the charges, and other information presented in court: From early 2007 through late 2013, Maloney, Acree, and Fraley engaged in a scheme to defraud Georgia Tech and the CIA. The men are experts in electromagnetic analysis and measurements and were assigned to GTRI’s Advanced Concepts Laboratory (ACL), where they worked on projects funded by the United States Department of Defense, various intelligence agencies, and private industry. PCard Fraud As part of his duties and responsibilities at GTRI, Fraley had access to a Georgia Tech credit card known as a “PCard.” Fraley was only authorized to use his PCard to purchase materials and supplies for official Georgia Tech business. Neither Fraley nor anyone else was allowed to charge personal expenses on a PCard. Maloney, Acree, and Fraley falsely led GTRI to believe that all of their PCard charges were for official business. In fact, they charged approximately $200,000 in frivolous personal expenses on Fraley’s PCard. Maloney and Fraley also used Fraley’s PCard to pay for remodeling and maintenance expenses related to six rental properties that they owned together in the name of a Georgia corporation called J’s Services, Inc. Some of the fraudulent PCard charges and some of the remodeling and maintenance expenses for Maloney and Fraley’s rental properties were fraudulently charged to a classified GTRI contract funded by the CIA. Fraudulent Consulting Activity In February 2007, Maloney and Acree were reprimanded by GTRI for engaging in outside consulting activity that violated Georgia Tech’s conflict-of-interest policy. Maloney and Acree sent a letter to their supervisor at GTRI, acknowledging that they had used facilities and equipment owned by Georgia Tech for their personal gain and benefit and promising that they would never do so again. But Maloney and Acree continued to engage in outside consulting activity that harmed Georgia Tech, and they were soon joined by Fraley. Tec-Masters Inc. From December 2007 through March 2013, while they were employed full-time by Georgia Tech, Maloney, Acree, and Fraley received approximately $500,000 from Picatinny Arsenal, SRA International, and the U.S. Air Force. They obtained those consulting contracts by using Acree’s former employer, Tec-Masters, Inc., as a billing pass-through. Tec-Masters, a defense contractor located in Huntsville, Alabama, performed no labor on any of the projects but merely facilitated the transfer of money from the customers to Maloney, Acree, and Fraley. Maloney, Acree, and Fraley falsely led those customers to believe that the work would be done by GTRI. They fostered this false impression by using their official GTRI telephone numbers and GTRI email addresses in their communications with customers. In addition, they met with customers at GTRI’s headquarters on the Georgia Tech campus and gave customers tours of GTRI’s labs and other facilities. Maloney called this conduct “hiding in plain sight.” Spectra Research, Inc. From December 2010 through July 2013, Maloney and Fraley also moonlighted as consultants for Spectra Research, Inc., a defense contractor located in Dayton, Ohio. Spectra paid J’s Services $196,000 for this work. Maloney and Fraley directed Georgia Tech employees under their supervision at GTRI to help perform this consulting work for Spectra. Maloney and Fraley also directed those Georgia Tech employees to bill time for Spectra work to a classified CIA contract, even though that contract had nothing to do with Spectra. In their outside consulting work, Maloney, Acree, and Fraley violated Georgia Tech’s conflict-of-interest policy and code of business conduct; diverted customers and revenue away from Georgia Tech for their personal gain; and used Georgia Tech facilities and equipment for their personal benefit. Cover-up During a routine audit in early 2013, Georgia Tech discovered problematic charges on Fraley’s PCard and scheduled a meeting with him. Maloney suggested to Acree and Fraley that they meet to get their “story straight.” Fraley, fearing that Maloney would seek to shift all the blame to him, recorded the cover-up meetings and provided those recordings to the FBI. In their cover-up meetings, Maloney asked Acree and Fraley to help him create a fictitious story to mislead Georgia Tech auditors. Maloney also suggested that they try to force Georgia Tech to shut down the audit by telling the auditors that the items charged to Fraley’s PCard were purchased for use on a classified CIA contract, and that the auditors did not need to know further details. That false narrative foreshadowed Maloney’s planned defense in the criminal case. James G. Maloney, 58, of Marietta, Georgia, was sentenced to five years, ten months in prison to be followed by three years of supervised release and ordered to pay restitution of $1,972,543.61. Maloney was convicted on these charges on May 22, 2023, after he pleaded guilty. James J. Acree, 58, of Atlanta, Georgia, was sentenced to serve three years on probation, with the first 12 months to be served on home confinement, and ordered to pay restitution of $604,692.56. Acree was convicted on these charges on August 15, 2016, after he pleaded guilty. James D. Fraley, III, 45, of Canton, Georgia, was sentenced to serve three years on probation, with the first eight months to be served on home confinement, and ordered to pay restitution of $476,960.95. Fraley was convicted on these charges on September 2, 2016, after he pleaded guilty. This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys John Russell Phillips and Stephen H. McClain and Trial Attorney Emma D. Ellenrieder of the Department of Justice National Security Division’s Counterintelligence and Export Control Section prosecuted the case. For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga .


title: Shreveport Man with Numerous Felony Convictions Sentenced to 12 + Years in Federal Prison

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

body_text: SHREVEPORT, La. – United States Attorney Brandon B. Brown announced that Odis L. Taylor , 33, of Shreveport, Louisiana , has been sentenced by United States District Judge Donald E. Walter to 145 months (12 years, 1 month) in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. According to information presented in court, on January 26, 2021, Taylor was found in possession of a Glock Model 23 Gen 4, .40 caliber pistol, near the intersection of Mable and Darien Streets in Shreveport. Shreveport Police Department (“SPD”) officers responded to a call that day and found fourteen (14) .40 caliber shell casings near a store on Mable Street. On February 4, 2021, Taylor was arrested by SPD officers near Bringhurst Drive in Shreveport and found in possession of a vehicle with a Glock Model 23 Gen 4, .40 caliber pistol located in plain view partially under the driver’s seat. A search warrant was executed by law enforcement officers and inside Taylor’s vehicle was a box of ammunition, an extra magazine, and a smartphone. The firearm that was seized from Taylor was test fired by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) and placed into the National Integrated Ballistic Information Network (NIBIN) system. The NIBIN system found the firearm to match the .40 caliber shell casings which were recovered on January 26, 2021, from the intersection of Mable and Darien Streets. Testing and analysis performed on the recovered firearm found Taylor’s DNA on the firearm. Taylor is a convicted felon, having numerous felony convictions in Caddo Parish, including first degree robbery in 2010, attempted possession of a firearm by a convicted felon in 2014, and domestic abuse battery second offense and cruelty to juveniles in 2019. He knew that as a convicted felon he was prohibited from possessing any firearm or ammunition. Taylor was charged in an indictment on March 23, 2022, and pleaded guilty on January 24, 2023, to two counts of felon in possession of a firearm. The case was investigated by ATF and Shreveport Police Department and prosecuted by Assistant United States Attorney Cytheria D. Jernigan. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn . # # #


title: Jacksonville Woman Arrested For Conspiracy To Create And Distribute Animal Crush Videos

body_text: Jacksonville, Florida – United States Attorney Roger B. Handberg announces the arrest and filing of a criminal complaint charging Nicole Danielle Devilbiss (35, Jacksonville) with conspiracy to create and distribute animal crush videos. If convicted, Devilbiss faces a maximum penalty of five years in federal prison. A detention hearing has been set for Devilbiss on November 1, 2023, at 1:00 p.m. Animal crushing is defined under federal criminal law as “actual conduct in which one or more living non-human mammals, birds, reptiles, or amphibians, is purposely crushed, burned, drowned, suffocated, impaled, or otherwise subjected to serious bodily injury.” According to court documents, an investigation into a group on a mobile phone application revealed users were arranging the creation and sharing of videos depicting animal crush videos involving primates. The group chat was dedicated to the abuse, torture, and death of monkeys of various ages. The investigation identified Devilbiss as one of the administrators of the group and determined that she removed people from the group, commented on the abuse of the primates in the videos, and shared videos depicting primates being tortured. A complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty. This case was investigated by the Clay County Sheriff’s Office, the Jacksonville Sheriff’s Office, the St. Johns County Sheriff’s Office, and Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Ashley Washington.


title: Louisiana Physician Convicted of Tax Evasion

component: Tax Division

body_text: A federal jury in Baton Rouge found a Louisiana physician guilty yesterday of income tax evasion. According to court documents and evidence presented at trial, Dr. Melissa Rose Barrett of Baton Rouge, owned and operated two urgent care clinics – Central STAT Care and STAT Care Clinic – and owed the IRS approximately $1.6 million in taxes, excluding penalties and interest. The IRS notified Dr. Barrett that she owed taxes multiple times and through various means. The evidence at trial showed that Dr. Barrett undertook a number of steps to evade the payment of her outstanding tax liability, including preparing and filing with the IRS a false form underreporting income and inaccurately detailing her assets and accumulating and concealing cash in a safe instead of depositing it in the bank. Dr. Barrett also purchased millions of dollars of real estate and personal property in the names of nominees, including, but not limited to, a personal residence, a boat, an airplane and several parcels of farmland. Dr. Barrett faces a maximum penalty of five years in prison as well as a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Ronald C. Gathe Jr. for the Middle District of Louisiana made the announcement. IRS-Criminal Investigation is investigating the case. Trial Attorney Wilson Stamm of the Tax Division and Assistant U.S. Attorneys Edward Warner and Elizabeth White for the Middle District of Louisiana are prosecuting the case.


title: XTO Agrees to Pay $16 Million to Resolve Natural Gas Royalty Underpayments to the United States

component: Civil Division

body_text: XTO Energy Inc. has agreed to pay $16 million to resolve False Claims Act allegations that it knowingly underpaid royalties owed on natural gas produced from federal and Native American lands. The settlement resolves allegations that the company improperly deducted costs necessary to put the gas in marketable condition, deducted costs of transporting carbon dioxide and failed to pay royalties on carbon dioxide. “Mineral royalties provide an important source of income for the United States, Native Americans and various states,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates that the department will hold accountable those who knowingly take improper advantage of our public resources.” “Taxpayers expect that every penny of these royalties gets paid,” said U.S. Attorney Cole Finegan for the District of Colorado. “Our office will make sure that energy companies pay what they owe when they take natural gas from leases on Native American and federal lands.” “This recovery of unpaid mineral royalties is the direct result of the Department of Justice, Department of Interior (DOI)’s Office of Inspector General (OIG), DOI’s Office of Natural Resources Revenue and DOI’s Office of the Solicitor working diligently to ensure that revenues generated from resources under Federal jurisdiction are properly accounted for and collected on behalf of the mineral owners and the American public,” said Special Agent in Charge Ron Gonzales of the DOI-OIG’s Energy Investigations Unit. Congress allows federal and Native American lands to be leased for the production of natural gas in exchange for the payment of royalties on the value of the gas produced. Lessees must put the gas in marketable condition at no cost to the United States. The settlement resolves allegations that when reporting and paying royalties from January 2009 to August 2017, XTO knowingly deducted payments to third parties for gas transportation and processing that included costs to place the gas in marketable condition. The settlement also resolves claims that from January 2009 to June 2016, XTO knowingly and improperly deducted from federal royalty payments on natural gas the costs of transporting carbon dioxide entrained in that gas, and that from May 2010 to March 2016, XTO failed to pay federal royalties owed on carbon dioxide produced at the Castle Valley Plant in Utah. Through a series of settlements since 2017, the department and its agency partners have used the False Claims Act to recover $25 million from energy companies that improperly deducted the costs of putting their gas in marketable condition. The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the District of Colorado, DOI-OIG’s Energy Investigations Unit, DOI’s Office of the Solicitor and DOI’s Office of Natural Resources Revenue. The matter was handled by Senior Trial Counsel Gregory Pearson of the Civil Division and Assistant U.S. Attorney Amanda Rocque for the District of Colorado. The claims resolved by the settlement are allegations only, and there has been no determination of liability. Settlement


title: Attorney Pleads Guilty to Defrauding Business Seeking  to Buy Personal Protective Equipment

body_text: NEW ORLEANS – FRANK LABRUZZO pleaded guilty on October 31, 2023, to a bill of information for conspiring with co-defendant, Cynthia Caronna, and a United Kingdom resident, to defraud a business seeking to purchase personal protective equipment (PPE) at the height of the COVID-19 pandemic, announced U.S. Attorney Duane A. Evans. Caronna and the UK resident formed a business to sell PPE, and selected LABRUZZO to be the business’s escrow agent. LABRUZZO , an attorney employed as an investigator with the Louisiana Attorney General’s Office, was represented to PPE buyers as a trustworthy escrow agent. Buyers were told that LABRUZZO would safeguard their purchase funds in an escrow account until the PPE was satisfactorily delivered. According to court records, the conspirators agreed that LABRUZZO would disburse the buyers’ funds despite the buyers having neither received PPE nor consented to the disbursements. The conspirators also agreed that each of them would receive portions of the buyers’ funds without the buyers’ knowledge or consent. U.S. District Judge Greg G. Guidry scheduled LABRUZZO’s sentencing for February 6, 2023. Conspiracy is punishable by up to five years imprisonment, followed by up to three years of supervised release, a fine of up to $250,000, and a mandatory $100 special assessment fee. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form This case was being investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Chandra Menon of the Public Integrity Unit is in charge of the prosecution.


title: Man Sentenced for Federal Firearm And Drug Trafficking  Charges Stemming From  New Orleans Hotel Shootout

body_text: NEW ORLEANS, LOUISIANA – BRIAN JACOB , age 23, from New Orleans, was sentenced on October 31, 2023 for various firearm and drug charges stemming from his participation in a December 28, 2020, shootout at the Jung Hotel on Canal Street, announced U.S. Attorney Duane A. Evans. On May 23, 2023, JACOB pled guilty to Counts 1, 2, and 3 of the superseding bill of information, that charged him with possessing firearms in furtherance of a drug trafficking crime (Count 1); participating in a conspiracy to possess with the intent to distribute quantities of marijuana (Count 2); and illegally maintaining a drug involved premises (Count 3). United States District Court Judge Greg G. Guidry sentenced JACOB to 37-months imprisonment on Counts 2 and 3, and to 60-months imprisonment on Count 1, which must run consecutively to the sentences imposed on Counts 2 and 3. Therefore, JACOB received a total sentence of 97 months imprisonment, to be followed by five years’ supervised release. JACOB must also pay a $300.00 special assessment fee. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department. Assistant United States Attorneys Maurice E. Landrieu, Jr. of the Narcotics Unit and Elizabeth Privitera, Chief of the Violent Crime Unit are in charge of the prosecution.


title: Senior Public Relations Firm Executive Pleads Guilty To Defrauding His Employers Of Millions Of Dollars

body_text: Damian Williams, the United States Attorney for the Southern District of New York, announced that ANDREW GARSON, a public relations executive, pled guilty today in Manhattan federal court in connection with a scheme to defraud his former employers of millions of dollars. Pursuant to his plea agreement with the Government, GARSON agreed to pay $3,754,068 in restitution to the victims of his crime. GARSON pled guilty before U.S. District Judge Laura Taylor Swain and is scheduled to be sentenced on February 28, 2024. U.S. Attorney Damian Williams said: “Andrew Garson betrayed his employers time and time again, causing millions of dollars in losses, and when he no longer had an employer to defraud, he applied for and received thousands of dollars in unemployment benefits to which he was not entitled. Garson’s fraud scheme was multifaceted and manipulative, and he has now admitted to greedily exploiting his employers’ trust to line his own pockets.” According to the allegations in the Indictment and other filings and statements made in court: Between approximately 2014 and 2018, GARSON was employed as an executive at two different marketing public relations agencies located in New York, New York, the first between approximately 2014 and January 2018 (“PR Firm-1”), and the second between approximately January 2018 and November 2018 (“PR Firm-2”). In his respective roles at those two firms, GARSON was responsible for working directly with clients, coordinating various marketing and public relations campaigns, and managing vendor relationships in connection with such campaigns. In or about July 2018, GARSON was named a “40 Under 40” public relations executive by PR Week Magazine. However, GARSON engaged in a scheme to lie to his two employers for years, causing his employers millions of dollars in losses. One such series of misrepresentations by GARSON resulted in the unauthorized payment by PR Firm-2 of expenses owed to vendors in connection with marketing campaigns led by GARSON while employed at PR Firm‑1. Over the course of GARSON’s first several months of employment at PR Firm-2, GARSON lied to certain vendors, stating that PR Firm-2 had agreed to cover expenses still owed to those vendors related to GARSON’s prior projects at PR Firm-1. In fact, PR Firm-2 did not authorize the payment of those expenses. In order to cause PR Firm-2 to effect payment of these expenses, GARSON created fraudulent invoices falsely claiming that the vendors were due payment for work performed on PR Firm-2 projects. In this fashion, GARSON caused PR Firm-2 to pay substantial expenses to vendors with which GARSON had worked on projects while employed at PR Firm-1. In addition, while employed at PR Firm-1, GARSON used his corporate credit card for unauthorized personal expenses. For example, in or about August 2017, GARSON purchased a luxury watch using his PR Firm-1 corporate credit card for approximately $14,000, claiming that the expense related to event production for a client marketing event. GARSON later sold the watch to a New Jersey jewelry store in or about December 2018 for approximately $4,000. GARSON deposited the money that he earned from the sale of the watch into his personal bank account. GARSON similarly defrauded PR Firm-2 with respect to the unauthorized use of his corporate credit card. For example, GARSON submitted expense reports to PR Firm-2 in which he claimed the same expense for reimbursement on more than one occasion, causing PR Firm-2 to reimburse GARSON twice for the same expenditure. After uncovering certain aspects of the fraud scheme perpetrated by GARSON, PR Firm-2 terminated GARSON in or about November 2018. While applying for unemployment insurance program benefits from the New York State Department of Labor following his termination, GARSON lied regarding the circumstances surrounding his separation from PR Firm-2. As a result of his misrepresentations, between in or about December 2018 and in or about March 2019, GARSON received a total of over $5,000 in unemployment insurance benefits to which he was not entitled. * * * GARSON, 41, of Rockville Centre, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Williams praised the outstanding investigative work of 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. Attorney Timothy V. Capozzi is in charge of the prosecution.


title: Sex Offender Sentenced To 87 Months For Second Child Pornography Conviction

component: USAO - Alabama, Southern

body_text: MOBILE, AL – Larry Dale Barlow, 30, has been sentenced to 87 months in prison for one count of Possession of Child Pornography. Barlow entered a guilty plea to this offense on April 19, 2023. According to court documents filed in connection with his guilty plea, in December 2012 Barlow was convicted in federal court in Mobile of receipt and distribution of child pornography. Barlow was sentenced on May 20, 2013 in that case to 120 months in prison and a lifetime term of supervised release. On March 7, 2022, Barlow’s probation officer conducted a home visit at Barlow’s residence in Mobile. The probation officer located a cell phone, which Barlow was not permitted to possess. The phone was seized by probation officer. Barlow was interviewed and admitted to receiving and viewing videos of child pornography. The phone was examined and found to contain 171 images and 113 videos of child pornography. Images included depictions of prepubescent children. Senior United States District Judge Callie V.S. Granade imposed an 87-month sentence of incarceration and a 10-year term of supervised release upon his discharge from prison. Senior Judge Granade further ordered that Barlow pay $100 in a special assessment and $3,000 in restitution. Barlow will be required to register as a sex offender when he is released from prison and is to have no contact with minors. The United States Probation Office and Federal Bureau of Investigation (FBI) investigated this case. Assistant United States Attorney Kacey Chappelear prosecuted the case. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit https://www.justice.gov/psc/publications-resources


component: USAO - Colorado

body_text: XTO Energy Inc. has agreed to pay $16 million to resolve False Claims Act allegations that it knowingly underpaid royalties owed on natural gas produced from federal and Native American lands. The settlement resolves allegations that the company improperly deducted costs necessary to put the gas in marketable condition, deducted costs of transporting carbon dioxide and failed to pay royalties on carbon dioxide. “Mineral royalties provide an important source of income for the United States, Native Americans and various states,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates that the department will hold accountable those who knowingly take improper advantage of our public resources.” “Taxpayers expect that every penny of these royalties gets paid,” said U.S. Attorney Cole Finegan for the District of Colorado. “Our office will make sure that energy companies pay what they owe when they take natural gas from leases on Native American and federal lands.” “This recovery of unpaid mineral royalties is the direct result of the Department of Justice, Department of Interior (DOI)’s Office of Inspector General (OIG), DOI’s Office of Natural Resources Revenue and DOI’s Office of the Solicitor working diligently to ensure that revenues generated from resources under Federal jurisdiction are properly accounted for and collected on behalf of the mineral owners and the American public,” said Special Agent in Charge Ron Gonzales of the DOI-OIG’s Energy Investigations Unit. Congress allows federal and Native American lands to be leased for the production of natural gas in exchange for the payment of royalties on the value of the gas produced. Lessees must put the gas in marketable condition at no cost to the United States. The settlement resolves allegations that when reporting and paying royalties from January 2009 to August 2017, XTO knowingly deducted payments to third parties for gas transportation and processing that included costs to place the gas in marketable condition. The settlement also resolves claims that from January 2009 to June 2016, XTO knowingly and improperly deducted from federal royalty payments on natural gas the costs of transporting carbon dioxide entrained in that gas, and that from May 2010 to March 2016, XTO failed to pay federal royalties owed on carbon dioxide produced at the Castle Valley Plant in Utah. Through a series of settlements since 2017, the department and its agency partners have used the False Claims Act to recover $25 million from energy companies that improperly deducted the costs of putting their gas in marketable condition. The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the District of Colorado, DOI-OIG’s Energy Investigations Unit, DOI’s Office of the Solicitor and DOI’s Office of Natural Resources Revenue. The matter was handled by Senior Trial Counsel Gregory Pearson of the Civil Division and Assistant U.S. Attorney Amanda Rocque for the District of Colorado. The claims resolved by the settlement are allegations only, and there has been no determination of liability.


title: Founders and Executives of Digital-Asset Company Charged in Multi-Million Dollar International Fraud Scheme

component: USAO - New York, Eastern

body_text: An indictment was unsealed today in federal court in Brooklyn charging Braden John Karony, Kyle Nagy, and Thomas Smith with conspiracy to commit securities fraud, conspiracy to commit wire fraud and money laundering conspiracy for their roles in defrauding investors in a decentralized finance digital asset called “SafeMoon” (SFM) that was issued by their company SafeMoon LLC. As alleged, the defendants lied to SFM investors concerning whether SFM’s use of ‘locked’ liquidity was inaccessible to the defendants, as well as their personal holding and trading of SFM. As SFM’s market capitalization grew to more than $8 billion, the defendants fraudulently diverted and misappropriated millions of dollars’ worth of purportedly “locked” SFM liquidity for their personal benefit. Earlier today, Karony was arrested in Provo, Utah, and Smith was arrested in Bethlehem, New Hampshire. Nagy remains at large. Breon Peace, United States Attorney for the Eastern District of New York; James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI); and Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York Field Office (IRS-CI), announced the arrests and charges. “As alleged, the defendants deliberately misled investors and diverted millions of dollars to fuel their greedy scheme and enrich themselves by purchasing a custom Porsche sports car, other luxury vehicles and real estate,” stated United States Attorney Peace. “As fraudsters increasingly use digital assets to mislead investors and misappropriate funds, our Office will be at the forefront of pursuing them and their ill-gotten gains. We will continue our focus in the digital asset space and bring those who defraud investors in this area to justice.” Mr. Peace expressed his appreciation to the U.S. Securities and Exchange Commission for its assistance with the case. “As alleged, SafeMoon’s executives grew their company value to over $8 billion, but instead of rewarding their clients as promised, their insatiable greed led them to spend millions of dollars on their own lavish desires. Today, no luxury vehicles or sprawling real estate can protect them from the consequences of such crimes,” said Ivan J. Arvelo, Special Agent in Charge of Homeland Security Investigations, New York. “HSI New York will relentlessly pursue individuals who seek to exploit investors and the American financial system for their own gain.” “Although this fraud scheme may be complex, the end result is simple—theft. Investors were assured their money would be safe while the defendants allegedly misled investors and diverted millions of dollars to line their pockets and their driveways. Through cryptocurrency tracing and good old-fashioned police work, IRS-CI New York’s Cyber and J5 groups worked with our investigative partners to track the millions in diverted funds and arrest the perpetrators of this con,” stated IRS-CI Special Agent-in-Charge Fattorusso. Background on SFM As alleged, SFM tokens were digital assets first issued in March 2021 by SafeMoon LLC on a public blockchain. Through the operation of SFM’s smart contracts, every transaction in SFM was automatically subject to a 10% tax, meaning, for example, that if a holder of SFM transferred 10 SFM to another user, 1 SFM would automatically be retained from the transfer as a tax, and the remaining 9 SFM would be received by the other party. As marketed to SFM investors, the proceeds of SFM’s 10% tax were split into two 5% tranches, the proceeds of which were supposed to benefit holders of SFM in specific ways. The first 5% tranche of the tax proceeds would be “reflected” back to, and distributed among, all SFM holders, in proportion to their current SFM holdings and thereby increase the total quantity of SFM held by every SFM investor automatically. The remaining 5% tranche of SFM tax proceeds would be deposited into designated SFM liquidity pools. The larger the SFM liquidity pool, the greater the liquidity in the market for SFM. In the months after its launch in March 2021, SFM grew to have more than one million holders and a market capitalization of more than $8 billion. The Defendants’ Fraudulent Scheme As alleged, the defendants misrepresented to investors various material aspects of the SFM offering, including that SFM relied on “locked” liquidity pools that would automatically increase in size due to a 10% tax imposed on every SFM transaction; that the “locked” SFM liquidity pool prevented the defendants and other insiders at SafeMoon from being able to “rug pull”—a type of crypto fraud—SFM investors by removing liquidity from the SFM liquidity pool; that tokens in the liquidity pool would not be used to enrich the SafeMoon developers, including the defendants; that the defendants would manually add token pairs to the SFM liquidity pool when transactions of SFM occurred on specific centralized exchanges; and that the developers were not holding and trading SFM for their benefit. In reality, the defendants allegedly retained access to the SFM liquidity pools and they used that access to intentionally divert and misappropriate millions of dollars’ worth of tokens from the SFM liquidity pools for their personal benefit. In addition, although they publicly denied that they personally held or traded SFM, the defendants repeatedly bought and sold SFM for their personal benefit, including at the height of SFM’s market price, which generated millions of dollars in profits. The defendants masked their movement of the fraudulent proceeds via numerous private un-hosted crypto wallet addresses, complex transaction routing, and pseudonymous centralized exchange accounts. The defendants used some of these proceeds to purchase luxury vehicles and real estate in New Hampshire, Utah, and Florida. Smith, for example, using cryptocurrency addresses he controlled, sent 2,900 Binance Coin (BNB) worth more than approximately $860,000 and traceable to the SFM liquidity pool to a third party’s cryptocurrency address in order to purchase a custom Porsche 911 sportscar and non-fungible token. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Drew G. Rolle, Matthew R. Galeotti and John O. Enright are in charge of the prosecution with assistance from Paralegal Specialist Jacob Menz. The Defendants : BRADEN JOHN KARONY (also known as “John Karony” and “CPT HODL T MUN”) Age: 27 Provo, Utah KYLE NAGY (also known as “Safemoon Dev”) Age: 35 Vero Beach, Florida THOMAS SMITH (also known as “papa”) Age: 35 Bethlehem, New Hampshire E.D.N.Y. Docket No. 23-CR-433


title: Former Employee Of San Francisco Money Services Business Charged With Conspiring To Launder Drug Proceeds

component: USAO - California, Northern

body_text: SAN FRANCISCO – The United States Attorney’s Office has charged Yessenia Margarita Barrientos-Lainez—a former employee of a money services business in the Tenderloin district—with conspiring to launder drug proceeds by wiring large sums of money abroad for a known drug trafficker in the San Francisco Bay Area, announced United States Attorney Ismail J. Ramsey; Drug Enforcement Administration (DEA), San Francisco Field Division, Special Agent in Charge Brian M. Clark; and Internal Revenue Service, Criminal Investigation (IRS-CI), Oakland Field Office, Special Agent in Charge Darren Lian. Barrientos made her initial federal court appearance on October 27 before U.S. Magistrate Judge Thomas S. Hixson to face the charge against her. According to a federal criminal complaint, Barrientos, 42, of Daly City, California, worked as a teller at a money services business located in San Francisco until mid-May 2023 and used her position there to launder the drug proceeds of an unnamed co-conspirator—a man who was known to DEA agents as a Bay Area drug trafficker and who was arrested in possession of narcotics on June 1, 2023, in Daly City—by wiring significant sums of cash to various foreign bank accounts, including some in Mexico, at the unnamed co-conspirator’s direction. Specifically, the complaint alleges that, on May 1, 2023, when she was still working as a teller at the money services business, Barrientos sent her unnamed co-conspirator text messages saying that her boss had left and therefore that the unnamed co-conspirator could send her information and come drop off cash. The complaint also alleges that, in the approximately two hours that followed, (i) the unnamed co-conspirator sent Barrientos a text message containing a photograph depicting three handwritten names and bank account numbers; and (ii) Barrientos sent her unnamed co-conspirator several messages containing photographs of receipts showing thousands of dollars being wired to each of the three names and account numbers depicted in the photograph she had earlier received from her unnamed co-conspirator. The complaint further alleges that records received from the money services business confirm Barrientos processed each of the three transactions, and that each of the three recipient bank accounts was located in Mexico, including two in Sinaloa. And the complaint alleges that Barrientos charged her unnamed co-conspirator an “under-the-table fee” to process the three wires, each of which she structured to “evad[e] certain reporting requirements.” Finally, the complaint alleges that there is other evidence of Barrientos’ money laundering activity. For example, the complaint alleges that surveillance footage from the money services business from April 25, 2023, shows Barrientos (i) walking outside to retrieve a white plastic bag from an unknown individual in a parked car; (ii) bringing the white plastic bag inside the money services business and placing it under her teller station; (iii) pulling large amounts of cash from the bag and running it through a money counting machine; (iv) processing wire transfers with no customers present at her teller window; and (v) using her cellphone to take photographs of the cash and receipts. Barrientos was arrested on October 26, 2023, and was released on bond at her initial appearance the following day. Her next scheduled appearance is on November 2, 2023. A complaint merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum prison sentence of 20 years and a maximum fine of $500,000 or twice the value of the laundered funds, whichever is greater. As part of any sentence, the court also may order the defendant to pay restitution, if appropriate, and to serve an additional term of supervised release to begin after any prison sentence is complete. 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. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Assistant U.S. Attorney Nicholas M. Parker is prosecuting the case. The prosecution is the result of an investigation by the DEA and IRS-CI.


title: Alexandria Man Pleads Guilty to $1.2M COVID Fraud Scheme

component: USAO - Virginia, Eastern

body_text: ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to conspiring to fraudulently obtain Paycheck Protection Program (PPP) loans, unemployment insurance, and other pandemic benefits. According to court documents, from approximately October 2020 through September 2021, George Mensah, Jr., 32, conspired with others to prepare fraudulent PPP loans and unemployment insurance claims under the CARES Act. Mensah admitted that he and his coconspirators prepared and submitted over 47 applications for PPP loans for fake businesses. At least 21 of these applications were funded by lenders, which caused an actual loss of at least $583,172. In addition, Mensah admitted that he and his co-conspirators obtained the personally identifiable information of others, including identity theft victims, in order to make claims for pandemic unemployment benefits in Virginia and elsewhere. Mensah admitted that he and his co-conspirators obtained at least $658,952 in fraudulently obtained unemployment insurance and pandemic benefits. Mensah is scheduled to be sentenced on February 14, 2024. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Javan Wilson, Special Agent in Charge of the U.S. Department of Treasury, Office of Inspector General; and Troy W. Springer, Special Agent in Charge, National Capital Region, U.S. Department of Labor, Office of Inspector General, made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the plea. The Fairfax County Police Department also provided significant assistance in the investigation. Assistant U.S. Attorneys Kimberly Shartar and Kathleen Robeson and Special Assistant U.S. Attorney Ezra Spiro are prosecuting the case. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-168.


title: Western Massachusetts Man Sentenced to 14 Years for Attempted Enticement of Minor

component: USAO - New York, Northern

body_text: ALBANY, NEW YORK – James Macko, age 23, of North Adams, Massachusetts, was sentenced today to 14 years in prison for the attempted coercion and enticement of an 11-year-old child. United States Attorney Carla B. Freedman and Alfred A. Watson, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement. Macko previously pled guilty and admitted that between November 29, 2022 and December 9, 2022, he exchanged text messages and phone calls with someone he believed to be an 11-year-old child. In those communications, Macko attempted to coerce and entice the child into sexual contact with him. Macko ultimately planned to meet the child in a state park in Western Massachusetts, where he intended to perform sexual acts on the child in a cave. On December 9, 2022, Macko left his home in North Adams to meet the child and was arrested shortly thereafter, carrying with him candy, liquor he planned to give the child, and a length of rope with which he intended to tie the child down. United States District Judge Anne M. Nardacci also imposed a 20-year term of post-imprisonment supervised release. He will also be required to register as a sex offender upon his release from prison. This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the Colonie Police Department and the New York State Police. Assistant United States Attorney Benjamin S. Clark prosecuted the case as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc .


title: Readout of the Justice Department Hosting the First Day of the 2023 International Counter Ransomware Initiative Summit

body_text: Yesterday, the White House hosted representatives from nearly 50 countries for the first day of the third annual International Counter Ransomware Initiative Summit at the Justice Department. The Summit is the largest international partnership dedicated to disrupting the broader ecosystem that fuels ransomware attacks. In his opening remarks kicking off the Summit, Attorney General Merrick B. Garland underscored the strength and successes of international partnerships in disrupting ransomware threats as well as mitigating broader cybersecurity risks. The Attorney General discussed the efforts of the Justice Department and its international partners to dismantle and disrupt an international ransomware network known as the “Hive,” responsible for extorting and attempting to extort hundreds of millions of dollars from victims in the United States and around the world. The Attorney General also noted that in the wake of the Oct. 7th attacks in Israel, he directed the Justice Department to offer assistance to Israeli investigators and law enforcement partners to help “identify, investigate, and disrupt financial flows and other material support to Hamas – including in the form of cryptocurrency.” The delegation from Israel was able to join the Summit virtually. Deputy Attorney General Lisa O. Monaco discussed the Department’s support for its Israeli partners and all of the international partnerships showcased at the Summit, stressing that these cross-border relationships are some of the most powerful tools the Justice Department has to disrupt the ransomware ecosystem and prevent attacks before they happen. She highlighted how these partnerships have led to synchronized and coordinated international operations that have imposed serious costs and consequences for malicious ransomware actors. In the past year, these operations have included the takedown of two of the largest online criminal marketplaces – BreachForums and Genesis Market – within two weeks of each other as well as the dismantlement of several cryptocurrency mixers and exchanges responsible for the laundering of millions of dollars in ransomware proceeds. The Summit continues through today, with members discussing areas for further coordination against increasingly sophisticated ransomware attacks.


title: Four Utah Residents Prosecuted for Gun Related Offenses, Firearms Allegedly Intended for Mexico

component: USAO - Utah

body_text: SALT LAKE CITY – Four Salt Lake County residents are accused of participating in the purchase of or attempted purchase of numerous firearms in Utah and supplying them to Mexico. According to court documents, Jose Manuel Barbosa Torres, 36, of West Valley City, Utah; Armando Figueroa Jr., 20, of Magna, Utah; Cecilio Luis Arriaga, 27, of West Valley City; and Iliana Dennis, 20, of West Valley City, were charged in a sealed indictment on Oct. 18, 2023. The defendants are accused of purchasing or attempting to purchase numerous Barrett .50 BMG caliber rifles between April 2023 and August 2023. The purchases were from Federal Firearm Licensees (FFLs). These firearms typically retail between $8,500 to $10,000. In furtherance of the crime, each defendant filled out an ATF Form 4473, wherein they indicated they were the actual transferee/buyer of the firearm and certified the submitted information was accurate, when it was false. In August 2023, agents intercepted Barbosa Torres and Dennis during an attempted firearm purchase. Barbosa Torres allegedly told agents Dennis was purchasing the firearm at his request, and that the firearm was ultimately destined for Cesar Rivera, who was in Arizona. During the investigation, Barbosa Torres again acknowledged the firearms were being purchased for Rivera, and stated Rivera was sending the firearms to Culiacán, Mexico. Rivera recently appeared before the U.S. District Court in the District of Utah for a firearms case in Arizona. He was arrested in Utah on Oct. 23, 2023, at Barbosa Torres’ West Valley City residence. Barbosa Torres, Figueroa, Arriaga, and Dennis were also arrested on Oct. 23, 2023, on warrants related to the indictment. Barbosa Torres is charged with making false statements during the acquisition or attempted acquisition of firearms, and aiding and abetting. Figueroa, Arriaga and Dennis are also charged respectively in the indictment. All defendants had their initial court appearances and detention hearings on Oct. 27, 2023. Figueroa, Arriaga, and Dennis were released from custody on conditions. Barbosa Torres was ordered detained pending trial. A five-day jury trial is scheduled for Dec. 15, 2023, at 8:30 a.m. in courtroom 8.3 before a U.S. District Court Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City. U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is investigating the case. Assistant United States Attorney Victoria McFarland of the District of Utah is prosecuting the case. This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. Attachments: barbosatorres_etal_indictment.pdf barbosatorresdetentionmemo.pdf


title: Justice Department Leaders Join Maryland Attorney General to Announce Hate Crime Grants

component: Office of Justice Programs (OJP)

body_text: Justice Department officials joined leaders and community partners from the state of Maryland on Monday to announce new federal investments aimed at combatting hate crimes across the country, as well as to highlight current national and local efforts addressing the devastating impact of hate crimes past and present. Maryland was chosen as a host site because the state has become a national model in addressing hate crimes. Associate Attorney General Vanita Gupta joined Assistant Attorney General Amy L. Solomon, Maryland Attorney General Anthony G. Brown and Acting Director Justin Lock of the Community Relations Service (CRS) in delivering opening remarks for the event. Associate Attorney General Gupta announced $38 million in fiscal year 2023 DOJ funding will go to law enforcement and community programs and partners nationwide to help communities heal from hate crimes of the past, investigate and prosecute current cases and prevent future hate crimes. “This is more than we have awarded in the last two years combined, which shows — in real dollars — our continued and increased commitment to this work,” said Associate Attorney General Gupta. Assistant Attorney General Solomon echoed the Associate Attorney General’s emphasis of current national investments in hate crime prevention, and lauded the innovative work being done in Maryland, referencing the state’s “groundbreaking work … to root out hate and reconcile past wrongs that have left a legacy of pain in local communities.” Acting Director Lock highlighted a growing partnership between hate crime grantees and the CRS , while Maryland Attorney General Brown spoke to the importance of federal funding in shaping the state’s approach to hate crime. Office of Justice Program (OJP) grants helped establish the Maryland Lynching Truth and Reconciliation Commission , the first body of its kind in the United States. Opening speakers and the announcement of grant awards were followed by an expert panel discussion dedicated to addressing hate crimes. The panel was moderated by Director Karhlton F. Moore of the Bureau of Justice Assistance (BJA). Panel participants included Chief Zenita Wickham Hurley of the Office of Equity, Policy and Engagement, Maryland Office of the Attorney General; Director Dr. Nancy La Vigne of the National Institute of Justice (NIJ); Executive Director Renee Battle-Brooks of the Prince George’s County Office of Human Rights; Chair Dr. David Fakunle of the Maryland Lynching Truth and Reconciliation Commission Representing the National Great Blacks in Wax Museum; and Deputy Director Sarah Mersky Miicke of the Baltimore Jewish Council. Deputy Associate Attorney General Saeed Mody provided closing remarks for the event, noting the rise in hate crimes in recent years, including the record number reported in 2022. He reinforced the department’s unwavering commitment to combating hate through federal law enforcement efforts and federal resources that support state and local community-based organizations and law enforcement agency partners. 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 equity and fairness in the administration of justice; assist victims; and uphold the rule of law. More information about OJP and its components can be found at www.ojp.gov . Associate Attorney General Vanita Gupta delivers remarks at Reconciling the Past, Building the Future: Law Enforcement and Community Partnerships Against Hate Assistant Attorney General Amy Solomon delivers remarks at Reconciling the Past, Building the Future: Law Enforcement and Community Partnerships Against Hate BJA Director Moore (left) and NIJ Director La Vigne (second from right) sit on a panel at Reconciling the Past, Building the Future: Law Enforcement and Community Partnerships Against Hate Acting CRS Director Justin Lock delivers remarks at Reconciling the Past, Building the Future: Law Enforcement and Community Partnerships Against Hate


title: Dallas Man Pleads Guilty to Firing at ATF Agent

body_text: A Dallas man who shot at an ATF agent in an apparent fit of road rage pleaded guilty Tuesday, announced U.S. Attorney for the Northern District of Texas Leigha Simonton. Michael Fagan, 30, was charged via criminal complaint in April 2023 and was indicted in May 2023. He pleaded guilty to one count of assaulting a federal officer using a deadly or dangerous weapon before U.S. Magistrate Judge Irma Carrillo Ramirez on Tuesday. According to plea documents, on April 6, an ATF agent stopped at a red light at the intersection of Garland Road and Gaston Avenue in East Dallas observed the SUV’s driver, later identified as Mr. Fagan, inside the vehicle yelling and flailing his arms. Thinking the driver might be experiencing an emergency, the agent rolled down his front passenger window and asked if the driver was okay. Mr. Fagan opened his driver-side door and began yelling incoherently at the agent, who instructed Mr. Fagan to get back in his vehicle. Mr. Fagan re-entered his vehicle, leaned over the passenger seat, and turned around to face the agent holding a black semiautomatic pistol in his hand. The agent ducked down below the dashboard, and heard a gun discharge. The agent drew his weapon and fired three shots, hitting Mr. Fagan once. Mr. Fagan fled the scene and was later arrested after he was admitted to Baylor hospital. Mr. Fagan now faces up to 20 years in federal prison. The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, the Dallas Police Department, and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorney Robert Withers is prosecuting the case.