HOUSTON – Twenty-one members of a massive India-based fraud and money laundering conspiracy that defrauded thousands of U.S. residents of hundreds of millions of dollars were sentenced this week to terms of imprisonment up to 20 years. Three other conspirators were sentenced earlier this year for laundering proceeds for the conspiracy, which was operated out of India-based call centers that targeted U.S. residents in various telephone fraud schemes. This week’s sentencing hearings took place in Houston before the Honorable David Hittner of the Southern District of Texas.

Attorney General Jeff Sessions of the U.S. Department of Justice, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Acting Executive Associate Director Derek N. Benner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA), and Special Agent in Charge David Green of the U.S. Department of Homeland Security (DHS) Office of Inspector General (OIG) made the announcement today.

“The stiff sentences imposed this week represent the culmination of the first-ever large scale, multi-jurisdiction prosecution targeting the India call center scam industry,” said Sessions. “This case represents one of the most significant victories to date in our continuing efforts to combat elder fraud and the victimization of the most vulnerable members of the U.S. public. The transnational criminal ring of fraudsters and money launderers who conspired to bilk older Americans, legal immigrants and many others out of their life savings through their lies, threats and financial schemes must recognize that all resources at the Department’s disposal will be deployed to shut down these telefraud schemes, put those responsible in jail and bring a measure of justice to the victims.”

“This type of fraud is sickening,” said Patrick. “However, after years of investigation and incredible hard work by multiple agents and attorneys, these con artists are finally headed to prison. Their cruel tactics preyed on some very vulnerable people, thereby stealing millions from them. These sentences should send a strong message that we will follow the trail no matter how difficult and seek justice for those victimized by these types of transnational schemes. We will simply not stand by and allow criminals to use the names of legitimate government agencies to enrich themselves by victimizing others.”

“Today’s sentences should serve as a strong deterrent to anyone considering taking part in similar scams, and I hope that they provide a sense of justice to the victims as well,” said Benner. “There is no safe haven from U.S. law enforcement. HSI will continue to utilize our unique investigative mandate, in conjunction with our local, state and Federal partners, to attack and dismantle the criminal enterprises who would seek to manipulate U.S. institutions and taxpayers.”

“The sentences imposed on these defendants validate our efforts to bring to justice scammers who defraud taxpayers by impersonating employees of the IRS,” said George. “I wish to thank the Department of Justice, the multiple federal agencies involved and most importantly, my own investigators who continue to devote countless hours to these cases. Taxpayers must remain wary of unsolicited telephone calls from individuals claiming to be IRS employees. If any taxpayer believes they or someone they know is a victim of an IRS impersonation scam, they should report it to TIGTA at www.tigta.gov> or by calling 1-800-366-4484.”

“The sentences imposed this week provide a clear deterrent to those who would seek to enrich themselves by extorting the most vulnerable in our society,” said Green. “These scammers should know that their actions carry real consequences, both for their victims and for themselves, and that there are dedicated agents and prosecutors who will go above and beyond to find them, identify them and hold them accountable for their crimes.”

Miteshkumar Patel, 42, of Illinois, was sentenced to serve 240 months in prison followed by three years of supervised release on the charge of money laundering conspiracy. According to the factual basis of his plea agreement, Patel served as the manager of a Chicago-based crew of “runners” that liquidated and laundered fraud proceeds generated by callers at India-based call centers. Those callers used call scripts and lead lists to target victims throughout the United States with telefraud schemes in which the callers impersonated U.S. government employees from the IRS and U.S. Citizenship and Immigration Services (USCIS). The callers duped victims into believing that they owed money to the U.S. government and would be arrested or deported if they did not pay immediately. After the victims transferred money to the callers, a network of U.S.-based runners moved expeditiously to liquidate and launder fraud proceeds through the use of anonymous stored value cards. In addition to recruiting, training and tasking runners in his crew, Patel also coordinated directly with the Indian side of the conspiracy about the operation of the scheme. Patel was held accountable for laundering between $9.5 and $25 million for the scheme.

Hardik Patel, 31, of Illinois, was sentenced to serve 188 months in prison followed by three years of supervised release on the charge of wire fraud conspiracy. Hardik Patel consented to removal to India upon completion of his prison term. According to the factual basis of his plea agreement, Hardik Patel was a co-owner and manager of an India-based call center involved in the conspiracy. In addition to managing the day-to-day operations of a call center, Patel also processed payments and did bookkeeping for the various call centers involved in the fraud scheme.  One of the India-based co-defendants with whom Patel communicated about the scheme was Sagar “Shaggy” Thakar, a payment processor that Indian authorities arrested in April 2017 in connection with call center fraud. After moving to the United States in 2015, Hardik Patel continued to promote the conspiracy by recruiting runners to liquidate fraud proceeds. He was held accountable for laundering between $3.5 and $9.5 million dollars for the scheme.

Sunny Joshi, aka Sharad Ishwarlal Joshi and Sunny Mahashanker Joshi, 47, of Sugar Land, Texas, was sentenced to serve 151 months in prison on the charge of money laundering conspiracy and 120 months in prison for naturalization fraud to run concurrently followed by three years of supervised release. According to the factual basis of his plea agreement, Joshi was a member of a Houston-based crew of runners that he co-managed with his brother, co-defendant Mike Joshi aka Rajesh Bhatt. Sunny Joshi communicated extensively with India-based co-defendants about the operations of the scheme and was held accountable for laundering between $3.5 and $9.5 million. Additionally, in connection with his sentence on the immigration charge, Judge Hittner entered an order revoking Joshi’s U.S. citizenship and requiring him to surrender his certificate of naturalization.

Twenty-two of the defendants sentenced before Judge Hittner were held jointly and severally liable for restitution of $8,970,396 payable to identified victims of their crimes. Additionally, the court entered individual preliminary orders of forfeiture against 21 defendants for assets that were seized in the case, and money judgments totaling more than $72,942,300.

Eighteen other defendants were also sentenced in Houston before Judge Hittner this week:

•       Fahad Ali, 25, of Indiana, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner also recommended deportation upon completion of his sentence.

•       Montu Barot, 30, of Illinois, was sentenced to serve 63 months in prison followed by three years of supervised release on one count of conspiracy. Judge Hittner entered a stipulated judicial order to remove Barot to India at the conclusion of his sentence.

•       Rajesh Bhatt, aka Mike Joshi, 53, of Sugar Land, Texas, was sentenced to serve 145 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Bhatt to India at the conclusion of his sentence.

•       Ashvinbhai Chaudhari, 28, of Pearsall, Texas, was sentenced to serve 87 months in prison followed by three years of supervised release on one count of money laundering conspiracy.

•       Jagdish Chaudhari, 39, of Alabama, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Chaudhari to India at the conclusion of his sentence.

•       Rajesh Kumar, 39, of Arizona, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy.

•       Jerry Norris, 47, of California, was sentenced to serve 60 months in prison followed by three years of supervised release on one count of conspiracy.

•       Nilesh Pandya, 54, of Stafford, Texas, was sentenced to serve three years of probation  on one count of conspiracy.

•       Nilam Parikh, 46, of Alabama, was sentenced to serve 48 months in prison followed by three years of supervised release on one count of money laundering conspiracy.

•       Bharatkumar Patel, 43, of Illinois, was sentenced to serve 50 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a judicial order to remove Patel to India at the conclusion of his sentence.

•       Bhavesh Patel, 47, of Alabama, was sentenced to serve 121 months in prison followed by three years of supervised release on one count of money laundering conspiracy.

•       Dilipkumar A. Patel, 53, of California, was sentenced to serve 108 months in prison followed by three years of supervised release on one count of conspiracy. Judge Hittner entered a stipulated judicial order to remove Patel to India at the conclusion of his sentence.

•       Dilipkumar R. Patel, 30, of Florida, was sentenced to serve 52 months in prison followed by three years of supervised release on one count of conspiracy.

•       Harsh Patel, 28, of New Jersey, was sentenced to serve 82 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner also recommended deportation upon completion of his sentence.

•       Nisarg Patel, 26, of New Jersey, was sentenced on one count of conspiracy. He received a prison term of 48 months in prison followed by three years of supervised release.

•       Praful Patel, 50, of Florida, was sentenced to serve 60 months in prison followed by Three years of supervised release on one count of conspiracy.

•       Rajubhai Patel, 32, of Illinois, was sentenced to serve 151 months in prison followed by three years of supervised release on one count of money laundering conspiracy.

•       Viraj Patel, 33, of California, was sentenced to serve 165 months in prison followed by three years of supervised release on one count of money laundering conspiracy. Judge Hittner entered a stipulated judicial order to remove Patel to India at the conclusion of his sentence.

In addition to these 21 defendants, three others were previously sentenced for their involvement in the same fraud and money laundering scheme:

•       Asmitaben Patel, 34, of Illinois, was sentenced before Judge Hittner on March 23. She received 24 months in prison on the charge of conspiracy.

•       Dipakkumar Patel, 38, of Illinois, was sentenced before Judge Eleanor L. Ross in the Northern District of Georgia, on Feb. 14. Patel, who pleaded guilty to charges of conspiracy and passport fraud, was sentenced to serve a prison term of 51 months, to run concurrently. He was also ordered to pay restitution in the amount of $128,006.26.

•       Raman Patel, 82, of Arizona, was sentenced before Judge John Tuchi in the District of Arizona on Jan. 29. In connection with his plea agreement, Raman Patel received a probationary sentence for his plea to conspiracy. He was also ordered to pay restitution in the amount of $76,314.38.

According to various admissions made in connection with the defendants’ guilty pleas, between 2012 and 2016, the defendants and their conspirators perpetrated a complex fraud and money laundering scheme in which individuals from call centers located in Ahmedabad, India, frequently impersonated officials from the IRS or USCIS in a ruse designed to defraud victims located throughout the United States. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Once a victim provided payment, the call centers turned to a network of runners based in the United States to liquidate and launder the extorted funds as quickly as possible by purchasing reloadable cards or retrieving wire transfers. In a typical scenario, call centers directed runners to purchase these stored value reloadable cards and transmit the unique card number to India-based co-conspirators who registered the cards using the misappropriated personal identifying information (PII) of U.S. citizens. The India-based co-conspirators then loaded these cards with scam funds obtained from victims. The runners used the stored value cards to purchase money orders that they deposited into the bank account of another person. For their services, the runners would earn a specific fee or a percentage of the funds. Runners also received victims’ funds via wire transfers, which were retrieved under fake names and through the use of using false identification documents, direct bank deposits by victims and Apple iTunes or other gift cards that victims purchased.

The indictment in this case also charged 32 India-based conspirators and five India-based call centers with general conspiracy, wire fraud conspiracy and money laundering conspiracy. These defendants have yet to be arraigned in this case. An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

HSI, DHS-OIG, and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection/Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorney’s Offices of the Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Georgia, Northern District of Illinois, Northern District of Indiana, Eastern District of Louisiana, District of Nevada and the District of New Jersey. The Federal Communications Commission’s Enforcement Bureau provided assistance in TIGTA’s investigation. Additionally, the Executive Office for U.S. Attorneys (EOUSA), Legal and Victim Programs, provided significant support to the prosecution.

Assistant U.S. Attorneys Mark McIntyre and Craig Feazel of the Southern District of Texas, Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Trial Attorney Amanda S. Wick of the Criminal Division’s Money Laundering and Asset Recovery Section prosecuted the case. Kaitlin Gonzalez of HRSP was the paralegal for this case.

A Department of Justice website has been established to provide information about the case to already identified and potential victims, and the public.  Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the FTC via this website.

Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.

Gulfport, Miss. – Ever Anibal Silva-Escobar, a citizen of El Salvador, was sentenced on Tuesday, July 17, 2018, to 27 months in federal prison by U.S. District Judge Louis Guirola, Jr., for conspiracy to transport illegal aliens within the United States, announced U.S. Attorney Mike Hurst, Jere T. Miles, Special Agent-in-Charge of U.S. Immigration and Customs Enforcement's Homeland Security Investigations in New Orleans, and Gregory K. Bovino, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.

Additionally, one of Silva-Escobar’s passengers, Yesica Paola Rojas-Baten, a citizen of Guatemala, was sentenced on Thursday, July 19, 2018, to 5 months and 19 days imprisonment. Rojas-Baten was sentenced by U.S. District Judge Sul Ozerden for her violation of being an alien who illegally returned to the United States after having been lawfully removed. Rojas-Baten previously pled guilty on April 30, 2018. Silva-Escobar and Rojas-Baten both were sentenced to 1 year of supervised release following their imprisonment. Silva-Escobar was also ordered to pay a $1,000 fine.

On January 30, 2018, two Hancock County Sheriff’s Deputies, working together, but in separate patrol vehicles, conducted traffic stops of two Honda Pilot Sport Utility Vehicles (SUVs) that were traveling together. Silva-Escobar was the driver of one of the SUVs and Kenneth Samuel Hernandez-Valdez, also known as Kenneth Hernandez, was the driver of the other SUV. The U.S. Border Patrol was contacted and arrived on the scene shortly thereafter.

Neither of the drivers had a valid driver’s license, and both were in the United States illegally. Each vehicle contained eight passengers who also were found to be illegal aliens. The SUVs each contained a total of nine occupants even though each vehicle only had seat belts for eight occupants. All eighteen occupants of both vehicles were arrested and transported to the Border Patrol Station in Gulfport, MS.

Silva-Escobar and Hernandez-Valdez, confirmed that they knew their passengers were illegal aliens, and the evidence showed that they were being paid to transport the aliens from Texas. On April 3, 2018, Hernandez-Valdez also pled guilty to Conspiracy to Transport Illegal Aliens Within the United States, and he was sentenced on June 27, 2018, to 27 months in federal prison and 2 years of supervised release upon completion of his sentence.

Further, three other passengers, Pedro Lopez-Alvarez a/k/a Pedro Lopez Alvarez a/k/a Pedro Alvarez-Baten, a citizen of Guatemala; Silvano Doroteo Morales-Ventura a/k/a Silvano Morales Ventura, a citizen of Mexico; and Wilmer Antonio Rubi-Padilla a/k/a Wilmer Rubi Padilla, a citizen of Honduras, were sentenced on July 3, 2018, for Unlawfully Returning to the U.S. After Removal. The three men were sentenced by Judge Guirola to terms ranging from just over 5 months to 6 months in prison. Each of the men had been convicted after pleading guilty on April 10, 2018.

U.S. Attorney Hurst praised the cooperation exhibited by the Department of Homeland Security, Homeland Security Investigations, the U.S. Border Patrol, and the Hancock County Sheriff’s Department. Assistant United States Attorney Stan Harris was the prosecutor for the case.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York,  James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), and Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, announced that KENNETH RUDGE, 28, of the Bronx, New York, received a sentence of 420 months’ imprisonment from District Judge Kimba M. Wood at a proceeding held today in Manhattan federal court.  Rudge previously pleaded guilty to firearms charges arising from his use of a firearm in the murder of Nelson Dubon on January 21, 2016.  Rudge murdered Dubon in the course of a robbery in the South Bronx, which Rudge and other members of the violent street crew “YNR” committed as part of that crew’s drug business.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Kenneth Rudge and his YNR crew inflicted violence and death upon our community.  Thanks to the extraordinary efforts of the NYPD and the ATF, Rudge will now spend the next 35 years in prison.”

According to the charging documents filed in the case, as well as statements made during the plea proceedings and earlier court appearances:

Since at least 2012, a group of young men and women living in the vicinity of 188^th Street and Webster Avenue, and referring to itself as “YNR,” engaged in a conspiracy to distribute crack cocaine and heroin to addicts in that area.  YNR managed to bring large quantities of crack cocaine and heroin into its neighborhood and to inflict mindless and, ultimately, deadly violence on its community. 

RUDGE personally organized and participated in multiple acts of narcotics sales by junior members of YNR, including groups of minors working at RUDGE’s direction.  RUDGE also instigated multiple acts of drug-related violence.  Those incidents included the following, each of which was committed in the Bronx, New York:  1) a robbery in or about 2015, of a marijuana dealer in that marijuana dealer’s apartment, during which robbery a victim was pistol-whipped by one of RUDGE’s co-conspirator; 2) a robbery, in or about 2015, of a marijuana dealer, resulting in a shooting by RUDGE and others in order to thwart the victim’s attempt to retaliate for that robbery; 3) an attempted armed robbery, on or about January 21, 2016, of a marijuana stash apartment; and 4) a robbery, on or about January 21, 2016, of a narcotics dealer and others located inside a billiards club, during which RUDGE shot and killed Nelson Dubon.

Following his arrest by the NYPD in connection with the murder of Dubon, RUDGE attempted to corruptly influence and silence witnesses against him, including by attempting to have other YNR members find and silence an eyewitness to the murder.  RUDGE also continued his firearms use and violence in the days after the murder of Dubon, including through the pistol-whipping of a livery cab driver in a failed attempt to rob that person of his fares on or about January 25, 2016, in the Bronx. 

*                *                *

Mr. Berman praised the outstanding work of the NYPD and ATF for their investigative efforts and ongoing support and assistance with the case.

The prosecution of this case is being overseen by the Office’s Violent and Organized Crime Unit.  Assistant U.S. Attorneys Andrew C. Adams and Sarah Krissoff are in charge of the case.

Gulfport, Miss – Cornelius Javon Massey, 20, of Pascagoula, entered a guilty plea Thursday before U.S. District Judge Sul Ozerden for being an unlawful user of controlled substances in possession of a firearm, announced U.S. Attorney Mike Hurst and Dana Nichols, Special Agent in Charge of Alcohol, Tobacco, Firearms and Explosives.

Massey faces a maximum of 10 years in prison, a fine of $250,000, and 3 years of supervised release.  Sentencing is set for November 2, 2018, at 9:00 a.m. before Judge Ozerden in Gulfport. 

The case arose when officers with the Pascagoula Police Department pulled over a car with four people for a traffic violation.  Once stopped and windows down, the Officer noticed a .223 caliber rifle with a large magazine laying in the rear floorboard.  While asking for proof of insurance, the officer noticed a handgun in the glove compartment.  A narcotics dog alerted for the presence of narcotics in the car.  A search yielded marijuana and a grinder, the rifle, a Glock pistol with 4 magazines, a Springfield Arms 9mm pistol with a loaded magazine, and 2 ski masks.  Massey admitted in an interview that he smoked marijuana regularly. 

Pascagoula Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.  The case is prosecuted by Assistant United States Attorney Annette Williams.

Jenelle Robyn Pinkston, 50, of Corvalis, Oregon and formally of Nashville, Tennessee, was sentenced Friday to three years in prison for her involvement in a scheme to fraudulently obtain income tax refunds, announced U.S. Attorney Don Cochran for the Middle District of Tennessee.

Pinkston was charged in a criminal information on January 23, 2017, and pleaded guilty in January 2018. 

According to documents filed with the court and evidence presented at the sentencing hearing, Pinkston filed 143 fraudulent tax refunds over a ten-month period in 2012, while acting as an independent tax preparer for a Nashville-area tax preparation service.  Pinkston filed the tax returns on behalf of customers of the tax preparation service and also used the identities of prison inmates, without their knowledge, to file false and fraudulent returns. The fraudulent tax returns resulted in refunds totaling $403,615.00, which Pinkston directed to two banks accounts under her control, and caused an actual loss of more than $63,000 to the IRS.

U.S. District Judge William L. Campbell, Jr. ordered Pinkston to serve three years in prison, two years of supervised release and to pay $63,338 in restitution to the IRS.  He also ordered a forfeiture money judgment of $3,185.

This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Stephanie N. Toussaint.

Memphis, TN – After a three-day jury trial in federal court, Antonio Hawkins, 41, was convicted of multiple counts of sex trafficking. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the guilty verdict today.

According to information presented in court, in April 2016, Antonio Hawkins took three women from New Orleans to Houston to put the women out on the prostitution track. While in Houston, Hawkins picked up a fifteen-year-old runaway, and put her on the track as well. Hawkins subsequently brought them to Memphis to work. All of the women, including the minor (who is now seventeen), testified at trial that Hawkins threatened to, and did, use violence to keep them from leaving him. The women testified that Hawkins struck them, pointed a gun at them and fired warning shots, and once even used a hot hair iron to intimidate the women into doing as he instructed.

U.S. Attorney D. Michael Dunavant said: "Human trafficking of minors and adults for commercial sex purposes is an unconscionable crime that must be met with severe consequences. We commend the FBI for their outstanding investigation of these heinous crimes, and we are pleased to achieve justice for the victims in this disturbing case."

Sentencing is set for Friday, November 2, 2018 before U.S. District Judge Sheryl H. Lipman. Hawkins faces a minimum sentence of 15 years imprisonment and a maximum of life.

This case was investigated by the Federal Bureau of Investigation as part of Project Safe Childhood (PSC), 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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 PSC, please visit http://www.justice.gov/psc.

Assistant U.S. Attorneys Kasey Weiland and Deb Ireland prosecuted this case on the government’s behalf.

St. Croix, USVI – Jahraun Malachi Brodhurst, 26, of St. Croix, was sentenced on Friday, July 20, 2018, before District Court Chief Judge Wilma A. Lewis to 21 months’ imprisonment for his convictions of unlawfully mailing a firearm and possession with intent to distribute marijuana, United States Attorney Gretchen C.F. Shappert announced. Judge Lewis also sentenced Brodhurst to 3 years of supervised release, a $1,000 fine, and a $200 special assessment.

According to the plea agreement filed with the court, on May 26, 2014, Brodhurst sent a U.S. priority mail parcel from Florida to St. Croix, Virgin Islands that contained a pistol and a an AR-15 lower receiver with an obliterated serial number. Both of the firearms were wrapped in carbon paper. The United States Postal Inspection Service Forensic Laboratories recovered two latent prints from the adhesive side of tape used to wrap the firearms in the carbon paper. Those prints matched Brodhurst’s known fingerprints.

On May 4, 2017, while a passenger in a car, stopped at a DUI checkpoint, Brodhurst was apprehended in possession of a distribution quantity of marijuana.

The case was investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations, the U.S. Postal Inspection Service, and the Virgin Islands Police Department. The case was prosecuted by Meredith J. Edwards.

NEWARK, N.J. – A Verona man today admitted possessing three guns as a previously convicted felon, including a replica Thompson submachine gun that he modified into a working automatic firearm, U.S. Attorney Craig Carpenito announced.

David Lutter, 69, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to an indictment charging him with one count of possessing three firearms as a previously convicted felon.

According to documents filed in this case and statements made in court:

In January 2017, Lutter met with an undercover agent from the Bureau of Alcohol, Tobacco, and Firearms (ATF) and negotiated the sale of a functioning Thompson submachine gun. The gun had originally been a replica, but Lutter had modified it with real gun parts to convert it into a functioning automatic firearm, which, according to Lutter, could fire 20 to 25 bullets per second. Lutter had also equipped it with what he called a “rock-and-roll switch,” which could toggle between semi-automatic and automatic mode.

Lutter sold the undercover agent the submachine gun, a .32-caliber revolver, and 100 rounds of ammunition for $525. A few months later, in May 2017, Lutter sold the undercover agent a .45-caliber semi-automatic pistol, bullets, and gun parts for $500. When Lutter was arrested in June 2017, law enforcement searched a storage facility he rented and recovered several hundred additional bullets and firearm parts. All three firearms and the recovered ammunition are in the possession of law enforcement.

At no time was Lutter licensed to sell firearms and was prohibited from possessing them due to his 1993 felony conviction for sexual assault of a minor.

The illegal firearms possession count carries a maximum potential penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 30, 2018.

U.S. Attorney Carpenito credited special agents of the ATF Newark Field Division, under the direction of Special Agent in Charge John B. Devito, with the investigation leading to today’s guilty plea.

The government is represented by Assistant U.S. Attorney Jason S. Gould of the Opioid Abuse Prevention and Enforcement Unit of the U.S. Attorney’s Office in Newark.

Defense counsel: Kevin Carlucci Esq., Assistant Federal Public Defender, Newark

CLARKSBURG, WEST VIRGINIA – Darmatrice Love and Kenyata Boudreaux, both of Detroit Michigan, have been sentenced for their roles in a drug distribution operation, United States Attorney Bill Powell announced.

Love, age 33, was sentenced today to 135 months incarceration.  Boudreaux, age 42, was sentenced today to 24 months probation. Love and Boudreaux each pled guilty to one count of “Aiding and Abetting Maintaining Drug-Involved Premises” in March 2018. Love and Boudreaux admitted to managing an apartment on Riddle Avenue in Morgantown, West Virginia, to distribute oxycodone. The crime occurred from October 2016 to March 2017.

Assistant U.S. Attorney Zelda E. Wesley prosecuted the cases on behalf of the government. The Mon Valley Drug and Violent Crime Drug Task Force, a HIDTA-funded initiative, led the investigation. The Task Force consists of the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, Monongalia County Sheriff’s Office, Morgantown Police Department, the Star City Police Department, the West Virginia State Police, the West Virginia University Police Department, the Granville Police Department, and the Monongalia County Prosecuting Attorney’s Office.

The investigation was funded in part by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.

Senior U.S. District Judge Irene M. Keeley presided.
 

ALBUQUERQUE – Nathan Little, 31, an enrolled member of the Mescalero Apache Nation who resides in Ruidoso, N.M., pled guilty on July 20, 2018, in federal court in Las Cruces, N.M., to assaulting a federal officer.

The BIA arrested Little on April 27, 2018, on a criminal complaint charging him with assaulting a federal officer in Nov. 2017.  According to the criminal complaint, Little assaulted a BIA officer on Nov. 18, 2017, punching him in the face repeatedly while he was being booked into custody at the Lincoln County Detention Center in Lincoln County, N.M., following a traffic stop that revealed that Little had outstanding warrants.             

On July 20, 2018, Little pled guilty to a felony information charging him with assault on a federal officer.  In entering the guilty plea, Little admitted assaulting a BIA officer on Nov. 18, 2017, by punching him in the face. 

Little has been in federal custody since his arrest on the criminal complaint and will remain detained pending his sentencing hearing, which has yet to be scheduled.  At sentencing, Little faces a maximum penalty of eight years in federal prison.  A sentencing hearing has yet to be scheduled.

This case was investigated by the Las Cruces office of the FBI and the Mescalero Agency of the BIA’s Office of Justice Services, and is being prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.

ATLANTA - Sudhakar Reddy Bonthu, a former manager at Equifax, pleaded guilty today to a charge of insider trading based on his purchases of options ahead of Equifax’s public announcement of its data breach.

“Bonthu was privy to nonpublic information pertaining to Equifax’s data breach, and he violated the law when he used that knowledge to enrich himself,” said U.S. Attorney Byung J. “BJay” Pak.  “Our office will continue investigate and prosecute those who take advantage of their positions for illegal gain.”

“Our message with this case is simple - company insiders must follow the same rules that govern regular investors, otherwise the public’s confidence in the stock market erodes,” said Murang Pak, Acting Special Agent in Charge of FBI Atlanta. “If they don’t, the FBI and its federal partners are determined to investigate them and hold them accountable.”

“Bonthu used confidential information to determine that his company had suffered a massive data breach and then violated company policy to illegally profit from it,” said Richard R. Best, Director of the Securities and Exchange Commission’s Atlanta Regional Office.  “Corporate employees cannot take advantage of their access to sensitive information and unlawfully benefit from it.”

According to U.S. Attorney Pak, the charges, and other information presented in court: Equifax Inc. is a consumer credit reporting agency headquartered in Atlanta. During the summer of 2017, Equifax was the victim of a data breach, where hackers acquired names, Social Security numbers, birth dates, and addresses of over 145 million consumers. 

Sudhakar Reddy Bonthu was a software development manager for Equifax’s Global Consumer Services team in August 2017.  In that role, he was entrusted with information that resulted in him concluding that Equifax was the victim of a data breach.  On August 25, 2017, Bonthu and other Equifax employees were asked to assist in responding to the breach, although he was not directly informed that Equifax had been breached.  On August 25, 2017, Bonthu was informed that the target date for announcing the breach publicly was September 6, 2017.  Around August 30, 2017, Bonthu learned that at least 100 million individuals’ information was exposed as part of the breach and that the data included names and Social Security numbers.  The next day, Bonthu received an email related to his work on the breach with a file attached named “EFXDatabreach.postman_collection.”  “EFX” is the stock ticker symbol for Equifax.

On September 1, 2017, Bonthu bought 86 put options in Equifax stock that expired on September 15, 2017.  Those put options allowed him to profit if the value of Equifax stock dropped within that two-week period. Equifax publicly disclosed the data breach on September 7, 2017, and its stock fell the next day.  Bonthu then exercised his put options, realizing a profit of more than $75,000.

Sudhakar Reddy Bonthu, 44, of Atlanta, Georgia is scheduled to be sentenced on October 18, 2018, at 2:00 p.m. before U.S. District Judge Amy Totenberg.

This case is being investigated by the Federal Bureau of Investigation, with assistance from the U.S. Securities and Exchange Commission.

Assistant U.S. Attorney Christopher J. Huber, Deputy Chief of the Complex Frauds Section, and Assistant U.S. Attorney Lynsey M. Barron are prosecuting 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.

John H. Durham, United States Attorney for the District of Connecticut, announced that a federal jury in Hartford has found RAYMOND McLAUGHLIN, also known as “Shakir Ra Ade Bey” and “Shakir Ade Bey,” 45, of East Hartford, guilty of one count of making a false statement on a federal tax form.  The trial before U.S. District Judge Michael P. Shea began on July 19 and the jury returned its verdict this afternoon.

According to court documents and statements made in court, in March 2009, McLAUGHLIN and his wife refinanced the mortgage for their East Hartford residence, taking out a $233,371 refinancing loan.  McLAUGHLIN and his wife failed to make a single mortgage payment for approximately six years thereafter while they resided in the home.  In April 2011, the mortgage holder filed a foreclosure lawsuit in state court and, in December 2012, Judge Robert F. Vacchelli granted an Order of Foreclosure against McLAUGHLIN.  Between then and April 23, 2014, Judge Vacchelli denied approximately 44 motions filed by McLAUGHLIN to vacate, reopen or otherwise set aside the foreclosure judgment.

On April 24, 2014, McLAUGHLIN mailed packages containing documents related to his foreclosure proceedings to both the U.S. Treasury Department in Washington, D.C., and the Internal Revenue Service in Austin, Texas.  The packages included IRS Forms 1099-OID and 1099-A for the 2014 tax year, falsely claiming that McLAUGHLIN had paid $332,204.25 in taxable income to Judge Vacchelli and the Connecticut state courts.  The packages also contained an IRS Form 1096 on which McLAUGHLIN stated and declared under the penalties of perjury that he had examined the submissions and that they were true, correct and complete, when, in fact, he knew that he had not made a payment of any kind to either Judge Vacchelli or the courts.  Testimony at trial established that had the IRS treated those documents as true, Judge Vacchelli would have been assessed an additional $110,000 in taxes; and that Judge Vacchelli’s pending reappointment to the Superior Court bench could have been placed in jeopardy.

When he is sentenced, McLAUGHLIN faces a maximum term of imprisonment of five years.  A sentencing date is not scheduled.

McLAUGHLIN was arrested on a federal criminal complaint on June 2, 2017.  He was released on a $50,000 bond until he failed to appear for the beginning of his trial on July 19.  He surrendered today.  Judge Shea ordered McLAUGHLIN to be detained pending sentencing.

This matter is being investigated by the Treasury Inspector General for Tax Administration and the Internal Revenue Service – Criminal Investigation Division.  The case is being prosecuted by Assistant U.S. Attorney Henry Kopel.

The former second highest official in the UAW’s Chrysler Department pleaded guilty today to conspiring with other UAW officials and Fiat Chrysler executives to make illegal payments to union officials, announced U.S. Attorney Matthew Schneider.

Joining in the announcement were James Vanderberg, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Timothy R. Slater, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, Acting District Director, U.S. Department of Labor – Office of Labor-Management Standards.

Nancy A. Johnson, 57, of Macomb, Michigan pleaded guilty to conspiring to violate the Labor Management Relations Act by accepting and arranging for illegal payments from Fiat Chrysler executives to high-level UAW officials from 2014 through 2016.  After the now-deceased UAW Vice President General Holiefield retired in 2014, Johnson and other UAW officials began running the UAW’s Chrysler Department, responsible for dealing with executives at Fiat Chrysler.  During the plea hearing, Johnson admitted to participating in a conspiracy that had existed at least from 2009 through 2016 whereby Fiat Chrysler executives conspired with one another, with Fiat Chrysler, with UAW officials, and with the UAW to funnel money and things of value worth tens of thousands of dollars from Fiat Chrysler to UAW officials and the UAW.  The things of value funneled to UAW officials from Fiat Chrysler included personal travel, golf resort fees, lavish meals and parties, limousine services, designer clothing, designer shoes, golf equipment, electronics, and an Italian shotgun.            

Johnson’s guilty plea indicated that a high-level UAW official directed other UAW officials to use money supplied from automobile manufacturing companies through joint UAW training centers to pay for travel, including travel solely for purported union business, as well as lavish meal and other entertainment costs of senior UAW officials and their friends, family, and allies. This directive was issued in order to reduce costs to the UAW budget from such expenditures because the UAW’s budget was under pressure. 

Johnson’s plea also stated that In 2014, 2015, and 2016, in Palm Springs, California, high-level UAW officials used UAW funds to pay for extravagant meals, premium liquor, multi-month stays at condominiums, and multiple rounds of golf for little, if any, legitimate union-business or labor-management purposes.  These expenditures were in addition to other expenses paid for by Fiat Chrysler by way of the training center.

As another part of the conspiracy, Johnson’s plea indicated that during the period 2014 through 2016, 100% of the UAW salaries of a large number of UAW officials and employees, nominally assigned to the NTC, was paid for by FCA through the NTC. FCA paid these salaries for the UAW even though senior UAW officials and FCA executives both knew that these UAW officials and employees “assigned” to the NTC spent most of their work time performing tasks for the UAW, reported to the UAW, and enforced FCA’s compliance with the collective bargaining agreement on behalf of the union and not for the benefit of FCA or the NTC.      

Johnson is the seventh defendant to plead guilty in connection with the ongoing criminal investigation into illegal payoffs involving UAW officials and FCA executives.  The following individuals have already pleaded guilty to their participation in the scheme:  former FCA Vice President for Employee Relations Alphons Iacobelli, former FCA Financial Analyst Jerome Durden, former Director of FCA’s Employee Relations Department Michael Brown, former senior UAW officials Virdell King and Keith Mickens, and Monica Morgan, the widow of UAW Vice President General Holiefield.    

“Today’s conviction of yet another senior UAW official further exposes the dishonorable scheme between UAW officials and Fiat Chrysler executives to corrupt the collective bargaining process at the expense of rank and file union members,” said United States Attorney Matthew Schneider.  “The conviction reveals that part of this scheme involved the wrongful use of UAW funds for extravagant meals, entertainment, golf, and travel for little, if any, union-business purpose.”   

“Nancy Johnson held a high-level position in the UAW and was entrusted to negotiate and implement contracts for the UAW union members she served. Instead, Johnson defrauded the membership by illegally obtaining items worth thousands of dollars, including jewelry, clothing, and other personal items, knowing that FCA was paying the bill. We will continue to work with our law enforcement partners to investigate corrupt union officials who violate their duty to the members they represent for personal gain.” stated James Vanderberg, Special Agent-in-Charge, Chicago Region, United States Department of Labor Office of Inspector General.

“Today’s guilty plea from Nancy A. Johnson, a former senior UAW official, demonstrates the continued efforts of the FBI along with our law enforcement partners to hold those persons misusing funds, whether for personal gain or the enrichment of others, accountable for their actions," said Timothy R. Slater, Special Agent in Charge, Detroit Division of the FBI. "Her actions, depriving the rank and file UAW membership of training money, is intolerable and we remain committed to pursuing all those responsible."

“Protecting members against corruption perpetrated by their union leaders is critical to the mission of OLMS,” said Thomas Murray, acting District Director of the Office of Labor-Management Standards (OLMS) Detroit-Milwaukee District Office.  “We will continue to work cooperatively with our law enforcement partners to ensure that anyone who abuses their union position for personal financial gain will be brought to justice.”

U.S. Attorney Schneider commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.

The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Erin Shaw, Charles J. Kalil II, and Adriana Dydell.

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Steven M. Lukach, Jr., age 68, of Nesquehoning, Pennsylvania, was indicted by a federal grand jury on twenty counts of mail and wire fraud and manufacturing records to obstruct an investigation.  He was arrested by federal agents this morning and appeared in federal court in Scranton and entered a not guilty plea to the charges.  He was released on pre-trial supervision pending trial which was not scheduled. 

According to United States Attorney David J. Freed, Lukach served as the Clerk of Courts for Schuylkill County for approximately 27 years.  The indictment alleges that in 2013-2014, county auditors with the Controller’s Office began an in depth examination of the Clerk’s Office and discovered misappropriation of funds by Lukach.  An FBI investigation ensued and while the audit was going on, Lukach allegedly interfered with the audit by stealing mail that was sent to banks, forged records and sent the fake bank records to the Controller’s Office, in an effort to conceal his thefts. 

The indictment also alleges that Lukach stole funds from various court accounts for his own personal purposes, such as paying a family member’s credit card bill, paying for meals, making car payments, and other personal expenses.

The case was investigated by the Pennsylvania State Police, the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Michael Consiglio.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

The maximum penalty under federal law for each of these offenses is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.

# # #

NEWARK, N.J. – A Bloomfield, New Jersey, man was sentenced today to 35 months in prison for failing to deliver goods his business sold to customers, stealing his customers’ credit card information and falsely claiming that purchases on his own account were fraudulent, U.S. Attorney Craig Carpenito announced.

Scott Spina Jr., 21, previously pleaded guilty before U.S. District Judge Esther Salas to an information charging him with one count of wire fraud. Judge Salas imposed the sentence today in Newark federal court.

According to documents filed in this case and statements made in court:

Spina was in the business of selling sneakers and other high-end items to customers that included professional athletes. However, after he contracted with these customers and collected payment, he failed to deliver the goods as promised.

Spina also made personal purchases using credit card information provided by his customers and others without their authorization. In addition, he contacted his credit card company and falsely claimed that numerous purchases on his account were fraudulent. Altogether, Spina admitted he obtained or sought to obtain more than $550,000 in money or goods.

In addition to the prison term, Judge Salas sentenced Spina to three years of supervised release and ordered him to pay restitution of $516,396.33.

U.S. Attorney Carpenito credited inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Judy Ramos, with the investigation leading to today’s sentence. He also thanked the Salem County Prosecutor’s Office, under the direction of Prosecutor John T. Lenahan; the N.J. State Police, under the direction of Col. Patrick J. Callahan; the East Hanover Police Department, under the direction of Chief Christopher F. Cannizzo; and the West Orange Police Department, under the direction of Chief James P. Abbott, for their assistance with the case.

The government is represented by Senior Litigation Counsel Andrew Kogan of the U.S. Attorney’s Office Cybercrime Prevention and Enforcement Unit in Newark.

Defense counsel: Vincent Scoca Esq., Bloomfield

SPRINGFIELD, Mo. – A Springfield, Mo., man who worked as a paramedic and EMT for several emergency medical transportation companies pleaded guilty in federal court today to stealing fentanyl and morphine and replacing the drugs with saline solution.

Zachary L. McCleary, 30, waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with two counts of tampering with a consumer product.

McCleary worked at several health care facilities as an emergency medical technician (EMT) between Sept. 25, 2015, and Feb. 21, 2018. During this time, McCleary worked for the Grove, Okla., Emergency Medical Service as an EMT, as a paramedic for Cox Health in Springfield, as a paramedic for Mercy Health in Carthage, Mo., and as a paramedic with Barton County, Mo., Emergency Medical Service.

According to today’s plea agreement, 18 separate adverse event reports were filed by individuals who received emergency medical services from Barton County EMS. In each of those reports, individuals advised that various opioid drugs were administered to provide pain relief, but due to McCleary’s theft of the drugs, and tampering by replacing the drugs with saline solution, each of these individuals did not receive the pain relief intended and experienced continued pain that resulted from McCleary’s reckless disregard to risk of serious bodily injury and harm to these patients.

In February 2018, agents with the Food and Drug Administration-Office of Criminal Investigations (FDA-OCI) opened an investigation regarding the repeated theft and dilution of opioid drugs from various health care providers throughout southwest Missouri. Agents learned that while McCleary was employed as either an EMT or paramedic, various vials containing opioid-based drugs, including fentanyl, morphine, hydrocodone and ketamine, were stolen.  Medical service officials advised agents that in some instances the vials were stolen and in other instances, the vials were tampered with so that the drugs were removed and saline was injected to the vials to make it appear that the drugs had not been stolen.

McCleary specifically pleaded guilty to tampering with vials that contained fentanyl and morphine sulfate, by removing those drugs from their vials and replacing them with saline solution, while working for Barton County Emergency Medical Service between Jan. 20 and Feb. 21, 2018. McCleary also specifically pleaded guilty to tampering with vials that contained fentanyl and morphine sulfate, by removing those drugs from their vials and replacing them with saline solution, while working for Cox Health from April 1 to May 19, 2017.

Under federal statutes, McCleary is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the U.S. Food and Drug Administration – Office of Criminal Investigations.
 

KANSAS CITY, KAN. – A Kansas City man was sentenced today to 65 months in federal prison for robbing a bank in Bonner Springs, U.S. Attorney Stephen McAllister said.

Timothy Karpovich, 39, Kansas City, Mo., pleaded guilty to one count of bank robbery. An affidavit filed in the case alleged that Karpovich robbed the KCB Bank at 13010 Commercial in Bonner Springs. He gave the teller a handwritten note that read, “This is a robbery.” After the teller complied with the demand, Karpovich took the money, and fled the bank on foot.

Police received a tip that the robber gambled regularly at Harrah’s Casino in North Kansas City, Missouri. Casino employees identified Karpovich from a bank surveillance photo. He was arrested without incident at the casino.

McAllister commended the FBI, the Bonner Springs Police Department, the Missouri Highway Patrol Gaming Division and Assistant U.S. Attorney Trent Krug for their work on the case.

JEFFERSON CITY, Mo. – A Columbia, Mo., man was sentenced in federal court today for illegally possessing eight firearms.

Adrian Lamont Levy, 35, was sentenced by U.S. District Judge Stephen R. Bough to 12 years and four months in federal prison without parole.

On April 9, 2018, Levy pleaded guilty to three counts of being a felon in possession of a firearm. Levy admitted that he was in possession of a Ruger 9mm pistol on July 4, 2015. Levy admitted that he was in possession of six firearms on Sept. 2, 2015, including a Smith & Wesson 9mm pistol, a Kel Tec 9mm rifle, a Century Arms rifle, an SWD pistol, a Glock 9mm pistol and a Metro Arms .45-caliber pistol. Levy admitted that he was in possession of a Kel Tec 5.56-caliber pistol on Nov. 28, 2016.

Levy, who was a fugitive from justice following his original indictment, was confronted by federal authorities in a parking garage in Kansas City, Mo., on Nov. 28, 2016. Levy drove through the parking garage, attempting to flee from the officers, but the exits were blocked. Levy got out of his vehicle, which was still in gear and struck another vehicle owned by his girlfriend. He was eventually apprehended after a foot chase. Officers searched the vehicle Levy had been driving and found the Kel Tec handgun, loaded with 30 rounds of ammunition in a high-capacity magazine, inside a backpack.

Levy was originally indicted for being a felon in possession of a firearm on Aug. 19, 2015, after law enforcement officers found the loaded Ruger 9mm pistol in the glovebox of his car during a sobriety check point. When officers went to his residence to arrest him, he was not present, but the six loaded firearms that he later admitted to possessing were discovered at the residence. Levy was charged with possessing the six additional firearms in a superseding indictment returned by a federal grand jury on Oct. 28, 2015.

Levy was a fugitive from justice from the time of the original indictment on Aug. 19, 2015, to the time of his arrest on Nov. 28, 2016. He was charged with illegally possessing the Kel Tec pistol in a second superseding indictment returned by a federal grand jury on Dec. 7, 2016. 

Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Levy has two prior felony convictions for possession of a controlled substance, as well as prior felony convictions for distribution of a controlled substance and resisting arrest.

This case was prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia, Mo., Police Department.
 

PHILADELPHIA – U.S. Attorney William M. McSwain, Assistant Attorney General for National Security John C. Demers, and Assistant Director in Charge of the FBI’s New York Field Office William F. Sweeney Jr. announced that an Algerian man pleaded guilty today to conspiracy to provide material support and resources to terrorists.  United States District Judge Petrese B. Tucker presided over the proceeding. 

Ali Charaf Damache, 53, also known as Theblackflag, was indicted in 2011 in the Eastern District of Pennsylvania on one count of conspiracy to provide material support to terrorists and one count of attempted identity theft to facilitate an act of international terrorism.  United States authorities extradited Damache from Spain in 2017. 

According to the indictment, Damache, his co-defendant Mohammad Hassan Khalid, and others conspired to support, recruit, and coordinate a terrorist cell, consisting of men and women from Europe and the United States, to wage violent jihad in and around Europe.  Among those with whom Damache conspired is Colleen R. LaRose, who was a resident of the Eastern District of Pennsylvania at the time of the acts alleged in the indictment.  LaRose, aka Fatima LaRose, aka JihadJane, was sentenced to 10 years in prison for her involvement in this conspiracy.  The indictment alleges that Damache, Khalid, LaRose, and others recruited men online to wage violent jihad in South Asia and Europe and recruited women who had passports and the ability to travel to and around Europe in support of violent jihad. 

As part of his guilty plea, Damache has agreed to be sentenced to a 180-month term of imprisonment and has waived his right to appeal his sentence.  Damache has further agreed that upon completing his prison sentence, he will be removed from the United States and returned to Ireland or, in the alternative, Algeria, as Damache is a citizen of both countries.

“Counterterrorism remains my office’s highest priority, and we will continue to prevent, disrupt, and defeat violent extremism at home and abroad,” said U.S. Attorney William M. McSwain.  The prosecutors and law enforcement agencies who brought Damache to justice in the United States work shoulder-to-shoulder, every day, to do just that.  As this case shows, our resolve to dismantle clear and present dangers to our national security is stronger than ever.”

This case was investigated by the FBI's Joint Terrorism Task Force in New York and the FBI Field Divisions in Philadelphia, Denver, Baltimore and Washington, D.C., and the IRS.  The Justice Department’s Office of International Affairs and authorities in Spain provided substantial assistance.  Authorities in Ireland also provided assistance in this matter. 

The case is being prosecuted by First Assistant U.S. Attorney Jennifer Arbittier Williams and Assistant U.S. Attorney Sarah M. Wolfe of the Eastern District of Pennsylvania, and Trial Attorneys Matthew F. Blue and C. Alexandria Bogle of the National Security Division’s Counterterrorism Section.