Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that RANDY WANG was sentenced in Manhattan federal court to 18 months in prison for defrauding his former employer, a company based in Manhattan that manages a global airline alliance whose members consist of approximately 13 international airlines and their affiliates (the “Company”), by incurring more than $2.2 million in unauthorized charges on the Company’s credit card account.  WANG pled guilty on April 17, 2018, to one count of wire fraud before U.S. District Judge John F. Keenan, who also imposed today’s sentence.

U.S. Attorney Geoffrey S. Berman said: “Randy Wang took advantage of his positions of trust with his employer – and his access to the company’s purse strings.  He charged millions of dollars’ worth of electronics on his employer’s credit card for non-businesses purposes, and attempted to cover up his criminal conduct.  Today Wang has been sentenced to prison for his crime.”

According to the Information filed against Wang and statements made in related court filings and proceedings: 

During the relevant time period, WANG was employed as a business manager for the Company, and for approximately the last two months of the scheme, WANG also served as the Company’s interim chief financial officer.  From at least in or about January 2016 through in or about October 2017, WANG incurred more than $2.2 million of unauthorized charges on the Company’s credit card account by making hundreds of purchases at both online and brick-and-mortar retailers.  WANG’s purchases, which were entirely unrelated to his official duties and were not for the benefit of the Company, included approximately 443 laptop computers, 241 mobile electronic devices, 24 tablet computers, and numerous other electronics.  In order to evade detection of his criminal conduct, WANG made changes to the Company’s accounting records to disguise the nature of the credit card charges.

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In addition to his prison term, WANG, 34, of Oakland Gardens, New York, was sentenced to 3 years of supervised release, a forfeiture money judgment in the amount of $2,294,982.00, and a restitution order in the amount of $2,294,982.00.

Mr. Berman praised the work of the Department of Homeland Security, Homeland Security Investigations, and the El Dorado Task Force. 

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.

Earlier today, in federal court in Brooklyn, Ray Lazier Lengend was sentenced by United States District Judge LaShann DeArcy Hall to 18 years and 10 months in prison, to be followed by three years’ supervised release, for perpetrating hate crimes in Queens, New York.  Lengend pleaded guilty in December 2017 to two counts of hate crimes through the use of fire and explosives.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.

 “Lengend’s firebombing of houses of worship out of hatred of certain religions and races is the antithesis of what this country is all about,” stated United States Attorney Donoghue.  “Such hate-filled crimes, through which he spread fear and endangered the lives of first responders and others, will never be tolerated by the Justice Department or the American people.  I commend the law enforcement officers who quickly apprehended the defendant and restored a sense of security to our community.” 

“In 2012, Lengend, motivated by hate, fire-bombed five buildings in Queens with the intent to kill or maim innocent people simply because of their religion or national origins,” stated FBI Assistant Director-in-Charge Sweeney. “Today, he learned the consequences of his despicable actions.  His sentence should serve as a reminder the FBI will never waver in its commitment to protecting and preserving the rights of all Americans, including the free exercise of one’s chosen religion.”

On January 1, 2012, the defendant went on a firebombing spree, attacking five buildings in Queens with Molotov cocktails, including a Shiite mosque, the Imam Al-Khoei Foundation and a private residence that housed a Hindu temple.  He was arrested the next day.  Following the defendant’s arrest, he stated that he hated Arabs, Muslims and Middle Easterners.  With respect to the mosque bombing, the defendant stated that he had intended to “take out as many Arabs as possible.”  No one was injured by the defendant’s attacks.

Lengend was prosecuted in a parallel proceeding in State Supreme Court in Queens, and pleaded guilty to attempted arson as a hate crime and was sentenced to 20 years’ imprisonment in October 2017.  Today’s sentence will run concurrent with the state sentence.

The government’s case is being handled by the Office’s Civil Rights Section.  Assistant United States Attorneys Taryn A. Merkl and Nomi Berenson are in charge of the prosecution. 

The Defendant:

RAY LAZIER LENGEND
Age:  46
Queens, New York

E.D.N.Y. Docket No. 12-CR-188  (LDH)

ALBUQUERQUE – Ryan Schorr, 28, of Albuquerque, N.M., pled guilty today in federal court to robbing two branches of US Bank in New Mexico in Sept. and Oct. 2017.

The FBI arrested Schorr in April 2018, for robbing the US Bank located at 2015 Eubank Blvd on Sept. 21, 2017, and robbing the US Bank located at 3801 Isleta Blvd on Oct. 3, 2017.  According to court documents, Schorr robbed both banks by giving a handwritten note to the bank teller stating that he had a gun and was demanding money.  FBI agents located Schorr with the help of witnesses who were able to identify Schorr in security camera footage taken at both bank robberies.

Schorr will remain detained pending his sentencing hearing, which has yet to be scheduled.  At sentencing, Schorr faces a statutory maximum penalty of 20 years in federal prison and a $250,000 fine. 

This case was investigated by the Albuquerque office of the FBI. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the case.

CHICAGO — A Chicago woman has been sentenced to nearly four years in federal prison for operating a multi-million dollar fraud scheme that duped investors into believing she could earn profits on the secondary market for concert and sports tickets.

TRACY MONTI fraudulently obtained more than $5 million from investors by misrepresenting that she could purchase tickets for sporting events and concerts from primary market sources at face value or at a discount through purported connections in the event business and then re-sell the tickets for a profit on the secondary market.  In reality, Monti used the victims’ funds to purchase various items for herself, including a house in Chicago, a Dodge Challenger, tattoos, vacations, and shopping sprees at Victoria’s Secret and Neiman Marcus.  Monti also made Ponzi-type payments to early investors.

Monti, 44, pleaded guilty earlier this year to one count of wire fraud.  U.S. District Judge Manish S. Shah on Tuesday sentenced Monti to 46 months in prison and ordered her to pay $4,997,958 in restitution to victims.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation; and Gabriel L. Grchan, Special Agent-in-Charge of the Chicago office of the Internal Revenue Service Criminal Investigation Division.

The fraud scheme began in 2010 and continued until 2015.  Monti misrepresented to investors that she had business relationships with multiple primary sources, such as event promoters and venues, through which she could purchase tickets at face value before re-selling them for a profit.  Those relationships did not actually exist.  Monti victimized more than ten investors, one of whom took money out of his pension to invest in Monti’s scam.

“This case involves a brazen and merciless scheme to defraud,” Assistant U.S. Attorney Sheri H. Mecklenburg argued in the government’s sentencing memorandum.  “Defendant cast a wide net, seeking victims wherever and whenever she could.”

ALBUQUERQUE – Justin Jr Watchman, 26, of Farmington, N.M., pled guilty today in federal court in Albuquerque, N.M., to bank robbery.  Watchman entered the guilty plea without the benefit of a plea agreement.

The FBI arrested Watchman in Aug. 2018, for robbing the First Convenience Bank located inside the Walmart at 4600 East Main Street in Farmington on Aug. 17, 2018, by handing the bank teller a note demanding money.  Farmington Police Department (FPD) officers located Watchman later that same day.    At the time of arrest, he possessed a video game system still in the manufacturer’s box and a one-way bus ticket.  

Watchman will remain in custody pending his sentencing hearing, which has yet to be scheduled.  At sentencing, Watchman faces a statutory maximum penalty of 20 years in federal prison and a $250,000 fine. 

This case was investigated by the Albuquerque office of the FBI and the FPD. Assistant U.S. Attorney Howard Thomas is prosecuting the case.

PHILADELPHIA – U.S. Attorney William M. McSwain announced that David Fili, Jr., 48, of Drexel Hill, PA, was sentenced today by United States District Judge Joel H. Slomsky to one day in jail and five years of supervised release, with the first 18 months of supervised release to be served on home confinement. Significantly, the defendant was ordered to forfeit $1,969,312.02, and is jointly and severally liable to pay $9,567,074.56 in restitution.  Fili previously entered a guilty plea to ten counts of wire fraud and two counts of bank fraud.

Along with George Barnard, 47, of Newtown Square, PA, Fili owned Capital Financial Mortgage Corporation (“CFMC”), based in Delaware County, PA. Between 2005 and March 2013, Fili and Barnard issued refinance mortgage loans to customers of CFMC. Instead of using the money to pay off their customers’ outstanding first mortgages, however, they diverted $9,781,977 to themselves from bank accounts belonging to CFMC and several title companies owned by Barnard. Barnard was previously sentenced to five years in prison for his role in the scheme.

As part of his guilty plea, Fili admitted that he used much of the money he diverted to buy a vacation home and to support his gambling habit (while Barnard used the money he diverted to buy multi-million dollar beach homes in Avalon, New Jersey, several yachts, and to pay the salary of a yacht captain). At the time that the scheme fell apart in March 2013, Fili and Barnard left over two dozen CFMC customers stuck with two mortgages on their homes because CFMC had failed to pay off their customers’ existing first mortgages.

“For many years, Fili defrauded honest, hard-working individuals out of their money so that he could gamble it away and relax in his illegally-obtained vacation home, “ said U.S. Attorney McSwain. “The defendant’s vacation ends now. We are thankful that the Court ordered him to pay millions of dollars as a result of his crimes.”

The case was investigated by the Federal Bureau of Investigation and the Department of Housing and Urban Development, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.

A complaint has been unsealed in federal court in Brooklyn against Billy Harmon Dunn, Jr., for transporting a 15-year-old girl from Brooklyn, New York to Kosse, Texas, for the purpose of engaging in illegal sexual activity with her.  Dunn is also charged with producing child pornography.  Dunn was arrested Tuesday in Texas and will make his initial appearance  today at the federal courthouse in Waco.  The government will seek Dunn’s removal to the Eastern District of New York for prosecution.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.

As alleged in the complaint and other court filings, beginning in August 2018, Dunn began an online relationship with a 15-year-old girl (the “victim”) who lived in Brooklyn.  Dunn and the victim communicated regularly, and much of the discussion concerned Dunn’s desire to engage in sex with her.  Dunn also persuaded the victim to take sexually explicit photographs of herself and send them to him.  Initially, Dunn discussed purchasing a bus ticket for the victim to travel to Texas, but abandoned that plan upon learning she was too young to travel unaccompanied without permission from her parents, according to bus company rules.  Dunn then rented a car, drove to Brooklyn and transported the victim back to a trailer park in Kosse, Texas.  The victim’s mother notified law enforcement that her daughter was missing, and officers located the victim at the trailer park.

“We stand firm in our commitment to stop online predators from exploiting children,” stated United States Attorney Donoghue.  “I commend the dedicated members of law enforcement who quickly collaborated across the country to locate the victim and apprehend the defendant.”  Mr. Donoghue expressed his appreciation to the Kings County District Attorney’s Office, the New York City Police Department, the Brooklyn Human Trafficking Task Force, the Limestone County (Texas) Sheriff’s Office, the Kosse (Texas) Police Department, the Limestone County District Attorney’s Office and the National Human Trafficking Resource Center for their assistance in the investigation of this case.

The charges are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted of transporting a minor interstate to engage in illegal sexual activity, the defendant faces a mandatory minimum of 10 years in prison and a maximum of life in prison.  If convicted of producing child pornography, he faces a mandatory minimum of 15 years in prison and a maximum of 30 years in prison.

The government’s case is being handled by the Office’s Civil Rights Section, in collaboration with the Brooklyn Human Trafficking Task Force and Kings County District Attorney’s Office.  Assistant United States Attorney Francisco J. Navarro and Assistant District Attorney Vanessa McEvoy from the Kings County District Attorney’s Office are in charge of the prosecution.

The Defendant:

BILLY HARMON DUNN, JR.
Age:  48
Kosse, Texas

E.D.N.Y. Docket No. 18-MJ-1133

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the filing of a criminal complaint charging FABIO BRETAS DE FREITAS with commodities fraud, wire fraud, bank fraud, and identity theft in connection with BRETAS’s operation of two related investment companies, Phynance Capital Management LLC (“Phy Capital”) and Absolute Experience LLC (“Absolute”).  BRETAS is alleged to have misrepresented to investors the trading activity and use of funds invested in Phy Capital and Absolute, and, after acquiring investor funds, misappropriated a large portion of those funds for his personal benefit.  Additionally, after the initiation of an audit of BRETAS’s companies by the Commodity Futures Trading Commission (“CFTC”) and the National Futures Association (“NFA”), BRETAS allegedly attempted to deceive those regulators by impersonating a victim-investor using a fraudulent email account appearing to belong to that victim, but in fact controlled by BRETAS.  BRETAS was arrested this morning in Miami and will be presented before a U.S. Magistrate Judge in the Southern District of Florida later today.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, Fabio Bretas de Freitas used sham investment companies to steal both the money and the identities of his would-be investors. Thanks to the dedication of the FBI, and with the support and assistance of the CFTC and NFA, Bretas’s alleged scheme has collapsed around him and he will now be held to account.”  

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “The defendant obtained more than $5.5 million from people who invested their money in good faith.  But as alleged, instead of investing those funds as he had promised, the defendant used it to cover his own personal expenses, even going so far as to impersonate one of his own victims to deceive investigators.  Bretas’s arrest should serve as a stark reminder that those who seek to manipulate our financial systems for their personal gain will be identified and disrupted.”

According to the Complaint filed today in Manhattan federal court[1]:

BRETAS started Phy Capital and Absolute in 2016, and ultimately obtained more than $5.5 million from various investors (the “Victims”).  While BRETAS conducted a minimal level of trading, his predominant use of his companies was the theft of investor money, using it to cover his personal expenses, and transferring investor funds abroad.  When his regulators, the CFTC and NFA, initiated an audit of BRETAS in 2017, BRETAS lied about his affiliation with Absolute, falsely claimed that his victims’ funds reflected mere loans to his company, lied about the use of those funds and the solicitation of investments, and ultimately created a fraudulent email account for the purpose of impersonating one victim in communications with the NFA. 

BRETAS, 53, of Miami, Florida, was arrested this morning in Miami.  BRETAS is charged with wire fraud, which carries a maximum sentence of 20 years in prison; bank fraud, which carries a maximum sentence of 30 years in prison; commodities fraud, which carries a maximum sentence of 25 years in prison; and aggravated identity theft, which carries a mandatory sentence of two years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

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This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit.  Assistant United States Attorneys Andrew C. Adams and Benet Kearney are in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

BOSTON – A Southwick man was indicted today by a federal grand jury for sending two packages, containing white powder, to federal agencies in Springfield.

Kevin A. Johnson, 47, was indicted on two counts of conveying false information and hoaxes and one count of mailing threatening communications to a federal law enforcement officer. Johnson was charged by criminal complaint and arrested on Nov. 30, 2018.

According to the charging documents, between July and November 2018, FBI’s Springfield Office and the Springfield Social Security Administration Office (SSA Springfield), received collectively three packages containing either threatening communications and/or suspicious substances. The Springfield Branch Office of the United States Attorney’s Office for the District of Massachusetts received a letter from an individual claiming responsibility for sending the packages. All of the packages contained a piece of white-lined paper with a hand-drawn logo that appeared to combine the “anarchist A” symbol (the capital letter “A” surrounded by the letter “O”)  and the symbol for ISIS, a foreign terrorist organization. Two of the packages contained suspicious white powder.

As alleged in court documents, on July 23, 2018, security cameras at the FBI Springfield Office captured an individual throwing a manila envelope at the front door. The package contained a handwritten note saying: “Death to TRUMP.”

On Oct. 23, 2018, SSA Springfield received a package containing white powder and a handwritten letter stating, among other things: “FOR ALLAH YOU DIE, ATHENA KNOWS YOUR LIES, DEATH TO YOU TRAITORS, AND THE FU----- FBI.” 

On Oct. 24, 2018, the FBI Springfield Office received a package through the mail addressed to “AGENT UNCLE HAM.” The package contained white powder and a handwritten note stating: “FOR ALLAH YOU DIE, ATHENA KNOWS YOUR LIES, DEATH TO THE N.O.R.A.D SPIES, AND THE FBI.”  The Massachusetts State Police Laboratory later found the white powder in the packages to contain no hazardous materials.

The charges of false information and hoaxes provide for a sentence of no greater than five years in prison, one year of supervised release, and a fine of up to $250,000. The charges of mailing threatening communications provide for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; Stephen A. Marks, Special agent in Charge of the U.S. Secret Service, Boston Field Division; and Southwick Police Chief Kevin A. Bishop, made the announcement today. Assistance was provided by the Western Massachusetts Joint Terrorism Task Force, Hampden County Sheriff’s Department, and Holyoke Police Department. Assistant U.S. Attorney Deepika Bains Shukla of Lelling’s Springfield Branch Office is prosecuting the case.

The details contained in the indictment and complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that on December 4, 2018, Chief U.S. District Judge James D. Peterson sentenced Xiong Lo, 53, Wausau, Wisconsin, to 30 months in federal prison and a $50,000 fine, and Ying Lo, 40, also of Wausau, to 4 months in federal prison and a $10,000 fine, for money laundering and distribution of marijuana.   

Xiong Lo pleaded guilty to the money laundering charge on June 26, 2018.  Ying Lo pleaded guilty to the drug charge on the same date.  The two defendants are husband and wife.  Both agreed to the forfeiture of $541,734 in drug proceeds.

 On July 2, 2015, law enforcement agents arrested Ying Lo after she delivered 28 pounds of marijuana to another co-conspirator.  This delivery was at the direction of her husband, Xiong Lo.  In addition to the 28-pound seizure, search warrants executed at the defendants’ home and business uncovered large amounts of marijuana, approximately $50,000, drug ledgers, digital scales, and drug packaging materials, including vacuum sealers and rolls of vacuum sealed bags.  Further, agents seized safe deposit keys from the defendants’ home, which led to the seizure of $491,000 in cash from safe deposit boxes rented by the defendants.

An investigation by IRS Criminal Investigation (IRSCI) during a 13-month period ending in July 2015, revealed that the Los made cash deposits over $1,000,000 into their bank accounts.  Further, IRSCI agents determined that the defendants purchased two real estate properties for $180,000 in 2015.  The defendants paid for these properties up-front, in full, with an unusual combination of cashier’s checks, teller checks, and money orders from different financial institutions.  Shortly thereafter, the properties were sold to relatives for a fraction of the appraised value.

The charges against Xiong and Ying Lo were the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, IRS Criminal Investigation, Marathon County Sheriff’s Office, and the Wausau Police Department.  Prosecution of the case has been handled by Assistant U.S. Attorney David J. Reinhard. 

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of two Complaints charging four defendants with firearms trafficking and narcotics distribution offenses in and around Port Chester, New York.  The defendants, WALTER JONES, FRANK MAXWELL, MARKEL CALHOUN, and JAMAR CALHOUN, were presented in White Plains federal court this afternoon before United States Magistrate Judge Paul E. Davison.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, these defendants were responsible for selling guns and drugs, two potentially lethal commodities that plague too many communities.  Thanks to the FBI and the Port Chester Police, the defendants are in custody and facing federal criminal charges.”

FBI Assistant Director William F. Sweeney Jr. said:  “Public safety is at risk when criminals think they can operate outside the law, selling guns and drugs in our communities.  The FBI's Westchester County Safe Streets Task Force is committed to working with our law enforcement partners to break the cycle of addiction and violence by removing those responsible for putting weapons and narcotics on the streets.”

As alleged in the Complaints unsealed today in White Plains federal court [1]:

In or about February and March 2017, JONES and MARKEL CALHOUN conspired to traffic in firearms, and sold four firearms in Port Chester, New York, and Riverside, Connecticut.  During about the same period, JONES and MARKEL CALHOUN also possessed firearms unlawfully despite their prior felon status.  From at least in or about February 2018 up to November 2018, JONES and MAXWELL conspired to distribute 28 grams or more of crack cocaine.  Between March and May 2018, JAMAR CALHOUN distributed crack cocaine on at least six occasions in and around Port Chester, New York.   

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JONES, 30, and MARKEL CALHOUN, 26, are charged with one count of firearms trafficking conspiracy, which carries a maximum sentence of five years in prison.  MARKEL CALHOUN is charged with one count of being a felon in possession of a firearm and JONES is charged with two counts of being a felon in possession of a firearm, each of which carries a maximum sentence of 10 years in prison.  JONES and MAXWELL, 36, are charged with one count of conspiracy to distribute 28 grams or more of crack cocaine, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 40 years in prison.   JAMAR CALHOUN, 28, is charged with six counts of distribution of crack cocaine, which carries a maximum sentence of 20 years in prison.

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Berman praised the outstanding investigative work of the FBI Westchester County Safe Streets Task Force and the Port Chester Police Department. 

These cases are being handled by the Office’s White Plains Division.  Assistant United States Attorneys Christopher Brumwell and Vladislav Vainberg are in charge of the prosecution.

The charges contained in the Complaints are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

LOUISVILLE, Ky. – A former Louisville Metro Police Department officer has pleaded guilty before United States District Judge David J. Hale for enticement, attempted enticement, possession of child pornography, transfer of obscene materials to a minor and distribution of child pornography, announced United States Attorney Russell M. Coleman.

“This defendant dishonored the proud badge and uniform of Louisville’s Finest with his perversion and used it to prey on our young people,” stated U.S. Attorney Russell Coleman. “The Federal Bureau of Prisons awaits the outcome of his sentencing.”

Kenneth R. Betts, 34, of Shelbyville, Kentucky, was charged in an Indictment returned by a federal Grand Jury on November 7, 2018, with one count of distribution of child pornography, one count of possession of child pornography, three counts of enticement of individuals under the age of 18 years to engage in sexual activity, one count of transfer of obscene materials to an individual under the age of 16, and one count of attempted enticement of an individual under the age of 18.  All of his criminal conduct occurred in Jefferson County, Kentucky.

According to the Plea Agreement, in or about and between February 2006 and February 2008, Betts communicated with an individual (John Doe 1), who had not attained the age of eighteen years.  Betts communicated with John Doe 1 via Facebook and other social media.  During those communications, Betts knowingly persuaded, induced, and enticed John Doe 1 to engage in sexual activity, including sharing sexually explicit images with Betts.  The resending of such images is sexual activity that constitutes a criminal offense. 

On or about May 14, 2014, Betts knowingly distributed child pornography.  He sent two of the images referenced above to John Doe 1.  Betts transmitted the images to John Doe 1 using Facebook. 

Law enforcement officials executed a state search warrant on Betts’ residence on October 13, 2016.  Among other things, they seized digital devices – including an external hard drive.  Forensic examination of the digital devices revealed Betts’ possession of child pornography.  Namely, he possessed the four images he originally requested and received from John Doe 1.

John Doe 2 (Counts 4 and 5). In or about and between May 2010 and May 2014, Betts communicated via the Internet with an individual (John Doe 2), who had not attained the age of eighteen years.  The two met and became acquainted through the LMPD Explorers Program.  Betts communicated with John Doe 2 via Facebook and other social media platforms.  During those communications, Betts knowingly persuaded, induced, and enticed John Doe 2 to engage in sexual activity.  The sexual activities included a one-time in-person sexual encounter involving oral sex between Betts and John Doe 2 and repeated requests for sexually explicit images to be shared with Betts.  The oral sex and requests for photos are activities for which a person may be prosecuted for a criminal offense. 

From May 2010 through May 2012, Betts used a facility and means of interstate commerce to send pictures of himself to John Doe 2.  During that time period, Betts knew John Doe 2 had not attained the age of 16 years.

Jane Doe 1 (Count 6) In or about and between June 2013 and July 2013, Betts used a facility and means of interstate commerce, that is, a cellular telephone and its text messaging feature, to communicate with Jane Doe 1.  At that point in time, Jane Doe 1 was 16.  The two met and became acquainted through the LMPD Explorers Program.  During the communications, Betts asked Jane Doe 1 to meet for sexual activity.  He also asked Jane Doe 1 for sexually explicit photos, which Jane Doe 1 provided to him.  The photos Jane Doe 1 provided constituted a violation of Kentucky law.  Law enforcement officials with LMPD observed the images as well as the receipt of those images by Betts.  However, the images were destroyed during the initial investigation.

John Doe 3 (Count 7) In or about and between September 2014 and November 2014, Betts used a facility and means of interstate commerce, that is, a cellular telephone, Facebook and SnapChat (a social media platform), to communicate with John Doe 3.  At that point in time, John Doe 3 was 17.  Betts and John Doe 3 had met and become acquainted through the LMPD Explorers Program.  During the communications, Betts asked John Doe 3 to meet for sexual activity.  He also asked John Doe 3 for sexually explicit photos.  He attempted to persuade, induce, entice, or coerce John Doe 3 to engage in unlawful sexual activity. Betts sent John Doe 3 a photograph of himself wearing an LMPD uniform and in the company of a young woman during some of the communications encouraging a three-way.  However, John Doe 3 refused to meet Betts for sexual activity or to send the requested sexually explicit images of himself. 

Betts faces no less than 10 years in prison due to statutory mandatory minimum sentencing requirements.  The maximum potential sentence is life in prison.  The charges also carry a maximum potential fine of $1,750,000.00 and a term of Supervised Release of not less than five years and could be up to a term of life.  There is no parole in the federal criminal system. Sentencing has been scheduled for March 18, 2019.

Assistant United States Attorney Jo E. Lawless is prosecuting the case, and it is being investigated by the Federal Bureau of Investigation (FBI) and the Louisville Metro Police Department’s Public Integrity Unit.

Eight men from around the country were sentenced today and yesterday for participating in an international child pornography production ring, announced United States Attorney Matthew Schneider of the Eastern District of Michigan, and Special Agent in Charge Timothy Slater of the Federal Bureau of Investigation, Detroit Division.

            Sentenced were:

• Christian Maire, age 40 Binghamton, New York, was sentenced to 40 years
• Arthur Simpatico, age 47 Mississauga, Ontario, Canada, was sentenced to 38 years
• Jonathan Negroni Rodriguez, age 37 West Hollywood, California, was sentenced to 35 years
• Michal Figura, age 36 Swarthmore, Pennsylvania, was sentenced to 31 ¼ years
• Odell Ortega, age 37 Miami, Florida, was sentenced to 37 ½ years 
• Brett Jonathan Sinta, age 36 Hickory, North Carolina, was sentenced to 30 ½ years
• Caleb Young, age 38 Cuyahoga Falls, Ohio, was sentenced to 30 years
• Daniel Walton, age 34 Saginaw, Texas, was sentenced to 30 ½ years

In addition to their prison sentences and terms of supervised release, all of the defendants were ordered to pay $5000 in restitution to each of the identified victims, reaching a total of over one million dollars.  United States District Judge Stephen J. Murphy, III of the Eastern District of Michigan imposed the sentences.

 According to court records, these eight men worked together from 2012 through 2017, with other men both inside and outside of the United States, to lure juvenile girls to an unmonitored video chat website and then sexually exploit them.  The men recruited the victims from common social media platforms by pretending to be teenage boys interested in chatting with the girls in real time.  Once the victims arrived in the chatrooms, the group—all pretending to be teenagers—worked together to build trust and convince the children to engage in sexually explicit conduct on web cameras.  Group members then recorded that activity.  The girls were unaware that the men were making recordings, or what they dubbed “captures,” of the sexual activity.

Through their scheme, the group successfully targeted hundreds of minors, some as young as ten years old.  The forensic examination of their devices recovered over 450,000 child exploitive and child pornography videos of these minors, some of whom were present for the sentencing hearing and made statements to the Court.  Still other victims have not been identified.  The FBI has so-far identified more than two dozen victims in the United States.

“These predators committed truly horrific crimes against innocent girls and they deserve decades in prison.  Shockingly, some of these defendants have young children themselves,” said United States Attorney Schneider.  “Parents, please speak with your children about the dangers of chatting online so we can keep all of our children safe.”

“Those who abuse children by enticing them to produce pornographic images of themselves cause grave harm to their victims and to our community,” said FBI Special Agent in Charge Slater. “The FBI, our partners in the SEMTEC task force, and our global law enforcement network will continue to work together to identify these criminal networks and aggressively pursue charges against those who victimize and exploit innocent children.”

Assistant United States Attorneys April Russo and Kevin Mulcahy of the Eastern District of Michigan prosecuted the case.  The FBI’s Detroit Field Office and Southeast Michigan Trafficking and Exploitation Crimes task force investigated the case.

The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.

       MONTGOMERY, AL – Today, Germaine Moore, 45, of Millbrook, Alabama, was sentenced to 50 years in prison for three counts of production of child pornography, announced United States Attorney Louis V. Franklin, Sr., Secretary of the Alabama Law Enforcement Agency Hal Taylor, District Attorney Randall Houston, and FBI Special Agent in Charge James Jewell.  Moore had previously pled guilty to the charges in August 2018.  There is no parole in the federal prison system.  Upon completion of 600 months in prison, Moore will be subject to supervision for the rest of his life. 

       The case began on or about January 31, 2018, when law enforcement officials received complaints regarding a Facebook video posting depicting a child performing oral sex on an adult male.  Law enforcement traced the video to Moore.  Three minor victims were interviewed and disclosed that Moore had sexually abused them and produced videos of the sexual abuse.  On February 5, 2018, the Alabama State Bureau of Investigation (SBI) executed search warrants on Moore’s Millbrook, Alabama home.  SBI located additional child pornography images on various devices found in Moore’s home and later in an apartment that he had access to in Prattville, Alabama.  Investigators found that Moore possessed around 190 child pornography videos on an SD card, and 231 child pornography images on an IBM hard drive. 

       “Moore’s crimes are revolting and despicable,” said U.S. Attorney Franklin.  “When predators exploit children, they rob them of their innocence and their wellbeing.  No child should have to endure what Moore’s victims went through.  We hope this sentence sends a warning to anyone that sexually assaults or exploits a child that we will not sit by and allow it to happen.  People in our community want to protect children, and they will help law enforcement find predators and put them away for a long time.”    

       “Collaboration on all levels of law enforcement is effective as evidenced by the investigation and prosecution of Germaine Moore, but we also depend on the public’s assistance,” stated Secretary of the Alabama Law Enforcement Agency Hal Taylor.  “Without a tip, we may never have discovered Moore’s predatory crimes or taken him into custody within a matter of days.”

       “The U.S. Attorney’s Office and ALEA are the real heroes in this case,” said Randall Houston, District Attorney for the 19^th Judicial Circuit.  “Their relentless pursuit of justice is truly inspiring. I am extremely proud of the joint effort by everyone to go above and beyond to make sure this predator won’t ever have access to another child.”

       This case was investigated by the Alabama State Bureau of Investigation with assistance from the Federal Bureau of Investigation, National Center for Missing and Exploited Children, United States Marshal’s Service, Michigan State Police, Detroit Police Department, Millbrook Police Department, Prattville Police Department, Tallapoosa County Sheriff’s Office, Alexander City Police Department, and Montgomery Police Department. The case was prosecuted by Assistant U.S. Attorney Hollie Worley Reed of the Middle District of Alabama.

      This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

          CONCORD - Nathaniel Carr, 24, of Concord, pleaded guilty to unlawful possession of firearms and ammunition by a prohibited person, announced United States Attorney Scott W. Murray.

          According to court documents and statements made in court, on August 1, 2018, a police officer saw a Chevrolet Trailblazer with expired temporary license plates, driven by Carr, exit a convenience store’s parking lot on Loudon Road.  A police officer later located the vehicle, with Carr sitting in the driver’s seat, in another parking lot on Loudon Road.   At that location, the police officer parked behind the Trailblazer.  When Carr opened the driver’s door, the police officer saw a .22 caliber revolver in the pocket of the driver’s door and a box of .22 caliber ammunition in front of the front passenger seat.  As a previously-convicted felon, Carr is prohibited by federal law from possessing firearms or ammunition.

          While later executing a warrant to search Carr’s residence on August 24, 2018, the Concord Police Department found 20 rounds of .380 caliber ammunition and 31 rounds of .38 caliber ammunition in a safe; a .380 caliber pistol and 30 rounds .380 caliber ammunition in a backpack; and a .12 gauge shotgun shell in Carr’s bedroom. 

          Carr will be sentenced on March 13, 2019.

          “Keeping guns out of the hands of criminals is necessary in order to keep our community safe,” said U.S. Attorney Murray.  “In order to reduce violent crime, we will work closely with our law enforcement partners to identify, prosecute, and incarcerate criminals who possess firearms.”

          This matter was investigated by the Concord Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant United States Attorney Anna Krasinski is prosecuting the case.

          The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.

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A California man was indicted for transporting five people in the country illegally.

Yusnier Perez-Canet, 20, was indicted on five counts of transportation of aliens not lawfully in the United States.

Perez-Canet on Sept. 26 was transporting five people who were in the country illegally, according to the indictment.

If convicted, the defendant's sentence will be determined by the Court after reviewing factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation.  In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

The investigating agency in this case is the U.S. Border Patrol.  The case is being handled by Assistant U.S. Attorneys Ashley A. Futrell and Thomas P. Weldon.

An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

BOSTON – Six individuals were arrested today in Lawrence and charged in federal court in Boston with identity theft and Social Security fraud.

The following six Lawrence residents were each charged in federal court in separate criminal complaints with one count of misuse of a Social Security number and one count of aggravated identity theft:

1. John Doe, whose true identity is unknown, allegedly requested a replacement Social Security card in the name of a deceased U.S. citizen from Puerto Rico while in jail on state drug charges. The mother of the deceased U.S. citizen confirmed that the photograph used by the suspect was not her son’s. In November 2018, the suspect attempted to obtain Medicaid benefits using the stolen identity, but appeared deceased in the Social Security system.
2. John Doe, whose true identity is unknown, was convicted of possession with intent to distribute heroin while using the identity of a U.S. citizen from Puerto Rico. A comparison of license photos and booking photos, both in Massachusetts and Puerto Rico, allegedly revealed that the individual in Massachusetts was using a fraudulent identity.
3. Lenin Alfredo Amparo, 44, a Dominican national with Lawful Permanent Residency status, with an extensive criminal history, including drug conspiracies, assault and battery, breaking and entering, destruction of property, and operating under the influence, submitted an application for a Massachusetts driver’s license in the identity of a U.S. citizen from Puerto Rico.
4. Julissa Ranee Acosta Estevez, 45, a Dominican national, presented the name, Social Security card, and birth certificate of a deceased U.S. citizen from Puerto Rico as her own when she applied for a Massachusetts driver’s license. Acosta Estevez used the stolen identity to apply for and receive approximately $6,500 in unemployment insurance benefits. Social Security records verify a 2016 death record associated with the stolen identity as well as a 2017 application filed for child for survivor benefits in Puerto Rico.
5. Andres Aridio Contrera Diaz, 30, a Dominican national, presented a name, Social Security number, and date of birth of a U.S. citizen from Puerto Rico in an application for a Massachusetts driver’s license. In addition, Contrera Diaz has received approximately $6,117 in unemployment insurance in the name of the stolen identity. Social Security records revealed the victim whose identity was stolen resides in Puerto Rico. Subsequent investigation discovered the victim had never been to Massachusetts, let alone applied for benefits in Massachusetts.
6. Raul Alexander Guerrero-Sanchez, 35, a Dominican national, when arrested for drug offenses, including distribution of heroin and distribution of cocaine, presented the identification of a U.S. citizen and resident of Puerto Rico as his own.

“These were targeted investigations, aimed specifically at identifying people who have stolen the identities of others,” said United States Attorney Andrew E. Lelling. “And the continued emphasis on the City of Lawrence is no coincidence: with the help of state and local partners, we will continue targeting drug, gun, and immigration-related crime in that city until the crime rate there drops substantially. This has been, and will continue to be, a top priority of my office.”

“Today’s arrests demonstrate our commitment to stopping the real threats and devastating financial impacts that American taxpayers and citizens face from the danger of identity theft crimes,” said Peter C. Fitzhugh, Special Agent in Charge, Homeland Security Investigations in Boston. “Along with our local and federal partners, we look forward to the successful prosecution of these individuals who have literally robbed the identities and stolen directly out of the pockets of American taxpayers.”   

The investigation was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), comprised of various local, state and federal agencies with expertise in detecting, deterring and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes. 

Among those individuals that the DBFTF is currently investigating are suspected aliens, predominately from the Dominican Republic, who are believed to have obtained stolen identities of United States citizens living in Puerto Rico and who have used those identities to obtain documents and public benefits that they would not otherwise be eligible to receive, such as Registry of Motor Vehicles identity documents, Social Security numbers, Medicaid, unemployment and public housing subsidies.

U.S. Attorney Lelling; HSI SAC Fitzhugh; Scott Antolik, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office; Michael Mikulka, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations; Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General; Joseph Cronin, Inspector in Charge of the U.S. Postal Inspection Service; Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, Northeast Regional Office; Denis C. Riordan, District Director, U.S. Citizenship and Immigration Services, District 1; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistant U.S. Attorney David G. Tobin of Lelling’s Major Crimes Unit is prosecuting the cases.

The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

NEW ORLEANS, LOUISIANA – IRVIN MAYFIELD, age 40, and RONALD MARKHAM, age 39, both residents of New Orleans, Louisiana, were charged by a federal grand jury in a 24-count second superseding indictment for conspiracy, wire fraud, mail fraud, money laundering, obstruction of justice, and false statements announced the United States Attorney’s Office.

In addition to the allegations contained in the previous superseding indictment, the second superseding indictment provides the following new details about the conspiracy charged in Count 1:

• On about October 26, 2012, MAYFIELD contacted a staff member of a local church with whom he was friends, and asked for the church to hold approximately $70,000 of the New Orleans Public Library Foundation (NOPLF) money in a church bank account, telling the staff member that he was trying to avoid moving the funds to an organization of which he was a board member.
   
• On about October 2, 2013, MAYFIELD and MARKHAM falsely informed and caused NOPLF auditors to be falsely informed that money transferred to the Youth Rescue Initiative (YRI) was for book drives.
   
• After being notified of the issuance of grand jury subpoenas to NOPLF auditors and an investment account manager, MARKHAM and MAYFIELD caused NOPLF employee “A” to email 2011 through 2013 NOPLF board minutes to MARKHAM on about November 19, 2013.
   
• On about November 24, 2013, MAYFIELD and MARKHAM told NOPLF employee “A” to meet them at MAYFIELD’s home where they instructed employee “A” to change line items and dollar amounts on NOPLF board minutes.
   
• On about November 25, 2013, MAYFIELD and MARKHAM emailed and caused to be emailed the fraudulently edited board minutes, now labelled the “official board minutes,” to unwitting legal counsel for NOPLF.
   
• On about November 25, 2013, MAYFIELD and MARKHAM sent and caused to be sent a materially false and misleading email to NOPLF board members attaching the fraudulently altered NOPLF board minutes and false claimed the records justified the transfer of money from NOPLF to the New Orleans Jazz Orchestra (NOJO).
   
• On about December 26, 2013, MAYFIELD and MARKHAM discouraged the Executive Director of the New Orleans Public Library from asking for its annual $100,000 in support from NOPLF, claiming that there were not nearly as many resources as thought, that if the Library continued to ask for such support, the resources would soon be depleted, and that the Library’s continued reliance on the NOPLF for support, even for small dollar amounts, would depend on the Library and the NOPLF jointly raising significant funds on an annual basis.
   
• On about January 14, 2014, MARKHAM falsely informed NOPLF board members, employees of NOPLF and NOPLF legal counsel that NOPLF did not fund NOJO salaries for MAYFIELD and MARKHAM and that NOJO was not dependent on NOPLF funding.

Furthermore, the second superseding indictment adds Count 24 (false statements) which alleges that MARKHAM lied to the FBI when he stated that he did not know who altered the NOPLF board minutes and did not know how the board minutes were changed, when in truth and in fact, as he then well knew, he had personally participated in fraudulently altering the board minutes, as detailed above.

If convicted, the defendants face five years of imprisonment as to Count 1, 20 years of imprisonment as to Counts 2 through 8, ten years of imprisonment as to Counts 9 through 22, and 20 years imprisonment as to Count 23. As to Count 24, MARKHAM faces 5 years of imprisonment. All counts also carry a possible $250,000 fine.  

The United States Attorney’s Office reiterated that the second superseding indictment is merely a charge and that the guilt of the defendants must be proven beyond a reasonable doubt.  

The case was investigated by the Federal Bureau of Investigation and the New Orleans Inspector General’s Office and is being prosecuted by Assistant U. S. Attorneys G. Dall Kammer, Supervisor of the General Crimes Unit, Brandon Long, and Theodore Carter.

                                                                       *   *   *

Kansas City, Missouri – Today, at the 2018 Project Safe Neighborhoods (PSN) National Conference, Acting Attorney General Matthew Whitaker presented the U.S. Attorney’s Office for the Southern District of Mississippi and its law enforcement partners with the award for Outstanding Overall Partnership/Task Force for Project EJECT. Only 16 awards were given during the annual PSN National Conference, which recognize individuals and groups for their dedication and contribution to the success of PSN. Project EJECT was one of only two recognized as the best partnerships or task forces in the nation.

"Project Safe Neighborhoods is making our prosecutions more targeted and more effective—and that makes the American people safer," said Acting Attorney General Whitaker. "Today the Department recognizes 16 examples of those who go above and beyond the call of duty in using PSN to reduce violent crime. We had a lot of impressive nominees, but even with tough competition, these 16 stood out. I want to thank each one of them for their service and congratulate them on a job well done."

When specifically referring to Project EJECT, Acting Attorney General Whitaker stated, "They’re hitting violent crime from every angle—and it shows."

"Just one year ago, we launched Project EJECT with the intent of making our Capital City safer for everyone. I’m incredibly proud of what our partners, our office and our prosecutors have been able to accomplish in such a short period of time. By empowering our citizens and working together, and doing more than just prosecute crimes, we are reducing overall violent crime in the City of Jackson and making our communities safer. I look forward to continuing this important work in Jackson and expanding it throughout the Southern District in the coming year" said U.S. Attorney Mike Hurst.

In December 2017, the U.S. Attorney’s Office for the Southern District of Mississippi launched its PSN task force to combat violent crime occurring in Jackson, Mississippi. The United States Attorney’s Office, ATF, DEA, FBI, and U.S. Marshals Service joined forces with Homeland Security Investigations, the Jackson Police Department, Hinds County District Attorney’s Office, Mississippi State Crime Laboratory, state law enforcement, Jackson city council members, community leaders, business leaders, non-profits, and faith leaders to form Project EJECT, a holistic, multi-disciplinary approach to combating violent crime. EJECT stands for "Empower Jackson Expel Crime Together," Project EJECT employs four platforms: prevention; prosecution; reentry and rehabilitation; and awareness. In addition to undertaking significant enforcement efforts, members of the task force conduct prevention activities at schools and non-profits, and engage the community through regular town hall meetings. This coordinated and comprehensive approach helped reduce violent crime in the City of Jackson by over 7% since this time last year.

"Just over a year ago, this initiative was only a concept aimed at using the assets and resources of the whole community to make Mississippi safer, and I am proud of the work that has been done by all of the agencies and partner organizations involved in the endeavor," said Christopher Freeze, Special Agent in Charge of the FBI in Mississippi. "From the initial proposals and discussions about the objective of the project, to numerous investigations and successful prosecutions, our Special Agents, Task Force Officers, Intelligence Analysts and Professional Support staff have worked countless hours to reduce violent crime and make our communities safer, no matter who gets the credit. Although this is the only narrative most people hear, the center focus of our involvement is the culture our children and their children will face in the coming years. We hope that this initiative will continue to build a culture and community for today, for our children and for their children."

"Project Eject is another example of the commitment of the ATF, the US Attorney’s Office and all of our federal, state and local law enforcement partners to impact and reduce violent crime in the city of Jackson," said Dana K. Nichols, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives New Orleans Field Division. "With the inclusion of the community and community leaders in Project EJECT, we have created a truly unique strategy and partnership that will pay dividends for the citizens of Jackson for not only this year, but for years to come. We are "ALL" committed to making our neighborhoods safer."

"Project EJECT inflicted a debilitating blow to the network of drug traffickers and violent criminals in the city of Jackson and beyond," said DEA Assistant Special Agent in Charge J. Derryle Smith. "This project continues a deliberate and strategic effort to cut off and shut down the supply of drugs and guns entering our cities and is a milestone in our tireless assault on these violent drug traffickers. The results of Project EJECT clearly demonstrate DEA’s commitment, along with the combined strength that federal, state, and local agencies, both in law enforcement and civilian, bring to bear in the battle to keep our neighborhoods safe. U.S. Attorney Hurst and his entire staff are to be commended for their continuing efforts into battling violent crime in the city of Jackson."

Attending the PSN National Conference on behalf of Project EJECT is U.S. Attorney Mike Hurst, First Assistant U.S. Attorney Darren LaMarca, U.S. Attorney’s Office Criminal Chief Courtney Coker, Jackson Police Department Assistant Chief Ricky Robinson, and Hinds County Assistant District Attorney Pat McNamara.

PHILADELPHIA – U.S. Attorney William M. McSwain announced that David Fili, Jr., 48, of Drexel Hill, PA, was sentenced today by United States District Judge Joel H. Slomsky to one day in jail and five years of supervised release, with the first 18 months of supervised release to be served on home confinement. Significantly, the defendant was ordered to forfeit $1,969,312.02, and is jointly and severally liable to pay $9,567,074.56 in restitution.  Fili previously entered a guilty plea to ten counts of wire fraud and two counts of bank fraud.

Along with George Barnard, 47, of Newtown Square, PA, Fili owned Capital Financial Mortgage Corporation (“CFMC”), based in Delaware County, PA. Between 2005 and March 2013, Fili and Barnard issued refinance mortgage loans to customers of CFMC. Instead of using the money to pay off their customers’ outstanding first mortgages, however, they diverted $9,781,977 to themselves from bank accounts belonging to CFMC and several title companies owned by Barnard. Barnard was previously sentenced to five years in prison for his role in the scheme.

As part of his guilty plea, Fili admitted that he used much of the money he diverted to buy a vacation home and to support his gambling habit (while Barnard used the money he diverted to buy multi-million dollar beach homes in Avalon, New Jersey, several yachts, and to pay the salary of a yacht captain). At the time that the scheme fell apart in March 2013, Fili and Barnard left over two dozen CFMC customers stuck with two mortgages on their homes because CFMC had failed to pay off their customers’ existing first mortgages.

“For many years, Fili defrauded honest, hard-working individuals out of their money so that he could gamble it away and relax in his illegally-obtained vacation home, “ said U.S. Attorney McSwain. “The defendant’s vacation ends now. We are thankful that the Court ordered him to pay millions of dollars as a result of his crimes.”

The case was investigated by the Federal Bureau of Investigation and the Department of Housing and Urban Development, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.