BOSTON – A Canton woman was charged on Friday, Sept. 27, 2019, in federal court in Boston in connection with an ongoing investigation into a business email compromise (BEC) scheme.

Bintu Toure, 26, was charged with wire fraud and money laundering conspiracy. Toure will appear in federal court in Boston at a later date. She is the second defendant to be charged in connection with this scheme, following the indictment of Yannick Minang in July.   

Toure allegedly conspired with others to open numerous bank accounts in Massachusetts in the name of sham companies, as part of an apparent BEC scheme. A BEC scheme is a sophisticated scam often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques, to cause employees of the victim company (or other individuals involved in legitimate business transactions) to transfer funds to accounts controlled by the scammers.

It is alleged that, through the use of fraudulent invoices and spoofed email accounts, Toure conspired to trick the victims of the scheme into wiring hundreds of thousands of dollars to bank accounts under her control. Toure and her co-conspirators then transferred funds from the accounts on to others located overseas.

The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the amount involved in the transaction, whichever is greater. 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney William B. Brady, of Lelling’s Criminal Division, and Jordi de Llano, Deputy Chief of Lelling’s Securities & Financial Fraud Unit, are prosecuting the case.

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

Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Cesar Osiris DeLeon-Castillo (36, Clermont) and Jefry Agustin Valerio-Perez (39, Orlando) to 5 years and 4 years and nine months in federal prison, respectively, for possession with the intent to distribute one kilogram of heroin. DeLeon-Castillo and Valerio-Perez had pleaded guilty in June 2019.

According to court documents, DeLeon-Castillo and Valerio-Perez were arrested on March 14, 2019, in the parking lot outside a barber shop in Clermont, where DeLeon-Castillo had worked. At the time, the men were attempting to complete a drug transaction involving $56,000 in exchange for a kilogram of heroin that they had in their possession. DeLeon-Castillo and Valerio-Perez were taken into custody at the scene. 

This case was investigated by the Drug Enforcement Administration with support from the Volusia County Sheriff’s Office and the Lake County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.

PITTSBURGH, Pa. – A resident of Mt. Lebanon, Pennsylvania, was charged in federal court with violating the Clean Air Act, United States Attorney Scott W. Brady announced today.

Vikas Jain, 47, was charged by criminal Information with one count of knowingly violating work practice standards of the Clean Air Act.

"As western Pennsylvanians, we cherish our abundant natural resources, and we take seriously our responsibility to protect them," said U.S. Attorney Brady. "In this case, an unscrupulous developer is charged with illegally removing and dumping asbestos in violation of the Clean Air Act, thereby compromising not only our region’s air quality, but also the health of the workers hired to perform the removal activity."

According to the Information, the defendant controlled various business entities focusing primarily on residential and commercial real estate development and management. In approximately May 2012, the defendant, through one such entity, purchased the George Westinghouse Research and Technology Park (the Westinghouse Facility), a multi-building commercial and industrial complex located on approximately 150 acres in Churchill, Pennsylvania. The Westinghouse Facility was built between approximately the 1950s and 1970s, and it comprised over one million square feet of testing, laboratory, and office space across more than a dozen buildings. As alleged, the defendant sought to redevelop the Westinghouse Facility and surrounding property for commercial and residential mixed-use purposes.

The Information further alleges that, prior to completing the purchase of the Westinghouse Facility, the defendant obtained the results of an earlier environmental assessment of the property, which identified the presence of asbestos-containing materials (ACM) in, among other substances, floor tile and pipe insulation located throughout the complex. Between approximately May 2012 and February 2017, the defendant, through entities he controlled, allegedly leased space at the Westinghouse Facility to third-party tenants, including television production companies. For the most part, however, the Westinghouse Facility remained unoccupied.

In connection with one licensing agreement in approximately 2015, the defendant obtained two asbestos-abatement permits from the Allegheny County Health Department (ACHD) allowing for the proper removal of ACM in portions of two of the buildings at the Westinghouse Facility. The removal was completed by a licensed abatement contractor. Later, as alleged, in early 2017, the defendant, through a contractor working on the redevelopment project, obtained a proposal from a different licensed abatement entity to inspect another building that the defendant intended to demolish. The proposal was never consummated.

Rather, according to the Information, beginning no later than approximately February 1, 2017, and continuing until February 28, 2017, the defendant directed various workers to remove previously unabated ACM from two buildings at the Westinghouse Facility, including large quantities of ACM floor tiles, mastic, and pipe insulation. As alleged, the defendant further directed a worker to rent floor grinders, which the workers then used to remove and pulverize ACM floor tiles and mastic. The defendant did not apply for or obtain an ACHD permit for the abatement activity, and workers allegedly conducted the removal of ACM without proper protective clothing or adequate respirators. Once removed, ACM debris allegedly was placed in black trash bags and taken by workers via a pick-up truck to a dumpster located outside of one of the defendant’s residential rental properties. The contents of the dumpster, including sealed trash bags containing ACM, were subsequently taken to a local landfill that was not qualified to receive asbestos-contaminated waste.

Finally, the Information alleges that, after local authorities in Churchill and ACHD investigators learned of the illegal asbestos abatement, the defendant took steps to conceal the nature and extent of the removal activity, including by causing grinders to be removed from the Westinghouse Facility, cleaned, and, as to two grinders, returned to the equipment rental company prior to inspection by ACHD.

The defendant faces a maximum sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendants.

Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government, with assistance from Perry D. McDaniel, Regional Criminal Enforcement Counsel of the Environmental Protection Agency. The Federal Bureau of Investigation and Environmental Protection Agency’s Criminal Investigation Division conducted the investigation of the defendant.

A criminal Information is an accusation.

A defendant is presumed innocent unless and until proven guilty. The filing of an Information generally indicates that the defendant intends to enter a guilty plea.

BOSTON – A Connecticut restaurant owner was sentenced on Friday, Sept. 27, 2019, in federal court in Springfield for failing to file tax returns.  

Giuseppe Scuderi, 62, of West Suffield, Conn., was sentenced by U.S. District Court Judge Mark G. Mastroianni to six months in prison and ordered to pay $170,769 in restitution. In June 2019, Scuderi pleaded guilty to one count of failing to file a tax return for the year 2015, and his company, Scuderi’s Inc., pleaded guilty to five counts of filing false tax returns for the years 2010 through 2014. Scuderi and Scuderi’s Inc. were charged on May 3, 2019.

According to court documents, Scuderi was the owner of a Southwick restaurant that generated a substantial amount of cash sales. From 2010 to 2014, Scuderi took cash from the business, did not declare it as income, and kept two sets of books, which depicted both the actual sales of the business and the sales disclosed on his tax returns. As a result of his scheme, Scuderi failed to pay $170,769 in taxes to the government.

United States Attorney Andrew E. Lelling and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney Alex J. Grant of Lelling’s Springfield Branch Office prosecuted the case.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that a grand jury in the Southern District of New York has returned an indictment charging JON BARRY THOMPSON, a/k/a “J. Barry Thompson,” the principal of the cryptocurrency escrow company Volantis Escrow Platform LLC and the related company Volantis Market Making LCC (collectively “Volantis”) with commodities fraud and wire fraud offenses.  As alleged, THOMPSON took over $7 million from two victim companies after making false promises in connection with Bitcoin transactions.  THOMPSON was arrested in July based on a criminal complaint filed by this Office charging him with the same crimes.  The case has been assigned to U.S. District Judge Edgardo Ramos.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, Jon Barry Thompson repeatedly lied to investors in cryptocurrencies about the safety of their investments made through his companies.  As a result of Thompson’s lies, investors lost millions of dollars.”

In a separate civil action, the U.S. Commodity Futures Trading Commission (“CFTC”) today filed civil charges against THOMPSON. 

As alleged in the Indictment and the criminal complaint previously filed in this case:[1]

THOMPSON claimed in promotional materials that Volantis “minimize[d] settlement default risk” in cryptocurrency transactions.  THOMPSON claimed that because Volantis acted as a custodian of assets for “both sides of the transaction, there is no risk of default.” 

 In June and July 2018, THOMPSON made false statements to one victim company (“Company-1”) to induce Company-1 to send Volantis over $3 million to fund the purchase of Bitcoin for Company-1.  THOMPSON falsely assured Company-1 that THOMPSON had the Bitcoin in hand and Company-1’s money could not be lost.  Even though THOMPSON had told Company-1 that before any transaction, “cash is with me, coin is with me,” THOMPSON sent over $3 million of Company-1’s money to a third-party entity purportedly in exchange for Bitcoin without first receiving any of the Bitcoin in hand.  After taking Company-1’s money, THOMPSON lied for days about the status of the transaction and the location of Company-1’s Bitcoin and money, which was never returned. 

In July 2018, THOMPSON made false statements to another victim company (“Company-2”) to induce Company-2 to send Volantis over $4 million to fund the purchase of Bitcoin for Company-2.  After receiving Company-2’s money, THOMPSON sent a substantial portion of the money to a third party without first receiving any Bitcoin in return.  THOMPSON never provided Company-2 with any Bitcoin, nor did he return Company-2’s money.  After receiving Company-2’s money, THOMPSON also lied to Company-2 about the location of the Bitcoin and the status of the transaction.

*                      *                      *

THOMPSON, 48, of Easton, Pennsylvania, is charged with two counts of commodities fraud, each of which carries a maximum sentence of 10 years in prison, and two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Berman praised the investigative work of the Federal Bureau of Investigation and also thanked the CFTC for its assistance. 

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jordan Estes and Drew Skinner are in charge of the prosecution.

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

United States Attorney Ron Parsons announced the resolution of several cases, all of which are separately noted below, that were brought pursuant to the U.S. Attorney’s Office’s Guardians Project.  The Guardians Project is a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities.    

The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities.  Led by the U.S. Attorney’s Office, the participating federal agencies include: Federal Bureau of Investigation; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspector Service; U.S. Postal Service, Office of Inspector General.

“These cases demonstrate the success that the Guardians Project has had since its inception in South Dakota’s U.S. Attorney’s Office,” said U.S. Attorney Ron Parsons.  “The Project has secured dozens of convictions involving millions of dollars that were unlawfully diverted by the few who were in positions of trust and power.  As a result of the hard work of this Office and its federal partners, tax-payer funds are being safeguarded and that money is being returned to the communities that need it the most.”

Two Former Crow Creek Tribal Court Clerks

Sentenced for Embezzlement

Kathleen Goodlow, age 68, of Ft. Thompson, South Dakota, and Christine Reed, age 41, of Pukwana, South Dakota, were sentenced for their respective guilty pleas to Embezzlement and Theft from an Indian Tribal Organization.  U.S. District Judge Roberto A. Lange presided over the sentencing hearings.

Goodlow was sentenced to federal custody for 1 month and to 2 years of supervised release.  She was also ordered to pay restitution in the amount of $5,255, joint and several with Reed.  Reed was sentenced to 2 years of probation and ordered to pay the same amount of restitution as Goodlow.  Each was ordered to pay a special assessment of $100.

According to court documents, from August 2017 through October 2018, Goodlow and Reed embezzled and converted to their own use more than $5,000 of monies, funds, credits, goods, assets, and other property belonging to the Crow Creek Tribal Court, an Indian Tribal Organization. 

The investigation was conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office.  Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.

Business Owner Pleads Guilty to Bribery Concerning

Programs Receiving Federal Funds

John Thomas German, Jr., age 35, of Peever, South Dakota, pleaded guilty to one count of bribery concerning programs receiving federal funds.  He entered his guilty plea before U.S. District Judge Charles B. Kornmann on September 23, 2019. 

According to court documents, John Thomas German, Jr., formed a business on December 15, 2016, called Tatanka Contracting.  On October 27, 2017, Dakota Nations Development Corporation contracted with Tatanka Contracting to do the earthwork associated with the elderly village project.  The contract was for a guaranteed price of $1,070,740, although a change order increased the total of the contract to $1,129,679.  On November 6,2017, German corruptly gave, offered, and agreed to give a thing of value to an agent of a tribal organization, Dakota Nations Development Corporation, intending to influence and reward that agent in connection with a transaction and series of transactions of the Dakota Nations Development Corporation involving $5,000 or more. 

The maximum penalty upon conviction is up to 10 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.  The sentencing hearing will be held at the federal courthouse in Aberdeen on December 16, 2019.

The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office.  Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.

Business Owner Pleads Guilty to Embezzlement from

Sisseton-Wahpeton Tribal Organizations

Dustin Martin Kirk, age 46, of Sisseton, South Dakota, pleaded guilty to one count of felony embezzlement and theft from an Indian Tribal Organization.  Kirk entered his guilty plea before U.S. District Judge Charles B. Kornmann on September 23, 2019.

According to court documents, in or about August 2016 and December 2018, in the District of South Dakota, Dustin Martin Kirk and his business embezzled, stole, and converted more than $1,000 of monies, funds, credits, goods, assets, and other property belonging to Dakota Nation Development Corporation and the Sisseton-Wahpeton Housing Authority, both of which are entities of the Sisseton-Wahpeton Oyate Sioux Tribe and Indian Tribal Organizations.

The maximum penalty upon conviction on each count is up to 5 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victim’s Fund.  Restitution may also be ordered.  The sentencing hearing will be held at the federal courthouse in Aberdeen on May 11, 2020.

The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office.  Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.

Former Tribal Supervisor Pleads Guilty to Embezzlement

from Sisseton-Wahpeton Tribal Organization

Jerome Renville, age 42, of Peever, South Dakota, pleaded guilty to one count of misdemeanor embezzlement and theft from an Indian Tribal Organization.  Renville entered his guilty plea before U.S. Magistrate Judge William D. Gerdes on September 16, 2019.

Renville embezzled, willfully misapplied, willfully permitted to be misapplied monies, funds, credits, goods, assets, and other property belonging to the Sisseton-Wahpeton Oyate Sioux Tribe, an Indian Tribal Organization.  Renville was the Supervisor of the Tribe’s Facilities Maintenance for over 5 years.  While serving in that position, Defendant willfully misapplied money and funds belonging to the Tribe; Defendant used and converted those monies and funds for his own personal use.

The maximum penalty upon conviction on each count is up to 5 years in prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victim’s Fund.  Restitution may also be ordered.  The sentencing hearing will be held in the federal courthouse in Aberdeen on December 13, 2019.

The investigation is being conducted by the Federal Bureau of Investigation and the U.S. Attorney’s Office.  Assistant U.S. Attorney Jeremy Jehangiri is prosecuting the case.

For additional information about The Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400.  To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.

HAMMOND- Ryan Smith, 56, was charged in a criminal complaint with the September 22, 2019 robbery, affecting interstate commerce, of Family Dollar in Griffith, Indiana, announced U.S. Attorney Kirsch. 

U.S. Attorney Kirsch said, “Prosecuting violent crime is one of my top priorities.   My office, along with our law enforcement partners, including the FBI, have a strong and continuing commitment to investigate and prosecute acts of violence such as those alleged in today’s charges.”

The criminal complaint alleges that Smith entered the Family Dollar store located on Ridge Road in Griffith, Indiana, on September 22, 2019.  Smith is alleged to have given a note to an employee stating that he was committing a robbery.  Smith is further alleged to have displayed a large knife and held it against an employee while ordering the employee to open a cash register from which he stole approximately $190 in cash. 

The United States Attorney’s Office emphasizes that a criminal complaint is merely an allegation and that all persons are presumed innocent until, and unless proven guilty in court.

If convicted, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.

This case is being investigated by the FBI Gang Response Investigative Team and Griffith Police Department.  This case is being prosecuted by Assistant United States Attorney David J. Nozick.

###

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the unsealing of an Indictment charging JAMES T. BOOTH with securities fraud, wire fraud, and investment adviser fraud charges in connection with his years-long scheme to defraud customers of his financial services firm, Booth Financial Associates (“Booth Financial”).  Throughout the scheme, BOOTH solicited money from clients of Booth Financial and falsely promised to invest their money in securities offered outside of their ordinary advisory and brokerage accounts.  Instead, BOOTH used nearly all of the money to pay personal and business expenses.  In total, BOOTH fraudulently obtained nearly $5 million from his customers.  BOOTH was arrested this morning in Norwalk, Connecticut, and will be presented this afternoon before Magistrate Judge Kevin N. Fox in Manhattan federal court. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, James Booth convinced his clients that he would deliver solid and secure returns on their investments.  Instead, as alleged, Booth delivered only lies and deceit, and bilked some 40 clients of nearly $5 million.  Booth is now in federal custody and will have to answer for his alleged crimes.” 

Special Agent-in-Charge Peter C. Fitzhugh:  “In an elaborate scheme of false promises and deception, it is alleged that Booth attained almost $5 million by luring investors to move their assets with the guarantee of safer investments and higher returns.  Instead, Booth allegedly pocketed the money.  HSI New York’s El Dorado Task Force has investigated financial fraud cases for more than two decades, and with the continued law enforcement partnerships in these cases, we are able to arrest alleged fraudsters who seek to take advantage of the hopes and dreams of others for their own illicit gain.”

As alleged in the Indictment unsealed today in Manhattan federal court:[1]

From 2013 through 2019, BOOTH solicited money from clients of Booth Financial and falsely promised to invest their money in securities offered outside of their ordinary advisory and brokerage accounts.  Specifically, BOOTH directed certain of his clients to write checks or wire money to an entity named “Insurance Trends, Inc.”  Instead of investing his clients’ funds, BOOTH, who controlled the bank account of Insurance Trends, Inc., subsequently misappropriated his clients’ funds to pay his personal and business expenses.

In total, BOOTH raised approximately $4.9 million from approximately 40 investors.  BOOTH lured many of his victims with false promises of safe investments with high returns.  For example:

• BOOTH convinced a recently widowed elderly investor (“Investor-1”) to move money she had received from her late husband’s pension into Insurance Trends, Inc.  BOOTH falsely promised Investor-1 that she would have $1 million by the time she was 100 years old.  As a result of BOOTH’s false assurances, Investor-1 invested more than $600,000 with BOOTH.

• BOOTH similarly convinced another investor (“Investor-2”) to move his money into an investment product that, according to BOOTH, would never lose its principal and would grow with the market.  Based on this false representation, Investor-2 moved money he had set aside for his child’s college expenses, at least approximately $60,000, to BOOTH.  BOOTH subsequently failed to provide Investor-2 with documentation of his investment or to allow Investor-2 to redeem his investment.

• BOOTH convinced another elderly investor (“Investor-3”) to withdraw money from an annuity established for the care of his disabled sibling, approximately $18,000, and invest that money with BOOTH.  Investor-3 gave the money to BOOTH with the understanding that BOOTH would invest that money for the benefit of Investor-3’s sibling’s continued care.

To prevent investors from seeking a return of their money, and to induce additional investments, BOOTH provided investors with fabricated account statements that falsely indicated that BOOTH had purchased certain securities on their behalf and that those investments had generated a profit.  BOOTH further concealed the truth from investors by using money obtained from new investors to make redemption payments to previous investors, in a Ponzi-like fashion.

*          *          *

BOOTH, 74, of Norwalk, Connecticut, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of investment adviser fraud, which carries a maximum sentence of five years in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Anyone with information about the crimes charged in the Indictment should call the United States Attorney’s Office at 866-874-8900.

Mr. Berman praised the investigative work of HSI New York and HSI Boston - New Haven, Connecticut.  Mr. Berman also thanked the U.S. States Postal Inspection Service, the U.S. Internal Revenue Service, the New York City Police Department, and the New York City Sherriff’s Office, which assisted in the investigation.  Mr. Berman also thanked the Securities and Exchange Commission, which has filed a civil enforcement action against the defendant. 

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

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

CHICAGO — A Kane County man has been sentenced to 17 years in federal prison for producing and sharing images of child pornography.

Matthew Brown, 31, of Montgomery, took photographs of a prepubescent minor and shared them with users on the Kik online messaging application.  Brown also possessed more than 240 other photographs and videos of child pornography.

Brown pleaded guilty last year to federal charges of production and transportation of child pornography.  In addition to the 17-year prison term, U.S. District Judge Sara L. Ellis on Thursday ordered Brown to pay $80,292 in restitution to the known victims depicted in the pornographic images and videos.

The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Larry L. Lapp, acting Special Agent-in-Charge of the Chicago office of the FBI.  The Cook County Sheriff’s Office provided valuable assistance.

“Defendant preyed upon the most innocent and vulnerable of victims – children,” Assistant U.S. Attorney John D. Mitchell argued in the government’s sentencing memorandum.  “These images are shocking and display the horrific exploitation of young children.”

According to evidence in the case, Brown accessed the Kik messaging application under the screennames “MaddMatter” and “ratsoff2u.”  He frequented Kik chatrooms that were set up for the purpose of exchanging child pornography.  Unbeknownst to Brown, one of the Kik users with whom he began communicating in 2015 was an undercover law enforcement officer.  Brown sent the undercover officer several images and videos of child pornography, including a sexually explicit photograph of a prepubescent minor that Brown had personally taken.

The images and videos were submitted to the National Center for Missing and Exploited Children, which determined that Brown possessed two series of child pornography.  Authorities have been able to identify some of the children who were exploited in the images and videos shared by Brown and others.  Some of the victims submitted statements to the Court in advance of Brown’s sentencing, detailing the harm caused by the production, distribution and possession of their images by individuals like Brown.

If you believe you are a victim of sexual exploitation, you are encouraged to call NCMEC at 1-800-843-5678, or log on to http://www.missingkids.com.  The service is available 24 hours a day, seven days a week.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Peter C. Fitzhugh, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), announced today the unsealing of an Indictment charging JAMES T. BOOTH with securities fraud, wire fraud, and investment adviser fraud charges in connection with his years-long scheme to defraud customers of his financial services firm, Booth Financial Associates (“Booth Financial”).  Throughout the scheme, BOOTH solicited money from clients of Booth Financial and falsely promised to invest their money in securities offered outside of their ordinary advisory and brokerage accounts.  Instead, BOOTH used nearly all of the money to pay personal and business expenses.  In total, BOOTH fraudulently obtained nearly $5 million from his customers.  BOOTH was arrested this morning in Norwalk, Connecticut, and will be presented this afternoon before Magistrate Judge Kevin N. Fox in Manhattan federal court. 

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, James Booth convinced his clients that he would deliver solid and secure returns on their investments.  Instead, as alleged, Booth delivered only lies and deceit, and bilked some 40 clients of nearly $5 million.  Booth is now in federal custody and will have to answer for his alleged crimes.” 

Special Agent-in-Charge Peter C. Fitzhugh:  “In an elaborate scheme of false promises and deception, it is alleged that Booth attained almost $5 million by luring investors to move their assets with the guarantee of safer investments and higher returns.  Instead, Booth allegedly pocketed the money.  HSI New York’s El Dorado Task Force has investigated financial fraud cases for more than two decades, and with the continued law enforcement partnerships in these cases, we are able to arrest alleged fraudsters who seek to take advantage of the hopes and dreams of others for their own illicit gain.”

As alleged in the Indictment unsealed today in Manhattan federal court:[1]

From 2013 through 2019, BOOTH solicited money from clients of Booth Financial and falsely promised to invest their money in securities offered outside of their ordinary advisory and brokerage accounts.  Specifically, BOOTH directed certain of his clients to write checks or wire money to an entity named “Insurance Trends, Inc.”  Instead of investing his clients’ funds, BOOTH, who controlled the bank account of Insurance Trends, Inc., subsequently misappropriated his clients’ funds to pay his personal and business expenses.

In total, BOOTH raised approximately $4.9 million from approximately 40 investors.  BOOTH lured many of his victims with false promises of safe investments with high returns.  For example:

• BOOTH convinced a recently widowed elderly investor (“Investor-1”) to move money she had received from her late husband’s pension into Insurance Trends, Inc.  BOOTH falsely promised Investor-1 that she would have $1 million by the time she was 100 years old.  As a result of BOOTH’s false assurances, Investor-1 invested more than $600,000 with BOOTH.

• BOOTH similarly convinced another investor (“Investor-2”) to move his money into an investment product that, according to BOOTH, would never lose its principal and would grow with the market.  Based on this false representation, Investor-2 moved money he had set aside for his child’s college expenses, at least approximately $60,000, to BOOTH.  BOOTH subsequently failed to provide Investor-2 with documentation of his investment or to allow Investor-2 to redeem his investment.

• BOOTH convinced another elderly investor (“Investor-3”) to withdraw money from an annuity established for the care of his disabled sibling, approximately $18,000, and invest that money with BOOTH.  Investor-3 gave the money to BOOTH with the understanding that BOOTH would invest that money for the benefit of Investor-3’s sibling’s continued care.

To prevent investors from seeking a return of their money, and to induce additional investments, BOOTH provided investors with fabricated account statements that falsely indicated that BOOTH had purchased certain securities on their behalf and that those investments had generated a profit.  BOOTH further concealed the truth from investors by using money obtained from new investors to make redemption payments to previous investors, in a Ponzi-like fashion.

*          *          *

BOOTH, 74, of Norwalk, Connecticut, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison, one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of investment adviser fraud, which carries a maximum sentence of five years in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Anyone with information about the crimes charged in the Indictment should call the United States Attorney’s Office at 866-874-8900.

Mr. Berman praised the investigative work of HSI New York and HSI Boston - New Haven, Connecticut.  Mr. Berman also thanked the U.S. States Postal Inspection Service, the U.S. Internal Revenue Service, the New York City Police Department, and the New York City Sherriff’s Office, which assisted in the investigation.  Mr. Berman also thanked the Securities and Exchange Commission, which has filed a civil enforcement action against the defendant. 

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

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

Seattle – An Enumclaw, Washington couple were charged in U.S. District Court in Seattle today in connection with their six-year scheme to divert more than $400,000 in local tax dollars to their own use, announced U.S. Attorney Brian T. Moran. ALLAN B. THOMAS and JOANN E. THOMAS are scheduled to appear on the federal charges in U.S. District Court in Seattle at 2:00 p.m. today.

According to the criminal complaint, ALLAN B. THOMAS served as Commissioner for Drainage District 5 in King County for more than 35 years.  As a commissioner, THOMAS was involved in estimating the costs of drainage maintenance for the district so that the county auditor could set and assess the appropriate taxes. The Commissioners then authorized payment to service providers who were supposed to do maintenance work on the drainage system.

As early as 2012, JOANN THOMAS set up a joint bank account with ALLAN THOMAS’ son from a previous marriage.  The account was a business account for a company called A C Services.  Over the next six years, ALLAN THOMAS had $413,323 of local tax dollars paid to A C Services claiming it was for drainage ditch maintenance.  However, THOMAS’ son said other than two small jobs performed in 2012, he did not perform any drainage ditch work.  Financial records indicate that over the six years, shortly after the tax dollars were deposited into A C  Services account, the money was quickly transferred to other accounts belonging to the THOMASES, or was used to pay their expenses for such things as hay, mortgage payments, or property taxes.  More than $70,000 was withdrawn as cash.

In 2018, after the couple became aware of an investigation into their conduct, they began funneling the tax dollars through another company: City Biz.  The couple submitted warrants for City Biz to be paid for drainage maintenance work and within days of the funds arriving in City Biz bank accounts, nearly all of the money was transferred directly to ALLAN THOMAS or the THOMASES’ dairy farm.  In all the criminal complaint alleges the THOMASES defrauded taxpayers of $468,165.

The charges contained in the complaint are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

Mail fraud is punishable by up to 20 years in prison and a $250,000 fine.

The FBI and IRS - Criminal Investigation are leading the investigation.  The Enumclaw City Attorney initiated the review of the district finances.   The Washington State Auditor’s Office also conducted an audit of the district in 2019.    The King County Prosecuting Attorney’s Office, in consultation with the U.S. Attorney’s Office, determined the case was appropriate for federal prosecution.

The case is being prosecuted by Assistant United States Attorneys Justin Arnold and Andrew Friedman.

thomas_complaint.pdf

Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Malik Mustafa Al-Ameen (57, Summerfield) to 20 months in federal prison for theft of government funds. He was also ordered to pay the government $77,178 in restitution. Al-Ameen had pleaded guilty on July 1, 2019.

According to court records, Al-Ameen stole more than $77,000 from the Social Security Administration by submitting false documents regarding his eligibility for Supplemental Security Income (SSI) benefits. Al-Ameen had falsely claimed that he was single and owned no properties when, in fact, he was married and owned a rental property in West Palm Beach. Al-Ameen has more than 60 criminal state convictions in Florida, spanning 40 years, many of which involve fraud or stealing. This is his first federal conviction.

This case was investigated by the Social Security Administration. It was prosecuted by Assistant United States Attorney Michael P. Felicetta.

Seattle – Two former Hood Canal area residents are under arrest on an indictment charging eight federal felonies related to their scheme to steal the wood of big leaf maple trees from Olympic National Forest, announced U.S. Attorney Brian T. Moran.  The indictment alleges that between April and August 2018, JUSTIN ANDREW WILKE and SHAWN EDWARD WILLIAMS felled and sold publicly-owned maple trees.  The indictment alleges that, in August 2018, the defendants started a forest fire when they set fire to a bee’s nest in a tree they were trying to unlawfully harvest from the National Forest land.  The resulting fire – known as “The Maple Fire” – burned more than 3,300 acres between August and November 2018 and cost approximately $4.5 million to contain. 

According to the indictment, as early as April 2018, the defendants traveled into areas of the Olympic National Forest to scout for big leaf maple trees that might contain ‘figured’ wood – wood that is highly prized for musical instruments.  The men looked for maple trees they could steal in areas around Elk Lake and Lena Lake.  The men then cut the maple trees, took blocks of wood from the trees to a property near Lilliwaup, Washington, and sold the blocks to a lumber mill in Tumwater, Washington.  The conspirators presented the mill owner with permits claiming the maple had been harvested on private land, when in fact it had been illegally cut and stolen from the National Forest.

In early August 2018, after selling thousands of dollars’ worth of maple to the mill, WILKE and WILLIAMS identified a big leaf maple they wanted to steal.  However, the large tree contained a bee’s nest, which made it difficult to fell.  After unsuccessfully attempting to get rid of the bees with wasp killer, the men decided to kill the bees by burning the nest.  WILKE poured gasoline on the nest and lit it on fire.  The men tried to put the fire out with water bottles but were unsuccessful.  The fire grew into a 3,300-acre forest fire, damaging public lands in Olympic National Forest and costing $4.5 million to extinguish.

WILKE is charged with eight federal felonies: Conspiracy; two counts of depredation of public property; theft of public property; trafficking in unlawfully harvested timber; attempted trafficking in unlawfully harvested timber; setting timber afire; and using fire in furtherance of a felony.  WILLIAMS is charged with conspiracy, depredation of government property, and attempted trafficking in unlawfully harvested timber.

WILKE will appear in U.S. District Court in Tacoma at 2:30 today.  WILLIAMS is in state custody in California.

Conspiracy, setting timber afire, and trafficking in unlawfully harvested timber are each punishable by up to five years in prison and a $250,000 fine.  Theft of public property and depredation of government property are punishable by up to ten years in prison and a $250,000 fine.  Using fire in furtherance of a felony is punishable by a mandatory ten-year sentence of imprisonment.

The charges contained in the indictment are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

The case was investigated by the United States Forest Service.  The case is being prosecuted by Assistant United States Attorneys Seth Wilkinson and Will Dreher.

wilke-williams_indictment.pdf

HAMMOND - William Moit, age 72, who was formerly a resident of Rensselaer, Indiana -- but resided in Westfield, Indiana when arrested -- was sentenced before United States District Court Judge Philip P. Simon after his plea of guilty to receiving child pornography, announced U.S. Attorney Kirsch. 

Moit was sentenced to serve a term of 108 months in prison followed by 10 years of supervised release and he was ordered to pay $5,000 in restitution. 

According to documents in this case, Moit, who was convicted in Jasper County, Indiana in 2000 for possessing child pornography and contributing to the delinquency of a minor, was charged, in the federal indictment in 2017, with receiving child pornography. Between November 2014 and October 2015, Moit knowingly used a computer to receive 111 images and 157 videos depicting minors, some of which were under 12 years of age, engaging in sexually explicit conduct, including sadistic or masochistic conduct or other depictions of violence. 

This case is the result of the investigative efforts of the Federal Bureau of Investigation and the Indiana State Police. The case was handled by Assistant U.S. Attorney Jill R. Koster.

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Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that Nicholas O. Nelson (age: 36), of Milwaukee, was sentenced to 60 months in prison, followed by 36 months on supervised release, for the illegal possession of a firearm.

The investigation revealed that on February 26, 2017, Nelson possessed a loaded .40 caliber semiautomatic handgun while in a vehicle in the Village of Fox Crossing. Previous felony convictions prohibited Nelson from possessing a firearm. A routine records check on the firearm showed it was reported stolen from a location in the City of Milwaukee. After a 2-day trial in July 2019, a jury in federal court in Green Bay returned a verdict of guilty.

IIn sentencing Nelson, Chief Judge Griesbach noted the serious nature of the offense, and that previous attempts to intervene in Nelson’s criminal activity had failed. Chief Judge Griesbach also cited the need to deter others who might consider similar actions despite legal prohibitions against possessing firearms.

Fox Crossing Police Department investigated the case with assistance from the Wisconsin State Crime Laboratory. It was prosecuted by Assistant United States Attorneys Andrew J. Maier and Benjamin P. Taibleson.

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Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced today that a grand jury in the Southern District of New York has returned an indictment charging JON BARRY THOMPSON, a/k/a “J. Barry Thompson,” the principal of the cryptocurrency escrow company Volantis Escrow Platform LLC and the related company Volantis Market Making LCC (collectively “Volantis”) with commodities fraud and wire fraud offenses.  As alleged, THOMPSON took over $7 million from two victim companies after making false promises in connection with Bitcoin transactions.  THOMPSON was arrested in July based on a criminal complaint filed by this Office charging him with the same crimes.  The case has been assigned to U.S. District Judge Edgardo Ramos.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “As alleged, Jon Barry Thompson repeatedly lied to investors in cryptocurrencies about the safety of their investments made through his companies.  As a result of Thompson’s lies, investors lost millions of dollars.”

In a separate civil action, the U.S. Commodity Futures Trading Commission (“CFTC”) today filed civil charges against THOMPSON. 

As alleged in the Indictment and the criminal complaint previously filed in this case:[1]

THOMPSON claimed in promotional materials that Volantis “minimize[d] settlement default risk” in cryptocurrency transactions.  THOMPSON claimed that because Volantis acted as a custodian of assets for “both sides of the transaction, there is no risk of default.” 

 In June and July 2018, THOMPSON made false statements to one victim company (“Company-1”) to induce Company-1 to send Volantis over $3 million to fund the purchase of Bitcoin for Company-1.  THOMPSON falsely assured Company-1 that THOMPSON had the Bitcoin in hand and Company-1’s money could not be lost.  Even though THOMPSON had told Company-1 that before any transaction, “cash is with me, coin is with me,” THOMPSON sent over $3 million of Company-1’s money to a third-party entity purportedly in exchange for Bitcoin without first receiving any of the Bitcoin in hand.  After taking Company-1’s money, THOMPSON lied for days about the status of the transaction and the location of Company-1’s Bitcoin and money, which was never returned. 

In July 2018, THOMPSON made false statements to another victim company (“Company-2”) to induce Company-2 to send Volantis over $4 million to fund the purchase of Bitcoin for Company-2.  After receiving Company-2’s money, THOMPSON sent a substantial portion of the money to a third party without first receiving any Bitcoin in return.  THOMPSON never provided Company-2 with any Bitcoin, nor did he return Company-2’s money.  After receiving Company-2’s money, THOMPSON also lied to Company-2 about the location of the Bitcoin and the status of the transaction.

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THOMPSON, 48, of Easton, Pennsylvania, is charged with two counts of commodities fraud, each of which carries a maximum sentence of 10 years in prison, and two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Mr. Berman praised the investigative work of the Federal Bureau of Investigation and also thanked the CFTC for its assistance. 

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Jordan Estes and Drew Skinner are in charge of the prosecution.

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

Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, announced that Nicholas O. Nelson (age: 36), of Milwaukee, was sentenced to 60 months in prison, followed by 36 months on supervised release, for the illegal possession of a firearm.

The investigation revealed that on February 26, 2017, Nelson possessed a loaded .40 caliber semiautomatic handgun while in a vehicle in the Village of Fox Crossing. Previous felony convictions prohibited Nelson from possessing a firearm. A routine records check on the firearm showed it was reported stolen from a location in the City of Milwaukee. After a 2-day trial in July 2019, a jury in federal court in Green Bay returned a verdict of guilty.

IIn sentencing Nelson, Chief Judge Griesbach noted the serious nature of the offense, and that previous attempts to intervene in Nelson’s criminal activity had failed. Chief Judge Griesbach also cited the need to deter others who might consider similar actions despite legal prohibitions against possessing firearms.

Fox Crossing Police Department investigated the case with assistance from the Wisconsin State Crime Laboratory. It was prosecuted by Assistant United States Attorneys Andrew J. Maier and Benjamin P. Taibleson.

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WICHITA, KAN. - A Wichita man appeared in federal court here today on a charge of escaping custody, U.S. Attorney Stephen McAllister said.

Wade Dunn, 30, Wichita, Kan., is charged with one count of escape from custody. A criminal complaint filed in federal court alleges Dunn escaped from the Mirror, Inc., Residential Re-entry Center in Wichita.

In July 2017, Dunn was sentenced to 33 months in federal prison after being convicted on a charge of unlawful possession of a firearm by a convicted felon. In July 2019, the U.S. Bureau of Prisons transferred him to the residential re-entry center in Wichita to serve the remainder of his sentence.

On Sept. 23, 2019, Dunn left the halfway house on a pass at 9:30 a.m. and failed to return at 5:30 p.m. that day.

On Sept. 28, 2019, Wichita police announced they had arrested Dunn in connection with a random stabbing on Sept. 23 in the 7400 block of East 17^th Street North.

Dunn will be held pending trial.

If convicted, he could face up to five years in federal prison and a fine up to $250,000. The Wichita Police Department and the U.S. Marshals Service investigated. Assistant U.S. Attorney Matt Treaster and Assistant U.S. Attorney David Lind are prosecuting.

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.