Audrey Strauss, the Acting United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector-in-Charge of the New York Field Office of the United States Postal Inspection Service (“USPIS”), announced the unsealing of an indictment charging BRIAN KOLFAGE, STEPHEN BANNON, ANDREW BADOLATO, and TIMOTHY SHEA for their roles in defrauding hundreds of thousands of donors in connection with an online crowdfunding campaign known as “We Build the Wall” that raised more than $25 million.  The defendants were arrested this morning.  KOLFAGE will be presented today before U.S. Magistrate Judge Hope T. Cannon in the Northern District of Florida.  BANNON will be presented today in the Southern District of New York.  BADOLATO will be presented today before U.S. Magistrate Judge Thomas Wilson in the Middle District of Florida.  SHEA will be presented today before U.S. Magistrate Judge Kristen L. Mix in the District of Colorado.  The case is assigned to U.S. District Judge Analisa Torres in the Southern District of New York.

Acting U.S. Attorney Audrey Strauss said:  “As alleged, the defendants defrauded hundreds of thousands of donors, capitalizing on their interest in funding a border wall to raise millions of dollars, under the false pretense that all of that money would be spent on construction.  While repeatedly assuring donors that Brian Kolfage, the founder and public face of We Build the Wall, would not be paid a cent, the defendants secretly schemed to pass hundreds of thousands of dollars to Kolfage, which he used to fund his lavish lifestyle.  We thank the USPIS for their partnership in investigating this case, and we remain dedicated to rooting out and prosecuting fraud wherever we find it.”

Inspector-in-Charge Philip R. Bartlett said:  “The defendants allegedly engaged in fraud when they misrepresented the true use of donated funds.  As alleged, not only did they lie to donors, they schemed to hide their misappropriation of funds by creating sham invoices and accounts to launder donations and cover up their crimes, showing no regard for the law or the truth.   This case should serve as a warning to other fraudsters that no one is above the law, not even a disabled war veteran or a millionaire political strategist.”

According to the Indictment[1] unsealed today in Manhattan federal court:

Starting in approximately December 2018, BRIAN KOLFAGE, STEPHEN BANNON, ANDREW BADOLATO, and TIMOTHY SHEA, and others, orchestrated a scheme to defraud hundreds of thousands of donors, including donors in the Southern District of New York, in connection with an online crowdfunding campaign ultimately known as “We Build The Wall” that raised more than $25 million to build a wall along the southern border of the United States.  In particular, to induce donors to donate to the campaign, KOLFAGE repeatedly and falsely assured the public that he would “not take a penny in salary or compensation” and that “100% of the funds raised . . . will be used in the execution of our mission and purpose” because, as BANNON publicly stated, “we’re a volunteer organization.”

Those representations were false.  In truth, KOLFAGE, BANNON, BADOLATO, and SHEA received hundreds of thousands of dollars in donor funds from We Build the Wall, which they each used in a manner inconsistent with the organization’s public representations.  In particular, KOLFAGE covertly took for his personal use more than $350,000 in funds that donors had given to We Build the Wall, while BANNON, through a non-profit organization under his control (“Non-Profit-1”), received over $1 million from We Build the Wall, at least some of which BANNON used to cover hundreds of thousands of dollars in BANNON’s personal expenses.  To conceal the payments to KOLFAGE from We Build the Wall, KOLFAGE, BANNON, BADOLATO, and SHEA devised a scheme to route those payments from We Build the Wall to KOLFAGE indirectly through Non-Profit-1 and a shell company under SHEA’s control, among other avenues.  They did so by using fake invoices and sham “vendor” arrangements, among other ways, to ensure, as KOLFAGE noted in a text message to BADOLATO, that his pay arrangement remained “confidential” and kept on a “need to know” basis.  

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KOLFAGE, 38, of Miramar Beach, Florida, BANNON, 66, of Washington, D.C., BADOLATO, 56, of Sarasota, Florida, and SHEA, 49, of Castle Rock, Colorado, are each charged with one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering, each of which carries a maximum penalty of 20 years in prison. 

The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.

Ms. Strauss praised the outstanding investigative work of the USPIS and the Special Agents of the United States Attorney’s Office for the Southern District of New York.  She also thanked the U.S Attorney’s Office for the Northern District of Florida for their assistance.

The case is being handled by the Office’s Public Corruption Unit.  Assistant United States Attorneys Nicolas Roos, Alison G. Moe, and Robert B. Sobelman are in charge of the prosecution.

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

CORPUS CHRISTI, Texas – Four Corpus Christi men are set to appear in federal court following the return of an indictment in relation to the operation of an illegal gambling business, announced U.S. Attorney Ryan K. Patrick.

The indictment was unsealed today and charges Nathan Nichols, 44, Richard Nunez, 47, Richard Conlon, 56, and Douglas Wells, 51, with one count of conspiracy to commit money laundering and four counts of operating an illegal gambling business. They are expected to appear for their arraignment Aug. 27 at 10 a.m. before U.S. Magistrate Judge Jason B. Libby.

From March 13, 2018, to Aug. 1, 2019, the men allegedly owned, operated or managed an illegal gambling business in Corpus Christi. The charges allege they also conspired to launder funds generated from that enterprise.  

According to the indictment, Nichols, Nunez, Conlon and Wells concealed and disguised the nature, location, source, ownership and control of the illegal gambling proceeds.

During the course of the investigation, authorities allegedly seized several million dollars, gold bars and multiple vehicles, including a Lamborghini.  

If convicted, all face up to 20 years in federal prison and a possible $500,000.00 maximum fine.

The FBI conducted the investigation. Assistant U.S. Attorneys Jeremy C. Fugate, Neel Kapur and Joel Dunn are prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

HUNTINGTON, W.Va. – A Beckley man has pled guilty to a federal gun crime, announced United States Attorney Mike Stuart. Justin J. Monroe, 34, pled guilty to being a felon in possession of a firearm.

Monroe admitted that on September 20, 2019, a vehicle in which he was a passenger was stopped by the West Virginia State Police for speeding along Interstate 64 near Hurricane. Troopers later searched the vehicle, which was being driven by an inebriated driver, and recovered a Glock model 23 .40 caliber pistol. Monroe claimed ownership of the firearm on the scene, and later admitted to law enforcement that he knew he was a convicted felon which barred him from possessing the firearm, but that he chose to keep it for protection. Monroe has two prior felony convictions in Raleigh County Circuit Court.

Monroe faces a maximum of 10 years in prison when sentenced on November 16, 2020.

The West Virginia State Police conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Negar M. Kordestani is handling the prosecution.

The case is being prosecuted as part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office is prosecuting this case with support from the Project Guardian partners noted above. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00047.

Follow us on Twitter:SDWVNewsand USAttyStuart

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Columbia, South Carolina --- United States Attorney Peter M. McCoy, Jr., announced today that Brian Leroy Watson, Jr., a/k/a “B,” a/k/a “Lil B,” 48, of Blythewood, was arrested on a federal indictment charging nine counts of human trafficking and attempted human trafficking and three counts of drug-related violations. The arrest and charges are a result of a collaborative effort among the Federal Bureau of Investigation (FBI), the Richland County Sheriff’s Department, and the Kershaw County Sheriff’s Office.

“While the record in this case speaks for itself, human trafficking is an egregious crime that often targets the most vulnerable among us for the profit of another,” said U.S. Attorney McCoy. “It is a dark reality even here in South Carolina, and this office will not tolerate it. That is why we work not only with our law enforcement partners to uncover and prosecute those who exploit others, but with support groups within the community that offer support services to human trafficking victims and educate the public about this unconscionable practice.”

"Operations like these result in the release of human trafficking victims from their horrifying bondage," said FBI Special Agent in Charge Jody Norris. "The FBI thanks the Richland County Sheriff’s Department and the Kershaw County Sheriff’s Office for their assistance in this investigation.  We ask that anyone with information about human trafficking contact the FBI or their local law enforcement office."

“Human Sex Trafficking is a reality in our community,” said Richland County Sheriff Leon Lott. “Working in partnership with other law enforcement agencies and most important, the community, is the key to stopping this horrible crime.”

“We are very thankful for the teamwork of our federal partners in keeping our community safe,” said Kershaw County Sheriff Lee Boan. “As a reminder to parents, kidnapping is not always involved in human trafficking cases. Victims can be coerced into human trafficking by their dependency of basic needs or addiction to drugs. Holding your child close to you while in a crowded place is not always as important as knowing what your child does when they are away from you.”

The 12-count indictment alleges human trafficking violations against Watson as to multiple victims between 2016 and 2019 in South Carolina.  The indictment also charges Watson with distributing heroin and fentanyl, and with unlawfully operating a Blythewood dwelling for the purpose of storing and distributing heroin, fentanyl, cocaine, crack cocaine, and methamphetamine. Watson was arrested on August 20, 2020, and had his initial appearance before United States Magistrate Judge Shiva V. Hodges at the Matthew J. Perry Courthouse in Columbia. 

This case is being investigated by the FBI, the Richland County Sheriff’s Department and the Kershaw County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Elliott B. Daniels of the Columbia Office.

U.S. Attorney McCoy stated that all charges in this case are merely allegations at this stage and that the defendant is presumed innocent unless and until proven guilty.

If you or someone you know may have information relevant to this investigation, please call FBI-Columbia at 803-551-4200.

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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

PITTSBURGH – Three residents of New York, pleaded guilty in recent weeks in federal court to a charge of conspiracy to commit mail fraud, wire fraud, and bank fraud, United States Attorney Scott W. Brady announced today. The charges are in connection with a complex scheme related to the importation into the United States of prescription drugs from China, Russia and India, and the fraudulent credit card payment processing associated with those sales to consumers in the United States.

Devan Abrams, age 39, of New York City, New York, Azad Khizgilov, age 46, of Staten Island, New York, and Roman Shaulov, age 53, of Brooklyn, New York, pleaded guilty to one count before Senior United States District Judge David S. Cercone. In related cases, Garri Shihman, age 49, of Parkland, Florida, and Gennady Nudelman, age 45, of Delray Beach, Florida, pled guilty and were sentenced in 2019.

In connection with the various court proceedings, the court was advised that this complex matter has two primary components. The first is related to the illegal on-line sale of pharmaceutical drugs to U.S. consumers from a host of websites located primarily in India, China and Russia. The second component relates to the fraudulent processing of credit card payments for these pharmaceutical drugs and other products. The five defendants referred to in this press release are only directly associated with the second component component. The fraudulent activity, which occurred between 2013 and 2017, involved the use of a series of misrepresentations that cause the credit card companies to process credit card transactions for illegally imported pharmaceutical drugs. The credit card companies have policies that preclude the use of their products and services to pay for illegally imported pharmaceutical drugs, and they have various internal controls designed to prevent the use of their products and services for such activities. In the scheme orchestrated by the defendants, they defrauded the credit card companies into processing tens of millions of dollars in payments for illegally imported pharmaceutical drugs through a series front companies, fake websites, fraudulent merchant applications, and other fraudulent activity.

The fraud involved the establishment of hundreds of front companies that were established by these defendants any others, and fake web sites associated with those companies that falsely indicated that they were selling legitimate products. Together with the incorporation paperwork for the front companies and the fake website, the defendants submitted a merchant application to the credit card companies under the name of recruited accomplices. Once approved by the credit card companies, the defendants then arranged for the merchant accounts to process payments for the illegally imported pharmaceutical drugs.

The defendants also arranged for a number of employees to serve on a telephone bank that received telephone calls from customers questioning charges on their credit card statements. That was necessary because the credit card statements reflected purchases from the front companies and not the internet companies selling the illegally imported pharmaceutical drugs. In this way, the telephone bank prevented the customers from reporting the fraud to the credit card companies.

Federal agents began to undercover the fraud through controlled purchases from websites and search warrants at various locations. Abrams, Khizgilov, and Shihman operated out of offices located at 1812 Bath Avenue, Brooklyn, NY, and later, Abrams, Khizgilov and Shaulov operated out of offices located at 1706 Crospey Avenue, Brooklyn, NY. Search warrants executed at both of those locations led to evidence supporting the charges.

Judge Cercone scheduled sentencing for Devan Abrams on December 15, 2020, for Azad Khizgilov on December 8, 2020, and for Roman Shaulov on December 17, 2020. The law provides for a total maximum sentence of not more than 30 years in prison, a fine of $1,000,000, or both for each defendant. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Garri Shihman was sentenced in federal court to 45 months’ imprisonment on July 26, 2019. Gennady Nudelman was sentenced in federal court to 32 months’ imprisonment on May 8, 2019. Shihman and Nudelman are currently serving their sentences at a Bureau of Prisons facility.

Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.

The Food and Drug Administration – Office of Criminal Investigations, Homeland Security Investigations, Pennsylvania State Police and United States Postal Inspection Service conducted the investigation that led to the prosecutions of Abrams, Khizgilov, Shaulov, Shihman and Nudelman.

DAVENPORT, Iowa – On August 19, 2020, United States District Court Judge  Stephanie M. Rose sentenced Bryan Christopher Hanson, age 24, of Rock Island, Ill., to ten months in prison for assault on a postal worker, announced United States Attorney Marc Krickbaum. Hanson was ordered to serve three years of supervised release to follow his prison term and pay $100 to the Crime Victims’ Fund.

On November 18, 2019, Hanson pleaded guilty to the offense. The investigation began after a report was made by a mail carrier that a male was harassing her. Hanson sought the postal carrier out and physically grabbed her while she was on duty. She was able to run away, but the defendant continued to pursue and got into his car and followed her. The mail carrier received help from a bystander before police arrived.

This matter was investigated by the United States Postal Inspection Service and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

BOSTON – A former client relationship manager at Bank of America was arrested and charged today in connection with embezzling $1.5 million from a client company and using a portion of those funds to purchase luxury items.

Waqas Ali, 31, of Abington, was charged in a criminal complaint with wire fraud and money laundering. Ali will make an initial appearance today via videoconference in federal court in Boston.

According to court documents, Ali was the client relationship manager for the victim company, which was a Bank of America client. Ali allegedly opened a checking account in the name of the victim company without its knowledge or authorization, and between September 2016 and July 2017, fraudulently transferred over $1.5 million from the victim company’s accounts to a fraudulent account. 

It is alleged that Ali used over $600,000 of the funds he fraudulently obtained to fund his lifestyle and pay for luxury items, including a Porsche SUV and retail items at Neiman Marcus, Bloomingdales, Christian Louboutin and Tag Heuer. 

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 $250,000. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release, a $500,000 fine, restitution and forfeiture. 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 Mackenzie A. Queenin of Lelling’s Securities, Financial & Cyber Fraud Unit is 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.

PHILADELPHIA – United States Attorney William M. McSwain announced that Maurice Neal, 31, of Philadelphia, PA was sentenced to 25 years in prison and lifetime supervised release by United States District Court Judge Timothy J. Savage for producing child pornography.

In November 2019, the defendant pleaded guilty to one count of manufacturing child pornography, stemming from his sexual abuse of a 12-year-old child (Minor #1) as she slept, and recording the abuse on his cell phone. He covered the victim’s face with a cloth to avoid her eyes from looking at him, and stopped only because he thought another child sleeping nearby was stirring. The sexual assault of this child was the second in a series of assaults of children that Neal committed. At the time that he documented his sexual abuse of Minor #1, Neal already had an active arrest warrant issued by the Philadelphia Police Department for his sexual molestation of a different child (Minor #2), who was only six-years-old. And after sexually abusing Minor #1 and Minor #2, Neal then began molesting two additional young girls: another six-year-old (Minor #3) and a nine-year-old (Minor #4).

Neal was charged and pleaded guilty to these sexual offenses (assaulting Minors #1-4) in the Commonwealth of Pennsylvania, and was sentenced to 25 to 50 years in state prison for these crimes. While he was incarcerated, the video of his abuse of Minor #1 was discovered, and the defendant was then charged with the federal offense of manufacturing child pornography.

“Maurice Neal left a trail of young, vulnerable victims in his wake,” said U.S. Attorney McSwain. “In a few short months, he took advantage of every opportunity to prey upon children in homes in which he was staying, horrifically abusing four little girls within his grasp and causing incalculable damage. Working with our law enforcement partners, we will hold defendants like Maurice Neal accountable and pursue justice for the victims.”

“Put simply, Maurice Neal is a predator,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “He sexually violated multiple children, documenting some of that abuse. It’s vital that he stay locked away where he can’t hurt any more kids. The FBI and our partners at the Philadelphia Police Department won’t ever stop fighting to protect children from being so horrifically exploited.”  

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

The case was investigated by the Federal Bureau of Investigation in partnership with the Philadelphia Police Department and Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Priya DeSouza and Special Assistant United States Attorney Megan Curran.

NEW ORLEANS –U.S. Attorney Peter G. Strasser announced that PENNY JOHNSON,age 52, a former resident of Avondale, Louisiana, who now lives in Mississippi, pleaded guilty on August 19, 2020 to one count of conspiracy to commit mail fraud before United States District Court Judge for the Eastern District of Louisiana Sarah S. Vance.  

According to the charging document, JOHNSON participated in a “work at home” re-shipping scam wherein internet fraudsters would direct items purchased from sellers such as eBay to JOHNSON’s residence. As part of the scheme, JOHNSON would then inspect the contents and re-ship the mail and other packages to the fraudsters. Prior to the Indictment, JOHNSON had been advised by United States Postal inspectors that she was facilitating a fraud upon eBay and other online customers, but she persisted. JOHNSON went on to make false statements to the inspectors when she was later questioned after the first warning.  The stolen/diverted mail included items such as a paintball gun, a drone, two Dyson vacuum cleaners, women’s shoes, two Apple Air Mac books, and a smart phone.

JOHNSON faces a sentence of up to five (5) years in prison on the conspiracy count and up to $250,000 in fines, and up to three (3) years of supervised release.  Sentencing is scheduled for December 9, 2020.

U.S. Attorney Strasser praised the work of the United States Postal Inspection Service for their investigation of the matter.  Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.

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RALEIGH, N.C. – A Roseboro man was sentenced today to 372 months in prison for carjacking, possession of a firearm in furtherance of the carjacking, possession of a stolen firearm, and possession of a firearm and ammunition by a felon.  The defendant, Demery Bernard McLymore, 26, was convicted by jury trial in February of each of the four counts alleged in the indictment.

The evidence at trial showed that beginning in the afternoon of Saturday, September 3, 2016, and running into the early morning hours of the next day, McLymore committed a series of armed robberies, involving a dozen total victims. 

Around 8:00 p.m. on that Saturday night, McLymore and another man, Ambrose Lassiter, approached a group of six boys who were in a car that had just parked at the Brantwood Court apartments in Roseboro, North Carolina.  The boys, the oldest of which was 18, had gotten together to go to a party that evening.  McLymore pulled out a silver handgun and ordered them out of the car.  Lassiter tried to intervene but backed away when McLymore threatened to kill everyone.  McLymore then proceeded to rob the boys, holding the firearm to the neck of one boy, and against the torso of two more.  He collected a few dollars, a cell phone, and also took one boy’s shoes.  McLymore then ordered the driver to drive him and Lassiter to Clinton.  The boy did so, as McLymore sat in the passenger seat with the gun on his lap.  

Not long after being dropped off in Clinton, McLymore approached a woman who was walking down the street in an area of Clinton known as “the Block.”  He showed her that he was carrying the silver handgun, and after walking with her for a few minutes, he pulled out the gun and walked her at gunpoint into an apartment where she had been headed.  McLymore proceeded to rob the resident of a wristwatch at gunpoint, but the woman was able to run out of the front door.  

McLymore next appeared about a mile away at the Spirit convenience store in Clinton.  In the parking lot of the store, he encountered two young men in a truck, who were stopping by the store on their way out of town for a party.  McLymore asked for a ride to his girlfriend’s residence on the Block, and the men agreed.  Once at the girlfriend’s residence, McLymore claimed to have lost a pistol.  As the men looked for the pistol, McLymore grabbed a shotgun belonging to the driver that had been on a rack in the truck.  He pointed the gun at both men and then forced the passenger, at gunpoint, to walk down the road with him. 

A couple blocks down the road, McLymore spotted two young boys, 13 and 16 years old, and approached them with the shotgun.  He pointed the shotgun at the boys’ chin and chests, then forced the passenger of the truck to check the boys’ pockets for money.  McLymore then ordered the boys to strip to their underwear, before running back in the direction of his girlfriend’s house.

Clinton Police Department officers at this time were investigating the earlier residential robbery, and one officer spotted McLymore walking with a shotgun behind a house.  With a tip from a neighbor, law enforcement tracked McLymore to the residence he had identified as his girlfriend’s house.  They found him in a bedroom with a wristwatch, wadded up money, a shotgun shell, and over three dozen .380 caliber bullets in his pockets.  Behind the house, officers found the stolen shotgun, loaded with three shotgun shells that matched the one found in McLymore’s pocket. 

Mr. Higdon commented:  “Demery McLymore was a one man crime wave.  And he is just the kind of offender that we are Taking Back North Carolina from as part of our initiative to rid our communities of those individuals who make them unsafe.  We are gratified by the sentence the Court imposed today because every day McLymore spends in prison is a safer day in the streets of the Eastern District.”

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  Since 2017, the United States Department of Justice has reinvigorated the PSN program and has targeted violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

That effort has been implemented through the Take Back North Carolina Initiative of the United States Attorney’s Office for the Eastern District of North Carolina.  This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices in those communities on a sustained basis to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.

Robert J. Higdon, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Clinton Police Department, Sampson County Sheriff’s Office, and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation.  Assistant United States Attorneys Jake D. Pugh and Aakash Singh prosecuted the case.

Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:18-cr-0148-D.

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The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

John H. Durham, United States Attorney for the District of Connecticut, announced that JAQUAN LEGGETT, also known as “Tipsy,” 32, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 92 months of imprisonment, followed by five years of supervised release, for trafficking fentanyl and other narcotics.

According to court documents and statements made in court, in January 2019, law enforcement received information that Leggett and Dante Barnes, also known as “Tre,” were trafficking narcotics in Hartford.  The investigation revealed that Leggett and Barnes were using Leggett’s residence on Lenox Street in Hartford to package and store fentanyl and other drugs.  Between January and March 2019, investigators conducted multiple controlled purchases of fentanyl and cocaine from Barnes in Hartford and Farmington.

Leggett and Barnes were arrested on March 5, 2019.  On that date, a search of Leggett’s residence revealed 169 bags of fentanyl, approximately two grams of unpackaged fentanyl, approximately four grams of crack cocaine, approximately two grams of cocaine, and items used to process and package narcotics for street sale.  A search of Barnes’ Farmington residence revealed 440 bags of fentanyl, approximately 23 grams of unpackaged fentanyl, approximately 32 grams of crack cocaine, items used to package narcotics for street sale, and $24,160 in cash.

Leggett’s criminal history includes state convictions for firearm and drug offenses, and a federal conviction for possession of ammunition by a convicted felon.  In August 2012, he was sentenced to 57 months of imprisonment for the federal offense.

Leggett has been detained since his arrest.  On October 28, 2019, he pleaded guilty to one count of possession with intent to distribute fentanyl and cocaine base (“crack”). 

On October 28, 2019, Barnes pleaded guilty to one count of possession with intent to distribute fentanyl.  On February 10, 2020, he was sentenced to 60 months of imprisonment.  He also forfeited the cash that was seized at the time of his arrest, and a 2007 Audi A6 3.2Q.

This matter was investigated by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department.  The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.

The case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.

United States Attorney Peter E. Deegan, Jr. and Federal Bureau of Investigation (FBI) Special Agent in Charge Kristi Johnson today highlighted the danger that counterfeit Adderall pills pose to those who may attempt to purchase prescription stimulants on the street.  Drug trafficking organizations are using counterfeit Adderall pills containing crystal methamphetamine to target those who may be addicted to prescription drugs but who otherwise would not use methamphetamine.  These pills increase the health risk and addiction rates of prescription stimulant abusers in the United States.

Following an investigation by the FBI, in February 2020 three individuals pleaded guilty to drug distribution conspiracy charges in relation to their involvement with a drug vendor who sold counterfeit Adderall pills.  Although the pills were marketed as “100% authentic” Adderall pills, the pills tested positive for methamphetamine, according to DEA laboratory testing.

United States Attorney Deegan stated, “Drug traffickers are trying to deceive people across the country into purchasing, using, and becoming addicted to methamphetamine.  They will do whatever they have to do in order to make money at the expense of the health and safety of those buying these fake pills.  The public must be aware that while these pills may look like prescription drugs, they actually contain a deadly controlled substance.”

Special Agent in Charge Kristi Johnson said, “The safety of our community is the priority of the FBI.  We are committed to stopping deadly drugs before they make it to the streets.  We also must remind the public that medications not obtained by legitimate means can result in severe health risks and even death.  I would ask that you to share this potentially life-saving message with your loved ones.”

These counterfeit pills are also dangerous because users who believe that they are purchasing Adderall will assume the pills are safe because they appear to be quality-controlled products of a heavily regulated prescription drug industry.  Instead, users may be putting powerful crystal methamphetamine into their bodies, which leads to increased addiction rates and health risks.  In July and August 2019, one vendor of counterfeit Adderall pills containing methamphetamine attempted to attract resellers of his pills by posting on a darknet website “your customers body can’t tell the difference if it is amphetamine or meth.”

Unless prescription drugs are obtained from an authorized medical provider or pharmacy, the public should not consume or even handle these pills.  All Iowans are urged to only use prescription drugs prescribed to them by legitimate health care providers.

Follow us on Twitter @USAO_NDIA.

SPRINGFIELD, Mo. – A Springfield, Missouri, man has been sentenced in federal court for illegally possessing a firearm.

Keyshaun Isaiah Jackson, 23, was sentenced by U.S. District Judge M. Douglas Harpool on Wednesday, Aug. 19, to 15 years in federal prison without parole. Jackson was sentenced as an armed career criminal due to his prior felony convictions.

On July 24, 2018, Jackson pleaded guilty to being a felon in possession of a firearm.

According to court documents, Jackson was involved in a shooting at Martha’s Vineyard night club, 219 West Olive, Springfield, Mo., on April 11, 2018. Jackson and another individual exchanged gunfire in the parking lot as pedestrians in the parking lot began running away or taking cover. Both men ran from the scene when police officers arrived.

Officers found eight .40-caliber spent shell casings in the parking lot and noted a bullet hole in the front driver’s side fender of Jackson’s black 2010 Nissan Maxima, where he had been sitting when the shooting began. Officers also found a Glock .40-caliber semi-automatic pistol inside the car.

The next day, April 12, 2018, police officers responded to a disturbance at a Springfield residence. Jackson had barricaded himself inside for some time, but eventually left the residence and was arrested.

Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Jackson has prior felony convictions for forgery, receiving stolen property, burglary, resisting/interfering with arrest, and was on probation at the time of this federal offense. 

This case was prosecuted by Supervisory Assistant U.S. Attorney Randall D. Eggert and Assistant U.S. Attorney William L. Meiners. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Alvin Lavon Rex, age 61, of Schaller, Iowa, Jerry Johnson, age 54, of Webster City, Iowa, and Brian Whorton, age 54, of Marion, Iowa, were all charged with COVID-19 related fraud offenses.  The charges are contained in separate complaints and an indictment recently filed in the United States District Court for the Northern District of Iowa in Cedar Rapids and Sioux City. ­

The complaints and indictment separately allege that each of the three men fraudulently obtained unemployment benefits related to COVID-19 relief funds to which they were not entitled.  Rex and Johnson are charged with mail fraud and Whorton is charged with wire fraud. 

If convicted each man faces up to 20 years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.­  All three men have appeared in federal court and were released without bond.

As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.

These cases are being prosecuted by multiple Assistant United States Attorneys and investigated by the Federal Bureau of Investigation, the United States Department of Labor - Office of Inspector General, the United States Postal Inspection Service, and the Storm Lake Police Department.  Assisting in the investigation are the Sac County Sheriff’s Office, the State of Arizona’s Unemployment Insurance Benefit Fraud Investigation Unit - Office of Inspector General, the State of Massachusetts’s Program Integrity Unit - Department of Unemployment Assistance, and the State of Ohio’s Benefit Payment Fraud Control Unit - Department of Job and Family Services.

Rooting out COVID-19 fraud is a priority of the Department of Justice.  On March 27, 2020, the President signed the CARES Act, which provides emergency assistance to individuals, families, and businesses affected by the COVID-19 pandemic, including increased unemployment benefits. 

These prosecutions are an example of the Department of Justice’s strong commitment to combating fraud and criminal activity related to the COVID-19 pandemic.  Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.   

Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. 

The case file numbers are 20-CR-4062, 20-CR-3027, and 20-CR-0064.

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ALEXANDRIA, Va. – A Sterling man was arrested today on charges of conspiracy to commit visa fraud and for inducing aliens to come to the United States using fraudulently obtained H-1B visas.

According to court documents, Ashish Sawhney, 48, allegedly used four corporations to orchestrate the improper submission of fraudulent applications for H-1B specialty-occupation work visas. The six-count indictment identifies Sawhney as the director or registered agent for Value Consulting, LLC, Value Software Products, Inc. (formerly known as Value Consulting, Inc.), Business Pointers, Inc., and E-Train ERP, Inc., each of which had offices located in the Eastern District of Virginia and purported to provide information technology staffing and software development services for commercial clients in the United States. Sawhney submitted or caused to be submitted H-1B visa application materials stating that the foreign workers named in the applications would fulfill a specific job, where in fact, no such job existed at the time of filing. The indictment alleges that through Sawhney’s ownership and direction of the scheme, his companies generated gross profits from 2011 to 2016 of approximately $21 million. The indictment further alleges that Sawhney, who is an Indian national, attempted to naturalize as a United States citizen by submitting an application containing false statements.

Sawhney is charged with two counts of conspiracy, three counts of inducing an alien to come to and reside in the United States for commercial advantage or private financial gain, and one count of attempted naturalization fraud. If convicted, Sawhney faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

The case is being investigated by the Document and Benefit Fraud Task Force, which is comprised of multiple agencies including the Department of Homeland Security’s Homeland Security Investigations, the U.S. Department of State’s Diplomatic Security Service (DSS), U.S. Department of Labor’s Office of Inspector General, and U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security that coordinate investigations into fraudulent immigration documents. 

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; Edwin Guard, Special Agent-in-Charge of the Diplomatic Security Service’s Washington Field Office; Derek Pickle, Special Agent-in-Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; and Ron M. Rosenberg, District Director, District S2, U.S. Citizenship and Immigration Services Office, made the announcement. Assistant U.S. Attorneys Raizza K. Ty and Ronald L. Walutes, Jr. are prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-192.

ASHLAND, Ky. - A Greenup, Kentucky woman, Manjit K. Singh, 49, and her daughter, Harpneet K. Bath, 27, a resident of British Columbia, Canada, were sentenced in federal court on Wednesday, to 18 months and 9 months in prison, respectively, by U.S. District Court Judge David L. Bunning, for conspiring to burn down Singh’s convenience store in Greenup, in order to fraudulently obtain insurance proceeds.           

In her plea agreement, Singh admitted to offering a confidential informant $5,000, in January 2020, to burn down the convenience store she owned and operated, Wolf’s Food Mart and Pool Hall, in Greenup.  The store was insured by Scottsdale Insurance Company, and Singh intended to burn it down for the purpose of collecting insurance proceeds.  Singh acknowledged instructing the informant on how she wanted the arson to be performed, and promised him that he would receive $1,000 up front, and the remaining $4,000 after she received the insurance proceeds from the fraudulent claim of fire loss.  Bath admitted to traveling from Canada to Greenup, in order to help her mother commit the fraud.  In their plea agreements, both admitted that they met with the informant on the eve of the planned arson.  At that meeting, Bath gave him $900 in cash and obtained his bank account information, so she could wire him the remaining funds, once the insurer paid the fraudulent claim.  Law enforcement officers disrupted the plot before the arson was committed.

Under federal law, Singh and Bath must serve 85 percent of their prison sentences and will be under the supervision of the U.S. Probation Office for two years.  In addition to their prison sentences, Singh was ordered to pay a fine of $5,000 and Bath a fine of $2,500.

Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; James Robert Brown, Special Agent in Charge, FBI Louisville Field Division; and ?????, Greenup County Sheriff, jointly made the announcement. 

The investigation was directed by the Federal Bureau of Investigation and the Greenup County Sheriff’s Office.  The United States was represented by Assistant U.S. Attorney Paul McCaffrey.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

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SAN JUAN, Puerto Rico – Yesterday, a federal grand jury in the District of Puerto Rico returned a second superseding indictment against five defendants charged with kidnapping resulting in murder and firearm offenses, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI) is in charge of the investigation and is being assisted by the Puerto Rico Department of Public Safety, the Puerto Rico Police Department (PRPD) and the Bureau of Forensic Sciences.

The indictment alleges that on or about June 8, 2018, in the District of Puerto Rico, defendants Brian Díaz-Serrano, a/k/a “Retro”; Roberto Meléndez-Hiraldo, a/k/a “Cocodrilo”; Jairo Huertas-Mercado; Joshua Luyando-González; and Jadnel Flores-Nater, a/k/a “Potro”, aiding and abetting each other, kidnapped W.G.E. and shot him multiple times with multiple firearms resulting in his death. The kidnapping occurred in the Diego Zalduondo Public Housing Project in Luquillo. The victim was then transported by vehicle to Carruzo Ward, in Carolina, where he was killed. In furtherance of the commission of the kidnapping, the defendants used two vehicles, a Toyota RAV4 Sports Utility Vehicle and a Toyota Camry, each vehicle being a means, facility, and instrumentality of interstate or foreign commerce. The second superseding indictment added defendants Luyando-González and Flores-Nater to the previously charged indictment.

The indictment includes one count for kidnapping and two counts relating to using, carrying, brandishing, and discharging a firearm during a crime of violence that resulted in the death of W.G.E.

Assistant U.S. Attorney David T. Henek of the District of Puerto Rico is in charge of the prosecution of the case. If convicted, the defendants face up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.

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KANSAS CITY, KAN. – A Kansas man with a prior rape conviction was sentenced today to 197 months in federal prison for distributing child pornography, U.S. Attorney Stephen McAllister said. In addition, he was ordered to pay $95,000 in restitution.

James Minter, 47, Linwood, Kan., pleaded guilty to one count of receipt and distribution of child pornography. In his plea, he admitted that law enforcement received a report from CyberTipline (https://www.missingkids.org/gethelpnow/cybertipline ) that he had uploaded a file containing child pornography via the internet. Investigators tracked the upload to a Minter’s residence in Linwood. More than 1,000 images and 200 videos depicting the sexual abuse of children were seize from Minter’s devices.

In 1998, Minter was convicted of rape and criminal sodomy after assaulting a 5-year-old child. He was released from prison in May 2018.

McAllister commended the Wichita Internet Crimes Against Children Task Force and Assistant U.S. Attorney Kim Flannigan for their work on the cases.

HOUSTON – Authorities have taken nine people into custody on charges involving the distribution of meth, cocaine and/or oxycodone and hydrocodone, announced U.S. Attorney Ryan K. Patrick and Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.

Jermaine West, 42, aka Breadman is charged with Jonathan Rawlins, 44, and Bobby Pharms, 34, all from Houston, in the meth and cocaine conspiracy. The indictment also alleges West was involved in the illegal distribution of prescription opioids along with Tersha French, 46, Ronald Lucas, 40, and Antonia Vega, 32, all from Houston; Cynthia Ngwaba, 46, Richmond; Leon Covin, 47, Katy; and Toni Maria Nalintya, 48, Pearland.

The indictment was unsealed in its entirety today as authorities took Rawlins into custody. He is expected to make his initial appearance before U.S. Magistrate Judge Sam Sheldon at 10 a.m. tomorrow. The others made their appearances earlier this week, some of whom were ordered into custody pending detention hearings scheduled for Monday, Aug. 24. 

A federal grand jury returned the indictment under seal Aug. 13. According to the charges, West allegedly engaged in conspiracy during 2018-2019 to distribute meth and cocaine near schools and other locations in the Houston area with Rawlins and Pharms. West allegedly conducted some of the illegal activity on multiple occasions within 1000 feet of Worthing High School in the 3^rd Ward of Houston. 

The indictment alleges the conspiracy also involved the distribution of prescription opioids. West allegedly obtained the drugs from French, Lucas, Vega, Ngwaba, Covin and Nalintya via the Ennis Street Pharmacy and Barker Cypress Pharmacy in Houston.

If convicted on the illegal narcotics charges, West, Rawlins and Pharms face up to life in prison and possible fines up to $10 million. For each count of the prescription drug charges, West also faces up to 20 years in prison as well as additional fines up to $1 million along with the six others.

The FBI conducted the investigation through the Houston Anti-Gang Center with the assistance of the Houston Police Department, Texas Department of Public Safety and Drug Enforcement Administration. Assistant U.S. Attorney Jason Corley and DOJ Trial Attorney Devon Helfmeyer are prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

McALLEN, Texas – A 46-year-old Alamo man is set to appear in federal court on allegations he accepted a bribe, announced U.S. Attorney Ryan K. Patrick.

Oziel Cantu is charged in a criminal complaint filed today. Authorities took him into custody last night. He is expected to appear before U.S. Magistrate Judge Juan F. Alanis tomorrow at 9:00 a.m.  

The charges allege Cantu accepted $15,000 in exchange for facilitating the unlawful importation of narcotics into the United States from Mexico.

Cantu worked at the Pharr Port of Entry and assisted an individual smuggle cocaine that was concealed in a vehicle, according to the charges. He allegedly instructed an individual to use a certain inspection lane at a specified time on Aug. 19, so he could allow the vehicle to pass through inspection.

Cantu allegedly believed that individual had ties to a drug trafficking organization. However, that person was actually an undercover officer.

Authorities took Cantu into custody after arriving to accept the $15,000 payment, according to the complaint.  

If convicted of bribery, Cantu faces up to 15 years in federal prison and a possible $250,000 maximum fine.

The Department of Homeland Security - Office of Inspector General and Customs and Border Protection - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorneys Frances Blake and James Sturgis are prosecuting the case.

A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.