CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051

ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Luke Vuittonet, 19, of Pittsford, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to production of child pornography. The charge carries carry a mandatory minimum penalty of 15 years in prison, a maximum penalty of 30 years in prison, and a $250,000.

Assistant U.S. Attorney Melissa M. Marangola, who is handling the case, stated that between August 6 and August 12, 2019, the defendant produced digital photographs depicting a 13-year-old minor victim engaged in prohibited sexual conduct.  The images were produced on Vuittonet’s cellular telephone.

The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.    

Sentencing is scheduled for December 1, 2020, at 9:30 a.m. before Judge Siragusa.

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CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051

ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jose Casado, 32, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, fentanyl, heroin, cocaine, and crack cocaine, was sentenced to serve 121 months in prison by Chief U.S. District Court Judge Frank P. Geraci, Jr.

Assistant U.S. Attorney Matthew T. McGrath, who handled the case, stated that the defendant was the leader of a Rochester-based drug trafficking conspiracy. Between December 2017 and May 15, 2019, Casado conspired with multiple co-defendants to sell fentanyl, heroin, cocaine, and crack cocaine out of drug houses located on Clifford Avenue and Treyer Street in Rochester. The defendant obtained bulk quantities of the drugs from various suppliers, which he and other members of the conspiracy would then repackage for individual sale. During the course of the conspiracy, the Drug Enforcement Administration made 13 controlled purchases from the defendant or a co-defendant.

On March 14, 2019, a search warrant was executed at 467 Clifford Avenue. Investigators recovered 19 bags of fentanyl, nine bags of powder cocaine, nine bags of crack cocaine, materials used to package controlled substances for distribution, 1,800 rounds of .22 caliber ammunition, and 50 shotgun shells. On May 15, 2019, a second search warrant was executed at 467 Clifford Avenue. During that search, investigators recovered a .22 caliber pistol. Also on May 15, 2019, a search warrant was executed at 125 William Warfield Drive in Rochester, and investigators found and seized $3,970.00 in cash hidden in a heating duct.

The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division, and the Rochester Police Department, under the direction of Chief La’Ron Singletary.

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LAS VEGAS, Nev.— Tanoo Senethavilay, 37, of Las Vegas, Nevada was sentenced today by Chief U.S. District Judge Miranda Du to four years and nine months in prison, to be followed by three years of supervised release, for conspiracy to distribute fentanyl — a powerful synthetic opioid — in Las Vegas, announced U.S. Attorney Nicholas A. Trutanich of the District of Nevada and Special Agent in Charge Aaron C. Rouse of the FBI.

Senethavilay pleaded guilty on December 18, 2019, to conspiracy to distribute a controlled substance. Following today’s hearing, Senethavilay was remanded to the custody of the U.S. Marshals Service.

According to court documents, from August 2017 to September 2017, Senethavilay conspired to and did distribute 208 grams (approximately a half-pound) of fentanyl in exchange for cash. He has prior convictions for robbery, felon in possession of a firearm, attempted grand larceny, unlawful carry of a concealed weapon, and driving under the influence of alcohol.

Fentanyl is a synthetic opioid that is 80-100 times stronger than morphine, and is commonly added to heroin to increase its potency. Street names include “China Girl,” “King Ivory,” and “Murder 8.” Fentanyl poses a high risk of death not only to users, but also to law enforcement since the drug may be ingested, inhaled, or absorbed through the skin. A few milligrams, which is equivalent to a few grains of table salt, may be deadly. Users may believe that they are purchasing heroin without knowing that they are actually purchasing fentanyl – which often results in overdose deaths. 

The charges resulted from an investigation by the FBI.

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SAN FRANCISCO - A federal grand jury in San Francisco indicted Dale Behm; Yong Heng Liang, also known as Colin Liang; Joshua Stanka; Joshua Clark; and Michael Choy with conspiracy, wire fraud, and related charges related to an alleged scheme to submit fraudulent claims for refunds on import duties, announced United States Attorney David L. Anderson, Homeland Security Investigations (HSI) Special Agent in Charge Tatum King, and Internal Revenue Service Criminal Investigations (IRS-CI) Special Agent in Charge Kareem Carter.

The indictment, filed August 12, 2020, and unsealed today, alleges Liang, 34, of Daly City, Calif.; Behm, 75, of Shell Knob, Missouri.; Stanka, 41, of Katy, Texas; Clark, 38, of Fair Oaks Ranch, Texas; and Choy, 47, of Etibicoke, Ontario, Canada, conspired to defraud the United States of as much as $40 million by submitting multiple claims for refunds to recover tariffs that were properly owed on imports.  Pursuant to the refund scheme, defendants allegedly used a tire recycling company in Hayward and a shell company, both controlled by Liang.  The recycling company had no recycling equipment and shipped containers of thousands of used tires to countries in Asia, often using the name of the shell company. In addition, the defendants forged the shipping documents to support false claims to the government that the exported tires were actually high-quality plastics, allowing defendants to seek refunds paid for other imports.     

“We allege that the defendants, using Bay Area Tire Recycling, engaged in a massive environmental fraud. Used tires don’t belong in landfills, either here in California or overseas.  Used tires can be recycled, retreaded and reused.  By dumping used tires in Korea, India, and Vietnam, and using those exports to support false claims, the defendants cheated consumers, American taxpayers, the shipping companies, and everyone who cares about the environment.“

“Working in partnership with IRS Criminal Investigations and U.S. Customs and Border Protection, HSI will vigorously pursue U.S. based violators who seek to trash our planet and ruin the ecosystem for future generations,” said Special Agent in Charge King.

“This was an extremely well organized network,” said Special Agent in Charge Carter. “They manipulated the system to their advantage, submitted millions in false claims and laundered their ill-gotten gains.  IRS CI will continue to work with our law enforcement partners to ensure that anyone involved in these types of schemes will be held accountable for their crimes.”

According to the indictment, at the heart of the scheme were bonded companies such as San Francisco-based raw plastics importer The Pacific Rim Traders, LLC.  The indictment alleges that beginning as early as 2014 and continuing through September 2019, the defendants filed fraudulent claims for refunds of customs duties that Pacific Rim and other companies had paid to CBP.  In the case of Pacific Rim, the company imported large amounts of plastic resin from its parent company in China and used the resin to manufacture food-grade bottles and other materials.  Pacific Rim paid tariffs, or “customs duties,” on the imported plastics. The company also maintained a customs bond with CBP and therefore was entitled to accelerated refund checks, or “drawbacks,” from the U.S. Treasury when it exported qualifying goods. 

The indictment describes how the defendants submitted documents allowing Pacific Rim to receive drawbacks by submitting documents that made it appear shipping containers filled with used tires and scrap plastic were loaded with drawback-eligible virgin plastic material.  Specifically, Liang, who controlled a company that purported to recycle tires, allegedly arranged for shipping containers loaded with used tires to be shipped to ports in countries in Asia, including the Republic of Korea, India, and Vietnam. Liang then allegedly provided documents, including export bills of lading, to Choy who, at the direction of Stanka, Clark, and others, modified Liang’s and other exporters’ documents to provide to Behm with false invoices.  The invoices made it appear that Pacific Rim was selling large amounts of virgin plastic material to companies in Asia, when, in reality, Liang was exporting tires and other material.  Behm and others then allegedly directed a San Francisco-based customs broker to use the false documents to prepare customs drawback claims with CBP.  The claims sought drawbacks for as much as $655,000 at a time. 

Liang is also charged with defrauding a shipping company that had to pay for destruction of containers of tires shipped to Busan, South Korea.  According to the indictment, Liang listed a then-dissolved company as the recipient, or consignee, of the tires.  The indictment alleges that in 2017, 128 containers shipped by Liang were found abandoned in Busan, a discovery that lead to the initiation of an investigation by federal authorities.  A comparison of the export documents to the refund claims suggests the coconspirators altered the paperwork so that “scrap rubber” appeared as “PFTE Resin” and “EFTE Resin.”  The indictment alleges that if the actual contents of the containers – scrap rubber tires – had been reported to CBP, Pacific Rim’s drawback claims would not have been granted.

In total, the indictment alleges Pacific Rim received at least $6,400,000 in fraudulent drawbacks, while other clients of Stanka, Clark, Choy, and Liang obtained as much as an additional $34,000,000 in total refunds. 

In addition, the indictment alleges the parties laundered the proceeds of the fraud scheme. Pacific Rim allegedly received a percentage of the fraudulent refund claims and paid the remainder to a company owned by Stanka and Clark.  Further, Stanka and Choy allegedly transferred hundreds of thousands of dollars to themselves and made frequent payments to Choy for altered documents.  Choy, in turn, allegedly paid Liang for copies of bills of lading for his exports of waste tires to South Korea, Hong Kong, Vietnam, and elsewhere. 

In sum, the defendants are charged with the following crimes: 

Defendant Liang was arrested in Daly City, Calif., and is scheduled to make his initial appearance tomorrow morning, August 26, 2020, in San Francisco.  Defendants Stanka and Clark were also arrested in Texas this morning and are scheduled made their initial appearances in federal court in Houston, Texas, and San Antonio, Texas, respectively.  Defendant Dale Behm was arrested in Missouri and will make his initial appearance in federal court in Springfield, Missouri.           

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face maximum sentences as follows: 

However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. 

The case is being prosecuted by the Special Prosecutions section of the United States Attorney’s Office with the assistance of Beth Margen and Lance Libatique.  The prosecution is the result of an investigation by HSI and IRS-CI.

           ALBUQUERQUE, N.M. – Elias Bencomo-Morales, 42, of Albuquerque, New Mexico, made an initial appearance in federal court on Friday, August 21, and has been charged federally with carjacking for allegedly using a gun to force a woman and her two minor children out of their vehicle in a Taco Bell drive-thru lane. At a hearing today, the Court ordered that he will remain detained for trial.

           A federal indictment and complaint charge Bencomo-Morales also with using, carrying and brandishing a firearm during and in relation to a crime of violence.  The Albuquerque Police Department arrested Bencomo-Morales, who was transferred to the Federal Bureau of Investigation Violent Crime Task Force to face federal charges on August 19, 2020.

           Bencomo-Morales is accused of approaching a vehicle waiting in the Taco Bell drive-thru lane in southwest Albuquerque on September 17, 2019.  He allegedly pulled on the driver's-side door handle before the driver and her two children, 5 and 1 year old, got out of the vehicle at gunpoint. Bencomo-Morales allegedly drove away in the vehicle. The following day, Albuquerque police pulled the SUV over because the license plate was registered to a different vehicle, and Bencomo-Morales was taken into custody.

           A criminal complaint or indictment is only an accusation.  A defendants is presumed innocent unless and until proven guilty beyond a reasonable doubt.

           The case was investigated by the FBI Violent Crime Task Force and the Albuquerque Police Department. Assistant U.S. Attorney Timothy Trembley is prosecuting the case.

Assistant U. S. Attorney Charlotte E. Kaiser (619) 546-7282 

NEWS RELEASE SUMMARY– August 25, 2020

SAN DIEGO – Two brothers from Chihuahua, Mexico, pleaded guilty in federal court today, admitting that they smuggled three sisters across the U.S.-Mexico border in an ill-fated trek across treacherous terrain that resulted in the tragic deaths of the young women. One of the victims was the mother of a young child.

Cecilio and Ricardo Rios-Quinones pleaded guilty to Transportation of Aliens Resulting in Death, Bringing in Aliens for Financial Gain and Conspiracy. The brothers are scheduled to be sentenced on November 13, 2020 at 9 a.m. before U.S. District Judge Cathy Ann Bencivengo. The defendants also agreed to provide restitution to the sisters’ families.

As part of their plea agreements, the defendants admitted that they conspired with others to serve as foot guides in order to smuggle individuals illegally into the United States, and that they were ill-prepared when they guided the three sisters - Juana Santos Arce, Margarita Santos Arce and Paula Santos Arce of Oaxaca, Mexico - through a remote, mountainous region during a snow storm. The youngest sister was the mother of a young child.

According to the plea agreements, the defendants guided the three sisters - ages 35, 32 and 29 respectively - across the border from Mexico through the boundary fence in a remote area within the Southern District of California. They encountered cold, windy and rainy weather. It then began to snow. They lacked proper clothing, shoes, shelter, and other food and equipment to remain or hike in this cold, remote, mountainous environment.

According to the plea agreements, agents from the Border Patrol, Search, Trauma and Rescue (BORSTAR) unit initiated a rescue operation due to a distress call in the Boulevard Border Patrol Station’s area of operation on February 10, 2020, at approximately 1:50 p.m. The call concerned five undocumented aliens who were lost and experiencing hypothermia. BORSTAR agents initially encountered the two defendants in the snow in an area approximately 20.5 miles east of the Tecate, California port of entry and approximately 12 miles north of the border. The defendants pointed agents to the direction of the three sisters.  Agents subsequently found the three sisters lying on the ground near a large boulder on a ridge.

Two of the women were already dead; one was responsive but suffering severely from hypothermia. She later died despite gallant efforts of members of BORSTAR, Border Patrol Agents from the Campo/Boulevard area and ASTREA, the aviation unit from the San Diego Sheriff’s Department, who placed their own lives at risk while trying to keep the distressed woman alive as temperatures dropped and winds accelerated. Autopsies confirmed the three sisters died due to environmental hypothermia.

“These three young women lost their lives in horrible circumstances, despite the heroic efforts of many who tried to save them,” said U.S. Attorney Robert Brewer. “This is a tragedy that never should have happened. Unfortunately, migrant deaths are not uncommon because selfish smugglers don’t hesitate to place vulnerable victims in grave danger to make money. We will deliver justice to these callous smugglers who value their pay day over human lives.” Brewer commended the hard work of prosecutor Charlotte Kaiser and federal agents from Homeland Security Investigations to achieve justice in this case, and the heroism of many Border Patrol agents and Sheriff’s deputies in this heartbreaking case.

“Human smugglers are driven by greed, prey on the desperate, and demonstrate a blatant disregard for human life, as demonstrated by this senseless tragedy,” said Homeland Security Investigations (HSI) Special Agent in Charge Cardell T. Morant. “HSI and our partners remain committed to pursuing and convicting the criminal networks that exploit migrants for profit and undermine our nation’s immigration laws.”

“Justice has been served with these guilty pleas. Unfortunately, the families of those lost in this tragedy will never be whole. These young woman suffered and died at the hands of smugglers who never saw them as people, but only as commodities that could be exploited,” said San Diego Sector Chief Patrol Agent Aaron Heitke. “Border Patrol agents frequently risk their own lives to save others. The actions exhibited in this event represent the highest values of the Border Patrol.”

DEFENDANT                                               Case Number 20cr0868-CAB                                        

Cecilio Rios-Quinones                                   Age: 37                        Chihuahua, Mexico

Ricardo Rios-Quinones                                   Age: 22                       Chihuahua, Mexico

SUMMARY OF CHARGES

Transportation of Aliens Resulting in Death – Title 8, U.S.C., Section 1324(a)(1)(A)(i) and (B)(iv)

Maximum penalty: Life in prison or death and $250,000 fine

Bringing in Aliens for Financial Gain – Title 8, U.S.C., Section 1324(a)(2)(B)(ii)

Maximum penalty: Three years mandatory minimum in prison, 10 years maximum, and $250,000 fine

Conspiracy – Title 18, U.S.C., Section 371

Maximum Penalty: Five years in prison and $250,000 fine

AGENCIES

Homeland Security Investigations

U.S. Border Patrol, Intelligence Unit

SYRACUSE, NEW YORK – Richard J. Potter, Jr., age 55, of Springport, New York, was arrested today on charges of receipt of child pornography and possession of a firearm by a convicted felon, announced United States Attorney Grant C. Jaquith and Thomas F. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

Potter appeared today before United States Magistrate Judge Thérèse Wiley Dancks.  A registered sex offender based on a 2003 state felony conviction related to the sexual abuse of a minor, Potter was ordered detained pending the resolution of his case.

The criminal complaint unsealed today alleges that Potter used a computer to receive images and videos of child pornography from the Internet, and stored thousands of digital copies of those images and videos on cellular telephones. In addition, Potter is alleged to be in possession of a 12-gauge shotgun following a previous felony conviction.

If convicted of receipt of child pornography, Potter faces a mandatory minimum sentence of fifteen years and a maximum term of 40 years imprisonment, a fine of up to $250,000, a term of supervised release of at least 5 years and up to life, and mandatory registration as a sex offender. The charge of unlawful possession of a firearm by a convicted felon carries a maximum term of imprisonment of ten years, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.

The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.

This case was investigated by the Federal Bureau of Investigation’s Mid-State Child Exploitation Task Force, the New York State Police Bureau of Criminal Investigation (BCI) and Computer Crimes Unit (CCU), and the Cayuga County District Attorney’s Office. The case is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.

This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Office, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims.  For more information about Project Safe Childhood, please visit https://www.justice.gov/psc/.

United States Attorney Erica H. MacDonald today announced a federal indictment charging DYLAN SHAKESPEARE ROBINSON, 22, DAVON DE-ANDRE TURNER, 24, BYRCE MICHAEL WILLIAMS, 26, and BRANDEN MICHAEL WOLFE, 23, with one count each of conspiracy to commit arson at the Minneapolis Police Department’s Third Precinct. ROBINSON and WOLFE, were previously charged via federal criminal complaint with aiding and abetting arson. WILLIAMS was previously charged via criminal complaint with conspiracy to commit arson. Formal detention and arraignment hearings will be scheduled at a later date.

According to the allegations in the indictment, on May 28, 2020, ROBINSON, TURNER, WILLIAMS, and WOLFE each went to the Minneapolis Police Department’s Third Precinct where a crowd of hundreds had gathered. At one point, the crowd began shouting, “Burn it down, burn it down.” Soon after, a fence that was designed to keep trespassers out of the Third Precinct building was torn down. ROBINSON, TURNER, WILLIAMS, and WOLFE, along with unidentified other co-conspirators, breached the fence and entered the Third Precinct building.

According to the allegations in the indictment, ROBINSON, assisted by an unidentified co-conspirator, lit an incendiary device held by the unidentified co-conspirator who threw it toward the Third Precinct building with the intent that it would start a fire or fuel an existing fire. WILLIAMS and TURNER, assisted by an unidentified co-conspirator, lit a Molotov cocktail, which was taken into the Third Precinct building by TURNER and used to start a fire. WOLFE pushed a barrel into a fire at the entrance of the Third Precinct building to accelerate an existing fire.

The ATF and FBI continue to urge the public to report suspected arson, use of explosive devices, or violent, destructive acts associated with the recent unrest. Anyone with information specifically related to the Third Precinct fire or other business fires in the Twin Cities can call 1-888-ATF-TIPS (1-888-283-8477), email ATFTips@atf.gov or submit information anonymously via ReportIt.com. In addition to fires, the FBI is looking for people who may have incited or promoted violence of any kind. Anyone with digital material or tips can call 1-800-CALLFBI (800-225-5324) or submit images or videos at FBI.gov/violence.

This case is the result of an investigation conducted jointly by the ATF, the FBI, the Minneapolis Police Department, and the Minnesota State Fire Marshal Division.

This case is being prosecuted by Assistant U.S. Attorneys Harry M. Jacobs and David P. Steinkamp.

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

Defendant Information:

DYLAN SHAKESPEARE ROBINSON, 22

Brainerd, Minn.

Charges:

• Conspiracy to commit arson, 1 count

DAVON DE-ANDRE TURNER, 24

St. Paul, Minn.

Charges:

• Conspiracy to commit arson, 1 count

BRYCE MICHAEL WILLIAMS, 26

Staples, Minn.

Charges:

• Conspiracy to commit arson, 1 count

BRANDEN MICHAEL WOLFE, 23

St. Paul, Minn.

Charges:

• Conspiracy to commit arson, 1 count

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United States Attorney’s Office, District of Minnesota: (612) 664-5600

This case was investigated by the Internal Revenue Service – Criminal Investigation and prosecuted by the United States Attorney’s Office for the Southern District of Iowa.

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 24, 2020, U.S. District Court Judge Christopher C. Conner upheld the 28-year sentence imposed in 2011 of the former President Judge of the Luzerne County Court of Common Pleas, Mark A. Ciavarella, age 70, for accepting millions in bribes and kickbacks from the owner of privately held juvenile detention facility.  

According to U.S. Attorney David J. Freed, Ciavarella was convicted after an 11-day jury trial in February 2011 and in August 2011, the late U.S. District Court Judge Edwin M. Kosik sentenced Ciavarella to 28 years’ imprisonment. Yesterday’s decision upheld that sentence.

After his conviction was affirmed on appeal, Ciavarella claimed that his trial attorneys were ineffective because they should have argued to the jury that some of the crimes he was convicted for were barred by the statute of limitations. The case was reassigned to U.S. District Court Judge Christopher C. Conner to decide if Ciavarella’s attorneys were ineffective.

Judge Conner found Ciavarella’s attorneys were ineffective and vacated certain counts of conviction, including the charges of racketeering conspiracy and money laundering conspiracy. Ciavarella then claimed he was entitled to be resentenced on the remaining convictions.  

Yesterday’s opinion by Judge Conner held that resentencing was not required and the original 28 year sentence would remain in place.

“This decision reinforces this office’s long standing commitment to bring justice to those victimized by these corrupt state judges,” said U.S. Attorney Freed. “They betrayed their community and deserve the substantial punishments they received.”

Ciavarella and his co-defendant, Michael Conahan, who also served as President Judge of the Court of Common Pleas of Luzerne County, were initially charged in January 2009. The charges were the result of a federal investigation of alleged corruption in the Luzerne County court system. The inquiry began in 2007 and expanded to include county government offices, state legislators, school districts and contractors in Northeastern Pennsylvania.  Conahan pleaded guilty to racketeering conspiracy in April 2010 and is serving a 17-year sentence. Conahan was recently released from federal custody to home confinement due to the COVID-19 pandemic.

The judicial scandal, described as the worst in Pennsylvania's history, and the federal prosecutions have had major consequences: Ciavarella and Conahan resigned from the bench in 2009. The Supreme Court of Pennsylvania vacated thousands of juvenile convictions in Luzerne County as a result of Ciavarella's conduct as a Juvenile Court Judge. A State Interbranch Commission on Juvenile Justice recommended changes aimed at safeguarding the constitutional rights of juveniles and improving the oversight and disciplinary process for judges in Pennsylvania. In June 2011, a committee of the American Bar Association reviewed and made recommendations to improve procedures in the state's Judicial Conduct Board. A procedure was established in Luzerne County for compensation of victims of the activities of Ciavarella and Conahan.

Ciavarella is scheduled to be released from federal prison in 2035. 

The case was investigated by the Internal Revenue Service, Criminal Investigation Division and the Federal Bureau of Investigation.

The post-trial litigation was handled by Assistant United States Attorneys Carlo Marchioli, William S. Houser and Michael A. Consiglio.

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WASHINGTON – A North Carolina man was charged by criminal complaint unsealed today for fraudulently seeking more than $414,000 in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division, U.S. Attorney Matthew G.T. Martin of the Middle District of North Carolina, Treasury Inspector General for Tax Administration (TIGTA) J. Russell George, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation, Officer of Inspector General (FDIC OIG), and Special Agent in Charge Michael J. De Palma of the IRS Criminal Investigation (CI) Miami Field Office made the announcement.

David Christopher Redfern, 31, of Trinity, North Carolina, was charged by criminal complaint filed in the Middle District of North Carolina with one count of wire fraud and one count of bank fraud.  Redfern was arrested this morning and made his initial appearance this afternoon before U.S. Magistrate Judge L. Patrick Auld of the Middle District of North Carolina. 

The complaint alleges that Redfern, through a company called Wilder Effects LLC (Wilder Effects) that he formed in January 2020, fraudulently applied for two EIDLs and a PPP loan between April and June of this year.  The PPP loan application was supported by falsified documents.  The false documentation included a fake IRS filing that purported to be Wilder Effects’ Employer’s Quarterly Federal Tax Return for the first quarter of 2020, showing that the company paid wages to 20 employees, when in reality the IRS has no record of such a filing.  The complaint further alleges that EIDL and PPP loan proceeds were withdrawn in cash or transferred to Redfern’s personal bank account.  As a result of suspected fraud alerts, Wilder Effects’ bank account was frozen and approximately $402,000 of the over $414,000 in EIDL and PPP loan proceeds were recovered. 

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent.  PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities.  The PPP allows the interest and principal on the PPP loan to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses. 

The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue.  EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments.  If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.   

A criminal complaint is merely an accusation.  A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case was investigated by TIGTA, FDIC OIG, and IRS CI.  Trial Attorney Jessee Alexander-Hoeppner of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Meredith Ruggles for the Middle District of North Carolina are prosecuting the case.  The Justice Department thanks the SBA OIG for their support and assistance. 

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 (BCDF) hotline by phone (1-866-720-5721 or via an online reporting form available at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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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United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.

Joseph Blue Bird, age 33, was indicted on August 11, 2020.  He appeared before U.S. Magistrate Judge Mark A. Moreno on August 20, 2020, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

Blue Bird was convicted of Abusive Sexual Contact in February 2014.  As a result of this conviction, he is required to register as a sex offender.  It is alleged that between March 7, 2020, and May 6, 2020, Blue Bird, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.

The charge is merely an accusation and Blue Bird is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the U.S. Marshals Service and the Mobridge Police Department. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.   

Blue Bird was remanded to the custody of the U.S. Marshals Service pending trial.  A trial date has not been set.

United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Possession With Intent to Distribute Methamphetamine and Possession of Ammunition by a Prohibited Person.

Kevin Bordeaux, age 21, was indicted on August 11, 2020.  He appeared before U.S. Magistrate Judge Mark A. Moreno on August 20, 2020, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to 20 years in federal prison and/or a $1,000,000 fine, at least 3 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that on March 3, 2020, Bordeaux did knowingly and intentionally possess with the intent to distribute methamphetamine. On March 4, 2020, a search warrant was executed on Bordeaux’s residence wherein several rounds of ammunition were seized.

The charges are merely accusations and Bordeaux is presumed innocent until and unless proven guilty.

Drug trafficking is an inherently violent activity.  Firearms are tools of the trade for drug dealers.  It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.

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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.

This case is also 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. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.

The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force, the Rosebud Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.   

Bordeaux was remanded to the custody of the U.S. Marshals Service pending trial.  A trial date has not been set.

United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.

Charles Cordier, III, age 21, was indicted on January 14, 2020.  He appeared before U.S. Magistrate Judge Mark A. Moreno on August 19, 2020, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to 20 years in federal 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 Indictment alleges that on November 5, 2019, in Rosebud, South Dakota, Cordier did forcibly assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, and that such conduct involved the use of a dangerous weapon.

The charge is merely an accusation and Cordier is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services.  Assistant U.S. Attorney Kirk Albertson is prosecuting the case.   

Cordier was remanded to the custody of the U.S. Marshals Service pending trial.  A trial date has not been set.

United States Attorney Ron Parsons announced that a Vale, South Dakota, woman was charged in federal district court with thirty counts of Wire Fraud, ten counts of Money Laundering, and one count of Bank Fraud. 

Rena M. Hymans, age 48, was indicted by a federal grand jury on August 20, 2020.  Hymans appeared before U.S. Magistrate Judge Daneta Wollmann on August 24, 2020, and pleaded not guilty to the charges.  The maximum penalty on each count of wire fraud is 20 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.  The maximum penalty on each count of money laundering is 20 years in federal prison and/or a $500,000 fine, or twice the value of the property involved in the transaction, whichever is greater, 3 years of supervised release, and $100 to the Federal Crime Victims Fund.  The maximum penalty for bank fraud is 30 years in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The indictment alleges that between June 2017 and January 2020, Hymans, in her capacity as a South Dakota licensed attorney, devised a scheme to fraudulently obtain money by transferring it from a client trust account – where she was holding it for the benefit of a client – to her own business and personal accounts and then using the money for her personal benefit.

The investigation was conducted by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the South Dakota Division of Criminal Investigation.  Assistant U.S. Attorney Benjamin Patterson is prosecuting the case. The charges are merely accusations and Hymans is presumed innocent until and unless proven guilty.

Hymans was released pending trial.  A trial date has not been set. 

United States Attorney Ron Parsons announced that an Allen, South Dakota, woman was charged in federal district court with First Degree Murder.  

Jonnie Fineran, age 18, was charged on August 4, 2020.  Fineran appeared before U.S. Magistrate Judge Daneta Wollmann on August 12, 2020, and pled not guilty to the charge.

The maximum penalty upon conviction is mandatory life in federal prison and a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The charge relates to Fineran killing a man by stabbing him on July 24, 2020, at Manderson.  The charge is merely an accusation and Fineran is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation.  Assistant U.S. Attorney Eric Kelderman is prosecuting the case.

Fineran was detained pending trial.  A trial date has not been set. 

United States Attorney Ron Parsons announced that a Watertown, South Dakota, man has been indicted by a federal grand jury for Receipt and Distribution of Child Pornography and Transportation of Child Pornography.

Derek Michael Mason, age 19, was indicted on August 17, 2020.  He appeared before U.S. Magistrate Judge William D. Gerdes on August 21, 2020, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, life of supervised release, and up to $200 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that between May 1, 2017, and May 5, 2020, Mason knowingly received and distributed, and attempted to receive and distribute child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including a computer.

The Indictment also alleges that between October 14, 2019, and May 5, 2020, Mason knowingly transported child pornography using the internet, and uploaded graphic image and video files depicting one or more minors engaged in sexually explicit conduct into his Dropbox account with his e-mail address.

The charges are merely accusations and Mason is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Federal Bureau of Investigation and the Division of Criminal Investigation.  Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.   

Mason was released on bond pending trial.  A trial date has not been set.

United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Kidnapping and Assault by Strangulation and Suffocation.

Steven McDaniel, a/k/a Steven McDaniels, age 33, was indicted on December 17, 2019.  He appeared before U.S. Magistrate Judge Mark A. Moreno on August 20, 2020, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that between June 6, 2019, and June 7, 2019, McDaniel kidnapped and held a woman in Mission, and unlawfully assaulted her by strangling and suffocating her.

The charges are merely accusations and McDaniel is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services.  Assistant U.S. Attorney Kirk Albertson is prosecuting the case.   

McDaniel was released on bond pending trial.  A trial date has not been set.

Audrey Strauss, the Acting United States Attorney for the Southern District of New York, Peter C. Fitzhugh, Special Agent-in-Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Philip R. Bartlett, Inspector-in-Charge of the New York Office of the United States Postal Inspection Service (“USPIS”), announced today the unsealing of indictments charging UMAR AHMAD a/k/a “Artist,” GEORGE BRIDI, and JONATAN CORREA, a/k/a “Raid,” with copyright infringement, and as to BRIDI, wire fraud, for their involvement in the Sparks Group, an international piracy group involved in illegally distributing movies and television shows on the Internet.  BRIDI, a citizen of the United Kingdom, was arrested on Sunday in Cyprus on an INTERPOL Red Notice based on the U.S. criminal charges. The United States will seek BRIDI’s extradition to stand trial in the United States.  CORREA was arrested yesterday in Olathe, Kansas, where he will be presented in federal court.  AHMAD, a citizen of Norway, remains at large.  The case is assigned to United States District Judge Richard M. Berman. 

In coordination with law enforcement authorities in 18 other countries and supported by Eurojust and Europol, dozens of servers controlled by the Sparks Group were taken offline today around the world, including in North America, Europe, and Asia.  The Sparks Group utilized these servers to illegally store and disseminate copyrighted content to members around the globe. 

Acting U.S. Attorney Audrey Strauss said:  “As alleged, the defendants were members of an international video piracy ring that was sophisticated and widespread.  The group allegedly circumvented copyright protections on nearly every movie released by major production studios, as well as television shows, and distributed them by way of a worldwide network of servers.  Thanks to the efforts of HSI, the Postal Inspection Service, Eurojust, Europol, and our law enforcement partners in 18 countries on three continents, key members of this group are in custody, and the servers that were the pipeline for wholesale theft of intellectual property are now out of service.”

HSI Special Agent-in-Charge Fitzhugh said:  “As alleged, Sparks Group members reproduced and disseminated hundreds of movies and television shows prior to their retail release date, including nearly every movie released by major production studios, causing millions of dollars in losses to the film and television industry.  This investigation shows – in high definition – that despite the online platform and international nature of this scheme, we are committed to stop those who use the cyber world for illicit gain.  HSI New York’s El Dorado Task Force, in collaboration with the U.S. Postal Inspection Service, leveraged their global network of law enforcement partners to shut down this criminal organization’s cyber piracy network and arrest those allegedly responsible.”

USPIS Inspector-in-Charge Philip R. Bartlett said:  “Copyright criminals have come a long way from bootlegging movies in local theaters and selling inferior quality videos and DVD’s on the streets of New York City for $5.00.  The movies and TV shows allegedly stolen by these defendants not only represent a body of work ripped off from those who spent years developing their craft and working their way to stardom, but deprives the studios and actors of the fruits of their labor.”

Ladislav Hamran, President of Eurojust, said:  “This case is an excellent example of what can be achieved if we work together across borders and continents. Thanks to the long-standing partnership between the U.S. and the European authorities, we managed to deal a significant blow to online piracy. My sincere congratulations go out to all countries involved in yesterday’s joint action day.”

According to the allegations contained in the Indictments^[[1]] unsealed yesterday in Manhattan federal court:

Between 2011 and the present, UMAR AHMAD a/k/a “Artist,” GEORGE BRIDI, JONATAN CORREA, a/k/a “Raid,” and others known and unknown were members of the Sparks Group, a criminal organization that disseminated on the Internet movies and television shows prior to their retail release date, including nearly every movie released by major production studios, after compromising the content’s copyright protections.

In furtherance of its scheme, the Sparks Group fraudulently obtained copyrighted DVDs and Blu-Ray discs from wholesale distributors in advance of their retail release date by, among other things, making various misrepresentations to the wholesale distributors concerning the reasons that they were obtaining the discs prior to the retail release date.   

Sparks Group members then used computers with specialized software to compromise the copyright protections on the discs, a process referred to as “cracking” or “ripping,” and to reproduce and encode the content in a format that could be easily copied and disseminated over the Internet.  They thereafter uploaded copies of the copyrighted content onto servers controlled by the Sparks Group, where other members further reproduced and disseminated the content on streaming websites, peer-to-peer networks, torrent networks, and other servers accessible to the public.  The Sparks Group identified its reproductions by encoding the filenames of reproduced copyrighted content with distinctive tags, and also uploaded photographs of the discs in their original packaging to demonstrate that the reproduced content originated from authentic DVDs and Blu-Ray discs.

AHMAD and BRIDI arranged for discs to be picked up, mailed, or delivered from distributors located in Manhattan, Brooklyn, and New Jersey to other members of the Sparks Group, including CORREA, prior to their official release date.  AHMAD, BRIDI, and CORREA then reproduced, and aided and abetted the reproduction of, these discs by using computer software that circumvented copyright protections on the discs and reproducing the copyrighted content for further distribution on the Internet. 

The Sparks Group has caused tens of millions of dollars in losses to film production studios.

*              *             *

AHMAD, 39, BRIDI, 50, and CORREA, 36, are each charged with copyright infringement conspiracy, which carries a maximum penalty of five years in prison.  BRIDI is also charged with wire fraud conspiracy, which carries a maximum penalty of 20 years in prison, and conspiracy to transport stolen property interstate, which carries a maximum penalty of five years in prison.    

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

 Ms. Strauss praised the outstanding work of HSI and USPIS.  She also thanked Europol and Eurojust as well as law enforcement authorities in the following countries for their assistance in the investigation:  Canada, Cyprus, Czech Republic, Denmark, France, Germany, Italy, Republic of Korea, Latvia, Netherlands, Norway, Poland, Portugal, Romania, Spain, Sweden, Switzerland, and the United Kingdom. 

The case is being prosecuted by the Office’s Violent and Organized Crime Unit.  Assistant United States Attorneys Andrew K. Chan, Mollie Bracewell, and Christy Slavik are in charge of the prosecution.  The U.S. Department Justice’s Office of International Affairs (OIA) of the Department’s Criminal Division provided significant and ongoing assistance with facilitating the execution of dozens of mutual legal assistance requests in 18 different countries necessary for taking down servers and gathering evidence.  OIA also provided critical support in working with Eurojust and Europol in planning the coordinated operation yesterday.

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

United States Attorney Ron Parsons announced that a Watertown, South Dakota, man has been indicted by a federal grand jury for Receipt and Distribution of Child Pornography and Transportation of Child Pornography.

Vincent Michael Perez, age 35, was indicted on August 17, 2020.  He appeared before U.S. Magistrate Judge William D. Gerdes on August 21, 2020, and pled not guilty to the Indictment.

The maximum penalty upon conviction is up to 40 years in federal prison and/or a $250,000 fine, life of supervised release, and up to $200 to the Federal Crime Victims Fund.  Restitution may also be ordered.

The Indictment alleges that between August 7, 2019, and August 17, 2019, Perez knowingly received and distributed, and attempted to receive and distribute child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including a computer.

The Indictment also alleges that between August 7, 2019, and August 30, 2019, Perez knowingly transported child pornography using the internet, and uploaded graphic image and video files depicting one or more minors engaged in sexually explicit conduct into his Dropbox account with his e-mail address.

The charges are merely accusations and Perez is presumed innocent until and unless proven guilty. 

The investigation is being conducted by the Federal Bureau of Investigation and the Watertown Police Department.  Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.   

Perez was remanded to the custody of the U.S. Marshals Service pending trial.  A trial date has not been set.