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Seven Defendants Sentenced in $10 Million Mortgage Fraud and Identity Theft Scheme

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Miami, Florida – This week, a federal district judge sent six South Florida residents and one New Jersey resident to federal prison for their roles in a fraud scheme that involved stealing identities, creating and using fake foreign passports, impersonating homeowners, and falsifying loan documents to trick lenders into providing millions of dollars of mortgage loans on unencumbered residential properties. 

The scheme followed a general pattern.  First, the fraudsters would identify residential homes with no mortgages, and absent owners, located in high-end South Florida neighborhoods.  Next, using the names and other identity information of the true homeowners, the fraudsters created fake passports.  Alongside the homeowners’ names, the fraudsters placed photographs of co-conspirators.  Some of those co-conspirators appeared at loan closings posing as the homeowners.  The fraudsters used the fake passports to apply for mortgage loans from private lenders and to open bank accounts in the homeowners’ names -- accounts into which lenders wired the loan money.  They used the stolen money to buy luxury cars, expensive watches, and other items.  In total, the scheme drained close to $10 million of equity from South Florida homes.  

The prison sentences in this case include:

  • Carlos Rafael Castaneda Mendez, 34, of Miami, was sentenced to 78 months.
  • Alejandro Boada Oliveros, 45, of Miami, was sentenced to 46 months.
  • Jonnathan Jesus Gonzalez, 33, of Miami, was sentenced to 44 months.
  • Yanjeisis Alejandra Pompa Villafane, 25, of Hialeah, was sentenced to 28 months.
  • Lilia Rosa Morales Moreno, 45, of Miami, was sentenced to 30 months.
  • Katherine Hansen Mendoza, 25, of Miami, was sentenced to seven months.
  • Isbel Rodriguez Batista, 23, of Teaneck, New Jersey was sentenced to 30 months.

Charges against other defendants are pending.  An indictment is only an accusation and defendants are presumed innocent unless and until proven guilty.

Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida; Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office; and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office made the announcement. 

USSS Miami, HSI Miami, and Aventura Police Department investigated this case.  Assistant U.S. Attorney Stephanie Hauser is prosecuting the case.  Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no.: 20-cr-20155.

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Fulton Man Sentenced to 50 Years in Prison for Receipt and Possession of Child Pornography

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SYRACUSE, NEW YORK – Gary Goodale, age 41, of Fulton, New York, was sentenced today to serve 50 years in federal prison for receipt and possession of child pornography, announced United States Attorney Carla B. Freedman and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).

As part of his previous guilty plea, Goodale admitted that he used his personal computer to receive images of child pornography over the internet, and that he possessed child pornography on three electronic devices.  A forensic review of Goodale’s cellular telephone and two portable electronic storage devices revealed that all three contained numerous image files depicting child pornography.  Goodale also admitted that the images he possessed include sexually explicit photographs of two minors that he produced himself.   

Goodale was previously convicted on December 8, 1999, in Oswego County Court for Sodomy in the First Degree in violation of New York Penal Law, Section 130.50(3), which makes it unlawful to engage in deviate sexual intercourse with another person who is less than eleven years old, and was sentenced at that time to 8 years imprisonment.

Senior United States District Judge Thomas J. McAvoy also imposed a lifetime term of supervised release, which will start after Goodale is released from prison, and ordered Goodale to pay a $400 special assessment. Goodale will also be required to register as a sex offender.

Goodale’s case was investigated by Homeland Security Investigations, Syracuse Office with assistance from the New York State Police Troop D Computer Crimes Unit, the Oswego County District Attorney’s Office and the Fulton Police Department, and was prosecuted by Assistant United States Attorney Geoffrey J. L. Brown as a part of Project Safe Childhood.

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 www.projectsafechildhood.gov

Two Maryland Men Plead Guilty to Charges in Armed Robbery of Unlicensed Marijuana Dispensary

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            WASHINGTON – Two Maryland man have pleaded guilty to charges stemming from an armed robbery of an unlicensed marijuana dispensary in Northeast Washington in which four employees were bound with zip ties, announced Acting U.S. Attorney Channing D. Phillips and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).

            Dexter T. Brown, 43, and Gregory Sharps, 42, both of Severn, Md., pleaded guilty on Oct. 15, 2021, in the Superior Court of the District of Columbia, to kidnapping, armed robbery, assault with a dangerous weapon, and a firearms offense. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon prison sentence in the estimated range of 72 to 88 months. The Honorable Neal E. Kravitz scheduled sentencing for Dec. 22, 2021.

            According to the government’s evidence, on Feb. 12, 2019, at approximately 10:50 p.m., Brown, Sharps, and a third man arrived at “Higher Limits,” an unlicensed marijuana dispensary in the 500 block of H Street NE. They pretended to be normal customers perusing the shop’s wares before each of them brandished a firearm at the employees minding the store and announced the robbery. Over the next several minutes, they proceeded to round up the employees and placed four of them in zip ties. One other employee was ordered to open the cash register and a sixth escaped. The assailants gathered marijuana, merchandise, and cash.

            They then fled in a van. Metropolitan Police Department (MPD) officers were called to the scene and gave chase to the van. The suspects ultimately bailed out of the van and fled. Three weapons were eventually recovered along with a bag containing proceeds of the armed robbery. Brown and Sharps were arrested in October 2019 and have been in custody ever since.

            A third defendant previously pleaded guilty to related charges.

            In announcing the plea, Acting U.S. Attorney Phillips and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Allison Gregory Daniels. Finally, they commended the work of Assistant U.S. Attorneys Felice Roggen, William Hart, and Tamara Rubb, who investigated and prosecuted the case.

 

Dominican National Pleads Guilty to Fentanyl Trafficking

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BOSTON – A Dominican national pleaded guilty today in federal court in Boston to drug trafficking activities involving fentanyl and oxycodone.

Jose Guerrero, 29, pleaded guilty to two counts of distribution of and possession with intent to distribute fentanyl and oxycodone, three counts of distribution of and possession with intent to distribute 40 grams or more of fentanyl and one count of possession with intent to distribute 400 grams or more of fentanyl. U.S. District Court Judge Indira Talwani scheduled sentencing for Jan. 19, 2022.

Between June and August 2020, Guerrero sold fentanyl and oxycodone powder and pills on five occasions to an undercover law enforcement officer in Lawrence, and was arrested after making the fifth sale. A subsequent search of Guerrero’s residence  resulted in the seizure of an additional 830 grams of fentanyl.

The charges of distribution of and possession with intent to distribute fentanyl and oxycodone provide for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. The charges of distribution of and possession with intent to distribute 40 grams or more of fentanyl provide for a sentence of at least five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. The charge of possession with intent to distribute 400 grams or more of fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office, made the announcement today. Valuable assistance was provided by the Lawrence Police Department. Assistant U.S. Attorney Stephen W. Hassink of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.

Parkersburg Man Sentenced to 10 Years in Prison for Gun and Drug Crimes

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CHARLESTON, W.Va. – Jonathan Ray Sindledecker, 40, of Parkersburg, was sentenced today to 120 months in prison for prohibited possession of a firearm by a felon and possession with intent to distribute methamphetamine.  Sindledecker previously pleaded guilty to those two felony offenses on July 28, 2021. 

According to court documents and statements made in court, officers with the Parkersburg Police Department arrested Sindledecker on January 17, 2020 due to outstanding warrants.   When officers approached Sindledecker at a Go-Mart store near the intersection of 16th Street and St. Mary’s Avenue, he ran around the store into an alley.  As Sindledecker was running, he attempted to pull a pistol with an obliterated serial number from his waist area.  Upon doing so, Sindledecker lost his balance and fell to the ground.  Officers apprehended Sindledecker and located the pistol nearby.  Officers also located a quantity of methamphetamine, digital scales and a small amount of cash on Sindledecker.  Sindledecker knew he was prohibited from possessing the firearm due to prior felony convictions for unlawful entry and manufacture of a controlled substance in Wood County Circuit Court.  Sindledecker admitted that he intended to distribute the methamphetamine to others.    

Including the two convictions from this case, Sindledecker now has 25 adult criminal convictions including seven felony convictions and 18 misdemeanor convictions.  Included in Sindledecker’s criminal history are convictions for battery, domestic battery, domestic assault, and two felony convictions for manufacture of a controlled substance.     

The United States sought a strong sentence of imprisonment in this case due to Sindledecker’s criminal history as well as his decision to pull a pistol out of his waistband while fleeing from law enforcement officers just prior to his arrest. 

United States Attorney William S. Thompson made the announcement and commended the investigative work of the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.

United States District Judge Joseph R. Goodwin imposed the sentence. 

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. 2:20-cr-00050.

 

 

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Eight People Charged in South Florida Federal Bank Fraud, Money Laundering Case

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Miami, Florida – In a 30-count indictment unsealed today, a Miami federal grand jury charged eight defendants for their roles in a fraudulent check and money laundering scheme.  

The indictment charges Christopher Salermo, 30, from Miami; Rene Ripes III, 22, from Hialeah; Carlo Luvara Escobar, 26, from Miami; Clifton Taylor, Jr., 33, from Miami; Edwin Castillo, 23, from Hialeah; John Anthony Perez, 23, from Hialeah Gardens; Ana Figueroa, 22, from Miami; and Brandon Cooper, 28, from the Bahamas, for participating in a fraud scheme that operated as follows, according to the indictment: Members of the conspiracy would steal bank account and routing numbers belonging to legitimate companies and individuals.  Then they would: create fraudulent checks containing the stolen account and routing number information; forge victim signatures on the checks; and deposit the checks into bank accounts under the control of members of the conspiracy.  After the checks cleared, but before the financial institutions discovered the fraud, members of the conspiracy would withdraw money from those accounts for their personal gain, it is alleged.

Seven of the eight defendants were arrested today. Defendants Salermo, Ripes, Taylor, Castillo, and Cooper made their initial appearances today in federal magistrate court in Miami before Chief U.S. Magistrate Judge John J. O’Sullivan.  Defendants Escobar and Perez will make their initial appearances tomorrow at 10:00 a.m. before Judge O’Sullivan. 

Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office made the announcement.

HSI Miami investigated the case, with assistance from HSI Tampa, Miami Beach Police Department, Miami-Dade State Attorney’s Gang Strike Force, Miami-Dade Police Department, and City of Miami Police Department.

Assistant U.S. Attorney Kurt K. Lunkenheimer is prosecuting this case.  Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.

An indictment contains mere allegations and defendants are presumed innocent unless and until proven guilty in a court of law.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20491.

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14 Defendants Charged with Drug Trafficking Conspiracy and Related Crimes in Racine, Wisconsin, and Elsewhere

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Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on October 20, 2021, a federal indictment was unsealed that charged thirteen Racine-area individuals with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine, and 500 grams or more of cocaine base in the form of “crack” cocaine. 

The following individuals are charged in the indictment:

Name

Resident

GERARDO LARA, a.k.a. “MIGO,” a.k.a. “DINEROO,” (age 27)

Franksville, WI

SARAH A. BECKIUS (age 27)

Kenosha, WI

PLAZE E. ANDERSON (age 23)

Milwaukee, WI

JASMINE J. GONZALES (age 40)

Racine, WI

DEBRA J. URNESS (age 42)

Racine, WI

MARQUAN L. WASHINGTON, a.k.a. “MUNCH,” (age 30)

Racine, WI

MARIO M. JOHNSON, a.k.a. “RO,” a.k.a. “ROEGOTTI,” (age 33)

Racine, WI

ASHLEY M. WESTMORELAND (age 28)

Racine, WI

MICHAEL D. HARDIN, a.k.a. “MOJO,” (age 33)

Racine, WI

TERRY BRUMBY, JR., a.k.a. “T-NICE,” (age 32)

Racine, WI

CARL GRAYSON, a.k.a. “POPS,” (age 64)

Racine, WI

BRIAN L. PHILLIPS, a.k.a. “B,” a.k.a. “BRITTLE,” (age 33)

Racine, WI

MICHAEL A. WRIGHT, JR. (age 31)

Racine, WI

JERI L. BALDERAS (age 31)

Racine, WI

 

On the morning of October 20, 2021 , law enforcement personnel from the FBI, Racine Police Department, Racine County Sheriff’s Department, Mount Pleasant Police Department, Sturtevant Police Department, Caledonia Police Department, New Berlin Police Department, Milwaukee Police Department, the North Central HIDTA, Kenosha Police Department, Kenosha County Sheriff’s Department, and the Drug Enforcement Administration, with assistance from the United States Marshals Service, simultaneously arrested 12 defendants in the greater Racine and Kenosha areas as well as the State of Tennessee, and executed 18 federal search warrants.

The search warrants resulted in the recovery of multiple firearms and controlled substances.  Two defendants were already in custody.  According to court records, the majority of the individuals arrested in this operation are alleged to be members of the Vice Lord and Gangster Disciple street gangs, who worked together to further their drug trafficking organization. 

“The indictment in this case and today’s arrests demonstrate the joint commitment of federal, state, and local law enforcement to combat drug trafficking activity by gang members and violent offenders and to improve the quality of life of residents throughout the district,” stated Acting U.S. Attorney Frohling.

“We will continue to work collectively with all of our partners on the FBI Milwaukee Area Safe Streets Task Force (MASSTF),” said Special Agent in Charge Robert Hughes. “Utilizing joint resources creates the greatest impact in removing violent gangs, guns and drugs from our communities.”         

“This morning’s operation was the culmination of almost 12 months’ worth of investigative work between local, state and federal law enforcement officers to hold members of these two violent organizations accountable. The execution of arrest and search warrants was as close to flawless as any I’ve seen in my 19-year career,” said Racine Chief of Police Maurice A. Robinson. “It is important to note that the subjects named in the arrest warrants were taken into custody without any force being used. I am extremely grateful for all of the officers involved that made this such a successful operation.”

The investigation of this case was conducted by MASSTF, which is comprised of personnel from the FBI, Racine Police Department, Racine County Sheriff’s Office, the Mount Pleasant Police Department and Sturtevant Police Department.

If convicted of the drug trafficking conspiracy, each defendant faces a minimum of ten years’ imprisonment with a maximum of life, a $10,000,000 fine, and between five years and life on supervised release.   In addition, Balderas is charged with structuring a financial transaction to avoid a reporting requirement and faces a maximum of five years’ imprisonment if convicted of that charge.  This case is being prosecuted by Assistant United States Attorneys Katie Halopka-Ivery and Bridget J. Schoenborn.  

An indictment is only a charge and is not evidence of guilt.  All defendants are presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.

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For further information contact: Kenneth.Gales@usdoj.gov

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CEO Of East Bay-Based Internet Companies Marketing Child-Friendly Services Indicted On Wire Fraud And Securities Fraud Charges

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SAN FRANCISCO – A federal grand jury has indicted Alan Anderson, charging him with wire fraud and securities fraud charges related to a scheme to use materially false and fraudulent pretenses to induce investors to make contributions to three businesses that were marketed as providing child-friendly internet services, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. 

The indictment filed October 13, 2021, and unsealed today, describes how Anderson, 59, of Walnut Creek, used misrepresentations to solicit investments for the three businesses.  According to the indictment, Anderson owned and controlled Imbee, Inc., a Delaware corporation based in Walnut Creek marketed as a child-friendly social media platform; Fanlala, a California corporation marketed as a service providing internet-based music streaming for children; and Fruit Punch, a California corporation marketed as providing music-streaming service for children.  The indictment alleges that beginning as early as April of 2010 through May of 2019, Anderson raised money for his companies by making false representations and creating false documents to support his bogus claims.  For example, the indictment alleges Anderson created fraudulent income statements and profit and loss statements and misrepresented the companies’ profitability to investors and potential investors; that Anderson created and altered contracts to represent falsely that one or more of his companies would be acquired by larger companies; and that Anderson created and altered contracts to make fraudulent claims that his companies created partnerships with other existing companies.  In addition, the indictment describes how Anderson emailed an investor to falsely claim Imbee was worth $21.6 million and that the investor owned 70% of the company.    

In sum, the indictment charges Anderson with four counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of securities fraud, in violation of 15 U.S.C. §§ 78j(b) & 78ff and 17 C.F.R. 240.10b-5.  Anderson was arrested today in Walnut Creek.  He will make his initial federal court appearance tomorrow at 10:30a.m., before U.S. Magistrate Judge Thomas S. Hixson, in San Francisco. 

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.  If convicted, each count of wire fraud carries a maximum sentence of 20 years in prison and a maximum $250,000 fine. The securities fraud charge carries a maximum 20 years of imprisonment and a $5,000,000 fine.  In addition, the court also may order a term of supervised release, fines or other assessments, and restitution, if appropriate.  However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Assistant U.S. Attorneys Christiaan Highsmith and Scott Joiner of the Office’s Corporate and Securities Fraud Section are prosecuting this case with the assistance of Claudia Hyslop, Morgan Byrne and Ralph Banchstubbs.  This prosecution is the result of an investigation by the FBI. 


Owner of Construction and Building Inspection Businesses and Two Employees Charged with Tax Fraud

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NEW ORLEANS – TheU.S. Attorney’s Office and the Department of Justice’s Tax Division announced that RANDY A. FARRELL SR., and DAVID FARRELL, both of Jefferson Parish, and DAWN FARRELL RUIZ, of St. Tammany Parish, were charged in a superseding bill of information with conspiring to defraud the IRS.

According to court documents, from 2011 through at least June 2019, RANDY FARRELL, an owner of construction and building inspection businesses, and his two siblings and employees, DAVID FARRELL and DAWN FARRELL RUIZ, conspired to defraud the IRS by failing to report their full personal income to the IRS and by failing to withhold employment taxes from employees’ wages. RANDY FARRELL and Mathew Reck co-owned two construction businesses, SES Construction Consulting Group (“SES”) and Global Technical Solutions (“GTS”). As co-owners, RANDY FARRELL and Reck caused certain SES and GTS employees, including DAVID FARRELL and RUIZ, to be paid outside of the normal payroll process such that employment taxes were not withheld from their paychecks. The three defendants and others then caused SES and GTS to issue Forms W-2 to employees that fraudulently underreported their actual compensation. Since DAVID FARRELL and RUIZ were paid outside of the normal payroll process and received false Forms W-2, they were able to fraudulently avoid paying federal income and employment taxes on their salaries. Reck previously pled guilty to conspiring with these three defendants to defraud the IRS.

In addition to SES and GTS, RANDY FARRELL has also co-owned a building inspection business, IECI & Associates LLC (“IECI”), since 2007.  After the IRS executed a search warrant at RANDY FARRELL’s home and companies’ offices in September 2017, he filed tax returns that falsely underreported the taxable income he earned from his businesses.

If convicted of these charges, RANDY FARRELL, DAVID FARRELL, and RUIZ each faces up to five years in prison, followed by up to three years of supervised release, as well as a fine, restitution, and a $100 mandatory special assessment fee. A bill of information is merely a charge, and the guilt of the defendants must be proven beyond a reasonable doubt.

The Justice Department’s Tax Division and the United States Attorney’s Office for the Eastern District of Louisiana praised the work of IRS Criminal Investigation. Trial Attorneys William Montague and Parker Tobin of the Justice Department’s Tax Division and Assistant U.S. Attorney Nicholas Moses of the Eastern District of Louisiana are in charge of the prosecution.

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Stolen identity scheme sends Jordan man to prison

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BILLINGS — A Jordan man who admitted to stealing personal identifying information from family members and acquaintances to obtain credits cards to fund his life and a drug habit was sentenced today to 51 months in prison to be followed by three years of supervised release, Acting U.S. Attorney Leif M. Johnson said.

Eric Richard Morrow, 37, pleaded guilty in March to mail fraud and to aggravated identity theft.

U.S. District Judge Susan P. Watters presided. Judge Watters also ordered $61,188 restitution. Morrow was detained.

In court documents, the government alleged that from 2017 to 2020, Morrow assumed the identities of family members, a former employer and the former employer’s deceased wife, a former girlfriend and others who were acquainted with him by getting their personal identifying information and using it to open fraudulent credit card accounts. Morrow had access to the information because of his relationship to the various victims. Morrow then used the credit cards to buy goods and services around Montana, including in Billings, Laurel and Jordan, and to fund his drug habit. The scheme caused more than $50,000 in losses.

Assistant U.S. Attorney Colin M. Rubich prosecuted the case, which was investigated by the Billings Police Department and the U.S. Postal Service.

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Acting U.S. Attorney Gonzalez Encourages Idahoans to Participate in DEA’s National Prescription Drug Take Back Day This Saturday

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BOISE – Acting U.S. Attorney Rafael M. Gonzalez, Jr. wants to ensure that Idahoans are aware how to rid their homes of unused and unwanted medications.

With opioid overdose deaths increasing during the pandemic, the Drug Enforcement Administration (DEA) is holding its 21st National Prescription Drug Take Back Day this Saturday, October 23, 2021, at locations across the country, including 29 here in Idaho. The nationwide biannual event aims to addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse.

“Prescription medications often end up in the wrong hands, fueling an epidemic that kills more Americans than car accidents,” said Gonzalez. “DEA is providing an actionable way for our communities to step up and help combat this crisis by simply cleaning out their medicine cabinet. I urge Idahoans to do their part by going to a collection site and safely disposing of unused, expired, and dangerous prescriptions. DEA makes it easy for all of us and I thank them for organizing this biannual event.”

According to a report published by the Substance Abuse and Mental Health Services Administration (SAMHSA), a majority of people who misused a prescription medication obtained the medicine from a family member or friend. The Centers for Disease Control and Prevention reported that last year, more than 93,000 people died of drug overdoses in the United States, marking the largest number of drug-related deaths ever recorded in a year. Opioid-related deaths accounted for 75 percent of all overdose deaths in 2020.

For more than a decade, DEA’s National Prescription Drug Take Back Day has helped Americans easily rid their homes of unneeded medications—those that are old, unwanted, or no longer needed—that too often become a gateway to addiction. Working in close partnership with local law enforcement, Take Back Day has removed more than 7,000 tons of medication from circulation since its inception. These efforts are directly in line with DEA’s priority to combat the rise of overdoses plaguing the United States.

“The United States is in the midst of an opioid epidemic—drug overdoses are up thirty percent over the last year alone and taking more than 250 lives every day,” stated DEA Administrator Anne Milgram. “The majority of opioid addictions in America start with prescription pills found in medicine cabinets at home. What’s worse, criminal drug networks are exploiting the opioid crisis by making and falsely marketing deadly, fake pills as legitimate prescriptions, which are now flooding U.S. communities. One thing is clear: prevention starts at home. I urge Americans to do their part to prevent prescription pill misuse: simply take your unneeded medications to a local collection site. It’s simple, free, anonymous, and it can save a life.”

“The DEA Drug Take Back is more important than ever and is a great opportunity for citizens of Idaho to dispose of their unused, unwanted, or expired prescription medications,” said DEA Special Agent in Charge Frank Tarentino. “Properly disposing of these medications will prevent them from falling into the hands of our children. Please help keep our citizens and communities safe by taking the time to responsibly dispose of your unwanted prescription pills during National Drug Take Back Day.”

DEA’s National Prescription Drug Take Back Day is more important than ever before. Last month, DEA issued a Public Safety Alert and launched the One Pill Can Kill public awareness campaign to warn Americans of a surge in deadly, fake prescription pills driven by drug traffickers seeking to exploit the U.S. opioid epidemic and prescription pill misuse. Criminal drug networks are shipping chemicals from China to Mexico where they are converted to dangerous substances like fentanyl and methamphetamine and then pressed into pills. The end result—deadly, fake prescription pills—are what these criminal drug networks make and market to prey on Americans for profit. These fake, deadly pills are widely available and deadlier than ever. Fake pills are designed to appear nearly identical to legitimate prescriptions such as Oxycontin®, Percocet®, Vicodin®, Adderall®, Xanax® and other medicines. Criminal drug networks are selling these pills through social media, e-commerce, the dark web, and existing distribution networks.

Along with the alert came a warning that the only safe medications are ones prescribed by a trusted medical professional and dispensed by a licensed pharmacist. Any pills that do not meet this standard are unsafe and potentially deadly. DEA’s National Prescription Drug Take Back Day reflects DEA’s commitment to Americans’ safety and health, encouraging the public to remove unneeded medications from their homes as a measure of preventing medication misuse and opioid addiction from ever starting.

DEA and its partners will collect tablets, capsules, patches, and other solid forms of prescription drugs. Liquids (including intravenous solutions), syringes and other sharps, and illicit drugs will not be accepted. DEA will also continue to accept vaping devices and cartridges provided lithium batteries are removed.

A location finder and partner toolbox are available at www.DEATakeBack.com for easy reference to nearby collection sites. Beyond DEA’s Take Back Day, there are also opportunities to regularly and safely dispose of unneeded medications at more than 13,000 pharmacies, hospitals, police departments, and businesses working to help clean out medicine cabinets throughout the year.

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Mexican national sentenced to prison for using stolen identity to live, work in Billing community

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BILLINGS — A Mexican national who admitted to using personal information stolen from another individual to live and work in the Billings community for years was sentenced today to 51 months in prison to be followed by three years of supervised release, Acting U.S. Attorney Leif M. Johnson said.

Hugo Javier Quiroga, also known as Antonio Alatorre, 47, pleaded guilty in April to false representation of a Social Security number, false claim to United States citizenship and aggravated identity theft.

U.S. District Judge Susan P. Watters presided. Judge Watters also ordered $4,800 restitution.

The government alleged in court documents that in 2018, law enforcement began investigating a complaint from an individual named Antonio Alatorre, originally from Brownsville, Texas. The individual said his identification documents had been stolen in the 1990s and that he had encountered numerous problems from having his identity stolen. The individual told law enforcement that he had learned someone in Billings was using his identity.

Investigators determined that the individual in Billings was Quiroga, who went by the alias Antonio Alatorre, and that Quiroga had admitted to an ex-wife that he swam across the Rio Grande to enter the United States, lived in Brownsville, Texas, for a couple of years, and used the alias as a “work name.” Investigators determined that Quiroga was born in Matamoros, Mexico.

The government further alleged that Quiroga falsely used the victim’s personal identifying information to join the International Brotherhood of Boilermakers in Helena and was a union member from 2014 through 2018. Quiroga also worked for several other companies in Montana under the Alatorre name and falsely claimed that he was a United States citizen on one of the employment application forms.

Assistant U.S. Attorney Brendan McCarthy prosecuted the case, which was investigated by the FBI and Billings Police Department.

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Two Chicago Defendants Plead Guilty to Bank Fraud

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BOISE – Two Chicago women pleaded guilty to bank fraud.

According to court proceedings, Jakara B. Edwards, 23, and Tatyana A. Love, 21, both of Chicago, Illinois, traveled to Idaho with at least two co-defendants in May 2020. On May 6, 2020, Edwards and Love cashed counterfeit checks at different First Interstate Bank branches in the Treasure Valley. The counterfeit checks had the logo and business information for the company accountholder along with a forgery of the account owner’s signature. The checks were payable to Edwards and Love. Edwards and Love presented their Illinois identification cards to cash the counterfeit checks. Edwards and Love knowingly presented the counterfeit checks and provided false information to the bank, intending to defraud the financial institution. In addition to the checks in Idaho, Edwards and Love traveled with other named and unnamed co-conspirators to other states to cash counterfeit checks.

Edwards and Love are scheduled to be sentenced on January 6, 2022 and face a maximum penalty of 30 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Co-defendant Abbi L. Sullivan, 21, of Bloomington, Illinois, is scheduled for a change of plea on October 27, 2021.

Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Federal Bureau of Investigation, Ada County Sheriff's Office, Boise Police Department, Garden City Police Department, Meridian Police Department, Nampa Police Department, Chicago Police Department, Ellisville Police Department, Fort Atkinson Police Department, Gahanna Police Department, Johnson Creek Police Department, Montgomery Township Police Department, Normal Police Department, Peoria County Sheriff’s Office, Redwood City Police Department, San Mateo County Sheriff’s Office, Sioux Falls Police Department, Social Security Administration Office of the Inspector General, Stockton Police Department, Waltham Police Department, and Wellesley Police Department, which led to charges.

“The loss to these community banks would have been much greater if not for responsive bank employees who reported the crime and the cooperative investigative work by law enforcement agencies across the country,” said Mr. Gonzalez. “Committing fraud against a bank is not a victimless crime, and our office will not hesitate to prosecute individuals caught deceiving people or financial institutions for profit, especially those who travel to Idaho to commit nefarious acts.”

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Former Lawyer Agrees to Plead Guilty to Conning Clients via Sham Court Documents Containing Forged Judge Signatures

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          LOS ANGELES– A former California lawyer has agreed to plead guilty to a fraud charge, admitting he lied to clients about winning cases and deceiving them with bogus documents, some with the forged signatures of judges.

          Matthew Charles Elstein, 51, of Redondo Beach, agreed to plead guilty to one count of wire fraud in a plea agreement filed this afternoon in United States District Court. An arraignment in this case is scheduled for October 28.

          Elstein was a licensed California attorney from December 1994 until the State Bar of California ordered him inactive in March 2019. According to his plea agreement, from June 2015 to July 2018, Elstein engaged in a scheme to defraud his clients by claiming he obtained favorable legal resolutions for them, when in fact the favorable resolutions had never been obtained. In many cases, Elstein never initiated any legal action. Elstein also admitted to misappropriating funds by informing victims their fees were going into his client trust account, when in fact he directed them to deposit money into his personal bank account.

          For example, in June 2016, Elstein falsely informed a corporate client that it had won a $52 million default judgment. He emailed the victim-client a fake court order that contained a judge’s forged signature. Having never actually filed a lawsuit on his client’s behalf, Elstein further misrepresented that the case was improperly under seal due to a United States Department of Justice investigation. To further his fraudulent scheme, Elstein presented his clients with a fake settlement agreement between the client and the United States Attorney’s Office for the Eastern District of California. It was not until the company reached out to that United States Attorney’s Office to authenticate the settlement agreement that it discovered that the agreement was a forgery.

          Elstein also admitted to fabricating depositions in a federal case in Washington state in September 2015. Because these depositions were fake, no one appeared for them. Nonetheless, Elstein had a court stenographer present and made a formal record of the nonappearances. Elstein also billed the client for attending the fake depositions and his travel expenses to Seattle.

          Elstein also falsely told the victim that he had obtained a $4.25 million judgment in the victim’s favor and provided the victim with a fake court order containing the forged signature of a judge. When the victim traveled to Seattle to collect the judgment, he was informed by the court that no such case existed.

          In total, Elstein’s conduct resulted in losses of at least $358,855 to his victims.

          Upon entering his guilty plea in this case, Elstein will face a statutory maximum sentence of 20 years in federal prison.

          The FBI investigated this matter.

          Assistant United States Attorney Agustín D. Orozco of the Public Corruption and Civil Rights Section is prosecuting this case.

Imperial Beach Man Sentenced for Threatening and Tricking Young Girls into Sending Him Sexually Explicit Material

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Assistant U.S. Attorney Andrew Sherwood (619) 546-9690 or Assistant U.S. Attorney Mandy Griffith (619) 546-8970

NEWS RELEASE SUMMARY October 20, 2021

SAN DIEGO – Kevin Brito of Imperial Beach was sentenced in federal court today to 15 years in prison for deceiving girls as young as 10 into making and sending him sexually explicit photos and videos of themselves.

Brito pleaded guilty on April 19, 2021 to two counts of Enticement of a Minor, admitting that he systematically targeted young girls on social media by reaching out to them and pretending to be a 12- to 14-year-old boy or girl. This included messaging with over 200 minor females online.

Brito tricked many of the young girls into thinking he was their boyfriend and then coerced them into sending him sexually graphic photos and videos. Brito told his victims to make and send more sexually explicit material and directed exactly what he wanted them to do in the material. When his victims tried to refuse, he told them that if they didn’t do what he said, he would send all the explicit material to their friends and families. At times, he followed through on those threats. He told his victims that each was his “sex slave.”

When interviewed by FBI agents, Brito admitted to communicating with one of the minor victims, receiving nude images of her, and threatening her so he could get more images. He also admitted that he knew she was 10 years old and engaged in similar sexually explicit chats with other young girls. Further, Brito said that he saved some of the files he received from the girls and sent them out to other random people.

“These young girls have been traumatized by the despicable actions of this predator,” said Acting U.S. Attorney Randy Grossman. “We will do everything legally possible to achieve justice for children who are sexually exploited.” Grossman thanked prosecutors Andrew Sherwood and Mandy Griffith and the FBI agents for their excellent work on this case.

“Unfortunately, cases such as this involving an adult coercing young girls to create and send sexually explicit images are on the rise. The defendant victimized hundreds of minors from behind his computer screen believing he was invisible to law enforcement,” said FBI Special Agent in Charge Suzanne Turner. “The FBI will continue its exhaustive work of rooting out those who prey on the most vulnerable of victims online. This case is another example of the great collaborative work among law enforcement agencies to hold criminals accountable. I would like to specifically thank local law enforcement for identifying the subject and referring him to the FBI to enable us to put an end to the criminal conduct of this serial child predator.” 

Project Safe Childhood (PSC) is a nationwide federal initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. In the Southern District of California, the PSC Coordinator is assigned to the Violent Crimes & Human Trafficking Section.        

DEFENDANT                                               Criminal Case No. 21-CR-01479-DMS

Kevin Brito                                                     Age: 22, Imperial Beach, CA

SUMMARY OF CHARGE

Enticement of a Minor – Title 18, U.S.C., Section 2422(b)

Maximum penalty: Life in Prison; $250,000 fine

INVESTIGATING AGENCY

Federal Bureau of Investigation


DEA Announces 21st National Prescription Take Back Day

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United States Attorney SHAWN N. ANDERSON, for the Districts of Guam and the Northern Mariana Islands (NMI), will join the Drug Enforcement Administration (DEA) on Saturday, October  23rd for its 21st National Prescription Drug Take Back Day.  The biannual event will be held from     10:00 a.m. to 2:00 p.m., at thousands of collection sites around the country, including here in Guam and the NMI. This event offers free and anonymous disposal of unneeded medications at more than 4,000 local drop-off locations nationwide.

The United States is in the midst of an opioid epidemic—drug overdoses are up thirty percent over the last year alone and taking more than 250 lives every day. The majority of opioid addictions in America start with prescription pills found in medicine cabinets at home.

In April 2021, citizens of Guam and the NMI turned in over 1,565 pounds collectively.  According to the Centers for Disease Control and Prevention reported that last year, more than 93,000 people died of drug overdoses in the United States, marking the largest number of drug-related deaths ever recorded in a year. Opioid-related deaths accounted for 75 percent of all overdose deaths in 2020.

The following sites in Guam and the NMI are designated to receive unused prescription drugs and vaping device products on Saturday, October 23, 2021, between 10:00 a.m. and 2:00 p.m.:

  • Agana Shopping Center (Center Court)
  • Andersen Air Force Base Exchange (Entrance to Store)
  • Dededo Mayor’s Office
  • Malesso’ Mayor’s Office
  • Naval Base Guam - Navy Exchange (Food Court)
  • Saipan Commonwealth Health Center (Outpatient Pharmacy)
  • Rota Health Center
  • Tinian Health Center

Contact DEA Resident Agent in Charge Kenneth Bowman at 671-472-7384 regarding any questions about prescription drug abuse and any concerns regarding drug-related activity on Guam or in the NMI.

For more information, go to www.dea.gov, www.DEATakeBack.com

Former SE Polk High School Teacher Sentenced to 24 Years in Federal Prison for Sexually Exploiting Student

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DES MOINES, IA – On October 19, 2021, United States District Court Judge Stephanie M. Rose sentenced Abraham Christopher Smith, age 39, formerly of Pleasant Hill, to 288 months in prison for Enticement of a Minor announced Acting United States Attorney Richard D. Westphal. Smith pleaded guilty to the offense on June 10, 2021. Following completion of his prison term, Smith is required to register as a sex offender and will be on supervised release for ten additional years. Under federal law, Enticement of a Minor carries a mandatory minimum term of 10 years in prison and a maximum term of life in prison.

According to court documents, Smith was a full-time teacher at Southeast Polk High School for several years. Beginning by at least early October 2020 and continuing to on or about October 28, 2020, Smith used a cell phone and the internet to persuade, induce, and entice Minor Victim #1—a minor student at the school—to engage in sexual activity with Smith. Additionally, Smith used his own iPhone to record Minor Victim #1 engaging in sexual activity with Smith.

“A teacher sexually exploiting a student is a very serious crime. Students must be safe at school. Parents deserve to have confidence that educators to whom they entrust their children are not preying on them. This prosecution and sentence should send a message to any school staff member contemplating exploiting a minor that the consequences may be decades in prison,” said Acting United States Attorney Westphal.

This case was investigated by the Iowa DCI Internet Crimes Against Children Task Force, Altoona Police Department, Polk County Attorney’s Office, and the FBI Child Exploitation Task Force.

The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children.

Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.

COLLINSVILLE MAN SENTENCED FOR DISTRIBUTION OF METHAMPHETAMINE

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EAST ST. LOUIS, Ill. – Deonta J. Thomas, 29, of Collinsville, Illinois, was sentenced to 10 years 
imprisonment for distribution of methamphetamine on October 18, in federal court in East St. Louis.
Thomas previously pled guilty to this offense on May 20, 2021.   As part of his guilty plea, Thomas 
acknowledged   that   on   September   27,   2018,   he   sold   approximately   442   grams   of   
crystal methamphetamine to an individual at the Casino Queen in East St. Louis, Illinois, in 
exchange for $2,800.

In  addition  to  the  10-year  term  of  imprisonment,  Thomas  will  serve  a  3-year  term  of  
supervised release following his release from the Bureau of Prisons.   Thomas was also ordered to 
pay a fine of $500.

This case was investigated by the Drug Enforcement Administration.
Assistant United States Attorney Daniel T. Kapsak prosecuted the case.

Convicted Felon Sentenced to 87 Months Imprisonment for Illegal Possession of Firearms

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EAST ST. LOUIS, Ill. – A man from the Metro East will spend more than seven years in prison for 
illegally possessing firearms. Michael L. Dawson, 29, of East St. Louis, Illinois, was sentenced to 
87 months in federal prison for being a Felon in Possession of a Firearm.

The crime occurred in December of 2019 when the United States Marshals Service located Dawson at 
his residence in East St. Louis, Illinois, and arrested him on an active arrest warrant. Agents 
recovered a total of six different guns.   One of the weapons found was a semi-automatic rifle with 
a  high-capacity  magazine.  An  assortment  of  miscellaneous  ammunition  was  also  discovered 
during the search.     Federal law prohibits convicted felons from possessing firearms or firearm 
ammunition.   A federal grand jury indicted Dawson in January of 2020, and Dawson pled guilty on 
June 24, 2021.

As part of his sentence, Dawson will serve a three-year term of supervised release following his 
release from federal prison.

The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), 
the United States Marshals Service Great Lakes Regional Fugitive Task Force, and the Illinois State 
Police.
Assistant U.S. Attorneys Ali Burns and David Dean prosecuted the case.

Gulfport Man Pleads Guilty to Firearm Offense

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Gulfport, Miss. – A Gulfport man pled guilty today to being an unlawful user of a controlled substance in possession of a firearm, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration (“DEA”).

According to court records, on July 27, 2021, law enforcement officers observed Michael Anthony Hamilton, 27, engage in a drug transaction with another individual. Subsequent investigation revealed that Hamilton was in possession of a Taurus, 9mm handgun and oxycodone pills.  Hamilton  admitted to the habitual use of prescription medication and marijuana. 

Hamilton is scheduled to be sentenced on January 21, 2022. He faces a maximum sentence of ten years imprisonment.  A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

This case was investigated by the DEA and Gulfport Police Department, and prosecuted by Assistant U.S. Attorney Jonathan Buckner.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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