Grayson County Man Sentenced for Trafficking Methamphetamine

 SHERMAN, Texas – A Sherman, Texas, man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Anthony Wade Buford, 35, pleaded guilty on June 9, 2020, to conspiracy to distribute and possession with intent to distribute methamphetamine and was sentenced to 235 months in federal prison today by U.S. District Judge Amos L. Mazzant, III.

According to information presented in court, in the summer of 2019, Grayson County law enforcement agencies began investigating reports that a drug trafficking group operating in the area was receiving narcotics from a supplier in McKinney, Texas.  On August 22, 2019, a deputy with the Grayson County Sheriff’s Office initiated a traffic stop on a vehicle occupied by Buford and a search of the vehicle revealed 242.74 grams of pure methamphetamine and 13.1 grams of suspected black tar heroin. Officers were able to identify co-defendants Jeremy Wayne Helton, a resident of McKinney, as Buford’s source of supply. On August 28, 2019, task force investigators executed a search warrant at Helton’s residence, where they located co-defendant Kennen Depetris and seized 1.568 kilograms of pure methamphetamine, $12,000 cash; four handguns; 3.8 ounces of GHB, digital scales and assorted baggies for drug packaging, fake driver’s licenses; and a quantity of suspected heroin.

Investigators later identified co-defendant Benjamin Christopher Reyes, of Dallas, Texas, as Helton and Depetris’s source of supply. They immediately conducted a “buy-bust” operation on Reyes at Helton’s residence, where they seized an additional two kilograms of pure methamphetamine from him.  Further investigation led to the identification of the following additional members of the conspiracy, all of whom were indicted along with Reyes, Helton, Depetris and Buford, including:

• Mishay Gabriele McManigell of Sherman, Texas, who has pleaded guilty and was sentenced to 121 months in federal prison for her role in the conspiracy.
• Coty Allen Pipkin, of Sherman, Texas, who has pleaded guilty and was sentenced to 120 months in federal prison for his role in the conspiracy.
• Melysa Rae Sudderth, of Pottsboro, Texas, who has pleaded guilty and was sentenced to 70 months in federal prison for her role in the conspiracy.
• Stephen Keith Martin, of Sherman, Texas, who has pleaded guilty and was previously sentenced to 188 months in federal prison for his role in the conspiracy.
• Bridget Marie Dobrovolsky, of Durant, Oklahoma, who has pleaded guilty and was sentenced to 120 months in federal prison for her role in the conspiracy.

 

Two defendants, Reyes and Marlon Glenn Warren, II, of Denison, Texas have pleaded guilty and are awaiting sentencing. Helton previously pleaded guilty and received 210 months in federal prison for his role in the conspiracy. Depetris is currently awaiting trial.

This case was investigated by the Sherman, Denison, and Bells, Texas Police Departments; the Grayson County Sheriff’s Office; the Drug Enforcement Administration’s (DEA); and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is being prosecuted by Assistant United States Attorney Matthew T. Johnson.

Monongalia County man admits to fentanyl distribution

 CLARKSBURG, WEST VIRGINIA – Charles Clint Gaines, Jr., of Morgantown, West Virginia, has admitted to a drug charge, U.S. Attorney Bill Powell announced.

Gaines, 33, pled guilty today to one count of “Possession with Intent to Distribute Fentanyl.” Gaines admitted to having fentanyl in February 2020 in Monongalia County. 

Gaines faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.

U.S. Magistrate Judge Michael John Aloi presided.

Ten Jersey City Men Charged in Conspiracy to Burglarize More Than 40 Pharmacies

 NEWARK, N.J. – Ten Jersey City men have been charged for their roles in a pharmacy burglary conspiracy that victimized at least 40 pharmacies in northern New Jersey in a three-month span, Acting U.S. Attorney Rachael A. Honig announced today. 

Mohummad Simmons, 25, a/k/a “Mo Waps;” Tamir Brown, 27, a/k/a “Stragg;” Rico Phang, 19, a/k/a “Little Mil;” Deon Davis, 24, a/k/a “Dee;” Michael Simeus, 27, a/k/a Jerk;” David Booker, 28; Darrel Hicks, 25; Daquan Hart, 22, a/k/a “Day Day;” Jamiel French, 27, a/k/a “Money Mil;” and Tyriq Rembert, 28, all of Jersey City, New Jersey, are each charged by complaint with one count of conspiracy to commit burglary involving controlled substances. Simmons, Hart, and Rembert appeared by videoconference for their initial appearances before U.S. Magistrate Judge James B. Clark III on Jan. 22, 2021, and Hicks appeared today by videoconference for his initial appearance before U.S. Magistrate Judge Leda D. Wettre. Brown is in custody on related state charges. The remaining defendants are at large.

“The complaint charges that the defendants went on a crime spree throughout northern New Jersey, breaking into pharmacies and stealing dangerous controlled substances, including opioids,” Acting U.S. Attorney Honig said. “I applaud the Drug Enforcement Administration and our local law enforcement partners for responding quickly to identify these suspects so that they can be brought to justice.”

"The success of this investigation was the result of teamwork, the sharing of information between law enforcement agencies, and good, old-fashioned police work," Special Agent in Charge of the Drug Enforcement Administration’s New Jersey Division Susan A. Gibson said. “Those arrested thought they could get away with their crime wave of theft, but they will now face justice. The public should know that DEA and our law enforcement partners will always pursue those who choose to violate the law.”

According to documents filed in this case and statements made in court:

From Oct. 11, 2020, through Dec. 22, 2020, the defendants forcibly entered and burglarized, or attempted to burglarize, pharmacies throughout northern New Jersey. They typically wore dark clothing, facemasks, and gloves, and gained entry to the pharmacies by breaking windows or doors with a brick or a rock. They took various types of controlled substances and other prescription drugs for the purpose of redistribution. During these burglaries, several controlled substances were prioritized, including codeine, a Schedule II controlled substance, acetaminophen with codeine, a Schedule III controlled substance, and promethazine with codeine, a Schedule V controlled substance. Pharmacies were victimized in Secaucus, North Bergen, Linden, Guttenberg, Kenilworth, Madison, Short Hills, Iselin, Jersey City, West New York, North Arlington, and Lyndhurst.

For example, on Oct. 11, 2020, at approximately 4:40 a.m., Simmons, Phang and a conspirator forcibly entered a pharmacy in Secaucus and took promethazine with codeine, a Schedule V controlled substance, and were recorded on surveillance video. They fled the scene in a black Chevrolet Malibu registered to Simmons. Prior to the burglary, the Malibu approached the area of the burglary following a silver Pontiac Grand Prix. Immediately after the burglary, the Malibu departed the area following the Pontiac.

In another instance, on Nov. 6, 2020, at approximately 5:45 a.m., Simmons and Phang forcibly entered a pharmacy in Linden with the intent to steal controlled substances. Approximately one hour and fifteen minutes before the burglary, the two men had been the subjects of a motor vehicle stop in Union, New Jersey, while traveling in the Malibu. Surveillance video footage from the pharmacy in Linden showed Simmons and Phang wearing the same clothing that they were wearing during the body camera footage of the motor vehicle stop. The surveillance video also showed Simmons and Phang depart the area of the burglary in the Malibu.

The charge of conspiring to burglarize pharmacies carries a maximum penalty of 10 years in prison.

Acting U.S. Attorney Honig credited the Secaucus Police Department, under the direction of Chief Dennis Miller, with leading the investigation into this multi-jurisdictional burglary ring, along with special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson. She also thanked the Hudson County Prosecutor's Office, the Union County Prosecutor's Office, the Bergen County Prosecutor's Office, the Middlesex County Prosecutor's Office and the Jersey City, North Bergen, Harrison, Hillside, Elizabeth, Guttenberg, Kearny, North Arlington, Bernards Township, Maywood, Lyndhurst, Millburn, Linden, Woodbridge, Madison, West New York, Clifton, Parsippany, Roselle, Hoboken, Edison, Kenilworth, Highland Park, Belleville, Teaneck, and Bayonne police departments.

The case is being prosecuted by Desiree Grace Latzer, Deputy Chief of the Criminal Division, in Newark.

Man from Arizona sentenced to three years in federal prison for assault with a dangerous weapon in Indian Country

 ALBUQUERQUE, N.M. – Travis Clitso, 25, of Pinon, Arizona, was sentenced in federal court on Jan. 22 to three years and one month in prison for assault with a dangerous weapon in Indian Country. 

Clitso previously plead guilty on Oct. 8, 2020. According to his plea agreement, Clitso, an enrolled member of the Navajo Nation, admitted to hitchhiking near Cortez, Colorado, on Feb. 6, 2019. A driver picked up Clitso and agreed to give him a ride. They later stopped at a gas station in Shiprock, New Mexico, where Clitso pulled out a knife and stabbed the driver in the throat.  Clitso fled the scene, but police officers found and arrested him later the same day.  The driver suffered a large cut to his throat.  Emergency medical personnel flew him to Albuquerque for emergency treatment. He spent several days in the hospital for his injuries.     

            The Farmington office of the FBI and the Navajo Nation Department of Public Safety investigated this case. Assistant U.S. Attorney Thomas Aliberti prosecuted the case.

Former Baltimore Police Officer Sentenced to 14 Months in Federal Prison for Lying to Federal Law Enforcement Officer Regarding the Illegal Sale of Drugs Seized During a BPD Investigation

 Received $20,000 from the Sale of Three Kilograms of Cocaine Seized During a Drug Raid and Not Turned In as Evidence

Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced former Baltimore Police Officer Victor Rivera, age 48, of Nottingham, Maryland, to 14 months in federal prison, followed by two years of supervised release, for making false statements to a federal law enforcement officer in connection with a scheme to sell three kilograms of cocaine seized during a Baltimore Police Department investigation.  

The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.

Victor Rivera joined the Baltimore Police Department (BPD) on July 11, 1994 and November 21, 1999, respectively.  In February 2009, Rivera served on a squad with Ivo Louvado, W.J., C.J., P.G., and K.G., that was supervised by W.K. 

According to his plea agreement, prior to February 19, 2009, W.J. and C.J. told Rivera they had received information from a confidential informant about a large-scale narcotics trafficker operating out of a residence on the 1400 block of Ellamont Street, in Baltimore, Maryland.  On February 19, 2009, Rivera, Louvado, and other members of the squad were conducting surveillance at the residence of the alleged narcotics trafficker, T.M.  Rivera and another member of his squad, W.K., followed a car from that residence to a nearby school where Rivera saw the driver throw something into a trash container.  Once the driver left, Rivera and W.K. recovered the trash and found it to be empty kilogram drug wrappers.  During this time other officers claimed to have followed a second individual who left the residence and threw trash from the car window, which was found to contain cocaine residue.  Rivera and other officers remained at the house until W.J. and C.J. obtained a search warrant from a Baltimore City District Court judge. 

As detailed in his plea agreement, Rivera ultimately participated in the search of the residence.  While no drugs were found in the house, officers found car keys, including a key that had the ability to activate an alarm in a vehicle remotely.  A BPD officer activated the alarm and officers heard the alarm sound in a pickup truck that was parked nearby.  Louvado and other officers went to the pickup, where they found a significant quantity of cocaine under an opaque cover that was over the back of the pickup truck.  Rivera learned that drugs were found in the truck.  Louvado and other officers waited with the cocaine until a SWAT team arrived to provide protection during the transportation of the cocaine to BPD headquarters because it was such a large quantity.  In order to transport the cocaine from the scene to BPD headquarters, it was loaded into a BPD surveillance van driven by K.G.  After the cocaine was loaded into the surveillance van, Louvado and other officers followed the SWAT team to BPD headquarters to maintain chain-of-custody over the cocaine.  Forty-one kilograms of cocaine were turned in to the BPD’s Evidence Control Unit on February 20, 2009.  Later that day, a criminal complaint was filed in the United States District Court for the District of Maryland charging T.M. with possessing with intent to distribute five or more kilograms of cocaine.

Rivera, Louvado, and K.G., later discovered three additional kilograms of cocaine in the surveillance van that had been used to transport the cocaine to BPD.  These kilograms of cocaine had come from the seizure from T.M.’s pickup truck on February 19 and 20, 2009, but had not been turned in to the BPD on February 20, 2009.  Rather than turn this cocaine in to BPD, Rivera, Louvado, and K.G. agreed to sell the cocaine and split the proceeds from its sale. 

Rivera sold the cocaine to a confidential informant of his, who trafficked in cocaine.  The source sold the cocaine in Baltimore City.  Rivera received the proceeds of the sale from his source and then shared them with Louvado and K.G.  Ultimately, Rivera received $20,000 in drug proceeds from the sale of the cocaine seized from T.M.’s pickup truck that had not been turned in to BPD.

On March 1, 2017, seven members of the BPD’s Gun Trace Task Force were arrested on federal racketeering charges, including W.J.  Following the filing of charges, the FBI continued to investigate misconduct by members of the BPD. On November 1, 2019, Rivera agreed to participate in a voluntary interview with FBI task force officers (“TFOs”).  Rivera was told it was a crime to lie to the FBI TFOs interviewing him and he acknowledged he understood.  In that interview, Rivera made a number of false statements and material omissions.  An example being, the FBI TFO asking, “Did you ever hear of anybody taking any drugs or any money or anything like that from the incident?” to which Rivera replied, “No sir. No.”

Former Baltimore Police detective Ivo Louvado, age 47, of Bel Air, Maryland, pleaded guilty on November 6, 2020, to making false statements to federal agents.  No sentencing date has been set for Louvado.

United States Attorney Robert K. Hur commended the FBI for its work in the investigation.  Mr. Hur thanked Assistant U.S. Attorney Leo J. Wise, who prosecuted the case.

Broken Arrow Woman Pleads Guilty to Child Abuse and Assault with a Dangerous Weapon in Indian Country

 A woman pleaded guilty this morning after abusing and assaulting a Native American minor female while under the influence of alcohol, announced U.S. Attorney Trent Shores.

Jamie Lea Keahbone, 40, of Broken Arrow, pleaded guilty before Chief U.S. District Judge John E. Dowdell. Her sentencing is set for April 27, 2021.

“Jamie Keahbone was a real-life nightmare to her victim. Keahbone repeatedly punched a child, intentionally pressed an arm against the child’s neck until the child lost consciousness, poured water over the child’s face causing the child to struggle to breathe, and struck the child with a table lamp,” said U.S. Attorney Trent Shores. “I commend this victim for her courage in seeking help and applaud law enforcement for answering the call.”

In her written plea agreement, Keahbone admitted that she assaulted the girl on October 14, 2020.

The FBI and the Broken Arrow Police Department conducted the investigation. Assistant U.S. Attorney Chantelle Dial is prosecuting the case. Ms. Dial is a prosecutor from the U.S. Attorney’s Office in the Western District of Washington. She volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to the increased volume of cases since the Supreme Court’s ruling which stated the Creek Nation Reservation had never been officially disestablished by Congress. The United States and the Muscogee (Creek) Nation have jurisdiction of all cases that occur on the reservation involving Native American victims or defendants.

Everett, Washington, call center manager pleads guilty to defrauding homeowners

 Targeted homeowners facing foreclosure with false promises that his company could modify their mortgages

Seattle – The manager of an Everett, Washington, call center pleaded guilty today in U.S. District Court in Seattle to a conspiracy to defraud approximately 1,000 distressed homeowners facing foreclosure, announced U.S. Attorney Brian T. Moran.  EDWIN JOSUE HERRERA ROSALES aka “Josh Herrera,” 34 , pleaded guilty to one count of conspiracy to commit wire fraud in connection with his operation of call centers that operated under the names “Sound Solutions Group,” “Community Assistance Center,” and California-based “Sienna Support Network.”

HERRERA ROSALES and his co-conspirators sent solicitation mailers to distressed homeowners nationwide.  The mailers promised that HERRERA ROSALES’ organization could reduce homeowners’ mortgage debts and lower their monthly payments.  When homeowners called the call center, operators put the callers through a phony “underwriting” process and then told the callers that the company’s legal and underwriting staff had determined it could negotiate a favorable mortgage modification in exchange for an upfront fee of $3,000.  In fact, the call center had no legal or underwriting staff, and many of the homeowners did not receive the promised modifications. 

HERRERA ROSALES is scheduled for sentencing by U.S. District Judge John C. Coughenour on May 4, 2021.

According to records filed in the case, HERRERA ROSALES conspired with others based in Southern California to operate the scheme.  Each week the operation sent approximately 4,000 mailers to distressed homeowners across the country.  The mailers stated that that the homeowner had been “pre-approved” for a new government program, under which HERRERA ROSALES’s organization could negotiate a mortgage modification.  For example, one mailer said that HERRERA ROSALES’s organization could reduce a borrower’s loan balance by over $140,000 and could reduce the interest rate to 2%.  The mailers urged the homeowners to call the Everett call center for assistance.

HERRERA ROSALES oversaw a staff of call center operators.  When homeowners contacted the call center, HERRERA ROSALES directed the operators to follow a script designed to make it appear as if each caller’s mortgage was being reviewed by the company’s “underwriting” and “legal department” to make sure the homeowner qualified for the supposed federal program.  In fact, the call center had no legal staff or underwriting department.  Instead, operators were instructed simply to put each caller on hold for a pre-determined amount of time, to make it appear a review was underway.  The operator then would return to the line and tell each victim that he or she was one of the “very select few” who qualified for the program—but only if the homeowner paid the call center a $3,000 fee.  If the homeowner balked at the fee, the call center staff had another script with certain “hot button” statements to persuade them to sign the documents.  It is impermissible under federal regulations to charge upfront fees for mortgage modification services.

Once the contracts were signed, the call center submitted the homeowner’s paperwork to a California-based loan processing group, which made some minimal efforts to restructure the debt.  While a limited number of customers obtained a lower monthly payment, the vast majority had no change or, in some cases, a higher monthly payment.  The call center used a phony address, and operators used aliases to disguise their identities. 

Between March 2016 and May 2018, about 1,000 customers paid over $2.5 million to the various entities operated by HERRERA ROSALES.  After HERRERA ROSALES paid the expenses of the call centers and paid a share to his co-conspirators, he kept approximately $360,000.

Conspiracy to commit wire fraud is punishable by up to five years in prison.

The case is being investigated by the FBI.  The case is being prosecuted by Assistant United States Attorney Seth Wilkinson.

U.S. Attorney Announces Extradition Of Two Defendants In Multimillion-Dollar Text Messaging Consumer Fraud Scheme

 Indictment Alleges Scheme to Fraudulently Charge Hundreds of Thousands of Mobile Phone Customers for Text Messaging Services Without Their Knowledge or Consent

Audrey Strauss, the United States Attorney for the Southern District of New York, Ramsey E. Covington, the Acting Special Agent-in-Charge of the Boston Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that MICHAEL PEARSE, an Australian national, and YONGCHAO LIU, a/k/a “Kevin Liu,” a Chinese national, were extradited from Australia and arrived in the United States yesterday.  PEARSE and LIU were extradited on charges of conspiracy to commit wire fraud, wire fraud, aggravated identity theft, and, as to PEARSE, conspiracy to commit money laundering, stemming from the defendants’ participation in a scheme to charge mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages about topics such as horoscopes, celebrity gossip, and trivia facts, without the customers’ knowledge or consent – a practice that the defendants and their co-conspirators referred to as “auto-subscribing.”  The portion of the fraudulent scheme that PEARSE, LIU, and their co-conspirators orchestrated generated more than $50 million in proceeds for themselves.  PEARSE and LIU will be presented and arraigned today before U.S. Magistrate Judge Debra Freeman.  The case has been assigned to U.S. District Judge Analisa Torres.

Manhattan U.S. Attorney Audrey Strauss said:  “As alleged, Michael Pearse and Yongchao Liu played key roles in an international consumer fraud conspiracy that victimized hundreds of thousands of mobile phone customers to the tune of more than $50 million.  Thanks to IRS Criminal Investigation and the FBI, as well as our international partners, Pearse and Liu are now in the United States and facing serious charges in this District.”

IRS-CI Acting Special Agent in Charge Ramsey E. Covington said:  “Through a sophisticated text messaging scam, the defendants and their co-conspirators allegedly swindled more than $50 million in proceeds from hundreds of thousands of unwitting mobile customers.  Yesterday’s extraditions continue the pathway to justice for the staggering number of victims and financial losses accumulated as a result of this alleged scheme.  I applaud the collective efforts of the law enforcement agencies whose collaboration and coordination made the extraditions possible.”

FBI Assistant Director William F. Sweeney Jr. said:  “Pearse and Liu will finally face the consequences for the text messaging scheme they were charged with more than five years ago. Their extradition is a reminder that being out of our sight and out of our reach are two different things.”           

According to allegations in the Indictment[1], evidence presented at the trial of co-conspirator Darcy Wedd, and other public filings:

From in or about 2011 through in or about 2013, PEARSE, LIU, and their co-conspirators engaged in a multimillion-dollar scheme to defraud consumers by placing unauthorized charges for premium text messaging services on consumers’ cellular phone bills, through a practice known as auto-subscribing.

During the relevant time period, Lin Miao, a co-conspirator of PEARSE and LIU, operated a company called Tatto, which offered premium text messaging services – such as monthly horoscopes, celebrity gossip, and trivia facts – to mobile phone customers.  PEARSE and LIU worked for a company called Bullroarer, which was affiliated with Tatto.  PEARSE was the CEO of Bullroarer and LIU was a Java development engineer for Bullroarer.  Co-conspirator Darcy Wedd operated Mobile Messenger, a U.S. aggregation company in the mobile phone industry that served as a middleman between content providers such as Tatto and mobile phone carriers, and was responsible for assembling monthly charges incurred by a particular mobile phone customer for premium text messaging services and placing those charges on that customer’s cellular phone bill.

To carry out the scheme, co-conspirators at Tatto purchased large numbers of mobile phone numbers from co-conspirators at Mobile Messenger, who had access to those numbers by virtue of their employment.  PEARSE, LIU, and their co-conspirators then worked to have unsolicited text messages sent to these and other mobile phone numbers and to enroll those customers in premium text messaging services without their knowledge or consent.  PEARSE, LIU, and their co-conspirators also took steps to conceal the fraud scheme by making it appear as if the customers had, in fact, elected to purchase the text messaging services, when in truth they had not.

The consumers who received the unsolicited text messages typically ignored or deleted the messages, often believing them to be spam.  Regardless, the consumers were billed for the receipt of the messages, at a rate of $9.99 per month, through charges that typically appeared on the consumers’ cellular telephone bills in an abbreviated and confusing form, e.g., with billing descriptors such as “96633IQ16CALL8668611606” and “25184USBFIQMIG.”  The $9.99 charge recurred each month unless and until consumers noticed the charges and took action to unsubscribe.  Even then, consumers’ attempts to dispute the charges and obtain refunds from Tatto, Bullroarer, or other corporate affiliates of Tatto were often unsuccessful. 

After obtaining proceeds of the fraud scheme, PEARSE worked with other co-conspirators to launder the proceeds.  PEARSE and his co-conspirators distributed the proceeds of the fraud scheme among themselves and others involved in the scheme by, among other things, causing funds to be transferred through the bank accounts of a series of shell companies and companies held in the names of third parties.  This was done in order to conceal the nature and source of the payments and PEARSE’s and his co-conspirators’ participation in the fraud.

Through their successful orchestration of this fraud scheme, which affected hundreds of thousands of consumers, PEARSE, LIU, and their co-conspirators generated more than $50 million in fraud proceeds for themselves.

*                *                *

PEARSE, 52, and LIU, 33, are each charged with one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. §§ 1343 and 1349, which carries a maximum penalty of 20 years in prison; one count of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2, which also carries a maximum penalty of 20 years in prison; and one count of aggravated identity theft, in violation of 18 U.S.C. §§ 1028A and 2, which carries a mandatory sentence of two years in prison, consecutive to any other sentence imposed.  In addition, PEARSE is charged with one count of conspiracy to commit money laundering, in violation of 18 U.S.C. §§ 1956(a)(1)(B)(i), 1957, and 1956(h), which carries a maximum sentence of 20 years in prison.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Ms. Strauss praised the outstanding investigative work of IRS-CI and the FBI.  In addition, Ms. Strauss thanked law enforcement partners in Australia, particularly the International Crime Cooperation Central Authority, Australian Federal Police, and the New South Wales Police Force, as well as the U.S. Department of Justice’s Office of International Affairs, for their support and assistance with the defendants’ extraditions. 

The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant U.S. Attorneys Jilan Kamal and Olga Zverovich are in charge of the prosecution. 

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

 

Internal Revenue Service Agent Charged with Identity Theft and Wire Fraud

 Federal Agent Allegedly Misappropriated a Suspect’s Identity to Create False Identification Documents and Submitted Forged Documents to Purchase a Manhattan Co-op Apartment

A 10-count indictment was unsealed today in federal court in Brooklyn charging Bryan Cho, also known as “Yong Hee Cho,” with possession of a fake foreign passport; aggravated identity theft; making false statements during a background check and wire fraud in connection with the purchase of a side co-op apartment.  Cho was arrested this morning and is scheduled to be arraigned via videoconference this afternoon before United States Chief Magistrate Judge Cheryl L. Pollak.

Seth D. DuCharme, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA), announced the charges.

“As alleged, the defendant repeatedly betrayed the trust placed in him as a federal law enforcement officer to further his own schemes by misusing information to which he had access by virtue of his official assignments,” stated Acting United States Attorney DuCharme.  “Today’s charges show that no one is above the law, and that this Office’s remains committed to rooting out corruption wherever it lurks.” 

“The public places a great deal of trust in those who carry a shield, but when sworn federal officers use this as a free pass instead of a badge of honor, things go awry. As alleged, that’s what happened in this case when Cho used, to his benefit, proprietary information belonging to an individual he once investigated as part of his official duties. Today’s charges are a reminder that no one is beyond the reach of our corruption laws,” stated FBI Assistant Director-in-Charge Sweeney.

“The Treasury Inspector General for Tax Administration aggressively investigates Internal Revenue Service employees who violate the public’s trust,” stated Treasury Inspector General George.  “Our mission at TIGTA is to protect the integrity of our Nation’s system of tax administration.  We are committed to working with our law enforcement partners to ensure those who endeavor to corrupt Federal tax administration are prosecuted to the fullest extent of the law.  I would like to thank the U.S. Department of Justice and the Federal Bureau of Investigation for their support in this effort.”

As set forth in the indictment, Cho has been employed as a Special Agent with Internal Revenue Service Criminal Investigation since 2008.  During the course of his employment, Cho worked on an investigation through which he obtained identifying information for an individual described in the indictment as “John Doe.”  The investigation was eventually closed, but Cho retained items he obtained during the investigation and used John Doe’s identifying information to create false identification documents and open a corporate entity overseas in John Doe’s name.  The fraudulent documents included purported identification cards for the Philippines and the Republic of Marshall Islands in the name of John Doe, but bearing photos of the defendant, and a purported passport in the name of John Doe for the Republic of Guinea-Bissau. 

Cho later made false statements during a background investigation, including denying that he possessed any foreign identification documents.  Cho also denied any contacts with foreign officials even though law enforcement from the Republic of South Korea had communications with him regarding allegations that South Korean government personnel had paid bribes to the defendant in exchange for information about ongoing U.S. criminal investigations.  Cho also submitted multiple false documents in connection with the purchase of a co-op apartment on the Upper East Side of Manhattan, including forged tax returns and bank statements that inflated his income and assets to secure the co-op board’s approval for the purchase, and funneled hundreds of thousands of dollars from a foreign bank account associated with an entity the defendant created using John Doe’s identity to fund the purchase.     

If convicted of the top count, wire fraud, Cho faces up to 20 years’ imprisonment.  The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.

The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Elizabeth Geddes and Turner Buford are in charge of the prosecution.

The Defendant:

BRYAN CHO (also known as “Yong Hee Cho”)
Age: 49 
New York, N.Y.

E.D.N.Y. Docket No. 21-CR-40 (AMD)

Claypool Man Sentenced To Over 24 Years In Prison For Receipt of Child Pornography

 SOUTH BEND – Kenneth Hyatt, age 53, of Claypool, Indiana was sentenced today by United States District Court Judge Damon R. Leichty upon his guilty plea to receipt of child pornography, announced Acting U.S. Attorney Bell. 

Mr. Hyatt was sentenced to 293 months in prison followed by 10 years of supervised release and ordered to pay $14,930.00 restitution.

According to documents filed in this case, Hyatt uploaded 65 images of child pornography to his Dropbox account.  These images along with others depicted children under the age of 12 participating in bondage or sadistic conduct.  In addition, Hyatt possessed at least 143 total images of child pornography. Six months before committing the instant offense, Hyatt was released from prison for a state conviction of possession of child pornography.

This case was investigated by the Department of Homeland Security Investigations and the Indiana State Police.  This case was prosecuted by Assistant U.S. Attorney John M. Maciejczyk.

Human Trafficking Has No Home in the Eastern District of Texas

BEAUMONT, Texas – January is Human Trafficking Awareness month.  Each year, law enforcement and service providers reaffirm their commitment to eradicating human trafficking in all forms.  Acting United States Attorney Nicholas J. Ganjei is issuing a number of messages to educate the public about human trafficking and, importantly, to dispel many myths and misconceptions about trafficking. 

           “Human trafficking is modern-day slavery,” said Acting United States Attorney Ganjei.  “We proudly partner with federal, state, and local law enforcement, as well as the remarkable men and women who work with victims, to bring traffickers to justice.  Those who exploit other human beings for personal gain have no safe harbor in the Eastern District of Texas.”

           Often associated only with sex trafficking, “human trafficking” also includes labor trafficking and indentured servitude.  Moreover, trafficking offenses occur in every city and region.  It is also a common misconception that individuals are kidnapped or forced into trafficking by strangers.  Most victims of human trafficking actually know their trafficker and are enticed by promises of good jobs, easy money, a comfortable life, new opportunities, or even the affection of their trafficker.  Traffickers do not fit one particular profile.  They can be men or women and are from all races, ethnicities, and socio-economic backgrounds.

           Acting United States Attorney Ganjei urges the public to assist.  “Because these crimes are often unreported, the public plays a valuable role in helping law enforcement to combat human trafficking.  Each day, people unwittingly come into contact with victims of trafficking.  From ride share drivers, to beauty service providers, to grocery or convenience store workers, we see these hidden victims.”  Acting U.S. Attorney Ganjei added, “It us up to all of us to end this terrible practice.  If you see something, say something.  Please contact law enforcement or the National Human Trafficking Hotline if you suspect human trafficking.”

           If you are currently the victim of sex trafficking, labor trafficking, or indentured servitude, or if you suspect someone else is being victimized, please contact the National Human Trafficking Hotline at 888-373-7888 (voice), “BeFree” or 233733 (text), or https://polarisproject.org.

Burlington County Man Admits Interfering with Law Enforcement Officers During Civil Disorder

 TRENTON, N.J. – A Burlington County, New Jersey, man today admitted attempting to interfere with law enforcement officers during a civil disorder when he attempted to set fire to a police vehicle during a riot in the City of Trenton, Acting U.S. Attorney Rachael A. Honig announced.

Killian F. Melecio, 20, of Columbus, New Jersey, pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce.

According to documents filed in this case and statements made in court:

On May 31, 2020, large-scale protests were held throughout the United States, including in Trenton, in response to the death of George Floyd. Although the May 31st protest in Trenton was peaceful earlier in the day, violence erupted later. A group of individuals proceeded down East State Street in downtown Trenton and began to riot, smashing store fronts, looting stores, and attacking multiple marked Trenton Police Department vehicles parked on the 100 Block of East State Street.

A City of Trenton street camera and other video footage taken by an individual present on the street captured Kadeem Dockery light an explosive device and throw it through the open front driver’s side window of a Trenton Police Department vehicle. Dockery then removed his shirt and handed it to Melecio, who then attempted to stuff the shirt in the gas tank of the police vehicle and ignite it. Melecio was then assisted by Justin Spry in attempting to set fire to the police vehicle. Law enforcement officers on scene arrested Spry, but Melecio and Dockery fled. Law enforcement later identified Melecio and Dockery through analysis of street camera and other video footage. They were arrested on Aug. 5, 2020.

The charge of attempting to interfere with law enforcement officers during a civil order carries a maximum penalty of five years in prison and a maximum fine of $250,000. Scheduling is scheduled for May 26, 2021.

Acting U.S. Attorney Honig credited special agents of the FBI and task force officers of the Joint Terrorism Task Force in Newark, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea. She also thanked officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and officers of the New Jersey Department of Corrections, under the direction of Commissioner Marcus O. Hicks, for their assistance.

The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.

The charges and allegations remaining against Kadeem Dockery and Justin Spry are merely accusations, and they are presumed innocent unless and until proven guilty.

Serial Armed Robber Sentenced to 20 Years in Federal Prison

 A man who robbed a series of money remitter businesses in Tulsa and Glenpool was sentenced today in federal court, announced U.S. Attorney Trent Shores.

U.S. District Judge John F. Heil III sentenced Justus Edward Murphy, 23, of Tulsa, to 20 years in federal prison followed by three years of supervised release. Murphy was further ordered to pay restitution representing the businesses’ losses, totaling $9,680.40.

“Justus Murphy was a brazen serial robber. He put innocent lives in danger when he used a gun to threaten employees in five of his six robberies,” said U.S. Attorney Trent Shores. “This prosecution was successful because of the coordinated efforts of three law enforcement entities: the Tulsa Police Department, Glenpool Police Department, and the FBI. Then, Assistant U.S. Attorney Eric Johnston adeptly represented the interests of the United States in securing this conviction. I applaud the 20-year sentence handed down by Judge Heil today in federal court. Justice has been served.”

Murphy previously pleaded guilty to six counts of robbery and two counts of carrying, using, and brandishing a firearm during and in relation to a crime of violence. Murphy robbed six money remitter businesses including Check ‘n Go, Approved Cash, Advance America, and Check Into Cash. Murphy entered the businesses, asking employees about obtaining loans. In most of the robberies, he handed employees threatening notes, claiming he would harm them if they did not hand over cash from the businesses’ money drawers. In five of the six robberies he threatened employees with a pistol. Examples of the messages were “120 Seconds $5,000 OR I will Shoot U!  IF U DO ANYTHING NOT NORMAL YOU’RE DEAD.” and “IF I HEAR SIRENS, YOU AND ME DEAD! YOU HAVE 220 SECONDS TO GET $5,000.”

The Tulsa Police Department, Glenpool Police Department and FBI conducted the investigation. Assistant U.S. Attorney Eric O. Johnston prosecuted the case, which came to the U.S. Attorney's Office as a result of the Supreme Court’s McGirt decision.

Litchfield Man Pleads Guilty to Fentanyl Trafficking

            CONCORD - Richard Black, 23, of Litchfield, pleaded guilty in federal court on Monday to distributing fentanyl and possessing fentanyl with intent to distribute, United States Attorney Scott W. Murray announced today.

           According to court documents and statements made in court, in May, 2019 Nashua police learned that Black was distributing fentanyl in the Nashua area.  Between June 27, 2019 and July 18, 2019, an undercover officer made four purchases of fentanyl from Black.  After his arrest on July 22, 2019, officers searched Black’s residence pursuant to a warrant and recovered additional fentanyl.  Officers seized approximately 200 grams of fentanyl from the undercover purchases, the search of Black’s person incident to his arrest, and the search of Black’s residence.   

           Black is scheduled to be sentenced on May 12, 2021.

           “Fentanyl is a deadly drug that has caused substantial damage to Nashua and communities throughout our state,” said U.S. Attorney Murray.  “Through Operation SOS, we are fighting back against the fentanyl dealers.  We will continue to work closely with the Nashua Police Department and our other law enforcement partners to identify and prosecute fentanyl traffickers who are doing business in the Granite State.”

            This matter was investigated by the Nashua Police Department.  The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.

            This case is part of Operation Synthetic Opioid Surge (S.O.S.).  In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts.  The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids.   In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.

Cryptocurrency Trader Charged In Manhattan Federal Court With Fraudulent Scheme Involving Over $5 Million

 AUDREY STRAUSS, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a Complaint in Manhattan federal court charging JEREMY SPENCE, a/k/a “Coin Signals,” a cryptocurrency trader who solicited funds for various cryptocurrency funds that he operated, with commodities fraud and wire fraud offenses.  As alleged, SPENCE took cryptocurrency worth over $5 million from more than 170 individual investors after making false representations in connection with these cryptocurrency funds. SPENCE was arrested this morning in Rhode Island and will be presented later today before Magistrate Judge Patricia A. Sullivan in the U.S. District Court for the District of Rhode Island.

Manhattan U.S. Attorney Audrey Strauss said:  “Jeremy Spence, a/k/a, ‘Coin Signals,’ allegedly lured investors  to his cryptocurrency investment scam by touting returns of up to 148%.  Spence’s investments not only failed to reach his audacious claims, they consistently lost money, leaving a $5 million void in his clients’ crypto accounts. Spence’s alleged conduct should strongly signal would-be investors to thoroughly educate themselves in the cryptocurrency ecosystem before falling prey to investment scams promising huge returns for small investments that are indeed too good to be true.”

FBI Assistant Director-in-Charge Sweeney said:  “As alleged, Jeremy Spence misrepresented the success of his investment platform in order to entice people to send money his way. Because his trading was less than profitable and significantly less successful than he represented to investors, he used money from new investors to pay off others in order to keep his plan moving—a  typical marker of a Ponzi scheme. Whether investing with cash, shares, or virtual currency, our advice to investors always remains the same—exercise due diligence, and when something just doesn’t seem right, report suspicious activity to the authorities.”

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

From November 2017 through April 2019, SPENCE solicited investors in various cryptocurrency investment pools that SPENCE had created and managed (the “Funds”). SPENCE solicited investments for several Funds, the largest and most active of which were the Coin Signals Bitmex Fund, a/k/a the “CS Mex Fund,” the Coin Signals Alternative Fund, a/k/a the “CS Alt Fund,” and the Coin Signals Long Term Fund. Investors who wanted to participate in a Fund would transfer cryptocurrency, such as Bitcoin and Ethereum, to SPENCE in order for SPENCE to invest it. 

SPENCE solicited these investments through false representations, including that SPENCE’s crypto trading had been extremely profitable when, in fact, SPENCE’s trading had been consistently unprofitable.  For example, on January 28, 2018, SPENCE posted a message in an online chat group falsely claiming that his trading of investor funds over the past month had generated a return of more than 148%. As a result of this misrepresentation, investors transferred additional funds to SPENCE. In fact, over that same period of approximately one month, SPENCE’s trading resulted in net losses in the accounts in which he traded investor funds.

To forestall redemptions by investors, and to continue to raise money from investors to fund his scheme, SPENCE generated fictitious account balances, which he made available to investors online. Instead of accurately reporting the trading losses SPENCE was incurring, the account balances falsely indicated to investors that they were making money by investing with SPENCE. To hide his trading losses, SPENCE used new investor funds to pay back other investors in a Ponzi-like fashion. In total, SPENCE distributed cryptocurrency worth approximately $2 million to investors substantially from funds previously deposited by other investors. 

*                      *                      *

SPENCE, 24, of Bristol, Rhode Island, is charged with one count of commodities fraud, which carries a maximum sentence of 10 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison.  The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.

Ms. Strauss praised the investigative work of the Federal Bureau of Investigation and also thanked the Commodity Futures Trading Commission for its assistance. 

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

 

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[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.

Claremont Man Sentenced to 37 Months for Drug Trafficking

            CONCORD - Jonathan Santiago-Perez, 35, of Claremont, was sentenced to 37 months in federal prison for drug trafficking on Monday, United States Attorney Scott W. Murray announced today.

            According to court documents and statements made in court, on three occasions between January and April of 2019, an individual who was cooperating with law enforcement officers purchased crack cocaine from Santiago-Perez. 

            Santiago-Perez previously pleaded guilty on February 20, 2020.  

           “Drug trafficking is a serious offense that undermines public health and safety,” said U.S. Attorney Murray.  “In order to safeguard our citizens, we will continue to work closely with our law enforcement partners to identify and prosecute the dealers who sell dangerous drugs in the Granite State.”

            This matter was investigated by the Drug Enforcement Administration offices in New Hampshire as well as Springfield and Burlington, Vermont, with assistance from the New Hampshire State Police, Massachusetts State Police, United States Postal Inspection Service, New Hampshire Attorney General’s Drug Task Force, Vermont State Police Drug Task Force, Manchester Police Department, Claremont Police Department, Lebanon Police Department, Hartford, Vermont Police Department, and the Hampden County, Massachusetts Narcotics Task Force.   The case was prosecuted by Assistant U.S. Attorney Anna Krasinski.

Two Men Plead Guilty To Arson Of Target Corporation Headquarters

 United States Attorney Erica H. MacDonald today announced the guilty pleas of SHADOR TOMMIE CORTEZ JACKSON, 24, and LEROY LEMONTE PERRY WILLIAMS, 34, to one count each of conspiracy to commit arson of the Target Corporation’s corporate headquarters building located at 1000 Nicollet Mall, Minneapolis, Minnesota. JACKSON and WILLIAMS are scheduled to be sentenced on May 4 and May 18, 2021, respectively, before Judge Patrick J. Schiltz in U.S. District Court in Minneapolis.

According to the defendants’ guilty pleas and documents filed with the court, on Wednesday, August 26, 2020, Minneapolis experienced arson, rioting, and looting following the suicide of a suspect in a homicide, and in response to false rumors surrounding the man’s death. JACKSON, WILLIAMS, and their co-defendant, VICTOR DEVON EDWARDS, 31, went to the Target Corporation’s corporate headquarters building (“Target Corporation building”) where dozens of other people had gathered. JACKSON used a construction sign to break through one of the glass doors into the Target Corporation building. JACKSON, WILLIAMS, and EDWARDS, along with others, breached the doors and entered the Target Corporation building. Once inside, JACKSON, aided and abetted by EDWARDS, intentionally set a fire on a counter inside the mailroom. JACKSON attempted to light a second fire in the mailroom on top of cardboard boxes using a lighter and a bottle of ignitable liquid. JACKSON, WILLIAMS, EDWARDS, along with identified and unidentified others, then ran out of the building using the same door. WILLIAMS subsequently re-entered the building and attempted to light a fire inside the building entrance before leaving the scene. 

This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Minneapolis Fire Department, and the Minneapolis, Bloomington, and Richfield Police Departments.

This case is being prosecuted by Assistant United States Attorney Chelsea A. Walcker.

Defendant Information:

SHADOR TOMMIE CORTEZ JACKSON, 24

Richfield, Minn.

Convicted:

• Conspiracy to commit arson, 1 count

 

LEROY LEMONTE PERRY WILLIAMS, 34

Minneapolis, Minn.

Convicted:

• Conspiracy to commit arson, 1 count
  

Fayetteville Woman Sentenced To Over 17 Years In Federal Prison For Drug Trafficking

 Fayetteville, Arkansas – David Clay Fowlkes, Acting United States Attorney for the Western District of Arkansas, announced today that Donna Sara Daosavanh, age 33, was sentenced to 210 months in federal prison without the possibility of parole followed by five years of supervised release on one count of Distribution of Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing today in the United States District Court in Fayetteville.

Detectives with the Fourth Judicial District Drug Task Force (4^th JDDTF) identified Daosavanh as a source of supply for methamphetamine in Northwest Arkansas.  On March 6, 2020, detectives with the 4th JDDTF, operating in an undercover capacity, purchased a half-pound of suspected methamphetamine from Daosavanh.

The 227g of suspected methamphetamine purchased from Daosavanh was subsequently sent to the DEA laboratory in Miami and was determined to contain 180.1 grams of pure methamphetamine.

Daosavanh was indicted by a federal grand jury in August of 2020 and entered a guilty plea in October of 2020.  Daosavanh had previously been convicted in 2012 in the Western District of Arkansas of Aiding and Abetting in the Distribution of Methamphetamine.

This case was investigated by the 4^th Judicial District Drug Task Force.  Assistant United States Attorney Aaron Jennen prosecuted the case for the Western District of Arkansas.

Former elementary teacher imprisoned for explicit sexual conversations originating via Craigslist

 CORPUS CHRISTI, Texas – A 28-year-old Odom man has been ordered to federal prison after he admitted to transferring obscene materials to a minor, announced U.S. Attorney Ryan K. Patrick.

Lazaro Benito Rocha pleaded guilty Oct. 22, 2020.

Today, U.S. District Judge David S. Morales found Rocha to be in a position of trust and varied above the guideline range which resulted in a 36-month federal prison sentence. At the hearing, the court heard additional information, including details regarding the sexually explicit communications Rocha had with someone he believed to be a 14-year-old girl living in Corpus Christi. In handing down the sentence, Judge Morales noted Rocha was a teacher when he sent the text messages and photographs and that he took photographs of himself while he was inside his classroom.

At the conclusion of the hearing, the court asked Rocha whether he believed he had a problem with his sexual interests in children. Rocha responded with “I believe so.”

Rocha was further ordered to serve three years on supervised release following his incarceration during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the internet. He will also be ordered to register as a sex offender.

“Today’s sentencing is the result of outstanding collaboration between Homeland Security Investigations (HSI), the Corpus Christi Police Department’s (CCPD) Internet Crimes Against Children Task Force (ICAC) and the Texas Department of Public Safety (DPS),” said Brad Scott, assistant special agent in charge, HSI Corpus Christi. “Working together we were able to identify this child predator and remove him from his position of trust where he had access to minors.”

At part of his plea, Rocha admitted that he had responded to an ad on Craigslist advertising a “good time” with a teenage girl. He continued communicating with whom he thought was a 14-year-old female which soon escalated into conversations of an explicit sexual nature via text messaging.  

Using his cell phone, he eventually sent a photograph of his genitals.

The investigation revealed he was a part-time elementary music teacher at the Incarnate Word Academy in Corpus Christi.

Previously released on bond, Rocha was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

HIS, CCPD-ICAC and DPS conducted the investigation.

Assistant U.S. Attorney Sara Popejoy prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources tab on that page.  

Cypriot hacker pleads guilty to extorting website operators with stolen user data

 ATLANTA – Joshua Polloso Epifaniou, a Cypriot national, has pleaded guilty to accessing multiple major websites based in the United States without authorization, stealing user data, and demanding that the website operators pay a ransom to prevent his release of the data. Epifaniou is the first Cypriot national to be extradited from Cyprus to the United States.

“Epifaniou hacked into U.S.-based websites and threatened the disclosure of stolen personal information belonging to users, unless the websites paid him large ransoms,” said Acting U.S. Attorney Bobby L. Christine. “His arrest, extradition, and conviction demonstrate our resolve to bring to justice any hackers, no matter where they reside.”

“This conviction represents the determination of FBI investigators to hold cyber criminals accountable for extorting U.S. companies and citizens no matter where they may be hiding,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “However, the successful prosecution of this case would not have been possible without the help of our federal and foreign partners, including the government of Cyprus.”

According to Acting U.S. Attorney Christine, the charges and other information presented in court: Between at least October 2014 and November 2016, Epifaniou was a teenage hacker in Cyprus who searched website traffic rankings to identify potential targets of his extortion scheme. After selecting targets, Epifaniou worked with co-conspirators to steal personally identifiable information from user and customer databases at victim websites. Epifaniou stole the sensitive information either by directly exploiting a security vulnerability at the websites or by obtaining a portion of the victim website’s user data from a co-conspirator who had hacked into the victim network. Once the personally identifiable information was obtained, Epifaniou used proxy servers located in foreign countries to log into online email accounts and send messages to the victim websites threatening to leak the sensitive data unless a ransom was paid in cryptocurrency. 

During his scheme, Epifaniou’s victims included:

• An online sports news website owned by Turner Broadcasting System Inc. in Atlanta, Georgia;
• A free online game publisher based in Irvine, California;
• A hardware company based in New York, New York;
• An online employment website headquartered in Innsbrook, Virginia;
• A consumer report website headquartered in Phoenix, Arizona.

Prior to the plea, Epifaniou paid nearly $600,000 in restitution to the victims, and Epifaniou agreed to forfeit an additional $389,113 and nearly 70,000 euros to the government in his plea agreement.

On September 19, 2017, Joshua Polloso Epifaniou, 21, of Nicosia, Cyprus, was indicted on one count of wire fraud conspiracy, two counts of wire fraud, one count of computer fraud conspiracy, and one count of extortion related to a protected computer. In addition, Epifaniou pleaded guilty to one count of computer fraud in a 24-count indictment transferred from the District of Arizona for purposes of his plea.

Sentencing is scheduled for March 3, 2021, at 10:00 a.m., before U.S. District Judge Mark H. Cohen.

This case is being investigated by the Federal Bureau of Investigation. Foreign law enforcement partners also made significant contributions to the investigation, including the exceptional support and cooperation provided by the Office for Combating Cybercrime of the Cyprus Police. Valuable assistance also was provided by the Criminal Division’s Office of International Affairs and the U.S. Attorney’s Office for the District of Arizona.

Assistant U.S. Attorney Nathan P. Kitchens, Chief of the Public Integrity and Special Matters Section, is prosecuting the case.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.  The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.