Category: Office of United States Attorneys

Source: Office of United States Attorneys

NEW ORLEANS – On February 5, 2024, United States District Judge Darrel James Papillion sentenced WARREN G. TREME (“TREME”), age 59, a resident of Metairie, announced U.S. Attorney Duane A. Evans. TREME previously pleaded guilty to bank fraud conspiracy for his role in the scheme that led to the downfall of First NBC Bank, the New Orleans-based bank that failed in April 2017.

TREME, who testified as a government witness at the January 2023 trial of former First NBC Bank President and CEO Ashton Ryan, was sentenced by Judge Papillion to 24 months in prison, followed by three years of supervised release, a $100 mandatory special assessment fee, as well as payment of $6,399,890.38 in restitution, to First NBC Bank’s successors. TREME is jointly and severally liable for the restitution amount with Ryan and William J. Burnell, the Bank’s Chief Credit Officer.

According to court documents, from in or around 2008 through April 2017, TREME had a banking relationship with First NBC Bank, individually and through various entities he controlled. TREME also co-owned several entities with  Ryan. Because of this conflict of interest, Ryan should not have been involved with TREME’s loans. However, Ryan exercised authority over TREME’s loans, along with Burnell. Throughout TREME’s borrowing relationship at First NBC Bank, TREME lacked sufficient income and cash flow from his businesses to pay his loans and personal expenses. Ryan and Burnell disguised TREME’s true financial condition by making new loans to pay TREME’s existing loans.

Court documents further describe a scheme by Ryan and Burnell to take $400,000 from TREME’s business partners as part of a settlement. Rather than using the $400,000 to pay down an outstanding loan debt owed by TREME and his business partners, Ryan and Burnell gave $300,000 to TREME. TREME spent the money on gambling, a trip to the Caribbean, and expenses related to a real estate development company co-owned by TREME and Ryan. During a subsequent Board meeting, Ryan and Burnell falsely stated that the $300,000 was used to pay down the outstanding loan debt owed by TREME and his business partners.

Ryan was sentenced to 170 months in prison for his role in this scheme, while Burnell was sentenced to 48 months in prison. Both Ryan and Burnell were sentenced by U.S. District Judge Eldon E. Fallon.

U.S. Attorney Evans praised the work of the agencies that conducted this years-long investigation: the Federal Bureau of Investigation – New Orleans Field Office; the Federal Deposit Insurance Corporation, Office of Inspector General, Dallas Regional Office; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General, Miami Field Office. Assistant U.S. Attorneys Matthew R. Payne of the Financial Crimes Unit, Nicholas D. Moses, Health Care Fraud Coordinator, J. Ryan McLaren of the Appellate Unit, and Rachal Cassagne of the Narcotics Unit, are in charge of the prosecution.

Source: Office of United States Attorneys

CHICAGO — A Chicago trader has been convicted of fraud for engaging in unauthorized speculative bond trading that cost his employer and others more than $30 million.

A jury in U.S. District Court in Chicago on Wednesday convicted KEITH WAKEFIELD, 50, of Chicago, on one count of securities fraud and three counts of wire fraud.  Each count is punishable by a maximum sentence of 20 years in federal prison.  U.S. District Judge Steven C. Seeger did not immediately set a sentencing date.

The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI.  The U.S. Securities and Exchange Commission, which filed a civil enforcement action against Wakefield, provided valuable assistance.  Assistant U.S. Attorneys Sean Franzblau and Bradley A. Tucker are prosecuting the criminal case.

According to evidence presented at trial, Wakefield worked as the head of fixed income trading for IFS Securities, Inc., a broker-dealer in Chicago.  In 2019, Wakefield knowingly and fraudulently engaged in unauthorized speculative trading in U.S. Treasury bonds using his employer’s trading accounts, causing more than $30 million in losses to the employer and its counterparties.  Wakefield attempted to conceal the unauthorized trades and losses by entering fake off-setting trades into a clearing broker’s order system, creating the false impression that he had profitably traded through a different clearing broker.

In addition to the fraudulent trading scheme, Wakefield from 2017 to 2019 embezzled hundreds of thousands of dollars from IFS Securities by falsifying the company’s books and records to create fake commissions that Wakefield knew were not actually owed to him.

Source: Office of United States Attorneys

BOSTON – Two New York men previously arrested and charged in December 2023 in connection with staging armed robberies in furtherance of a visa fraud conspiracy have been indicted by a federal grand jury in Boston, Mass.  

Rambhai Patel, 36, and Balwinder Singh, 39, were indicted on one count each of conspiracy to commit visa fraud. Patel was arrested in Seattle on Dec. 13, 2023 and remains detained pending trial. Singh was arrested in Queens, N.Y. on Dec. 13, 2023, and was released on conditions following an initial appearance on Dec. 28, 2023. 

According to the charging documents, starting in March 2023, Patel and his co-conspirators, including at times Singh, set up and carried out staged armed robberies of at least nine convenience/liquor stores and fast-food restaurants across the United States, including at least five in Massachusetts. It is alleged that the purpose of the staged robberies was to allow the clerks present to claim that they were victims of a violent crime on an application for U nonimmigration status (U Visa). A U Visa is available to victims of certain crimes who have suffered mental or physical abuse and who have been helpful to law enforcement in the investigation or prosecution of criminal activity.  

During the alleged staged robberies, the “robber” would threaten store clerks and/or owners with an apparent firearm before taking cash from the register and fleeing, while the interaction was captured on store surveillance video. The clerks and/or owners would then wait five or more minutes until the “robber” had escaped before calling police to report the “crime.”  The “victims” are alleged to have each paid Patel to participate in the scheme. One purported victim allegedly paid $20,000 to participate as a victim in one of the staged armed robberies. In turn, Patel allegedly paid the store owners for the use of their stores for the staged robbery.

It is alleged that at least two purported victim co-conspirators submitted U Visa applications based on being victims of the staged armed robberies. 

The charge of conspiracy to commit visa fraud provides for a sentence of up to five years in prison, three years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance in the investigation was provided by the U.S. Attorney’s Offices for the Eastern District of New York and the Western District of Washington; FBI’s New York and Seattle Field Offices; U.S. Citizenship and Immigration Services; Massachusetts State Police; Worcester County District Attorney’s Office; and the Hingham, Marshfield, Randolph, Weymouth, Worcester, Upper Darby, (Pa.), West Pittston (Pa.), Louisville, (Ky.) and Bean Station (Tenn.) Police Departments. Assistant U.S. Attorneys Elianna J. Nuzum and Jessica L. Soto of the Major Crimes Unit are prosecuting the case.

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

Source: Office of United States Attorneys

Richard Anthony Reyna Densmore, a/k/a “Rabid,” Claims Affiliation With Sadistic Child Abuse And Extortion Network

          GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that a federal grand jury returned an indictment charging Richard Anthony Reyna Densmore, 47, of Kaleva, with sexual exploitation of a child, conspiracy to sexually exploit a child, coercion and enticement, and possession of child pornography. Evidence introduced at the detention hearing alleged the defendant encouraged his victims to commit sadistic acts, i.e., acts of self-harm for the sexual gratification of the defendant.

          “As the allegations in this case demonstrate, the online threats to our children and teenagers evolve and grow every day,” said U.S. Attorney Mark Totten. “Perpetrators can reach kids anywhere, anytime, with devastating effects on our families and communities. My office will do everything in its power to stop this menace and I strongly urge parents, guardians, and anyone who uses a device to be aware and protect themselves.”

          Based on evidence presented at a February 5, 2024 detention hearing, the government alleged that Densmore, under the username “Rabid,” was involved in creating a chat room on Discord called “Sewer.” One purpose of the “Sewer” server was to stream minors engaging in self-harm and sexually explicit conduct. One example of such self-harm content is “cutting” or “fansigning,” in which someone writes or cuts, into their skin, another’s online username. The government alleges that Densmore was involved in soliciting minors to engage in such conduct and kept related images and videos on his phones.

          The sexual exploitation offenses each carry a sentence of between 15 and 30 years’ imprisonment. The coercion and enticement offense carries a sentence of 10 years to life in prison. Possession of child pornography carries a maximum sentence of 20 years’ imprisonment.      

          During the detention hearing, the government introduced evidence of Densmore’s affiliation with an online network called “764” and related subgroups. In September 2023, the FBI issued a public service announcement regarding these groups. According to the FBI, these groups target minors; particularly, marginalized children and children experiencing mental health challenges. Prospective members gain access to associated online platforms by livestreaming or uploading videos of minor victims engaging in self-harm and sexually explicit conduct, among other things. Group members use that content to extort additional self-harm and sexually explicit content from victims.

          “We would like to thank the Manistee County Sheriff’s Office and our partners on the FBI’s West Michigan Based Child Exploitation Task Force (WEBCHEX) for their efforts in working to stop further harm against our most vulnerable members of our society, our children,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “The FBI encourages families and caregivers to have open and honest conversations with the young people in their life about online exploitation and related risks, including web-based predators, identity thieves, cyberbullies, sextortion, and more. To report online child sexual exploitation, please use the electronic Cyber Tip Line or call 1-800-843-5678. The Cyber Tip Line is operated by the National Center for Missing and Exploited Children in partnership with the FBI and other law enforcement agencies.

          U.S. Attorney Mark Totten advised that parents should look for unexpected packages, as members of these abuse and extortion networks are known to send children razor blades, sexual devices, and other materials to use in creating online content. The FBI further advised the public to take a number of precautionary steps, including:

• Looking for fresh cuts, bruises, wounds, and scars in unusual patterns;
• Looking for sudden behavior and appearance changes;
• Being attentive to children wearing long sleeves or pants in unusual circumstances;
• Monitoring children’s online activity and discussing the risks of sharing information and content; and
• Running frequent online searches of family and children’s information to help identify and prevent the spread of personal information on the internet.

          If you are worried about someone who might be self-harming or is at risk of suicide, please consult a health care professional or call 911 in the event of an immediate, life-threatening emergency.

          The FBI is investigating this case and Assistant U.S. Attorney Adam Townshend is prosecuting it.

          The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.

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Source: Office of United States Attorneys

COVINGTON, Ky. – A Burlington, Ky., man, David L. Mitchell, 73, was sentenced on Thursday, by U.S. District Judge David Bunning, to 48 months in prison, for possession of child pornography.  He also was ordered to pay over $20,000 in victim restitution.

According to his plea agreement, on June 29, 2022, law enforcement travelled to Mitchell’s home and requested permission to enter his residence to discuss an investigation. During a consensual search of his home, law enforcement found a USB device and hard drive that Mitchell admitted contained pornographic material of minors, and he also admitted that he had accessed visual depictions of minors engaged in sexually explicit conduct in the past through the Internet. It was discovered the devices contained over 100 unique digital images and over 100 unique digital videos of minors, including minors under the age of 12, engaged in sexual conduct.

Under federal law, Mitchell must serve 85 percent of his prison sentence.  Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years. Mitchell was also ordered to pay $23,000 in victim restitution.  

Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI); jointly announced the sentence.

The investigation was conducted by HSI Northern Kentucky. Assistant U.S. Attorney Andrew Spievack is prosecuting the case on behalf of the United States.

The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

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Source: Office of United States Attorneys

LAREDO, Texas – A 28-year-old Laredo man is now in custody for allegedly sexually assaulting and violating the civil rights of two women, announced U.S. Attorney Alamdar S. Hamdani.

Hector Humberto Rodriguez Jr. is expected to make an initial appearance before U.S. Magistrate Judge Diana Song Quiroga at 1:30 p.m.

A federal grand jury returned the sealed five-count indictment Feb. 6, which was unsealed upon his arrest.

Rodriguez was a correctional officer with the Webb County Sheriff’s Department.

On two separate occasions, he allegedly deprived two women of their civil rights. While working in his law enforcement capacity, he forcibly sexually assaulted both women while they were housed as inmates at the Webb County Jail, according to the indictment.

If convicted, he faces up to life in prison as well as potential fines of $250,000 for each of the five counts in the indictment.

The FBI and Department of Justice – Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Brandon Scott Bowling and Leslie Ann Cortez are prosecuting the case.

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

Source: Office of United States Attorneys

            WASHINGTON — A New York man has been arrested on felony and misdemeanor charges related to his conduct during the breach of the U.S. Capitol on Jan. 6, 2021. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the 2020 presidential election.

            Christopher Douglas Finney, 32, of Hopewell Junction, New York, is charged in a criminal complaint filed in the District of Columbia with felony offenses of obstruction of an official proceeding and civil disorder.

            In addition to the felonies, Finney is charged with several misdemeanor offenses, including knowingly entering or remaining in any restricted building or grounds without lawful authority, disorderly and disruptive conduct in a restricted building or grounds, disorderly conduct in a Capitol building, act of physical violence in the Capitol grounds or buildings, and parading, demonstrating, or picketing in a Capitol building.

            Finney was arrested today by the FBI in Hopewell Junction and will make his initial appearance in the Southern District of New York.

            According to court documents, Finney traveled from his home in New York to Washington, D.C., to attend a rally on Jan. 6, 2021. Finney recorded himself near the Washington Monument and, in the recording, stated, “We’re gonna be going up to, where they’re – what’s the building where they’re doing the counting at?” Someone off camera replied, “the Capitol,” and Finney continued, “we’re going up to the Capitol, eventually. We’re gonna storm the Capitol. They’re not gonna keep us outta there. We’re gonna make sure that this is done correct and that Donald Trump is still our president.”

            At approximately 12:49 p.m., an open-source video captured Finney addressing a crowd through a megaphone while just outside the fenced boundary of the Capitol’s restricted area. Approximately four minutes after Finney appears, the video records an off-camera reaction to the first breach of the Capitol grounds. Following the first breach of the Capitol grounds, Finney recorded himself wearing a face mask printed with a skull and stating, “We’re storming the Capitol right now. We just broke over the fence. As you can see, we have many many many people, millions of people, storming the lawn right now to the Capitol building. We started tearing down the fence; this is all fence right here as you can see. We’re going in there. Let’s go.”

            Finney continued to record himself as he crossed the Capitol’s West Lawn and scaled a stone wall reinforced with snow fencing. He eventually made his way to the Inauguration scaffolding at the northwest corner of the Capitol’s West Front. Finney recorded himself entering the scaffolding and ascending the steps past a police line and bike rack barricades onto the Upper West Terrace and approaching the Senate Wing Doors.

            As he approached the Senate Wing Doors, Finney recorded himself stating, “Patriots, we have made it. We are where they are counting.” Finney entered the Capitol building via the Senate Wing Doors at 2:14 p.m. Finney then exited the building through a broken window next to the Senate Wing Doors but quickly reentered. After this second entry, Finney proceeded south, stopping in a conference room and then moving to the Crypt, where he declared in a video recording, “As you can see, we’re inside the Capitol right now.” From the Crypt, Finney made his way to the OAP corridor and exited the Capitol through a door on the east side of the building.

            After he exited the building, Finney made his way to the west side of the Capitol and arrived at the Lower West Terrace Tunnel. The Tunnel was created by the construction of a stage for the upcoming Presidential Inauguration and was the site of some of the most violent attacks against law enforcement on January 6th.

            Here, Finney joined with other rioters in a group push against the police line in the Tunnel. As the crowd pushed, another rioter threw an object emitting smoke at officers at the front of the Tunnel. As the entrance to the Tunnel filled with smoke, Finney retreated down the steps. At the bottom of the steps, Finney assisted other rioters in passing a long wooden pole up to the Tunnel entrance. Another rioter then tossed the pole at the police line. Finney recorded video footage as the crowd threw other objects at the police, a rioter jabbed at officers with a pole, and additional rioters beat officers with a bat and a riot shield.

            This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Southern District of New York.

            This case is being investigated by the FBI’s New York and Washington Field Offices. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

            In the 37 months since Jan. 6, 2021, more than 1,313 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 469 individuals charged with assaulting or impeding law enforcement, a felony. The investigation remains ongoing.

            Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

            A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: Office of United States Attorneys

HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Gilberto Rodriguez Jr., age 46, of Long Island, NY, was indicted by a federal grand jury on drug trafficking and firearms charges. 

According to U.S. Attorney Gerard M. Karam, the indictment alleges that between October 17, 2022 and March 20, 2023, Rodriguez distributed a quantity of fentanyl on three separate occasions, in York County.  The indictment further alleges on two separate occasions during that same time frame, Rodriguez distributed approximately 50 grams and more of methamphetamine. Finally, the indictment alleges that on March 20, 2023, Rodriguez possessed a quantity of fentanyl with the intent to distribute the controlled substance. 

The case was investigated by the York County Detective Bureau, along with the Federal Bureau of Investigation and the Pennsylvania State Police.  Special Assistant U.S. Attorney Mark Monroe is prosecuting the case.  

The maximum penalty for the offenses is life imprisonment, a life term of supervised release following imprisonment, and a $20,000,000 fine.  A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

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Source: Office of United States Attorneys

TULSA, Okla. – Today in federal court, Ray Alexander Villalba, 21, of Arizona, and Elijah Paul Titone, 25, of Muskogee plead guilty to Carjacking; Carrying and Using a Firearm During and in Relation to a Crime of Violence; Obstructing, Delaying, and Affecting Commerce by Robbery; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence.   

According to both plea agreements, on December 3, 2022, Villalba and Titone messaged a victim to meet up through a dating app. Villalba and Titone took guns, duct tape, and masks. They hid in bushes and when the victim arrived, they hit, bound, and blindfolded him. They forced the victim to turn over the keys to his vehicle.  Villalba drove, while Titone rode in the back with the victim. They threatened him and his family if he did not comply with their commands. Blindfolded and bound, the victim was forced out of the car where Villablba and Titone drove off. The victim was able to break the binding and walked home. He contacted the Tulsa Police Department and reported the vehicle stolen.

During a second incident on December 6, 2022, Villalba and Titone broke into a home in Broken Arrow wearing ski masks and carrying firearms. They threatened the victim in the home and demanded marijuana. The victim did not comply and Villalba hit him in the eye with his firearm. As a result, the victim lost sight in that eye. Before leaving the home, they took his cell phone and keys.

Villalba and Titone will remain in custody awaiting sentencing. They both face multiple term of imprisonment including up to life for the firearm offenses. At sentencing, the federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Bureau of Alcohol, Tobacco, Firearms and Explosives, Tulsa Police Department, and Broken Arrow Police Department conducted the investigation. Assistant U.S. Attorneys Kenneth Elmore and John Brasher are prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

Source: Office of United States Attorneys

MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Nehemiah Sample, 27, Trempealeau, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 2 years in federal prison for stealing firearms from a federal firearms licensee. Sample pleaded guilty to this charge on October 31, 2023.

On April 25, 2023, Sample and two other individuals broke into a gun store in Rockland, Wisconsin, and stole 41 firearms. Officers conducting surveillance later that day saw Sample driving a pickup truck and, when they tried to stop him, he fled. Officers later found the truck abandoned in La Crosse, Wisconsin, with three of the stolen handguns in a bag on the backseat. Sample fled to Arkansas, where he was found  in Lake Village trying to sell firearms out of his car. When Lake Village officers attempted to arrest Sample, he fled into a scrap yard. He was eventually taken into custody and officers found a handgun on him, one abandoned in the scrap yard, and five other firearms in his vehicle. All the firearms had been stolen from the Rockland gun store.

At sentencing Judge Conley said that Sample’s decision to sell these stolen guns on the street, including to felons, was an aggravating factor that required a significant sentence.

Codefendant Mackey K. Drake pled guilty to possessing firearms as a felon on January 17, 2024. He is scheduled for sentencing on April 3, 2024. The case against codefendant Robert E. Benson remains pending and he is presumed innocent unless and until he is found guilty.

The charge against Sample was the result of an investigation conducted by the La Crosse County Sheriff’s Office, the Lake Village, Arkansas, Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan handled the prosecution.

This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.