Category: Office of United States Attorneys

Source: Office of United States Attorneys

PHOENIX, Ariz. – David Allen Harbour, 50, of Scottsdale, was sentenced on Tuesday by United States District Judge Douglas L. Rayes, to eight years in prison. After a five-week trial, a jury convicted Harbour of crimes involving wire fraud and transactional money laundering on March 2, 2023. On March 7, 2023, Harbour also pleaded guilty to tax evasion, agreeing that he evaded more than $4 million in taxes.

According to the evidence introduced at trial, Harbour acted as a self-styled investment advisor and defrauded numerous investors between 2007 and 2021. Harbour misrepresented the nature of the various investments and omitted material facts. The total loss to investors exceeded $8 million. Harbour diverted money to pay for a lavish lifestyle including numerous private country club memberships, expensive jewelry, multimillion dollar vacation residences, private jet travel, speed boats, luxury vehicles, and extravagant parties that included a private concert at his 40^th birthday party by the 1970’s rock band the Eagles. Some of these items were seized by the government during the investigation, including a Patek Philippe watch, a Rolex watch, gold and diamond jewelry, and two country club memberships. The proceeds from these items will be used towards partial restitution for the victims. At sentencing, the judge specifically increased Harbour’s sentence for his efforts at tampering with witnesses prior to trial by paying or attempting to pay them off in exchange for not testifying against him.

“The defendant will have eight years in federal prison to reflect on his long-term pattern of deception,” said U.S. Attorney Gary Restaino. “Justice for the victims continues, as we work to determine the final amount of restitution, and to use the forfeited assets to restore some of the losses.”

“This eight-year prison sentence stands as a reminder that IRS CI will diligently investigate and hold accountable those who seek to defraud the American public,” said IRS CI Phoenix Field Office Acting Special Agent in Charge Carissa Messick. “And, by teaming with our federal partners, we will continue to aggressively investigate corruption at every level.”

“This sentence sends a clear message that those who commit financial fraud will be held accountable,” said FBI Phoenix Special Agent in Charge Akil Davis. “Investors should expect nothing less than complete candor and truth from their investment advisors. The FBI and our agency partners will continue to identify, investigate and pursue those who perpetrate criminal schemes for their own profit.”

This case was investigated by the Internal Revenue Service (IRS)-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Kevin M. Rapp and Coleen Schoch, District of Arizona, Phoenix, handled the prosecution.
 

CASE NUMBER:           CR-19-00898-PHX-DLR
RELEASE NUMBER:    2024-113_Harbour

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

Source: Office of United States Attorneys

ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, Jason T. Stevens, Acting Special Agent in Charge of Homeland Security Investigations – El Paso, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Roberto Esquivel pled guilty to one count each of attempted murder of an officer of the United States, aggravated assault of an officer of the United States with a deadly weapon, discharge of a firearm in furtherance of a crime of violence, and conspiracy to transport illegal aliens. Esquivel, 25, of El Paso, Texas, will remain in custody pending sentencing, which has not been scheduled.

A federal grand jury indicted Esquivel on April 19, 2023. In his plea agreement, Esquivel admitted that on Jan. 5, 2023, he agreed with other persons to transport five illegal aliens who had unlawfully come to the United States. Esquivel was to pick up the aliens in El Paso, Texas, and transport them to Deming, New Mexico. After picking up the aliens, Esquivel was driving on New Mexico State Road 146 when he was pulled over by a Border Patrol Agent. As the agent was approaching Esquivel’s vehicle to conduct an immigration inspection, Esquivel removed a gun from the center console and placed it under his right leg. When it became apparent to the agent that Esquivel was transporting aliens, he asked Esquivel to exit the vehicle. Instead, Esquivel partially opened the door and began shooting, hitting the agent twice in the torso-area. After shooting the agent, Esquivel sped off. While fleeing, Esquivel lost control of the vehicle and rolled it multiple times. Esquivel ran from the crash scene and threw the gun in the desert, where it was subsequently recovered by law enforcement officers.

The Border Patrol Agent survived the shooting due in large part to the bullets striking his ballistic vest. None of the illegal aliens were seriously injured in the rollover.

Per the terms of his plea agreement, Esquivel is facing 19 years in prison.

Homeland Security Investigations and the Las Cruces Resident Agency of the FBI Albuquerque Field Office investigated this case. Assistant U.S. Attorney Christopher S. McNair is prosecuting the case.

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24-46

Source: Office of United States Attorneys

NEW ORLEANS, LOUISIANA –TOI SMITH, age 26, a resident of New Orleans, pled guilty on January 30, 2024 to theft of mail by a postal employee, in violation of Title 18, United States Code, Section 1709, announced U.S. Attorney Duane A. Evans.  SMITH’S sentencing is set for May 14, 2024.

SMITH faces up to five years imprisonment, up to a $250,000 fine, up to 3 years of supervised release, and a $100 mandatory special assessment fee.  On or about July 2022, SMITH stole first class letters entrusted to her as a postal carrier and removed credit cards contained in the mail. 

The case was investigated by the United States Postal Service, Office of the Inspector General. Assistant United States Attorney Mary Katherine Kaufman of the General Crimes Unit is in charge of the prosecution.

Source: Office of United States Attorneys

OKLAHOMA CITY – United States Attorney Robert J. Troester, Anand Ramlall, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), and David Thompson, Special Agent in Charge of the United States Secret Service (USSS) Oklahoma City Field Office, are warning the public of a new scam utilizing fake court documents, fake government correspondence, and false charges under COVID relief programs to solicit “preemptive bail” payments. 

With this scam, imposters pose as law enforcement officers and send text messages to a target recipient.  These messages may include images of fake federal court documents that falsely assert criminal fraud charges against the recipient arising from the Paycheck Protection Program and/or the Coronavirus Aid, Relief, and Economic Security (CARES) Act.  The fake federal court notice may also advise the target that they can avoid arrest by paying “preemptive bail bond.”

In addition to fake federal court documents, the scam may involve images of fake correspondence from the FDIC OIG and FDIC Legal Division which purports to explain the “preemptive bail opportunity.”

The public is reminded that if you receive any communication purportedly from the U.S. Attorney’s Office, the FDIC OIG, or the federal court asking for sensitive personal information, or demanding payment through gift cards, wire transfers, or digital currency – DO NOT TRANSMIT MONEY OR SHARE PERSONAL INFORMATION.  Instead, the public is encouraged to contact the appropriate authorities with the information below..

“These fraudsters utilize fear and pressure tactics to create a sense of urgency in their victims and often prey on the most vulnerable in our society,” said U.S. Attorney Robert Troester. “If you are contacted by someone who demands payment or private information, do not engage. Instead, report the incident to law enforcement.” 

“Scammers such as these may use the FDIC or FDIC OIG logo and seal to make their demand for funds appear legitimate” said FDIC OIG Special Agent in Charge Anand Ramlall. “The FDIC OIG reminds the public that the FDIC and FDIC OIG will not send unsolicited correspondence that requests sensitive personal information or demands payment through gift cards, wire transfers, or digital currency. Such correspondence should be reported to the FDIC OIG hotline.”

“Criminals constantly find ways to use technology and communication platforms to commit fraud.  The Secret Service is at the forefront of both combating financial fraud and educating the public about financial fraud,” said USSS Oklahoma City Field Office Special Agent in Charge David Thompson. “Please contact the Secret Service if you are a victim of a scam or if you have information regarding such scams.”

If you have been a victim of a related scams or would like additional information on identifying similar scams and how to report them, please refer to the following:

• United States Secret Service Oklahoma City Field Office at 405-272-0630 or visit the U.S. Secret Service website at https://www.secretservice.gov/.   

• United States Attorney’s Office for the Western District of Oklahoma at 405-553-8700.

Source: Office of United States Attorneys

A federal jury in Washington, D.C., convicted a Kenyan national yesterday for perpetrating an advance fee and investment fraud scheme that defrauded numerous victims.

According to court documents and evidence presented at trial, Paul Maucha, 58, who resides in Washington, D.C., along with a co‑conspirator, engaged in a scheme through a shell company Maucha controlled, American Eagle Services Group Inc. (AESG), to make numerous misrepresentations to victims about AESG, its assets, and its access to money and capital.

In particular, Maucha — through AESG — promised victims who were seeking loans that AESG would provide them with these loans, so long as victims first provided AESG with an advanced fee while misrepresenting the purpose of that fee. AESG also told victims falsely that these advance fees could be refunded if AESG did not fund the loan. As proven at trial, however, Maucha and his co-conspirator knew that AESG did not have the capital to make these loans at the time the lending agreements were executed, and refunds to victims could not be assured because Maucha and his co-conspirator were splitting the fees between themselves and spending them, such that there was no money left to be refunded.

The jury convicted Maucha of one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of engaging in monetary transactions in criminally derived property. He is scheduled to be sentenced on May 16, and faces a maximum penalty of 20 years in prison for each of the conspiracy and wire fraud counts and 10 years in prison for each count of engaging in monetary transactions in criminally derived property. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, and Special Agent in Charge Keri Farley of the FBI Atlanta Field Office made the announcement.

The FBI investigated the case, with substantial assistance from Homeland Security Investigations.

Trial Attorneys Tian Huang and Tamara Livshiz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christine M. Macey for the District of Columbia are prosecuting the case.  Assistant Chief William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Joshua S. Rothstein for the District of Columbia previously provided valuable assistance in the investigation.

Source: Office of United States Attorneys

            WASHINGTON – A Tennessee man pleaded guilty yesterday to a felony charge for his actions 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.

            Devin McNulty, 28, of Loudon, Tenn., pleaded guilty in the District of Columbia to one count of assaulting, resisting, or impeding certain officers. The sentencing hearing is scheduled for June 28, 2024.

            According to court documents, on Jan. 6, 2021, McNulty was first seen among the crowd at the west front of the Capitol building. From there, McNulty scaled the retaining wall to reach the Upper West Terrace of the U.S. Capitol. In surveillance footage, McNulty, with his distinctive long curly hair, can be seen walking from the west side of the U.S. Capitol to the north side at 2:52 p.m. McNulty then followed the terrace around to the north door of U.S. Capitol, where a large group of rioters gathered and attempted to breach into the building.

            As McNulty approached the north door, he appeared to be affected by a chemical irritant, causing him to turn back to the crowd. Later, video footage shows an alarm coming from the Capitol building as well as loud music in the crowd. Eventually, some law enforcement officers moved between the rioters and the north door. One officer told the rioters, “Get back, everyone get back.” The rioters demanded that the officer let them into the Capitol building. The same officer responded, “I can’t do that.” McNulty was visible to the right of the officer.

            Later, additional law enforcement officers arrived to clear the terrace of the rioters. McNulty stood in front of the line of officers and violently pushed against one officer’s riot shield multiple times over the course of several seconds. The officer, a member of the Prince George’s County Police Department, was interviewed about the incident after January 6. The officer claimed to distinctly remember the interaction with McNulty as aggressive and persistent. The officer explained that McNulty tried to gain control of their shields and that the officers had to exert increasingly more effort to counter McNulty’s force.

            McNulty was arrested in Atlanta on June 13, 2023.

            This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia. Valuable assistance was provided by the U.S. Attorney’s Office for the Eastern District of Tennessee.

            This case is being investigated by the FBI’s Knoxville and Washington Field Offices, which identified McNulty as #485 on its seeking information photos. Valuable assistance was provided by the U.S. Capitol Police and the Metropolitan Police Department.

            In the 36 months since Jan. 6, 2021, more than 1,265 individuals have been charged in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 440 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.

Source: Office of United States Attorneys

DAVENPORT, Iowa – A Davenport man was sentenced today, Thursday, February 1, 2024, to 210 months in federal prison for distribution and receipt of child pornography.

According to public court documents at the time of his plea, Benji Clark Engesser, Jr., 23, was identified by law enforcement when a parent reported that they found their minor child exchanging sexual pictures with an adult. The phone number associated with the adult was traced to Engesser. During the execution of a search warrant of Engesser, Engesser’s phone was seized. Law enforcement forensically evaluated Engesser’s phone and uncovered images and videos of child sexual abuse material, that had both been received and distributed from Engesser’s phone.

After completing his term of imprisonment, Engesser will be required to serve ten years of supervised release. There is no parole in the federal system.

United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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 https://www.justice.gov/psc. / For information about internet safety education, please visit www.usdoj.gov/psc and click on the resources tab.

Source: Office of United States Attorneys

DAVENPORT, Iowa – A Burlington man was sentenced on January 24, 2024, to 96 months in federal prison for possessing a firearm as a felon.

According to public court documents and evidence presented at sentencing, Brandon Allen Haynes, 32, was arrested for possessing a loaded pistol and loaded magazines as a felon, after a standoff with law enforcement, in Des Moines County, on December 15, 2022. Haynes had previously been convicted in state court of two felony charges, which bars him from possessing a firearm.

After completing his term of imprisonment, Haynes will be required to serve three years of supervised release. There is no parole in the federal system.

United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Des Moines County Sheriff’s Office, the Burlington Police Department, and the West Burlington Police Department.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

Source: Office of United States Attorneys

CLEVELAND – Rebecca C. Lutzko, United States Attorney for the Northern District of Ohio announced today that a federal grand jury sitting in Cleveland returned a twenty-two count indictment charging two Cleveland area brothers with multiple fraud and money laundering schemes.

Zubair Mehmet Abdur Razzaq Al Zubair, 41, recently of Bratenahl, Ohio, and his brother Muzzammil Muhammad Al Zubair, 30, recently of Pepper Pike, Ohio, face one count of conspiracy to commit wire fraud, 14 counts of wire fraud, one count of conspiracy to engage in money laundering, four counts of money laundering, and one count of theft of government funds. Zubair Al Zubair also faces one count of harboring a fugitive.

The indictment charges that from June 2020 through August 2023, the Al Zubair brothers engaged in multiple schemes, including an investment fraud scheme, a Small Business Administration COVID-19 relief Emergency Income Disaster Loan scheme, a cryptocurrency mining scheme, a commercial real estate lease scheme, and a residential real estate lease scheme. According to the facts alleged in the indictment, the Al Zubair brothers obtained funds and property from victims under false pretenses and spent the proceeds on luxury items, such as cars, travel, entertainment, firearms, and jewelry. They allegedly falsely claimed to have extraordinary wealth and government connections. Zubair Al Zubair also allegedly falsely claimed to be married to a princess and to be a member of a royal family in the United Arab Emirates. The defendants also allegedly made false claims about potential investments returns, about property they owned or controlled, and about their intentions, among other falsehoods alleged in the indictment. Through these false claims, the Al Zubair brothers allegedly obtained millions of dollars from their victims. In addition to the fraud and money laundering charges, Zubair Al Zubair is also charged with providing a place to stay and transportation to a fugitive wanted on federal criminal charges.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.

The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Matthew W. Shepherd.

Source: Office of United States Attorneys

            WASHINGTON – Paul Maucha, 58, a Kenyan national, was found guilty today of perpetrating an advance fee and investment scheme that defrauded numerous victims.

            The jury verdict, in U.S. District Court for the District of Columbia, was announced by U.S. Attorney Matthew M. Graves, Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, and FBI Special Agent in Charge Keri Farley of the FBI Atlanta Field Office.

            According to court documents and evidence presented at trial, Maucha, along with a co-conspirator, engaged in a scheme through a shell company Maucha controlled, American Eagle Services Group Inc. (AESG), to make numerous misrepresentations to victims about AESG, its assets, and its access to money and capital.

            In particular, Maucha—through AESG—promised victims who were seeking loans that AESG would provide them with these loans, so long as victims first provided AESG with an advanced fee while misrepresenting the purpose of that fee. AESG also told victims falsely that these advance fees could be refunded if AESG did not fund the loan. As proven at trial, however, Maucha and his co-conspirator knew that AESG did not have the capital to make these loans at the time the lending agreements were executed, and refunds to victims could not be assured because Maucha and his co-conspirator were splitting the fees between themselves and spending them, such that there was no money left to be refunded.

            The jury convicted Maucha of one count of conspiracy to commit wire fraud, two counts of wire fraud, and one count of engaging in monetary transactions in criminally derived property. He is scheduled to be sentenced on May 16, 2024, and faces a maximum penalty of 20 years in prison for each of the conspiracy and wire fraud counts and 10 years in prison for each count of engaging in monetary transactions in criminally derived property. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

            Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Matthew M. Graves for the District of Columbia, and Special Agent in Charge Keri Farley of the FBI Atlanta Field Office made the announcement.

            The FBI investigated the case, with substantial assistance from Homeland Security Investigations.

            Trial Attorneys Tian Huang and Tamara Livshiz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christine M. Macey for the District of Columbia are prosecuting the case.  Assistant Chief William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Joshua S. Rothstein for the District of Columbia previously provided valuable assistance in the investigation.