Category: Office of United States Attorneys

Source: Office of United States Attorneys

GREENSBORO –A Greensboro man pleaded guilty today to multiple firearms charges including one count of unlawfully dealing in firearms, one count of possession of a machinegun, and one count of trafficking in firearms, announced Sandra J. Hairston, United States Attorney for the Middle District of North Carolina.

According to court documents, in 2023, MAHMOUD MAZEN ABU-DAMES, 24, was trafficking privately made firearms (PMFs) and machinegun conversion devices (MCDs) online using Telegram, an internet based, online messaging application. ABU-DAMES advertised the sale of 3-D printed drop-in auto sears, which are devices designed and intended to convert semi-automatic rifles into fully automatic machineguns, as well as Glock conversion devices, commonly referred to as “switches,” which are used to convert Glock pistols into fully automatic machineguns. In August of 2023, an undercover agent (UC) began communicating with ABU-DAMES through Telegram about purchasing drop-in auto sears and Glock conversion devices. ABU-DAMES agreed to sell the UC four to five drop-in auto sears and one Glock conversion device. When ABU-DAMES learned the UC lived in the Greensboro area, he insisted on leaving the package on Palmetto Trail, a walking trail located off Old Battleground Road in Greensboro. ABU-DAMES also included four dosage units of Xanax and asked the UC to find a market for them.

After the first transaction, ABU-DAMES offered to sell the UC two AR-15 pistol variants, along with two drop-in auto sears to convert them to fully automatic machineguns. He also offered to sell the UC another Glock conversion device or “switch.” ABU-DAMES described both firearms as “ghost guns” and noted that they did not have serial numbers. When the UC met with ABU-DAMES to conduct the second transaction, the UC saw that one of the firearms still had a serial number on it. The UC informed ABU-DAMES that he planned to traffic the firearm to Mexico and ABU-DAMES requested that the UC obliterate the serial number before doing so to ensure it would not be traced back to him. During this transaction, the UC was accompanied by a confidential informant (CI) who was a convicted felon. When the UC asked ABU-DAMES if it was legal for the CI to possess a firearm, ABU-DAMES told the UC it was not legal for the CI to have a firearm as a convicted felon but suggested that it would be better for the CI to carry the PMF rather than the serialized firearm since it had no identifiable markings. A few weeks later, one final transaction was conducted. In that transaction ABU-DAMES demonstrated how to install a Glock conversion device.

On October 2, 2023, agents with the Bureau of Alcohol Tobacco, Firearms, and Explosives executed a search warrant at ABU-DAMES’ residence. Agents recovered three 3-D printers, numerous firearms, dozens of MCDs, and two unmarked plastic bags containing green and blue tablets, identical to the suspected Xanax that ABU-DAMES previously included during his transactions with the UC.

Sentencing is scheduled to take place on July 26, 2024, at 11:00 a.m. in Winston-Salem, North Carolina, courtroom #4, before United States District Judge Loretta C. Biggs. At sentencing, ABU-DAMES faces a maximum sentence of fifteen years in prison, a period of supervised release of at least three years, fines, and other monetary penalties.

This case was prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.

The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Greensboro Police Department, and the Federal Bureau of Investigation in New Jersey and is being prosecuted by Assistant United States Attorney Nicole R. DuPré.

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Source: Office of United States Attorneys

           MONTGOMERY, ALABAMA – Today, Acting United States Attorney Jonathan S. Ross announced the sentencing of a Sandersville, Georgia woman for aiding and assisting in the filing of false tax returns. On February 2, 2024, a federal judge sentenced 44-year-old April Michelle Nesbitt to 33 months in prison. Federal inmates are not eligible for parole.

           According to her plea agreement and other court records, from 2015 to 2021, Nesbitt worked at Superior Tax Group in Montgomery, Alabama. There, Nesbitt filed federal income tax returns for clients. In her plea agreement, Nesbitt admitted that, on at least two occasions, she included false information on a client’s return. Doing so caused the taxpayer to receive greater refunds than he or she was entitled to receive. Specifically, Nesbitt included expenses on a client’s 2018 and 2020 tax returns related to a childcare business that did not exist. In addition to the prison sentence, the judge also ordered that Nesbitt pay restitution in the amount of $46,669 to the IRS.

           “Tax fraud is a major problem costing the American taxpayer millions each year,” said Acting United States Attorney Ross. “I encourage all taxpayers to review their returns and confirm that they recognize the information. If a tax preparer refuses to let you examine your tax return before it is filed, or if you review your tax return and see a business that is not yours or expenses you do not recognize, ask for clarification or seek a second opinion from a different return preparer.”

           “April Nesbitt used her position as a tax preparer to steal from the American people,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Tax preparers contemplating filing fraudulent tax returns should look at her sentencing as an example of what to expect after IRS Criminal Investigation special agents and our law enforcement partners discover their crimes.”

           For additional guidance, see the IRS fact sheet on their website at https://www.irs.gov/pub/irs-news/fs-08-10.pdf.

           IRS-Criminal Investigation investigated this case, which Assistant United States Attorney Megan A. Kirkpatrick prosecuted.

Source: Office of United States Attorneys

Damian Williams, the United States Attorney for the Southern District of New York, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced that JAMIL HAKIME was sentenced today to 27 months in prison for conspiring to transport a firearm interstate in connection with HAKIME’s sale of a firearm and 19 rounds of ammunition on November 18, 2022, to Christopher Brown and Matthew Mahrer.  Brown and Mahrer planned to use the weapon to violently attack a synagogue in New York City.  At the time of the sale, HAKIME was employed by New York City’s Administration for Children Services (“ACS”), where he worked with New York City youth.  HAKIME previously pled guilty on March 14, 2023, before U.S. District Judge Analisa Torres, who imposed today’s sentence.

U.S. Attorney Damian Williams said: “Jamil Hakime, a City employee who was supposed to be protecting youths, instead decided to arm two men — one of whom had just declared on Twitter his plan to ‘shoot up a synagogue’ — with a powerful firearm and ammunition.  But for swift action by law enforcement, Hakime’s actions could have resulted in a monumental tragedy on New York’s Jewish community and could have devastated the lives of many people who were targeted solely for their religious beliefs and their desire to worship.  The sentence imposed today sends a clear message to those who would recklessly arm others with weapons that may be used to commit acts of mass violence that such conduct will not be tolerated.”

FBI Assistant Director in Charge James Smith said: “Hakime admitted that he willingly chose to provide two men with a firearm enhanced with features enabling it to harm dozens of victims.  The men to whom he chose to sell that firearm planned to use it to attack a synagogue.  Thankfully, the FBI’s Joint Terrorism Task Force in New York became aware of the plot.  Along with our law enforcement partners, we were able to disrupt their plans before they could do any harm, but the outcome could have been far worse.  The punishment handed down today shows that there are serious consequences to arming others with dangerous weapons designed to kill.”

NYPD Commissioner Edward A. Caban said: “Individuals like Hakime who enable others to carry out hate-motivated attacks must face the consequences of their actions.  NYPD investigators, closely partnering with our state and federal colleagues on the FBI’s New York Joint Terrorism Task Force, likely averted tragedy through their swift and diligent work on this case.  Today’s sentencing serves as a reminder of our ongoing work to hold accountable anyone who threatens the safety and security of New Yorkers.”

According to the Indictment, documents previously filed in the case, and statements made in court:

In the early morning hours of November 18, 2022, Brown posted on Twitter that he intended to “shoot up a synagogue,” emphasizing, “This time I’m really gonna do it.”  That afternoon, Brown and Mahrer contacted HAKIME, a resident of Manhattan who had been employed since 2014 by ACS as a Youth Developmental Specialist, to obtain a firearm.  HAKIME, Brown and Mahrer traveled together in HAKIME’s vehicle from Manhattan to HAKIME’s home in Pennsylvania.  During the trip to HAKIME’s residence, law enforcement contacted Brown by phone regarding his threatening online posts.  Brown then deleted the threatening messages that he had posted on Twitter.

Shortly thereafter, HAKIME, Brown, and Mahrer arrived at HAKIME’s Pennsylvania home, where HAKIME retrieved for Brown and Mahrer a Generation 5 Glock 17 pistol (the “Firearm”) as well as 19 rounds of ammunition (the “Ammunition”).  The Firearm had an extended magazine, which allowed it to hold up to 30 rounds of ammunition, and a weapon-mounted light and red dot optic device that allowed the user to have better aim at his target.  HAKIME taught Mahrer and Brown how to use the Firearm and further instructed the men to wipe off the Firearm to remove HAKIME’s fingerprints.  Brown and Mahrer paid HAKIME approximately $650 for the Firearm and Ammunition.    

HAKIME then drove Brown and Mahrer back to Manhattan with the Firearm and Ammunition.  Brown and Mahrer temporarily hid the Firearm and Ammunition in Mahrer’s bedroom at his family’s residence in Manhattan and then traveled together to Penn Station, where they were arrested by law enforcement.  HAKIME remained in phone contact with Mahrer until minutes before Brown’s and Mahrer’s arrests.  At the time of those arrests, law enforcement recovered from a bag that Brown was carrying a large hunting knife and a Swastika arm band. Law enforcement also recovered from Mahrer’s apartment a backpack containing the Firearm and Ammunition, as depicted below:

*                *                *

In addition to his prison term, HAKIME, 59, of New York, New York, was sentenced to three years of supervised release. 

Mr. Williams praised the outstanding investigative work of the FBI New York Field Office, including the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies, and the FBI’s Civil Rights Squad.

This case is being handled by the Office’s National Security and International Narcotics Unit and Civil Rights Unit in the Criminal Division.  Assistant U.S. Attorneys Sarah L. Kushner and Mitzi S. Steiner are in charge of the prosecution.

Source: Office of United States Attorneys

BOSTON – A Chicago-area man has pleaded guilty in federal court in Springfield, Mass. to his role in a nationwide wire fraud conspiracy that victimized businesses and individuals across the United States.  

Demario Sorrells, 38, of Rockford, Ill., pleaded guilty on Feb. 2, 2024 to one count of conspiracy to commit wire fraud. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for May 28, 2024. Sorrells was initially indicted by a federal grand jury in December 2020 along with five co-defendants, including rap promoter Antonio Strong and rap artist Herbert Wright.

According to court documents, beginning in at least March 2017 through November 2018, Sorrells, Wright and, allegedly, their co-defendants conspired to defraud numerous businesses and individuals throughout the United States by using unauthorized and stolen payment card account information of real individuals – including the actual cardholders’ names, addresses, security codes and account expiration dates. Generally, because the payment card information was authentic, the defrauded businesses and individuals successfully processed the fraudulent transactions and provided the goods and services to Wright and his alleged co-conspirators. The actual cardholders discovered these transactions on their accounts and disputed the charges with their card companies who then charged back the transactions to the businesses and individuals, which consequently suffered losses in the amounts of the unauthorized transactions.

According to court filings, on certain occasions, Strong obtained valuable goods and services for the benefit of Sorrells, including private jet flights, luxury accommodations and elite automobile rentals. On other occasions, Strong contacted Sorrells to obtain illicit account information and Sorrells provided Strong with illicit account information that he obtained from the dark web. On other occasions, Strong sometimes paid Sorrells in exchange for the illicit account information. Sorrells knew the illicit account information was stolen data. In total, Sorrells was responsible for $106,000 in victim losses. 

On Jan. 11, 2024, Wright was sentenced to three years’ probation and was ordered to pay restitution and forfeiture of $139,968 each, as well as a $5,500 fine. In July 2023, he pleaded guilty to one count of conspiracy to commit wire fraud and one count of making a false statement to a federal official.

The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, up to five 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 Andrew Murphy, Special Agent in Charge of the United States Secret Service, Boston Field Office made the announcement. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office and Trial Attorneys Andrew Tyler and Kyle Crawford of the Justice Department’s Criminal Division’s Fraud Section are prosecuting the case.

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

Source: Office of United States Attorneys

            WASHINGTON – An Illinois man was sentenced to prison today 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.

            Tyng Jing Yang, 61, of Hoffman Estates, Ill., was sentenced to six days in prison by U.S. District Court Judge John D. Bates for interfering with law enforcement officers during a civil disorder, a felony. The sentence is to be served intermittently, that is, three consecutive two-day weekends. Judge Bates also ordered Yang to serve 24 months of probation and pay $3,000 in restitution and fines.

            According to court documents, Yang traveled from his home near Chicago to Washington, D.C., to attend a rally at the Ellipse and show his support for the former President on Jan. 6, 2021. After the rally, Yang made his way to the U.S. Capitol and entered the building via the Upper West Terrance door at approximately 2:45 p.m.

            Once inside the Capitol, Yang walked up a set of stairs and entered the Rotunda, where he walked about taking pictures and videos on his cell phone. He then exited the Rotunda at approximately 2:47 p.m., only to return a short while later. Court documents say that Yang can be seen on closed-circuit television pumping his fist in the air and watching as an increasing number of police officers fill the Rotunda and pause to take selfie photographs with one another.

            At approximately 3:06 p.m., police officers formed a line near the north exit to expel the rioters from the Rotunda. Despite the advancing line of police officers, Yang refused to move back or to leave the area. Instead, beginning at approximately 3:07 p.m., Yang moved towards the line of police officers and was involved in several confrontations with law enforcement. In one instance, Yang rushed directly toward the line of officers and joined with other rioters in aggressively confronting them and obstructing their efforts to clear the U.S. Capitol building. Yang then physically grabbed one officer’s wrist while the officer was working to clear the Rotunda of rioters.           

            As rioters continued to confront the line of officers, Yang joined them in refusing to exit the Rotunda and pushing back against police. At about 3:09 p.m., one officer began pushing back against a rioter with a police baton. Yang, standing directly behind the rioter, reached around to physically grab ahold of the officer’s baton. The officer broke Yang’s grip on the baton, and shortly thereafter, Yang exited the Capitol at approximately 3:15 p.m.

            Yang was arrested on Nov. 16, 2022, in Hoffman Estates. 

            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 Northern District of Illinois.

            The case is being investigated by the FBI’s Chicago and Washington Field Offices. 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

CHARLOTTESVILLE, Va. –  A Kroger Pharmacy and a Harris Teeter Pharmacy in Charlottesville, Virginia have both agreed to pay the United States a combined total of $1.3 million to settle civil claims that the stores violated the Controlled Substances Act (CSA).

“We have seen a record number of Americans lose their lives in recent years as a result of opioid poisoning,” United States Attorney Christopher R. Kavanaugh said today. “This epidemic remains ongoing, and we know that many individuals struggling with addiction are obtaining opioids and other addictive drugs from pharmacies who choose to look the other way. My Office continues to work with the DEA and others to hold accountable any pharmacy or doctor who illegally prescribes these highly-addictive and dangerous drugs.”

“Healthcare providers, including pharmacies, have a vital responsibility when it comes to dispensing medications to meet the health needs of their patients. Our goal is to ensure that healthcare providers are equipped with the necessary tools and knowledge to deliver high-quality care to their patients, while also preventing the diversion and misuse of prescription drugs for the safety and well-being of our citizens,” said Jarod A. Forget, Special Agent in Charge, DEA Washington Division.

Specifically, the United States contends the two pharmacies violated the CSA at least 160 times between February 2018 and April 2021 by filling invalid prescriptions for opioids and benzodiazepines that were written by a physician clearly acting outside the scope of his medical practice, and pharmacists at both locations should have known this information and refused to fill those illegal prescriptions.

United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Special Agent in Charge Jared A. Forget of the Drug Enforcement Administration – Washington Division made the announcement.

Assistant U.S. Attorney Justin Lugar and the DEA Richmond District Office investigated the matter.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

Source: Office of United States Attorneys

Tampa ― U.S. Attorney Roger B. Handberg announced today that the Middle District of Florida (MDFL) has collected $78,043,065 related to local criminal and civil matters in the fiscal year ending September 30, 2023 (FY 2023). Of this amount, $36,767,863 was collected in criminal cases and $28,641,442 was collected in civil actions.    

The MDFL’s Civil Division, led by Civil Chief Randy Harwell, recovered a total of $41,230,830 on behalf of federal agencies and programs in affirmative civil enforcement cases during the last fiscal year. This amount has two components. In addition to its efforts in local civil cases noted above, the District’s Civil Division also joins forces with other U.S. Attorney’s Offices and with the Department of Justice Civil Frauds Section to address fraud schemes and illegal practices extending beyond district boundaries. The MDFL’s Civil Division recovered an additional $12,589,388 in these jointly handled cases. 

“We will continue to work with our law enforcement partners to investigate and prosecute those who seek to illegally exploit federal government programs by fraudulent means,” said U.S. Attorney Roger B. Handberg. “The funds recovered in the previous fiscal year will help victims recover from their losses and assist law enforcement in pursuing justice.”

U.S. Attorneys’ Offices, along with the Department’s litigation divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

The MDFL’s Asset Recovery Division, led by Chief Anita Cream, recovered a total of $55,930,305. This amount has two components―criminal monetary penalties and forfeiture. First, in addition to the $36,767,863 in criminal monetary penalties collected in cases prosecuted by the District, the Asset Recovery Division worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $44,372 in criminal monetary penalties pursued jointly by these offices.

Additionally, the District’s Asset Recovery Division, working with partner agencies, forfeited $19,118,070 from criminal and civil asset forfeiture actions in FY 2023. For instance, in FY 2023, almost $44 million forfeited in the MDFL was returned to victims of the criminal offenses, and more than $3 million was shared with federal, state, and local law enforcement agencies. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

Significant Affirmative Civil Enforcement Cases

United States ex rel. Sanchez v. Smart Pharmacy, et al., Case no. 3:14cv1493 (M.D. Fla.).  The United States intervened in two related qui tam cases in June 2018 and litigated the government’s claims against a large Jacksonville area compounding pharmacy, Smart Pharmacy, and one of its principal owners, Gregory Balotin, claiming that the pharmacy billed the Tricare program for millions of dollars in reimbursement for medically unnecessary pain creams. Specifically, the intervenor complaint alleged the pharmacy created compounded creams using an anti-psychotic agent, Ariprazole, for no medical purpose and solely to boost reimbursement. The complaint also alleged that the pharmacy routinely waived patient co-payments, without regard to patient need, to improperly incentivize prescriptions for the unnecessary pain creams. In June 2023, we announced a settlement of all claims in exchange for $7.4 million.

Press release: https://www.justice.gov/opa/pr/two-jacksonville-compounding-pharmacies-and-their-owner-agree-pay-least-74-million-resolve   

United States ex rel. Bomar v. Bayfront HMA Medical Center, et al., Case no. 8:16cv3310 (M.D. Fla.). 

An investigation arising from this qui tam case determined that the Lakeland Regional Medical Center (LRMC) had defrauded the Florida Medicaid program through a complex scheme involving sham donations to local government organizations. These donations increased Medicaid payments to LRMC, by freeing up funds for the local government to make payments to the State as the state share of Medicaid payments to LRMC. The state share was “matched” by the federal government before being returned to LRMC as Medicaid payments. Through this scheme, Medicaid payments LRMC received were thus funded by the federal government and LRMC’s own donations, in violation of the prohibition on non-bona fide donations. In March 2023, LRMC agreed to pay $4 million to resolve these allegations. 

Press release: https://www.justice.gov/opa/pr/florida-s-lakeland-regional-medical-center-agrees-pay-4-million-settle-common-law-allegations  

United States ex rel. Improta v. Ocenture, Case no. 3:19cv358 (M.D. Fla.).

The United States intervened in this qui tam case that alleged a kickback scheme arising from genetic testing services. The complaint alleged that Ocenture and a subsidiary company, Carelumina, solicited genetic testing samples from Medicare beneficiaries directly and through marketers. Ocenture and Carelumina then paid physicians to falsely attest that the genetic testing was medically necessary and arranged for laboratories to process the tests and receive reimbursement from Medicare, with a portion of that reimbursement being paid to Ocenture and Carelumina. In December 2022, we announced a settlement of all claims in return for $3 million.

Press release: https://www.justice.gov/opa/pr/ocenture-llc-and-carelumina-llc-settle-allegations-false-claims-unnecessary-genetic-testing

Skyetec

The U.S. Environmental Protection Agency – Office of Inspector General accused a Jacksonville area company, SMC Systems, Inc. d/b/a Skyetec, of violating the Financial Institutions Reform, Recovery and Enforcement Act of 1989 through a scheme whereby Skyetec would falsely certify that newly constructed homes met certain energy efficiency requirements and qualified for EPA’s “Energy Star” rating. The certifications were alleged to have been given to homes in many instances where Skyetec had performed incomplete tests on homes, or had run no tests at all. In September 2023, Skyetec agreed to settle our claims for $2.35 million.

Press release: https://www.justice.gov/opa/pr/smc-systems-inc-pay-235-million-resolve-allegations-false-statements-relating-energy-star

United States ex rel. Graham, et al. v. Florida Cardiology, P.A., et al., Case no. 6:18cv1444 (M.D. Fla.) 

The United States intervened in this qui tam case in June 2022, and alleged that an Orlando area cardiology practice, Florida Cardiology, P.A., and 10 of its cardiologists―Sandeep Bajaj, Abbas Ali, Karan Reddy, Claudio Manubens, Milan Kothari, Saroj Tampira, Sayed Hussain, Raviprasad Subraya, Harish Patil, and Edwin Martinez―defrauded Medicare through a variety of schemes, including the submission of false claims for more interventional stints that were actually inserted into patients, claims for radiofrequency ablations that were not performed by the billing provider and in some instances that were not performed by a qualifying provider, and claims for services performed while the billing provider was outside of the country. In February 2023, the defendants agreed to settle all claims in the case in exchange for $2 million.   

Press Release: https://www.justice.gov/usao-mdfl/pr/florida-cardiology-pa-and-10-physicians-agree-pay-2-million-settle-false-claims-act​​​​​​​ 

Source: Office of United States Attorneys

Earlier today, in federal court in Brooklyn, Alan John Hanke, the sole member of IOLO Capital (IOLO), was arraigned before United States Magistrate Judge Joseph A. Marutollo on a nine-count indictment charging him with securities fraud conspiracy, wire fraud conspiracy, money laundering conspiracy, wire fraud, bankruptcy fraud, and filing a false bankruptcy declaration, in connection with schemes to induce investors to purchase speculative investments, to misappropriate the funds, and then to use the bankruptcy system to discharge his debts to his victims.  Hanke was arrested on January 25, 2024, in Cape Canaveral, Florida, as he was boarding an international cruise.  The defendant made his initial appearance on January 26, 2024 in United States District Court for the Middle District of Florida and was released on a $250,000 bond.

Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation (FBI), New York Field Office, and David Walker, Special Agent-in-Charge, FBI, Tampa Field Office, announced the arrest and charges.

“As alleged, the victims trusted Hanke with millions of dollars for what they were assured would be safe investments,” stated United States Attorney Peace.  “In reality, the defendant deceived the victims and used their money to enrich himself with vacations and a luxury car, and then sought to abuse bankruptcy proceedings to shield his ill-gotten gains.  This Office will hold the defendant accountable for his criminal acts of greed and dishonesty and seek justice for his victims.” 

Mr. Peace thanked the Office of the United States Trustee for the Northern District of Illinois and the United States Attorney’s Office for the Middle District of Florida for their assistance in the matter.  

As alleged in the indictment, between November 2018 and August 2021, Hanke persuaded numerous investors, often in meetings in New York City, to invest in IOLO or related Hanke-run companies.  Hanke promised investors high returns within short periods of time by investing in, among other things, “standby letters of credit,” “medium term notes,” and “high yield bonds.”  Hanke also assured investors that their investments would be insured against losses.  However, nearly all of the money that the victims invested with Hanke went to the defendant’s personal expenses, including cruises, airfare, hotels, gambling expenses, and a luxury car.  Hanke also paid co-conspirators and other investors with money that he wrongfully obtained during the scheme.  The indictment further alleges that Hanke filed a bankruptcy petition in June 2021 in Illinois, in which he sought to discharge the debts that he owed to his victims.  In the bankruptcy petition, Hanke disclosed that he was paid monthly Social Security and Disability checks, but did not disclose the millions of dollars of income he received from his victims.  Hanke also did not disclose the proceeds from the sale of an airplane, or that he used the proceeds for personal expenses, including gambling and repairs to a close relative’s home, as well as $180,000 that was withdrawn in cash. 

If convicted, Hanke faces a maximum sentence of 20 years’ incarceration on the wire fraud, wire fraud conspiracy, and money laundering conspiracy counts and five years’ imprisonment on the securities fraud conspiracy, bankruptcy fraud, and false bankruptcy declaration charges.

The charges in the indictment are allegations, and Hanke is presumed innocent unless and until proven guilty. 

The government’s case is being handled by the Office’s Business and Securities Fraud Unit.  Assistant United States Attorneys Nicholas J. Moscow and Matthew Skurnik are in charge of the prosecution, with assistance from Paralegal Specialist Madison Bates. 

The Defendant:

ALAN JOHN HANKE
Age: 50
Crystal Lake, Illinois

E.D.N.Y. Docket No. 24-CR-27 (RER)

Source: Office of United States Attorneys

A federal grand jury in San Diego returned a superseding indictment on Feb. 2, charging a California man with wire fraud, conspiracy to commit wire fraud, tax evasion, filing false tax returns, conspiracy to defraud the United States, conspiracy to commit money laundering and failing to file tax returns.  

According to the indictment, Leronce Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, both of which operated restaurants in the San Diego area. He allegedly conspired with his business partner to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return filed with the IRS. The indictment alleges that from March 2020 to June 2022, Suel and the business partner then used this false corporate tax return to qualify for the COVID-19-related Paycheck Protection Program and Restaurant Revitalization Funding loans. Suel also allegedly falsely certified on loan forgiveness applications that he spent the money his restaurants received from these programs only for payroll. The indictment charges that Suel and his co-conspirator made substantial cash withdrawals from their business bank accounts to launder the fraudulently obtained funds. As part of the conspiracy, Suel and his co-conspirator allegedly concealed more than $2.4 million in cash at their residence.

The indictment further charges that Suel failed to report income he received from his businesses, including millions of dollars in cash and personal expenses paid for by the businesses, such as the rent for his home. In 2023, Suel also allegedly filed original and amended tax returns for prior tax years that included false depreciable assets and business losses.

If convicted, Suel faces a maximum penalty of 30 years in prison for each count of wire fraud and conspiracy to commit wire fraud, 10 years in prison for each count of conspiracy to commit money laundering, five years in prison for tax evasion and conspiracy to defraud the United States, three years in prison for each count of filing false tax returns and one year in prison for each count of failing to file tax returns. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Tara K. McGrath for the Southern District of California made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorney Julia Rugg of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Beeler for the Southern District of California are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: Office of United States Attorneys

ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Jeffrey C. Boshek II, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, announced today that Leif Everett Hayman pled guilty to one count of use of interstate commerce facilities in the commission of murder-to-hire. Hayman, 33, of Las Cruces, will remain in custody pending sentencing, which has not been scheduled.

A federal grand jury indicted Hayman on July 20, 2022. According to publicly available court records, between April 10, 2022, and continuing through May 11, 2022, Hayman solicited a hitman to murder his girlfriend’s mother by submitting three service requests on the website “rentahitman.com.” In his first service request, Hayman stated that he wanted to “hurt” the victim and wrote “I want her gone now, too much that I don’t like about her she’s controlling my wife.” As part of these service requests, Hayman provided the website with the identity of the intended victim including the victim’s physical address and photographs of the victim and stated, “this is the target person if you don’t do it I will do it myself I’m already thinking about just doing it myself I want her gone now.” Following those three service requests, Hayman sent numerous follow-up emails to the website between April 20 and May 2, 2022. In those emails, Leif expressed that he was losing patience with how long the process was taking.

On May 5, 2022, an ATF agent, acting in an undercover capacity contacted Hayman. During the conversation, Hayman expressed that he wanted the victim “gone off the Earth.” The agent and Hayman discussed various ways to carry out the killing including the use of a gun, baseball bat, knives, and rocks. On May 6, 2022, Hayman followed up with the undercover agent via text message and provided him with the victim’s physical address and a photograph. On May 9, 2022, Hayman had a telephone conversation with the undercover agent. During that call, Hayman indicated to the agent that he lived with staff and that the undercover agent/hitman would also have to harm his caretaker in order for him to leave the home. Hayman ultimately agreed to pay the undercover agent/hitman approximately $200 to murder the victim.

On May 11, 2022, the undercover agent went to Hayman’s house under the auspices of picking him up to carry out the hit on the victim. When the agent showed up, Hayman emerged from the residence with his caretaker in tow. Hayman indicated to the agent that he wanted something done to the caretaker and stated to the agent “this is part of the deal.” The caretaker and Hayman began shoving each other and the undercover agent aborted the operation and drove away.

At sentencing, Hayman faces up to 10 years in prison.

The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. Assistant U.S. Attorneys Maria Y. Armijo and Ry Ellison are prosecuting the case.

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