Father and daughter convicted of financial fraud related to pandemic relief funds, public housing

Source: Office of United States Attorneys

CINCINNATI – A father and daughter have each been convicted of federal crimes related to financial fraud.

India Cook, 37, of Cincinnati, pleaded guilty in U.S. District Court today to four counts of making false statements on COVID-relief loan applications.

Rodney Cook, 56, of Cincinnati, pleaded guilty in August 2023 to two counts of making false statements on COVID-relief loan applications and Department of Housing and Urban Development (HUD) documents.

According to court documents, in 2020 and 2021, India Cook filed fraudulent applications for COVID-19 Economic Injury Disaster loans (EIDL) and Paycheck Protection Program (PPP) loans.

Specifically, she submitted applications that were false and contradicted each other for several different companies, including C&H Tax Service, ADMR Shoes, Tax Lab LLC and Care 4 U. India Cook ultimately received nearly $144,000 in fraudulent loans.

Rodney Cook prepared and submitted an application for AMP Clothing LLC (his daughter’s company) to receive pandemic related funds. AMP Clothing was not operating and did not have any employees or revenue at the time. He ultimately received and fraudulently spent more than $205,000 in EIDL and PPP loans.

In a separate scheme, Cook purchased rental properties through a Department of Housing and Urban Development (HUD) program that was exclusively for owner-occupants who planned to live in the purchased property. Cook used “straw buyers” to purchase HUD properties in Cincinnati that he then rented out.

Rodney Cook was sentenced in January 2024 to pay full restitution, a $7,500 court fine and to serve three years of probation. India Cook will be sentenced at a later date.

Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Karen Wingerd, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI); the department of Housing and Urban Development-Office of Inspector General (HUD-OIG) and Cincinnati Police Chief Theresa A. Theetge announced the guilty plea entered today before U.S. District Judge Jeffery P. Hopkins. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case.

# # #

Former FedEx Driver Sentenced for Selling Firearms He Stole From Packages on His Truck

Source: Office of United States Attorneys

BOSTON – A Middleborough, Mass. man was sentenced to six days in prison for stealing and selling three firearms from FedEx packages he was responsible for delivering. The government recommended a sentence of 10 months in prison.

Frank P. O’Toole, 40, was sentenced on Feb. 2, 2024 by U.S. District Court Judge Angel Kelley to time served (six days) and three years of supervised release, during which period he must complete 250 hours of community service. On June 16, 2023, O’Toole pleaded guilty to two counts of possession or sale of a stolen firearm. 

O’Toole previously worked as a FedEx delivery truck driver at a facility in Middleborough. Between October 2021 and June 2022, O’Toole stole three packages sent from out-of-state which he was responsible for delivering, each containing a firearm – specifically, two rifles and a shotgun – intended for a Federal Firearms Licensee. O’Toole subsequently sold the three firearms to an undercover agent during two separate controlled purchases on Aug. 9, 2022 and Aug. 12, 2022.

Acting United States Attorney Joshua S. Levy; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives; and Middleborough Police Chief Joseph Perkins made the announcement today. Assistant U.S. Attorney Elianna J. Nuzum of the Major Crimes Unit prosecuted the case.

Philadelphia Woman Sentenced for Conspiring to Distribute 11 Kilos of Narcotics

Source: Office of United States Attorneys

BOSTON – A Philadelphia woman has been sentenced to eight days in prison for conspiring to distribute kilos of fentanyl and heroin. The government recommended a sentence of 37 months in prison.

Elba Pena, 34, was sentenced on Feb. 1, 2024 by U.S. District Court Judge Allison D. Burroughs to time served (eight days) and three years of supervised release with one year to be served in home confinement. Pena pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl and heroin. 

In November 2021, Pena traveled from Philadelphia to Methuen, Mass. to deliver two kilograms of heroin to a person she thought was a customer. Specifically, on Nov. 16, 2021, Pena met with an undercover officer posing as the purported customer at a commercial plaza in Methuen and delivered the heroin. Pena was immediately taken into custody. A subsequent search of Pena’s Philadelphia residence resulted in the recovery of nine kilograms of fentanyl. 

Acting United States Attorney Joshua S. Levy and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Samuel R. Feldman of the Narcotics & Money Laundering Unit prosecuted the case.

Smuggler Sentenced to 72 Months

Source: Office of United States Attorneys

Driver Who Transported Alien in a Toolbox Also Found Responsible for Sexual Assault

TUCSON, Ariz. – Luis Carlos Ballesteros-Moreno, 43, of Hermosillo, Mexico, recently living in Tucson, was sentenced last week by United States District Judge John C. Hinderaker to 72 months in prison, followed by three years of supervised release. On September 20, 2023, Ballesteros-Moreno pleaded guilty to Transportation of Illegal Aliens for Profit Placing in Jeopardy the Life of Any Person.

On March 27, 2023, Ballesteros-Moreno was encountered by United States Border Patrol agents at the State Route 90 checkpoint. At the time, he appeared to be the only occupant of his vehicle, a Chevrolet Silverado pickup truck. Approximately an hour into the encounter, Ballesteros-Moreno informed agents that a female person was hidden inside a commercial-sized toolbox mounted in the truck bed. Upon opening the toolbox, agents discovered an 18-year-old female. She was determined to be an undocumented noncitizen that Ballesteros-Moreno was transporting for financial gain. The young woman reported to law enforcement that she had been sexually assaulted by Ballesteros-Moreno during the transportation.

During sentencing, evidence was presented substantiating the sexual assault. The judge found that Ballesteros-Moreno created a substantial risk of death or serious bodily injury via the method of transporting the young woman in the exterior toolbox, and that he sexually assaulted and involuntarily detained her during the transportation.

Customs and Border Protection’s United States Border Patrol, Tucson Sector, and the Cochise County Sheriff’s Department conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
 

CASE NUMBER:            23-CR-00542-TUC-JCH  
RELEASE NUMBER:    2024-114_Ballesteros-Moreno

# # #

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.

Missouri Man Sentenced to Serve 30 Years in Federal Prison for Sexually Exploiting Minors

Source: Office of United States Attorneys

CAPE GIRARDEAU – The U.S. Attorney’s Office announced that Tony Ray Waites, 47, of Piedmont, Missouri, was sentenced Tuesday by U.S. District Judge Stephen N. Limbaugh, Jr. to 30 years in federal prison for the offense of production of child pornography.

According to court documents, the investigation began in March 2022 when a then 11-year-old boy reported that he had been sexually abused by Waites on multiple occasions. The young boy further reported that he believed Waites recorded the abuse. The Wayne County Sheriff’s Office immediately obtained a search warrant for Waites’ residence.  When officers explained the nature of the investigation, Waites quickly grabbed a knife and cut himself in the throat. He was immediately rushed to the hospital for medical treatment, where his condition stabilized. Meanwhile, officers seized various electronic devices inside Waites’ residence. During an examination of the devices, officers discovered several videos depicting Waites engaging in sexual activity with the 11-year-old boy. The examination further revealed that Waites made sexually explicit recordings of nine additional young boys from the area. At his guilty plea hearing last November, Waites admitted that he produced the video recordings depicting the ten young boys engaging in sexually explicit conduct.

After serving the 30-year sentence, Waites will be placed on supervised release for the rest of his life. Waites will also be required to register as a sex offender.

This case was investigated by the Wayne County Sheriff’s Office and the Federal Bureau of Investigation. Assistant United States Attorney Jack Koester handled the prosecution for the government.

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 Department of Justice Criminal Division’s 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 www.justice.gov/psc.

Fort Worth Woman Sentenced to 24 Years in Federal Prison for Drug Trafficking

Source: Office of United States Attorneys

DEL RIO, Texas – A Fort Worth woman was sentenced in a federal court in Del Rio to 292 months in prison for her role in a conspiracy to import methamphetamine into the U.S.

According to court documents, Sally Renae Smith, 54, conspired with others to import 3.422 kilograms of methamphetamine which had a purity of 100%. Smith exchanged text messages with a co-conspirator trafficking methamphetamine into the U.S. from Mexico, instructing her to drive to her motel room in Del Rio once she made it through the point of entry.

Smith was arrested on September 8, 2020, and has remained in federal custody since her arrest. She pleaded guilty on July 21, 2021. Smith’s three co-conspirators also pleaded guilty and remain in federal custody awaiting sentencing.

“This prison sentence of more than two decades is indicative of how serious we are in dismantling these drug trafficking organizations,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Thank you to our partners at Homeland Security Investigations for their work in the investigation of this case. Importing illicit drugs into this country has severe consequences, which, alongside our law enforcement partners, we will enforce.”

“HSI will continue to aggressively pursue narcotics traffickers,” said Special Agent in Charge Craig Larrabee for the HSI San Antonio Division. “Our work is not done, and our resolve in attacking the drug trade is as strong as ever. HSI will continue to investigate, arrest and prosecute those involved in narcotics trafficking to keep our communities safe.”

HSI investigated the case.

Assistant U.S. Attorney Rex Beasley prosecuted the case.

###

Greensboro Man Pleads Guilty to Multiple Firearms Offenses Relating to Possession and Sale of Drop-in Auto Sears and Glock Conversion Devices

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.

###

Tax Preparer Sentenced for Including False Information on Federal Tax Returns

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.

Manhattan Man Sentenced To 27 Months In Prison For Conspiracy To Transport A Firearm Interstate

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.

Chicago-Area Man Pleads Guilty to Role in Nationwide Fraud Conspiracy

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.