Category: Office of United States Attorneys

Source: Office of United States Attorneys

Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Kevin Edward Hargrave a/k/a “Kevin Edward Wade,” of Locust Grove, Georgia, to five years in federal prison for conspiring to commit wire fraud and to defraud the United States for the purpose of impeding the lawful functions of the Internal Revenue Service (IRS). As part of his sentence, the court also entered an order of forfeiture in the amount of $1.5 million, the proceeds of the wire fraud conspiracy. Hargrave was also ordered to pay restitution to his victims, including $418,115 to the IRS. Hargrave entered a guilty plea on October 4, 2022.

According to court documents, Hargrave controlled a number of companies, including WSA Optimization Firm, Inc., that purported to offer “credit repair services” to the public. Hargrave promoted these services through multiple company-specific websites, radio advertising, emails, text messages, and posts on YouTube.com and other social media sites. These marketing campaigns promised to “erase bad credit” information from consumers’ credit reports within 90 days – “guaranteed.” Notwithstanding these promises, multiple customers reported to federal investigators that they paid for credit repair services, saw no such results, and were denied refunds.

When an undercover federal agent called to inquire about these credit repair services, he was told that WSA Optimization used “federal laws to remove all negative derogatory items off your credit.” Further, the agent was told “we are able to remove those items off your credit without you paying [creditors] back.” A company representative also claimed that WSA Optimization employed a team of 5 attorneys and 23 paralegals who worked to remove negative credit information from credit reports.

In reality, Hargrave did not employ a team of attorneys or paralegals.  Instead, supposedly to improve its customers’ credit scores, company representatives would send form letters to each credit reporting agency and falsely claim that all negative credit information on the customers’ credit reports was the product of identity theft or fraud. These letters – which did not disclose that they were mass produced by WSA Optimization – were sent in envelopes listing a fictional return address. 

An analysis of bank records established that more than $8 million in deposits were made into the business bank accounts controlled by Hargrave and a family member, and that significant funds were diverted from those accounts to pay for luxury vehicles, mortgage payments on their residence, personal credit cards, jewelry, items at retail stores, utilities, restaurants, and other living expenses. For example, funds were used to make over $128,000 in mortgage payments on Hargrave’s residence in Fernandina Beach, which he sold in 2022 for $870,000. Similarly, approximately $300,000 was used to make down-payments and monthly financing payments on automobiles owned by Hargrave and a family member, including a Lamborghini Gallardo, a Rolls Royce Wraith, a Porsche Boxster, a Range Rover, a Ford F-150, and two Mercedes Benz vehicles.

An analysis of Hargrave’s real and personal property, certain business records, credit card statements, and the bank records collectively demonstrate that his joint tax returns for tax years 2016 through 2019 underreported taxable income and improperly claimed certain business expenses. A financial investigator with the IRS estimated that since 2015, by underreporting his and a family member’s tax liability, Hargrave has caused the United States to lose approximately $418,115 in tax revenue.

“It was clear that Mr. Hargrave believed the law did not apply to him,” stated IRS Criminal Investigation Acting Special Agent in Charge Lani Rosado-Espinal.  “Despite being in the midst of a global pandemic, he stole millions of dollars from vulnerable people, who were struggling financially and defrauded the IRS. IRS-CI and the FBI will continue to partner with the United States Attorney’s Office to identify, investigate and assist in the prosecution of criminals like Mr. Hargrave, whose greed leads them to prey on others, including U.S. taxpayers.” 

“Fraud and corruption pose a fundamental threat to our national security and our way of life,” said Michael C. Malsch, Assistant Special Agent in Charge of the FBI Jacksonville Division. “The FBI is committed to coordinating with our partners and aggressively pursuing those who take advantage of others for their personal gain. This sentencing should serve as a warning to others who might engage in these types of schemes.”  

This case was investigated by the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Michael J. Coolican. 

Source: Office of United States Attorneys

Tampa, FL – U.S. District Judge William F. Jung has sentenced Benancio Pineda (50, Mexico) to 10 years in federal prison for conspiring to possess with the intent to distribute methamphetamine. Pineda entered a guilty plea on September 28, 2023.

According to court documents, on December 20, 2022, Pineda met with an individual at a gas station in Wimauma and sold him approximately 1 kilogram of methamphetamine. This methamphetamine was 96% pure. On June 16, 2023, Pineda drove to meet the same person in Wimauma to sell him 2 kilograms of methamphetamine, but Pineda was pulled over by law enforcement near Sun City Center. Law enforcement recovered approximately 2 kilograms of methamphetamine from inside of Pineda’s car. This methamphetamine was 97% pure.  

This case was investigated by the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney David Pardo.

This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

Source: Office of United States Attorneys

SIOUX FALLS – United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Madison, South Dakota, man convicted of Receipt and Distribution of Child Pornography. The sentencing took place on January 30, 2024.

Treton Anderson, age 26, was sentenced to 15 years and six months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Anderson will also need to register as a sex offender upon his release.

Anderson was indicted by a federal grand jury in August of 2022. He pleaded guilty on October 2, 2023.

The conviction stemmed from incidents between December 18, 2021, and June 29, 2022, when Anderson, using his cellular phone to access the internet, and using his Kik account, distributed digital files containing child pornography.

This case was investigated by Homeland Security Investigations, the South Dakota Internet Crimes Against Children Task Force, the National Center for Missing and Exploited Children, and the Madison Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.

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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.

Anderson was immediately remanded to the custody of the U.S. Marshals Service.

Source: Office of United States Attorneys

Tampa, FL – U.S. District Judge Thomas P. Barber has sentenced Debora Ryder (56, New Port Richey) to three years in federal prison for drug conspiracy. Ryder entered a guilty plea on September 19, 2023. She has also agreed to forfeit her nursing licenses.

According to court documents, Ryder was a Florida-licensed advanced practice registered nurse (APRN), registered nurse (RN), and Drug Enforcement Administration (DEA) registrant who conspired with another individual to distribute controlled substances in the names of individuals without lawful authority. As an APRN and DEA registrant, Ryder had the authority to issue prescriptions for controlled substances, however, she knew her licensing became delinquent on July 31, 2022, making her ineligible to issue controlled substances.

From August to September 2022, Ryder conspired with another individual, who provided Ryder with more than a dozen identifications and driver licenses for Ryder’s use, to issue prescriptions for promethazine with codeine and oxycodone without any medical evaluation. Ryder received cash and electronic payments in exchange for each controlled substance prescription she issued. Records revealed Ryder issued approximately 84 illegal prescriptions during the conspiracy.

Additionally, between January 2021 and August 2022, Ryder illegally issued 34 oxycodone and hydromorphone prescriptions in the name of J.R., Ryder’s deceased husband who died in 2018.

This case was investigated by the Drug Enforcement Administration (Tampa District Office) and the Opioid Fraud and Abuse Detection Unit. The Opioid Fraud and Abuse Detection Unit was created by the Department of Justice to help combat the devastating opioid crisis. The Opioid Fraud and Abuse Detection Unit focuses specifically on opioid-related health care fraud, using data to identify and prosecute individuals contributing to the prescription opioid epidemic. The case was prosecuted by Assistant United States Attorney Greg Pizzo.

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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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.