Category: Office of United States Attorneys

Source: Office of United States Attorneys

Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants Francisco Herrera Salas, age 43, from Barrigada, Guam and Joseph Mesa Babauta, age 48, from Agat, Guam, were sentenced each to serve 108 months in federal prison.  They were convicted of Attempted Possession with Intent to Deliver Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1).  The Court also ordered both defendants to serve 3 years of supervised release following imprisonment and to pay a mandatory $100 special assessment fee.  In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits. 

In December 2020, federal agents intercepted three priority mail packages containing methamphetamine, one of which was addressed to “Frankie Salas.”  The Salas package contained 1,781 grams of methamphetamine, which was replaced with a sham substance.  During a controlled delivery, Salas claimed the package and drove to a location in Agat.  Agents were alerted that the package had been opened.  They also saw Babauta driving a vehicle away from the scene.  Agents then stopped the vehicle and found the sham substance from the Salas package on the front seat.  Soon after, agents stopped Salas in the same vehicle he used to pick up the package from the post office.  Both Babauta and Salas had clue spray on their hands and clothing, indicating they had opened the Salas package or handled the contents.

“The Postal Inspection Service continues to interdict drug trafficking in our mail system,” stated United States Attorney Anderson.  “We will aggressively prosecute those associated with this illicit activity.  As this case demonstrates, a conviction under federal law can result in substantial penalties.”

The United States Postal Inspection Services, Drug Enforcement Administration Los Angeles Field Division – Guam Office, and Guam Customs & Quarantine Agency investigated this matter. 

This case was prosecuted by Stephen F. Leon Guerrero and Benjamin K. Petersburg, Assistant United States Attorneys in the District of Guam.

Source: Office of United States Attorneys

Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Melvin John Salas Naputi, age 51, from Guam, was sentenced to 30 years imprisonment.  Naputi was charged and convicted of Attempted Possession with Intent to Deliver Fifty or More Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1) and Felon in Possession of a Firearm and Ammunition, in violation of 18 U.S.C. §922(g)(1).  The Court also ordered 10 years of supervised release following imprisonment and a mandatory $200 special assessment fee.  In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits. 

On August 8, 2018, U.S. Marshals executed a federal arrest warrant for Naputi at a hotel room in Tumon, Guam.  A female accompanied Naputi at the room.  She was present as officers conducted a safety sweep, during which drug paraphernalia was found in plain sight.  The female admitted that there were illegal drugs and a firearm in the hotel room and consented to a more thorough search.  Law enforcement found 15 grams of methamphetamine in an ice bucket, 4.59 grams of methamphetamine in a pouch, cocaine, drug packaging material, drug paraphernalia, firearms, and ammunition as well as $7,405 in drug proceeds.  

On April 4, 2021, U.S. Postal Inspection Services (USPIS) intercepted a package addressed to “Tina Lay,” which contained 926 grams of methamphetamine with a purity level of 100%.  USPIS replaced the drugs with a sham substance and coordinated with task force officers for the delivery of the package to the addressed recipient.  The package was delivered to a mailbox and then picked up by a male riding a motorcycle.  It was tracked to a residence located in Mangilao, Guam.  Task force officers entered the home once package was opened.  Naputi climbed out of a window and ran away leaving behind his backpack, cell phones, the package, and the vehicle.  His backpack was found to contain $24,075 in cash, plastic baggies, three scales, calibration weights, and 821 grams of methamphetamine.  Two plastic bags on the front seat of the vehicle contained $71,000 in cash.

Naputi was arrested in July 2023.  He was found in possession of 3,442 grams of methamphetamine (roughly 7 ½ pounds) and $219,144 in cash, amounting to the illegal proceeds of drug distribution.  Law enforcement also seized vehicles, electronics, jewelry, and other miscellaneous items.

“Naputi was a serious threat to public safety in Guam,” stated United States Attorney Anderson.  “The outstanding work of our federal partners and Guam agencies brought this defendant to justice.  We will continue to focus federal resources to combat drug trafficking and firearm violations in an effort to protect our communities.”

“Organized trafficking of methamphetamine and other illegal drugs contributes to the unacceptable level of violence in Guam and the Northern Mariana Islands. Those who persist in engaging in dangerous criminal conduct despite determined efforts to dissuade them will be held accountable,” said Homeland Security Investigations Special Agent in Charge John F. Tobon. “Dismantling drug trafficking organizations and taking guns out of the hands criminals, is a critical part of our fight to reduce violent crime in our communities.”

“Following the issuance of a warrant of arrest, a comprehensive law enforcement effort was undertaken to locate and capture this fugitive.  During the fugitive investigation, credible information surfaced concerning this fugitive’s continuing criminal activity,” said Deputy U.S. Marshal, Pedro Patrick Cortez. “The United States Marshals Service is committed to capturing fugitives, disabling their criminal activity and keeping our community safe.” 

“Melvin Naputi was a fugitive for years and a drug dealer known for violence for years, if not decades,” said Resident Agent in Charge Kenneth L. Bowman. “It’s good that he will be off the streets of Guam for a long time.”

“Drugs and firearms make a very deadly combination to the safety of our communities,” said ATF Seattle Field Division Special Agent in Charge Jonathan E. Blais. “ATF will not stop in our mission of investigating those involved in actions such as these.  This sentence sends a strong message to Mr. Salas that this behavior will not be tolerated.”

“The FBI remains committed to working with our law enforcement partners to remove dangerous criminals who destroy and harm lives in our neighborhoods in Guam,” said FBI Special Agent in Charge Steven Merrill.  “Justice was served today as Naputi was sentenced for distribution of methamphetamine and being a felon in possession of firearms.”

“Postal inspectors are committed to keeping dangerous weapons and controlled substances like methamphetamine out of the mail and off the street in Guam and across the United States, ” said San Francisco Division Inspector-in-Charge Rafael Nuñez. “I would like to thank our law enforcement partners at the Guam Customs and Quarantine Agency, the Guam Police Department, and the federal government for sharing this responsibility with us.”

This case was a joint investigation conducted by United States Marshals Service, Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration Los Angeles Field Division – Guam Office, Department of Homeland Security, United States Postal Inspection Services, Federal Bureau of Investigation, and the Guam Police Department.

The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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 https://www.justice.gov/OCDETF.

Source: Office of United States Attorneys

PORTLAND, Ore.—A local man is facing federal charges today after authorities intercepted an international parcel he had ordered containing MDMA and quantities of at least 16 different drugs and 42 firearms were found in and seized from his Gresham, Oregon home.

Riley James Hinds, 38, has been charged by criminal complaint with possessing with intent to distribute a controlled substance and possessing a firearm in furtherance of a drug trafficking crime.

According to court documents, on January 9, 2024, U.S. Customs and Border Protection (CBP) officers at Los Angeles International Airport seized an inbound package from the Netherlands containing approximately 2.5 pounds of MDMA. The package, addressed to “James Settler,” an alias used by Hinds to open a mailing box at a UPS Store in Gresham, was handed over to special agents from Homeland Security Investigations (HSI) in Portland for further investigation.

On January 26, 2024, investigators arrested Hinds and executed a federal search warrant on his residence. Investigators located and seized quantities of at least 16 different narcotics in Hinds’ residence including MDMA, Adderall, counterfeit Oxycodone, cocaine, ketamine, marijuana, psilocybin, ayahuasca, LSD, opium, morphine, DMT, mescaline, peyote, GHB, 5-MeO-DMT, and a mixture of unidentified pills. They also located and seized various drug processing tools and packaging materials, 42 firearms, four firearm suppressors, two unfinished ghost guns, and six sets of body armor.

Hinds made his first appearance in federal court today before a U.S. Magistrate Judge and was ordered detained pending further court proceedings.

This case was investigated by HSI, the U.S. Postal Inspection Service (USPIS), the Portland Police Bureau Narcotics and Organized Crime Unit (PPB-NOC), and the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA) Interdiction Task Force (HIT) with assistance from CBP. It is being prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.

A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.

Source: Office of United States Attorneys

CHARLOTTE, N.C. – Glynn Paul Hubbard, Jr., 46, of Charlotte, pleaded guilty today to wire fraud and money laundering charges for obtaining more than $1.2 million in fraudulent COVID-19 relief funds for himself and his customers, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.

Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, joins U.S. Attorney King in making today’s announcement.

According to filed plea documents, from March 31, 2020, to August 1, 2020, Hubbard, Jr. submitted fraudulent Paycheck Protection Program (PPP) and Economic Injury Relief Disaster Loan (EIDL) Program loan applications to the U.S. Small Business Administration (SBA) and SBA-approved lenders, seeking to obtain relief funds for himself and for other businesses, which Hubbard, Jr. referred to as “customers.” To obtain the relief funds for himself and his customers, Hubbard, Jr. falsified the loan applications and supporting documentation by including false financial information, fake employment data, and fraudulent tax returns. Of the $1.2 million in relief funds disbursed as a result of the scheme, Hubbard, Jr. received more than $570,000 for himself, and over $660,000 was disbursed to his customers.

According to court records, Hubbard, Jr. promoted the fraudulent scheme through personal referrals and in social media posts where he advertised that he was a PPP loan/EIDL consultant. Hubbard, Jr. received improper loan preparer fees for his consulting services totaling more than $150,000. To avoid detection, Hubbard, Jr. required customers to pay his fees in cash, via cashier’s checks, or wire transfers.

Following the plea hearing, Hubbard, Jr. was released on bond. The wire fraud charge carries a maximum prison sentence of 20 years. The maximum statutory penalty for the money laundering offense is 10 years in prison. A sentencing date has not been set.

In making today’s announcement, U.S. Attorney King thanked IRS-CI for their investigative work in the case.

Assistant U.S. Attorneys Caryn Finley and Cassye Cole with the U.S. Attorney’s Office in Charlotte are in charge of the prosecution.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with U.S. Attorneys’ Offices and agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

 

Source: Office of United States Attorneys

SANTA ANA, California – A Riverside County man was sentenced today to 144 months in federal prison for the armed robbery of a convenience store in Orange County – his tenth such robbery committed during a two-day crime spree in late 2022.

George Arizon, 28, of Corona, was sentenced by United States District Judge Cormac J. Carney, who also ordered him to pay $3,658 in restitution.

Arizon pleaded guilty in August 2023 to one count of interference with commerce by robbery (Hobbs Act) and one count of brandishing a firearm in furtherance of a crime of violence.

On November 8, 2022, Arizon robbed a 7-Eleven store in Westminster. During the robbery, he brandished a semi-automatic handgun and used it to threaten a store employee. In fear for his safety, the employee handed Arizon $80 in cash and two packs of cigarettes. This was the tenth robbery Arizon committed during a two-day spree.

In his plea agreement, Arizon admitted to committing nine other armed robberies of businesses – eight restaurants and one hair salon – in Santa Ana, Garden Grove, and Westminster over a span of two days. In each of those robberies, Arizon brandished a firearm to threaten and intimidate the businesses’ employees.

Police officers responding to calls about the Westminster robberies later recovered and retained a black sweatshirt, black hat, and mask that Arizon wore during the crimes, according to court documents. Officers also recovered the black semi-automatic handgun, with a gold-colored barrel, which had been discarded nearby. Security camera footage showed Arizon wearing this apparel, court documents state.

Arizon stole a total of $3,658 during his crime spree.

“[Arizon] repeatedly pointed a ghost gun at victims to force them to hand over the stores’ money,” prosecutors argued in a sentencing memorandum. “When investigators arrested him and searched his house, they found another firearm, ammunition, high-capacity magazines, spent shell casings, and drugs.”

The Bureau of Alcohol, Tobacco, Firearms and Explosives’ Orange County Violent Crime Task Force investigated this matter, and received assistance from the Santa Ana Police Department, the Garden Grove Police Department, and the Westminster Police Department.

Assistant United States Attorney Jena A. MacCabe of the Violent and Organized Crime Section prosecuted this case.

Source: Office of United States Attorneys

            WASHINGTON – Roberto McBean, 30, a Maryland resident, has been arrested on felony charges after robbing the same business in Georgetown multiple times while using a firearm. McBean is charged in an indictment, filed in the District of Columbia, with four felony counts of violating the Hobbs Act, which prohibits individuals from actual or attempted robbery which affects interstate commerce.

            As detailed in the indictment, from November 23, 2023 to January 8, 2024, McBean robbed the Glover Park Market located at 2411 37^th Street NW. During this timeframe, McBean robbed the market of over $1000, often using a handgun and ordering the store employee to give him the money from the register.

            Agents with the FBI’s Washington Field Office arrested McBean on Friday, January 26, 2024, following his indictment. He made his initial appearance in the District of Columbia on Monday, January 29, 2024, before the Honorable Judge G. Michael Harvey. A detention hearing is currently set for Thursday, February 1, 2024.

            This case is being prosecuted by Special Assistant United States Attorney Ryan Lipes and Assistant United States Attorney Omeed A. Assefi of the U.S. Attorney’s Office for the District of Columbia. This case is being investigated by the Metropolitan Police Department and the FBI.

Source: Office of United States Attorneys

The Justice Department today announced charges against two individuals and the guilty plea of a third individual for orchestrating a $1.89 billion cryptocurrency fraud scheme.

Sam Lee, 35, an Australian citizen residing in Dubai, United Arab Emirates, was charged in an indictment unsealed today for allegedly co-founding HyperFund, also known as HyperTech, HyperCapital, HyperVerse, and HyperNation. Rodney Burton, 54, of Miami, and Brenda Chunga, 43, of Severna Park, Maryland, were promotors of HyperFund.

“The defendants are charged with defrauding investors to the tune of $1.89 billion. As alleged in court documents, the defendants falsely represented that investors would receive substantial returns paid from cryptocurrency mining operations, which did not in fact exist,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “With our partners in Homeland Security Investigations and IRS Criminal Investigation, we are committed to uncovering sophisticated frauds involving cryptocurrency and digital assets and bringing those who perpetrate them to justice.”

“The level of alleged fraud here is staggering,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Whether it’s cryptocurrency fraud, or any other financial frauds, if it sounds too good to be true, it probably is. This office and our law enforcement partners will hold perpetrators accountable for these and other fraud schemes.”

According to court documents, from June 2020 to November 2022, Lee and his co-conspirators allegedly offered and sold investment contracts to the public through HyperFund’s online investment platform. HyperFund’s promotional materials allegedly made various false claims, including that investors who purchased HyperFund “memberships” would receive between 0.5% to 1% daily in passive rewards until the company either doubled or tripled the investor’s initial investment. To convince investors that HyperFund could make such payments, HyperFund allegedly claimed that its payments would be disbursed in part from its revenues from large-scale crypto mining operations, when in truth, HyperFund did not have such operations. Beginning in at least July 2021, HyperFund allegedly began to block investor withdrawals.

“Today’s charges are a testament to the incredible work of HSI New York’s El Dorado Task Force,” said Acting Special Agent in Charge Erin Keegan of Homeland Security Investigations (HSI) New York. “I commend our law enforcement partners, including those at HSI Baltimore, for their outstanding collaboration. HSI will continue to protect American investors from financial predators.”

“The illegal activity alleged in this case is precisely the type of conduct IRS Criminal Investigation and our law enforcement partners are committed to deterring,” said Acting Special Agent in Charge David Meisenheimer of the IRS Criminal Investigation (IRS:CI) Washington, D.C. Field Office. “These charges send a clear message that we have the tools and internal fortitude to protect our financial systems by diligently investigating, prosecuting, and holding accountable those who seek to defraud the American public.”

Lee is charged with one count of conspiracy to commit securities fraud and wire fraud. If convicted, he faces a maximum penalty of five years in prison. Burton is charged by criminal complaint with one count of conspiracy to operate an unlicensed money transmitting business and one count of operating an unlicensed money transmitting business. He also faces a maximum penalty of five years in prison on each count. Chunga pleaded guilty today to one count of conspiracy to commit securities fraud and wire fraud. She faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

HSI New York’s El Dorado Task Force and IRS:CI are investigating the case.

Trial Attorney Tian Huang of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Aaron S.J. Zelinsky and Spencer Todd for the District of Maryland are prosecuting the case.  

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov. To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.

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

Baltimore, Maryland – Three individuals are charged in U.S. District Court in Maryland for orchestrating a $1.89 billion cryptocurrency fraud scheme.

A federal grand jury has returned an indictment charging Sam Lee, age 35, an Australian citizen residing in the United Arab Emirates for allegedly co-founding HyperFund, also known as HyperTech, HyperCapital, HyperVerse, and HyperNation.  The indictment was returned on January 25, 2024, and unsealed today.  Co-conspirator Rodney Burton, a/k/a “Bitcoin Rodney,” 54, of Miami, Florida, is charged by criminal complaint for his role as an alleged promoter of HyperFund.  Co-conspirator Brenda Chunga, 43, of Severna Park, Maryland, pleaded guilty today to her role in the fraud scheme. 

The federal charges were announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; Acting Special Agent in Charge Erin Keegan of Homeland Security Investigations (“HSI”) New York; and Acting Special Agent in Charge David Meisenheimer of the Internal Revenue Service – Criminal Investigation (“IRS-CI”), Washington, D.C. Field Office.

“The level of alleged fraud here is staggering,” said U.S. Attorney Erek L. Barron. “Whether it’s cryptocurrency fraud, or any other financial frauds, if it sounds too good to be true, it probably is. This office and our law enforcement partners will hold perpetrators accountable for these and other fraud schemes.”

“The defendants are charged with defrauding investors to the tune of $1.89 billion. As alleged in court documents, the defendants falsely represented that investors would receive substantial returns paid from cryptocurrency mining operations, which did not in fact exist,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “With our partners in Homeland Security Investigations and IRS Criminal Investigation, we are committed to uncovering sophisticated frauds involving cryptocurrency and digital assets and bringing those who perpetrate them to justice.”

“Today’s charges are a testament to the incredible work of HSI New York’s El Dorado Task Force,” said Acting Special Agent in Charge Erin Keegan of Homeland Security Investigations (HSI) New York. “I commend our law enforcement partners, including those at HSI Baltimore, for their outstanding collaboration.  HSI will continue to protect American investors from financial predators.”

“The illegal activity alleged in this case is precisely the type of conduct IRS Criminal Investigation and our law enforcement partners are committed to deterring,” said David Meisenheimer, Acting Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Washington, D.C. Field Office. “These charges send a clear message that we have the tools and internal fortitude, to protect our financial systems by diligently investigating, prosecuting, and holding accountable, those who seek to defraud the American public.”

According to court documents, from June 2020 to November 2022, Lee and his co-conspirators allegedly offered and sold investment contracts to the public through HyperFund’s online investment platform.  HyperFund’s promotional materials allegedly made various false claims, including that investors who purchased HyperFund “memberships” would receive between 0.5% to 1% daily in passive rewards until the company either doubled or tripled the investor’s initial investment.  To convince investors that HyperFund could make such payments, HyperFund allegedly claimed that its payments would be disbursed in part from its revenues from large-scale crypto mining operations, when in truth, HyperFund did not have such operations.  Beginning in at least July 2021, HyperFund allegedly began to block investor withdrawals.

If convicted, Lee faces a maximum sentence of five years in federal prison for conspiracy to commit securities fraud and wire fraud.  Burton has been arrested on a criminal complaint charging him with one count of conspiracy to operate an unlicensed money transmitting business and one count of operating an unlicensed money transmitting business.  At a detention hearing today before U.S. Magistrate Judge Erin Aslan in U.S. District Court in Baltimore, Maryland, Burton was ordered to be detained.  If convicted, he also faces a maximum penalty of five years in prison on each of those counts. 

Brenda Chunga, a/k/a “Bitcoin Beautee,”pleaded guilty today to conspiracy to commit securities fraud and wire fraud, for her role as a promoter of HyperFund.  According to her plea agreement and other court documents, Chunga conducted online investor meetings, including in Maryland, to promote HyperFund’s investment programs and which detailed the purported returns that prospective investors could earn from investing in HyperFund.  Chunga admitted that she personally received at least $3 million in fraud proceeds from her participation in the conspiracy.  As detailed in her plea agreement, Chunga will be required to pay restitution in the full amount of the victims’ losses, which the parties agree is at least $3 million, but could be significantly higher.  Chunga faces a maximum penalty of five years in prison.  U.S. District Judge Richard D. Bennett has not yet scheduled a sentencing date.

Neither an indictment nor a criminal complaint is a finding of guilt.  An individual charged by indictment or criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings. 

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov.  To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.

United States Attorney Erek L. Barron commended HSI New York’s El Dorado Task Force and IRS-CI for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky and Spencer Todd, and Trial Attorney Tian Huang of the Criminal Division’s Fraud Section who are prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.

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Source: Office of United States Attorneys

LOS ANGELES – A Canadian man was sentenced today to 72 months in federal prison for distributing hundreds of pounds of cocaine out of stash houses in the San Gabriel Valley community of Alhambra.

Sam Nang Bou, 41, of Edmonton, Canada, was sentenced by United States District Judge Percy Anderson.

Bou pleaded guilty in December 2022 to one count of distribution of cocaine.

In June 2022, Bou operated two stash houses in Alhambra in which he used to store and prepare bulk quantities of narcotics for distribution and eventual importation into Canada. On June 28, 2022, Bou knowingly and intentionally transported approximately 104.6 kilograms (230.6 pounds) of cocaine from one of the Alhambra stash houses to a location in Hesperia.

While in Hesperia, Bou handed over four boxes containing the cocaine to a truck driver for exportation into Canada.

Bou engaged in eight other similar distributions of cocaine and methamphetamine from September 2021 to September 2022. In total, for these eight additional distributions, Bou distributed approximately 341 kilograms (752 pounds) of cocaine and approximately 729.7 kilograms (1,608.7 pounds) of methamphetamine.

In September 2022, Bou operated and controlled a Dodge Caravan with two hidden trap compartments that he used to store bulk quantities of drugs. He also controlled a storage unit in Alhambra, which he rented using an alias. On September 1, 2022, Bou drove the vehicle into the storage unit and locked the unit with the vehicle inside of it.

Inside of the Dodge Caravan’s two hidden trap compartments, Bou possessed approximately 47.3 kilograms (104.3 pounds) of cocaine and 325 grams of methamphetamine.

At one of the Alhambra stash houses, Bou possessed storage tubs, dozens of rolls of tape, numerous duffle bags and boxes, vacuum sealed bags, heat sealers, boxes of dryer sheets, scales, and a money counter. He also had industrial-size containers of various chemicals used to clean the drugs, coveralls, various sets of gloves, numerous bowls and containers, several masks, and a respirator.

The FBI and the Los Angeles HIDTA Task Force investigated this case. The Royal Canadian Mounted Police, the Los Angeles Violent Transnational Organized Crime Task Force, the Las Vegas Metropolitan Police Department, the California Highway Patrol, the Barstow Police Department, the Mohave Area General Narcotics Enforcement Team, and the Kern County Sheriff’s Office provided substantial assistance in this matter.

The case against Bou is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Assistant United States Attorney Brittney M. Harris of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.

Source: Office of United States Attorneys

BOSTON – A lifetime Level 2 sex offender, pleaded guilty today to possessing child sexual abuse material (CSAM).

Eric Robert Johnson, 50, of Billerica, pleaded guilty to one count of possession of child pornography. U.S. District Court Judge Denise J. Casper scheduled sentencing for May 2, 2024. Johnson was arrested and charged by criminal complaint in February 2022 and subsequently indicted by a federal grand jury in March 2022. He has remained in federal custody since his arrest. 

“Possession of child pornography is not a victimless crime because it further victimizes the innocent children who were abused to create these horrific images and drives demand for the creation of more abusive material,” said Acting United States Attorney Joshua S. Levy. “Mr. Johnson, a lifetime sex offender previously convicted of child rape, possessed over 5,000 files showing the sexual abuse of children, including infants. He is clearly a danger to our communities, and now faces significant time in federal prison. Our office will continue to relentlessly pursue individuals who harm children.”

“Images of children being sexually abused aren’t just documenting a moment in time. They’re a window into the horrific, ongoing reality for many of these kids. Sex offenders like Eric Robert Johnson who collect this material perpetuate the demand for it, which means more children will be exploited,” said Jodi Cohen Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “It’s imperative for the FBI and our law enforcement partners to intercept such predators when we find them, and we’re grateful Mr. Johnson accepted responsibility today for his criminal conduct.”

Searches of Johnson’s person and residence in February and March of 2022 resulted in the recovery of 25 electronic devices including a laptop, hard drives and other electronic devices. Multiple hard drives were found hidden next to Johnson’s bed as well as in Johnson’s basement ceiling, shelves, cabinets and in an ammunition can located in a crawl space at the residence. At the time of the search, the laptop was running a program to wipe, delete or remove files from an attached hard drive and was approximately 56% complete before being disabled by an on-scene forensic examiner. 

A subsequent forensic examination revealed over 5,000 files depicting CSAM on seven of the seized devices, including images and video files depicting the sexual abuse of minor victims as young as infants and toddlers. Further forensic examination determined that 15 of the seized devices were encrypted or had hardware and could not be searched.  

Additionally, during the search of Johnson’s residence, at least three mutilated dolls with the vaginal region sliced to make a hole were seized. Two children’s backpacks containing various children’s clothing including bathing suits and a nightgown, were found under his bed, along with a bag of children’s costumes. Additionally, children’s diapers were also observed throughout the residence.

Johnson was previously convicted in 1992 on state charges in New Hampshire of two counts of Aggravated Felonious Sexual Assault of a Child Under 13 Years of Age. At the time of the searches, Johnson was a Level 1 registered sex offender in the Commonwealth of Massachusetts. Per the Massachusetts Sex Offender Registry Board, Johnson is currently a Level 2 registered sex offender.

The charge of possession of child pornography after a prior conviction for a sex offense provides for a mandatory minimum sentence of 10 years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.

Acting U.S. Attorney Levy, FBI SAC Cohen and Billerica Police Chief Roy Frost made the announcement today. Assistant U.S. Attorneys Suzanne Sullivan Jacobus, Luke A. Goldworm and J. Mackenzie Duane of the Criminal Division are prosecuting 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.