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Former Seattle Resident Sentenced to Prison for use of ‘Molotov Cocktail’ at May Day 2016 Protest

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Defendant Prepared for Weeks and Made Inflammatory Comments on the Internet about Killing Police

           A former Seattle resident was sentenced today in U.S. District Court in Seattle to 37 months in prison for unlawful possession of a destructive device, in particular, for making and throwing bottles filled with gasoline at police officers on May 1, 2016, announced U.S. Attorney Annette L. Hayes.  WIL CASEY FLOYD, 33, of Elkhart Lake, Wisconsin, was arrested in April 2017, after a lengthy investigation that linked him to a so-called ‘Black Bloc’ of protestors who threw unlit incendiary devices at Seattle Police during a May Day protest.  At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez said it was an extremely serious crime.  “Throwing gasoline filled bottles during a protest – there are all sorts of people out there, old people, young people … it could have caused serious injury or death.”

                “This prosecution sends a clear message – we will not tolerate attacks on the women and men in law enforcement who do the hard work of keeping us all safe,” said U.S. Attorney Annette L. Hayes.  “After all, the SPD officer who was injured by the defendant was protecting our cherished First Amendment rights.  No matter the disguise – black bloc or otherwise – we will identify and hold to account those who cross the line from peaceful protest to criminal assault.”

            According to the plea agreement and other records in the case, FLOYD went online to research building Molotov cocktails.  He purchased the necessary supplies and constructed six of the explosive devices using beer bottles.  He placed the bottles filled with gasoline in a black bag.  FLOYD dressed in black, wore a black hood and a gas mask and joined the protest on the evening of May 1, 2016.  FLOYD threw five of the unlit destructive devices at Seattle Police Officers.  One of the Molotov cocktails thrown at police shattered at the feet of an officer and ignited his trousers when a flash-bang grenade went off.  The officer suffered burns to his leg.  FLOYD dropped the bag containing one remaining bottle of gasoline and changed his clothes and appearance before police could arrest him. 

            The investigation into FLOYD’s communications revealed that nearly two months prior to May Day, on March 8, 2016, Floyd sent a text message stating, “Kill them all with fire,” referring to SPD officers.  Following the May Day attack FLOYD posted remarks online, ridiculing images of injured Seattle Police who were treated for injuries caused by “black bloc’ protestors.

            In court today, FLOYD said that he had gone along with a group of people, and “realized it was a mistake, but there was no turning back… I never intended anyone to get hurt…. I’ll never do anything like this again.”

           Chief Judge Martinez told FLOYD that “this country was founded by protest, it’s as American as apple pie… but there are limits, there are rules of law.”  In addition to the prison time, Chief Judge Martinez imposed three years of supervised release following prison with 100 hours of community service to be completed during the first year of his release.

            The case was investigated by the FBI’s Joint Terrorism Task Force and the Seattle Police Department, both through its membership on the JTTF and with additional investigative groups.

          The case is being prosecuted by Assistant United States Attorneys Todd Greenberg and Tom Woods.

Jury Convicts Former CIA Officer of Espionage

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Today, a federal jury convicted Kevin Patrick Mallory, 61, a former Central Intelligence Agency case officer of Leesburg, Virginia, on espionage charges related to his transmission of classified documents to an agent of the People’s Republic of China.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement after Senior U.S. District Judge T.S. Ellis III accepted the verdict.

“It is a sad day when an American citizen is convicted of spying on behalf of a foreign power,” said Assistant Attorney General Demers.  “This act of espionage was no isolated incident.  The People's Republic of China has made a sophisticated and concerted effort to steal our nation's secrets.  Today's conviction demonstrates that we remain vigilant against this threat and hold accountable all those who put the United States at risk through espionage.”

“There are few crimes in this country more serious than espionage,” said U.S. Attorney Terwilliger.  “This office has a long history of holding those accountable who betray their country and try and profit off of classified information. This case should send a message to anyone considering violating the public’s trust and compromising our national security by disclosing classified information. We will remain steadfast and dogged in pursuit of these challenging but critical national security cases.”

“This trial highlights a serious threat to U.S. national security,” said Assistant Director in Charge McNamara.  “Foreign intelligence agents are targeting former U.S. Government security clearance holders in order to recruit them and steal our secrets. This case should send a message to foreign intelligence services and those caught up in their web: we are watching and we will investigate and prosecute those who willfully violate their obligations to protect national security secrets. I want to start by thanking the prosecutors of the U.S. Attorney’s Office, the trial attorneys of the Justice Department and particularly the special agents, analysts and professional staff of the FBI’s Washington Field Office for their hard work.”

According to court records and evidence presented at trial, in March and April 2017, Mallory travelled to Shanghai and met with an individual, Michael Yang, whom he quickly concluded was working for the People’s Republic of China Intelligence Service (PRCIS).  During a voluntary interview with FBI agents on May 24, 2007, Mallory stated that Yang represented himself as working for a People’s Republic of China think tank, however Mallory stated that he assessed Yang to be a Chinese Intelligence Officer.

Mallory, a U.S. citizen who speaks fluent Mandarin Chinese, told FBI agents he travelled to Shanghai in March and April to meet with Yang and Yang’s boss.  After Mallory consented to a review of a covert communications (covcom) device he had been given by Yang in order to communicate covertly with Yang, FBI agents viewed a message from Mallory to Yang in which Mallory stated that he could come in the middle of June and he could bring the remainder of the documents with him at that time.  Analysis of the device, which was a Samsung Galaxy smartphone, also revealed a handwritten index describing eight different documents later determined to be classified.  Four of the eight documents listed in the index were found stored on the device, with three being confirmed as containing classified information pertaining to the same U.S. government agency.  One of those documents was classified TOP SECRET, while the remaining two documents were classified SECRET.  FBI analysts were able to determine that Mallory had completed all of the steps necessary to securely transmit at least four documents via the covcom device, one of which contained unique identifiers for human sources who had helped the U.S. government.

Evidence presented at trial included surveillance video from a FedEx store in Leesburg where Mallory could be seen scanning the eight classified documents and a handwritten table of contents onto a micro SD card.  Though Mallory shredded the paper copies of the eight documents, an SD card containing those documents and table of contents was later found carefully concealed in his house when it was searched on June 22, 2017, the date of his arrest.  A recording was played at trial from June 24, 2017, where Mallory could be heard on a call from the jail calling his family to ask them to search for the SD card.

Mallory has held numerous positions with various government agencies and several defense contractors, including working as a covert case officer for the CIA and an intelligence officer for the Defense Intelligence Agency.  As required for his various government positions, Mallory obtained a Top Secret security clearance, which was active during various assignments during his career.  Mallory’s security clearance was terminated in October 2012 when he left government service.

Mallory was convicted of conspiracy to deliver, attempted delivery, delivery of defense information to aid a foreign government, and making material false statements.  He faces a maximum penalty of life in prison when sentenced on Sept. 21.  The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Assistant U.S. Attorneys John T. Gibbs and Colleen E. Garcia of the Eastern District of Virginia, and Trial Attorney Jennifer Kennedy Gellie of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.

Harrisburg Financial Services Consultant Sentenced to Prison for Causing $374,000 in Illegal Transfers to His Bank Accounts

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PITTSBURGH - A Pennsylvania resident has been sentenced in federal court to 41 months imprisonment followed by three years supervised release on his conviction of wire fraud and damaging a computer, United States Attorney Scott W. Brady announced today. Sullivan, Jr. was also ordered to pay $374,198.73 in restitution.

United States District Judge Cathy Bisson imposed the sentence yesterday on William Simon Sullivan, Jr., 45, Harrisburg, Pennsylvania.

According to information presented to the court, Sullivan worked as a consultant for Triangle Payroll Services, Inc. (TPS), a Pennsylvania corporation that provides clients with various financial services including payroll and tax escrow processing services. Using the software program CyberPay, TPS created daily batch files that were uploaded to a national financial services company. The batch files contained specific instructions regarding the transfers of funds for TPS clients. From January 12, 2013, and continuing to January 24, 2014, Sullivan executed a scheme to defraud TPS and its clients. Using his position as a consultant to TPS, his knowledge of the CyberPay software, and his remote access to TPS’s computer network, Sullivan fraudulently altered TPS’s daily batch files and caused more than $374,000 to be transferred via wire transfers from bank accounts of TPS and its clients to Sullivan’s personal bank accounts, without the knowledge, approval or authorization of TPS or its clients.

Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.

United States Attorney Brady commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Sullivan, Jr.


Former Richland County Employee Pleads Guilty to Federal Drug Charges

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Columbia, South Carolina ---- United States Attorney Sherri A. Lydon stated today that Senior United States District Judge Joseph F. Anderson sentenced James Anthony Brown Jr., a former employee of the Richland County Recreation Commission, to 135 months of incarceration as a result of his conviction for Possessing with Intent to Distribute Methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).

Evidence presented in court established that on the May 27, 2016, Richland County Sherriff’s deputies stopped Brown after deputies observed him retrieving a package, suspected of containing narcotics, from the front porch of an address in Columbia, S.C. After encountering Brown, deputies searched the package and found 11.9 pounds of marijuana. A subsequent search was done of Brown’s home and deputies found a second package with approximately 775 grams of methamphetamine (street value of approximately $20,000). This package was addressed to Brown and had the same return address as the previous package which contained the 11.9 pounds of marijuana. Additionally, deputies found more marijuana, drug paraphernalia, ecstasy and an assault rifle throughout Brown’s home.

The case was investigated by the Federal Bureau of Investigation, Richland County Sherriff’s Office, South Carolina Law Enforcement Division, and the South Carolina Attorney General’s Office. Assistant United States Attorneys Will Lewis and Alyssa Richardson of the Columbia office prosecuted the case.

South Carolina Man Pleads Guilty to Forced Labor for Compelling Man with Intellectual Disability to Work at Restaurant

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The defendant used violence, threats, isolation, and intimidation to compel victim to work seven days a week without pay at restaurant

WASHINGTON – Defendant Bobby Paul Edwards, 53, of Conway, South Carolina, pleaded guilty Monday in United States District Court for the District of South Carolina to one count of forced labor, admitting that he used violence, threats, isolation and intimidation to compel a man with an intellectual disability to work for over 100 hours a week without pay, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division and United States Attorney Sherri A. Lydon of the District of South Carolina.

According to court documents, between 2009 and 2014, Edwards managed a restaurant in Conway, South Carolina, where the victim, identified in court documents as “JCS,” had worked since he was 12 years old. Once Edwards began managing the restaurant in 2009, he increased JCS’s duties, requiring him to work more than 100 hours per week. The defendant stopped paying JCS and began using violence, threats, isolation, and intimidation to compel victim JCS’s continued service. According to court documents and Edward’s admissions, he subjected JCS to abusive language, racial epithets, threats, and acts of violence that included beating JCS with a belt, punching JCS with his fists, hitting JCS with pots and pans, and burning JCS’s bare neck with hot tongs, in order to compel JCS to work faster or to punish JCS for mistakes.

The defendant compelled JCS to continue working under these conditions until October 2014, when authorities removed victim JCS from the premises after receiving complaints about the abuse.

“Human trafficking through forced labor can happen on farms, in homes, and as today’s case shows – in public places, such as restaurants,” said Acting Assistant Attorney General John Gore. “Edwards abused an African-American man with intellectual disabilities by coercing him to work long hours in a restaurant without pay. Combatting human trafficking by forced labor is one of the highest priorities of this Justice Department and today’s guilty plea reflects our commitment to seeking justice on behalf of victims of human trafficking.”

“This defendant abused a vulnerable victim, and today’s guilty plea holds the defendant responsible for his criminal acts,” said U.S. Attorney Sherri Lydon for the District of South Carolina.

Edwards faces a maximum of 20 years in prison for forced labor, a $250,000 maximum fine, and mandatory restitution to the victim. A sentencing date has not yet been scheduled. According to the terms of the plea agreement, the defendant will also be required to pay restitution to victim JCS in an amount to be determined at the time of sentencing.

This case was investigated by the Federal Bureau of Investigation, with assistance from the Department of Labor’s Wage and Hour Division. The case is being prosecuted by Special Litigation Counsel Jared Fishman, Trial Attorney Lindsey Roberson of the Civil Rights Division’s Criminal Section and its Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Alyssa Leigh Richardson of the District of South Carolina.

Romanian Nationals Indicted for Fraud Conspiracy and ID Theft

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RICHMOND, Va. – A federal grand jury returned an indictment today charging a two Romanian nationals with bank fraud, debit card fraud, and aggravated identity theft.

According to the indictment, Florin Bersanu, 31, and Viorel Naboiu, 43, participated in a scheme to insert skimming devices inside the card slots of multiple banks in Virginia, West Virginia and Florida. As bank customers conducted ATM transactions, the skimming devices captured the victim customers’ debit card numbers when they inserted their cards into the ATM slot. Bersanu and Naboiu also installed small, covert surveillance cameras, disguised to blend into the ATMs’ exterior, which videoed the finger movements of bank customers as they entered their PINs during the transactions. The defendants later encoded the skimmed debit card numbers onto blank plastic magnetic stripe cards, and using the videoed PINs they made cash withdrawals from the victim customers’ bank accounts. The defendants are accused of stealing at least $42,756.80 in funds from BB&T Bank and Henrico Federal Credit Union in Virginia, United Bank in West Virginia, and Pen Air Federal Credit Union and Eglin Federal Credit Union in Florida.

Bersanu and Naboiu are charged with conspiracy to commit bank fraud, bank fraud, aggravated identity theft and access device fraud. If convicted, they face maximum possible sentences of 30 years on the bank fraud and conspiracy to commit bank fraud charges, 10 years on the access device fraud charge, and a mandatory minimum term of two years for aggravated identity theft that must run consecutive to any other punishment imposed. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Adam S. Lee, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement. Assistant U.S. Attorney Brian R. Hood is prosecuting the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:18-cr-75.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

Cross Lanes Man Sentenced to Federal Prison for Receiving Child Pornography

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CHARLESTON, W.Va. – A Cross Lanes man was sentenced today to 78 months in federal prison for a child pornography crime, announced United States Attorney Mike Stuart. Charles William Lourett, 62, previously entered his guilty plea in February to receiving child pornography. U.S. Attorney Stuart commended the investigative efforts of the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, the Parkersburg Police Department, the FBI, and the FBI Violent Crimes Against Children Task Force.  

“We have a great team of investigators and prosecutors working tirelessly to identify those who use the Internet to target and exploit children,” said United States Attorney Mike Stuart.  “Sex offenders like Lourett need to be locked up.”

Lourett previously admitted that on September 22, 2016, he received a video of a prepubescent minor engaged in sex acts. The video was received on Lourett’s computer located at his residence. The investigation revealed that Lourett was using a peer-to-peer file sharing program to download, receive, and distribute child pornography. Lourett further admitted to possessing over 600 images and videos of minors engaged in sex acts.

Upon Lourett’s release from prison, he will be required to serve a term of supervised release of 15 years and will be required to register as a sex offender.

First Assistant United States Attorney Lisa G. Johnston and Assistant United States Attorney Jennifer Rada Herrald were in charge of the prosecution. The sentencing hearing was held before United States District Judge John T. Copenhaver, Jr..

Ohio County Magistrate indicted on wire fraud, bribery, and tax fraud charges

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WHEELING, WEST VIRGINIA – Ohio County Magistrate Harry A. Radcliffe, III, was indicted today by a federal grand jury on charges involving wire fraud, bribery, and tax fraud, United States Attorney Bill Powell announced.

Radcliffe, age 60, was indicted on one count of “Conspiracy to Commit Wire Fraud, Federal Program Bribery, and Travel Act Bribery,” three counts of “Wire Fraud,” one count of “Federal Program Bribery,” one count of “Travel Act Bribery,” and three counts of “Filing a False Income Tax Return.”

Radcliffe is accused of soliciting and accepting bribes from W&S Bail Bonding, doing business as A Bail Bonding (ABC) of Wheeling, West Virginia, concealing said bribes from the State of West Virginia and the IRS, directing defendants and their families to ABC without offering other options as required, altering bonds to require a bonding company, and collecting said bribes via credit card and interstate travel He is also accused of failing to report $11,000 in income on both his 2013 and 2014 federal income taxes, and failing to report $4,500 in income on his 2015 federal income taxes. The crimes are alleged to have occurred from January 2012 to April 2016 in the Northern District of West Virginia and elsewhere.

The United States is also seeking a money judgement in the amount of $26,500.

Radcliffe faces up to five years incarceration and a fine of up to $250,000 for the conspiracy count, up to 20 years incarceration and a fine of up to $250,000 for each of the wire fraud counts, up to 10 years incarceration and a fine of up to $250,000 for federal bribery count, up to five years incarceration and a fine of up to $250,000 for the travel act count, and up to three years incarceration and fine of up to $250,000 for each of the false income tax return counts. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

In addition, William W. Seelbach, owner of ABC, of North Fort Meyers, Florida, was charged in a two-count information today. Seelbach, age 68, is facing one count of “Conspiracy to Defraud the United States—Impede the Internal Revenue Service,” and one count of “Failure to File Individual Income Tax Return for Tax Year 2012.” Seelbach is accused of impeding the IRS in its collection of taxes, and failing to file a federal income tax return for 2012 to report $144,030 in income to the IRS.

Jolynn Gilchrist, former employee of ABC, of Wheeling, West Virginia, was charged in an information today with one count of “False Tax Return.” Gilchrist, age 49, is accused of filing an inaccurate federal tax return for the 2015 tax year.

Assistant U.S. Attorneys Jarod J. Douglas and Shawn M. Adkins are prosecuting the cases on behalf of the government. The Federal Bureau of Investigation, the Internal Revenue Service, the West Virginia Commission on Special Investigations, and the West Virginia State Police investigated.

An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

Attorney General Jeff Sessions Delivers Remarks to the 24th Annual Joint Conference of the Montana Association of Chiefs of Police and the 88th Annual Montana Police Protective Association

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Remarks as prepared for delivery

Thank you, Kurt, for that kind introduction.  Thank you for your seven years of service to the Department of Justice and for your outstanding leadership now as United States Attorney.

Thank you to Anthony Hutchings, Buck Herron, Dan Smith, Bob Frank, Scott Conrad, and Jerry Williams for your leadership on the Board and for the invitation to join you today.

I also want to thank Chief Ryan Oster, Chief Clint Peters, Chief E.J. Clark, Chief McGee, Chief Steve Crawford, Chief Roger Nasset, and all of our law enforcement officers who are here today.

I especially want to thank Sergeant Tim Berger and Officer Richie O’Brien of Butte, Montana.  We were together about a month ago when they won the well-deserved Top Cops Award.

Last May, Sergeant Berger and Officer O’Brien put their lives on the line after one of their own was struck down.  They engaged in a more-than-100-mile chase after two criminals shot and killed Deputy Mason Moore of the Broadwater County Sheriff’s department.  These officers are true heroes who kept the people of Montana safe and brought justice to those responsible for murdering one of your brothers in blue.

Let’s hear it for these two exemplary officers.

It is an honor to be here with you all – with the selfless and courageous men and women of law enforcement.  The President has directed us to support you in your work—and we are committed to doing that. And his first order to me when I was confirmed? To back the blue.

Donald Trump ran for office as a law-and-order candidate and now he is governing as a law-and-order President.  Under his strong leadership, we are finally getting serious about the rule of law.

As a prime example of that, the Trump administration is taking strong steps to make our schools safer.

Today I am announcing the Department of Justice’s first grants under the STOP School Violence Act, which President Trump signed into law.  Under this new law, the Department of Justice will provide $50 million to train teachers and students and to develop an anonymous reporting system for threats of school violence.  In the coming months, we will offer another $25 million in these school safety grants.

Working with the Department of Education, these grants will go a long way toward giving our young people safety and peace of mind.

But what I’d like to talk to you about today is the steps we are taking to help you—our men and women in blue—by restoring the rule of law in our immigration system.

Policing has always been dangerous work.  But unchecked illegal immigration has made the work of police officers all across America tougher and more dangerous than it ought to be.  It may not seem to be a problem here, but make no mistake about it: our porous Southern border puts you—and your brothers and sisters in uniform—at risk.

Earlier today, the Department of Justice and the Department of Homeland Security released a report that shows that more than one-in-five of all persons in Bureau of Prisons custody were foreign born, and that 93 percent of confirmed aliens in custody were known or suspected illegal aliens.

Officers like you had to arrest them.  Officers like you had to go into dangerous situations to take these people off of our streets—people who never should have been here in the first place.  You shouldn’t have to do that.  And to add insult to injury, you’re paying taxes to incarcerate these people.

And even when you’re not dealing with immigrant crime directly, you’re dealing with it indirectly.  For example, most of the heroin, cocaine, methamphetamine, and fentanyl in this country got here across our Southern border.  Tens of thousands of Americans die every year as a result.

Here in the West, most of our DEA agents tell us that the top drug use is methamphetamine.

In 2016, more than 7,500 Americans lost their lives to a methamphetamine overdose alone. For fentanyl, it was over 20,000.

And this number has been increasing.  According to the Montana Department of Justice, methamphetamine violations in this state rose by more than 400 percent from 2010 to 2015.  Meanwhile heroin violations increased 1,500 percent.

Our porous border is a big factor in this problem. As just one example of many, in April, we arrested a teen trying to enter the country carrying 14 pounds of fentanyl across the border. That’s enough to kill 3.1 million Americans.

Any rational person that takes a look at this situation sees the need to secure the border and end the lawlessness.

But there is an open borders movement afoot in this country.  From coast to coast, there are politicians who think that having any border at all—any limit whatsoever—is mean-spirited, unkind, or even bigoted. Sometimes they try to hide it; sometimes not.

And I’m not just talking about the extremists or known radicals, here.  I’m talking about powerful, influential politicians.

For example, the vice-chairman of the Democratic National Committee recently wore a t-shirt that says “I don’t believe in borders.”

For another example, the Mayor of Oakland has called illegal aliens “law-abiding.”  Think about that.  By definition that is not true.

In 2013, back when everybody thought Hillary Clinton would be president and when she could still make millions giving speeches to banks, she reportedly said in one secret speech, “my dream is a hemispheric common market, with open trade and open borders.”  This is the presidential nominee of a major political party.

But these are just the explicit, overt examples.  There are plenty of other examples of politicians who try to sound like moderates but who vote for open borders policies. Apparently, even the libertarian CATO institute does too.

We must pause and think about this seriously.  President Trump’s policies are not extreme, this is extreme. The caravan that came to our southern border demanding entry recently was organized by a group called “pueblos sin fronteras”—people without borders.

Can America welcome all who want to come here? One poll says 150 million people worldwide want to come here. No nation can sustain such a surge. Europe is in political turmoil over excess immigration. Open borders is an extreme, reckless and dangerous idea. It can never be a sane policy for America.

For decades, the American people have been begging and pleading with our elected officials for an immigration system that is lawful and that serves our national interest—one that we can be proud of and that’s fair and just.  There is nothing mean-spirited about that.  They are right and just and decent to ask for this.

But we’ve been blocked at every turn.  Any law enforcement policies are attacked by open borders radicals. And every time something is proposed that would end illegal immigration, it gets blocked.  If it works, it gets blocked.

For example, we’ve had Kate’s Law before the Congress.  Kate’s Law is named after Kate Steinle, the young woman who was shot to death in San Francisco by an illegal alien who had been deported five times.  Kate’s Law would increase the penalty for re-entry after deportation.  That would deter illegal aliens from committing this crime.

But no.  This bill has been blocked.

We’ve had the Toomey Amendment, to cut funding for sanctuary cities.  That was blocked.

We’ve had the Secure and Succeed Act, which would increase funding for border security.  That was blocked.

No wonder the American people are so frustrated.  If it works, it gets blocked.

President Trump has made it clear that legislation is needed to end the illegality. And it is. Congress must act.

But at this Department and the Department of Homeland Security, under President Trump’s leadership, we’re not going to wait around for Congress to get its act together.  We are taking action and we are enforcing the law without exception.

Unfortunately there has been a lot of misinformation about there about some of the things that we are doing.  The reports have been so wrong that some people might even call it “fake news.”

And so I’d like to take a few minutes to clear things up.

For example, members of the media claimed that the government had “lost” thousands of children in the United States.  That turned out not to be true.

Several reporters have tweeted out photos taken of Homeland Security facilities during the Obama administration and then used them to attack President Trump.

Sadly, there are many other examples of the media getting this wrong.

So let’s clear up some of the misinformation.

Under the laws of this country, illegal entry is a misdemeanor.  Re-entry after having been deported is a felony.

Under the law, we are supposed to prosecute these crimes.  Our goal is to prosecute 100 percent of illegal entries on the Southwest border.

If you cross the Southwest border unlawfully, then we will prosecute you. That’s our goal. It’s that simple.

If you smuggle illegal aliens across our border, that is a crime, too.  We will prosecute you for a felony as the law requires.

That much should be clear.

But there has been some confusion about this.

If you bring a child, it is still an unlawful act. You don’t get immunity if bring a child with you. We cannot have open borders for adults with children.

And when parents are prosecuted for illegal entry, their children cannot go to jail with them—just like when American citizens commit crimes.  The Marshals’ detention facility doesn’t have a facility for children.

There are too many coyotes—human smugglers and human traffickers—who take kids across the border for a hefty price.  The consequences are sometimes tragic.

Hundreds of illegal aliens die every year trying to make it to this country.  In many cases, children are trafficked, abused, or recruited by criminal gangs.  No one should subject their child to this treacherous journey—and yet the open borders lobby encourages it every day.

This is what happens: After apprehension of adults by the Department of Homeland Security, the children are cared for by the Department of Health and Human Services—and they are transferred to HHS custody within 72 hours.  And they are well cared for.  In fact, they get better care than a lot of American kids do—all at taxpayer expense.

We currently spend more than $1 billion a year in taxpayer dollars taking care of unaccompanied illegal alien minors. Most of these are in HHS custody. They are provided plenty of food, education in their language, health and dental care, and transported to their destination city—all at taxpayer expense.

Because of the Flores consent decree and a Ninth Circuit Court decision, ICE can only keep families detained together for a very short period of time.

We take unaccompanied children—on the taxpayer’s dime—anywhere they want.  They are nearly always placed with a family member—sometimes one who is also here illegally.  If they’ve got family in Missoula, we take them there from El Paso, Texas, free of charge.  If they’ve got family in Boston, we take them there.  It’s more than generous.

It’s almost unbelievable.  It cannot be that someone can walk into a country contrary to the laws of the country and then be allowed to roam free in the country while their children get a free ride anywhere they choose.

So what is the alternative to following the law and prosecuting illegal entry?  Well, under the Obama administration, the alternative was essentially no prosecution—de facto open borders.  De facto amnesty.

If you showed up illegally at the border with a child, then you got off scot-free.  Unsurprisingly, word got out about this and more and more people started bringing kids with them—more than 3 times as many this May as last May.  It didn’t have to even be their child—it could be anyone.  You can imagine the horrible abuses that resulted. And the open borders crowd has the gall to blame those who want to end this lawlessness and the dangers these children face.

Look, I hope that we don’t have to separate any more children from any more adults.  But there’s only one way to ensure that is the case: it’s for people to stop smuggling children illegally.  Stop crossing the border illegally with your children.  Apply to enter lawfully.  Wait your turn.

Some people in the media have chosen to attack us for enforcing the law.  But I’m not ashamed of the United States of America.  I am not going to apologize for carrying out our laws.

We’re not the ones breaking the law.  If you don’t want to be separated from your children, then don’t smuggle them illegally.  My duty is to enforce the laws of this country—and that’s what we’re going to do.

If they wanted to, Congress could end illegal immigration tomorrow.  I hope that they will.  The many good and constitutional proposals that will actually work, like the wall, must not continue to be blocked.

I believe that our political leaders owe it to you, our fabulous law enforcement officers, to get this issue right at last.  We’ve got to stop the flow of drugs and crime into America.  It is not fair to keep asking you to go into dangerous situations.

We are under no obligation to accept a single criminal into this country.  Not one.  Those whom we do accept into this country should have a crime rate of zero.

Tom Homan of ICE tells us that nine out of ten of the illegal aliens that they arrest in the interior have criminal records.  Nine out of ten.  Seventy-two percent are convicted criminals.

This is a great nation—the greatest in the history of the world.  And we are the most generous in the world—admitting 1.1 million legally every year.  It is no surprise that people want to come here.  But they must do so properly.  They must follow our laws—or not come here at all.

And so this Department, under President Trump’s leadership along with the Department of Homeland Security, is enforcing the law resolutely.  We will finally secure this border so that we can give the American people safety and peace of mind.

That’s what the people—and especially you, our brave men and women in blue—deserve.

Lummi Tribal Member Sentenced to Six Years in Prison for Sexual Abuse of a Minor

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20-Year-Old Had Previous Conviction for Sex Acts with Minor Victim

          A 20-year-old member of the Lummi Tribe was sentenced Monday June 4, 2018 to six years in prison and 20 years of supervised release for sexual abuse of a minor, announced U.S. Attorney Annette L. Hayes. JASON LITTLE SKY JAMES JR, of Bellingham, Washington, was indicted in November 2017, and pleaded guilty in March 2018.  U.S. District Judge James L. Robart noted the need to protect the public from JAMES JR., who will be required to register as a sex offender following his release from prison.

            According to records filed in the case, between December 2016 and September 2017, JAMES, JR engaged in sexual acts with a minor female who was 13 or 14 years old.  At the time of the sex acts,  JAMES JR  was a registered sex offender, having been convicted in Whatcom County Superior Court of indecent liberties in 2015.  In the 2015 case, JAMES JR was convicted of engaging in sexual acts with a minor female who was then 13-years-old.

            The cases came to light when the minor female reported the sex acts to a trusted adult, and the investigation revealed that JAMES JR. was aware of the victims’ young age at the time he engaged in sexual acts.

            The case was investigated by the Lummi Police Department and the FBI.  The case is being prosecuted by Assistant United States Attorneys J. Tate London and Chantelle D. Dial.  Mr. London is a Tribal Liaison for the U.S. Attorney’s Office. Ms. Dial is an Indian Country Fellow, part of the Attorney General’s Honors Program.

Chicago Brothers Sentenced to 15 and 12 Years in Federal Prison for Airplane Loan Scam

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BOSTON – Two Chicago brothers were sentenced today in federal court in Worcester for defrauding and attempting to defraud banks out of $4 million in an airplane loan scheme.

Ryan Miller, 32, and Dusten James Miller, 31, were sentenced by U.S. District Court Judge Timothy S. Hillman to 15 years in prison and five years of supervised release, and 12 years in prison and five years of supervised release, respectively. In February 2018, the brothers were convicted of one count of conspiracy to commit bank fraud, one count of conspiracy to commit money laundering, and one count of conspiracy to commit identity theft. Ryan Miller was also convicted of one count of bank fraud, one count of money laundering, and one count of aggravated identity theft.

From March 2013 through March 2016, Ryan and Dusten Miller, along with other co-conspirators, were engaged in a scheme to defraud banks by obtaining and attempting to obtain fraudulent airplane loans. Using stolen identities, the brothers posed as the buyers and the sellers of airplanes; they filled out fraudulent loan applications and provided the banks with false and fraudulent documents in support of those applications, such as tax returns, bank statements, driver’s licenses and Social Security cards. Once the loans were approved, the brothers arranged for the loan documents to be sent to an email address they created, or a physical address - usually a virtual office location they set-up. The Millers then signed and notarized the loan documents and sent them back to the banks. They also provided the banks with instructions to wire the fraudulent loan proceeds to multiple bank accounts in the name of sham corporations the brothers set up. Once the funds were wired to those accounts, the brothers used the funds to purchase luxury cars and homes, to fund private chauffeurs, and to buy Rolex watches and other luxury items. In total, the brothers defrauded at least five banks and used the personal identifying information of at least nine individuals from all across the country.

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Thomas J. Ullom, Special Agent in Charge of the Chicago Regional Office, U.S. Department of Transportation, Office of Inspector General, made the announcement. Assistant U.S. Attorneys Karin M. Bell and Greg A. Friedholm of Lelling’s Worcester Branch Office prosecuted the case.

Hilliard Man who Pretended to be Bounty Hunter & Federal Agent Pleads Guilty to Kidnapping, Other Crimes

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COLUMBUS, Ohio – Shane Ryan Hammond, 26, of Hilliard, Ohio, pleaded guilty in U.S. District Court to impersonating a federal agent, kidnapping, wire fraud and interstate transportation of a stolen vehicle.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Michael B. Stuart, United States Attorney for the Southern District of West Virginia, and Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the plea offered today before U.S. Magistrate Judge Norah McCann King.

According to court documents, from at least March 2016 until May 2017, Hammond owned and operated “Midwest Fugitive Task Force” located in Columbus. In this capacity, he was often referred to as Commander or Lieutenant Hammond and sought out employment opportunities as a bail recovery agent for himself and other employees.

Hammond was not actually licensed as a bounty hunter, nevertheless, on at least nine occasions, Hammond knowingly and unlawfully kidnapped a person for reward. All of these individuals were considered “bail skips” and Hammond had been hired by a bail bondsman in West Virginia to apprehend the individuals and return them to a designated jail facility for a monetary reward.

“Hammond would often dress in an all-black tactical uniform with a black ballistic vest,” U.S. Attorney Glassman said. “He typically carried multiple handguns, throwing knives, a Taser and usually one or two law-enforcement-style badges with ‘SWAT’ shoulder patches and a large back patch reading ‘AGENT.’ But he was absolutely not a federal agent – or a law enforcement officer of any kind.”

For example, in May 2017, Hammond kidnapped an individual outside of the individual’s grandmother’s home in Columbus. He pushed himself into the grandmother’s residence, heavily armed, and ran to the male individual with his AK47 up and pulled out his Taser (Hammond does not have any formal training with either of these weapons). He ordered the individual to the ground, kicked the individual’s drink and threatened the individual not to do “anything stupid” or he would get hurt.

As another example, when searching for a female in Canton, Ohio in September 2016, Hammond handcuffed the individual’s mother after forcibly entering the home and pointing a rifle at her. He indicated he was a Federal Bounty Hunter and told her she had the right to remain silent.

He then handcuffed the female’s father and said he was taking the father with him to help look for his daughter. Hammond reiterated that if the father did not go with him, he would take his wife to jail.

Hammond placed the handcuffed father into his vehicle and did not return him until the following morning – still in handcuffs. In fact, on the drive back, Hammond was pulled over for speeding and Hammond told the Trooper he was working for a federal agency.

Hammond routinely represented himself to others as a member of law enforcement, pretending to be a member of the FBI Joint Terrorism Task Force, working with Homeland Security, a SWAT officer and a federal agent, generally.

For example, in March 2017 in the Cincinnati area, Hammond told a female “you realize lying to a federal agent is a crime” and then, “don’t lie to a federal agent, that’s four years in jail.” He then added, “Don’t get an attitude. I’m just letting you know if I come back and I find out you’re involved I’m going to arrest you, you got me.” Making false statements to an official of the United States is actually a crime punishable by up to five years in prison.

In the same month, Hammond also visited an apartment complex in Jackson, Ohio and called one of the managers to explain that he had a warrant and was seeking a fugitive involved in the shooting of a Huntington, W.Va. police officer, although all of this statement was untrue. He told management he had called the Jackson Police and that the police would stay out of his way because he was a federal investigator and he knew what to do.

His false representations at the apartment complex led to the apartment management sharing H.U.D. files with Hammond and Hammond’s search of the apartment of an elderly female, to whom he identified himself as “Commander Hammond with the U.S. Government Fugitive Task Force.”

Hammond was charged by a Bill of Information in October 2017 and, in January 2018, failed to appear for his arraignment.

Through their efforts to locate Hammond, FBI agents uncovered additional criminal activity – namely, wire fraud and interstate transportation of a stolen vehicle.

Hammond devised a scheme to defraud investors of more than $48,000, telling investors he had secured a government contract for $79 million to provide physical security to the Norfolk Naval Base in Virginia. Hammond represented that he needed start-up money for the business and legal costs until he would receive the $79 million a few months later.

One investor also allowed Hammond to borrow his Chevrolet truck. Hammond then re-registered the truck into his own name, stole it and drove it to West Virginia, where he was later arrested.

He pleaded guilty to a Superseding Bill of Information, which included one count each of kidnapping, impersonating an agent of the United States and interstate transportation of a stolen vehicle, and two counts of wire fraud. Hammond also pleaded guilty to one additional count of kidnapping, as charged by the Southern District of West Virginia in a Bill of Information.

U.S. Attorney Glassman commended the investigation of this case by the FBI and Assistant United States Attorney Jessica W. Knight, who is representing the United States in this case.

74 Arrested in Coordinated International Enforcement Operation Targeting Hundreds of Individuals in Business Email Compromise Schemes

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42 Alleged Fraudsters Arrested in the United States

Federal authorities announced today a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens.  Operation Wire Wire, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury and the U.S. Postal Inspection Service, was conducted over a six month period, culminating in over two weeks of intensified law enforcement activity resulting in 74 arrests in the United States and overseas, including 29 in Nigeria, and three in Canada, Mauritius and Poland.  The operation also resulted in the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.

BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments.  The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams.  BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network.  Foreign citizens perpetrate many BEC scams.  Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world.

“Fraudsters can rob people of their life's savings in a matter of minutes,” said Attorney General Sessions. “These are malicious and morally repugnant crimes. The Department of Justice has taken aggressive action against fraudsters in recent months, conducting the largest sweep of fraud against American seniors in history back in February. Now, in this operation alone, we have arrested 42 people in the United States and 29 others have been arrested in Nigeria for alleged financial fraud. And so I want to thank the FBI, nearly a dozen U.S. Attorneys' Offices, the Secret Service, Postal Inspection Services, Homeland Security Investigations, the Treasury Department, our partners in Nigeria, Poland, Canada, Mauritius, Indonesia, and Malaysia, and our state and local law enforcement partners for all of their hard work. We will continue to go on offense against fraudsters so that the American people can have safety and peace of mind.”

“This operation demonstrates the FBI’s commitment to disrupt and dismantle criminal enterprises that target American citizens and their businesses,” said FBI Director Christopher A. Wray. “We will continue to work together with our law enforcement partners around the world to end these fraud schemes and protect the hard-earned assets of our citizens. The public we serve deserves nothing less.”

“The Secret Service remains committed to aggressively investigating and pursuing those responsible for cyber-enabled financial crimes,” said U.S. Secret Service Director Randolph “Tex” Alles.  “Although the explosive expansion of the cyber domain has forced us to develop innovative ways of conducting these types of investigations, our proven model remains the same.”

“FinCEN has been a leader in the fight against BEC and other cyber-enabled crime,” said FinCEN Director Kenneth A. Blanco. “Since 2014, working with our domestic and international partners, our Rapid Response Program has helped recover over $350 million stolen from innocent Americans.  We must continue to be smarter, quicker, and better than the criminals that we face every day.  Today’s action is a victory, but it will take vigilance, time, and resources to take this fight into the future.  In defense of the victims of these crimes, we are ready for the challenge.”

“The U.S. Postal Inspection Service has a long history of successfully investigating complex fraud and corruption cases,” said Chief Postal Inspector Guy Cottrell. “We are proud to work alongside our fellow law enforcement partners in major efforts, such as Operation Wire Wire, to target those individuals who take advantage of the American public for illegal profits. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are. Postal Inspectors will continue to work tirelessly to protect our customers from fraud.”

A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business.  The devastating effects these cases have on victims and victim companies, affect not only the individual business but also the global economy.  Since the Internet Crime Complaint Center (IC3) began keeping track of BEC and its variant, Email Account Compromise (EAC), as a complaint category, there has been a loss of over $3.7 billion reported to the IC3.  BEC and EAC is a prevalent scam and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located.

Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters.  The money is wired or sent by check to the money mule who then deposits it in his or her own bank account.  Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster.  The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams.

Starting in January 2018, this coordinated enforcement action targeted hundreds of BEC scammers.  In addition, law enforcement agents executed over 51 domestic actions including search warrants, money mule warning letters, and asset seizure warrants totaling nearly $1 million.  Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, charged 15 alleged money mules for their role in defrauding victims.  These money mules were employed by the fraudsters to launder their ill-gotten gains by draining the funds into other accounts that are difficult to trace.

Among those arrested on federal charges in BEC schemes include:

    Following an investigation by the FBI and the U.S. Secret Service, 23 individuals were charged in the Southern District of Florida with laundering at least $10 million from proceeds of BEC scams, including eight people charged in an indictment unsealed last week in Miami. These eight defendants are alleged to have conspired to launder proceeds from numerous BEC scams, totaling at least approximately $5 million, including approximately $1.4 million from a victim corporation in Seattle, as well as various title companies and a law firm.
    Following an investigation led by the FBI with the assistance of the IRS Criminal Investigation, Gloria Okolie and Paul Aisosa, both Nigerian nationals residing in Dallas, Texas, were charged in an indictment filed on June 6 in the Southern District of Georgia.  According to the indictment, they are alleged to have victimized a real estate closing attorney by sending the lawyer a spoofing email posing as the seller and requesting that proceeds of a real estate sale in the amount of $246,000 be wired to Okolie’s account.  They are charged with laundering approximately $665,000 in illicit funds.  The attorney experienced $130,000 in losses after the bank was notified of the fraud and froze $116,000.
    Adeyemi Odufuye aka “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz” and “Jefe,” 32, and Stanley Hugochukwu Nwoke, aka Stanley Banks,” “Banks,” “Hugo Banks,” “Banky,” and “Jose Calderon,” 27, were charged in a seven-count indictment in the District of Connecticut in a BEC scheme involving an attempted loss to victims of approximately $2.6 million, including at least $440,000 in actual losses to one victim in Connecticut.  A third co-conspirator Olumuyiwa Yahtrip Adejumo, aka “Ade,” “Slimwaco,” “Waco,” “Waco Jamon,” “Hade,” and “Hadey,” 32, of Toledo, Ohio, pleaded guilty on April 20 to one count of conspiracy to commit wire fraud.  Odufuye was extradited from the United Kingdom to the United States and on Jan. 3, pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Nwoke was extradited to the United States from Mauritius on May 25, marking the first extradition in over 15 years from Mauritius.  His case is pending.
    Richard Emem Jackson, aka Auwire, 23, of Lagos, Nigeria, was charged in an indictment filed on May 17 in the District of Massachusetts with two counts of unlawful possession of a means of identification as part of a larger fraud scheme. According to the indictment, on two occasions in 2017, Jackson is alleged to have possessed the identifications of two victims with the intent to commit wire fraud conspiracy.  In another case being prosecuted in the District of Massachusetts, a 25-year-old Fort Lauderdale, Florida man was indicted in federal court in Boston on June 6 on one count of money laundering conspiracy. According to the indictment, the individual was part of a conspiracy that engaged in wire fraud. It is alleged that in early 2018, the defendant’s co-conspirators gained access to email accounts belonging to a Massachusetts real estate attorney and sent emails to recipients in Massachusetts that “spoofed” the real estate attorney’s account in an attempt to cause the email recipient to transfer nearly $500,000, which was intended to be used for payment in connection with a real estate transaction, to a shell account belonging to a money mule recruited and controlled by the defendant.


The BEC scam is related to other forms of fraud such as:

    “Romance scams,” which lull victims to believe that their online paramour needs funds for an international business transaction, a U.S. visit or some other purpose;
    “Employment opportunities scams,” which recruits prospective employees for work-from-home employment opportunities where employees are required to provide their PII as new “hires” and then are significantly overpaid by check whereby the employees wire the overpayment to the employers’ bank;
    “Fraudulent online vehicle sales scams,” which convinces intended buyers to purchase prepaid gift cards in the amount of the agreed upon sale price and are instructed to share the prepaid card codes with the “sellers” who ignore future communications and do not deliver the goods;
    “Rental scams” occur when renters forward a check in excess of the agreed upon deposit for the rental property to the victims and request the remainder be returned via wire or check and back out of the rental agreements and ask for a refund; and
    “Lottery scams,” which involves persons randomly contacting email addresses advising them they have been selected as the winner of an international lottery.


The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN) and IRS Criminal Investigation.  U.S. Attorney’s Offices in the Districts of Central California, Connecticut, Eastern Virginia, Massachusetts, Nebraska, New Jersey, Southern Florida, Southern Georgia, Southern Texas, Eastern Pennsylvania, Eastern Washington, Western Pennsylvania, Western Tennessee, Western Washington, Utah, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria.  The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Caddo Parrish in Shreveport, Louisiana; Harris County, Texas and Los Angeles are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Canadian law enforcement including the Toronto Police Service, the Mauritian Attorney-General and the Commissioner of Police, Polish Police Central Bureau of Investigation, Indonesian National Police Cyber Crimes Unit, and the Royal Malaysia Police provided significant assistance. 

This operation, which was funded and coordinated by the FBI, serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents.  Attorney General Sessions expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.

Indianapolis Man Arrested for Threatening Boston Free Speech Rally Attendees in 2017

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Defendant allegedly posted an internet threat to shoot white attendees at rally

BOSTON – An Indiana man was arrested today in connection with posting a threat to shoot white attendees at the Boston Free Speech Rally held at the Boston Common in August 2017.

Eric M. Radulovic, 32, was indicted on one count of transmitting in interstate and foreign commerce a threat to injure the person of another. Radulovic was arrested this morning and will appear in federal court in Indiana this afternoon. He will appear in Boston on June 20, 2018.

According to the indictment, on or about Aug. 13, 2017, the day after violent events in Charlottesville, Va., that occurred immediately following the “Unite the Right” rally, a “Politically Incorrect” discussion board on 4chan.org promoted a Boston Free Speech Rally scheduled for Saturday, Aug. 19, 2017, on the Boston Common. The initial post invited “[l]ibertarians, conservatives, traditionalists, classical liberals, Trump supporters or anyone else who enjoys their right to free speech,” to attend, “network and befriend others who share your views, come for good food, and come to stand up against ANTIFA terrorism.” ANTIFA is short for “anti-fascists,” a movement of people who generally oppose the white supremacist and “Alt-Right” movements, sometimes by protesting events or engaging in property damage or violence.

In addition, the initial post warned people not to bring “any illegal weapons” or to “behave in a manner that makes you look bad.” It also warned people not to “[c]ome planning to instigate violence,” and that “[a]ny fights must be strictly defensive.” After the Boston Rally was announced on 4chan.org, participants in the discussion board discussed whether the Boston rally would face similar political movements and violence seen at the Charlottesville rally. The first posted response warned, “Be prepared everyone.  this can get bad.”  Later posts included predictions of violence, attempts to persuade against violence, and discussions of possible violence.

Radulovic, an Indiana resident who lives outside Indianapolis, was allegedly aware of and upset about the death following the Charlottesville Rally. As a result, on Aug. 13, 2017, Radulovic, allegedly posed as a member of the “Alt-Right” or white supremacist movement, anonymously posting a message on the 4chan.org discussion board regarding the Boston Rally in which he said he would shoot whites at the rally as a means to obtain sympathy for the “Alt-right” movement:  “I’m going to bring a Remington 700 and start shooting Alt-right guys. We need sympathy after that landwhale got all the liberals teary eyed, so someone is going to have to make it look like the left is becoming more violent and radicalized. It’s a false flag for sure, but I’ll be aiming for the more tanned/dark haired muddied jeans in the crowd so real whites won’t have to worry.” The indictment alleges further that Radulovic posted this for the purpose of issuing a threat and knowing that it would be interpreted as a threat.

The charge of transmitting in interstate and foreign commerce a threat to injure the person of another provides for a sentence of no greater than five years in prison, three 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 other statutory factors.

United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge Federal Bureau of Investigation, Boston Field Division made the announcement today. The FBI Boston conducted the investigation with assistance from the Indianapolis Joint Terrorism Task Force. Assistant U.S. Attorneys Scott Garland of Lelling’s National Security Unit and Anne Paruti of Lelling’s Major Crimes Unit are prosecuting the case.

The details contained in the indictment are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.  

New Town Man Indicted For Murder

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BISMARCK – United States Attorney Christopher C. Myers announced that Donovan Lawrence Duchaine, age 26, from New Town, ND, was charged by an Indictment returned on June 6, 2018, for Murder and Assault with a Dangerous Weapon.

The Indictment alleges that on May 25, 2018, Duchaine, an enrolled member of the Three Affiliated Tribes, killed David Rios, age 29, also from New Town, ND, by stabbing him with a knife outside a residence in New Town, ND.  Duchaine’s Initial Appearance and Arraignment was before Magistrate Judge Charles Miller, at 4:00 p.m., May 25, 2018.  On June 1, 2018, the defendant waived his Detention Hearing and Judge Miller detained him pending trial.

The Indictment in this case is not evidence of guilt. The defendant is presumed innocent unless or until proven guilty beyond a reasonable doubt at trial.

This case was investigated by the Federal Bureau of Investigation; the Three Affiliated Tribes Police Department; and the Ward County Sheriff’s Department.

This case is being prosecuted by Assistant U.S. Attorney Jonathan J. O’Konek.

Philadelphia Man Charged with Bribing Sheriff’s Office Employe

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PHILADELPHIA – An indictment was unsealed today charging a Philadelphia man with bribing a Philadelphia Sheriff’s Office employee in exchange for inside information about Sheriff’s sales, announced U.S. Attorney William M. McSwain.

Behzad Sabagh was charged by indictment with one count of conspiracy to commit honest services wire fraud and six counts of honest services wire fraud. The indictment alleges that from September 2012 to August 2013, Sabagh and others paid bribes to a Philadelphia Sheriff’s Office employee in exchange for assistance with their business of purchasing properties at Sheriff’s sales.  Specifically, in exchange for bribes, the defendant received an updated Sheriff=s sale auction list which showed whether property sales had been stayed or postponed, allowing the defendant to avoid spending time evaluating properties that would not be sold.

“When the services of a public employee are purchased for personal gain, it is our duty to hold accountable those who attempted to game the system,” said U.S. Attorney McSwain.

If convicted, Sabagh faces a maximum possible sentence of 140 years’ imprisonment, 3 years of supervised release, and a $1,750,000 fine.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation Division, and is being prosecuted by Assistant United States Attorneys Sarah Grieb and Christopher Diviny.

Toledo man indicted for selling carfentanil, heroin, fentanyl and crack cocaine

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A Toledo man was charged in a 14-count federal indictment with conspiring to distribute carfentanil, fentanyl and heroin.

Antoine Neal, aka Antoinne Neal, 40, conspired with others and sold fentanyl, heroin, carfentanil and crack cocaine between June and October 2017, according to the indictment.

Neal sold more than 26 grams of carfentanil over 10 days in 2017, according to the indictment.

“This defendant sold enough carfentanil to kill thousands of people, not to mention the other deadly drugs he sold,” U.S. Attorney Justin Herdman said.

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

This case was investigated jointly by members of the Toledo Police Department, the Drug Enforcement Administration and the Federal Bureau of Investigation. The case is being handled by Assistant U.S. Attorney Alissa M. Sterling.    

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

Managing Partner And Principal Of Accounting Firm Charged With Aiding And Abetting Union Embezzlement Scheme And Making False Filings With The U.S. Department Of Labor

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Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Michael C. Mikulka, Special Agent-in-Charge, New York Region, U.S. Department of Labor (“DOL”) Office of Inspector General, announced today the arrests of SALVATORE ARMAO, the founder and managing partner of an accounting firm (the “Firm”), and KAREN AUER, a principal at the Firm, for aiding and abetting the embezzlement of over $100,000 from a labor union (the “Union”) and its employee welfare benefit plan (the “Plan”), and for making false filings with DOL to conceal the embezzlement scheme.  AUER was also charged with making false statements to a DOL agent during the investigation of the embezzlement scheme.  Both defendants surrendered this morning in Manhattan and are expected be presented today before U.S. Magistrate Judge Sarah Netburn.

U.S. Attorney Geoffrey S. Berman said:  “Salvatore Armao and Karen Auer are professional accountants who allegedly facilitated and concealed a long-running union embezzlement scheme by knowingly submitting false filings with the Department of Labor and the Internal Revenue Service.  Accountants and auditors like Armao and Auer are supposed to serve as safeguards against labor fraud, not facilitate it.”

DOL-OIG Special Agent-in-Charge Michael C. Mikulka said:  “The Office of Inspector General is responsible for identifying and reducing labor racketeering and corruption in employee benefit plans, labor-management relations, and internal union affairs. We will continue to work with our law enforcement partners to investigate these types of allegations.”

According to the allegations in the Complaint[1]:

From at least in or about 2010 through in or about 2014, the president of the Union, who also served as a trustee of the Plan (the “President-Trustee”), repeatedly used Union funds to pay for his personal expenses, including payments for spa treatments, a gym membership, a second car, medical charges, unrelated union dues for an actors’ union, purchases from retail establishments, payments to personal credit cards, and ATM cash withdrawals.  The President-Trustee used his Union credit card to pay for personal expenses and then “reimbursed” the Union with funds transferred from the Plan.  In total, the President-Trustee embezzled over $100,000 from the Union over approximately three years.

During the period of the embezzlement, the Firm served as the accountant and auditor for the Union and the Plan.  To facilitate and conceal the President-Trustee’s embezzlement, ARMAO and AUER falsely classified as “loans” the personal expenses for which the President-Trustee paid using Union and Plan funds in accounting records and on DOL filings for the Union.  ARMAO falsely classified the President-Trustee’s personal expenses as loans for at least five years, while AUER did so for at least one year.  ARMAO and AUER also provided false information on DOL filings for the Plan, concealing from DOL the President-Trustee’s prohibited transfers of tens of thousands of dollars from the Plan to the Union which, in turn, facilitated and concealed the President-Trustee’s use of Union funds to pay his personal expenses.  ARMAO repeatedly caused these false filings to be made to DOL despite being a Certified Fraud Examiner.

During the DOL’s investigation of the embezzlement scheme, ARMAO and AUER were interviewed by DOL.  ARMAO admitted that he was aware of the President-Trustee’s use of Union assets to pay for personal expenses based upon his review of records that showed that the President-Trustee used Union funds to pay for his family vacations and his wife’s car payments, and then used the Plan to reimburse the Union.  During her interview, AUER lied about a false response on a DOL form that AUER and ARMAO caused to be filed with the DOL.

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SALVATORE ARMAO, 64, of Howard Beach, New York, and KAREN AUER, 47, of Bethpage, New York, are each charged with one count of aiding and abetting embezzlement from a labor organization, one count of conspiracy to make false statements in employee benefit plan records and reports, and one count of making false statements in employee benefit plan records and reports.  AUER is also charged with making false statements to a federal agent.  Each of the four counts carries a maximum sentence of five years in prison.  The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Berman thanked the DOL’s Office of Inspector General, Employee Benefits Security Administration, Office of Chief Accountant, and Office of Labor-Management Standards for their outstanding work on this investigation.  Mr. Berman also expressed gratitude to the Federal Bureau of Investigation and the Department of Justice’s Labor-Management Racketeering Unit of the Organized Crime and Gang Section for their assistance.  Mr. Berman added that the investigation is continuing.

This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit.  Assistant United States Attorney Michael D. Neff is in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.


[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Jury Convicts Former Sheriff’s Deputy of Child Pornography Possession

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SYRACUSE, NEW YORK – A jury today voted to convict Peter W. Farnum, age 41, of Clifton Park, New York, of possessing child pornography, following a 2-week trial.

The announcement was made by United States Attorney Grant C. Jaquith and Janelle M. Miller, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).

The evidence at trial established that Farnum, a former sergeant with the Saratoga County Sheriff’s Office, possessed more than 1,000 image and video files on his family computer that contained child pornography.  These included, among many others, image files that Farnum imported through the computer’s RealPlayer application while he conducted online research related to his position with the Sheriff’s Office and while his wife was in the hospital.

Following the verdict, Senior United States District Judge Norman A. Mordue remanded Farnum to custody pending sentencing on a date to be determined. Farnum faces up to 10 years in prison, a maximum fine of $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life.  A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Farnum will also have to register as a sex offender.

This case was investigated by the FBI, with assistance from the Saratoga County Sheriff’s Office.   The case is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.

Long Island Bloods Gang Leader Sentenced to 30 Years in Prison for Trafficking Heroin and Crack, Shooting Rival Drug Dealer

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Defendant Conducted Drive-By Shooting, Then Hid the Weapon under a Child’s Mattress

Earlier today, in federal court in Central Islip, Andre Chandler, a Bloods street gang leader, also known as “Mac Dre,” was sentenced by United States District Judge Joan M. Azrack to 366 months’ imprisonment for conspiracy to distribute crack and heroin, discharging a firearm in connection with that conspiracy, illegal possession of three firearms, and possession with intent to distribute crack, heroin, oxycodone, and hydrocodone, and a related violation of the conditions of his supervised release.  Chandler was convicted by a federal jury in October 2016 following a two-week trial.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Ashan M. Benedict, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), New York Field Division, and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.

 “Any gang member who thinks they can sell drugs and commit acts of violence on Long Island without consequence should think about where Andre Chandler will spend the next 30 years,” stated United States Attorney Donoghue.  “This Office and our partners are completely committed to relentlessly pursuing and prosecuting gang members to protect our community.” Mr. Donoghue thanked the FBI Long Island Gang Task Force, NCPD Gang Investigations Squad and Nassau County District Attorney’s Office Special Operations Bureau for their assistance in the investigation.  The FBI Long Island Gang Task Force also includes the Nassau County Sheriff’s Department, Suffolk County Police Department, Suffolk County Sheriff’s Department, Rockville Center Police Department, Suffolk County Probation Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Hempstead Police Department, New York State Police and U.S. Immigration and Customs Enforcement – Homeland Security Investigations.

“The belief these drug dealers and gang members have that they control territory, and have to defend their turf by shooting, and killing rivals defies comprehension,” stated FBI Assistant Director-in-Charge Sweeney.  “While they’re playing at who is the nastier, meaner gangster, people are developing debilitating and deadly additions to their wares.  The FBI Long Island Gang Task Force has proven with several of these gang investigations that we will do all we can to safeguard the community from more violence by going after the leadership, and keeping them from returning to their so-called turf.”

“Chandler as alleged showed no regard for life or the rule of law. Today’s sentence sends a strong message to those like him who choose that reckless and dangerous path,” stated ATF Special Agent-in-Charge Benedict.  “I would like to thank our federal, state and local law enforcement partners that stand with ATF as one united front to protect our citizens from individuals who look to do harm to their fellow citizens. I would also like to extend my gratitude to the United States Attorney’s Office for their work in prosecuting the case.”

According to evidence presented at trial and court filings, Chandler began selling heroin and crack shortly after his release from prison in July 2014, declaring parts of Hempstead, New York, to be “my blocks, my streets.”  On December 13, 2014, Chandler carried out a plan to hunt down a rival drug dealer, luring the dealer to his car and then shooting him repeatedly with a 9mm. semiautomatic handgun.  Several weeks later, in January 2015, officers from the United States Probation Department searched Chandler’s residence and car, discovering heroin, cocaine base, oxycodone, hydrocodone, equipment for packaging narcotics for sale, and multiple firearms, including the same 9mm. semiautomatic pistol that Chandler had used to shoot the rival dealer.  Law enforcement officers found that handgun hidden under the mattress in a young child’s bedroom.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorneys’ Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.

The government’s case is being handled by the Office’s Long Island Criminal Division.  Assistant United States Attorneys Lara Treinis Gatz and David K. Kessler are in charge of the prosecution. 
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