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U.S. Customs and Border Protection (CBP) officers in Louisville are seeing nightly counterfeit jewelry shipment arriving from locations known to produce fakes. On August 17, CBP Louisville seized a shipment of jewelry deemed to be counterfeit by CBP’s Centers of Excellence and Expertise, the agency’s trade experts.

Based on intelligence gathering and past shipments, CBP officers inspected the cargo and found 200 Louis Vuitton pair of hoop earrings, 190 Chanel pair of hoop earrings, 282 Dior pair of hoop earrings, 300 Yves Saint Laurent pair of hoop earrings, 1,284 Louis Vuitton pair of diamond earrings, 1,680 Gucci pair of diamond earrings, and 1,716 Chanel pair of diamond earrings. The earrings, arriving from Hong Kong, would have been worth a total of $3.51 million had they been genuine.

“This just goes to show you how criminals are using express consignment facilities to ship their items to unsuspecting consumers damaging our economy,” said LaFonda D. Sutton-Burke, Director, Field Operations-Chicago Field Office. “I want to congratulate our officers for their outstanding job. CBP is the first line of defense, and we will continue to protect the safety of consumers.”

The rapid growth of e-commerce enables consumers to search for and easily purchase millions of products through online vendors, but this easy access gives counterfeit and pirated goods more ways to enter the U.S. economy. U.S. consumers spend more than $100 billion every year on intellectual property rights (IPR) infringing goods, falling victim to approximately 20% of the counterfeits that are illegally sold worldwide.

Intellectual property is a critical component of the U.S. economy, and Thomas Mahn, Louisville Port Director, emphasized the necessary role CBP plays in protecting the economy and consumer safety and health.

“Legitimate trade strengthens our economy,” said Mahn, “but counterfeit and pirated goods threaten American jobs and innovation. Protecting intellectual property rights remains a priority trade issue for CBP, and our officers are committed to American consumers and our economic security.”

BEAUMONT, Texas – A Florida-based pharmaceutical president has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Adam P. Runsdorf, 57, of Boca Raton, Florida, pleaded guilty to conspiracy, trafficking in counterfeit drugs, and money laundering conspiracy today before U.S. Magistrate Judge Christine L. Stetson.

According to the indictment, from April 2014 until August 2021, Runsdorf, the owner and president of Woodfield Pharmaceutical LLC based in Boca Raton, Florida, conspired with drug traffickers in Houston, Texas, to distribute misbranded and counterfeit cough syrup.  Runsdorf’s company pleaded guilty to the same charges today before Judge Stetson.

According to information presented in court, Byron A. Marshall, 43, of Houston, utilized Woodfield Pharmaceutical’s manufacturing facility and employees in Houston to produce more than 500,000 pints of counterfeit cough syrup. Marshall’s drug trafficking organization sold the counterfeit drugs across Texas, Louisiana, Mississippi, Alabama, Georgia, South Carolina, Tennessee, Wisconsin, California, Florida, Arkansas, and Ohio. Prices generally ranged from $100 to more than $1,000 per one-pint bottle. Depending on the market and brand of cough syrup, prices went as high as $3,800 to $4,000 per pint.

During the conspiracy, Marshall communicated directly with Runsdorf regarding production of the counterfeit cough syrup.  At Runsdorf’s request, Marshall paid Woodfield Pharmaceutical in cash only, and Woodfield employees mailed the cash directly to Runsdorf in Boca Raton.

Six codefendants, including Marshall, have already pleaded guilty and are awaiting sentencing.

Runsdorf faces up to 20 years in federal prison at sentencing.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

“In April 2014, Actavis Holdco US discontinued production of Actavis cough syrup due to its widespread abuse by recreational drug users,” said U.S. Attorney Brit Featherston.  “After that, the street value of Actavis increased to more than $3,000 per pint.  In his greed, Adam Runsdorf, owner and president of Woodfield Pharmaceutical, used his position and connections to enable drug traffickers in Houston to produce thousands of gallons of counterfeit Actavis, labeled to be nearly identical to the discontinued product.  The conspirators in this case sought to capitalize on the scarcity of Actavis and other prescription cough syrups by marketing counterfeit versions to street-level abusers.”

“Today Adam Runsdorf pled guilty for his role as the CEO of Woodfield Distributors to illegally distributing thousands of controlled substances into our communities, Runsdorf misused the privilege granted by the DEA to handle controlled substances by conspiring with street level drug dealers to manufacture fake drug labels to help drug dealers profit,” said DEA Special Agent in Charge of the Houston Division Daniel C. Comeaux.” This case is another example of the DEA’s continued commitment to combat our nation’s opioid crisis and ensure that registrants remain compliant regardless of their position. We will continue to aggressively pursue and hold accountable anyone attempting to profit from driving overdoses and violent crime in our communities.”

“This is an important victory for the American public. Not only is Adam Runsdorf going to jail for his crimes, but he and his business, Woodfield Pharmaceutical, will forfeit to the government over $8.4 million of illegal proceeds,” said Christopher J. Altemus, Jr., Special Agent in Charge, IRS Criminal Investigation, Dallas Field Office. “IRS Criminal Investigation special agents are committed to using their forensic accounting skills to help unravel complex fraud and money laundering schemes in order to financially disrupt and dismantle major drug trafficking organizations. We will continue to provide our financial expertise as we work alongside our law enforcement partners to bring criminals like Mr. Runsdorf to justice.”

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.

This case is being investigated by the Drug Enforcement Administration; U.S. Food and Drug Administration Office of Criminal Investigations; Internal Revenue Service-Criminal Investigation; Federal Bureau of Investigation; U.S. Marshals Service; Houston Police Department; Galveston Police Department; Galveston County Sheriff’s Office; Dickinson Police Department; League City Police Department; Pearland Police Department; Pasadena Police Department; Texas City Police Department; Harris County Precent #2; Brazoria County Sheriff’s Office; Fort Bend County Sheriff’s Office; Liberty County Sheriff’s Office; and the Texas National Guard.  This case is being prosecuted by Assistant U.S. Attorneys John B. Ross and Jonathan C. Lee.

Gage Pascoe was sentenced to 68 months in federal prison for distributing pills laced with fentanyl that caused a Walnut Creek woman’s overdose death, announced United States Attorney Stephanie M. Hinds and Drug Enforcement Administration Special Agent in Charge Wade R. Shannon.  The sentence was handed down by United States District Judge William Alsup.

Pascoe, 23, of Pittsburg, California, pleaded guilty on February 14, 2022, to the charge of distributing fentanyl.  In his plea agreement, Pascoe admitted that on the night of June 16, 2020, a former high school classmate came to his house to buy oxycodone pills.  He sold her thirteen M30 pills, which lab tests later showed were laced with deadly fentanyl.  The next morning the victim was found dead in her bed, and the baggie containing the M30s that Pascoe sold to the victim was found in her bedroom.  Pascoe agreed in his plea agreement that the victim ingested the M30s he sold her and as a result suffered an overdose of fentanyl.

The government filed a sentencing memorandum asserting that while Pascoe did not intentionally cause his high school classmate’s death, her death was the product of Pascoe’s reckless disregard for her safety.  Pascoe told the victim he would buy the oxycodone pills from a street source he referred to as his “other connect.”  The government pointed out that dealing in M30 oxycodone pills bought on the street is extremely dangerous.  According to DEA, counterfeit M30 pills routinely contain fentanyl, and four out of every ten such pills contain a potentially lethal dose of fentanyl.  A lethal dose can be miniscule, as little as two milligrams.  Pascoe essentially “played Russian roulette,” the government asserted, but it was the victim who suffered the fatal consequences of Pascoe’s reckless, grossly negligent conduct.

In addition to the 68 month prison term, U.S. District Judge Alsup ordered Pascoe to serve five years of supervision following release from federal prison and to pay restitution to the family of the victim for funeral costs.

Assistant U.S. Attorneys Alexandra Shepard and Ross Weingarten prosecuted the case with the assistance of Andy Ding and Jasmine Sanders.  The prosecution is the result of an investigation by DEA and the Walnut Creek Police Department.

One Pill Can Kill:  Beware of pills bought on the street. Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that purport to mimic the effects of Oxycodone, Percocet, and other drugs and can typically be obtained at a lower cost than the genuine drugs.  However, very small variations in the amount or quality of fentanyl creates huge effects on the potency of the counterfeit pills and can easily have lethal consequences.  Fentanyl has now become the leading cause of drug overdose deaths in the United States.  Counterfeit, fentanyl-laced pills are commonly shaped and colored to resemble pills that are sold legitimately at pharmacies. For example, counterfeit pills known as M30s mimic Oxycodone and routinely contain fentanyl.  These tablets are round and often light blue in color, though they come in many other colors, and have “M” and “30” imprinted on opposite sides of the pill.

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DOMINIC COLON-BROWN, 28, of Farmington, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months of imprisonment, followed by three years of supervised release, for trafficking firearms that were stolen in Florida to Connecticut.  Judge Meyer also ordered Colon-Brown to pay a $2,200 fine.

According to court documents and statements made in court, in January 2021, Colon-Brown sold a firearm to a convicted felon.  He then conspired with Julian Judge and another individual to obtain firearms in Florida and sell them in Connecticut.  In late February 2021, Colon-Brown and Judge drove to Florida, obtained three handguns and transported them back to Connecticut.  Colon Brown and Judge knew the firearms were stolen or otherwise illegally obtained.

On March 8, 2021, law enforcement recovered the three firearms, as well as more than 100 rounds of ammunition and approximately 60 grams of cocaine, during a search of a New Britain apartment.

During the investigation, Colon-Brown and his associates were captured in recorded conversations discussing the illegal acquisition and sale of firearms.  Colon-Brown and Judge also posted photos of themselves on social media in possession of firearms.

Colon-Brown was arrested on May 27, 2021.  On January 20, 2022, he pleaded guilty to one count of transporting stolen firearms across state lines.

Judge, of New Britain, pleaded guilty to the same charge and, on May 27, 2022, he was sentenced to 24 months of imprisonment and ordered to pay a $3,000 fine.

This investigation has been conducted by the FBI’s Northern Connecticut Gang Task Force, New Britain Police Department, Farmington Police Department, West Hartford Police Department and Pasco County (Fla.) Sheriff’s Office.  The case is being prosecuted by Assistant U.S. Attorney Angel M. Krull.

This prosecution 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 gun violence, and to make our neighborhoods safer for everyone.  In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: Fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

MIAMI – Homeland Security Investigations (HSI) Miami announced Aug. 17 efforts to curb the increased flow of weapons, weapon parts and ammunition to Haiti and the Caribbean. Anthony Salisbury, special agent in charge of HSI Miami, along with Department of Homeland Security (DHS) partners made the announcement.

“HSI and our partners will investigate and seek to prosecute any individuals involved in illegal arms trafficking,” said Salisbury. “Today we make it very clear that the United States, and in particular south Florida, is not open for business regarding the illegal trafficking of weapons.”

Partners included: Vernon T. Foret, director, field operations Miami/Tampa field offices; U.S. Customs and Border Protection (CBP); Rear Admiral Brendan C. McPherson, commander of the Seventh Coast Guard District; Timothy Emerick deputy director, Southeast Region, CBP Air and Marine Operations; Walter N. Slosar, chief patrol agent Miami Border Patrol Sector; Michelle Alvarez, first assistant U.S. attorney for Southern District of Florida; Jonathan Carson acting special agent in charge U.S. Department of Commerce Miami Field Office, Bureau of Industry and Security; Tyra J. Cunningham assistant special agent in charge Bureau of Alcohol Tobacco, Firearms and Explosives (ATF); and Maj. Fernand Charles, Miami Dade Police Department (MDPD), Organized Crime Bureau.

Over the last three months, HSI has seen a substantial increase in the number of weapons, along with a serious increase on the caliber and type of firearms, being illegally trafficked. Some of those weapons include .50 caliber sniper rifles, 308 rifles, and a belt fed machine gun.

In the wrong hands, these weapons could cause mass casualties. Because of this, HSI and counterparts within DHS, Department of Commerce, ATF, MDPD, and the U.S. Attorney for Southern District of Florida are vigorously pursuing this issue and implementing countermeasures. These measures include extra resources within HSI Miami, primarily through our Border Enforcement Security Taskforce (BEST) groups, charged with combating emerging and existing Transnational Criminal Organizations and increased inspections of U.S. export shipments to ensure compliance with federal export laws.

Agencies are also leveraging information developed from investigations and partnerships with foreign customs officials and police to target shipments and individuals that may be engaged in smuggling. These efforts not only concern the physical movement of illegal weapons but also the financial flows that support this illicit activity.

HSI recognizes this is an effort that goes well beyond law enforcement capabilities, which is why it encourages anyone with information about cross-border weapons trafficking to contact HSI at the HSI Tip-Line by calling 866-347-2423. Tips can be anonymous and there is potential reward money for accurate information. For more information on HSI Miami, follow @HSI_Miami.

TALLAHASSEE, FLORIDA – William K. Gordon, Jr., 28, originally of Cairo, Georgia, but living in Tallahassee, Florida, at the time of his arrest, was sentenced to 15 years in federal prison after pleading guilty to a conspiracy to distribute 50 grams or more of methamphetamine, one count of distribution of more than 50 grams of a mixture containing methamphetamine, and one count of distribution of 50 grams or more of methamphetamine. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.

“Methamphetamine distribution is a scourge on large and small communities of our district,” stated U.S. Attorney Coody. “We are committed to work with our law enforcement partners to identify and aggressively prosecute recidivist offenders who continue to distribute such these addictive, controlled substances. This sentence is further proof of this resolve.”

Evidence introduced at the sentencing hearing demonstrated that Gordon was obtaining methamphetamine from Georgia and selling it in Tallahassee, Florida. On March 17, 2021, members of the North Florida High Intensity Drug Trafficking Area (HIDTA) Capital Area Drug Response & Evaluation (CADRE) Initiative used a confidential source to purchase two ounces of methamphetamine from Gordon. Three days later, Gordon fled from officers of the Tallahassee Police Department, who were able to catch and arrest him. TPD officers found that Gordon had $2705 in his pants pocket at the time of his arrest, including twenty of the bills used for the March 17 controlled purchase. Despite being released on bond for his state charges, Gordon continued his narcotics distribution activities. On August 4, 2021, the North Florida HIDTA CADRE Initiative used a second confidential source to purchase three additional ounces of methamphetamine from Gordon. When arrested on August 6, 2021, officers identified and recovered 23 of the bills from Gordon which were used during the August 4 controlled purchase.

“Methamphetamine is a dangerous synthetic drug that has an incredibly destructive effect on our communities,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “The DEA Miami Field Division remains committed to working with our law enforcement partners to ensure Florida communities remain safe and healthy.”

Gordon’s federal prison sentence will be followed by 15 years of supervised release.

“The arrest and conviction of William K. Gordon is a major step in getting some of the most addictive and deadly drugs out of Leon County,” said Sheriff Walt McNeil. “I am grateful for the hard work of our deputies and detectives who assisted in this case. LCSO and our law enforcement partners will continue to work closely to identify, arrest and prosecute these dealers to keep our communities safe.”

This case resulted from a joint investigation by the Drug Enforcement Administration and the North Florida HIDTA CADRE Initiative, with assistance from the Leon County Sheriff’s Office and the Tallahassee Police Department. Assistant United States Attorney James A. McCain prosecuted the case.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit https://www.justice.gov/usao/fln/index.html.

PHILADELPHIA – U.S. Customs and Border Protection officers seized a cocaine load, with a street value of about $1.3 million, hidden in the technical space of a passenger airplane that arrived at Philadelphia International Airport from the Dominican Republic on August 12.

No arrests have been made. An investigation continues.

CBP officers routinely examine aircraft spaces after flights arrive from overseas locations. During a search of the Santo Domingo, D.R., flight, officers discovered 16 brick-shaped objects concealed under a blanket in an avionics technical space. Officers extracted the bricks and took them to CBP’s inspection station after they completed the aircraft inspection.

Officers probed each of the bricks and discovered a white, powdery substance that field-tested positive for the properties of cocaine hydrochloride.

The cocaine weighed 18.894 kilograms, or a little more than 41 pounds, 10 ounces. The cocaine had a street value of about $1,330,000.

“Drug trafficking organizations work very hard to smuggle their dangerous drugs to the United States and Customs and Border Protection officers must be equally on point to intercept this community poison,” said Joseph Martella, Area Port Director for CBP’s Area Port of Philadelphia. “

During the three days leading up to the discovery, the aircraft made passenger service stops at domestic airports in New York City, Miami, San Diego, and Philadelphia before arriving from Santo Domingo.

CBP officers and agents seized an average of 4,732 pounds of dangerous drugs every day at our nation’s air, land and sea ports of entry. See what else CBP accomplished during a typical day in 2021.

CBP’s border security mission is led at ports of entry by CBP officers and agriculture specialists from the Office of Field Operations. CBP screens international travelers and cargo and searches for illicit narcotics, unreported currency, weapons, counterfeit consumer goods, prohibited agriculture, invasive weeds and pests, and other illicit products that could potentially harm the American public, U.S. businesses, and our nation’s safety and economic vitality. Please visit CBP Ports of Entry to learn more about how CBP’s Office of Field Operations secures our nation’s borders.

Learn more about CBP at www.CBP.gov.

U.S. Customs and Border Protection officers from the Otay Mesa Port of Entry found more than 12 million dollars’ worth of narcotics concealed within a shipment of heavy machinery gears.

On August 5, at 9:16 a.m., a 37-year-old truck driver applied for entry into the U.S. at the Otay Mesa commercial facility by presenting his valid Border Crossing Card.  The man was driving a 2009 Freightliner truck with a shipment manifested as heavy machinery gears.

After conducting an initial inspection, officers referred the driver and his truck along with the trailer for further inspection.

A CBP officer screened the conveyance with his assigned human/narcotics detector dog, which alerted to one of the mechanical gears within the shipment.  CBP officers conducted an intensive, physical inspection and noticed that one of the gears appeared to have inconsistent work done when compared to the other gears.

CBP officers further inspected the gear, removing and seizing 362 packages of cocaine, weighing 870.78 pounds, and 18 packages containing fentanyl, weighing 41.75 pounds, from inside the heavy machinery.

The total estimated street value of the discovered narcotics amounted to $12.8 million.

“No matter the size of the conveyance and concealing method smugglers attempt to use, our officers are keen at discovering even the most minuscule inconsistencies,” said Anne Maricich, CBP Acting Director of Field Operations in San Diego.  “Our officers will continue to prevent these deadly drugs from crossing our borders.”

The driver was turned over to U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI) for further processing.

CBP officers seized the narcotics along with the truck and trailer.

CBP officers at the border crossing in Southern California stop illegal activity while processing millions of legitimate travelers into the United States.  Those statistics can be found here: CBP-enforcement-statistics

A federal grand jury in the Central District of Illinois returned a nine-count indictment charging Domingo Francisco-Juan, Lorenza Domingo-Castaneda, and Catarina Domingo-Juan, siblings and Guatemalan nationals, with conspiracy to commit forced labor, forced labor, conspiracy to commit kidnapping, and kidnapping.

According to the allegations set forth in the indictment, between December 2015 and March 2021 the defendants conspired to bring two minor victims from Guatemala to the United States to work in Domingo-Castaneda’s and Domingo-Juan’s homes. The defendants compelled the victims to provide childcare, cooking, and cleaning within the homes and to work outside the homes in local hotels, factories, and a restaurant. As alleged, the defendants used false promises of a better life and an education to gain the permission of the victims’ mothers for their minor daughters to be brought to the United States to live with the defendants. Defendants Domingo-Castaneda and Domingo-Juan also allegedly forced a third victim to work in their homes and outside their homes at local businesses. The indictment further alleges that the defendants isolated the victims in their homes, restricted their communications with their family in Guatemala, and subjected them to physical, verbal and psychological abuse, among other coercive means.

If convicted on all charges, the defendants face sentences of up to life in prison as well as mandatory restitution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Gregory K. Harris of the Central District of Illinois and Acting Special Agent in Charge R. Sean Fitzgerald of Homeland Security Investigations made the announcement.

Homeland Security Investigations is investigating the case with the assistance of the Champaign Police Department, the Champaign County Sheriff’s Office, the U.S. Marshals Service, and the Champaign County State’s Attorney’s Office.

Assistant U.S. Attorney Bryan Freres for the Central District of Illinois and Trial Attorney Kate Alexander for the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.

Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.

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

The FBI, working with its state and local partners during two weeks in August, identified and located 84 minor victims of child sex trafficking and child sexual exploitation offenses and located 37 actively missing children during a nationwide enforcement campaign, dubbed “Operation Cross Country.”

“The Justice Department is committed to doing everything in our power to combat the insidious crimes of human trafficking that devastate survivors and their families,” said Attorney General Merrick B. Garland. “I am grateful to the dedicated professionals of the FBI and our law enforcement partners across the country for their tireless work to rescue trafficking survivors, including exploited children, to investigate and prosecute the perpetrators of trafficking crimes, and to provide the services and support that survivors need and deserve.”

The FBI-led nationwide initiative focused on identifying and locating victims of sex trafficking and investigating and arresting individuals and criminal enterprises involved in both child sex and human trafficking.

“Human trafficking is among the most heinous crimes the FBI encounters,” said FBI Director Christopher Wray. “Unfortunately, such crimes—against both adults and children—are far more common than most people realize. As we did in this operation, the FBI and our partners will continue to find and arrest traffickers, identify and help victims, and raise awareness of the exploitation our most vulnerable populations.”

In addition to the identification and location of adolescent victims, the FBI and its partners located 141 adult victims of human trafficking. Agents and investigators also identified or arrested 85 suspects of child sexual exploitation and human trafficking offenses. Those suspects identified will be subject to additional investigation for potential chargers. The average age of victims located in similar operations is approximately 15.5 years old, while the youngest victim discovered during this operation was 11 years old.

As part of Operation Cross Country XII, FBI special agents, intelligence analysts, victim specialists, and child adolescent forensic Interviewers working in conjunction with 200 state, local, and federal partners and the National Center for Missing and Exploited Children (NCMEC) conducted 391 operations over the two-week period.

“The success of Operation Cross County reinforces what NCMEC sees every day. Children are being bought and sold for sex in communities across the country by traffickers, gangs and even family members,” said Michelle DeLaune, President and CEO National Center for Missing & Exploited Children “We’re proud to support the FBI’s efforts to prioritize the safety of children.  This national operation highlights the need for all child serving professionals to continue to focus on the wellbeing of children and youth to prevent them being targeted in the first place.”

Victim specialists provide a “bridge” for victims who are wary of the system, help the victim establish positive relationships with law enforcement, and ensure the human trafficking victim population receives any appropriate resources available to them. Victim specialists also provide services based on the individual needs of human trafficking victims, to include crisis intervention, emergency food and clothing, transportation to receive emergency services, and locating shelter or housing. The task forces in the recent operation included federal, state, local and tribal partners, with efforts in every state and even a few U.S. territories.

Last Friday and Saturday, U.S. Customs and Border Protection (CBP) officers in Cincinnati seized three shipments of jewelry and watches deemed counterfeit by CBP’s Centers of Excellence and Expertise.

The first shipment originated from Hong Kong, and was destined to a private residence in Richmond, Virginia. Although it had a declared value of $319, the package held 275 assorted Cartier Love bracelets. Had the 275 bracelets been genuine, the Manufacturer’s Suggested Retail Price (MSRP) would have been $3.27 million.

Later that night, CBP officers seized a second shipment also arriving from in Hong Kong. Officers found 385 yellow gold Cartier bracelets and 115 white gold Cartier bracelets. These 500 counterfeit bracelets would have had a total MSRP of $3.2 million, had they been real.

“These large seizures illustrate the work our officers do every day to protect our country, its citizens, and the economy,” said LaFonda D. Sutton-Burke, Director, Field Operations-Chicago Field Office. “Our officers are dedicated to preventing counterfeiters from defrauding consumers and legitimate businesses.”

On Saturday, August 5, CBP officers seized another shipment from Hong Kong containing 13 fake Rolex watches- 10 Cosmograph Daytona and three Yacht Master II. These counterfeit watches were heading to a business in Mesquite, Texas. Had these been genuine, the MSRP for these watches would have been over $405,000.

“CBP is responsible for enforcing nearly 500 U.S. trade laws and regulations on behalf of 49 other federal agencies.  CBP officers play a critical role in the Nation’s efforts to keep unsafe counterfeit and pirated goods from harming the American public,” said Richard Gillespie, Port Director – Cincinnati.  “This is yet another dramatic example of how CBP officers work every day to protect the American consumer, the US economy and US jobs.”

The rapid growth of e-commerce enables consumers to search for and easily purchase millions of products through online vendors, but this easy access gives counterfeit and pirated goods more ways to enter the U.S. economy. U.S. consumers spend more than $100 billion every year on intellectual property rights (IPR) infringing goods, falling victim to approximately 20% of the counterfeits that are illegally sold worldwide.

Tony Bradley, president and CEO of the Arizona Trucking Association, discusses how truckers are on the front lines in the fight against illegal trade.

“Over the past few years, we have faced supply chain issues, shortages in manufacturing, and port delays, coupled with an unprecedented demand for products. Unfortunately, criminals see these challenges as an opportunity. And that only makes our job more difficult.”

“TAEC and the American Trucking Associations federation have been working on strategic efforts to stop illicit trade for more than a decade. The organization has encouraged members to help combat human trafficking, implemented training programs, established zero-tolerance policies, and are heavily involved in Truckers Against Trafficking (TAT). These strategies have made a real impact with more than 1 million trucking professionals registered as TAT trained; and approximately 2,700 calls have been made to a national hotline from truck drivers with nearly 1,300 victims identified.”

“But there is more work to do. Just as we have helped raise awareness about human trafficking, it is important to broaden the conversation to all aspects of illicit trade. Public private partnerships are key in getting this work done. United to Safeguard America from Illegal Trade (USAIT) is a public education initiative to combat black market trade by helping inform and train local leaders and law enforcement about these dangerous crimes.”

“We know this is a large issue to tackle, but it cannot be ignored. The safety and economic wellbeing of our community and industry depends on it.”

Read more here.

LAREDO, Texas – A Mexican citizen was sentenced Aug. 4 to nearly 20 years for conspiracy to import and importation of meth, following an investigation conducted by Homeland Security Investigations (HSI) with the assistance of U.S. Drug Enforcement Administration (DEA), U.S. Customs and Border Protection (CBP), and U.S. Border Patrol (BP) Laredo Sector.

Juan Victor Larraga-Solano, 33, was sentenced by a federal judge to serve 235 months in federal prison followed by five years of supervised release.

In handing down the sentence, the court noted the seriousness of drug smuggling and the significant quantity of meth Larraga-Solano attempted to bring into the United States. The judge also pointed out that Larraga-Solano’s testimony at the two-day trial did not make any sense and that he had not acknowledged any responsibility for his actions. As Larraga-Solano is not a U.S. citizen, he is expected to face removal proceedings following his sentence

“This sentence represents the seriousness of these crimes and serves as an appropriate punishment for Larraga-Solano for his role in a major drug trafficking organization that had a damaging impact in our communities,” said Craig Larrabee, acting special agent in charge of HSI San Antonio. “HSI will continue to utilize its broad authorities to dismantle criminal organizations who blatantly ignore the laws of this nation.”

According to court documents, Larraga-Solano attempted to enter the United States through the Lincoln-Juarez International Bridge in Laredo, March 8, 2020. He claimed he was importing glass beer bottles, juice boxes and meat contained in coolers from Mexico. Law enforcement inspected the items and noticed that, when shaken, the juice boxes sounded as if they contained rocks. Further, the alleged beer did not have any bubbles. A follow up X-ray examination also revealed anomalies in the walls of the coolers. Authorities conducted a thorough inspection and found 56 packages of meth and 12 beer bottles containing liquid meth. Overall, authorities seized a total of 44.56 kilograms of meth from Larraga-Solano.

During trial, the jury heard the total estimated street value was more than $1.1 million. Testimony at trial revealed that Mexican cartels have increased the price of meth to raise demand for less expensive drugs like cocaine and marijuana. Larraga-Solano remains in custody pending transfer to a U.S. Bureau of Prisons facility.

Assistant U.S. Attorney (AUSA) Brandon S. Bowling and former AUSA Adam E. Harper prosecuted the case.

HSI the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of over 10,400 employees consists of more than 6,800 special agents assigned to 225 cities throughout the United States, and 86 overseas locations in 55 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.

Jason Joey Berry, 39, of Montreal, Canada, pleaded guilty today to conspiracy to distribute fentanyl and import it into the United States, resulting in serious bodily injury and death. The criminal conspiracy involved distributing fentanyl and other similar substances from Canada and China into the United States, resulting in 15 overdoses, four of which were fatal.

According to court documents, Berry arranged the distribution of fentanyl and fentanyl analogues to the United States and elsewhere while incarcerated in a Canadian prison. Berry led the conspiracy in Canada with another inmate, Daniel Vivas Ceron, 41, who pleaded guilty in July 2019 to continuing criminal enterprise, conspiracy to distribute controlled substances and controlled substance analogues resulting in serious bodily injury and death, and money laundering. This investigation started in North Dakota on Jan. 3, 2015, with the overdose death in Grand Forks, North Dakota, of Bailey Henke.

“Jason Berry was part of a fentanyl trafficking ring that contributed to the opioid epidemic plaguing our communities,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.  “This case sends a clear message that the Criminal Division is committed to protecting those communities, combating the flow of deadly drugs like fentanyl, and holding accountable drug traffickers seeking to turn a profit on addiction.”

Berry pleaded guilty to conspiracy to distribute and possess with intent to distribute controlled substances and controlled substance analogues resulting in serious bodily injury and death, and conspiracy to import controlled substances and controlled substance analogues into the United States resulting in serious bodily injury and death. He is scheduled to be sentenced on Jan. 17, 2023, and faces a mandatory minimum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Additional defendants charged in federal court in this investigation include:

District of North Dakota

• Jian Zhang, aka Hong Kong Zaron, 43, of China; Xuan Cahn Nguyen, aka Jackie and Jackie Chan, 42, of Quebec Canada; Marie Um, aka Angry Bird, 41, of Quebec, Canada; and Vannek Um, 44, of Quebec, Canada were charged by a superseding indictment returned on Jan. 18, 2018, with drug trafficking conspiracy. Also charged with international money launder conspiracy were Na Chu, 41; Yeyou Chu, 40; Cuiying Liu, 66; and Keping Zhang, 66, all Chinese nationals. On May 31, Nguyen pleaded guilty to conspiring to distribute and import fentanyl and fentanyl analogues and conspiring to launder money;
• On March 22, 2018, Steven Barros Pinto, aka Yeaboy, 41, of Pawtucket, Rhode Island, was charged with conspiracy to possess with intent to distribute and distribution of controlled substances and controlled substance analogues resulting in serious bodily injury and death, conspiracy to import controlled substances and controlled substance analogues into the United States resulting in serious bodily injury and death, and continuing criminal enterprise. On Nov. 28, 2018, a superseding indictment was filed adding the charges of obstruction of justice and money laundering conspiracy.  On July 9, 2021, a federal jury convicted Pinto for conspiring to import and distribute fentanyl and fentanyl analogues, continuing criminal enterprise, money laundering conspiracy, and multiple obstruction offenses. He was sentenced on Oct. 14, 2021, to serve 400 months in federal prison;
• Brandon Corde Hubbard, 47, of Portland, Oregon, pleaded guilty to conspiracy to distribute controlled substances resulting in serious bodily injury and death, distribution of a controlled substance resulting in death, and money laundering conspiracy.  He was sentenced on July 13, 2016, to serve life in federal prison;
• Ryan Jon Jensen, 27, of Grand Forks, North Dakota, pleaded guilty on Feb. 27, 2015, to conspiracy to distribute controlled substances resulting in serious bodily injury and death, one count of distribution of a controlled substance resulting in death, two counts of distribution of a controlled substance resulting in serious bodily injury, and money laundering conspiracy. He was sentenced on Feb. 1, 2016, to serve 240 months in federal prison; 
• Joshua Tyler Fulp, 27, of Grand Forks, pleaded guilty on June 23, 2015, to conspiracy to distribute controlled substances resulting in serious bodily injury and death. He was sentenced to serve 144 months in federal prison;
• Kain Daniel Schwandt, 26, of Grand Forks, pleaded guilty on July 24, 2015, to conspiracy to distribute controlled substances. He was sentenced on Jan. 25, 2016, to serve 42 months in federal prison;
• David Todd Noye Jr., 121, of Grand Forks, pleaded guilty on May 4, 2015, to conspiracy to distribute controlled substances. He was sentenced on Jan. 25, 2016, to serve 39 months in federal prison;
• Jameson Robert Sele, 27, of Grand Forks, pleaded guilty to conspiracy to distribute controlled substances. He was sentenced on July 27, 2015, to serve 36 months in federal prison;
• Braden James Foley, 35, of Olympia, Washington, pleaded guilty on Aug. 11, 2016, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced on Nov. 21, 2016, to serve 30 months in federal prison;
• Anthony Santos Gomes, 37, originally of Rhode Island and Davie, Florida, pleaded guilty to conspiracy to possess with intent to distribute and distribute controlled substances and controlled substance analogues resulting in serious bodily injury and death and money laundering conspiracy. In addition to pleading guilty, Gomes agreed to forfeit a residence located in Davie, Florida; $162,836.00 in cash; a 2007 Maserati Quattroporte; a 2017 Polaris Sportsman XP ATV; and assorted jewelry valued at $64,725.00. He was sentenced on July 30, 2021, to serve 360 months in federal prison;
• Amanda Schneider, 32, of Port St. Lucie, Florida, pleaded guilty on Sept. 17, 2018, to conspiracy to possess with intent to distribute and distribution of controlled substances. She was sentenced on Jan. 17, 2019, to serve 15 months in federal prison;
• Keveen Nobre, 32, of Providence, Rhode Island, pleaded guilty on Oct. 10, 2018, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced on April 17, 2019, to serve 30 months in federal prison;
• Robinson Gomez, 39, of Charlotte, North Carolina, pleaded guilty on Jan. 10, 2019, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced on April 17, 2019, to serve 180 months in federal prison;
• David Campbell, 61, of Plantation, Florida, pleaded guilty on Jan. 10, 2019, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced on April 17, 2019, to serve 120 months in federal prison;
• Louis Bell, 34, of Port St. Lucie, Florida, pleaded guilty on Nov. 8, 2018, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced on April 18, 2019, to serve 201 months in federal prison;
• Elizabeth Ton, 31, of Davie, Florida, pleaded guilty on June 18, 2018, to money laundering conspiracy. She was sentenced on March 8, 2019, to serve 41 months in federal prison; and
• Danny Gamboa, 25, of Pawtucket, Rhode Island, pleaded guilty on Jan. 10, 2019, to conspiracy to possess with intent to distribute and distribution of controlled substances. He was sentenced on April 17, 2019, to serve 25 months in federal prison.

District of Oregon

• Channing Lacey, 35, of Portland, Oregon, pleaded guilty on March 28, 2017, to one count of distribution of a controlled substance resulting in serious bodily injury to three individuals and one count of distribution of a controlled substance resulting in death. She was sentenced on Aug. 28, 2017, to serve 135 months in federal prison;
• Steven Fairbanks Locke, 46, of Portland, pleaded guilty on June 14, 2017, to use of a communication facility to facilitate a drug offense. He was sentenced on Sept. 4, 2019, to time served; and
• Carissa Marie Laprall, 27, of Portland, pleaded guilty on March 28, 2017, to three counts of distribution of a controlled substance resulting in serious bodily injury. She was sentenced on Jan. 30, 202 to time served.

This case was investigated by Homeland Security Investigations, the U.S. Drug Enforcement Administration, the U.S. Postal Inspection Service, Grand Forks Narcotics Task Force, IRS Criminal Investigation, Royal Canadian Mounted Police, Portland Police Bureau – Narcotics and Organized Crime Division, Oregon/Idaho HIDTA Interdiction Task Force, Oregon State Police, and the Grand Forks Police Department. The Justice Department’s Office of International Affairs provided valuable assistance.

Trial Attorneys Kaitlin Sahni and Imani Hutty of the Criminal Division’s Narcotic and Dangerous Drug Section, Assistant U.S. Attorney Chris Myers of the U.S. Attorney’s Office for the District of North Dakota, and Assistant U.S. Attorney Scott Kerin of the U.S. Attorney’s Office for the District of Oregon are prosecuting the case.

HOUSTON — Homeland Security Investigations (HSI) Houston, Harris County Sheriff’s Office (HCSO), Houston Police Department (HPD), and Texas Department of Public Safety (DPS) arrested six individuals July 28 for their alleged roles in a large-scale catalytic converter theft ring that is suspected of fencing stolen catalytic converters for the three individuals charged with murdering HCSO Sheriff’s Office Deputy Darren Almendarez.

Authorities also executed six federal search warrants at five Houston-area residences and one storage facility as part of the large-scale, multi-agency criminal investigation into the organized theft group.

The individuals arrested pursuant to state arrest warrants for their alleged roles in the theft ring were Jose Martinez, 19; Armando Martinez, 18; Isaac Castillo, 21; Terance Elder, 20; and Armando Martinez Sr., 39; all residents of Houston, and Jose Sanchez, a 21-year-old resident of Dayton, Texas.

“For far too long, violent criminal networks and organized theft rings like this have bred chaos and terror in our communities,” said Mark Dawson, special agent in charge of HSI Houston. “Together with our fellow law enforcement partners, HSI Houston is committed to bring every resource to bear to vigorously pursue these dangerous criminal elements and will not rest until we can restore peace and order for the hard-working and law-abiding residents of Houston.”

“Our community has been increasingly plagued by these types of crimes,” said HCSO Sheriff Ed Gonzalez. “I am thankful for all efforts made to arrest these dangerous individuals. This operation would not have been a success without the strong collaboration of several agencies within our region.”

“Texas Department of Public Safety (DPS) special agents and troopers were pleased to play a significant role in this complex investigation of a dangerous theft ring,” said DPS Regional Director Jason Taylor. “Today’s arrests demonstrate that DPS remains committed to leveraging our efforts, so law enforcement — working together — will continue to bring criminals to justice.”

The investigation into the organized theft group has previously resulted in the arrest of one other individual and the seizure of more than $484,000 in bulk currency, one firearm, and narcotics.

Organized theft groups frequently target catalytic converters for the precious metals that they contain such as palladium, platinum, and rhodium. The precious metals are extremely valuable, and a worldwide supply shortage has created an increased demand for them further driving up the value.

For more news and information on HSI Houston’s efforts to keep Southeast Texas communities safe from transnational gangs, organized theft groups and other violent criminal activity follow us on Twitter @HSIHouston.

PITTSBURGH – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of holding counterfeit drugs for sale and possession of equipment for manufacturing counterfeit substances, United States Attorney Cindy K. Chung announced today.

Joshua Regatuso, age 26, of the City’s Brighton Heights section, pleaded guilty to two counts before United States District Judge Robert J. Colville.

In connection with the guilty plea, the Court was advised that the investigation, which began in early 2021, revealed that Regatuso used another person to receive binding powder and metal die stamps for use in a pill press. Regatuso appeared to have been using similar items to manufacture counterfeit alprazolam pills using etizolam, a medication not approved by the U.S. Food and Drug Administration (FDA) or the Drug Enforcement Administration (DEA) for medical use in the United States. On May 6, 2021, following the execution of a search warrant, agents seized two pill presses; roughly 250 grams of etizolam powder; counterfeit alprazolam tablets containing etilozam; and two bags of binding powder. A second search warrant yielded several thousand counterfeit alprazolam tablets and a baggie of etizolam powder. The tablets had the same markings as have been used by a company that the FDA has authorized to distribute a 2mg pill containing alprazolam.

“Fake prescription medications present a clear danger to every purchaser,” said U.S Attorney Chung. “We will continue to investigate and prosecute individuals who produce and sell counterfeit pills. Counterfeit pills are not only illegal, but often dangerous and potentially lethal.”

“The fake pills that Regatuso was manufacturing and distributing represent the most important enforcement priority for the DEA,” said Thomas Hodnett, Special Agent in Charge of the
Drug Enforcement Administration’s Philadelphia Field Division. “While a significant quantity of the fake pills that law enforcement seizes are manufactured in other countries, we continue to see locally manufactured fake pills that are produced in clandestine laboratories such as the one operated by Regatuso. The DEA would like to emphasize the only safe medications are ones that come from licensed and accredited medical professionals. The DEA warns that pills purchased outside of a licensed pharmacy are illegal and may contain a potentially lethal dose of illicit fentanyl.”

Judge Colville scheduled sentencing for Dec. 8, 2022, at 11 a.m. The law provides for a total sentence of not more than 10 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Pending sentencing, the court continued the defendant on bond.

Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.

The Drug Enforcement Administration conducted the investigation that led to the prosecution of Joshua Regatuso.

PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that DeWitt Drayton, 46, of Philadelphia, PA, was sentenced to 10 years in prison, and five years of supervised release by United States Senior District Court Judge Anita B. Brody for manufacturing counterfeit pills using controlled substances, including methamphetamine, and for unlawfully possessing three firearms.

In March 2022, the defendant pleaded guilty to the charges of possession with intent to distribute methamphetamine, and two counts of possession of a firearm by a felon. The defendant was charged with these offenses after federal investigators executed a search warrant at his home and uncovered what can be described only as a drug lab. This included multiple pill press machines and other supplies, which the defendant had been using to manufacture counterfeit prescription painkillers using a variety of narcotics, including fentanyl and the horse tranquilizer Xylazine, as well as methamphetamine-laced ecstasy pills.  Investigators recovered thousands of pills, which the defendant had manufactured, and which were destined for sale on the streets of Philadelphia. The discovery of these items was not surprising, as federal authorities had been tracking the defendant’s purchases of pill-making supplies from China and elsewhere.

Agents also executed a search warrant at a property in New Jersey used by the defendant, and between the two properties, they recovered three firearms, two of which had obliterated serial numbers, and all of which the defendant was prohibited from possessing given his criminal history.

“Drug distribution and gun violence are an epidemic in Philadelphia and the federal government is aggressively prosecuting both in order to get dangerous, repeat offenders like this defendant off the streets,” said U.S. Attorney Romero. “DeWitt Drayton was a large-scale drug manufacturer and illegally possessed multiple firearms to protect his business, which are both offenses that put our community and the people who live here at risk. We want to thank our law enforcement partners in this case, the DEA and HSI, for their hard work and dedication.”

“Drayton was responsible for manufacturing and distributing fake opioid pills containing illicit fentanyl and fake stimulant pills containing methamphetamine out of a house in the heart of the Kensington section of Philadelphia,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division.  “The current overdose crisis is largely driven by criminals like Drayton who flooded our streets with fentanyl-laced fake pills.  Learn more about the dangers of fake pills through our One Pill Can Kill public awareness campaign, which can be accessed at www.dea.gov/onepill.”

“This sentencing demonstrates how Homeland Security Investigations (HSI) Philadelphia Cyber Crime Investigations Task Force (C2iTF) working hand in hand with partners from the Drug Enforcement Administration, Philadelphia Police Department, Customs and Border Protection and the Pennsylvania State Police actively seeks to hold accountable criminals whose actions harm Americans,” said William S. Walker, Special Agent in Charge for the HSI Philadelphia Field Office. “Methamphetamine and illicit firearms are significant contributors to public safety concerns, and we will continue to dismantle criminal organizations which prey upon our communities.”

The case was investigated by Homeland Security Investigations, the Drug Enforcement Administration, Customs and Border Protection, the Pennsylvania State Police and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Timothy M. Stengel.

An MS-13 gang member was sentenced today to 35 years in prison for his murder of a 19-year-old in 2015.

According to court documents and evidence presented at the trial of three co-defendants, Juan Garcia-Gomez, aka Scooby, 26, of El Salvador, conspired to participate in the affairs of Mara Salvatrucha, a violent criminal gang also known as MS-13, founded in Los Angeles and active in numerous states across the United States, as well as in El Salvador, Central America, and Mexico. MS-13 is governed by a core set of rules, including a standing order to kill rival gang members and a strict rule against cooperating with law enforcement. MS-13 is organized into a series of sub-units, or “cliques,” that operate in specific geographic locations, and each clique is typically controlled by a single leader, sometimes known as the “First Word.” Two cliques that were active in and around Hudson County, New Jersey, were the Pinos Locos Salvatrucha clique, of which Garcia-Gomez was a member/associate, and the Hudson Locos Salvatrucha clique.

Based on court documents, Garcia-Gomez’s plea agreement, and evidence presented at the trial of three co-defendants, in July 2015, Jose Urias-Hernandez, then 19 years old, was shot and killed execution-style by Garcia-Gomez with a single shot to the back of his head as he entered his home. Garcia-Gomez participated in the murder because he was ordered by MS-13 leadership to commit the murder to achieve membership in the gang.

“Due to the dedicated efforts of the Department of Justice and our law enforcement partners, Garcia-Gomez and his fellow gang members will no longer be able to victimize this community,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The Criminal Division and our law enforcement partners will continue to pursue MS-13 gang members who take the lives of others and prey on the communities through violence and intimidation and will not stop in our pursuit of justice for the victims of this violent gang.”

“Garcia-Gomez committed a brutal and violent crime to gain membership in a criminal organization known for its brutality and violence,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “He wasn’t even out of his teens when he complied with MS-13’s orders and snuffed out another young man’s life, ruining the lives of his victim’s family and friends and ending any chance at a decent life for himself. This sentence will keep this violent criminal off of our streets.”

“Garcia-Gomez and his fellow gang members plagued their community with violence,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI, in hand with our law enforcement partners, will continue to pursue those offenders carrying out brutal violence in our communities. This action shows the FBI’s commitment to dismantling these organized criminal enterprises and keeping the communities we serve safe.”

“Today’s sentencing puts not only a violent murderer behind bars, but a confirmed gang member, narcotics trafficker, and extortioner: a serious threat to public safety,” said Acting Deputy Director Patrick J. Lechleitner of the U.S. Immigration and Customs Enforcement. “We will use every tool available to investigate transnational criminals, like this defendant, whose lack of humanity is profound. Our officers and special agents will continue to work with our law enforcement partners to bring criminals to justice, while focusing on getting victims the assistance they need.”

In addition to Garcia-Gomez, nine defendants were charged in this investigation against MS-13 in New Jersey, including Jose Gimenez-Lobos, aka Infernal, aka Terrible, 31, of El Salvador, and Jose Rivera-Robles, aka Layo, 36, of El Salvador. One defendant, Christian Linares-Rodriguez, aka Donkey, 42, is a high-ranking MS-13 member who is currently incarcerated in El Salvador and is awaiting extradition to the United States. Three other defendants have been convicted at trial in November 2021, including Juan Pablo Escalante-Melgar, aka Humilde, Elmer Cruz-Diaz, aka Locote, and Oscar Sanchez-Aguilar, aka Snappy, and are awaiting sentencing. At sentencing, Esclante-Melgar, Cruz-Diaz, and Sanchez-Aguilar each face a mandatory minimum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI, Immigration and Customs Enforcement – Enforcement and Removal Operations Newark Field Office, Homeland Security Investigations the Hudson County Prosecutors Office, and the West New York Police Department investigated the case.

Trial Attorney Matthew K. Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Desiree Grace for the District of New Jersey prosecuted the case.

NEW ORLEANS – On Wednesday, August 17, U.S. Customs and Border Protection (CBP) officers at the port of Memphis, TN intercepted an ancient Egyptian artifact shipped from Europe. The shipment was manifested as an antique stone sculpture over 100 years old, and sent from a dealer to a private buyer in the U.S.

CBP worked with subject matter experts at the University of Memphis Institute of Egyptian Art and Archaeology to determine that the artifact was authentic. It is an Egyptian canopic jar lid of the funeral deity named Imsety. Canopic jars were used to hold the internal organs of mummies and Imsety specifically protected the deceased’s liver. The lid is likely from the Egyptian Third Intermediate Period, 1069 BC to 653 BC, making it potentially 3,000 years old.

The artifact is on a list of items protected by bilateral treaties and falls under the CPIA 19 USC 2609; designated archaeological materials of cultural property imported into the U.S. subject to seizure and forfeiture. CPIA is the congressionally passed Convention on Cultural Property Implementation Act of 1983, and restricts importing some archaeological and ethnological materials into the country. The shipper also made contradictory statements regarding the declared value of the item, and CBP seized it. It was turned over to Homeland Security Investigations for further examination and to determine it’s provenance.

The New Orleans Field Office covers ports of entry throughout the states of Louisiana, Mississippi, Alabama, Arkansas, and Tennessee.

PHOENIX – A central California man was sentenced July 14, to 120 months in federal prison for sex trafficking of a minor following an investigation by special agents with Homeland Security Investigations (HSI) assisted by the Mesa Police Department, the Los Angeles Sheriff’s Department, and the Los Angeles Police Department (LAPD).

Jahque Dijion Williams, 21, of Los Angeles, previously pleaded guilty to sex trafficking of a minor.

“This lengthy sentence is a testament to the repugnant nature of child sex trafficking which only perpetuates the trauma endured by young victims,” said Scott Brown, special agent in charge of HSI Phoenix. “HSI agents make it a top priority to protect minors from victimization by working with law enforcement partners to investigate traffickers to ensure they are held accountable for their heinous actions.”

On July 23, 2020, the Human Trafficking Unit of the LAPD found the 17-year-old minor, who appeared to have been physically assaulted, at a Los Angeles hospital. The victim indicated that she first met Williams on July 19, 2020, through her social media account and he invited her to a party in Phoenix. At the party, she realized it was a “recruiting party” for commercial sex workers. Williams then transported the minor and another adult female to Los Angeles where he told the minor she would work for him. Williams gave the minor details about the amount of money she would bring back each night. On the trip to Los Angeles, Williams prevented the minor from leaving the car by activating the child lock on his vehicle.

HSI also encourages the public to report suspected sex trafficking or any suspicious activity through its toll-free Tip Line at 1-866-DHS-2-ICE, or by completing its online tip form. Both are staffed around the clock by investigators. From outside the United States and Canada, callers should dial 802-872-6199. Hearing impaired users may call TTY 802-872-6196.

HSI takes a victim-centered approach to child exploitation investigations by working to identify, rescue and stabilize victims. HSI works in partnership with National Center for Missing & Exploited Children (NCMEC), Internet Crimes Against Children (ICAC) partners, and other federal, state, and local agencies to help solve cases and rescue sexually exploited children. Suspected child sexual exploitation or missing children may be reported to NCMEC’s toll-free 24-hour hotline, 1-800-THE-LOST. HSI is a founding member of the Virtual Global Taskforce, an international alliance of law enforcement agencies and private industry sector partners working together to prevent and deter online child sexual abuse.

One of HSI’s top priorities is to protect the public from crimes of victimization, and HSI’s child exploitation investigations program is a central component of this mission set. HSI is recognized as a global leader in this investigative discipline, and is committed to utilizing its vast authorities, international footprint and strong government and non-government partnerships to identify and rescue child victims, identify, and apprehend offenders, prevent transnational child sexual abuse, and help make the internet a safer place for children.

This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the DOJ Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.

The United States Attorney’s Office, District of Arizona, Tucson, and Phoenix, handled the prosecution.

Learn more about HSI Arizona’s commitment to combatting child exploitation at @HSIPhoenix.

HSI is the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of over 10,400 employees consists of more than 6,800 special agents assigned to 225 cities throughout the United States, and 86 overseas locations in 55 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.

HOUSTON – Homeland Security Investigations (HSI) Houston, the Houston Police Department (HPD) and U.S. Customs and Border Protection (CBP) seized more than 6,593 items of counterfeit soccer merchandise with a manufacturer’s suggested retail price (MSRP) of approximately $631,926 during a week-long multi-agency operation targeting counterfeit sporting goods in the Houston area.

The operation, which was conducted during the week leading up a Premier League preseason soccer match July 20 at NRG Park, is part of a nationwide effort called “Operation Team Player”. The National Intellectual Property Rights Coordination Center (IPR Center) and the Premier League aided during the operation.

“Major sporting events routinely attract transnational criminal organizations and other bad actors involved in the illicit sale of counterfeit merchandise and tickets,” said Mark Dawson, special agent in charge of HSI Houston. “HSI Houston is committed to work in conjunction with our partners from other law enforcement agencies and private industry to aggressively investigate trademark counterfeiting to protect consumers and ensure a level playing field for legitimate businesses.”

“This operation is an example of the commitment CBP, and its partners have in disrupting the flow of both illegitimate, counterfeit goods and the hundreds of thousands of dollars generated from their sales that fund criminal enterprises,” said Jud Murdock, Houston CBP director of field operations. “Counterfeit goods threaten America’s innovation and the livelihoods of workers employed by the right’s holder, which is why intellectual property rights remain a CBP priority.”

“Public-private sector partnerships are the key to success at the National Intellectual Property Rights Coordination Center (IPR Center),” said Jim Mancuso, IPR Center director. “By joining forces and working together, HSI, CBP, and the Premier League can better ensure soccer fans around the world spending their hard-earned money to support their favorite club only receive genuine, high-quality officially licensed merchandise in return.”

HSI works closely with federal, state, and local law enforcement through Operation Team Player, a year-round effort developed by the IPR Center to crack down on the illegal importation of counterfeit sports apparel and entertainment merchandise. Last year, between February 2021 and February 2022, authorities seized more than 267,511 counterfeit sports-related items with an estimated MSRP of $97.8 million during Operation Team Player.

In fiscal year 2021, HSI Houston seized more than 2 million counterfeit goods valued at approximately $23.8 million. Of the counterfeit items seized in the Houston area, approximately 51,000 were counterfeit apparel valued at approximately $7.2 million.

Members of the public who suspect they have encountered counterfeit goods or merchandise are encouraged to report it to local law enforcement or by calling the HSI tip-line at 1-866-DHS-2423. The public may also visit IPRCenter.gov and click on “Report IP Theft” to submit a tip online anonymously.

For more news and information on HSI Houston’s efforts to combat the illegal importation and sale of counterfeit goods follow us on Twitter @HSIHouston.

HSI is a directorate of U.S. Immigration and Customs Enforcement (ICE) and the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of over 10,400 employees consists of more than 6,800 special agents assigned to 225 cities throughout the United States, and 86 overseas locations in 55 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.

WASHINGTON — Pharmaceutical crime is a major global public health concern, with the trade of counterfeit and illicit health products affecting all countries through source, transit, or destination points. Patients around the world put their health and even their lives at risk by unknowingly consuming fake and unregulated medical products, or products that have been altered, diverted, badly stored or have passed their expiration date. For the 14th year in a row, the National Intellectual Property Rights Coordination Center (IPR Center) joined 94 Interpol member countries in a coordinated crackdown on illicit online pharmacies dubbed “Operation Pangea XV,” June 23-30. The operation netted more than 7,800 seizures of illicit and falsified medicines, totaling more than three million individual units at $11 million.

“Two decades worth of experience has shown criminals will stop at nothing to make a profit, including selling counterfeit pharmaceuticals and medical devices despite dangers they cause,” said Jim Mancuso, IPR Center director. “The United States is committed to working closely with our international law enforcement partners and the private sector to keep counterfeit pharmaceuticals and medical devices out of the global supply chain, as well as taking down transnational criminal organizations who profit from these scams. The results of Operation Pangea XV are a warning to transnational criminal organizations that law enforcement agencies around the world will do whatever it takes to protect public health and safety.”

“Dealing counterfeit or illicit medicines online may seem like a low-level offence, but the consequences for victims are potentially life-threatening,” said Interpol Secretary General Jürgen Stock. “The illicit supply chains and business models behind the trade in counterfeit medicines are inherently international, meaning that law enforcement has to work together across borders in order to effectively protect consumers.”

Every day, advertisements for medicines invade the Internet, posted on social media networks or other websites. Behind this marketing, however, often lies fraudulent products that damage consumers’ health instead of healing them.

The global trade in illicit pharmaceuticals was valued at $4.4 billion in 2016 – and attracts the involvement or organized crime groups around the world.

During the weeklong operation, law enforcement:

• Investigated more than 4,000 web links, mainly from social media platforms and messaging apps;
• Shut down or removed more than 4,000 web links containing adverts for illicit products;
• Inspected nearly 3,000 packages and 280 postal hubs at airports, borders and mail distribution or cargo mail centers; and
• Opened more than 600 new investigations and issued more than 200 search warrants.

While results are still incoming, enforcement actions have already disrupted the activities of at least 36 organized crime groups.

Cross-border crimes

Nearly half (48 percent) of the packages inspected by law enforcement during the operation were found to contain either illicit or falsified medicines.

Fake or unauthorized erectile dysfunction medicines comprised at least 40 percent of all products seized. Law enforcement in Australia, Argentina, Malaysia, and the United States also seized more than 317,000 unauthorized COVID-19 test kits. The U.S. seizures alone are estimated to be worth nearly $3 million.

The trade in illicit medicines extends far beyond any one country’s borders. Often, products are manufactured in one country and shipped to another, while advertisements for the medicines are hosted on websites based in other countries altogether.

In Malaysia alone, law enforcement identified more than 2,000 websites selling or advertising false or restricted pharmaceuticals.

Social media networks and messaging apps are also used to advertise counterfeit or illicit medicines, with Operation Pangea XV identifying more than 1,200 such ads across all major platforms.

Within the framework of Operation Pangea XV, Interpol was able to count on the support of Europol, the World Customs Organization, the United Nations Office on Drugs and Crime’s Container Control Programme, health regulatory agencies and the Pharmaceutical Security Institute.

Interpol’s Illicit Goods and Global Health Programme works to dismantle criminal networks and reduce the risk fake and illicit pharmaceuticals pose to public health.

Since 2008, Operation Pangea has been combating the global trafficking of counterfeit pharmaceuticals and illicit health products marketed and sold online. Pangea also aims to raise public awareness of the risks associated with buying medicines from unregulated websites.

About the IPR Center

For more than two decades, the IPR Center, working collaboratively with its public-private sector partners, has led the effort in the government’s response to combat global intellectual property theft and enforce intellectual property rights violations. The center was established to combat global intellectual property theft – and, accordingly, has a significant role policing the sale and distribution of counterfeit goods on websites, social media, and the dark web.

LAS VEGAS – A Romanian citizen — who entered the U.S. illegally — was sentenced today by U.S. District Judge Andrew P. Gordon to 42 months in prison followed by three years of supervised release for engaging in ATM skimming fraud scheme.

Marian Poenaru (21) pleaded guilty in April 2022 to one count of conspiracy to possess counterfeit and unauthorized access devices and one count of aggravated identity theft.

According to court documents, Poenaru and his co-conspirators installed and used skimmer devices and pinhole cameras at ATMs to capture users’ account information and PINs. The conspirators then re-encoded gift cards with the stolen bank information so they could make cash withdraws and purchases for their own personal benefit.

On April 25, 2021, Las Vegas Metropolitan Police Department officers arrested Poenaru. A search of his apartment uncovered more than 500 cards that were re-encoded. At least 300 of the counterfeit cards recovered were re-encoded with account information of debit cards issued by the Nevada Department of Employment, Training and Rehabilitation (DETR), which were used to disburse unemployment insurance benefits during the COVID-19 pandemic. During a search of his apartment, law enforcement found a lab used both to create ATM skimming equipment as well as to manufacture counterfeit cards. Additionally, Poenaru admitted that his fraudulent activities in Las Vegas were committed after he and his co-conspirators relocated their fraudulent scheme from another state to evade law enforcement; evidence shows that from 2017 to 2021, Poenaru engaged in ATM skimming fraud across the country, including in Maryland, Virginia, Indiana, Michigan, and Nevada. Poenaru is subject to deportation after the completion of his criminal sentence.

U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent In Charge Karon Ransom for the U.S. Secret Service made the announcement.

This case was investigated by the U.S. Secret Service and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Jim Fang prosecuted the case.

In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with 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 https://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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

USA-IT partners featured in TV segment examining how consumers can avoid counterfeit goods.

Kari Kammel, Director of the Center for Anti-Counterfeiting and Product Protection (A-CAPP) at Michigan State University:

“Slow down is the best thing I can say. Like we are very much in a fast pace society, including with shopping
and getting discounts. Slow down for a second look at where there based, look at the address, look at the reviews.”

Matthew Albence, USA-IT spokesman and former acting director of U.S. Immigration and Customs Enforcement (ICE):

“A lot of times these are forced labor. There is labor trafficking in these organizations that are manufacturing these products, people working and living in inhumane conditions as they’re being forced to produce these goods.”

Watch and read more here.

USA-IT partners featured in Gov. Whitmer’s (D-MI) press release highlighting the signing of the INFORM Act, which aims stop black-market crime through increased transparency from online marketplaces, particularly regarding 3rd party sellers.

William J. Hallan, President and CEO of Michigan Retailers Association

“Retailers applaud Governor Whitmer for signing INFORM legislation into law today, protecting both consumers and retailers from the organized criminal rings who use online marketplaces to resell stolen merchandise for profit. This law is a key step in limiting criminals’ ability to resell stolen goods while providing additional safety and transparency for consumers.”

Leah Robinson, Director of Legislative Affairs and Leadership Programming, Michigan Chamber of Commerce

“This bipartisan, common-sense legislation strikes a balance between the need for increased transparency to thwart stolen and counterfeit products to protect consumers while simultaneously ensuring businesses are not punished with unreasonable reporting requirements. The Michigan Chamber applauds the Michigan Legislature for working to find a bipartisan solution to this complex problem and the Governor for signing these important consumer protection measures.”

Read more here.

David Luna, USA-IT partner and Executive Director of the International Coalition Against Illicit Economies (ICAIE), pens an op-ed highlighting ICAIE’s strategic regional dialogue on illegal trade, Free Trade Zones, and the need for public-private partnerships as part of the 2022 Concordia Americas Summit. “Similar to how criminals take advantage of stressed markets and susceptible consumers, they also take advantage of advancements in technology and gaps in law enforcement activity to gain access to the marketplace. Free Trade Zones (FTZs) are areas where goods and products can be moved, stored, and processed without the intervention of local customs authorities. FTZs are used around the world, including in the United States, to help move global commerce more efficiently and inexpensively, but they have also become vulnerable to exploitation by criminal and terrorist networks.”

“To better safeguard the open markets and security of our homeland and beyond, we must strengthen our own law enforcement capabilities, starting with a better, more cooperative approach. A unified strategy can be forged by public and private sector collaboration to share expertise, data and best practices. We must also strengthen our political will across every level of the government to create and enforce strong policies that will crack down on these global criminal networks here in the United States and abroad.”

“As policymakers, law enforcement and private companies work to share resources and intelligence, there are ways the public can protect themselves as well. Through self-education on illegal trade, its severe impacts on Florida’s communities, and how to avoid and report counterfeit and stolen products, we can mobilize others to work together and fight back. A good place to start is visiting www.icaie.com and www.USAIT.org.”

Read more here.

Herdade Lokua, 34, and Jospin Mujangi, 32, of Kinshasa, Democratic Republic of Congo (DRC), pleaded guilty yesterday in federal court in Seattle to conspiracy and Lacey Act charges. They were indicted on Nov. 3, 2021, on 11 counts relating to trafficking wildlife from DRC to Seattle. The court scheduled the sentencing hearing for Nov. 1.

In pleading guilty, both defendants admitted that beginning in November 2019, they agreed to smuggle elephant ivory, white rhinoceros horn and pangolin scales to the United States. They worked with a middleman to negotiate the sales and coordinate imports to Seattle. Between August and September 2020, Lokua and Mujangi shipped three packages containing approximately 49 pounds of ivory from Kinshasa. They arranged for the ivory to be cut into smaller pieces and painted black; the packages were then falsely labeled as containing wood.

Lokua and Mujangi acknowledged that in June 2021, they sent nearly five pounds of rhinoceros horn to Seattle using a similar scheme. Lokua discussed sending two tons of ivory and one ton of pangolin scales concealed in a shipping container. He stated that payment would have to be routed through a bank account in China before they could access the cash in Kinshasa.

Lokua and Mujangi admitted that they traveled to Seattle on Nov. 2, 2021, to meet with prospective buyers who were actually undercover federal agents. After negotiating the details of a large shipment of ivory, rhinoceros horn and pangolin scales, agents arrested both men in Edmonds, Washington.

The investigation was part of “Operation Kuluna,” an international operation conducted between the Office of Homeland Security Investigations (HSI) in Seattle, the Government of the DRC, the Department of State’s Diplomatic Security Service (DSS) and the U.S. Embassy in Kinshasa. After the arrests, the task force in DRC acted on information provided by HSI-Seattle to seize 2,067 pounds of ivory and 75 pounds of pangolin scales in Kinshasa worth approximately $3.5 million, all contraband related to wildlife trafficking.

The Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits, among other things, falsely labeling shipments containing wildlife. The United States, DRC and approximately 181 other countries are signatories to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES is an international treaty that restricts trade in species that may be threatened with extinction. CITES has permit requirements for protected wildlife, and the indictment alleges that the defendants did not obtain any of the necessary papers or declarations from DRC or the United States.

The CITES treaty has listed the white rhinoceros (Ceratotherium simum) as a protected species since 1975 and the African elephant (Loxodanta africana) since 1977. All species of pangolin were added to the CITES appendix with the greatest level of protection in 2017. All three mammals are threatened by poaching and habitat loss.

HSI-Seattle conducted the investigation. The government is represented by Senior Trial Attorneys Patrick M. Duggan and Ryan C. Connors of the Environment and Natural Resources Division’s Environmental Crimes Section with assistance from the U.S. Attorney’s Office in the Western District of Washington.

NOGALES, Ariz. – The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated an individual engaged in the trafficking of high-caliber firearms from the United States to one of Mexico’s most powerful drug organizations as a result of a Homeland Security Investigation (HSI) and multiagency probe. This action would not have been possible without the cooperation and support of the Government of Mexico (GoM) and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Today’s action is the result of ongoing efforts by U.S. agencies and the GoM to disrupt Mexican drug trafficking organizations’ procurement of weapons, including those sourced in the United States.

OFAC designated Obed Christian Sepulveda Portillo (Obed Sepulveda), pursuant to Executive Order (E.O.) 14059 for acting for or on behalf of the Cartel de Jalisco Nueva Generacion (CJNG), a violent drug trafficking organization based in Mexico responsible for a significant proportion of fentanyl and other deadly drugs trafficked into the United States.

“Cartels exist for one reason and one reason only – to generate a profit. The CJNG is no exception and has demonstrated they will go through great lengths, costing lives, in efforts to further their control,” said Scott Brown, special agent in charge, for HSI Phoenix. “As a border state, we see first-hand how these criminal organizations continue their attempts to smuggling narcotics and contraband through our shared border. With the coordination of our partnered agencies, HSI is committed to end the plague that is CJNG.”

Portillo, a Mexican national, was designated for, being directed by, or acting or purporting to act for or on behalf of, directly or indirectly, CJNG. Portillo coordinated the daily procurement of firearms and bulk ammunition from the U.S. southwest border into Mexico through a network of individuals working directly with CJNG.

“CJNG’s power and violence are only possible because of its ability to obtain high-powered weapons, which are used to protect drug trafficking routes, territory, and other illicit assets,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “Treasury is actively targeting those who support and supply drug trafficking and criminal organizations, especially those engaged in the production and distribution of synthetic opioids that claim the lives of tens of thousands of Americans each year.”

Previous Actions Against CJNG

On April 8, 2015, OFAC designated CJNG and its leader, Oseguera Cervantes, pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act) for playing a significant role in international narcotics trafficking. On Dec. 15, 2021, OFAC also designated CJNG and Oseguera Cervantes pursuant to E.O. 14059. OFAC has also designated a wide range of businesses and individuals that play critical roles in CJNG’s drug trafficking activities.

Sanctions Implications

As a result of today’s action, all property, and interests in property of this designated individual that are in the United States or in the possession or control of U.S. persons must be blocked and reported to OFAC. OFAC’s regulations generally prohibit all transactions by U.S. persons or persons within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons. As with any provision of goods or services, including firearms, unlicensed transactions, or dealings by U.S. persons for the direct or indirect benefit of any designated drug trafficking organization are prohibited. U.S. persons may face civil or criminal penalties for violations of these sanctions.

These actions are part of a whole-of-government effort to counter the global threat posed by the trafficking of illicit drugs into the United States that is causing the deaths of tens of thousands of Americans annually, as well as countless more non-fatal overdoses. OFAC, in coordination with its U.S. government partners and foreign counterparts, will continue to target and pursue accountability for foreign illicit drug actors.

U.S. sanctions need not be permanent; sanctions are intended to bring about a positive change of behavior. Consistent with the findings of Treasury’s 2021 Sanctions Review, the removal of sanctions is available for persons designated under counter narcotics authorities who demonstrate a change in behavior and no longer engage in activities linked to international illicit drug trafficking or other sanctionable activity.

For information concerning the process for seeking removal from any OFAC list, including the Specially Designated Nationals and Blocked Persons List (SDN List), please refer to OFAC’s Frequently Asked Question 897.

Tips concerning the individual designated today can be submitted to HSI by phone 1-866-347-2423. Learn more about Arizona’s commitment of investigating cartel activity at @HSIPhoenix.

HSI is the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of over 10,400 employees consists of more than 7,100 special agents assigned to 220 cities throughout the United States, and 80 overseas locations in 53 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.

A federal grand jury in the District of New Jersey returned an indictment yesterday charging a resident of Florida with running a massive operation over many years to traffic in fraudulent and counterfeit Cisco networking equipment with an estimated retail value of over $1 billion.

According to the indictment, Onur Aksoy, aka Ron Aksoy, aka Dave Durden, 38, of Miami, allegedly ran at least 19 companies formed in New Jersey and Florida as well as at least 15 Amazon storefronts, at least 10 eBay storefronts, and multiple other entities (collectively, the “Pro Network Entities”) that imported tens of thousands of fraudulent and counterfeit Cisco networking devices from China and Hong Kong and resold them to customers in the United States and overseas, falsely representing the products as new and genuine. The operation allegedly generated over $100 million in revenue, and Aksoy received millions of dollars for his personal gain.

According to the indictment, the devices the Pro Network Entities imported from China and Hong Kong were typically older, lower-model products, some of which had been sold or discarded, which Chinese counterfeiters then modified to appear to be genuine versions of new, enhanced, and more expensive Cisco devices. As alleged, the Chinese counterfeiters often added pirated Cisco software and unauthorized, low-quality, or unreliable components – including components to circumvent technological measures added by Cisco to the software to check for software license compliance and to authenticate the hardware. Finally, to make the devices appear new, genuine, high-quality, and factory-sealed by Cisco, the Chinese counterfeiters allegedly added counterfeited Cisco labels, stickers, boxes, documentation, packaging, and other materials.

The fraudulent and counterfeit products sold by the Pro Network Entities suffered from numerous performance, functionality, and safety problems. Often, they would simply fail or otherwise malfunction, causing significant damage to their users’ networks and operations – in some cases, costing users tens of thousands of dollars. Customers of Aksoy’s fraudulent and counterfeit devices included hospitals, schools, government agencies, and the military.

As set forth in the indictment, between 2014 and 2022, Customs and Border Protection (CBP) seized approximately 180 shipments of counterfeit Cisco devices being shipped to the Pro Network Entities from China and Hong Kong. In response to some of these seizures, Aksoy allegedly falsely submitted official paperwork to CBP under the alias “Dave Durden,” an identity that he used to communicate with Chinese co-conspirators. To try to avoid CBP scrutiny, Chinese co-conspirators allegedly broke the shipments up into smaller parcels and shipped them on different days, and Aksoy used at least two fake delivery addresses in Ohio. After CBP seized a shipment of counterfeit Cisco products to Aksoy and the Pro Network Entities and sent a seizure notice, Aksoy allegedly often continued to order counterfeit Cisco products from the same supplier.

According to the indictment, between 2014 and 2019, Cisco sent seven letters to Aksoy asking him to cease and desist his trafficking of counterfeit goods. Aksoy allegedly responded to at least two of these letters by causing his attorney to provide Cisco with forged documents. In July 2021, agents executed a search warrant at Aksoy’s warehouse and seized 1,156 counterfeit Cisco devices with a retail value of over $7 million.

Aksoy is charged with one count of conspiracy to traffic in counterfeit goods and to commit mail and wire fraud; three counts of mail fraud; four counts of wire fraud; and three counts of trafficking in counterfeit goods. Aksoy was charged by a criminal complaint filed in New Jersey on June 29 and was arrested in Miami the same day.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Attorney for the United States Vikas Khanna of the District of New Jersey; Acting Special Agent in Charge Eddy Wang of the Homeland Security Investigations (HSI) Los Angeles Field Office; Special Agent in Charge Bryan Denny of the U.S. Department of Defense, Defense Criminal Investigative Service (DCIS) Western Field Office; Special Agent in Charge Floyd Martinez of the General Services Administration Office of Inspector General (GSA-OIG), Southeast and Caribbean Division; Special Agent in Charge Peter Tolentino of the Naval Criminal Investigative Service (NCIS), Economic Crimes Field Office; Special Agent in Charge Anthony Salisbury of the HSI Miami Field Office; and Special Agent in Charge Jason Molina of the HSI Newark Field Office made the announcement today.

The CBP Electronics Center of Excellence; the CBP Los Angeles National Targeting and Analysis Center; and the CBP Office of Trade, Regulatory Audit and Agency Advisory Services, Miami Field Office provided valuable assistance.

If you believe you are a victim of Aksoy or the Pro Network Entities, please visit www.justice.gov/largecases or https://edit.justice.gov/usao-nj/united-states-v-onur-aksoy-pro-network for more information.

The Pro Network Entities include at least the following:

HSI, DCIS, GSA-OIG, NCIS, and CBP are investigating the case.

Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Andrew M. Trombly and Senior Trial Counsel Barbara Ward of the District of New Jersey are prosecuting the case.

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

SAN DIEGO – Kaylar Junior Tawan Beltranlap of San Diego pleaded guilty today to distributing a counterfeit oxycodone pill laced with fentanyl that killed a 15-year-old Coronado High School sophomore, referred to in court records as C.J.S., on May 12, 2021.

During the change of plea hearing, Beltranlap admitted to utilizing his Instagram account to coordinating a drug transaction with C.J.S. Beltranlap warned C.J.S. to only take half the pill because it was “strong.” Law enforcement responded on May 13, 2021 after learning of C.J.S.’s fatal overdose. Beltranlap was arrested the next day carrying five pills, which also turned out to be counterfeit oxycodone pills laced with fentanyl. In the plea agreement, Beltranlap and the Government stipulated that the Sentencing Guidelines for distribution of a controlled substance resulting in death and/or serious bodily injury will apply.

“C.J.S.’s tragic death must not be in vain. We need to continue to educate our middle and high school age children about the dangers of counterfeit fentanyl pills,” said U.S. Attorney Randy Grossman. “Our office will continue to pursue these cases to ensure that those who peddle this poison to youth face the full measure of federal prosecution.”

“C.J.S. was child and a member of our community. We know this will not make the family whole but we appreciate the multi-agency collaboration that went into holding this offender accountable.” said Coronado Police Chief Chuck Kaye.

“Parents: I’m pleading with you to please talk to your child – no matter their age – about the dangers of taking a pill that didn’t come from a doctor or pharmacist. Although difficult, this conversation could save your child’s life.” said DEA Special Agent in Charge Shelly S. Howe.

Beltranlap is scheduled to be sentenced on September 30, 2022, at 9:00 a.m. before U.S. District Court Judge Cathy Ann Bencivengo.

This case is the result of ongoing efforts by the U.S. Attorney’s Office, Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the San Diego Police Department, the California Department of Health Care Services and the San Diego County District Attorney’s Office to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The DEA created the DEA Overdose Response Team which investigates overdose deaths in San Diego County. Investigators from the Overdose Response Team, as well as the Coronado Police Department and NTF Team 3, contributed to the investigation into C.J.S.’s death.

DEFENDANT                                                                              Case Number 21-CR-3442 CAB
Kaylar Junior Tawan Beltranlap                                                  Age: 21               San Diego, CA

SUMMARY OF CHARGES
Distribute of Fentanyl – Title 21, United States Code, Sections 841(a)
Maximum penalty: 20 years in prison

AGENCY
Drug Enforcement Administration
Homeland Security Investigations
Federal Bureau of Investigation
Coronado Police Department
San Diego Police Department
California Department of Health Care Services

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

YUMA, Ariz. – A female Mexican national was charged by criminal complaint July 1 for her alleged involvement in narcotics smuggling following an investigation by Homeland Security Investigations (HSI) Yuma assisted by U.S. Customs and Border Protection (CBP).

Maria Arredondo De Sanchez, 56, was arrested June 30 upon attempting to enter the U.S. through the San Luis Port of Entry where CBP officers discovered 105 packages hidden in Arredondo De Sanchez’s car.

The complaint alleges the packages contained a white crystal-like substance that tested positive for methamphetamine. The combined weight of the packages was over 108 pounds.

A conviction for each charged offense carries a maximum penalty of life in prison and a $10,000,000 fine.

A criminal complaint is merely an allegation of criminal conduct, not evidence. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.

Learn more about HSI’s commitment to combatting narcotics in Arizona at @HSIPhoenix.

HSI is the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of over 10,400 employees consists of more than 7,100 special agents assigned to 220 cities throughout the United States, and 80 overseas locations in 53 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.

Luis Ramirez, president of Phoenix-based Ramirez Advisors Inter-National, LLC, discusses how innovative and cooperative approaches lead to successful solutions.

“Illicit trade, which includes counterfeiting, smuggling, organized retail theft, human trafficking and the drug trade, affects every state, including Arizona. This illegal activity is a real threat to our local communities given our proximity to the international border with Mexico. But luckily in Arizona, we have implemented innovative international shipping polices that not only alleviate border congestion and expedite global trade, but also keep this type of criminal activity at bay.”

“In the security business, it is understood that cargo at rest is cargo at risk. Forcing the truck to stop and be opened, the cargo handled is simply an invitation for something to be inserted into that truck. Thus, if you load the truck at its origin at an additional 10,800 pounds, you eliminate the need for the additional stop before it arrives at the border.”

“This approach has resulted in various other programs, such as Unified Cargo Processing (UCP) at ports of entry. This is a simple concept that puts both U.S. and Mexican customs officials side-by-side to inspect a truck with one stop. The results have been spectacular. There is enhanced security as one official watches the other. It has also resulted in closer working relationships that promote collaboration and coordination.”

“This type of innovation is a great example of how collaboration between local communities, business leaders, and law enforcement can help solve local challenges.”

“There is no doubt that enforcement authorities require major investments in inspection facilities, technology and staffing to do their job more effectively and efficiently. But taking the time to look at the process and looking for ways to improve it is referred to as force-multipliers. The gains can be immediate, translate into increased profits for companies, but perhaps more importantly, create a more secure international supply chain.”

Read more here.

David Rausch, director of the Tennessee Bureau of Investigation (TBI), pens an op-ed on the need to work across sectors to combat the growing threat of illegal trade.

“Over my 30 years in law enforcement, I have seen Tennessee’s position as a regional transportation hub being exploited by criminals seeking to conduct illegal trade and counterfeit operations. The same highways and taxpayer-funded infrastructure used to deliver groceries and consumer goods are being used by criminal enterprises to smuggle drugs and illicit tobacco, and even for human trafficking. Illegal trade is one of the most serious challenges facing the Volunteer State and our nation.”

“These illicit marketplaces also put dangerous and deadly products into our communities. Since the early 2000s, counterfeit prescription pills have flooded the market in Tennessee, endangering and killing unsuspecting Tennesseans. Today, the issue is more relevant than ever, with an alarming influx of counterfeit pills being injected into the state’s illicit drug supplies. In Tennessee, 80% of all crimes have an underlying drug-related cause.”

“While these numbers are alarming, there is progress being made in the fight to combat illegal trade, and that is why I was excited to participate in the Safeguarding Tennessee from Illegal Trade Summit hosted by United to Safeguard America from Illegal Trade (USA-IT) and the Tennessee Chamber of Commerce and Industry on June 21.”

“USA-IT brings together experienced entities from both the public and private sectors to form partnerships that will be integral to our fight against illegal trade and to make our communities safer and more prosperous statewide.”

Read more here.

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced today that the following four men were arrested yesterday on federal narcotics distribution charges primarily related to the large-scale trafficking of counterfeit fentanyl pills containing fentanyl:

MICHAEL LEE, 24, of Windsor
ALEXANDER LEE, 21, of Windsor
DARYL BEAUFORT, 24, of Windsor
JUSTIN LITTLE, 24, of Windsor

As alleged in court documents and statements made in court, the DEA New Haven Tactical Diversion Squad has been investigating a drug trafficking organization led by Michael Lee and his brother Alexander Lee.  The investigation, which has included court-authorized wiretaps, controlled purchases of narcotics and the seizure of drugs that had been shipped through the U.S. Mail, revealed that Michael Lee, Alexander Lee and others received thousands of counterfeit oxycodone pills containing fentanyl, and other controlled substances, from a source of supply on the west coast of the U.S., and then distributed the drugs to various street-level distributors in Connecticut, including Beaufort and Little, and numerous drug customers.

During the investigation and in association with yesterday’s arrests, investigators seized more than 15,000 counterfeit oxycodone tablets containing fentanyl, more than 1,800 alprazolam tablets (commonly referred to as “Xanax”), approximately 25 pounds of marijuana, seven firearms, and thousands of dollars in cash.

The defendants were arrested on criminal complaints charging each with conspiracy to possess with intent to distribute controlled substances, and possession with intent to distribute and distribution of controlled substances.

Each defendant appeared yesterday before U.S. District Judge Robert A. Richardson in Hartford.  Michael and Alexander Lee are currently detained, and Beaufort and Little were released on bonds.

U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt.  Charges are only allegations and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This matter is being investigated by the DEA New Haven Tactical Diversion Squad, with the assistance of the U.S. Postal Inspection Service; Bureau of Alcohol, Tobacco, Firearms and Explosives; Connecticut State Police; East Central Narcotics Task Force; and the Windsor and Enfield Police Departments.  The DEA Tactical Diversion Squad is composed of personnel from the DEA and the Watertown, East Windsor, Manchester, Glastonbury, New Britain, West Haven, Hamden and Newington Police Departments.

The case is being prosecuted by Assistant U.S. Attorneys Lauren C. Clark and Stephanie T. Levick through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program.  OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies.  Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

GRAND RAPIDS, MICHIGAN —U.S. Attorney Mark A. Totten announced that on June 24, 2022, U.S. District Judge Paul L. Maloney sentenced Roddrick Montez Wilson, 26, of Muskegon and Grand Rapids, to 23 years in prison for possessing with intent to distribute methamphetamine and possessing a firearm in furtherance of drug trafficking.

During a traffic stop in August 2021, Michigan State Police in Muskegon found Wilson in possession of over 15,000 fake pills that appeared to be Adderall®, an amphetamine used to treat ADHD and narcolepsy, but the pills were in fact methamphetamine. Wilson intended to sell the pills, worth an estimated $75,000, and possessed a loaded, stolen firearm in furtherance of that crime. After further investigation by the Drug Enforcement Administration, investigators learned that law enforcement in Grand Rapids had encountered Wilson in February and June 2021, and on both occasions, found smaller quantities of the same type of fake pills, in addition to a firearm in June and other drugs in February.

“Counterfeit pills pose a significant danger to our communities,” said U.S. Attorney Totten. “There are often devastating consequences for drug users who ingest fake pills bought off the street. My office is committed to raising awareness about this issue, and prosecuting those individuals who seek to profit off the distribution of counterfeit substances.”

According to the DEA,[1] a nationwide surge in fake prescription pills, made and marketed by criminal drug networks, is driving harm, violence, and overdoses across the United States. Fake pills are marked as legitimate prescription pills to deceive the American public, are easy to purchase, and widely available. Between August and December 2021, almost 10 million fake pills were seized by law enforcement nationwide. You should never take prescription medication that was not prescribed to you by your doctor and dispensed by a licensed pharmacist. For more information about the DEA’s “One Pill Can Kill” campaign, visit: https://www.dea.gov/onepill.

“Across the Midwest, law enforcement is seizing methamphetamine pressed into fake-pill form so that it appears to be a less potent substance, such as Xanax or Adderall. This case should serve as a stark reminder to everyone: the only pill anyone should take is one that has been prescribed by a physician and obtained at a legitimate pharmacy,” said Orville O. Greene, Special Agent in Charge of the DEA’s Detroit Division.

The DEA, Michigan State Police, and Grand Rapids Police Department investigated this case, which was prosecuted by Assistant U.S. Attorney Dan McGraw.

Note: View the Government of Brazil’s announcement here.

The Justice Department announced today the seizure of six websites as part of ongoing efforts by the Department of Justice and Homeland Security Investigations (HSI) to combat copyright infringement.

According to court records, unsealed today, the United States obtained court authorization to seize six domain names pending forfeiture. Four of those domains – “Corourbanos.com,” “Corourbano.com,” “Pautamp3.com,” and “SIMP3.com” – were registered with a U.S.-based registry, while two domains – “flowactivo.co” and “Mp3Teca.ws” – were registered through a U.S.-based domain registrar. According to court documents, law enforcement identified these six domains as being used to distribute copyrighted material without the authorization of the copyright holders. A law enforcement investigation confirmed that copyright-protected music content was present and available for streaming or downloading on each of these six websites from the Eastern District of Virginia.

The seizure of these six domains by the government will prevent third parties from streaming and downloading copyright-protected content from these sites. Individuals visiting those sites now will see a message indicating that the site has been seized by the federal government, and visitors will be redirected to another site for additional information.

The seizure of the domain names was announced by Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia and Acting Special Agent in Charge Derek W. Gordon of HSI Washington, D.C.

The government is represented by Assistant U.S. Attorney Laura D. Withers in these matters.

Operation 404.4 is the result of collaborative efforts between the U.S. Attorney’s Office for the Eastern District of Virginia; the Government of Brazil Ministry of Justice and Public Security Cyber Laboratory; numerous Brazilian State police forces; HSI Washington, D.C.; HSI Attaché Brasilia, Brazil; the Department of Justice’s International Computer Hacking and Intellectual Property Advisor and Agent in São Paulo, the Criminal Division’s Computer Crime and Intellectual Property Section and Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT); the National Intellectual Property Rights Coordination Center; the UK Intellectual Property Office; and the City of London Police Intellectual Property Crime Unit.

Eight defendants were charged in the Eastern District of Pennsylvania today with scheming to fraudulently obtain more than $7 million in Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL), and pre-pandemic Small Business Administration (SBA) loans.

According to court documents, beginning in or around January 2018, defendants Frank Hamilton, 52, of Simi Valley, California; Michael Jones, 55, of Azusa, California; Tina Chen, 39, of Diamond Bar, California; Kenny Tran, 38, of Diamond Bar, California; Tim Park, 37, of Northridge, California; Peter An, 37, of Chatsworth, California; Joseph Greco, 42, of Simi Valley, California; Edwin Bonilla, 36, of Los Angeles, California, and others allegedly conspired to apply for SBA, PPP, and EIDL loans on behalf of their respective businesses that were dormant companies or companies with limited business operations. In exchange for fees, Hamilton, Jones, and others made the businesses appear to be functioning companies with operations and employees by creating fake documents, including fake bank statements and fictitious tax documents for the businesses. One conspirator provided a script for other conspirators to use in calls with lenders. The conspirators allegedly obtained over $7 million in PPP, EIDL, and SBA loans.

Court documents further allege that the conspirators followed so-called “forgiveness plans” that directed them to transfer the fraud proceeds as purported payroll payments for each of the companies that obtained PPP funds. These “forgiveness plans” were designed to disguise the proceeds as payroll payments and make it appear that the loan recipient was meeting the SBA requirement that a percentage of the PPP funds be used for payroll, thus increasing the likelihood that the loan recipient would qualify for loan forgiveness. At Hamilton’s direction, Jones, Chen, Tran, Park, An, Greco, and Bonilla wired the disguised fraud proceeds to a bank account in the name of a dormant company Hamilton controlled.

Hamilton, Jones, Chen, Tran, Park, An, Greco, and Bonilla are each charged with conspiracy to commit wire fraud. If convicted, they each face up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania; Special Agent in Charge Amaleka McCall-Brathwaite of the SBA Office of Inspector General (SBA-OIG) Eastern Region; Special Agent in Charge Yury Kruty of IRS-Criminal Investigation (IRS-CI) Philadelphia Field Office; Special Agent in Charge William Walker of Homeland Security Investigations (HSI) Philadelphia Field Office; and Special Agent in Charge Jacqueline Maguire of the FBI’s Philadelphia Field Office made the announcement.

This case was investigated by the SBA-OIG, IRS-CI, HSI’s Philadelphia Field Office, and the FBI’s Philadelphia Field Office.

Trial Attorneys David A. Stier and Patrick B. Gushue of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Judy G. Smith of the U.S. Attorney’s Office for the Eastern District of Pennsylvania are prosecuting the case.

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 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 https://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 https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

An information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.   

Gov. Bill Lee (R-TN) joins USA-IT partners for the United to Safeguard Tennessee from Illegal Trade summit.

“Tuesday morning, Governor Bill Lee addressed the Tennessee Chamber of Commerce about the consequences of illicit drug and counterfeit goods sales on the state’s economy. ‘It not only impacts the victims of illegal trade. It impacts trade in general. It impacts the business community in general’ Governor Lee said.”

“Larry Combs is the Senior Vice President of the Jack Daniels global supply chain. ‘We’ve now been in Tennessee for 155 years. One of the most valuable trademarks in the world. One of the most trusted brands. So it’s really really important that we protect that brand, our reputation for quality, and protect our consumers … We invest a lot in fighting this counterfeit product and illegal trade because the last thing we want to happen is to have one of our consumers have a bad experience or a consequence from buying counterfeit or illegal product,’ Combs said.”

“Kristin Reif, Director of Illicit Trade Prevention with Philip Morris International, says about $2.2 trillion is lost globally per year due to illegal trading. ‘The quantity of illegal trade, it’s enormous. The issue in itself is overwhelming,’ Reif said.”

“Tennessee Bureau of Investigation Director, David Rausch, says the TBI investigates thousands of illegal trade cases a year. Most of the cases involve drug and sex trafficking, or the sale of counterfeit products like fake Tennessee Titans merchandise.”

“The Tennessee Chamber of Commerce also calls Tennessee a key transportation hub for the southern United States based on its geographic location. Criminals transport contraband through the state in tractor- trailers, private vehicles, and package delivery services.”

Read and watch more here.

Nashville, Tennessee ⎯ The Special Investigations Section of the Tennessee Department of Revenue and the Metro Nashville Police Department conducted the investigation that led to the indictment and arrest of Mohammad Ghaleb Amer for tax evasion, theft, money laundering, and selling counterfeit merchandise. Revenue agents and officers from the Mt. Juliet Police Department arrested Amer, age 48, at his home. Bond was set at $50,000.

On June 8, 2022, the Davidson County Grand Jury indicted Amer on one count of tax evasion, one count of theft over $60,000, one count of filing false returns, one count of money laundering, and one count of selling counterfeit merchandise over $250,000.

“The Department of Revenue promotes voluntary taxpayer compliance by educating taxpayers, aggressively pursuing criminal sanctions and demanding accountability when taxpayers engage in fraudulent activity,” Revenue Commissioner David Gerregano said. “This indictment underscores the department’s ongoing efforts to enforce Tennessee’s tax laws.”

If convicted, Amer could be sentenced to a maximum of two years in the state penitentiary and fined up to $3,000 for each count of tax evasion, 12 years and $25,000 for money laundering and theft, and 25 years and $50,000 for the sale of counterfeit goods.

The department is pursuing this criminal case in cooperation with District Attorney Glenn Funk’s Office. Citizens who suspect violations of Tennessee’s revenue laws should call the toll-free tax fraud hot line at (800) FRAUDTX (372-8389).

The Department of Revenue is responsible for the administration of state tax laws and motor vehicle title and registration laws and the collection of taxes and fees associated with those laws. The department collects about 87 percent of total state revenue. During the 2021 fiscal year, it collected $18.4 billion in state taxes and fees and more than $3.7 billion in taxes and fees for local governments. To learn more about the department, visit www.tn.gov/revenue.

SAN DIEGO – A two-year investigation has led to the indictment of 26 defendants for international drug smuggling, drug trafficking, and related conspiracy offenses. One of the defendants, Raul Barajas-Padilla, appeared in federal court June 13, for an initial appearance on the indictment. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation.

So far, 17 defendants have been arrested. Efforts remain ongoing to apprehend the remaining defendants.

According to publicly filed documents, the Drug Enforcement Administration (DEA)-led the investigation into a drug-trafficking conspiracy extending from Sinaloa, Mexico, into the United States.

Agents identified Mexico-based traffickers who coordinated shipments of counterfeit pharmaceutical pills laced with fentanyl, powder fentanyl, heroin, methamphetamine, and cocaine into the United States. These efforts yielded seizures of more than 478,000 counterfeit pharmaceutical pills laced with fentanyl, as well as about 51 kilograms of methamphetamine, 10 kilograms of cocaine, 4 kilograms of powder fentanyl, and 4 kilograms of heroin. Agents also seized about $230,000 in assets.

According to the indictment, DEA agents also identified the distributors in the U.S.; couriers responsible for transporting drugs; people who managed stash houses; individuals who smuggled illicit proceeds back to Mexico; and other dealers.

“The criminal investigation that led to this indictment is a great example of successful collaboration between multiple law enforcement agencies determined to prevent illegal narcotics from entering our communities,” said Chad Plantz, special agent in charge of HSI San Diego. “HSI will continue working with our federal, state, and local law enforcement partners to bring to justice those who smuggle dangerous narcotics across our borders.”

“This long-term investigation has resulted in the seizure of nearly half a million fentanyl-laced counterfeit pills plus additional quantities of fentanyl in powder form,” said U.S. Attorney Randy Grossman. “As fentanyl continues to fuel the ongoing opioid epidemic and claim ever more lives, we will use every available resource to find, apprehend, and hold accountable those who seek to profit from it, no matter where they are.” Grossman thanked the prosecution team as well as the DEA, HSI agents, the San Diego County Sheriff’s Department and supporting local, state, and federal partners who conducted this investigation for their excellent work on this case.

“Drug cartels, such as the Sinaloa cartel, are driving addiction and overdose deaths in the United States,” said Shelly S. Howe, special agent in charge of the DEA. “This extensive investigation demonstrates DEA’s resolve to hold drug dealers accountable for their destruction and to prevent massive amounts of fentanyl pills and other addictive drugs from being sold to our citizens.”

OCDETF is the largest anti-crime task force in the country. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.

Homeland Security Investigations (HSI) is the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of over 10,400 employees consists of more than 7,100 special agents assigned to 220 cities throughout the United States, and 80 overseas locations in 53 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.

SAN DIEGO – A local drug dealer pleaded guilty to possession with intent to distribute fentanyl and methamphetamine, June 17, in federal court, after admitting he supplied a fatal dose of fentanyl resulting in the death of a 24-year-old woman found inside her Vista apartment on Nov. 3, 2020.

According to his plea agreement, Cole Thomas Salazar, 32, used an online classified advertisement service to offer controlled substances for sale. After communicating online with the victim – identified in court documents by the initials S.E.F. – Salazar sold fentanyl to S.E.F. on Nov. 2, 2020. Subsequently, she died from ingesting the fentanyl. The plea agreement stipulates for Salazar that the commission of the offense of distribution of fentanyl resulting in death and/or serious bodily injury applies.

The investigation and arrest of Salazar and his co-defendant, Valerie Lynn Addison, 40, was featured on the HBO show “The Crime of the Century.” Addison also pleaded guilty to possession with intent to distribute fentanyl and methamphetamine.

On Jan. 10, 2021, law enforcement officials arrested Salazar, who possessed packages of heroin and fentanyl when he was taken into custody. A search of his nearby hotel room resulted in the discovery of numerous quantities of controlled substances, including more fentanyl and dealer-related paraphernalia such as scales, baggies, and pay and owe sheets.

“These guilty pleas are the result of joint efforts between Homeland Security Investigations (HSI), Drug Enforcement Administration (DEA), the San Diego Sheriff’s Department, the San Diego County District Attorney’s Office and the U.S. Attorney’s office, working tirelessly to identify criminals who profit from selling lethal drugs in the San Diego community,” said Chad Plantz, special agent in charge of HSI San Diego. “HSI will continue to assist the DEA and our state and local partners to bring drug dealers to justice, while also aggressively pursuing drug cartels who smuggle dangerous drugs into the U.S.”

“We speak often about how counterfeit pills that contain fentanyl endanger our community members,” said U.S. Attorney Randy Grossman. “We can’t lose sight of the fact that powdered fentanyl – which caused the death in this case – is extremely dangerous. To those drug dealers who would sell fentanyl in all its forms: Know that federal law enforcement will hold you accountable for any deaths that your sales cause.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case and unfortunately, many others like it.

“The investigators on the DEA Overdose Response Team work tirelessly to identify and arrest people who cause fentanyl overdose deaths, such as Cole Salazar,” said Shelly S. Howe, DEA special agent in charge. “Our mission is to hold dealers accountable and to save lives. In this case, that mission was accomplished by arresting Salazar and seizing additional fentanyl that could have killed others.”

Salazar and Addison are scheduled to be sentenced on Sept. 16 before U.S. District Judge Cathy Ann Bencivengo.

This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and the DEA to investigate and prosecute the distribution of dangerous illegal drugs, fentanyl in particular, that result in overdose deaths. The DEA created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County. Investigators from the DEA Overdose Response Team led the investigation into S.E.F’s death.

HSI is the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of over 10,400 employees consists of more than 7,100 special agents assigned to 220 cities throughout the United States, and 80 overseas locations in 53 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.

FRANKLIN, June 21, 2022 – Today, United to Safeguard America from Illegal Trade (USA-IT)—a coalition of more than 75 national and state brand enforcement experts, law enforcement agencies, academics, and leading business organizations—joined the Tennessee Chamber of Commerce & Industry in hosting a summit examining the recent surge of illegal trade in Tennessee; including counterfeiting, smuggling, organized retail theft, and drug and human trafficking.

Tennessee Governor Bill Lee (R) spoke at the summit, highlighting Tennessee’s efforts to prevent illegal activity and keep communities across the state safe.

“We’ve made strong investments in proven crime prevention to protect every community and ensure no criminals profit at the expense of Tennesseans,” said Lee. “I commend law enforcement and local leaders for their continued partnership to curb illegal trade and keep Tennessee safe.”

Tennessee is a key transportation hub for the American South, attracting criminals who wish to profit from smuggling contraband within and beyond its borders. The increase in accessibility and volume of illicit substances wreaks havoc on Tennessee communities, with 80 percent of crimes in the state having an underlying drug-related cause. The proliferation of methamphetamine and fentanyl is unprecedented in Tennessee, and many of the criminals that move these and related drugs, such as fake prescription medications that are pure fentanyl and other deadly synthetic chemicals, traffic other contraband like counterfeit goods, weapons, and even people.

Launched in 2021, USA-IT is working across 15 states including Tennessee to empower local officials, law enforcement, and other leaders with new information and training programs and raise public awareness of the depth and severity of illegal trade in our communities.

Those in attendance also heard from Tennessee Homeland Security Commissioner Jeff Long, who spoke on links between illegal trade-related cases in the state and transnational crime. “When crimes such as counterfeiting and smuggling are reported, it can open the door to larger, more sinister cases involving some of the most dangerous criminal networks in the world,” Long said. “Money is what drives these organizations, and when there are avenues leading to profit, these groups will engage.”

The summit also included a panel consisting of prominent industry leaders and representatives of Tennessee law enforcement. Discussions centered around strategies to reduce the surge of counterfeit drugs, steps taken by law enforcement to dismantle crime syndicates operating in the state, and pathways to enhance information-sharing between the public sector and industry. Panelists and speakers included:

• Matthew Albence, USA-IT Spokesman and former Acting Director of U.S. Immigration and Customs Enforcement (ICE) (Panelist Moderator)
• Adolpho Birch III, Senior Vice President of Business Affairs & Chief Legal Officer for the Tennessee Titans
•  Bradley Jackson, President & CEO of the Tennessee Chamber of Commerce &  Industry
• David Rausch, Director of the Tennessee Bureau of Investigation
• Kristin Reif, Director of Illicit Trade Prevention for Philip Morris International
• Larry Combs, Senior Vice President & General Manager of Jack Daniel & Global Supply Chain Lieutenant Wayne Dunkleman, Interdiction Plus Unit of the Tennessee Highway Patrol

David Rausch noted during the panel that, “Criminals seize opportunities and show no concern for the lives they take or families they destroy in the process. The distribution of deadly illicit drugs and counterfeit medicines continues to climb around the country, but its impactful coalitions like USA-IT that can help push that trend downwards.” Lieutenant Wayne Dunkleman further cautioned that, “The methods used to traffic illicit narcotics and counterfeit drugs in our state are constantly changing. Those profiting from these criminal markets facilitate other tentacles of crime such as human trafficking that impact states well beyond our borders. “

Accentuating industry’s role in fostering alliances against black-market criminals, Larry Combs statedthat, “Every industry is subject to counterfeiting, which is why we have a responsibility to create information- sharing channels with other companies and sectors. Brown-Forman remains committed to offering our perspective to this growing conversation, and are encouraged by the resolve our friends in the public and private sectors have shown in fighting back.” Adolpho Birch III agreed, adding, “Just as referees work together to uphold the rules and regulations that keep players safe on the field, we must work together to uphold rules and regulations that keep consumers safe. It takes a team, and cohesiveness between all the players is key in succeeding.”

For more information about USA-IT’s efforts to combat illegal trade and to get involved, visit USAIT.org or email us at [email protected].

For media requests, please email [email protected]

About USA-IT
United to Safeguard America from Illegal Trade (USA-IT) is a public- and private-sector partnership designed to help protect American security and prosperity from black-market criminals.

Contact:
Sam Dashiell
U.S. Communications, Philip Morris International
T. +1 (202) 480 1617
E. [email protected]

USA-IT featured in Florida Politics coverage of Gov. DeSantis signing SB 1534.

“United to Safeguard America from Illegal Trade also applauded the passage of the legislation. ‘We applaud Attorney General Moody, Sen. Boyd and Rep. Clemmons for moving this important public safety legislation forward,’ said USA-IT spokesman and former director of U.S. Immigration and Customs Enforcement (ICE), Matt Albence. ‘States across the country are taking positive steps, equipping police and prosecutors with these new tools. Through cooperative, cross-sector efforts, we can all work together to stop Organized Retail Crime that is hurting our economy, endangering our citizens and providing a revenue stream for criminal organizations.’”

Read more here.

A Florida man was arrested today for allegedly distributing more than $230 million in adulterated HIV drugs that were ultimately dispensed to unsuspecting patients throughout the country.

According to an indictment unsealed today, Lazaro Hernandez, 51, of Miami, was allegedly part of a nationwide scheme to defraud the U.S. Food and Drug Administration (FDA) and illegally distribute more than $230 million in adulterated and misbranded prescription drugs that were dispensed to unsuspecting patients. As alleged in the indictment, Hernandez acquired large quantities of HIV medication illegally and then created false drug labeling and other documentation to make it appear as though these high-priced drugs had been obtained legitimately. To carry out the scheme, Hernandez and co-conspirators established licensed wholesale drug distribution companies in Florida, New Jersey, Connecticut, and New York. Hernandez and his co-conspirators used those companies to sell the adulterated drugs at steep discounts to other co-conspirators at wholesale pharmaceutical distributors in Mississippi, Maryland, and New York. Those wholesale pharmaceutical distributors then resold the drugs to pharmacies throughout the country, which billed the drugs to health insurers, including Medicare, and dispensed the adulterated and misbranded HIV medication to unsuspecting patients.

As alleged in the indictment, between approximately 2019 and 2021, the wholesale pharmaceutical distributors paid Hernandez and his co-conspirators more than $230 million for the illegally acquired and adulterated prescription drugs. Hernandez allegedly laundered those hundreds of millions of dollars through the use of several corporations in Miami.

Hernandez is charged with conspiracy to deliver into interstate commerce adulterated and misbranded drugs, conspiracy to traffic in medical products with false documentation, conspiracy to commit money laundering, and specific money laundering offenses. If convicted of all counts, he faces a maximum total penalty of more than 100 years in prison. The defendant was also charged in a separate, superseding indictment that was returned by a grand jury in Miami on June 14. Hernandez is scheduled to make his initial court appearance in both cases today in the U.S. District Court for the Southern District of Florida.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida, Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region, made the announcement.

HHS-OIG and FDIC-OIG are investigating the case.

Trial Attorney Alexander Thor Pogozelski of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Timothy James Abraham of the Southern District of Florida are prosecuting the case. Assistant U.S. Attorney Emily Stone is handling forfeiture.

An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

SACRAMENTO, Calif. — A federal grand jury returned a 19-count indictment Thursday against Quinten Giovanni Moody, aka Christano Rossi, 37, of Dublin, and Myra Boleche Minks, 46, formerly of Roseville, for drug trafficking, impersonating federal law enforcement officials, mail fraud, aggravated identity theft, and obstruction of justice, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between 2017 and 2022, Moody and Minks were part of an organization identified as the Moody-Minks organization, whose members engaged in a variety of criminal conduct. Specifically, Moody and Minks were the leaders of the organization’s unlawful transportation of marijuana from California to Georgia, Illinois, Michigan, Nevada, and Texas. Moody and Minks used couriers, airline employees, and a shipping company to transport the marijuana to various destinations. In addition, between April 2020 and May 2021, Minks impersonated special agents and employees of federal law enforcement agencies to seek nonpublic information related to organization members’ criminal conduct, to include:

• On April 13, 2020, Minks, posing as a DEA Special Agent, sought information concerning the victims of a fatal shooting on Interstate 880 in Oakland;
• On April 27, 2020, Minks, posing as an Assistant U.S. Attorney, sought information concerning a federal drug trafficking investigation regarding co-defendant Moody;
• On July 24, 2020, Minks, posing as a FBI Special Agent, attempted to dissuade a person from buying a property in Placer County, claiming that the seller was under investigation by the FBI;
• On Oct. 14, 2020, Minks, posing as an employee of the U.S. Secret Service, sought information from the Colma Police Department in San Mateo County regarding the location of a vehicle police had seized;
• On Jan. 25, 2021, Minks, posing as an Assistant U.S. Attorney, sought information regarding an ongoing murder investigation in San Francisco, including whether the person charged with the murder had cooperated with law enforcement; and
• On May 31, 2021, Minks, posing as an employee of the U.S. Department of Justice, sought information regarding a search warrant authorizing the disclosure of information regarding a cellphone number. Related to this impersonation episode, Minks and Moody have also been charged with impersonating an employee of the US DOJ and submitted to Phone Company 1 fake federal search warrants that sought the disclosure of GPS location data for a specific telephone number.

Also according to court documents, Moody, Minks, and co-defendant Jessica Tang, 48, of Sacramento, participated in a scheme to defraud the California Employment Development Department (EDD). The defendants obtained the names, social security numbers, and other personal identifying information (PII) of identity theft victims. They submitted applications for unemployment insurance benefits in the names of these victims without their consent and knowledge. The applications contained false and fraudulent representations, including false statements about the identity of the applicants, the applicants’ occupation and previous employment, and false addresses. In total, the defendants fraudulently caused EDD to disburse in excess of $120,000.

Also according to court documents, Moody and Minks obstructed justice. In April 2022, a federal magistrate judge in Sacramento signed warrants authorizing federal agents to seize two of Moody’s vehicles: a 1969 Chevrolet Camaro and a 1956 Chevrolet pickup truck. Agents seized the vehicles and put them in a secure parking lot at the FBI’s Atlanta Field Office. Thereafter, between May 8 and May 21, Moody and Minks gave a tow truck company employee fake federal court orders that purported to order the release of Moody’s vehicles. Moody and Minks directed the tow truck driver to take the fake court orders to the FBI’s Atlanta Field Office and remove the vehicles from the FBI’s secure lot.

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration, the California Highway Patrol, the Placer County Sheriff’s Office, the Placer County Probation Department, the San Mateo County Sheriff’s Office, the Colma Police Department, the Reno-Tahoe Airport Authority Police Department, the Roseville Police Department, the San Francisco Police Department, the Atlanta Police Department, the U.S. Department of Labor – Office of Inspector General, and the California Employment Development Department. Assistant U.S. Attorneys Brian A. Fogerty, Justin L. Lee, and Sam Stefanki are prosecuting the case.

If convicted of the drug trafficking offense, Moody and Minks face a mandatory minimum penalty of five years in prison and a maximum statutory penalty of 40 years in prison and a $5 million fine. If convicted of the false personation offenses, Moody and Minks face a maximum statutory penalty of three years in prison and $250,000 fine on each count. If convicted of the conspiracy and mail fraud offenses, the defendants face a maximum penalty of 20 years in prison and a $250,000 fine. If convicted of aggravated identity theft, the defendants face a mandatory consecutive sentence of two years in prison. If convicted of the obstruction of justice, Moody and Minks face a maximum penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

A federal grand jury in the Middle District of Georgia returned an indictment yesterday charging five alleged members of the Gangster Disciples with murder and racketeering related to the alleged murder of three people, as well as various other offenses including drug trafficking and obstruction of justice.

Philmon Deshawn Chambers, aka Dolla Phil, 33, of Atlanta; Andrea Paige Browner, aka Light Brite, aka Shawty, 27, of Athens, Georgia; Lesley Chappell Green, aka Grip, 34, of Stone Mountain, Georgia; Robert Maurice Carlisle, aka Different, 33, of Lithonia, Georgia; and Shabazz Larry Guidry, aka Lil L, aka L, aka Lil Bro, aka Lil Larry, 27, of Decatur, Georgia, are each charged with Racketeer Influenced and Corruption Organization (RICO) conspiracy. Chambers and Browner are additionally charged with murder in aid of racketeering; the carry, use and discharge of a firearm during and in relation to a crime of violence; and use of a firearm resulting in death.

The Gangster Disciples are a national gang with roots in Chicago, Illinois, dating back to the 1970s, and are now active in at least 25 states. Among the crimes alleged in the indictment are three gang-related murders triggered by the murder of a Gangster Disciple member. After that murder, other Gangster Disciples allegedly sought to identify and retaliate against those responsible for the victim’s death. Chambers allegedly followed Rodriguez Apollo Rucker to his Athens residence where he shot and killed Rucker.

According to the indictment, after learning that police suspected Chambers of Rucker’s murder, Chambers and Browner fled from Georgia to Texas. In order to cover up this crime, Chambers allegedly ordered that fellow gang members he suspected of cooperating with law enforcement, Derrick Ruff and Joshua Jackson, be killed. Defendants Green, Guidry and Carlisle allegedly shot and killed Ruff and Jackson and left their bodies in a storage unit in Lawrenceville, Georgia, where they were discovered four months later.

Chambers allegedly held a “Position of Authority” with the Gangster Disciples organization, which included overseeing members of the “Enforcement” or “Elimination” team (E-Team); Browner was allegedly a member of the “Sisters of the Struggle” or “SOS,” a parallel female component of the Gangster Disciple organization; Green allegedly was a member of the E-Team; Carlisle was a member of the GD organization; and Guidry allegedly held a “Position of Authority” as the “Assistant Literature Coordinator.”

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and U.S. Attorney Peter D. Leary for the Middle District of Georgia made the announcement.

The case is being investigated by FBI Athens Resident Agency Middle Georgia Safe Streets Gang Task Force, Athens-Clarke County Police Department, and Gwinnett County Police Department.

This case is being prosecuted by Trial Attorney Ken Kaplan of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Mike Morrison of the Middle District of Georgia.

These cases are being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

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

U.S. District Court Judge Kenneth D. Bell sentenced defendant Thuy Tien Luong, 38, of Charlotte, North Carolina, to 15 years in prison and ordered her to pay $75,000 in restitution to the victim. A federal jury previously convicted the defendant of forced labor on Jan. 8, 2021, following a five-day trial.

According to the evidence presented at trial, the defendant compelled the victim’s labor for almost two years through a variety of coercive means. The defendant physically, emotionally and verbally punished the victim when she disobeyed the defendant or otherwise failed to perform the required labor to the defendant’s satisfaction. As an example, the defendant falsely claimed that the victim owed her a debt of $180,000, made her sign a debt contract, and threatened to go to the police if the victim did not continue to work to pay off the fabricated debt. The defendant beat the victim with nail salon tools, including cuticle clippers, nail files and brooms leaving the victim with scars, bruises and marks. She also threatened to ruin the victim’s reputation with her family by threatening to tell them information that would negatively impact the victim’s relationship with her family. The defendant’s scheme caused the victim to continue working for the defendant until a particularly violent assault led her to report the defendant to the Davidson Police Department.

“This defendant used psychological coercion, debt bondage and violence to break down the will of one of her employees, exploit her vulnerabilities and force her to work long hours under threat of serious harm,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “There continues to be no place for such cruel conduct in our society, and the Department of Justice remains committed to identifying and eliminating human trafficking.”

“Human trafficking is human suffering and it has no place in modern society,” said U.S. Attorney Dena J. King of the Western District of North Carolina. “As our nation prepares to commemorate Juneteenth, it’s difficult to grasp that there are still people in our communities subjected to a life of servitude, compelled to work long hours for little or no pay, abused physically and mentally by those who ‘employ’ them. Traffickers who use their victims as commodities, take advantage of their needs and exploit their vulnerabilities for personal gain will be prosecuted to the fullest extent of the law.”

“Luong’s egregious criminal conduct is a form of human trafficking that not only exploited our nation’s labor laws, but also subjected the victim to unspeakable harm, including physical and mental abuse,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “Thankfully, HSI and its law enforcement partners have put an end to Luong’s activity and she is facing appropriately severe consequences. Pursuing human traffickers and protecting their victims remains a top priority of HSI.”

Assistant Attorney General Clarke, U.S. Attorney King and Special Agent in Charge Martinez announced today’s sentence. The case was investigated by HSI with assistance from the Davidson Police Department and Charlotte-Mecklenburg Police Department. It was prosecuted by Assistant U.S. Attorney Kimlani M. Ford of the Western District of North Carolina and Trial Attorney Maryam Zhuravitsky of the Civil Rights Division’s Human Trafficking Prosecution Unit. Trial Attorney Jessica Arco of the Civil Rights Division’s Human Trafficking Prosecution Unit assisted with sentencing and restitution in this matter.

Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.

SACRAMENTO, Calif. — Akrum Alrahib, 43, of Miami, Florida, was sentenced today to five years in prison and ordered to pay over $10 million in restitution for conspiring to commit mail fraud in non-cigarette tobacco schemes that defrauded the State of California of over $10 million in unpaid excise taxes, U.S. Attorney Phillip A. Talbert announced.

Non-cigarette tobacco (known as Other Tobacco Products or OTP) consists of tobacco products such as cigars, chewing tobacco, and leaf tobacco. During the relevant time period, California imposed an average excise tax of about 28.13% of the wholesale cost of the OTP between April 2016 and June 2016; 27.30% between July 2016 and June 2017; and 65.08% between July 2017 and December 2017. California licensed tobacco distributors are required to collect this tax when they distribute the product within the state. The distributor must then submit to the California Department of Tax and Fee Administration (CDTFA) in Sacramento (formerly the Board of Equalization) monthly reports reflecting the amount of untaxed OTP sold in the previous month and the amount of excise tax owing, and the payment of the excise tax.

According to court documents, between April 2016 and December 2017, Alrahib led two conspiracies involving multiple individuals and businesses operating in California. As the leader, Alrahib provided untaxed OTP to various individuals and companies in California, knowing that the products would be sold illegally without collecting the required excise tax, resulting in a loss to the State of California of over $10 million in tax revenue.

“Today’s sentence is the result of a highly successful, collaborative effort involving federal and state investigators and prosecutors, working side-by-side,” U.S. Attorney Talbert stated. “We will continue to root out illegal conduct and tax evasion in the tobacco products industry.”

“The primary goal of ATF in combating tobacco trafficking is to enforce the federal laws relating to the trafficking of domestically produced and counterfeit cigarettes and tobacco products,” said Special Agent in Charge Patrick Gorman, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), San Francisco Field Division. “Partnerships are the backbone of law enforcement. ATF will continue to work alongside our partners to investigate incidents of illegal conduct and tax evasion of tobacco products.”

“Tax evasion is a serious crime, depriving our communities of critical resources and exposing law-abiding businesses to unfair competition,” said California Department of Tax and Fee Administration Director Nick Maduros. “We will continue to work with federal and state prosecutors to bring tax evaders to justice.”

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the California Department of Tax and Fee Administration. Assistant U.S. Attorneys Rosanne L. Rust and Michael D. Anderson prosecuted the case.

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A Nevada man pleaded guilty yesterday to aggravated identity theft, wire fraud and money laundering. On March 28, he pleaded guilty to a separate indictment charging him with filing false tax returns with the IRS on behalf of clients, aggravated identity theft, wire fraud and impersonating an FBI agent.

According to court documents, King Isaac Umoren, 41, of Las Vegas, owned and operated Universal Tax Services (UTS), a tax preparation business. From 2012 through 2016, Umoren prepared and filed with the IRS tax returns for clients that included false deductions and fictitious businesses, in an effort to generate larger refunds than the clients were entitled to receive. At times, Umoren used the names and IRS preparer tax identification numbers of other UTS employees without their knowledge or consent, making it seem as if they, not he, had prepared the false returns. On Feb. 7, 2016, Umoren posed as an FBI agent, wearing a fake badge and tactical gear, and drove to a client’s house with police lights attached to his vehicle to demand payment of a tax preparation fee. Umoren required his clients to use a refund anticipation check program, which he utilized at times to secretly take fees out of clients’ tax refunds without their knowledge.

In May 2016, Umoren attempted to sell UTS. To induce potential buyers to purchase the company at an inflated price, he provided fraudulent documents — including forged bank statements, fabricated return preparation fee reports, false personal tax returns and other tax forms that had never actually been filed with the IRS — as well as the stolen tax and personal identifying information of approximately 12,000 taxpayers who were not UTS clients. Eventually, Umoren succeeded in inducing a victim to purchase UTS and received more than $3.8 million in the sale. Umoren used the sale proceeds to purchase land in Henderson, Nevada, and an automobile.

Umoren is scheduled to be sentenced on all charges on Nov. 2. He faces a maximum sentence of five years in prison on each count of helping file a false tax return for others, three years in prison for impersonating a federal agent, 10 years in prison for each money laundering count, 20 years in prison on each of the wire fraud counts, and a mandatory minimum sentence of at least two years in prison based on the aggravated identity theft counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.

IRS-Criminal Investigation, the Treasury Inspector General for Tax Administration, and the FBI are investigating the case.

Trial Attorneys Sarah A. Kiewlicz and Patrick Burns of the Tax Division are prosecuting the case.