Month: April 2022

Source: United States Department of Justice News

An Ohio man pleaded guilty to wire fraud for operating a scheme where he solicited payment in exchange for purported hunting leases he had no rights to sell.

According to court documents, throughout 2019, Nathanal L. Knox, 30, of Ohio, operated a scheme where he placed online advertisements for hunting leases supposedly available on several parcels of land in Ohio. The defendant in fact had no rights to sell leases to the properties in question. He placed the advertisements on at least 38 different Facebook pages, including “Hunt Florida,” “Ohio Hunting Lease,” “Bow Hunting PA,” and “Alabama Deer Hunters.”

In these advertisements, the defendant solicited payment in exchange for purported hunting leases. The prices charged ranged from $400 to $5,000. The defendant requested payment from prospective clients be made through PayPal, Walmart 2 Walmart, Money Gram, Western Union and Venmo. When individuals inquired further about the purported leases, the defendant would provide pictures of mature bucks that he falsely claimed had been harvested by former clients on the parcels in question. After receiving initial payments, the defendant would send contracts and instructions via email.

The defendant was arrested on Sept. 30, 2019, by the Fayette County Sheriff’s Office while attempting to collect the second half of a $5,000 fee owed by two victims from Florida. The victims had travelled to the supposed lease site to scout the area, and been confronted by the landowner, at which point they learned they had been defrauded. They then contacted the Sheriff’s office and set up the meeting with the defendant, at which point he was arrested. During this time, the Ohio Department of Natural Resources, Division of Wildlife had received multiple complaints from landowners as well. Upon receiving the complaints, investigators obtained a copy of the initial sheriff’s report and began searching for the remaining victims through social media posts.

The investigation, carried out by the Ohio Department of Natural Resources, Division of Wildlife, in cooperation with the U.S. Fish and Wildlife Service, involved search warrants on social media accounts, subpoenas on payment facilitators, interviews of victims, and interviews of the target and related subjects. In total, the defendant solicited payment from at least 68 different individuals, all of whom resided outside of Ohio. At least 59 of these individuals sent initial payments to the defendant, totaling over $34,000.

“The Department of Justice prosecutes fraud in many forms,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The defendant’s scheme not only cheated dozens of innocent people, but also put landowners and hunters in harm’s way. The Department is grateful to its law enforcement partners for stopping Knox before anyone was injured.”

“Unfortunately, individuals can find themselves being victimized in so many different ways,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “In this case, it was a fraudulent hunting lease scheme, which we shut down to ensure no other persons were taken advantage of by Knox. The 59 persons who sent an initial payment to this defendant are 59 victims too many.”

“Protecting sustainable hunting of America’s wildlife resources is bedrock to our mission in the U.S. Fish and Wildlife Service,” said Assistant Director Edward Grace of the U.S. Fish and Wildlife Service Office of Law Enforcement. “Investigating those who prey on individuals attempting to hunt lawfully by defrauding them is our trusted responsibility to the American people.”

“We value our landowners and work hard to protect their interests as well as the interests of hunters. This case shows the results of that work,” said Kendra Wecker, Chief of the Ohio Department of Natural Resources, Division of Wildlife. “If you witness a wildlife violation in Ohio, we encourage you to call 1-800-WILDLIFE. Reports are kept anonymous, and you will be doing a great service to protect Ohio’s wildlife resources.”

Knox pleaded guilty to wire fraud. He is scheduled to be sentenced in the coming months and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Ohio Department of Natural Resources, Division of Wildlife, in cooperation with the U.S. Fish and Wildlife Service are investigating the case.

Trial Attorney Adam Cullman of the Justice Department’s Environment and Natural Resources Division, Environmental Crimes Section; Special Assistant U.S. Attorney, J. Michael Marous for the Southern District of Ohio; and Assistant Attorney General Sally Smetzer Montell of Ohio are prosecuting the case.

Source: United States Department of Justice News

A Florida woman was sentenced today to 151 months in federal prison, followed by three years of supervised release, for her work for and support of subscription-based sexually exploitative “child modeling” websites. The court also ordered the defendant to forfeit more than $2.2 million, as well as real property located in Weston, Florida.

According to court documents, Tatiana Power, aka Tanya Power, 41, of Weston, helped run the financial affairs of the Newstar Enterprise – an internet-based business aimed at for-profit sexual exploitation of vulnerable children under the guise of “child modeling,” through a collection of websites called the Newstar Websites. Power served as Vice President and part owner of Power Trading Inc., a Florida corporation used to control, operate and conceal the true nature of the Newstar Enterprise. From as early as 2009 through November 2019, Power served as Power Trading’s (and thus the Newstar Enterprise’s) bookkeeper. She oversaw Power Trading’s QuickBooks, filed its annual corporate registration documents, managed its bank accounts, paid salaries, helped wire money to foreign co-conspirators, and advised co-conspirators on how to evade law enforcement and conceal the true nature of monetary transactions. She routinely assisted in transferring money and making payments for the Newstar Enterprise. From January 2009 until November 2019, Power and her now deceased husband, Kenneth Power, made more than $2.2 million from the Newstar Websites.

According to court documents, founded around 2005, the Newstar Enterprise built, maintained, hosted and operated the Newstar Websites on servers in the United States and abroad. To populate the Newstar Websites with content, Newstar Enterprise members sourced, enticed, solicited, and recruited males and females under the age of 18, some of whom were prepubescent, to use as “child models” for the Newstar Websites. The Newstar Enterprise used the recruited child-victims, to produce more than 4.6 million sexualized images and videos to distribute and sell on the Newstar Websites. Some of those images and videos, though non-nude, depicted minors engaged in sexually explicit conduct. For example, images and videos sold on the Newstar Websites depicted children as young as six years old in sexual and provocative poses, wearing police and cheerleader costumes, thong underwear, transparent underwear, revealing swimsuits, pantyhose, and miniskirts. Most of the child-victims – recruited from Ukraine, Moldova, and other nations in Eastern Europe – were particularly vulnerable due to their age and socio-economic status. Law enforcement officers have disabled the servers hosting the Newstar Websites.

The Newstar Enterprise maintained a membership list for subscribers and customers of the Newstar Websites, who originated from 101 nations across the world. Images in the websites’ galleries were freely available to the public to preview, but greater access and more content required purchasing a subscription. The sale of purported “child modeling” content on the Newstar Websites generated more than $9.4 million during the conspiracy. To process, receive and distribute this money, Newstar Enterprise leaders fraudulently opened merchant and bank accounts in the United States and laundered proceeds using a bogus jewelry company. 

To date, six members of the Newstar Enterprise have been charged in connection with the Newstar Websites. The chart below shows the status of each case. 

The defendants have also been notified that the United States intends to forfeit a total of $9.4 million, which are alleged to be traceable to proceeds of the offenses, in addition to real property located in Florida.

These cases were investigated by Homeland Security Investigations (HSI) in Tampa and the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), with substantial assistance provided by the Criminal Division’s Money Laundering and Asset Recovery Section, HSI offices in Fort Lauderdale, Athens, and the Hague, U.S. Customs and Border Protection in Sofia, Bulgaria, as well as IRS Criminal Investigation in Tampa.

Assistant U.S. Attorney Frank Murray for the Middle District of Florida and Trial Attorney Kyle Reynolds of the CEOS are prosecuting these cases.

This investigation benefited from foreign law enforcement cooperation and substantial assistance by the Republic of Bulgaria, Supreme Cassation Prosecution Office and National Investigation Service; International Legal Assistance Center (IRC), North-Holland Unit; and the Czech Republic, Supreme Public Prosecutor’s Office, Czech Police. The Justice Department’s Office of International Affairs provided assistance securing foreign evidence and its Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) provided capacity building assistance and mentoring.

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

Source: United States Department of Justice News

BOISE – A Star woman pleaded guilty to making a false statement in connection with government contracts.

According to court records, between October 2012 and May 2018, Vicki Rice, 61, willfully made materially false certifications in the System for Award Management (SAM) that the business CAM Services, Inc. was a Service-Disabled Veteran-Owned Small Business (SDVOSB). Organizing documents for CAM listed F.M. as President, with 51% ownership, and Rice as Vice President, with 49% ownership. F.M. is a service-disabled veteran.

The Government’s investigation revealed Rice, who is not a service-disabled veteran, was the actual controller of CAM. In fact, Rice had control over CAM’s finances, taxes, business records and corporate maintenance, payroll personnel matters, administration, performance under the contracts, and SAM certifications. Rice exercised both day-to-day management and administration over CAM. Rice also exercised long-term decision-making for CAM.

SAM is the primary registrant database for federal contractors that is operated by the General Services Administration. Contractors are required to make multiple certifications in SAM prior to competing for and receiving federal procurement contracts. In addition, contractors are required to submit annual certifications in SAM. In the case of government contracts available to SDVOSBs, contractors must annually certify that their business is, in fact, an SDVOSB.

On behalf of CAM, Rice submitted bids to obtain commissary contracts at two military bases. Both contracts were set aside contracts for SDVOSBs. CAM was awarded both contracts, which had a combined value of over $11 million over five years. According to Rice’s tax returns, Rice earned $480,039 from CAM between 2012 and 2019.

Rice is scheduled to be sentenced on June 28, 2022 and faces a maximum penalty of five years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the General Services Administration Office of Inspector General, Department of Defense Office of Inspector General, Small Business Administration Office of Inspector General, and Internal Revenue Service Criminal Investigation, which led to charges.

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Source: United States Department of Justice News

Leonard C Boyle, United States Attorney for the District of Connecticut, announced that KEON COUNCIL, 44, of Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 18 months of imprisonment, followed by three years of supervised release, for distributing heroin.

According to court documents and statements made in court, in May 2020, the DEA New Haven Task Force and Waterbury Police Department began an investigation into a drug trafficking organization that was distributing large amounts of heroin, cocaine and crack in the Waterbury area.  The investigation included court-authorized wiretaps on multiple phones used by members of the organization, physical surveillance, controlled purchases of narcotics, and motor vehicle stops that resulted in the seizure of drugs.  In November and December 2020, Council was intercepted multiple times on a wiretap ordering distribution quantities of heroin from James Grant, also known as “Bobo,” “Bo,” and “Jimbo,”  Council then sold the drugs to his own customers.

On March 1, 2021, a federal grand jury in New Haven returned an indictment charging Council, Grant and 15 others.  On December 10, 2021, Council pleaded guilty to one count of conspiracy to distribute heroin.

Council has been detained since his arrest on March 3, 2021.  On that date, law enforcement executed seven search warrants and seized approximately 40,000 bags of suspected heroin, 350 grams of cocaine and 50 grams of crack cocaine, and nine firearms

Grant pleaded guilty and awaits sentencing.

This investigation has been conducted by the Drug Enforcement Administration New Haven Task Force and the Waterbury Police Department.  The DEA New Haven Task Force includes participants from the U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, Connecticut State Police and the New Haven, Hamden, West Haven, North Haven, East Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.

The case is being prosecuted by Assistant U.S. Attorneys Patrick F. Caruso and Brendan Keefe 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.

U.S. Attorney Boyle thanked the State’s Attorney’s Office for the Judicial District of Waterbury for its close cooperation in investigating and prosecuting this matter.