Security News: Texas Man Sentenced to Ten Years in Prison for Fake Investment Fraud Scheme

Source: United States Department of Justice News

Defendant Defrauded More Than a Dozen Victims Out of Over $1 Million, Flaunted Fake Evidence of His Business Success,

            WASHINGTON – Sean T. Johnson, also known as Shawn Johnson, 42, of Dallas, Texas, has been sentenced to 10 years in prison for carrying out a six-year fraud scheme in which he tricked victims into investing with him in ventures that did not exist, and lied to victims about his professional background, his contacts with celebrities, and his personal net worth, in order to induce them to invest in the scheme.

            The announcement was made by U.S. Attorney Matthew M. Graves, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.

            Johnson pleaded guilty in November 2019 to one count of wire fraud and one count of aggravated identity theft in the U.S. District Court for the District of Columbia. He was sentenced on May 26, 2022, by the Honorable Richard J. Leon. Following his prison term, Johnson will be placed on four years of supervised release. The judge also ordered Johnson to pay restitution to the victims but will decide the precise amount of restitution at a later date.

            From September 2012 through October 2018, Johnson conned numerous unsuspecting victims out of money by posing as a wealthy investor and businessman.  While Johnson varied his approach based upon the personality, gender, and lifestyle of the victim, the scam almost always began with the defendant flashing money near the victim, name-dropping celebrity friends who were investors in his ventures, talking up his business acumen, and offering to “help” his friends become wealthy, like him. 

            To entice victims, Johnson wore expensive designer clothes, talked constantly about his wealth, and bragged about owning expensive houses and condominiums.  To add legitimacy to his scheme, he created “promissory notes” to document victims’ investments.  The promissory notes detailed how much the person invested and when and how much money Johnson promised to return to them.   With almost every victim, Johnson claimed to have an assistant whose identity he appropriated from a former co-worker, and he used fake accounts in this fake assistant’s name to communicate with his victims and lend credibility to his fake business ventures.  In total, Johnson swindled his victims from all over the country out of over $1 million.  He spent these illegal proceeds on lavish personal expenditures, such as luxury vehicles, designer clothing, alcoholic beverages at nightclubs, tickets to sporting events, and gambling at casinos. 

            More than a dozen victims submitted victim impact statements to the court in which they described the devastating emotional and financial consequences of the defendant’s misconduct.  Most victims lost the entirety of their savings, ruined their credit, and/or were forced into foreclosure or bankruptcy as a result of the scheme.

            Johnson was arrested in October 2018. He has been in custody since.

            In announcing the sentencing, U.S. Attorney Graves and Special Agent in Charge Jacobs commended the work of those who investigated the case from the FBI’s Washington Field Office and the assistance of the victims who came forward to report the defendant’s fraud scheme. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Amanda Rohde and Victim/Witness Advocate Yvonne Bryant.

            Finally, they commended the work of Assistant U.S. Attorney Kathryn Rakoczy and former Assistant U.S. Attorney David Misler, who prosecuted the matter.

Security News: Bartonsville Man Sentenced For Pandemic Loan Fraud

Source: United States Department of Justice News

SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Nazim Hassam, age 70, of Bartonsville, Pennsylvania, was sentenced yesterday by United States District Court Judge Malachy E. Mannion to 18 months in prison for money laundering stemming from an illegal transaction conducted with funds obtained through a fraudulent pandemic assistance loan application. 

According to United States Attorney John C. Gurganus, in April and June of 2020, Hassam applied for and received two loans under the federal Paycheck Protection Program (“PPP”) while making false statements on the applications.  In 2019, Hassam was indicted along with two businesses he co-owns, the Pocono Plaza Inn and Om Sri Sai, Inc., on felony charges related to sex trafficking and drug trafficking.  But when asked on the loan applications whether he or the companies applying for the loans were under indictment, Hassam falsely answered, “No.”  Hassam fraudulently obtained one loan for each of the two corporate entities, together totaling $89,308.  Hassam then conducted unlawful monetary transactions with the bulk of those funds. Specifically related to the count to which Hassam pleaded guilty, Hassam obtained $61,000 as a PPP loan for Om Sri Sai, Inc., a company that owns and operates a hotel in Bartonsville, Pennsylvania, and then transferred the funds from the corporation’s bank account to pay down a personal line of credit he held in his own name.  As part of the plea agreement with the Government, Hassam admitted that, in addition to the money laundering charge to which he pleaded guilty, he also committed the underlying fraud offenses. Hassam paid both loans back to the issuing banks, with interest, after he learned of the investigation but before sentencing.

Hassam’s sentence was enhanced because he committed this crime while on pretrial release in the drug and sex trafficking case. Hassam was previously convicted in that case after a trial and sentenced to 60 months in prison, along with a $150,000 fine. Judge Mannion ordered that 12 months out of the 18-month sentence in this case will run concurrently with the earlier sentence, and 6 months will run consecutively, as required by statute.

The case was investigated by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Sean A. Camoni prosecuted 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.

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

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Security News: Highlands Ranch Man Sentenced to Federal Prison for Using COVID Relief Funds for Plastic Surgery, Weight Loss and Jewelry

Source: United States Department of Justice News

DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Daniel Stonebarger, age 50, of Highlands Ranch, was sentenced to 41 months in federal prison for fraudulently obtaining funds intended to help small businesses during the COVID-19 pandemic.

According to the plea agreement, between April 5, 2020 and June 10, 2020, the defendant submitted numerous fraudulent applications for Economic Injury Disaster Loans and Grants (EIDLs and EIDGs), and Paycheck Protection Program loans (PPP) through the Small Business Administration.  The defendant used new and existing business names to apply for these loans, and falsified creation dates of businesses, numbers of employees, revenues, and costs.  In total, the defendant fraudulently obtained $855,252.50 in EIDL, EIDG, and PPP funds.  The defendant also applied for Colorado Pandemic Unemployment Assistance. As a result of this fraudulent claim he was paid $28,142 by the Colorado Department of Labor and Employment (CDLE). The defendant used these funds to pay for, among other things, plastic surgery for a relative, a weight loss program, bridal expenses, jewelry, a Peloton, travel, and resort expenses.

“This defendant took money that was supposed to be used to provide emergency financial assistance to small businesses and individuals suffering adverse economic effects caused by the COVID-19 pandemic. Prosecuting pandemic fraud is a priority of the Department of Justice and an ongoing focus for investigators here in Colorado,” said U.S. Attorney Cole Finegan.

“This defendant was a criminal opportunist who took advantage of what he saw as easy money through programs created to keep businesses afloat during the pandemic,” said FBI Denver Special Agent in Charge Michael Schneider. “This outcome is a reminder that the FBI aggressively pursues those who try to defraud the federal government.”

“We continue the pursuit of those who exploit taxpayer-funded relief programs for their own illicit gain,” said Marc DellaSala, Special Agent in Charge, U.S. Secret Service Denver Field Office. “Along with partners at the Federal Bureau of Investigation, our unified law enforcement community has taken unprecedented measures to identify, locate, and arrest those responsible for pandemic-related fraud. I want to thank the U.S. Attorney’s Office for its tireless support of these efforts.”

“We created the Colorado Unemployment Fraud Task Force to investigate and prosecute those who steal critical pandemic-related government funds for personal gain. I am thankful and proud of the collaboration between the task force and the U.S. Attorney’s office that enabled us to bring this defendant to justice for defrauding the government. When the public is cheated, we are all cheated and we’ll continue to hold fraudsters accountable,” said Colorado Attorney General Phil Weiser.

United States District Court Judge Raymond P. Moore sentenced the defendant on May 26, 2022 to 41 months in federal prison.  In addition to his prison sentence, the defendant was ordered to serve three years of supervised release.  He was also ordered to pay $794,462.08  in restitution to the SBA and $28,142 to the CDLE. The Court also issued a forfeiture money judgment in the amount of $822,794.50.  

The Denver Division of the FBI, the U.S. Secret Service, and the Colorado Department of Labor and Employment conducted the investigation.  Assistant United States Attorneys Martha A. Paluch, Sarah H. Weiss, and Tonya S. Andrews handled the prosecution of 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 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 via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Case number: 2020R00659

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Security News: Armed drug trafficker sentenced to federal prison

Source: United States Department of Justice News

AUGUSTA, GA:  An armed drug trafficker has been sentenced to federal prison after admitting he sold large quantities of drugs and possessed firearms in furtherance of the drug trafficking crime.

Jose Ramone Valero Jr., 24, of Stonecrest, Ga., was sentenced to 84 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute Marijuana, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Valero to serve three years of supervised release after completion of his prison term. There is no parole in the federal system.

“Illegal drugs and illegally possessed firearms are the combustible fuel that drives violent crime in far too many of our communities,” said U.S. Attorney Estes. “We will be relentless in removing dangerous criminals like Valero from our neighborhoods.”

Valero, previously a resident of Grovetown, Ga., and Augusta, prohibited from possessing firearms after being convicted of a misdemeanor crime of domestic violence, but was found with drugs and multiple guns during state arrests in 2019 and 2020.

While out on bond on state charges, Valero was charged in a superseding federal indictment in 2021 and pled guilty to the two felony charges in January 2022. The plea included forfeiture of 11 firearms.

“Project Safe Neighborhoods is ATF’s main initiative to remove armed offenders from our communities,” said ATF Assistant Special Agent in Charge Beau Kolodka. “This substantial sentence would not have been possible without the hard work of our partners at the Richmond County Sheriff’s Office and the Jefferson County Sheriff’s Office.”

This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make neighborhoods safer.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Richmond County Sheriff’s Office, and the Jefferson County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney and Criminal Division Chief Patricia G. Rhodes.

Security News: Honduran National and MS-13 Member Sentenced To Federal Prison

Source: United States Department of Justice News

Defendant Repeatedly & Illegally Entered the U.S. & Engaged in Violent Crime & Drug Trafficking

NASHVILLE – Franklin Pineda-Caceras, aka “Bomba,” 22, of Honduras, was sentenced yesterday to 90 months in federal prison for drug distribution and firearms crimes, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. 

Pineda-Caceras, an MS-13 Gang member, was initially charged in July 2019 with immigration violations, drug trafficking, and firearms violations, after previously being deported from the U.S.  He later pleaded guilty to illegal reentry of a previously deported alien; being an illegal alien in possession of ammunition; being an illegal alien in possession of a firearm; possession of a firearm with an obliterated serial number; and possession of marijuana and cocaine with the intent to distribute.  Pineda-Caceras proceeded to trial on the charge of possession of a firearm in furtherance of a drug-trafficking crime and was found guilty by a federal jury on February 9, 2022.

According to records filed with the Court, Pineda-Caceras unlawfully entered the United States in January 2014 and was deported in June 2016.  Immigration officials later learned that Pineda-Caceras had returned to the United States when they found him, in October 2017, in a residence in Nashville, with digital scales, 41 grams of cocaine, over 44 grams of marijuana, numerous handguns, an assault rifle, and an arsenal of ammunition. Pineda-Caceras was again deported in May 2018.

In January 2019, approximately seven months after his second deportation, Pineda-Caceras returned to the United States and committed a violent crime, when he kidnapped a student from a local area high school and beat the student after the student refused to join the MS-13 street gang. In July 2019, when agents attempted to arrest Pineda-Caceras for this crime, he fled from the police and drove his car through the front yard, where his girlfriend, son, and his girlfriend’s mother stood, nearly striking all three.

Approximately two months later, in September 2019, Pineda-Caceras was involved in a car accident and sustained injuries as a result. Items observed at the scene, and later seized during a search of his car, established that he was involved in drug trafficking. Specifically, when agents searched the car, they found digital scales, baggies, bags of cocaine packaged for resale, a revolver with an obliterated serial number, an AK-47 rifle, and approximately 200 rounds of ammunition. Agents also recovered numerous cellular telephones, which later revealed that Pineda-Caceras was selling drugs in the hours leading up to the crash.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; Homeland Security Investigations; the Drug Enforcement Administration; and the Metropolitan Nashville Police Department.  Assistant U.S. Attorney Ahmed Safeeullah and Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section prosecuted the case. 

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

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