Month: June 2022

Source: United States Department of Justice News

A Nevada man was arrested today in Los Angeles for an alleged investment fraud scheme that defrauded more than 10,000 victims of over $45 million. A federal grand jury in the District of Nebraska previously returned an indictment on June 14 charging the man, which was unsealed today in Omaha.

According to the indictment, Neil Chandran, 50, of Las Vegas, owned a group of technology companies that he used in a scheme to defraud investors by falsely promising extremely high returns on the premise that one or more of his companies, operated under the banner of “ViRSE,” was about to be acquired by a consortium of wealthy buyers. Chandran’s companies — which included Free Vi Lab, Studio Vi Inc., ViDelivery Inc., ViMarket Inc., and Skalex USA Inc., among others — developed virtual-world technologies, including their own cryptocurrency, for use in the companies’ own metaverse. The indictment alleges that Chandran caused other individuals to make various materially false and misleading representations to investors, including that (a) investors in Chandran’s companies would soon receive extremely high returns when one or more of those companies was purchased by a group of wealthy buyers, (b) investor funds would be used for normal expenses to keep the companies operating until they were purchased, and (c) prominent business figures, including two billionaires, were involved in the purchase. In fact, according to the indictment, there was no such buyer group that was about to purchase the companies for the claimed returns; a substantial portion of the funds were misappropriated for other business ventures and the personal benefit of Chandran and others, including the purchase of luxury cars and real estate; and there were no prominent billionaires involved in purchasing Chandran’s companies.

Chandran is charged with three counts of wire fraud and two counts of engaging in monetary transactions in criminally derived property. If convicted, Chandran faces up to 20 years in prison for each of the wire fraud counts and up to 10 years in prison for each count of engaging in unlawful monetary transactions. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The indictment also alleges that 100 different assets — bank accounts, real estate, and luxury vehicles, including 39 Tesla vehicles — are subject to forfeiture as proceeds of the fraud. U.S. Marshals and the FBI are seizing most of the assets pending resolution of the criminal case.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Assistant Director in Charge Steven D’Antuono of the FBI Washington Field Office made the announcement.

The FBI Washington Field Office is investigating the case. Significant assistance was also provided by the FBI’s Las Vegas, Los Angeles, Miami, and Omaha field offices.

Assistant Chief William E. Johnston and Trial Attorney Tian Huang of the Criminal Division’s Fraud Section are prosecuting the case. Senior Policy Advisor Darrin McCullough and Trial Attorney Sarah Roessler of the Criminal Division’s Money Laundering and Asset Recovery Section are handling forfeiture. The U.S. Attorney’s Offices for the Districts of Nebraska, Nevada, and the Central District of California provided valuable assistance.

All investor victims of this fraud are encouraged to visit the webpage https://www.justice.gov/criminal-vns/united-states-v-chandran  to identify themselves as potential victims and obtain more information on their rights as victims, including the opportunity to submit a victim impact statement.

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

A Kansas man was sentenced today to 27 months in federal prison and 18 months of supervised release for threatening a Black man with a knife because of the man’s race, in order to intimidate and interfere with the man’s right to fair housing. Assistant Attorney General Kristen Clarke of the Department of Justice’s Civil Rights Division, U.S. Attorney Duston Slinkard for the District of Kansas and Special Agent in Charge Charles Dayoub for the FBI Kansas City Field Office made the announcement.

According to the court documents, on Sept. 11, 2019, Colton Donner, 27, was driving through a residential area of Paola, Kansas, when he saw the victim, a Black man, walking on the sidewalk. Donner stopped, got out of the car, and approached the victim while brandishing a knife. Donner threatened the victim, yelled racial slurs, and told the victim that Paola is a “white town.”

“Racially-motivated threats and violence have no place in our society today,” said Assistant Attorney General Clarke. “This sentence should send a strong message to perpetrators of violent hate-fueled acts that they will be held accountable for their crimes. Everyone deserves to feel safe and secure living in their communities, without being subject to racially-motivated crimes seeking to drive them from their homes or neighborhoods.”

“All Americans have the freedom to decide where they want to live, and to do so without fear of being threatened because of their race,” said U.S. Attorney Slinkard. “Hopefully this prison sentence will deter those who would commit acts of racial discrimination and violence by illustrating the Justice Department’s steadfast resolve to prosecute these crimes.”

“Every individual has the right to occupy a home free from racial discrimination, yet the defendant targeted the victim for no other reason than the victim’s race,” said Special Agent in Charge Dayoub. “The defendant’s actions, directly undermined the victim’s right to reside in a community in Paola, and to enjoy the protections afforded under the federal civil rights act. The FBI, along with our law enforcement partners, have no tolerance for this type of fear and intimidation and are committed to protecting residents regardless of their race, color, religion, gender, national origin or familial status.”

This case was investigated by the Paola Police Department and the Kansas City Field Office of the FBI. The case was prosecuted by Assistant U.S. Attorney Tristam Hunt of the District of Kansas and Trial Attorney Anita Channapati of the Civil Rights Division’s Criminal Section.

Source: United States Department of Justice News

A man who was arrested three times since 2019 for methamphetamine and firearms violations pleaded guilty Monday in federal court, announced U.S. Attorney Clint Johnson.

Richard Alan Stewart, 50, of Miami, pleaded guilty to three counts of Felon in Possession of Firearms and Ammunition; three counts of Possession of Methamphetamine with Intent to Distribute; Carrying a Firearm During and in Relation to a Drug Trafficking Crime; Carrying, Using, and Brandishing a Firearm During and in Relation to a Drug Trafficking Crime; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime.

Stewart, a convicted felon, brandished or possessed firearms on at least three different occasions along with methamphetamine that he intended to sell.

On Nov. 13, 2019, an Oklahoma Highway Patrol trooper stopped Stewart for a traffic violation. The trooper conducted a search of the car which revealed zip-lock bags of methamphetamine and pills along with a Spike’s Tactical multi-caliber semi-automatic rifle, which is an AR 15. Later, a search was conducted at Stewart’s home where law enforcement discovered 92 grams of methamphetamine.

On March 18, 2021, task force officers conducted a search of Stewart’s residence based on a tip that Stewart continued to traffic large quantities of methamphetamine. When officers confronted Stewart in the home, he drew a stolen Smith & Wesson .380 caliber pistol and pointed it at them. Officers forcibly removed the gun from Stewart’s hand and arrested him. During the search, officers found the following items:

-one black bag containing a large amount of methamphetamine, a loaded Smith    

  & Wesson .45 caliber revolver, digital scales, and a baggie with yellow pills;

-one black bag with bundles of U.S. Currency totaling $39,350;

-one Heritage .22 caliber revolver

-two additional bags of methamphetamine

-glass pipes

-additional U.S. currency

In total, officers located 1.4 kilograms of methamphetamine.

Finally, on May 17, 2021, Grove City Police officer pulled Stewart over for a traffic violation and conducted a search of the vehicle, which revealed 670 grams of methamphetamine, a glass pipe, a Ruger EC9s 9mm caliber pistol, and seven rounds of ammunition.

In total, law enforcement recovered five illegally-obtained firearms, ammunition, more than 2 kilograms of methamphetamine, and more than $40,000 from the investigation.

Stewart did not cooperate with law enforcement during the investigations. Stewart faces a 17-year sentence for the possession and brandishing of firearms charges and an additional 10 year sentence for distribution of controlled substances. Once sentenced, Stewart will serve a minimum of 27 years in federal prison.

This case was prosecuted as part of Operation Pullin Chains, an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles 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.

The Bureau of Indian Affairs, Drug Enforcement Administration, Oklahoma Highway Patrol, 13th District Drug and Violent Crimes Task Force, and Grove City Police Department conducted the investigation. Assistant U.S. Attorney Kyle M. McWaters is prosecuting the case.

Source: United States Department of Justice News

Memphis,  TN  – Christopher Cobb,  33,  has been sentenced to 84  months in  federal prison for 
being a felon in possession of a firearm. Joseph C. Murphy Jr., United States Attorney, announced 
the guilty plea today.

According  to  information  presented  in   court,  on   the  afternoon   of   April  22,  2021, 
Christopher Cobb called the United States Social Security Administration (“SSA”) office in Memphis, 
Tennessee to inquire about the status of his claim. Cobb became irate when the official  informed 
him that his claim  had been denied and he would need to file  an appeal. The  call was terminated 
by the  SSA when Cobb  became irate and began using profanity. Several minutes later, Cobb called 
back and threatened to “blow up” the Social Security building the next day.

A  search of  the  defendant’s home  revealed a  M-1  rifle  and ammunition. After  being advised 
of and waiving his Miranda rights, Cobb admitted to making the threat and to also possessing the 
M-1 rifle and ammunition.

Cobb was previously convicted for aggravated assault, convicted felon in possession of a firearm, 
failure  to  appear in  a  felony  case and robbery.  As  a  result of  his  prior  felony 
convictions, Cobb is prohibited by federal law from possessing firearms and ammunition.

On March 2, 2022,  Cobb pled guilty to communicating a threat and to being a  felon in possession 
of a firearm.

On June 9, 2022,  United States District Judge Thomas L. Parker sentenced Cobb to 84 months in 
federal prison to be followed by three years’ supervised release.  There is no
parole in the federal system.

“The  safety of  our  citizens  and  communities is  a  top  priority  for  Homeland Security 
Investigations (HSI) and threats against government facilities and employees must be taken 
seriously,” said HSI Nashville Special Agent in  Charge Jerry C. Templet Jr. “The investigative 
efforts of our special agents, working with their law enforcement partners, is reflected in the 
sentencing of this previously convicted felon.”

“This sentence reflects the severity of Mr. Cobb’s actions and should stand as a warning to anyone  
who threatens any SSA official who is  simply carrying out  their duties. This behavior will not be 
tolerated and will be prosecuted to the fullest extent of the law,” said Gail S. Ennis, Inspector 
General for the Social Security Administration.  “I thank the U.S. Attorney’s Office for 
prosecuting this case.”

This case was investigated by the Social Security Administration Office of the Inspector General 
and Homeland Security Investigations.

Assistant United States Attorneys Greg Wagner and Steven Hall prosecuted this case on behalf of the 
government.

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Source: United States Department of Justice News

An Ohio man was sentenced in federal court today to one year and one day in prison and three years of supervised release for interstate threats; and concurrently to 10 months in prison and one year of supervised release for Freedom of Access to Clinic Entrances (FACE) Act charges, for threatening to bring a bomb to a local reproductive health services facility.

Carlos Manuel Rodriguez Brime, 26, of Columbus, also threatened to kill a patient whom he believed was seeking reproductive health services, specifically an abortion, at the clinic.  

On April 11, 2021, Brime made two separate telephone calls to the local reproductive health care clinic. In the first, he made a death threat relating to the prospective patient and in the second, he made a bomb threat directly to the clinic, telling the clinic staff “my organization will be bringing a bomb to your facility. I suggest you close your doors.”

Specifically, Brime admitted to violating the FACE Act – which makes it a federal crime to threaten the use of force to intimidate anyone receiving or providing reproductive health services – and to transmitting a threat in interstate commerce.

[Draft AG Quote] “Protecting healthcare providers and individuals seeking reproductive health services from violence and threats of violence is critically important now more than ever,” said Attorney General Merrick B. Garland. “The Justice Department will continue to aggressively enforce the FACE Act and use every tool at our disposal to advance and protect reproductive freedom.” 

“Reproductive health providers and people seeking access to these services must be able to do so free from violence and threats of violence,” said Assistant Attorney General Kristen Clarke. “This sentencing should send a strong message that the Justice Department will continue to aggressively enforce the FACE Act and hold those accountable who violate the law. We stand ready to ensure that health care providers and people seeking reproductive health services are safe, secure and free from violence and threats of violence.”

“Threatening the life of anyone who seeks any type of health service is a heinous act that should not be tolerated,” said U.S. Attorney Kenneth L. Parker. “People must handle their disagreements to positions that are contrary to theirs in a more civil way than using the threat of force or any kind of intimidation.”

Brime was indicted by a grand jury and arrested in September 2021. He pleaded guilty in February 2022.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; U.S. Attorney Kenneth L. Parker for the Southern District of Ohio; Special Agent in Charge J. William Rivers of the FBI Cincinnati Field Office; and Columbus Police Chief Elaine Bryant announced the sentence imposed today by U.S. District Judge Edmund A. Sargus Jr. Assistant U.S. Attorneys Emily Czerniejewski and S. Courter Shimeall and Civil Rights Division Trial Attorney Sanjay Patel are representing the United States in this case.

If you or someone you know has experienced or witnessed a civil rights violation, please report this matter to the FBI at https://www.fbi.gov/investigate/civil-rights.