Month: August 2022

Source: United States Department of Justice News

A partner in several Key West labor staffing companies was sentenced today to more than 24 years in prison for tax, immigration, and money laundering crimes related to the operation of those businesses.

According to court documents and evidence presented at trial, Mykhaylo Chugay and others owned and operated a series of labor-staffing companies in southern Florida, including General Labor Solutions LLC, Liberty Specialty Service LLC, Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC, and Tropical City Group LLC, between August 2007 and July 2021. Through these staffing companies, Chugay facilitated the employment of individuals in hotels, bars, and restaurants in Key West and other locations, even though the employees were not authorized to work in the United States.

Chugay and his co-conspirators also defrauded the IRS out of more than $25 million in income and Social Security and Medicare taxes that should have been collected and paid over in connection with the employment of these workers. Chugay conspired with others to encourage some workers to enter the United States and remain in the country, in violation of immigration laws. Chugay and others sent checks and wires totaling more than $11 million in proceeds from the illegal scheme to conspirators in Ukraine and elsewhere.

In addition to the term of imprisonment, U.S. District Court Judge Jose E. Martinez for the Southern District of Florida ordered Chugay to serve three years of supervised release. Judge Martinez will enter a forfeiture money judgement and order Chugay to pay at a later date.

“Chugay’s illegal staffing and money laundering operation lasted more than a decade and cost the government millions of dollars in unpaid payroll taxes,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Employers who follow the rules and pay their fair share of taxes deserve to compete on a level playing field. Those who cut corners and evade their legal obligations should know they will be investigated and prosecuted.”

“The elaborate scheme organized by this organization took advantage of U.S. Government programs designed to assist vulnerable populations seeking assistance and a better life here in the US for their own personal gain,” said Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami. “This sentence is the culmination of a lengthy investigation which demonstrates the resolve and determination of HSI and its partners to stop individuals trying to take advantage of the systemic vulnerabilities to fuel their lavish lifestyles.”

“We are committed to finding criminals who break the law to gain an unfair market advantage and enrich themselves by avoiding to pay taxes,” said Special Agent in Charge Matthew D. Line of the IRS-Criminal Investigation Miami Field Office. “This is another example of how our local agents and staff applied their skilled forensic financial analysis and criminal investigative expertise to investigate crooked staffing companies engaged in illegal employment practices.” 

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida made the announcement.

The U.S. Department of Homeland Security’s Homeland Security Investigations and IRS-Criminal Investigation are investigating the case. U.S. Citizenship and Immigration Services and U.S. Customs and Border Protection, Air and Marine Operations provided substantial assistance at trial.

Senior Litigation Counsel Sean Beaty, Trial Attorneys Jessica A. Kraft and Nicholas J. Schilling Jr., and Paralegal Robert Resto of the Tax Division, and Assistant U.S. Attorney Chris Clark for the Southern District of Florida, are prosecuting the case.

Source: United States Department of Justice News

A man and woman who conspired together to distribute fentanyl were sentenced this week in federal court, announced U.S. Attorney Clint Johnson.

U.S. District Judge Rodney W. Sippel sentenced Jennifer Canales, 31, and Ali Bashir Milad, 33, both of Tulsa, to 120 months in federal prison followed by five years of supervised release. The codefendants previously pleaded guilty to drug conspiracy.

On Jan. 28, 2021, Tulsa police officers executed a search warrant on Caneles’ residence. Officers located just over 600 grams of fentanyl, a pill press, a blender used to mix the drug, cutting agents, and scales used to weigh the product. They also found two firearms and ammunition. Canales told officers the residence was hers and that she knew that Milad, who lived there, sold drugs. Milad was later arrested.

On April 15, 2021, a second search warrant was conducted at the residence. Officers found Canales hiding inside the home. In total, officers located approximately 1,280 grams of Fentanyl contained in multiple bags inside the residence, nearly $23,000 in cash, and a ledger that Canales used in the drug trafficking operation.

The Drug Enforcement Administration and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Joel-lyn A. McCormick prosecuted the case.

Source: United States Department of Justice News

LAS VEGAS – Clarence Meekins (36) made his initial appearance today for allegedly possessing a machine gun and selling Privately Made Firearms (PMFs) — including machine gun conversion devices known as “Glock Switches” — without a Federal Firearms License. Meekins was previously convicted of two felonies in New York State.

Meekins is charged by indictment with one count of engaging in the business of dealing or manufacturing firearms without a license, two counts of illegal possession of a machine gun, and four counts of felon in possession of a firearm. U.S. Magistrate Judge Nancy J. Koppe scheduled a jury trial for October 17, 2022, before U.S. District Judge Andrew P. Gordon.

The indictment alleges that, from March 22 to April 28, 2022, Meekins manufactured, possessed, and sold 3-D printed unserialized PMFs and Glock Switches, which are designed to convert semi-automatic pistols to fire as a fully automatic weapon. Meekins manufactured and sold the weapons without the required Federal Firearms License. Meekins was convicted for Hobbs Act robbery and brandishing a firearm during a crime of violence in Nassau County, New York. These prior felony convictions prohibit Meekins from possessing any firearm.

If convicted, the statutory maximum penalties are five years in prison for engaging in the business of dealing or manufacturing firearms without a license; 10 years in prison for illegal possession of a machine gun; 10 years for felon in possession of a firearm; not more than three years of supervised release, and a fine.

U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Patrick Gorman for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.

This case was investigated by the ATF. Assistant U.S. Attorney Allison Reese is prosecuting the case.

The charges contained in the indictment are merely allegations and the defendant is presumed innocent unless and until proven guilty.

If you have information about illegal firearms activity, you are urged to submit a tip to ATF by calling the hotline at 1-800-ATF-GUNS (1-800-283-4867) or through the ReportIt mobile app.

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Source: United States Department of Justice News

PEORIA, Ill. – A Tennessee man, Ryan Dale Gross, 26, of the 3400 block of Berkshire Circle, Johnson City, has been sentenced to 264 months imprisonment for four counts of sexual exploitation of a minor. The counts are to be served concurrently. Following his release, Gross must serve a 10-year term of supervised release and will be required to register as a sex offender.

At the sentencing hearing, the government presented evidence that in late 2020, a minor child residing in the Central District of Illinois was contacted over Snapchat by a person later identified as Gross. Gross falsely told the minor child he was 16 years old, and the chats progressed into Gross requesting sexually explicit photos of the minor victim despite knowing the victim’s age. At first, the minor refused, but Gross eventually coerced the victim into sending numerous images and videos that were sexually explicit in nature. In the chat conversations recovered by law enforcement, Gross threatened to expose the nude photos if the minor did not continue to send sexually explicit materials to his liking. Agents were able to trace the Snapchat conversations and images back to Gross and his residence in Johnson City, Tennessee.  Agents executed a search warrant on Gross’s house in February 2021 and confirmed he was the account holder who had exploited the minor.

At the hearing, U.S. District Court Judge James E. Shadid stated that the minor victim endured a “nightmare” at the hands of Gross’ conduct in the case, describing the threats as cold, mean, and calculated.

Gross was indicted in March 2021 and pleaded guilty in April 2022. A preliminary forfeiture order was issued for Gross’ Apple iPhone used in the commission of the offense.

The statutory penalties for sexual exploitation of a minor are 15 to 30 years imprisonment, a fine of up to $250,000, and up to a lifetime of supervised release for each count. Special assessments  under the Justice for Victims of Trafficking Act are also possible.

The Putnam County Sheriff’s Department and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorney Katherine G. Legge represented the government in the prosecution.

The case against Gross was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood 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. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov

Source: United States Department of Justice News

SPRINGFIELD, Ill. – In an effort to protect some of our most vulnerable citizens, financial institutions and federal, state, and local law enforcement agencies in Springfield are joining together to help educate and prevent financial crimes, especially those committed against the elderly. The effort includes a series of educational events at financial institutions and a partnership with Crimestoppers between July 27, 2022, and September 30, 2022, to both raise awareness regarding these schemes and to assist with the apprehension and prosecution of fraudsters.

According to the Federal Bureau of Investigation and the American Association of Retired Persons, Americans who are 50 years and older lost nearly $3 billion dollars to cybercrime in 2021, which represented a 62% increase from 2020. All other age groups also saw increasing rates of fraud. Almost a quarter of all losses were borne by people over 60 years of age. Confidence fraud, including grandparent, romance, and relationship scams more generally, was the costliest type of scam. Seniors in particular are often susceptible to fraudsters impersonating various types of people and ultimately asking for money. Cryptocurrency has exacerbated the problem. 

Signs of financial exploitation include an elder customer’s sudden change in banking activity including frequent ATM withdrawals, wire transactions, gift card purchases, or cryptocurrency purchases; a nervous or confused senior on the phone or in the bank; an elder customer who exits and immediately returns to the lobby; and elders who are elusive with details about why and to whom they are sending money or are confused about “missing funds.”

If a senior or friend or relative of a senior believes a senior is at risk of imminent danger or financial exploitation, they should call 9-1-1. Reports of financial exploitation and abuse should be reported to the non-emergency number at the Springfield Police Department (217-788-8311.) The Adult Protective Services Hotline number to report elder fraud is 866 800-1409. Elder fraud may also be reported to the Illinois Attorney General’s Office at 800-243-5377. Internet-based fraud should be reported to the FBI’s Internet Crime Complaint Center IC3,  https://www.ic3.gov/Home/FileComplaint. Additional useful information about elder frauds and scams is available at www.uspis.gov and www.ftc.gov.

Banks and law enforcement agencies participating in the campaign to prevent fraud include: the Bank of Springfield; Heartland Credit Union; Alliance Community Bank; Security Bank; the U.S. Attorney’s Office for the Central District of Illinois; Sangamon County States Attorney; Federal Bureau of Investigation, Springfield Office; Illinois Attorney General; Sangamon County Sheriff’s Office; and the Springfield Police Department.