Month: January 2023

Posted on

Defendant Extradited to the United States from Mexico to Face Sex Trafficking Charges

Source: United States Department of Justice News

Leonardo Jimenez-Rodriguez was extradited to the United States yesterday and is scheduled to be arraigned today before United States Magistrate Judge Ramon E. Reyes, Jr., at the federal courthouse in Brooklyn on a six-count indictment charging him with sex trafficking conspiracy, sex trafficking, interstate prostitution, alien smuggling and related offenses.  The defendant was arrested in May 2022 in Mexico following a joint investigation by Homeland Security Investigations (HSI) Mexico City, HSI New York and the Mexican Federal Police. 

The defendant is charged in a superseding indictment together with his brother and co-defendant, Marcos Jimenez-Rodriguez, who was previously arrested in the United States.  The defendant’s sister, Melisa Jimenez-Rodriguez, was also previously arrested in the United States and is awaiting sentencing on the charge of distributing proceeds of a prostitution business.   

The extradition and charges were announced by Breon Peace, United States Attorney for the Eastern District of New York, and Ivan J. Arvelo, Special Agent-in-Charge, HSI New York.  

“As alleged, using false promises of love and support, the defendant and his siblings brutally sex trafficked women between Mexico and the United States for over two decades,” stated United States Attorney Peace.  “Stopping human trafficking and ensuring that traffickers face justice for the crimes against their victims remain priorities of this Office and our law enforcement partners.”

Mr. Peace commended HSI New York’s Trafficking in Persons Unit for leading the investigation of the Jimenez-Rodriguez Sex Trafficking Organization; thanked the HSI Mexico City Attaché Office, the Department of Justice’s Office of International Affairs, the State Department, Interpol, International Affairs Department of the Attorney General’s Office in Mexico, the Law Enforcement Unit of the State of Tlaxcala Attorney General’s Office, Interpol Mexico, and the New York City Police Department (NYPD) for their assistance; and praised the government of Mexico for its role in advancing bilateral anti-trafficking enforcement efforts.  Mr. Peace also acknowledged the non-governmental victim service providers and advocates for their dedicated efforts to restore and improve the lives of survivors of trafficking and their families.

“Yesterday’s extradition is the result of years of extraordinary collaboration between law enforcement agencies spanning multiple countries and investigative jurisdictions.  Leonardo Jimenez-Rodriguez is alleged to have been a part of his family’s transnational human trafficking organization which offered the chance at a better life to young women and girls before cruelly ensnaring them in forced sex work with no way to return home,” stated HSI Special Agent-in-Charge Arvelo.  “HSI is grateful to our colleagues with the HSI Mexico City Attaché Office and to our many partners in the United States and the Government of Mexico whose collaboration and teamwork make investigations like this possible.”

As alleged in the superseding indictment and other court filings, between 1997 and May 2018, Leonardo Jimenez-Rodriguez was a member of a family organization based in New York and Tenancingo, Mexico, that used force, fraud and coercion to cause young women in Mexico to engage in prostitution in the United States (the “Jimenez-Rodriguez Trafficking Organization”).  Leonardo Jimenez-Rodriguez, together with other relatives, lured victims into romantic relationships through false promises of love and support and pressured the victims to travel to the United States with promises of a better life.  After Leonardo Jimenez-Rodriguez and other members of the Jimenez-Rodriguez Trafficking Organization illegally smuggled young women from Mexico into the United States, they employed brutal physical beatings, intimidation, psychological abuse, and threats to force or attempt to force the women to work as prostitutes in New York City and elsewhere. The defendant is also charged with distributing the illicit proceeds of the sex-trafficking and prostitution enterprise.

The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty.  If convicted of the sex-trafficking related charges, the defendant faces a mandatory minimum sentence of 15 years’ incarceration and a maximum sentence of life in prison.

The investigation, prosecution, bilateral enforcement action and extradition of the defendants apprehended in Mexico were coordinated through the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative.  Since 2009, the Departments of Justice and Homeland Security have collaborated with Mexican law enforcement counterparts in a Bilateral Human Trafficking Enforcement Initiative to more effectively dismantle human trafficking networks operating across the U.S.-Mexico border, bring human traffickers to justice, restore the rights and dignity of human trafficking victims and reunite victims with their children.  These efforts have resulted in successful prosecutions in both Mexico and the United States, including U.S. federal prosecutions of over 175 defendants in multiple cases in Georgia, New York, Florida and Texas, in addition to numerous Mexican federal and state prosecutions of associated sex traffickers.  The extradition in this case is also the latest development in the Eastern District of New York’s comprehensive anti-trafficking program, which has to date indicted more than 100 defendants for sex trafficking; assisted nearly 200 victims, including over 50 minors, reunited 19 victims’ children with their mothers, and secured restitution orders of over $4 million on behalf of trafficking victims.

The government’s case is being handled by the Office’s Civil Rights Unit.  Assistant United States Attorneys Erin M. Reid, Gillian Kassner, Tara B. McGrath, and Lauren Bowman are in charge of the prosecution, with assistance from Paralegal Specialist Ryan Costley.

The New Defendant:

LEONARDO JIMENEZ-RODRIGUEZ
Age:  39
Mexico

Defendant Previously Arrested:

MARCOS JIMENEZ-RODRIGUEZ
Age:  46
Queens, New York    

MELISA JIMENEZ-RODRIGUEZ
Age:  41
Queens, New York

E.D.N.Y. Docket No. 21-CR-11 (S-1) (EK)

Posted on

Lawton Man Pleads Guilty to Child Sex Crimes, Witness Tampering

Source: United States Department of Justice News

A Lawton man was convicted in federal court for attempting to entice an undercover police officer whom he believed was a minor and for enticing a 12-year-old child to send sexually explicit pictures of herself, announced U.S. Attorney Clint Johnson.

Justin Eli Muncy, 46, of Lawton, pleaded guilty to attempted coercion and enticement of a minor; coercion and enticement of a minor; production of child pornography; and two counts of tampering with a witness by corrupt persuasion. Muncy was a convicted sex offender when he committed the crimes.

The stipulations in the plea agreement call for Muncy to serve 35 years in prison. A federal judge will determine whether to approve the plea agreement at later sentencing hearing.

According to the agreement, Muncy admitted that from Jan. 27, 2022, to April 14, 2022, he attempted to entice an individual he believed to be a 14-year-old minor to engage in sexual activity. Instead, he was communicating with an undercover officer.

Additionally, Muncy admitted that he coerced and enticed a 12-year-old child to take sexually explicit pictures of herself and send them to him via social media from Oct. 10, 2021, to April 14, 2022. The images are considered child pornography.

Finally, starting on April 14, 2022, Muncy made multiple attempts to obstruct the investigation and criminal proceedings related to his illicit conduct. For example, when he learned of a pending state arrest warrant, he hid his cell phone in the crawlspace of his home so investigators could not locate it. After his arrest, he wrote multiple handwritten letters from Tulsa County Jail requesting that a witness wipe his cellphone data or plant his phone at another individual’s home to falsely implicate that individual. Muncy also mailed several letters directing the witness to lie during court proceedings regarding his case.

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tulsa County Sheriff’s Office are the investigative agencies. Assistant U.S. Attorney Leah Paisner is prosecuting the case.

The case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Justice Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

Posted on

Maryland Man Sentenced to More Than Six Years in Federal Prison for His Role in a $28 Million Ponzi Scheme Involving “1st Million Dollars” Wealth Management Company

Source: United States Department of Justice News

To Recruit Investors, the Defendant Falsely Promised Investor Victims that Investing with 1st Million Would Help Them Achieve Personal Wealth and Financial Freedom

Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Arley Ray Johnson, age 63, of Bowie, Maryland, yesterday to 78 months in federal prison, followed by three years of supervised release, for conspiracy, wire fraud, and securities fraud charges, in connection with a $28 million Ponzi scheme involving 1st Million, a purported wealth management and financial literacy company.  Johnson was convicted on September 29, 2022, after a 10-day trial. 

The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Matthew R. Stohler of the United States Secret Service – Washington Field Office; and Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service – Washington

According to the evidence presented at his trial, Johnson conspired with his co-defendants, including Dennis Mbongeni Jali and John Erasmus Frimpong to defraud investors through several related entities including The Smart Partners LLC, which did business as “1st Million Dollars” or “1st Million.”  Johnson served as the Chief Operating Officer for 1st Million, which was headquartered in Largo, Maryland. 

According to trial evidence, 1st Million presented itself as a wealth management and financial literacy company, with its core business offering being a 12-month guaranteed investment contract.  These investment contracts, entitled “Corporate Guarantees,” represented that the client’s principal would be invested in foreign currency or cryptocurrency and guaranteed individuals who invested money with 1st Million monthly returns ranging from 6% to 35% of the initial investment.  At the end of the investment period, the contract promised that the investor would receive the return of all of the principal invested.  In reality, the evidence at trial showed, 1st Million did not invest victims’ funds as promised and, instead, misappropriated the funds for themselves and used the funds to keep the scheme afloat, including using funds from new investors to repay existing investors. 

In addition to misrepresenting that victim funds would be used to invest, Johnson and his co-defendants also falsely stated that investors’ principal would be held in a trust account protected from any financial instability of 1st Million or market volatility.  In fact, victim funds were not placed in a trust account or otherwise guaranteed.  In addition, Johnson and his co-defendants falsely claimed that 1st Million was financially healthy and earning astronomical profits, but 1st Million’s accounts, some of which were controlled by Johnson, were frequently overdrawn and 1st Million had substantial cash flow problems, all of which Johnson and his co-conspirators concealed from investors. 

As detailed in the trial evidence, Johnson and his co-defendants recruited victims to invest in 1st Million by holding promotional events at upscale hotels and event spaces, attending church-sponsored events intended to target investments from churchgoers, and representing themselves as religious men more interested in the financial freedom of others than personal financial gain.  Johnson and his co-defendants presented themselves as “pastors,” and told prospective investors that 1st Million’s work was in furtherance of God’s mission as it helped churches and their members achieve personal wealth and financial freedom.  Johnson and his co-defendants also hired “agents” of 1st Million to organize recruiting events to attract more investors, in exchange for a higher return on the agents’ investments.

By Spring 2019, 1st Million’s accounts were often overdrawn by hundreds of thousands of dollars, and some of the checks 1st Million sent to pay investors monthly returns were returned by the bank due to insufficient funds.  Nevertheless, Johnson and Frimpong continued to solicit funds from existing investors, as well as new investors, and failed to tell any of these potential investors of 1st Million’s financial problems.  Ultimately, the scheme collapsed in May 2019 and hundreds of 1st Million investors collectively lost millions of dollars. 

Over the course of the conspiracy, Johnson and his co-defendants persuaded or attempted to persuade more than 1,200 victims from across the United States to provide them with wire transfers, checks, and cash totaling more than $28 million, from numerous victims.  The evidence proved that although the victims were promised tremendous returns on their investments, Johnson and his co-conspirators did not invest any of the money, instead using it to fund their own lifestyles and to perpetuate the fraud scheme.

John Erasmus Frimpong, age 42, of Upper Marlboro, Maryland previously pleaded guilty to a wire fraud conspiracy, conspiracy to commit securities fraud, and to securities fraud.  Judge Chuang has scheduled sentencing for Frimpong on February 10, 2023, at 9:00 a.m.

Jali fled the United States in May 2019, but has since been arrested in South Africa. 

Separate civil actions filed against Johnson and his co-defendants by the Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission remain pending.

United States Attorney Erek L. Barron commended the FBI, the U.S. Secret Service, and the U.S. Postal Inspection Service for their work in the investigation.  Mr. Barron thanked Assistant U.S. Attorneys Caitlin R. Cottingham and Jennifer L. Wine, who are prosecuting the case.

For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.

# # #

Posted on

Erie Man Sentenced to 5 Years in Prison for Conspiring to Distribute Methamphetamine

Source: United States Department of Justice News

JOHNSTOWN, Pa. – A resident of Erie, PA, has been sentenced in federal court to a total of 60 months in prison followed by 4 years of supervised release on his conviction of conspiracy to distribute methamphetamine, United States Attorney Cindy K. Chung announced today.

Senior United States District Judge Kim R. Gibson imposed the sentence on Keegan McChesney, age 24. 

According to information presented to the court, from July 2019 to June 2020, McChesney did conspire to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine.

Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.

Ms. Chung commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation that led to the successful prosecution of McChesney. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.

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

Posted on

Defense News: USS Roosevelt Arrives in Rostock, Germany

Source: United States Navy

Roosevelt, forward-deployed to Naval Station Rota, Spain, is currently on its fourth Forward Deployed Naval Forces-Europe (FDNF-E) patrol.

While in port, the ship will receive stores and mail, refuel, and enjoy liberty in the local area. This is USS Roosevelt’s second time in Germany during her time as an FDNF-E ship – they last pulled in to Eckernförde in June 2021 following Exercise Baltic Operations 50 (BALTOPS).

“No matter how many times I visit Germany, it never fails to amaze me,” said Information Systems Technician 1st Class Justin Good. “The amount of history, the culture, the picturesque towns, and the always friendly people make Germany one of my favorite port visits during patrol.”

While in Rostock, Roosevelt will conduct tours of the ship for American Consulate General personnel, representatives from the German Navy, and officials from the U.S. Embassy. Roosevelt Sailors had the opportunity to tour a German Navy ship while in port and travelled as far as Berlin for liberty in the local area.

“Our German allies always impress me with their professionalism and vision. Working with them has been a highlight of operating in the Baltic, and port visits like Rostock give us an invaluable opportunity to interact with our partners face to face,” said Cmdr. John Mastriani, Roosevelt’s commanding officer. “Building these relationships increases our interoperability and helps enable our successful execution at sea.”

Prior to this port visit, Roosevelt completed a mid-patrol training and maintenance availability (TRAV) period in Naval Station Rota, Spain.

Roosevelt, forward-deployed to Rota, Spain, began its fourth Forward Deployed Naval Forces-Europe (FDNF-E) patrol Sept. 27 in the U.S. Naval Forces Europe area of operations, employed by U.S. Sixth Fleet to defend U.S., allied and partner interests.