Month: February 2023

Source: United States Department of Justice Criminal Division

The U.S. Postal Inspection Service (USPIS) announced today the disbursement of over $115 million to 38,889 victims in connection with fraud schemes processed by MoneyGram International Inc. (MoneyGram). The victims, many of whom are elderly, will recover the full amount of their losses.

“This distribution of $115.8 million to nearly 40,000 victims – each of whom is being fully compensated for their losses – demonstrates the Department of Justice’s continued commitment to making victims whole,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This is an example of how the department will use every tool at its disposal, including in corporate criminal matters, to provide justice to victims.”

MoneyGram originally entered into a deferred prosecution agreement (DPA) with the Department of Justice in 2012 for willfully failing to maintain an effective anti-money laundering program and aiding and abetting fraud schemes that generally targeted the elderly and other vulnerable groups. In November 2018, MoneyGram agreed to extend its DPA, implemented additional enhanced compliance obligations, and forfeited $125 million – representing the volume of consumer fraud transactions it processed during the DPA term. The USPIS is using these forfeited funds to compensate the victims of the fraud through the remission process. MoneyGram completed its DPA in May 2021.

“This $115 million disbursement provides a measure of financial justice for the many victims who were harmed by fraudsters who preyed on them,” said Inspector in Charge Christopher A. Nielsen of the USPIS Philadelphia Division. “The USPIS is proud to be part of this exemplary collaborative effort with our law enforcement and regulatory partners, particularly the U.S. Attorney’s Office for the Middle District of Pennsylvania, the Justice Department’s Money Laundering and Asset Recovery Section, and the Federal Trade Commission (FTC), to facilitate a process where victims are delivered restitution.”

“Working together with the skilled and dedicated investigators of the USPIS, the Justice Department’s Money Laundering and Asset Recovery Section, and the FTC, we have achieved outstanding results,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “This $115.8 million disbursement to over 38,000 victims demonstrates the commitment to compensate and serve justice to the victims of these frauds.”

The USPIS is managing the victim remission. The victim compensation in this case would not have been possible with the extraordinary efforts of the USPIS Philadelphia Division’s Harrisburg, Pennsylvania, office, which investigated the case, and the Money Laundering and Asset Recovery Section’s Bank Integrity Unit and the U.S. Attorney’s Office for the Middle District of Pennsylvania, who prosecuted the case.  

More information about the remission process is available at http://moneygramremission.com/.

Source: United States Department of Justice News

A federal indictment was unsealed in Albuquerque, New Mexico, charging a former private prisoner transport officer with sexually assaulting a female pretrial detainee during a prisoner transport and using a firearm in furtherance of his sexual assault.

According to the indictment, at the time of the alleged crime, Marquet Johnson, 44, worked as a private prisoner transport officer for Inmate Services Corporation, a company that was hired by local jails and prisons throughout the country to transport people who had been arrested pursuant to out-of-state warrants and needed to be transported back to the states that had issued the warrants.

Count one of the indictment charges Johnson, while acting under color of law, with willfully depriving a female pretrial detainee whom he was transporting from New Mexico to Colorado of her constitutional right to bodily integrity. The indictment alleges that Johnson’s conduct included the use of a dangerous weapon and aggravated sexual abuse. Count two charges Johnson with knowingly using, carrying and brandishing a firearm in furtherance of this crime of violence.

If convicted of the crimes charged, Johnson faces a mandatory minimum sentence of seven years in prison for brandishing his firearm, and a maximum sentence of life in prison.

The FBI Albuquerque Field Office investigated the case, with assistance from the Bernalillo County Sherrif’s Office.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Alexander M.M. Uballez for the District of New Mexico and Special Agent in Charge Raul Bujanda of the FBI Albuquerque Field Office made the announcement.

Assistant U.S. Attorney Kimberly Brawley for the District of New Mexico and Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section are prosecuting the case.

This investigation remains ongoing. Anyone with additional information is encouraged to call the Albuquerque FBI Field Office at (505) 889-1300.

An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty.

Source: United States Department of Justice News

COUNCIL BLUFFS, IA – Cindy Anne Ortiz, age 46 of Omaha, was sentenced on February 1, 2023, to 156 months in prison. In September 2022, a jury rendered a guilty verdict convicting Ortiz of possession with intent to distribute methamphetamine. Upon her release from prison, Ortiz was ordered to serve five years of supervised release.

On November 21, 2021, law enforcement officers were called to the Ameristar Casino Hotel in Council Bluffs regarding an unresponsive male in one of the hotel rooms. Ortiz rented the hotel room and reported the unresponsive male (an acquaintance) in her room to the front desk. The male was pronounced dead. Law enforcement searched the hotel room and bags Ortiz was seen carrying into the room on surveillance footage. Ortiz’s bag contained 643 grams of methamphetamine, empty baggies, a scale, and other paraphernalia.

United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department and Southwest Iowa Narcotics Enforcement Task Force investigated the case.

Source: United States Department of Justice News

KANSAS CITY, Mo. – Two Kansas City, Mo., men have been sentenced in federal court for their roles in a nearly $10 million conspiracy that distributed almost 1,000 kilograms of methamphetamine.

Fahrudin F. Fejzic, also known as “Frank,” 51, was sentenced by U.S. District Judge Greg Kays on Thursday, Feb. 9, to 24 years and two months in federal prison without parole. The court also ordered Fejzic to pay a money judgment of $325,000, which represent the proceeds of illegal drug trafficking.

Lloyd L. Hagan, also known as “Trey,” 45, of Kansas City, Mo., was sentenced today to 18 years and nine months in federal prison without parole. The court also ordered Hagan to pay a money judgment of $19,442, which represents the proceeds of illegal drug trafficking.

On Aug. 26, 2022, Fejzic pleaded guilty to one count of conspiracy to distribute methamphetamine from Sept. 1, 2018, to Nov. 5, 2019, and to one count of possessing firearms in furtherance of a drug-trafficking crime. Hagan, in a separate but related case, pleaded guilty to his role in the drug-trafficking conspiracy on March 29, 2022.

On Feb. 19, 2019, law enforcement investigators were conducting surveillance on the residence of co-defendant Mirza Alihodzic, 37, of Kansas City, Mo. Fejzic and others were present with Alihodzic at the residence. Alihodzic and Fejzic were carrying items out of the house and putting them into a black BMW, which was parked in the driveway.

Fejzic left in a taxi, which took him to a residence in Grandview. Fejzic was then stopped by a police officer. Fejzic had a loaded Smith & Wesson 9mm semi-automatic handgun tucked in his backside waistband; he was carrying a bag that contained approximately four and a half pounds (more than two kilograms) of methamphetamine and a Romarm/CUGIR Mini Draco AK-47-type 7.62x39mm semi-automatic firearm with two high-capacity, 40-round magazines and 69 total rounds of ammunition.

Law enforcement officers also executed a search warrant the same day at Alihodzic’s residence. Officers found approximately 5.5 grams of methamphetamine, $1,620 in cash, and two firearms inside the residence. Officers also seized 18 firearms from Alihodzic’s BMW, including a Sten 9mm machine gun, two short-barreled shotguns (a Mossberg 20-gauge and a Revelation 16-gauge) and a stolen Sig Sauer 9mm handgun.

On at least two occasions in April and May 2019, Hagan was involved in the controlled purchase of a half-pound of methamphetamine for $2,300 by a law enforcement confidential human source. Hagan admitted that he purchased methamphetamine from co-conspirators that came from Alihodzic. Hagan sometimes received methamphetamine rather than cash in exchange for doing work on multiple houses for co-conspirators. He served as a middleman to pick up half-pound and quarter-pound amounts of methamphetamine to deliver to others to distribute. Hagan was responsible for the distribution of nearly two kilograms of methamphetamine.

Alihodzic was sentenced on Dec 1, 2022, to 35 years in federal prison without parole. The court also ordered Alihodzic to forfeit to the government $1,158,058, which represents his responsibility in trafficking 113.79 kilograms (more than 250 pounds) of methamphetamine (based on a conservative street price of $2,300 for 226 grams (a half-pound) of methamphetamine).

Eighteen defendants have been convicted in two separate indictments that resulted from this investigation. Fifteen defendants have been sentenced.

This case is being prosecuted by Assistant U.S. Attorneys Bradley K. Kavanaugh and Sean T. Foley, and Special Assistant U.S. Attorney Stephanie Bradshaw. It was investigated by the Kansas City, Mo., Police Department, the FBI, the Missouri State Highway Patrol, and the Mid-Missouri Drug Task Force.

Project Safe Neighborhoods

The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.