Month: March 2023

Source: United States Department of Justice News

Two Metropolitan Transportation Authority (MTA) employees pleaded guilty on Feb. 9 to conspiring with another individual to engage in fraud on MTA excess vehicle auctions.  

According to two plea agreements filed on Feb. 9 in the U.S. District Court for the Southern District of New York in New York City, MTA employees Dzmitry Yaniuk and Marina Yaniuk engaged in a conspiracy with a third co-conspirator, Timour Abramov, to thwart the competitive bidding process on numerous excess vehicle auctions conducted by the MTA to ensure that a company controlled by the co-conspirators submitted the winning bid and would be awarded the contract. As part of the conspiracy, Marina Yaniuk, an MTA sales specialist, provided Dzmitry Yaniuk and Abramov confidential pricing information in violation of MTA rules. Abramov previously pleaded guilty to one count of fraud conspiracy on Jan. 30.

“The MTA’s riders and New York’s taxpayers trust government employees to put public service first,” said Director Daniel Glad of the Justice Department’s Procurement Collusion Strike Force (PCSF). “When public servants abuse their positions and cheat for personal gain, the Antitrust Division and its PCSF partners will hold them accountable.”

“Our office remains grateful for the diligence and commitment from our law enforcement partners at the Department of Justice, who continue to work to ensure that individuals attempting to defraud the MTA are held fully responsible for their actions and whose behavior should not unfairly reflect on tens of thousands of honest, hardworking MTA employees,” said Acting MTA Inspector General Elizabeth Keating.

Dzmitry Yaniuk and Marina Yaniuk each pleaded guilty to one count of fraud conspiracy that carries a maximum penalty of 20 years in prison, three years of supervised release, and a $250,000 fine. The fines may be increased to twice the gain derived from the crime or twice the loss suffered by the victim of the crime, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine the defendants’ sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

The guilty pleas are the result of an investigation conducted by the Antitrust Division’s New York Office, the Office of the MTA Inspector General, and the FBI New York Field Office. Acting Assistant Chief Steven Tugander and Trial Attorneys Milosz Gudzowski, Dina Hoffer, and Richard Samboy are prosecuting the case.

In November 2019, the Department of Justice created the PCSF, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government – federal, state and local. For more information, visit https://www.justice.gov/procurement-collusion-strike-force.

Source: United States Department of Justice News

Earlier today, in federal court in Brooklyn, Joseph Modile, a Nigerian national, pleaded guilty to an indictment in the Eastern District of New York charging him with conspiracy to commit bank and wire fraud and aggravated identity theft, and an information filed in the Southern District of Texas and transferred to the Eastern District of New York, charging him with money laundering and wire fraud.  The proceeding was held before United States Magistrate Judge Ramon E. Reyes, Jr.  When sentenced, Modile faces up to 20 years’ imprisonment for each of the fraud counts and the money laundering count and a consecutive sentence of two years’ imprisonment for the aggravated identity theft count.  Upon completion of his sentence, Modile faces deportation from the United States.

Breon Peace, United States Attorney for the Eastern District of New York, and Alamdar S. Hamdani, United States Attorney for the Southern District of Texas (SDTX), announced the guilty plea.

“With today’s guilty plea, Modile is revealed as a prolific fraudster and money launderer who has left a trail of fake documents, plundered bank accounts, and financial victims from Brooklyn all the way across the country,” stated United States Attorney Peace.  “I commend all of the law enforcement agencies for pulling together the threads of the defendant’s complex schemes in order to hold him accountable for his multiple crimes.”

“A major figure in fraud has been taken out of the equation,” stated United States Attorney Hamdani.  “Thanks to the partnerships in law enforcement and the sophisticated techniques used during the investigation, this prolific money launderer had no choice but admit his guilt and will be held accountable for his crimes.”

Mr. Peace expressed his thanks to the Federal Bureau of Investigation, U.S. Homeland Security Investigations, and the New York City Police Department, which conducted this investigation as part of an enterprise Priority Transnational Organized Crime (PTOC) of the Organized Crime Drug Enforcement Task Forces (OCDETF), the FBI’s Houston Field Office which led the OCDETF operation, the FBI’s Boston Field Office, U.S. Postal Inspection Service, Department of State, Diplomatic Security Service, New York County District Attorney’s Office, the Houston Police Department, and the Harris County District Attorney’s Office for their substantial assistance.  

In a scheme that was charged in the Eastern District of New York, from January 2014 and September 2018, Modile and others defrauded victims, businesses, and financial institutions in the United States through a sophisticated home equity line of credit (HELOC) scheme involving a series of bank account takeovers.  During this time, Modile and others also laundered proceeds from the bank account takeovers.  In furtherance of the HELOC fraud scheme, Modile and others acquired personal identifying information (PII) of the actual holders of the targeted bank accounts at the financial institutions.  The co-conspirators then used the PII to impersonate the actual holders of the targeted bank accounts, thereby gaining control of the accounts.  In some cases, members of the conspiracy recruited “runners,” who impersonated the actual account holders inside bank branches using forged and fraudulent identification documents created at the direction of Modile and others.  In most instances, the stolen funds were first deposited into fraudulent bank accounts set up and controlled by co-conspirators in the names of the actual victims from whom the money had been stolen.  In other cases, the bank accounts into which the stolen funds were first deposited were in the names of sham corporations, which were opened using false and fraudulent identification.  In total, Modile and others stole at least $5 million as part of the HELOC fraud scheme.

In a related scheme charged in the Eastern District of New York, in May 2018, Modile and others engaged in a separate Business Email Compromise scheme, using fraudulent emails and telephone calls to steal approximately $10.2 million from a victim company.  The co-conspirators impersonated a contractor of an entity located in St. Paul, Minnesota, through a fraudulent email address and directed representatives of the entity to deposit the funds in an account controlled by members of the conspiracy.  Modile and others then laundered those stolen funds through bank accounts controlled by members of the conspiracy.

Finally, as set forth in the information filed in the Southern District of Texas, from November 2017 until May 2018, Modile knowingly devised a scheme to defraud victims.  Modile used his cellular phone to communicate with others about financial transactions for the purpose of executing his scheme to defraud. In particular, he directed an individual already convicted in Houston, Texas to withdraw cash from their bank account and provide to others.  Modile also directed the individual in Houston to lie to their financial institution regarding the reason for withdrawing money from their account.  In February 2018, Modile orchestrated and directed a substantial amount of money into an account of the individual in Houston.  The money derived from wire fraud and Modile was aware the money came from unlawful activity. 

This effort is part of an OCDETF operation.  OCDETF identifies, disrupts, and dismantles the highest-level 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 government’s case is being prosecuted by the Office’s Business and Securities Fraud Section.  Assistant United States Attorney David Pitluck is in charge of the prosecution, with assistance from Paralegal Specialist William Daniels, along with Assistant United States Attorney Rodolfo Ramirez of the Southern District of Texas.

The Defendant:

JOSEPH MODILE
Age:  45
Los Angeles, California

E.D.N.Y. Docket Nos. 21-CR-108 and 23-CR-50 (DG)

Source: United States Department of Justice News

Davenport, IA – A Davenport man was sentenced to 174 months of imprisonment, on Tuesday, February 21, 2023, for possessing a firearm as a felon and possessing a distribution amount of fentanyl.

According to court documents, on November 1, 2021, Linder Kai Divos, age 27, was in possession of a Taurus, nine-millimeter pistol, as well as 96 grams of methamphetamine and 564 fake Percocet pills, which contained fentanyl. Divos ran from the police. Prior to his arrest, law enforcement purchased pills containing fentanyl from Divos. After he is released from prison, Divos will serve five years of supervised release.

United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department investigated the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

Source: United States Department of Justice News

NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on Monday, February 27, 2023, TYRESE HARRIS, age 19, a resident of Orleans Parish, pled guilty to a five-count superseding indictment for conspiracy, carjacking, and weapons violations.  Count 1 charged HARRIS with conspiracy to commit carjackings beginning on  August 19, 2021 through February 1, 2022 in violation of Title 18, United States Code, Section 371 .  Count 2 of the indictment charged HARRIS with a carjacking that occurred on August 19, 2021, on  Washington Avenue in New Orleans.in violation of Title 18, United States Code, Section 2119(1).   Count 3 charged HARRIS with using a firearm in furtherance of the carjacking, a crime of violence, in violation of Title 18, United States Code, Sections 924(c)(1)(A)(ii) and 2  In Count 4 of the indictment, HARRIS was  charged with an attempted carjacking on Howard Avenue on January 18, 2022 in violation of Title 18, United States Code, Section 2119(1).   Finally, in Count 5, HARRIS was charged with a carjacking resulting in serious bodily injury that occurred on February 1, 2022 on S. Carrollton Avenue in New Orleans, in violation of Title 18, United States Code, Sections 2119(2) and 2.  HARRIS’ sentencing is set for May 30, 2023.

If convicted of Count 1 , HARRIS  faces a maximum sentence of 5 years, a fine of up to $250,000.00, and a period of up to 3 years of supervised release. If convicted of these Counts 2 and 4, HARRIS faces a maximum sentence of 15 years of imprisonment, a fine of up to $250,000.00,and a period of up to 3 years of supervised release. .    If convicted of Count 3, HARRIS faces a mandatory minimum sentence of 7 years up to a maximum of life imprisonment, to be run consecutive to any other sentence imposed, a fine of up to $250,000.00, and a period of up to 5 years of supervised release.   If convicted of Count 5, HARRIS faces a sentence of a maximum 25 years of imprisonment, a fine of up to $250,000.00, and a period of up to 3 years of supervised release. As to each count of the superseding indictment , HARRIS also faces payment of  a mandatory special assessment fee of $100.00.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the New Orleans Police Department.  It is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.

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Source: United States Department of Justice News

Defendant Threw Lit Object At Police

            WASHINGTON – A Texas man was sentenced today in the District of Columbia for assaulting law enforcement officers and other charges related to his actions on Jan. 6, 2021. His actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.

            David Lee Judd, 36, of Carrollton, Texas, was sentenced today to 32 months in prison for obstruction of an official proceeding and assaulting, resisting, or impeding officers, both felonies. Judd was found guilty on August 23, 2022, following a stipulated trial. In addition to the prison term, U.S. District Court Judge Trevor N. McFadden ordered 24 months of supervised release and a fine of $5691.  

            According to court documents, on Jan. 6, 2021, Judd was part of a group of people who illegally entered the Capitol grounds after earlier attending a rally at the Ellipse. They joined in the violence that occurred in the tunnel area of the Capitol’s Lower West Terrace. From approximately 2:40 p.m., law enforcement officers maintained a line at the second set of glass doors inside the tunnel leading from the inaugural platform to the entrance to the Capitol. These officers fought a group of rioters — including the defendant — inside the tunnel, protecting the doors, until approximately 3:19 p.m. when they cleared them from the tunnel. Clashes continued throughout the afternoon.

             Judd also joined the crowd at the West Front of the Capitol Grounds. By approximately 2:43 p.m., he was in the group on the Lower West Terrace. Less than 15 minutes later, Judd was at the mouth of the tunnel, waving other rioters into the tunnel. He participated in the heave-ho against the police line. Judd then stood directly outside the tunnel, receiving police riot shields from rioters inside the tunnel and passing them back to other rioters. Judd entered the tunnel at 3:07 p.m. and lit an object that appeared to be a firecracker. He threw it at the police line, where officers were fighting with other rioters to keep them out of the building. Later, after law enforcement officers cleared the tunnel, Judd joined in an attempt to push against a newly established police line.

            This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Offices for the Western District of Pennsylvania, the Eastern District of Texas, and the Eastern District of Virginia.

            The cases were investigated by the FBI’s Pittsburgh, Dallas, and Washington Field Offices, which identified Judd as #137, on its seeking information photos. Valuable assistance was provided by the FBI’s Richmond Field Office, the Metropolitan Police Department, and the U.S. Capitol Police.

            In the 25 months since Jan. 6, 2021, more than 985 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including approximately 319 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing. 

            Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.