Month: August 2024

Source: United States Department of Justice Criminal Division

A Jamaican national was extradited to the United States and made his initial appearance today in Sioux Falls, South Dakota, following his role in a long-running scheme to defraud a California woman.

Dwayne Anderson, 35, of Hannover, Jamaica, will face federal wire fraud charges. He was arrested, pursuant to the U.S. request for extradition, on July 11, by Jamaican authorities.  He has remained in custody in Jamaica since that time.  

According to the indictment, from as early as 2010 until September 2017, Anderson participated in a scheme to defraud an American woman. Using phony names, he contacted the victim by telephone, text message, and email and falsely informed her that she had won millions of dollars in a sweepstakes. Anderson persuaded the victim, who believed the defendant’s false representations, to send money to pay various fees and taxes associated with the sweepstakes. He instructed the victim on how, and to whom, to send these payments. Anderson repeatedly contacted the victim with additional requests to pay money and told the victim that her winnings would be forthcoming if she paid the requested money.

Anderson induced the victim to travel to Jamaica in September 2017 by falsely informing her that she would be able to collect her prize winnings. He told the victim to bring $1,600 in cash with her to Jamaica and instructed the victim to give the money to a driver that met her at the airport. The victim paid the purported fees but never received any of her purported winnings.

“The Justice Department’s Consumer Protection Branch is committed to bringing transnational criminals who defraud Americans to justice, wherever they are located,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Ensuring that those who perpetrate these types of fraud schemes are held accountable is a priority of the department, and I thank the government of Jamaica for its assistance extraditing the defendant to face charges here in the United States.”

“Making a living by exploiting the trust of Americans and draining their hard-earned savings is despicable,” said U.S. Attorney Alison Ramsdell for the District of South Dakota. “The District of South Dakota, working alongside our law enforcement partners, will pursue and prosecute anyone who engages in criminal acts that harm Americans.

“Collaboration between international law enforcement partners is critical to protecting the international rule of law and the U.S. Mailstream,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group. “The U.S. Postal Inspection Service is committed to protecting Americans from transnational crime and is grateful to our partners in Jamaica for assistance in bringing Anderson to Justice.”

Anderson is charged with eight counts of wire fraud filed in the U.S. District Court for the District of South Dakota in February 2023 and was unsealed upon the defendant’s extradition to the United States on Aug. 22. If convicted, Anderson faces a maximum penalty of 20 years in prison for each count.

USPIS investigated the case. The Jamaica Constabulary Force provided critical assistance. The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and extradition of Anderson.

Trial Attorneys Brandon Robers and Edward Emokpae of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Ann Hoffman for the District of South Dakota prosecuted the case.

The Justice Department continues to investigate and bring charges in other similar matters involving attempts to defraud residents of the United States. If you or someone you know is age 60 or older and has experienced financial fraud, experienced professionals are standing by at the National Elder Fraud Hotline 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, can provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.

More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage www.justice.gov/elderjustice. For more information about the Consumer Protection Branch and its enforcement efforts visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints can be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, at www.ovc.gov.

For more information about the Consumer Protection Branch and its fraud enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. 

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice

An Army soldier stationed at Joint Base Elmendorf-Richardson in Anchorage, Alaska, was arrested last week on criminal charges related to his alleged transportation, receipt and possession of files depicting child sexual abuse, and use of AI to generate sexually explicit images of children.

“The misuse of cutting-edge generative AI is accelerating the proliferation of dangerous content, including child sexual abuse material — so the Department of Justice is accelerating its enforcement efforts,” said Deputy Attorney General Lisa Monaco. “As alleged, the defendant used AI tools to morph images of real kids into horrific child sexual abuse material. Criminals considering the use of AI to perpetuate their crimes should stop and think twice — because the Department of Justice is prosecuting AI-enabled criminal conduct to the fullest extent of the law and will seek increased sentences wherever warranted.”

“As alleged, Seth Herrera possessed thousands of images depicting the violent sexual abuse of children, including infants.  He also allegedly used AI to create images depicting the sexual exploitation of children he knew,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “Today’s announcement should serve as yet another warning that the Criminal Division will aggressively pursue those who possess or produce child sexual abuse material, including where the images were generated through AI.”

According to court documents, Seth Herrera, 34, allegedly transported, received and possessed files depicting child sexual abuse. Herrera also allegedly used online AI chatbots to generate realistic child sexual abuse materials (CSAM) depicting minors known to him.

“Technology may change, but our commitment to protecting children will not,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “We will aggressively pursue those who produce and traffic in child sexual abuse material (CSAM), no matter how that material was created. Put simply, CSAM generated by AI is still CSAM, and those who sexually exploit children, through whatever technological means, will be held accountable by our office in conjunction with our law enforcement partners, for justice and the safety of our children.”

“This investigation and indictment are a testament to the dedication of the men and women of Homeland Security Investigations to find and bring to justice those who exploit our nation’s children,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “Absolutely no child should suffer these travesties, and no person should feel immune from detection and prosecution for these crimes by HSI and its partners in law enforcement.”

“The charges against Herrera, a U.S. military soldier, for trafficking and generating child sexual abuse materials using artificial intelligence represent a profound violation of trust as well as preview of the challenges law enforcement continues to face in this evolving threat to our children” said Special Agent in Charge Robert Hammer of HSI Pacific Northwest Division. “This appalling misconduct undermines Herrera’s commitment to defending both our nation and its most vulnerable members.”

Herrera is charged with one count of transportation of child pornography, one count of receipt of child pornography, and one count of possession of child pornography. He will make his initial court appearance on Aug. 27 before U.S. Magistrate Judge Kyle F. Reardon of the U.S. District Court for the District of Alaska. If convicted, he faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

HSI and Department of Defense Criminal Investigation Division are investigating the case.

Trial Attorney Rachel L. Rothberg of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Mac Caille Petursson for the District of Alaska are prosecuting the case.

If anyone has information concerning Herrera’s alleged actions or may have encountered someone in person or online using the name Seth Herrera, please contact the HSI tip line at 1-877-447-4847.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice Criminal Division

The Justice Department announced today that it secured a settlement agreement with BreakthroughFuel LLC (Breakthrough), a transportation management company based in Green Bay, Wisconsin, with nationwide operations. The agreement resolves the department’s determination that Breakthrough violated the Immigration and Nationality Act (INA) by discriminating against a non-U.S. citizen worker when the company withdrew its offer to work on a project based on his citizenship status.

“Employers cannot unlawfully exclude people with permission to work in the United States because of their citizenship status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department is committed to ensuring that employers do not unlawfully deny workers equal treatment in the workplace.”

After opening an investigation based on a worker’s complaint, the Civil Rights Division’s Immigrant and Employee Rights Section (IER) concluded that Breakthrough, which used a third-party staffing agency to fill a role on Breakthrough’s project, asked the agency to withdraw a job offer to a worker when Breakthrough learned he was not a U.S. citizen. IER also concluded that Breakthrough did not have any legal justification for withdrawing the offer.  

Under the terms of the settlement, Breakthrough will pay a civil penalty to the United States, train its employees on the INA’s anti-discrimination requirements, revise its employment policies and processes and be subject to monitoring by the department. During the course of IER’s investigation, Breakthrough and the staffing agency provided the worker with monetary compensation to address his claim of lost wages.

IER is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee, unfair documentary practices and retaliation and intimidation. 

Find more information on how employers can avoid discrimination in recruiting and hiring on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify) or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email IER@usdoj.gov; or visit IER’s English and Spanish websites. Sign up for email updates from IER.

Source: United States Department of Justice Criminal Division

A federal grand jury in Denver returned an indictment unsealed on Friday charging a Colorado dentist with six counts of tax evasion for his use of an illegal tax shelter.

According to the indictment, since 2014, Ryan Ulibarri, owned and operated Ulibarri Family Dentistry in Fort Collins. In 2016, Ulibarri allegedly purchased a tax shelter for $50,000. From 2017 through 2022, Ulibarri allegedly used this tax shelter to conceal from the IRS over $3.5 million in income he earned.

To effectuate the tax shelter, Ulibarri allegedly signed trust instruments purporting to create three trusts and a private foundation and opened bank accounts in the name of each entity. He also allegedly re-structured his dental practice so that the majority of it was purportedly owned by one of the trusts. Ulibarri allegedly transferred nearly all the funds he earned from his dental practice to the bank accounts for the trusts and foundations he created. He allegedly used those funds to pay personal expenses, such as the mortgage on his home and his credit card bills. Finally, he allegedly filed false tax returns for himself and the trusts that assigned the income he earned and controlled from his practice to the trusts.     

In total, Ulibarri is alleged to have caused a tax loss to the IRS of over $1 million.

If convicted, Ulibarri faces a maximum penalty of five years in prison for each count of tax evasion. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Amanda R. Scott and Lauren K. Pope and Senior Litigation Counsel Corey J. Smith of the Tax Division are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Source: United States Department of Justice

The Office of the Pardon Attorney (Pardon) released a Spanish-language version of its application for commutation of sentence. The Spanish-language application can be used to request that the President commute the sentence of an individual who is incarcerated. This application follows the launches of the improved pardon application in June 2024, and the English-language commutation application in November 2023.

In 2023 and 2024, Pardon revised all its clemency forms to make them more accessible and user-friendly. The revisions have been part of a department-wide effort to expand access to justice by simplifying public-facing forms and documents, consistent with the recommendations described in the 2022 and 2023 Legal Aid Interagency Roundtable Reports.

“Through collaboration with the Office for Access to Justice, regular community outreach and education, and the hard work of our team, we have been able to overhaul our entire platform of clemency applications,” said Pardon Attorney Elizabeth Oyer. “The Spanish-language application will allow a large number of people within the Federal Bureau of Prisons to better access the clemency process going forward. It is a key step in our efforts to make clemency more transparent and to meet our obligation to increase language access for our applicants.”

Pardon is also working with the Federal Bureau of Prisons (FBOP) to make the Spanish-language commutation form available to Spanish speakers within FBOP facilities. 

To learn more about the work and outreach of the Office of the Pardon Attorney, visit Office of the Pardon Attorney | Office of the Pardon Attorney (justice.gov).