Category: US Department of Justice

Source: United States Department of Justice Criminal Division

A California man was sentenced today to 24 years and four months in prison for his role in operating four websites dedicated to sharing images of child sexual abuse.

According to court documents, Louis Donald Mendonsa, 62, of Sacramento, assisted with managing and maintaining four different websites that operated on the dark web from at least December 2021 until his arrest November 2022. Each of these websites were dedicated to advertising, distributing, and exchanging images and videos depicting the sexual abuse of children. One of the websites allowed members to post images and videos of children as young as infants and toddlers. While using the internet at a local coffee shop, Mendonsa advertised and distributed child sexual abuse images over these websites and assisted others with running the websites. When searched by law enforcement, his electronic devices were found to contain images of child sexual abuse, approximately 6,500 of which depicted identified victims of his conduct.

Mendonsa pleaded guilty in April 2024 to seven counts of distribution of child pornography and one count of possession of child pornography.

Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, Acting U.S. Attorney Michele Beckwith for the Eastern District of California, and Special Agent in Charge Tatum King of Homeland Security Investigations (HSI) San Francisco made the announcement.

HSI San Francisco investigated the case, with valuable assistance provided by the Sacramento County Sheriff’s Office, the Sacramento Police Department, and the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).

CEOS Trial Attorney Kaylynn Foulon and Assistant U.S. Attorneys Emily Sauvageau and Christina McCall for the Eastern District of California prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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, visit www.justice.gov/psc.

Source: United States Department of Justice Criminal Division

A former Navy sailor has pleaded guilty in federal court in Chicago to plotting to attack Naval Station Great Lakes in North Chicago, Illinois, purportedly on behalf of Iran’s Islamic Revolutionary Guard Corps (IRGC).

Xuanyu Harry Pang, 38, of North Chicago, Illinois, pleaded guilty to conspiring to and attempting to willfully injure and destroy national defense material, national defense premises, and national defense utilities, with the intent to injure, interfere with, and obstruct the national defense of the United States. The guilty plea was entered on Nov. 5, 2024, in U.S. District Court for the Northern District of Illinois and ordered unsealed today.

According to court records filed in the case, in the summer of 2021, Pang communicated with an individual in Colombia about potentially assisting with a plan involving Iranian actors to conduct an attack against the United States to avenge the death of Qasem Soleimani, a general of the IRGC Quds Force who was killed by the U.S. military in 2020. The Quds Force is a branch of the IRGC that conducts unconventional warfare and intelligence activities outside of Iran.

A covert FBI employee, posing as an affiliate of the Quds Force, subsequently communicated online with the individual in Colombia about conducting an attack. The individual in Colombia put the covert FBI employee in touch with Pang, who at the time was stationed and residing at Naval Station Great Lakes. The pair communicated online through an encrypted messaging application about possible targets for the attack, including Naval Station Great Lakes and other locations in the Chicago area. Pang and the individual in Colombia agreed to help the covert FBI employee and his purported associates with their operation to conduct the attack in the United States, court records state.

On three occasions in the fall of 2022, Pang personally met with another individual working with the FBI who was posing as an associate of the covert FBI employee. The first meeting took place outside of the Ogilvie Transportation Center in downtown Chicago, and the two other meetings were held at a train station in Lake Bluff, Illinois. During the meetings in Lake Bluff, as the plot coalesced into an attack on the Naval Station, Pang displayed photos and videos on his phone of multiple locations inside the Naval Station. He also provided two U.S. military uniforms – for operatives to wear inside the base during the attack – and a cell phone that could be used as a test for a detonator.

Pang is currently detained without bond and is scheduled to be sentenced at a later date. 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.

Sue Bai, head of the Justice Department’s National Security Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, Assistant Director David J. Scott of the FBI’s Counterterrorism Division, and Special Agent in Charge Douglas S. DePodesta of the FBI Chicago Field Office made the announcement.

The FBI Chicago Joint Terrorism Task Force – which is comprised of multiple federal, state, and local law enforcement agencies – is investigating the case, with valuable assistance provided by the Naval Criminal Investigative Service.

Assistant U.S. Attorneys Aaron Bond, Vikas Didwania, and Brandon Stone for the Northern District of Illinois and Trial Attorneys John Cella and Charles Kovats of the National Security Division’s Counterterrorism Section are prosecuting the case.

Source: United States Department of Justice Criminal Division

A Florida man pleaded guilty today to orchestrating a nearly decade-long scheme to promote an illegal tax shelter and commit wire fraud. He also pleaded guilty to assisting in the preparation of false tax returns for tax shelter clients.

According to court documents and statements made in court, Stephen T. Mellinger III, of Delray Beach, was a financial advisor, insurance salesman, and securities broker operating in Florida, Michigan, Mississippi, and elsewhere. Beginning in late 2013, Mellinger conspired with others to promote an illegal tax shelter whereby clients would claim false tax deductions for so-called “royalty payments” to fraudulently reduce their taxes.

In reality, as Mellinger knew, the “royalty payments” were merely a circular flow of money designed to give the appearance of genuine business expenses. Typically, a client would send money to bank accounts controlled by Mellinger and other co-conspirators, who then sent the money — less a fee — right back to a different bank account that the client controlled. In this way, tax shelter participants retained control of the money they transferred, while falsely deducting the transfers as business expenses on their tax returns.

In total, Mellinger and his co-conspirators helped clients prepare tax returns that claimed over $106 million in false tax deductions, which caused a tax loss to the IRS of approximately $37 million.

Mellinger and a co-conspirator who was a relative, collectively earned approximately $3 million in fees from promoting the scheme.

In January 2016, Mellinger learned that several of his clients were being investigated and that the United States had started seizing their funds. Mellinger and a relative subsequently stole more than $2.1 million of funds from some of those clients, some of which he used to buy a home in Delray Beach.

Mellinger is scheduled to be sentenced on Sept. 16, and faces a maximum penalty of five years in prison for conspiring to defraud the IRS and commit wire fraud, and three years in prison for aiding in the preparation of false tax returns. 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 Karen E. Kelly of the Justice Department’s Tax Division, Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division, and Acting U.S. Attorney Patrick A. Lemon for the Southern District of Mississippi made the announcement.

IRS Criminal Investigation and the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service are investigating the case.

Trial Attorneys Richard J. Hagerman, William Montague, and Matthew Hicks of the Tax Division, Assistant U.S. Attorney Charles W. Kirkham for the Southern District of Mississippi, and Trial Attorneys Emily Cohen and Jasmin Salehi Fashami of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) are prosecuting the case.

Source: United States Department of Justice Criminal Division

This week, Attorney General Pam Bondi directed the Department of Justice’s Civil Rights Division to dismiss lawsuits against various jurisdictions across the country involving the hiring of police officers and firefighters. These lawsuits, launched by the previous administration, unjustly targeted fire and police departments for using standard aptitude tests to screen firefighter and police officer candidates.

“American communities deserve firefighters and police officers to be chosen for their skill and dedication to public safety – not to meet DEI quotas,” said Attorney General Bondi.

Despite no evidence of intentional discrimination — only statistical disparities — the prior administration branded the aptitude tests at issue in these cases as discriminatory in an effort to advance a DEI agenda. And it sought to coerce cities into conducting DEI-based hiring in response and spending millions of dollars in taxpayer funds for payouts to previous applicants who had scored lower on the tests, regardless of qualifications.

President Trump and Attorney General Bondi are dedicated to ending illegal discrimination and restoring merit-based opportunity nationwide, and in all sectors. But doing so is particularly important for front-line public-safety workers who protect our nation, including firefighters and police officers. Prioritizing DEI over merit when selecting firefighters and police officers jeopardizes public safety.

Today’s dismissal is an early step toward eradicating illegal DEI preferences across the government and in the private sector. 

Source: United States Department of Justice

A Delaware corporation with a manufacturing facility in Ohio pleaded guilty today in federal court in the Southern District of Ohio to a charge of willfully violating an Occupational Safety and Health Administration (OSHA) rule. The criminal charge is related to an incident where an employee was killed when a pneumatic door closed on his head.

Fabcon Precast LLC (Fabcon) operates several facilities in the United States, including one in Grove City, Ohio, that manufactures precast concrete panels. At Fabcon, employees known as batch operators were responsible for the operation and cleaning of the facility’s only concrete mixer. Concrete was discharged from the bottom of the mixer through a pneumatic door. By design, the mixer had an exhaust valve that released the pneumatic energy powering the discharge door, rendering it inoperable. Some months prior to June 6, 2020, the handle that operated the valve broke off and was not replaced.

On June 6, 2020, Zachary Ledbetter, 20, a batch operator since January 2020, was on duty when the discharge door failed to close after releasing a batch of concrete. Because the valve was broken, Ledbetter could not perform the proper procedure to make the door safe to work around. When he attempted to free the door it closed on his head, trapping him. Eventually, Ledbetter was freed and transported to a hospital where he died five days later.

Federal law makes it a class B misdemeanor to willfully fail to follow an OSHA safety standard, where the failure causes the death of an employee. The class B misdemeanor is the only federal criminal charge covering such workplace safety violations.

Principal Deputy Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division, Acting U.S. Attorney Kelly A. Norris for the Southern District of Ohio, and Acting Special Agent-in-Charge Megan Howell of the Department of Labor’s Office of Inspector General, Great Lakes Region, made the announcement.

The Department of Labor’s Office of Inspector General investigated the case.

Senior Trial Attorney and Special Assistant U.S. Attorney Adam Cullman, of the Environment and Natural Resources Division’s Environmental Crimes Section and for the Southern District of Ohio respectively, prosecuted the case.