District of Colorado
Press releases recorded for this federal judicial district.
U.S. Attorney Dunn Announces $58k Grant to Mesa County to Fight COVID-19Read the Press Release
DENVER – U.S. Attorney Jason Dunn announced a $58,620 grant to Mesa County from the Department of Justice to help communities fighting COVID-19.
The grant is the latest to be awarded as part of a $14 million allocation for local jurisdictions across the state of Colorado. The City of Grand Junction Police Department was also awarded $91,671 last month to help it purchase personal protective equipment (PPE) and sanitize its vehicles.
“Our law enforcement officers are used to being on the front lines of a crisis, but the coronavirus is like nothing they – or any of us – have faced before,” Dunn said. “The DOJ wants to make sure that as officers are out there protecting and interacting with members of the community that they have the extra resources necessary to encounter these extraordinary circumstances.”
The grants are part of the Coronavirus Emergency Supplemental Funding (CESF) Program, authorized by the recent stimulus legislation signed by President Trump. The funds are designated for a wide range of purposes such as overtime, PPE, hiring, meeting the medical needs of inmates, and travel expenses for the distribution of resources in COVID-19 impacted areas.
Other jurisdictions can find out if they are eligible and apply immediately by visiting this website. The Justice Department is awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications.
Coalition of U.S. Attorneys Announce $15.3 Million Settlement with Omnicare, Inc., a CVS Health Company, for Improper Dispensing of Controlled SubstancesRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Omnicare, Inc., a subsidiary of CVS Health and a provider of pharmacy services to long-term care facilities, has agreed to pay the United States a $15.3 million civil penalty to resolve allegations that it violated federal law by, among other things, allowing opioids and other controlled substances to be dispensed without a valid prescription.
Omnicare operates “closed door” pharmacies – meaning they are not open to the public – that deliver controlled substances to nursing homes and other long-term care facilities (LTCFs). Omnicare makes daily deliveries of prescription medications to residents of LTCFs, and it also pre-positions limited stockpiles of controlled substances at LTCFs in “emergency kits,” which are to be dispensed to patients on an emergency basis. These emergency kits, which often include opioids and other controlled substances that are commonly abused and diverted, remain part of Omnicare’s inventory and must be tightly controlled and tracked. The controlled substances may be dispensed only pursuant to a valid prescription.
The United States alleged that Omnicare violated the federal Controlled Substances Act in its handling of emergency prescriptions, its controls over the emergency kits, and its processing of written prescriptions that lacked required elements such as the prescriber’s signature or DEA number. The federal investigation found that Omnicare failed to control emergency kits by improperly permitting LTCFs to remove opioids and other controlled substances from emergency kits days before doctors provided a valid prescription. The investigation also revealed that Omnicare had repeated failures in its documentation and reporting of oral emergency prescriptions of Schedule II controlled substances.
As part of the settlement agreement announced today, Omnicare agreed to pay the $15.3 million civil penalty and entered into a Memorandum of Agreement with the Drug Enforcement Administration that will require Omnicare to increase its auditing and monitoring of emergency kits placed at LTCFs.
“The abuse of opioids and other controlled substances has taken a heavy toll in Colorado and our country,” said United States Attorney Jason Dunn. “It is critical that every company involved in the dispensing of these drugs strictly follows the controls required by law. And when they don’t, we will work to ensure that an appropriate penalty is imposed.”
“Omnicare failed in its responsibility to ensure proper controls of medications used to treat some of the most vulnerable among us,” said DEA Acting Administrator Uttam Dhillon. “DEA is committed to keeping our communities safe by holding companies like Omnicare accountable for such failures, while ensuring continuity of care and necessary access to emergency prescription drug supplies.”
This matter was investigated by the DEA’s Field Divisions in Denver, Los Angeles, San Francisco and Seattle, in conjunction with five United States Attorney’s Offices: the Central District of California, the Eastern District of California, the District of Colorado, the District of Oregon, and the District of Utah. The settlement agreement, which was finalized on May 6, resolves Omnicare’s civil liability for the alleged CSA violations in those five districts.
The Omnicare pharmacies in the District of Colorado are Omnicare of Pueblo, Omnicare of Grand Junction, and Omnicare of Golden.
The claims settled by this civil agreement are allegations. In entering into this settlement, Omnicare did not admit to any liability.
The United States Attorney’s Office for the District of Colorado was represented in this matter by Deputy Civil Chief Amanda Rocque and Assistant United States Attorney Andrea Wang.
Montrose Woman Arrested for Witness Intimidation After Sharing Court Ordered Protected InformationRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Angelina Maestas, age 33, of Montrose, Colorado, who was free on bond after earlier being charged with drug possession and distribution, has now been charged with witness, victim or informant tampering. The Denver Division of the Drug Enforcement Administration joined in today’s announcement.
According to an affidavit in support of the criminal complaint, Maestas was wrongly in possession of discovery documents protected by court order, including Grand Jury and investigative materials from a case where she was charged with possession and distribution of methamphetamine and heroin. The material she possessed included the identity of at least one co-conspirator who she alleged was a person who cooperated with police. She shared the protected material with friends on her Facebook page in violation of a court order, potentially putting the targeted individual in danger.
“When courts seal grand jury and investigatory documents they do so for good reason, including the protection of law enforcement personnel and witnesses,” said U.S. Attorney Jason Dunn. “Those who violate such orders risk lives and the ability of our courts to operate properly, and will prosecuted to the full extent of the law.”
There is a separate investigation underway to determine how the defendant received the court ordered protected material. Maestas was arrested on May 5th for this criminal charge. On May 6, 2020, she made her initial appearance where she was advised of her rights and the charges pending against her. On May 11, 2020, she was ordered held without bond following a detention hearing.
Maestas was one of the thirteen defendants who conspired with each other and others known and unknown to the grand jury to distribute and possess with intent to distribute 50 grams or more of actual methamphetamine, 500 grams or more of a mixture of a substance containing a detectable amount of methamphetamine, and less than 100 grams of heroin.
She faces not less than 10 years and up to life in federal prison for the original case. She faces not more than 20 years for witness, victim or informant tampering.
Discovery is a pre-trial procedure in which each party obtains evidence from the other party.
The charges contained in the criminal complaint are allegations, and the defendant is presumed innocent unless and until proven guilty.
A criminal complaint is a probable cause charging document. Any one charged by complaint has a Constitutional right to be indicted by a federal grand jury.
U.s. Attorney Jason R. Dunn Honors Law Enforcement at Start of Police WeekRead the Press Release
DENVER – In honor of National Police Week, Colorado U.S. Attorney Jason Dunn is recognizing the service and sacrifice of federal, state, local, and tribal law enforcement. The week will be observed Sunday, May 10 through Saturday, May 16, 2020.
“This week, we honor and celebrate the brave men and women in uniform who keep our communities safe, and we remember those lost in the line of duty,” said U.S Attorney Jason Dunn. “With a heavy heart, Colorado will add three names to the National Law Enforcement Officers Memorial wall – Joshua Eli Voth a Sergeant for the Colorado Department of Corrections, William James Moden a Master Trooper for the Colorado State Patrol, and Daniel H. Groves a Corporal for the Colorado State Patrol. We will never forget their unwavering commitment to put the safety and security of their communities above their own. And we recognize that behind these brave officers – and every police officer – is a family who not only supports them but sacrifices with them. To the families, we thank you for sharing with us your husbands, your wives, your fathers and your mothers.”
“There is no more noble profession than serving as a police officer,” said Attorney General William P. Barr. “The men and women who protect our communities each day have not just devoted their lives to public service, they’ve taken an oath to give their lives in order to ensure our safety. And they do so not only in the face of hostility from those who reject our nation’s commitment to the rule of law, butalso in the face of evolving adversity – such as an unprecedented global health pandemic. This week, I ask all Americans to join me in saying ‘thank you’ to our nation’s federal, state, local, and tribal law enforcement officers. Their devotion and sacrifice to our peace and security will not be taken for granted.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
Each year, during National Police Week, our nation celebrates the contributions of law enforcement from around the country, recognizing their hard work, dedication, loyalty and commitment to keeping our communities safe. This year the COVID-19 pandemic has underscored law enforcement officers’ courage and unwavering devotion to the communities they swore to serve.
Based on data collected and analyzed by the FBI’s Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 89 law enforcement officers died nationwide in the line of duty in 2019, including three officers here in Colorado.
Comprehensive data tables about these incidents and brief narratives describing most of the fatal attacks are included in the sections of Law Enforcement Officers Killed and Assaulted, 2019.
The names of the fallen officers who have been added in 2020 to the wall at the National Law Enforcement Memorial will be read on Wednesday, May 13, 2020, during a Virtual Annual Candlelight Vigil. Because public events have been suspended as a result of COVID-19, the vigil will be livestreamed to the public at 8:00 pm (EDT). The online event can be viewed at https://www.youtube.com/user/TheNLEOMF.
Tax Convict Sentenced to Additional Prison Time for Fleeing Country Before Prison TermRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Wilma Hau, age 45, formerly of Littleton, Colorado, was sentenced yesterday by U.S. District Court Judge R. Brooke Jackson to serve 18 months in federal prison for fleeing the U.S. to evade the jail sentence imposed on February 24, 2014 in a previous tax fraud case. This sentence will be served consecutively to the tax fraud sentence. The Internal Revenue Service -- Criminal Investigation joined in the announcement.
According to information from the prior tax fraud case, Hau and her spouse, Remigio Rafael Hau Chi, were sentenced by U.S. District Court Judge Marcia S. Krieger for conspiracy to make false and fraudulent claims to the government. The investigation determined Hau conspired in a scheme where stolen identities were used to file 138 false federal income tax returns which generated the issuance of $430,753 in fraudulent tax refunds. A significant portion of these refunds were used for Hau’s personal benefit, including the purchase of a Littleton residence and paying off the mortgage attached to that property.
After sentencing, Judge Krieger allowed Hau to remain free on bond and surrender to the Federal Correctional Institution in Waseca, Minnesota on March 27, 2014, as instructed by the Federal Bureau of Prisons. Prior to March 27, 2014, Hau left from her residence, failed to notify the United States Attorney of a change in residence and failed to surrender to serve her sentence, becoming a fugitive. Hau was arrested at the pedestrian entrance at the Paso del Norte Port of Entry in El Paso Texas on July 31, 2019.
“Ms. Hau was duly convicted and sentenced to a federal prison term for her tax crimes. Rather than accepting the consequences of her actions and reporting to prison, she again tried to evade the law by fleeing to Mexico,” said U.S. Attorney Jason Dunn. “Hopefully the additional time in prison will be enough for her to fully contemplate and accept the error of her ways.”
“Individuals, such as Hau, who think they can leave without facing repercussions for the damage inflicted on innocent taxpayers are mistaken,” said Special Agent in Charge Andy Tsui. “IRS-Criminal Investigation Special Agents will continue to pursue those who defrauded the federal tax system to ensure they receive the justice they deserve.”
This case was investigated by Internal Revenue Service – Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Patricia Davies.
Northern Colorado Man Arrested for Possessing Pipe BombsRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn announced that Bradley Bunn, age 53, from Northern Colorado, was arrested this weekend after being charged by criminal complaint with possession of illegal destructive devices, namely pipe bombs, which were found after a search warrant was executed at Bunn’s residence. Bunn is scheduled to have his initial appearance via video conference tomorrow before a U.S. Magistrate Judge, where he will be advised of his rights and the charges pending against him. The FBI and the ATF joined in this announcement.
According to the facts contained in the affidavit in support of the criminal complaint, on May 1, 2020, FBI special agents, along with other law enforcement officers and agents, executed two search warrants in Northern Colorado. Both search warrants were for the residence of Bradley Bunn.
During the search of Bunn’s residence, FBI agents discovered four pipe bombs. Separately, the technicians found two one-pound containers of .308 caliber cartridge reloading gunpowder in Bunn’s vehicle, which is a potential pipe bomb component. Bomb technicians transported the destructive devices to a range where they were successfully rendered safe.
Bunn has been charged with the possession of destructive devices. If convicted he faces not more than 10 years in federal prison, and up to a $250,000 fine. A criminal complaint is a probable cause charging document. Anyone accused of committing a federal crime has a Constitutional right to be indicted by a grand jury.
This matter was investigated by the FBI and ATF, with support from local law enforcement.
The charges contained in this indictment are allegations, and the defendant is presumed innocent unless or until proven guilty in a court of law.
U.S. Attorney's Office Announces New HiresRead the Press Release
DENVER – U.S. Attorney Jason Dunn announced the following individuals have joined the office as Assistant U.S. Attorneys:
- Candyce Choi Cline came to the office after serving as an Associate Municipal Judge for the Westminster Municipal Court in Colorado. Prior to that she was a Deputy District Attorney for Adams and Broomfield Counties. Candyce earned her law degree from the University of Colorado Law School. She has been assigned to the office’s Criminal Division.
- Beth Ford Milani came to the office after serving as Assistant Attorney General in the Colorado Attorney General’s Office. Prior to that she clerked for the Hon. Steven Bernard and the Hon. John Webb of the Colorado Court of Appeals. Beth earned her law degree from the University of Oregon School of Law. She has been assigned to the office’s Appellate Division.
- Elizabeth Hagerty came to the office after serving as a Senior Associate for Hogan Lovells in Washington D.C. Prior to that she clerked for the Hon. Alan Kay of the U.S. District Court for the District of Hawaii. Elizabeth earned her law degree from George Washington University Law School. She has been assigned to the office’s Civil Division.
- Daniel McIntyre came to the office after serving as Special Assistant United States Attorney for the U.S. Department of Homeland Security Immigration and Customs Enforcement. Prior to that he was a trial attorney for the U.S. Department of Labor, Office of the Solicitor. Daniel earned his law degree from Washington University School of Law. He has been assigned to the office’s Criminal Division.
- Thomas Minser came to the office after serving as an Assistant State’s Attorney for the Domestic Violence and Sex Crimes Unit in the DuPage County State’s Attorney’s Office in Wheaton, Ill. He earned his law degree from Northern Illinois University College of Law. Thomas has been assigned to the office’s Criminal Division.
- Jena Neuscheler came to the office after serving as an Associate for Williams & Connolly in Washington D.C. Prior to that she clerked for the Hon. Ketanji Brown Jackson of the U.S. District Court for the District of Columbia. Jena earned her law degree from Stanford Law School. She has been assigned to the office’s Criminal Division.
- Wayne Paugh came to the office after serving as Assistant Chief Counsel for the U.S. Department of Homeland Security. He earned his law degree from George Mason University School of Law and his LL.M. in Intellectual Property Law from George Washington University School of Law. Wayne has been assigned to the office’s Criminal Division.
“We are thrilled to welcome this great group of attorneys, and I commend all of them for starting a new job under such extraordinary circumstances,” Dunn said. “I know they will serve the Department of Justice and the people of Colorado well.”
There are approximately 180 people in the Colorado U.S. Attorney’s office, with 81 of them being Assistant U.S. Attorneys.
- Candyce Choi Cline came to the office after serving as an Associate Municipal Judge for the Westminster Municipal Court in Colorado. Prior to that she was a Deputy District Attorney for Adams and Broomfield Counties. Candyce earned her law degree from the University of Colorado Law School. She has been assigned to the office’s Criminal Division.
Statement by U.S. Attorney Jason R. Dunn on Law DayRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn issued the following statement on Law Day, celebrated on May 1st of each year:
“Today we celebrate Law Day, a day first recognized by President Dwight D. Eisenhower in 1958 and made official by Congress in 1961 to celebrate the rule of law in our society and the protections it provides to liberty and right of equality for all.
“Law Day is particularly significant this year because it is the 100th anniversary of the 19th Amendment, which prohibits any law denying the right to vote because of gender, and in so doing further enshrines the idea that the rule of law applies to - and protects - everyone equally. I am proud of the work that is done every day by our office to protect the rule of law and to stop discrimination, whether it be by enforcing the 19th Amendment or any other federal nondiscrimination provision.
“As we celebrate Law Day, the women and men of the United States Attorney’s Office for the District of Colorado renew their commitment to the rule of law and celebrate its central role in ensuring our freedoms and the integrity of the justice system itself.”
Colorado U.S. Attorney's Office Joins Department of Justice to Target COVID-19 Related Housing Predatory PracticesRead the Press Release
DENVER – United States Attorney Jason R. Dunn has announced that the District of Colorado, in conjunction with the Department of Justice, will take legal action against anyone trying to capitalize on the current COVID-19 crisis by sexually harassing those in need of housing or struggling financially to stay in rental housing. U.S. Attorneys’ Offices will work with all Department of Justice offices, federal agencies, as well as state, local, and tribal officials to combat housing related sexual harassment. The Justice Department and U.S. Attorneys stand ready to take aggressive action against housing-related sexual harassment whenever and wherever it occurs.
“The Colorado U.S. Attorney’s Office is committed to assisting victims of harassment and will work with law enforcement to ensure reports of landlord predatory practices related to COVID-19 will be aggressively investigated,” said U.S. Attorney Jason Dunn. “Those who target tenants, especially during this national crisis, will not be tolerated and violators are prosecuted.”
"The pandemic is dangerous enough without wrongdoers seeking to profit from public panic and this sort of conduct cannot be tolerated." said Attorney General Barr. To address predatory practices by unscrupulous landlords, Attorney General Barr directed the Department’s Civil Rights Division and U.S. Attorney’s to coordinate efforts to devote all necessary resources to investigate reports of housing-related sexual harassment resulting from the current crisis.
As the country adopted drastic measures to slow the spread of COVID-19, Americans have lost jobs with many more having their wages curtailed. These losses have forced many to seek abatements or suspensions of their rent. Many landlords responded to these circumstances with understanding by working with tenants during the crisis. Other landlords, however, have demanded sexual favors and other acts of unwelcomed sexual conduct in exchange for deferral of rent payments. This behavior is horrific and illegal.
Anyone who is a victim of sexual harassment by a property owner, or someone who has control over housing resulting from the COVID-19 crisis, should contact:
- Sexual Harassment in Housing Initiative at 1-844-380-6178 or email [email protected]
For more information: www.justice.gov/crt/sexual-harassment-housing-initiative
U.S. Attorney Dunn Announces $9 Million Grant to Help State of Colorado Fight COVID-19Read the Press Release
DENVER – U.S. Attorney Jason Dunn announced the state of Colorado will receive $9 million to support its response to the public safety challenges posed by the outbreak of COVID-19.
“This grant will help ensure the safety of our law enforcement community as they continue to protect us during this unprecedented time,” Dunn said. “It is part of the $14 million the Department of Justice allocated for public safety agencies in the state of Colorado that we announced a few short weeks ago, and we are seeing the quick distribution of those funds. In addition to the $9 million given to the state, local jurisdictions are being awarded grants as well – with Larimer County and the cities of Fountain and Grand Junction also receiving grants in the last week.”
The grants to local jurisdictions were for the following amounts:
- Larimer County – $51,342
- City of Fountain – $34,327
- City of Grand Junction – $91,671
There is a wide range of application for the funds including overtime, hiring, and supplies – such as personal protective equipment and sanitizer. Grand Junction, for example, is using its funds to bring in a hazard mitigation team to sanitize police equipment, such as vehicles, on a weekly basis. The City is also purchasing PPE, masks, wipes and hand sanitizer.
Dunn is encouraging other communities in Colorado find out if they are eligible and apply for the remaining grant money. Other jurisdictions can find out if they are eligible and apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications. These grants are available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump, of which $14 million was allocated for local jurisdictions in Colorado.
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U.S. Attorney Jason Dunn's Statement Commemorating National Crime Victims' Rights WeekRead the Press Release
"As part of National Crime Victims' Rights Week, the Colorado U.S. Attorney’s Office pauses to acknowledge and remember those who have been victims of crime in our state. We are continuously inspired by their brave stories of survival and recovery. My office and I have made victims - and victim rights - a priority in every case we prosecute. Doing so is central to not only ensuring that those directly impacted by crime have the support and resources they need to be heard and to heal, but to ensuring that justice is always being served. That is what this week is all about -- showing victims they are not alone, raising awareness of their rights and services available, and remembering the progress that has been achieved."
Click here for the full release from the Department of Justice.
Federal Court Rules in Favor of DEA and Orders Production of Information from Colorado Prescription Drug Monitoring ProgramRead the Press Release
DENVER - The United States Attorney’s Office for the District of Colorado announced today that a federal court has ordered the state of Colorado to turn over information from its Prescription Drug Monitoring Program (PDMP) to the Drug Enforcement Administration. The information will aid in the ongoing investigations of two Colorado pharmacies that dispense opioids and other controlled substances.
“We look forward to getting this important information as soon as possible, so these ongoing investigations can move forward,” said U.S. Attorney Jason Dunn. “While much of the public’s focus is rightfully on the coronavirus pandemic, the opioid crisis remains a scourge on our communities, and we are committed to fighting it and enforcing the law.”
The DEA had issued subpoenas to the PDMP in its ongoing investigations of two Colorado pharmacies that dispense opioids and other controlled substances. Under Colorado law, pharmacies in Colorado are required to make a daily report to the PDMP of all controlled substances dispensed. When the DEA was informed by the state that it would not provide all the data the DEA had sought, the United States Attorney’s Office filed an action in federal court requiring the state to comply with the subpoenas. The order from the court directs the state respondents - the Colorado Board of Pharmacy and Patty Salazar, Executive Director of the Colorado Department of Regulatory Agencies - to provide the data no later than May 15.
“The DEA is committed to ensuring the safety of our fellow Coloradans through investigations and regulatory oversight of those entrusted with supplying prescription drugs in our community,” said Special Agent in Charge Deanne Reuter of the Drug Enforcement Administration. “This court order will enable us to continue to this important work moving forward.”
This case is being handled by Assistant U.S. Attorneys Kevin Traskos and David Moskowitz in the U.S. Attorney’s Office for the District of Colorado.
Case No. 19-mc-00105-RM
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U.s. Attorney Announces $1.3 Million Grant to Denver Police to Fight COVID-19 PandemicRead the Press Release
DENVER – U.S. Attorney Jason Dunn announced today that the City and County of Denver received $1.359 million in Department of Justice grants to respond to the public safety challenges posed by the outbreak of COVID-19. The money will be used by the Denver Police Department for items such as personal protective equipment (PPE) and sanitizing devices.
The grant is available under the Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump. In addition, $14 million was allocated for local jurisdictions in Colorado.
“Local governments and law enforcement are shouldering an immense amount of responsibility as they respond to coronavirus and work to prevent its spread,” said Dunn. “These funds are here to help them deal with the added burden they’re facing.”
Said Chief of Denver Police Paul M. Pazen: “The Denver Police Department is extremely grateful for this grant funding in support of community and officer safety amid the challenges posed by the COVID-19 pandemic. These funds will be used to support the community through staffing and overtime where most needed and will benefit the wellbeing of officers -- and by extension, those whom they contact – through personal protective equipment, devices for sanitizing gear and patrol vehicles, and COVID-19 testing.”
Other jurisdictions can find out if they are eligible and apply immediately by visiting this website. The Justice Department is moving quickly, awarding grants on a rolling basis and aiming to have funds available for drawdown as soon as possible after receiving applications
“The outbreak of COVID-19 and the public health emergency it created are sobering reminders that even the most routine duties performed by our nation’s public safety officials carry potentially grave risks,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “These funds will provide hard-hit communities with critical resources to help mitigate the impact of this crisis and give added protection to the brave professionals charged with keeping citizens safe.”
The law gives jurisdictions considerable latitude in the use of these funds for dealing with COVID-19. Potential uses include hiring personnel, paying overtime, purchasing protective equipment, distributing resources to hard-hit areas and addressing inmates’ medical needs.
Agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are candidates for the emergency funding. Local units of government and tribes will receive direct awards separately according to their jurisdictions’ allocations.
The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.
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U.S. Attorney’s Office Gets Relief Under ADA for 10-Year-Old Deaf Soccer PlayerRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn announced today that the United States has resolved a claim of discrimination under the Americans with Disabilities Act (ADA) against Colorado Rush Soccer Club. The initial complaint was brought by the family of a former youth player who is deaf.
“John” was seven years old in the fall of 2017, when he began playing soccer on a Colorado Rush-sponsored team. Because John is deaf, he requires auxiliary aids and services to communicate with his coaches and fellow teammates during practices and games. Without some communication assistance, John could not understand what was going on during soccer practices and games. Colorado Rush initially provided auxiliary aids and services for John.
The family alleged that in January of 2018, Colorado Rush stopped providing auxiliary aids and services to John to help him communicate, claiming that it was too expensive. Colorado Rush informed John’s family that the family would be responsible for ensuring that John could effectively communicate during Colorado Rush’s soccer practices and games. The family alleged that they hired their own sign language interpreter for John, or John’s father provided interpretation, for hundreds of practices or games. The family did this so that John could play soccer with his peers in the spring and fall of 2018 and the spring of 2019. Ultimately, the family decided that they could no longer play soccer with Colorado Rush because of the burden of having to provide effective communication for their son.
To resolve the complaint, Colorado Rush agreed to pay $11,000 in compensatory damages and civil penalties. It also agreed to adopt policies and procedures affirming that under Title III of the ADA, Colorado Rush is obligated to provide effective communication to individuals with disabilities through the provision of auxiliary aids and services.
“All youth sports leagues, whether public or private, must comply with the Americans with Disabilities Act,” said U.S. Attorney Jason Dunn. “We are pleased that Colorado Rush has agreed to adopt policies that comply with the Act. Those policies will help ensure that kids with disabilities now have the same opportunities to participate in youth sports programs as kids without disabilities.”
2020 marks the 30th Anniversary of the Americans with Disabilities Act. The Justice Department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living, and economic self-sufficiency for people with disabilities. The Justice Department and U.S. Attorney’s Office will continue to use its enforcement and technical assistance tools to eliminate unlawful discrimination against individuals with disabilities.
This case was handled by Assistant U.S. Attorney Zeyen Wu.
Department of Justice Makes $850 Million Available to Help Public Safety Agencies Address COVID-19 PandemicRead the Press Release
DENVER – U.S. Attorney Jason Dunn today announced that $14,207,832 in grant money has been allocated to Colorado public safety agencies to help them address the COVID-19 pandemic. The announcement was part of the Department of Justice making $850 million available to help public safety agencies respond to the challenges posed by the outbreak of COVID-19. The Coronavirus Emergency Supplemental Funding program, authorized by the recent stimulus legislation signed by President Trump, will allow eligible state, local and tribal governments to apply immediately for these critical funds. The department will move quickly to make awards once applications are submitted, with the goal of having funds available for drawdown within days of the award.
“Congress and the President have made this funding available on an emergency basis so we can do our part to protect Colorado residents impacted by COVID-19,” said U.S. Attorney Jason Dunn. “Eligible Colorado agencies should apply for this money and be forward thinking in how to serve our citizens during this very stressful time.”
“This is an unprecedented moment in our nation’s history and an especially dangerous one for our front-line law enforcement officers, corrections officials, and public safety professionals,” said Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan. “We are grateful to Congress for making these resources available and for the show of support this program represents.”
The solicitation, posted by the Bureau of Justice Assistance (BJA) in the Justice Department’s Office of Justice Programs (OJP), will remain open for at least 60 days and be extended as necessary. OJP will fund successful applicants as a top priority on a rolling basis as applications are received. Funds may be used to hire personnel, pay overtime costs, cover protective equipment and supplies, address correctional inmates’ medical needs and defray expenses related to the distribution of resources to hard-hit areas, among other activities. Grant funds may be applied retroactively to January 20, 2020, subject to federal supplanting rules.
The Colorado Department of Public Safety, Division of Criminal Justice will receive $9,184,619 to respond to state needs. Colorado’s allocation as well as other state/territory allocations can be found at https://bja.ojp.gov/sites/g/files/xyckuh186/files/media/document/fy20-cesf-state-allocations.pdf or in the chart attached. In addition to the state’s allocation, Colorado agencies that were eligible for the fiscal year 2019 State and Local Edward Byrne Memorial Justice Assistance Grant Program are also eligible to apply to BJA for additional emergency funding. A complete list of eligible jurisdictions in and the amount of money they can apply for can be found attached or by going to https://bja.ojp.gov/sites/g/files/xyckuh186/files/media/document/fy20-cesf-allocations-co.pdf.
For more information about the Coronavirus Emergency Supplemental Funding program, please visit https://bja.ojp.gov/funding/opportunities/bja-2020-18553. For more information about the Office of Justice Programs, please visit https://www.ojp.gov/.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Statement of U.S. Attorney's Office and FBI Denver Regarding 2019 Colorado Springs Officer Involved ShootingRead the Press Release
DENVER -- The Federal Bureau of Investigation is charged with reviewing shootings by police officers to determine if there is evidence of federal criminal civil rights violations in connection with such shootings. Officer-involved shootings constitute federal criminal civil rights violations only when officers willfully deprive people of their constitutional rights to be free from unreasonable seizures or the application of unreasonable force. Consistent with its charge, the FBI’s Denver Field Office reviewed the facts and circumstances surrounding the shooting of Devon Bailey on August 3, 2019. Following the FBI’s review, the U.S. Attorney’s Office also reviewed those facts and circumstances to make a prosecution determination. Both offices concluded that the fatal shooting of Mr. Bailey, although undoubtedly devastating to his family, friends, and community, did not result from any willful violation of Mr. Bailey’s constitutional rights. Therefore, the U.S. Attorney’s Office will not pursue criminal charges. The FBI and the U.S. Attorney’s Office have notified Mr. Bailey’s family of their conclusion and are arranging a private meeting with them.U.S. Attorney Dunn to Lead Federal Effort to Protect Citizens Against Coronavirus Fraud; Urges Public to Report Suspicious ActivityRead the Press Release
DENVER – At the direction of United States Attorney General William Barr, United States Attorney Jason Dunn has directed his office to prioritize the investigation and prosecution of any fraud related to the Coronavirus crisis. U.S. Attorney Dunn has also appointed Executive U.S. Attorney J. Chris Larson to serve as the office’s Coronavirus Fraud Coordinator. In that role, EAUSA Larson will serve as the liaison to federal agencies - including the FBI, U.S. Postal Inspection Service, Homeland Security Investigation, IRS-CI and Health and Human Services Office of the Inspector General, and the U.S. Marshals - the federal courts, and state and local government. He will also be responsible for conducting outreach and awareness activities within Colorado communities.
“The Colorado U.S. Attorney’s Office will be vigilant in investigating and prosecuting fraud related to the Coronavirus,” said U.S. Attorney Jason Dunn. “While this virus may be new to Colorado, fraud is not. My office and I will be steadfast in protecting the citizens of Colorado at a time when they may be particularly vulnerable to financial scams.”
Some examples of these schemes may include:
- Individuals and businesses selling fake cures for COVID-19 online;
- Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention;
- Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received;
- Seeking donations for illegitimate or non-existent charitable organizations; and
- Medical providers fraudulently billing or overcharging for tests and procedures.
To report suspected fraud schemes related to COVID-19 (the Coronavirus), the public should call the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected]. The NCDF can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components to identify, investigate and prosecute fraud schemes. The NCDF coordinates complaints with 16 additional federal law enforcement agencies, as well as state Attorneys General and local authorities.
To find more about Department of Justice resources and information, please visitwww.justice.gov/coronavirus.
U.S. Attorney Announces More Than $83 Million Available to Support School SafetyRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that more than $83 million in Department of Justice grants is available to help communities improve school security and protect students, teachers and faculty from threats of violence.
“We have learned first-hand how important school safety is in Colorado,” said U.S. Attorney Jason Dunn. “It is important that the appropriate agencies consider applying for these funds, as we should do everything possible to support school safety to prevent violence and protect our children.”
“School violence is no longer an abstract threat but has become a tragic reality in too many of America’s communities. Moving to meet this challenge is among the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs designed to tighten school security and improve the reporting of threats.
A number of funding opportunities for school safety are currently open, with another opening in the near future:
Research and Evaluation on School Safety
https://nij.ojp.gov/funding/opportunities/nij-2020-17308
Total Available $5 million Deadline 4/13/2020
STOP Act School Violence Program (FY20)
https://nij.ojp.gov/funding/opportunities/nij-2020-17308
Total Available $71.4 million Deadline 4/13/2020
Strategies to Support Children Exposed to Violence
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17926
Total Available $7 million Deadline 4/27/2020
For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities.
U.S. Attorney Announces Nearly $60 Million in Grants Available to Support Prisoners' Successful Reentry into Their CommunitiesRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn today announced that nearly $60 million in Department of Justice grants is available to help communities address public safety by supporting successful reentry of adult and juvenile offenders into their communities.
“My office has had a dedicated Assistant U.S. Attorney and an in-office task force addressing prisoner reentry,” said U.S. Attorney Jason Dunn. “These funds will help our partners address the issues inmates face when leaving prison and reentering society.”
“Our nation is facing difficult public safety challenges that demand strong and immediate action. The high rate of recidivism poses a dire threat to community safety and is being met with a robust response by this Administration,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this persistent challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including adult and juvenile reentry initiatives and research projects designed to improve our knowledge of what works in reentry programming.
A number of funding opportunities are currently open, with several more opening in the near future.
Correctional Adult Reentry Education, Employment, and Recidivism Reduction Strategies Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17104
Total Available $7.2 million Deadline 4/27/2020
Improving Community Supervision Outcomes Through Swift, Certain, and Fair Responses
https://bja.ojp.gov/funding/opportunities/bja-2020-17096
Total Available $3 million Deadline 4/28/2020
Improving Reentry for People with Substance Use Disorders Program
https://bja.ojp.gov/SCASUD20
Total Available $13.2 million Deadline 4/27/2020
Innovations in Reentry Initiative: Building System Capacity & Testing Strategies to Reduce Recidivism
https://bja.ojp.gov/funding/opportunities/bja-2020-17281
Total Available $4 million Deadline 5/4/2020
Research and Evaluation on Promising Reentry Initiatives https://nij.ojp.gov/funding/opportunities/nij-2020-17295
Total Available $6 million Deadline 5/5/2020
Review and Validation of the First Step Act Risk Assessment Tool https://nij.ojp.gov/funding/opportunities/nij-2020-fsa
Total Available: Determined after selection Deadline 4/10/2020
Second Chance Act Community-Based Reentry Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17110
Total Available $13.5 million Deadline 5/4/2020
Second Chance Act Evaluation Participation Support
https://bja.ojp.gov/funding/opportunities/bja-2020-17680
Total Available $4 million Deadline 4/28/2020
Second Chance Act Youth Offender Reentry Program
https://ojjdp.ojp.gov/sites/g/files/xyckuh176/files/media/document/ojjdp-2020-17350.pdf
Total Available $7 million Deadline 4/28/2020
For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities
U.S. Attorney Announces More Than $163 Million Available to Fight Addiction CrisisRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn today announced that more than $163 million in Department of Justice grants is available to help communities address America’s addiction crisis.
“The opioid and addiction crisis a top priority for me and my office,” said U.S. Attorney Jason Dunn. “We are throwing everything we have at stopping these drugs from getting into the hands of those who illegally prescribe and dispense them and those who chose to use them without a valid prescription. These funds in particular will help our partners continue and expand their hard work on this important effort.”
“Our nation is facing the difficult challenge of curbing substance addiction, which threatens public safety and is among the Administration’s top domestic priorities,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “The Department of Justice is front and center in the fight to meet this challenge. OJP is making historic amounts of grant funding available to ensure that our communities have access to innovative and diverse solutions.”
The funding is available through OJP, the federal government’s leading source of public safety funding and crime victim assistance in state, local and tribal jurisdictions. OJP’s programs support a wide array of activities and services, including programs designed to prevent overdose deaths and break the cycle of addiction and crime.
A number of funding opportunities that address the addiction crisis are currently open:
Adult Drug Court and Veterans Treatment Court Discretionary Grant Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17098
Total Available $1.75 million Deadline 5/14/2020
Comprehensive Opioid, Stimulant, and Substance Abuse Site-based Program
https://bja.ojp.gov/COSSAP20
Total Available $27 million Deadline 5/21/2020
Enhancing Community Responses to America's Addiction Crisis: Serving Our Youngest Crime Victims
https://www.ovc.gov/grants/pdftxt/fy-2020-enhancing-community-responses-to-drug-crisis.pdf
Total Available: $19 million Deadline: 5/4/2020
Family Drug Court Program
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17090
Total Available $18.2 million Deadline 4/8/2020
Harold Rogers Prescription Drug Monitoring Program
https://bja.ojp.gov/funding/opportunities/bja-2020-17754
Total Available $28.1 Deadline 5/5/2020
Juvenile Drug Treatment Court Program
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17051
Total Available $7.2 million Deadline 4/13/2020
Mentoring Opportunities for Youth Initiative
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-16930
Total Available $48 million Deadline 4/13/2020
Opioid Affected Youth Initiative
https://ojjdp.ojp.gov/funding/opportunities/ojjdp-2020-17352
Total Available $9 million Deadline 4/20/2020
Research and Evaluation on Drugs and Crime https://nij.ojp.gov/funding/opportunities/nij-2020-17275
Total Available $1 million Deadline 4/20/2020
Residential Substance Abuse Treatment for State Prisoners
https://bja.ojp.gov/RSAT20
Total Available $4.5 million Deadline 4/6/2020
For more information regarding all OJP funding opportunities, visit https://www.ojp.gov/funding/explore/current-funding-opportunities
Sunset Mesa Funeral Home Operators Arrested for Illegal Body Part SchemeRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that the operators of Sunset Mesa Funeral Home in Montrose, Colorado, were arrested for illegally selling body parts or entire bodies without the consent of the family of the deceased. The two operators, Megan Hess, age 43, and her mother, Shirley Koch, age 66, appeared virtually before a U.S. Magistrate Judge in Grand Junction, where they were advised of their rights and the charges pending against them. The Denver Field Office of the FBI and the Department of Transportation Office of the Inspector General joined in today’s announcement.
According to a recently unsealed grand jury indictment, from 2010 through 2018, Hess and Koch operated Sunset Mesa Funeral Directors (SMFD), which purported to provide burial and cremation services. Hess, and at times Koch, would meet with families seeking cremation services, and would offer to cremate the decedents’ bodies and provide the remains back to the families. SMFD would charge $1,000 or more for cremations, but many never occurred.
In 2009, Hess also created a nonprofit called Sunset Mesa Funeral Foundation, d/b/a Donor Services, a body broker service operated out of the same location as SMFD.
In at least dozens of instances, Hess and Koch did not follow family wishes, and neither discussed nor obtained authorization for Donor Services to transfer decedents’ bodies or body parts to third parties. In the few instances where families agreed to donation, Hess and Koch sold the remains of those decedents beyond what was authorized by the family, which was often limited to small tissue samples, tumors, or portions of skin. Hess and Koch also delivered cremains to families with the representation that the cremains were that of the deceased when, frequently, that was not the case.
Hess and Koch would also ship bodies and body parts that tested positive for, or belonging to people who had died from, infectious diseases, including Hepatitis B and C, and HIV, after certifying to buyers that the remains were disease free. These shipments would be through the mail or on commercial air flights in violation of Department of Transportation regulations regarding the transportation of hazardous materials.
This investigation was complex and involved a detailed forensic review of evidence. At a later date, the U.S. Attorney’s Office will be conducting a victim-only meeting to provide additional information and answer victim questions.
Both defendants have been charged with six counts of mail fraud and three counts of illegal transportation of hazardous materials. If convicted of mail fraud, each defendant faces up to 20 years in federal prison, per count. If convicted of transportation of hazardous materials, each defendant faces up to 5 years in federal prison, per count. They each also face up to a $250,000 fine, per count.
“The defendants are charged with committing a blatant fraud on many, many victim. This betrays a fundamental trust during one of the worst times in a person’s life – having to make arrangements for a deceased loved one,” said U.S. Attorney Jason Dunn. “It is hard to imagine the pain and worry of those who used Sunset Mesa and not knowing what happened to their loved ones’ remains.”
“I also want to recognize the hard work of the men and women of the FBI who conducted this investigation,” added U.S. Attorney Dunn. “This was an extremely complex case and would not have resulted in charges absent their dogged work.”
“Let today’s actions serve notice to those who would commit such self-serving acts of callous greed, we will diligently and tirelessly work to bring you to justice,” said FBI Denver Assistant Special Agent in Charge Dameon Hutto.
“Today’s indictment stemming from the illegal transportation of hazardous materials is a clear signal that such illegal acts will not be tolerated,” stated Lisa Glazzy, Acting Regional Special Agent-in-Charge, U.S. Department of Transportation Office of Inspector General (DOT-OIG). “Working with our law enforcement and prosecutorial colleagues, we will continue to protect the public’s safety from those who would seek to circumvent DOT-related laws and regulations.”
This case is being prosecuted by Assistant U.S. Attorney Jeremy Chaffin from the U.S. Attorneys Grand Junction Office and Assistant U.S. Attorney Tim Neff in the Denver office.
The information provided today, as well as the information contained in the indictment, are allegations, and the defendants are presumed innocent unless and until proven guilty.
Colorado Resident and Insurance Company Agree to Pay $500,000 for Costs Incurred in Responding to Escaped Camp FireRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Grange Insurance Association and Dale Owens of Craig, Colorado, have paid the United States $500,000 to resolve their liability for a wildland fire in June of 2017 near Rangely, Colorado.
On June 11, 2017, Mr. Owens created a campfire to roast hotdogs for his family on federal land administered by the Bureau of Land Management near Rangely. The United States alleges that Mr. Owens did not build a fire ring around the entirety of the fire and that he stepped away from the fire to gather additional firewood. While he was away, there was a shift in the wind, and the fire escaped the fire ring. Mr. Owens was able to get his family to safety and to call 911. He also stayed on the scene and attempted to extinguish the fire. Despite the efforts of Mr. Owens and of first responders, the fire—which later became known as the Dead Dog Fire—was not immediately contained and became an uncontrolled wildfire. The Bureau of Land Management and United States Forest Service incurred significant fire suppression costs in fighting the Dead Dog Fire.
Mr. Owens had a home insurance policy in place with Grange Insurance Association at the time of the Dead Dog Fire. Both Mr. Owens and Grange Insurance have been fully cooperative with the United States, allowing the parties to reach a full resolution of Mr. Owens’ liability for the Dead Dog Fire without litigation.
“Wildfires are a constant danger in Colorado, and taxpayers often foot the bill for putting them out. The Dead Dog Fire is an example of how not following best practices around campfires can lead to a wildfire,” said U.S. Attorney Jason Dunn. “The United States appreciates that this fire was reported immediately, which allowed federal resources to be deployed quickly to combat it. We also appreciate that this matter was resolved cooperatively and enables the United States to be reimbursed for many of the costs incurred in fighting the fire.”
“We strive to educate the public and prevent any human-caused fires. In this case, the BLM appreciates that Mr. Owens stayed on scene and cooperated with fire investigators providing important information that was used for the case. Part of being an educated and responsible public land user is knowing what to do in a situation like the Dead Dog Fire,” said BLM Colorado State Director Jamie Connell. “We would also like to thank the United States Attorney's Office for their assistance in settling this case.”
The United States was represented in this matter by Assistant United States Attorney Andrea Wang.
VA Employee Found Guilty of Corruption Charges and Defrauding VA of Nearly $19 Million in A YearRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that yesterday a jury sitting in U.S. District Court in Denver found former Veterans Affairs (VA) employee Joseph Prince, age 60, of Aurora, Colorado guilty of felony health care fraud, conspiracy, payment of illegal kickbacks and gratuities, money laundering charges and conflict of interest. The verdict is the result of an eight-day jury trial before U.S. District Court Judge Raymond P. Moore. Prince’s bond was continued and he was ordered to home incarceration pending his sentencing.
According to the indictment and evidence presented at trial, Prince was a Beneficiary Provider Relationships Specialist with the VA’s Spina Bifida (SB) Health Care Benefits Program, which covers medical needs of children of certain veterans of the Korea and Vietnam wars suffering from SB. Prince worked for a VA call center in Denver, and spoke with health care providers and SB beneficiaries or their families regarding their health care needs and care reimbursement.
Prince defrauded the VA’s Spina Bifida Health Care Benefits Program by signing up the family members of the program’s beneficiaries as home health “contractors” with sham home health entities run by Prince’s associates. Prince knew that the sham home health entities were not authorized providers by the VA. He nonetheless encouraged the family members to submit bills despite the fact that they were not approved providers and to include the bills for services that either were not provided or were not allowed by the VA. He then accepted payments from the associated home health entities for referrals he himself made to those agencies. Prince’s referrals led to payments totaling approximately $20 million from the VA to the Prince-related home health agencies, which were run by associates including his wife, his brother-in-law, his half-sister, and friends.
Ultimately Prince referred approximately 45 SB beneficiaries to the sham home health entities. The total amount of fraudulent claims paid by the SB Health Care Benefits Program to the five Home Health Entities totaled approximately $19 million. Of that amount, Prince received approximately $1.5 million in kickbacks from two home health entities between December 2017 and June 2018.
“To steal from a program that is intended to help our veterans and their children who suffer from serious medical conditions is reprehensible,” said U.S. Attorney Jason Dunn. “Mr. Prince was also harming the American taxpayers and will now pay a significant price for his actions.”
“The crimes perpetrated by Joseph Prince and his associates were especially troubling since Prince was a VA official,” said Gregg Hirstein, Special Agent in Charge, VA Office of Inspector General. “The Department of Veterans Affairs Office of Inspector General is committed to holding accountable those who illegally enrich themselves using VA programs intended to help our nation’s veterans and their dependents, who deserve to be served by a workforce of the highest integrity. I am thankful for the close coordination of the investigative agencies and the United States Attorney’s Office to quickly end this massive fraud.”
“The sizeable amount of false claims Joseph Prince submitted and subsequent kickbacks he received are an affront to government programs intended to help the public,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge, Denver Field Office. “It is unacceptable to abuse a position of trust for personal financial gain and for those that do, IRS-Criminal Investigation will seek justice on behalf of the true beneficiaries of government benefits programs.”
“The recent conviction of Joseph Prince is significant and highlights the FBI’s collaboration with the United States Attorney’s Office as we hold this defendant accountable for abusing his position as an official at the Department of Veteran’s Affairs to manipulate government contracts for personal gain,” said FBI Denver Special Agent in Charge Dean Phillips. “The FBI will continue to use all available tools to detect illegal conflicts of interest and bribery schemes in government entities.”
Long-time friend of Prince and co-conspirator Roland Vaughn pled guilty to paying an illegal gratuity to a public official on August 1, 2019, and is scheduled to be sentenced by Judge Moore on April 9, 2020. Glenn and Catherine Beach, who were also friends of Mr. Prince, pleaded guilty to paying an illegal gratuity to Prince. The Beaches will be sentenced on April 1, 2020.
Prince will be sentenced on June 11, 2020. Felony Conflict of Interest carries a penalty of not more than five years in prison and a fine of not more than $250,000 or two times the gain or loss from the offense per count. Health care fraud carries a penalty of not more than 10 years in prison and a fine of not more than $250,000 or two times the gain or loss from the offense per count. Conspiracy to Commit an Offense against the United States carries a penalty of not more than five years in prison and a fine of not more than $250,000 or two times the gain or loss from the offense. Soliciting/Receiving an Illegal Gratuity carries a penalty of not more than two years in prison and a fine of not more than $250,000 or two times the gain or loss from the offense per count. Unlawful Monetary Transactions carries a penalty of not more than 10 years in prison and a fine the greater of $250,000 or two times the value of the property involved in the transaction per count. Money Laundering carries a penalty of not more than 20 years in prison and a fine the greater of $500,000 or twice the value of property involved in the transaction per count.
The government will seek forfeiture of specific assets and restitution to the Veterans Health Administration in the amount of approximately $19 million.
This case was investigated by VA’s Office of the Inspector General, the FBI, and IRS-CI.
This case is being prosecuted by Assistant U.S. Attorneys Anna K. Edgar and Hetal J. Doshi.
Former Air Force Academy Cadet Sentenced to Federal Prison for Raping Fellow CadetRead the Press Release
DENVER – United States Attorney Jason Dunn announced that Alvaro Pablo Velarde, age 20, of Lima, Peru, was sentenced to five years in prison for two counts of aggravated sexual abuse and one count of abusive sexual contact for raping a fellow cadet at the U.S. Air Force Academy. U.S. District Court Judge Christine M. Arguello announced the sentence yesterday afternoon to a full courtroom, which included the victim. The defendant was in custody before the hearing and was remanded at the conclusion.
According to court documents and facts presented by prosecutors at trial, Velarde raped a female cadet in her dorm room at the Air Force Academy in Colorado Springs on October 23, 2018. During the attack, he ignored multiple pleas from the victim to stop. Afterward, the victim experienced severe pain and sought medical attention. A sexual assault examination revealed physical injuries sustained during the rape, and a doctor at the Air Force Academy later diagnosed her with a concussion.
Velarde was disenrolled from the Air Force Academy before the trial. The victim still attends the Air Force Academy.
“Our service members deserve every protection our country can provide,” said U.S. Attorney Jason Dunn. “In this instance, one of our own was violently raped by a cadet who was a guest from a foreign country. This violent assault has done tremendous damage – both to the victim, as well as to the Air Force Academy itself. I am proud that our prosecutors ensured this criminal was brought to justice. I am also proud of the victim, who bravely stepped forward and made sure her story was told. We owe her a debt of gratitude for what she has done for justice, as well as for the service she will provide in defense of our nation.”
This case was investigated by the Air Force Office of Special Investigations. This matter was handled by Assistant U.S. Attorneys Peter McNeilly and Emily Treaster.
Case No. 18-cr-00525
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Denver Woman Pleads Guilty to Mail Fraud and Tax Evasion After Using Company Money to Purchase $846,441 in Goods That Were Then Sold on EbayRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Kristen Martin, age 38, of Denver, pleaded guilty to mail fraud and federal tax evasion. The defendant appeared at the change of plea free on bond. Her bond was continued after the hearing. The IRS-Criminal Investigation, the Federal Bureau of Investigation (FBI) and the U.S. Postal Inspection Service joined in today’s announcement.
According to the filed Information and the stipulated facts in the plea agreement, Martin was an executive assistant with her employer from January 2013 through December 2016. As part of her duties as an executive assistant, Martin was authorized to use a company account at Staples to purchase supplies that were needed by her employer. Due to various changes in assignments within the company, over the years Martin gained access to and utilized 23 different company accounts for purposes of ordering supplies from Staples.
From 2013 through 2016, Martin used the company’s accounts at Staples to order unauthorized items which she kept for herself and resold online through Ebay and other means. According to the Information, Martin fraudulently ordered, and billed to her company, 4,790 scientific calculators, 250 Ipads/tablet computers, 440 Apple TVs, 178 Kindles, 159 headsets, and 5 cameras, causing the company a loss of $846,441.11. Martin disputes this amount but agrees that she caused a loss of more than $550,000 to her employer through her scheme. Martin resold these fraudulently obtained goods and enriched herself from the sales to the tune of $571,725.61. Further, Martin used the company’s Federal Express account to ship the fraudulently purchased items to her buyers, costing her employer an additional loss of $7,896.57.
When senior employees of the company questioned Martin about some of these irregular purchases, she lied and stated that the purchases were made for a company project in a different division of the company.
In addition to both lying to and stealing from the company, Martin also willfully hid this fraudulently earned income from the IRS by filing false federal income tax returns for the years 2013 through 2016, in which she made false statements and failed to report the hundreds of thousands of dollars that she made from her scheme.
As a result of her actions, Martin has agreed to pay restitution in an amount up to $872,337.68 to her employer and in the amount of $161,864 to the IRS. The guilty plea hearing was held before U.S. District Court Judge Christine M. Arguello.
Martin will be sentenced by Judge Arguello on June 15, 2020. She was first charged by Information on January 14, 2020.
This case was investigated by the Internal Revenue Service—Criminal Investigation, the FBI and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant United States Attorney Pegeen D. Rhyne
Metro Denver Carjacker/Gun Store Robber Sentenced to 8 Years in Federal PrisonRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Jonathan Estrada, age 21, of Denver was sentenced yesterday to serve 96 months (8 years) in federal prison followed by 3 years on supervised release for carjacking and robbery of two gun stores. Estrada appeared at the sentencing hearing in custody and was remanded at its conclusion. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Field Division joined in this announcement.
Estrada and others were involved in violent “smash and grab” burglaries of two gun stores, stealing at least 30 firearms.
According to the stipulated facts from the plea agreement, on September 19, 2017, Estrada and another person burglarized Reloader’s gun store in Arvada, Colorado, after throwing a rock through a glass window. They stole seventeen firearms and left in a stolen vehicle.
On the morning of December 26, 2017, Estrada committed an armed carjacking in Arvada, where he fired a shot at an individual, then stealing the victim’s 2008 BMW.
On January 18, 2018, the defendant and five others burglarized Murdoch’s gun store in Littleton. They entered the store after throwing a rock through a glass window. They spent 3 minutes in the store, stealing 13 AR-15 style firearms. That evening, the ATF executed a search warrant at Estrada’s address. Agents found evidence related to the September 19, 2017 and January 18, 2018 gun store burglaries, as well as the armed carjacking.
“Gun crime is a top priority for the Department of Justice and our office,” said U.S. Attorney Jason Dunn. “Seizing these weapons and putting this defendant in prison for 8 years will unquestionably make our communities safer.”
“The community is safer as a result of this investigation,” said ATF Denver Field Division Special Agent in Charge David Booth. “ATF will combat violent crime with every resource as its disposal.”
This case was investigated by the ATF. The defendant was prosecuted by Assistant U.S. Attorney Emily Treaster. The sentence was handed down by U.S. District Court Judge Robert E. Blackburn.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
Former Veterans Affairs Official Sentenced to 18 Months in Federal Prison for Role in Bribery Scheme to Rig Federal ContractsRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that former U.S. Department of Veterans Affairs official Dwane Nevins, age 55, was sentenced to serve 18 months in federal prison followed by 3 years of supervised release for corruption offenses. The FBI’s Denver Field Office and the Veterans Affairs Office of Inspector General, Criminal Investigations Division, Central Field Office, joined in today’s announcement.
According to Court records, Dwane Nevins — a small business specialist at the VA’s Network Contracting Office in Colorado — agreed to take bribes offered by co-defendants Robert Revis, Anthony Bueno and an undercover FBI agent to help them manipulate the process for bidding on federal contracts with the VA. Revis and Bueno, working with Nevins, agreed to submit fraudulent bids from service-disabled-veteran-owned small businesses under contract with their consulting company so that federal contracts would be set aside for only those companies. As Bueno put it, the conspirators would then “own all the dogs on the track.” Nevins, Bueno and Revis worked to conceal the nature of the bribe payments by either kicking back to Nevins a portion of the payments made to their consulting company, or by asking their consulting company’s clients to pay Nevins for sham training classes related to federal contracting. At one of those sham trainings in Las Vegas, Nevada, Nevins accepted a $4,500 cash bribe from the undercover FBI agent.
After complaining about not being paid by Revis and Bueno for his participation in the scheme, Nevins used his official position at the VA to extort approximately $10,000 from an undercover FBI agent, telling the agent that “the train don’t go without me. You know what I mean? I’m the engine. I’m the caboose. I’m the engine room.” Nevins also told the undercover FBI agent “this is a business and businessmen need to get paid . . . . so I can have my Christmas, you know what I’m saying?”
Anthony Bueno was previously sentenced in this case to 30 months imprisonment. He was also sentenced to 63 months imprisonment for his role in a separately indicted wire fraud scheme in which he used false representations about investment opportunities to take over a million dollars from several victims.
Robert Revis pleaded guilty in April 2019 to an Information charging him with a single count of supplementing the salary of a federal official. His sentencing hearing is scheduled for March 2, 2020.
“Public corruption is one of my office’s top priorities,” said U.S. Attorney Jason Dunn. “And when it comes at the expense of our veterans by someone that is supposed to be helping them, we will vigorously prosecute those corrupt actors.”
“Dwane Nevins abused his position of power as a U.S. Department of Veterans Affairs Small Business Advisor in order to personally benefit,” said FBI Denver Special Agent in Charge Dean Phillips. “The FBI is grateful for its partnerships with OIG - U.S. Veterans Administration, OIG – U.S. Small Business Administration, and the U.S. Attorney’s Office which allowed the government to hold Mr. Nevins responsible for his actions.”
“This sentence should deter any government employee who hopes to unlawfully profit from their position of public trust,” said Gregg Hirstein, Special Agent in Charge, U.S. Department of Veterans Affairs, Office of Inspector General. “Individuals and companies involved in corrupting the VA’s business practices will be held accountable.”
The case was jointly investigated by the Federal Bureau of Investigation, the U.S. Department of Veterans Affairs Office of Inspector General, with substantial assistance from U.S. Small Business Administration Office of Inspector General.
The defendant was sentenced by U.S. District Court Judge R. Brooke Jackson and was prosecuted by Assistant United States Attorneys Bryan D. Fields and Hetal J. Doshi.
Boulder Man Pleads Guilty to Possession of Child PornographyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Wesley David Gilreath, age 29, of Boulder, pleaded guilty to two counts of possession of child pornography. Gilreath appeared at the change of plea hearing in custody, and was remanded at its conclusion. He is scheduled to be sentenced on June 2, 2020. The Denver office of the FBI joined in today’s announcement.
According to the stipulated facts contained in the plea agreement, on May 31, 2019, Gilreath left his phone on an RTD bus. The phone was recovered by RTD employees in Boulder, who provided it to the Boulder Police Department. The FBI later obtained a warrant to search the phone.
The contents of Gilreath’s phone included 12,000 images and 200 videos depicting child pornography. Gilreath also used the phone to seek out child pornography.
On July 31,2019, the defendant was arrested pursuant to a federal warrant. On August 1, 2019, the FBI searched the defendant’s residence. Agents seized a thumb drive with approximately 22,000 images and 2,400 videos depicting child pornography. Agents also seized a second phone with approximately 4,750 images and 1,400 videos depicting child pornography. The child pornography on the thumb drive and both of the defendant’s phones included images and videos depicting toddlers and infants. In addition, Gilreath used various social media, including three Twitter accounts, to knowingly receive, transport and distribute child pornography.
“The child pornography images and videos the defendant possessed were utterly offensive,” said U.S. Attorney Jason Dunn. “Thanks to the FBI, Boulder Police Department and RTD, we are able to get a serial child pornographer off our streets, protecting our children.”
Gilreath will remain in custody pending sentencing. He was previously ordered detained after a detention hearing that included evidence that he had posted “hunting guides” online targeting Jews, Muslims, and other groups and had been researching locations of local religious institutions, including mosques and synagogues.
This case was investigated by the FBI with support from the Boulder Police Department and RTD. The defendant is being prosecuted by Assistant U.S. Attorney Julia Martinez.
Black Market Marijuana Growers Sent to Federal PrisonRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Huanyu Yan, age 54, and wife You Lan Xiang, age 50, both of Aurora, Colorado, were sentenced earlier this week for their role in a large-scale residential black market marijuana grow. Mr. Yan was sentenced to 36 months in federal prison, and his wife, Xiang, was sentenced to 30 months in federal prison. Both were found guilty in December of 2019 of marijuana cultivation following a four-day jury trial. Yan and Xiang appeared at the sentencing hearing in custody, and were remanded at its conclusion. DEA Denver Division Special Agent in Charge Deanne Reuter joined in this announcement.
According to court documents as well as evidence presented at trial, on October 10, 2018, the Drug Enforcement Administration, North Metro Task Force, and the Aurora Police Department executed a federal search warrant at 20050 East Doane Drive, a single family home in a residential neighborhood in Aurora, Colorado. A search of the house revealed a large-scale illicit marijuana grow operation in the basement of the house, with 878 marijuana plants. The basement also contained 9.72 pounds of finished marijuana product. According to testimony at trial, the yield of all the plants in the basement would have been enough to create approximately 150,000 marijuana joints. Both defendants were convicted of 1) conspiracy to manufacture and possess with intent to distribute 100 or more marijuana plants; 2) possessing with intent to distribute 100 or more marijuana plants; and 3) using and maintaining a drug-involved premises.
“These defendants turned their family home into a full-scale drug manufacturing facility,” said U.S. Attorney Jason Dunn. “As the first to be sentenced in this operation, I hope it sends a message to anyone involved in black market marijuana production that we will catch them, prosecute them, and send them to prison.”
“This federal and state joint investigation targeted individuals seeking to profit from the illicit production and distribution of marijuana,” said Special Agent in Charge of the DEA Denver Field Division Deanne Reuter. “This conviction serves as a message to all individuals who are seeking to profit from the illicit sale of marijuana; they can and will be held accountable for their actions.”
These defendants were the first to be sentenced in what was a massive investigation into the production and distribution of black market marijuana. In total, 255 houses were searched with over 80,000 marijuana plants and 4,500 pounds of finished marijuana product seized.
This case was investigated by the DEA, North Metro Task Force and the Aurora Police Department. The defendants were prosecuted by Assistant U.S. Attorneys Aaron Teitelbaum and Peter McNeilly.
Metro Denver Man Agrees to Community Service and $500 Charitable Donation After Failing to Appear for Federal Jury DutyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Emil Francis Ozaraga has agreed to perform 50 hours of community service and pay $500 to charity as a consequence of failing to show up after being selected as a juror in U.S. District Court in Denver. This was part of a Diversion Agreement entered between the U.S. Attorney and Ozaraga. If Ozaraga fails to perform as per the agreement he could face a criminal charge and potential incarceration.
According to court records, Emil Francis Ozaraga was summoned to jury duty on October 21, 2019, in U.S. District Court in Denver. On that date, he was selected to sit on the jury in a civil case. Ozaraga was sworn in as a juror, heard opening statements of the parties, and heard testimony from the plaintiff’s first witness. At the end of the day on October 21, 2019, the jury was released, but before they left all jurors were told that they were required by the Court to return the following day, Tuesday, October 22, 2019, in time for court proceedings to resume at 9:00 a.m.
On that following morning, Ozaraga neither appeared for the court proceedings nor called to advise as to why he did not appear. All other jurors were present and prepared to proceed with trial. A later review of the jury questionnaire found that Ozaraga expressed disdain for the jury system. As a result, the court initiated criminal contempt proceedings against Ozaraga.
“Jury service is a civic right and an important obligation,” said U.S. Attorney Jason Dunn. “Our system of justice requires the participation of every citizen, and we will seek to hold accountable those that deliberately shirk their duty.”
Jamaican National Convicted of Stealing More Than $700,000 from Estes Park Senior Through Lottery ScamRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that a Jamaican national living in Brooklyn, New York was convicted late last week for his role in a lottery scheme that targeted an elderly woman from Estes Park. After a four-day jury trial in federal court in Denver, Leonard Luton, age 43, was convicted of one count of conspiracy to commit mail fraud and eight counts of aiding and abetting mail fraud.
According to court documents and facts presented at trial, Luton and another Jamaican national conspired to convince an elderly victim that she had won a $2.8 million dollar lottery and a Mercedes Benz. In order to receive her winnings, the victim was told she needed to pay thousands of dollars in “fees.” Throughout 2018, one of Luton’s co-conspirators directed the victim to mail multiple packages containing cash and cashier’s checks to what the investigation revealed were the addresses of Luton’s friends. The victim was also directed to purchase and mail six iPhones as part of the scheme.
The evidence admitted at trial established that Luton made two trips to the victim’s home in Estes Park to pick up packages of cash. On the first trip, in October of 2018, one of Luton’s co-conspirators went to the victim’s door at 1:30 a.m., identified himself as an FBI agent, showed her a fake FBI badge, and directed her to hand over a package containing $65,000 in cash. On the second trip in January of 2019, Luton was arrested at the victim’s residence when he arrived to pick up more cash. Upon his arrest, Luton was in possession of one of the iPhones purchased by the victim. Financial records from the victim and Luton also established Luton’s involvement in the scheme. In total the victim lost more than $700,000.
“The United States Attorney’s Office is committed to fighting elder fraud,” said United States Attorney Jason Dunn. “Lottery scams are just one way that scammers prey on vulnerable victims. Together with our law enforcement partners, we are working to protect the elderly and bring scammers to justice.”
“The outcome of this case is indicative of the success that can be attained when agencies combine resources to tackle cyber-related matters such as the greed-driven lottery scam Mr. Luton fabricated,” said FBI Special Agent in Charge Dean Phillips. “We are confident this case will send a message to those who devise complex fraud schemes that they will be aggressively investigated and prosecuted to the full extent of the law. The FBI would like to extend its appreciation to the Larimer County Sheriff’s Office and Estes Park Police Department for their partnership, hard work, and efforts in this investigation.”
Luton is scheduled to be sentenced on May 12, 2020, by the Honorable United States District Court Judge Christine M. Arguello.
This case was investigated jointly by the FBI and the Estes Park Police Department with assistance from the Larimer County District Attorney’s Office.
Assistant United States Attorneys Martha Paluch and Sarah Weiss prosecuted this matter.
CASE NUMBER: 19-cr-00098
Thirty Indicted for Drug TraffickingRead the Press Release
DENVER – United States Attorney Jason R. Dunn, along with federal, state, and local partners, today announced that 30 defendants were indicted in two federal grand jury indictments for trafficking drugs, including methamphetamine, cocaine, heroin, and fentanyl. Of the 30 defendants indicted, 24 have been arrested and one is in state custody on a separate charge. Four others are in Mexico and one is at large in the United States. The FBI, Homeland Security Investigations, Immigrations and Customs Enforcement, Internal Revenue Service—Criminal Investigation, the Drug Enforcement Administration, the Douglas County Sheriff and the Aurora Police Department all joined in the announcement.
According to the indictments and other court documents, following an investigation that began in late 2018, agents seized approximately 400 pounds of methamphetamine, 5 pounds of heroin, 4 pounds of cocaine, and 15,000 fentanyl pills, which were disguised to look like prescription oxycodone.
The arrests included more than two dozen suspected members of a Mexican drug trafficking organization based in Denver, including one, Candelaria Vallejo-Gallo, who is being charged with operating a Continuing Criminal Enterprise (CCE), otherwise known as being charged as a Drug Kingpin. To be considered a Drug Kingpin, the individual has to violate the Controlled Substances Act as part of a series of related or ongoing violations. Additionally, the defendant must be an organizer, supervisor, or manager of at least five other persons connected in the same activity, and obtain substantial income or resources from the series of violations. If convicted of being a Drug Kingpin, Vallejo-Gallo faces not less than 20 years, and up to life in federal prison. Vallejo-Gallo is a Mexican national.
In addition to the drug trafficking charges, at least one defendant is charged with carrying a firearm in furtherance of the drug conspiracy.
“This is a very significant operation that took a massive amount of drugs and a large number of drug traffickers off our streets,” said United States Attorney Jason R. Dunn. “I want to commend the work of the FBI for their outstanding investigation, as well as for their tactical operation last week in apprehending this large number of defendants without incident. I also want to thank the other law enforcement agencies that participated in this operation and the arrests. Colorado’s law enforcement community is second to none in terms of our ability to work collaboratively to ensure that criminals are apprehended and that the best interests of the public are always our controlling objective.”
“The combined efforts of the FBI, Drug Enforcement Administration, Homeland Security Investigations, Immigration and Customs Enforcement, Internal Revenue Service, Douglas County Sheriff’s Office, Colorado State Patrol, Aurora PD, and a multitude of other law enforcement agencies resulted in the FBI OCDETF Strike Force Group taking a significant drug trafficking organization off the streets of Denver and Aurora,” said FBI Denver Special Agent in Charge Dean Phillips. “Thanks to these partnerships, our community and children are safer.”
"This indictment reflects the hard work of our special agents and law enforcement partners who worked diligently over the last year to investigate the Vallejo Drug Trafficking Organization and bring them to justice,” said Assistant Special Agent in Charge, Homeland Security Investigations, Denver, Stephanie Lord Eisert. “Homeland Security Investigations remains committed to targeting the flow of money which fuels transnational organized crime, and we will continue to aggressively pursue those that enable the flow of deadly narcotics into our communities."
“IRS-CI has and will continue to investigate drug traffickers by pursuing sophisticated, high profile, income tax, currency-related, and money laundering charges against these criminals,” said Acting Special Agent in Charge, Amanda Prestegard.
This investigation was handled by the FBI, the DEA, Homeland Security Investigations (HSI), Internal Revenue Service—Criminal Investigation, U.S. Immigration and Customs Enforcement, the Douglas County Sheriff, the Colorado State Patrol, and the Aurora Police Department.
The defendants are being prosecuted by Assistant U.S. Attorneys Cyrus Chung and Zachary Phillips.
The charges contained in the indictments are allegations and the defendants are presumed innocent unless or until proven guilty.
CASE NUMBERS: 20-cr-0028 and 20-cr-0025
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Manitou Springs Man Sentenced for Tax EvasionRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Scott Daniel Roughen, age 54, of Manitou Springs, Colorado was sentenced today to serve 24 months (2 years) in federal prison, followed by 3 years of supervised release for tax evasion. He was also ordered to pay $995,033.51 in restitution. Roughen was ordered to report to a facility designated by the U.S. Bureau of Prisons on March 18, 2020. IRS-Criminal Investigation Special Agent in Charge Andy Tsui joined in today’s announcement.
According to court documents, Roughen failed to file individual federal tax returns for tax years 2000 through 2006. After the IRS assessed tax liabilities for Roughen for those tax years, he evaded the payment of those taxes for more than a decade by hiding his income through shell corporations, using bank accounts held in names other than his own, setting up multiple offshore bank accounts, and recruiting others to lie to the IRS on his behalf.
“The defendant cheated the American people for seven years and tried to escape liability for many more,” said U.S. Attorney Jason Dunn. “He will now go from a life of luxury to a prison cell as a result of his lies and deception.”
“Every American who pays his or her taxes should be offended that a select few use offshore accounts to evade paying their fair share of taxes,” said Andy Tsui, Special Agent in Charge, IRS Criminal Investigation. "Today's sentence is a positive message, especially since it is tax filing season, to honest taxpayers and further shows that IRS – CI and the U.S. Attorney’s Office are committed to protecting the integrity of the U.S. tax administration system, and to make sure everyone complies with their tax obligations."
This case was investigated by the IRS – Criminal Investigation. Roughen was prosecuted by Assistant United States Attorney Pegeen Rhyne.
Former Police Officer Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that David Delaney, age 29, of Golden, Colorado, was sentenced to serve 120 months (10 years) in federal prison, followed by 5 years of supervised release for possessing images of child pornography. Delaney was also ordered pay $3,000 in restitution to a victim of his crime. At the conclusion of the sentencing hearing, Delaney was remanded to custody of the United States Marshal. Homeland Security Investigations (HSI) Special Agent in Charge Steven W. Cagen joined in today’s announcement.
According to court records, including stipulated facts contained in the defendant’s plea agreement, and publicly available employment information, Delaney was an officer with the Red Rocks Community College Police Department prior to his arrest. In June 2018, law enforcement officers in Colorado from four agencies independently discovered Delaney’s computer offering child pornography for distribution online via a file-sharing program. Each of these officers downloaded files from Delaney’s computer and confirmed that the files were images and videos of child exploitation, including many graphic videos of child sexual assaults.
On July 31, 2018, and August 3, 2018, search warrants were executed by the Golden Police Department and HSI at Delaney’s residence. Delaney was not present during the search because he had been traveling internationally. Authorities seized electronic media, including an SD card that had been hidden in Delaney’s bedroom. The SD card revealed a deleted folder containing remnants of a video depicting the sexual assault of a minor girl by an adult man. Officers also discovered a shelf in Delaney’s bedroom that contained pictures depicting Delaney and a child, along with various notes and memorabilia involving Delaney and the child. Further investigation revealed that Delaney had access to another child. During the sentencing hearing, the Court found that Delaney had engaged in a pattern of activity involving the sexual abuse of the second child and that he was grooming the first child for abuse.
On August 6, 2018, Delaney returned to the United States and was found to be in possession of various electronic media which was searched pursuant to a federal search warrant. Child pornography as well as remnants of several file-sharing programs were found in deleted space on that media.
“These actions are reprehensible,” said U.S. Attorney Jason Dunn. “As a police officer, the defendant took an oath to uphold the law. Today, the law was upheld, and this defendant is held to account.”
“Plain and simple, this criminal’s disgusting actions stripped these victims of their innocence and dignity,” said Steven Cagen, Special Agent in Charge of Homeland Security Investigations, Denver. “HSI special agents are highly skilled and trained to use the most advanced technology available to locate, identify and investigate these criminals. We aggressively work with community members and our law enforcement partners to rescue these innocent children and prosecute their exploiters.”
U.S. District Court Judge Raymond P. Moore pronounced the sentence. The case was investigated by HSI in collaboration with the Jefferson County Sheriff’s Office, the Golden Police Department, the FBI, the Durango Police Department and the Arapahoe County Sheriff’s Office.
Delaney was prosecuted by Assistant U.S. Attorney Alecia L. Riewerts.
This matter is part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, PSC coordinates federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit http://www.justice.gov/psc/. For more information about Internet safety education, please visit http://www.justice.gov/psc/resources.html and click on the tab "resources."
Colorado Neurosurgeon and Related Companies Pay $2.35 Million to Resolve Allegations of Illegal KickbacksRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Dr. William Choi and three companies he owned have paid the United States $2.35 million to resolve civil allegations that Dr. Choi received illegal kickbacks from distributors of spinal implant devices that he used in surgeries he performed.
The federal Anti-Kickback Statute makes it generally unlawful for a doctor to solicit or receive money or other remuneration paid to influence the doctor’s health care decisions. This statute protects patients whose medical expenses are paid from federal health care programs (such as Medicare and Medicaid). An unlawful kickback may occur if a doctor receives money or other perks intended to influence that doctor’s health care decisions, such as a referral to another practitioner or a choice of supplies for a surgery.
The United States alleges that Dr. Choi arranged to receive unlawful kickbacks, as follows. Dr. Choi is a neurosurgeon who, among other services, performs spinal surgeries. During the time period relevant to this matter, Dr. Choi performed surgeries at Sky Ridge Medical Center, Castle Rock Adventist and Porter Adventist hospitals. In 2011 and in 2015, Dr. Choi caused the creation of two distributorships of spinal equipment: Nexus Spine, LLC and 4D Spine, LLC. These two distributorships provided spinal implant equipment, such as rods, screws and cages, to hospitals for use in surgeries that Dr. Choi performed. Dr. Choi arranged for third parties to serve as the registered owners of both Nexus and 4D, while he secretly maintained control of both distributorships and the money those distributorships made. Through this arrangement, Dr. Choi solicited and received from Nexus and 4D improper payments and other benefits.
The United States alleges that this conduct violated the federal Anti-Kickback Statute, as well as the federal False Claims Act because these kickbacks meant that false claims for payments were made to federal health care programs – Medicare, Medicaid, and TRICARE. These payments were made for more than five years, from November 1, 2012 through June 30, 2017.
The lawsuit resolved by this settlement was originally filed by Mark Rahe. Mr. Rahe was an employee of Dr. Choi’s medical practice and, later, of distributorship 4D. As such, Mr. Rahe had inside knowledge of the kickback relationships. Mr. Rahe filed a civil action, under seal, in the United States District Court for the District of Colorado, captioned United States ex rel. Mark Rahe v. William Choi et al., No. 17-cv-01208-WJM-NRN (D. Colo.). Under the False Claims Act, private citizens who know about a fraud against the United States may present those allegations to the government by bringing a lawsuit under seal on behalf of the United States. If the government’s investigation substantiates those allegations and the United States obtains a monetary recovery under the False Claims Act, the private citizen may share in that monetary recovery.
“When doctors receive kickbacks, those kickbacks undermine patient trust in our healthcare system, and they also drive up medical costs,” said United States Attorney Jason Dunn. “It is important for patients to know that when a doctor chooses equipment for a surgery, that decision is being made solely on that patient’s best interest, and is not impacted in any way by someone paying a kickback. And it is important for doctors to know that if they get illegal kickbacks, they face serious penalties.”
“In 2013, we issued a Fraud Alert warning of physician owned distributorship schemes. The concern then, as now, is that surgeons would choose the most profitable products from distributorships they controlled and pass the bills to taxpayers,” said Curt L. Muller, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working closely with our law enforcement partners, we will continue protecting the integrity of federal healthcare programs.”
"This settlement highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program known as TRICARE," said DCIS Special Agent in Charge Michael C. Mentavlos. "DCIS aggressively investigates health care providers that defraud the DoD, to preserve American taxpayer dollars intended to care for our warfighters, their family members, and military retirees."
The claims settled by this civil agreement are allegations. In entering into this civil settlement, Dr. Choi did not admit to any liability.
The United States was represented in this matter by Assistant United States Attorney Andrea Wang.
Ute Mountain Ute Man Found Guilty of Violent Sexual and Physical Assault of Wife Following Week-Long Jury TrialRead the Press Release
DURANGO – United States Attorney Jason R. Dunn announced that David Sidney Wells, age 43, of Towaoc, Colorado, was found guilty last week of federal sexual and physical assault charges following a week-long jury trial. Wells appeared at trial in custody and was remanded to the custody of the U.S. Marshals Service at the trial’s conclusion. The FBI and the Bureau of Indian Affairs (BIA) joined in today’s announcement.
Wells was indicted by a federal grand jury on four counts – Aggravated Sexual Abuse, Assault with the Intent to Commit Aggravated Sexual Abuse, Assault Resulting in Serious Bodily Injury and Assault with a Dangerous Weapon. According to court documents, as well as facts presented during trial, on March 9. 2019, Wells assaulted his wife of ten years in their residence on the Ute Mountain Ute Indian Reservation, in Towaoc, Colorado. Wells repeatedly struck his wife in the head with a wooden club, kicked her in the stomach to induce a miscarriage, and punched her in the face. Wells then sexually assaulted her before strangling her to unconsciousness. The victim’s injuries were so severe that she was medically evacuated by airplane to a Lakewood, Colorado hospital.
Following the assault, Wells fled the scene. At the time of the assault, Wells had a warrant for his arrest from a case brought by the State of Colorado for Assault in the Second Degree by Strangulation, as an act of domestic violence, related to an assault against his wife from August of 2018. Additionally, Wells had a prior history of domestic violence convictions in tribal court.
The defendant was indicted on April 5, 2019. He was founded guilty on February 7, 2020, following a jury trial before U.S. District Court Judge Blackburn. Wells is scheduled to be sentenced by Judge Blackburn on June 7, 2020 in Durango, Colorado. Wells faces up to life in prison.
“Sexual assault on the Ute Mountain Ute Reservation will always be vigorously prosecuted by this office,” said U.S. Attorney Jason Dunn. “Wells was responsible for a brutal and violent assault against this victim. He is now facing a significant prison sentence.”
This case was investigated by the Federal Bureau of Investigations (FBI) and the Bureau of Indian Affairs (BIA). The defendant was prosecuted by Assistant U.S. Attorneys Jeff Graves and R. Josh Player.
FusionPharm Co-Conspirators Sentenced for $10+ Million Securities Fraud and Money Laundering SchemeRead the Press Release
DENVER – United States Attorney Jason Dunn announced that co-conspirators Guy M. Jean-Pierre, William Sears, and Scott Dittman, were sentenced to federal prison for their roles in the FusionPharm securities and financial fraud scheme, which cost investors more than ten million dollars. Jean-Pierre, age 60, of the Dominican Republic was sentenced to serve seven years in prison based on his conviction at trial of securities fraud, mail fraud, wire fraud, money laundering, and conspiracy. William Sears, age 53, of Thornton, Colorado was sentenced to a total of eight years in prison for his role in the conspiracy, as well as for tax violations. Scott Dittman, age 50, of Franktown, Colorado was sentenced to five years in prison. All three defendants will serve an additional three years of supervised release at the conclusion of their years of incarceration.
According to information contained in court filings and evidence presented at trial, beginning in late 2010, the defendants sought to establish a business that would retrofit steel shipping containers so that they could be used to grow plants hydroponically. The defendants acquired a dormant publicly traded penny stock company and changed its name to FusionPharm as part of plans to develop and capitalize the business. The main business plan was to resell these repurposed shipping containers, which FusionPharm called “pharm pods,” to hydroponic growers. The pharm pods were, at times, marketed as effective vehicles to get fresh produce, such as lettuce, quickly and efficiently to restaurants and local groceries in urban markets. Over time, however, the pharm pods were marketed to marijuana or cannabis growers in Colorado and other states.
An object of the conspiracy was to conceal the co-conspirators’ role in the management and operation of FusionPharm, due to Sears’ prior securities felony conviction. Sears and Dittman falsely represented that neither Sears nor companies related to him were an affiliate or control person of FusionPharm, thereby allowing Sears’ and the related companies’ FusionPharm shares to be treated as unrestricted securities that could be immediately sold in the public securities markets under the ticker symbol FSPM. Additionally, defendants Sears and Dittman reported to the public that certain sales transactions and revenues for FusionPharm had occurred when, in fact, they had not.
Defendant Jean-Pierre, a graduate of Columbia University Law School, prepared and transmitted documents that allowed FusionPharm to sell stock in violation of securities laws, falsely portrayed deposits of proceeds from the sale of FusionPharm common stock as convertible debt obligations, concealed the role of other co-conspirators in the FusionPharm business, falsely represented that disclosure documents and financial statements constituted adequate current information about FusionPharm, and failed to disclose defendant Jean-Pierre’s role in drafting documents for another attorney to sign and represented as the other attorney’s own work product.
In addition to the sentences announced this week, United States District Court Judge William A. Martinez previously entered preliminary orders of forfeiture in the amount of $12,204,172, based on proceeds and assets the defendants obtained from the scheme.
“Thanks to the tireless work of our prosecutors and law enforcement partners, justice has finally come for the victims of this scheme,” said United States Attorney Jason Dunn. “Prosecuting a complex financial scheme like this is challenging and lengthy, but it is critical that the public have confidence in the markets and that those who commit securities fraud be dealt with harshly.”
"Today’s sentence will hold these individuals accountable for their criminal actions,” said IRS-Criminal Investigation Special Agent in Charge Andy Tsui. “This complex scheme that involved false entity information to defraud investors to purchase their stock for their sole financial gain and evade their tax obligations will not be tolerated. IRS-CI special agents work diligently to identify and bring to justice those who attempt to profit by providing false and misleading information to innocent individuals.”
“The FBI will continue to aggressively investigate illusory schemes devised to exploit innocent victims. The recent sentencings of Guy M. Jean-Pierre, William Sears, and Scott Dittman, should send a strong message to anyone considering engaging in white collar fraud schemes,” said FBI Denver Special Agent in Charge Dean Phillips. “We will continue to work with our law enforcement counterparts and United States Attorney’s Office to protect our citizens and economy from those engaged in white collar crime. We would like to thank the Internal Revenue Service and United State Postal Inspection Service for their partnership and efforts on this case.”
“Securities fraud conducted via the U.S. mail through secret arrangements and altered documents can lead to false trust in the markets. Postal Inspectors will never rest in our fight to prevent criminals from using the mail to further their illegal activities,” said Stephen Sherwood, Acting Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service.
This case was investigated by the FBI, IRS – Criminal Investigation, and United States Postal Inspection Service. Assistant United States Attorneys Jeremy Sibert and Robert Brown handled the prosecution. Assistant United States Attorney Tonya Andrews handled the asset forfeiture issues in this matter.
CASE NUMBER: 17-cr-8 and 16-cr-301
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Con-Man Sentenced to 63 More Months in Federal Prison After Stealing over $1,000,000 from Friends and FamilyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Anthony Bueno, age 45, of Brighton, Colorado, was sentenced to serve 63 months in federal prison, followed by 3 years of supervised release for conspiring with this girlfriend to launder over $1,000,000 taken from friends and family through two separate wire fraud schemes. He was also ordered to pay $1,301,829.16 in restitution to the victims of his crime. This federal prison sentence is consecutive to the 30 month federal prison sentence imposed on the defendant two weeks ago for his role in a separate bribery scheme. Bueno remains in custody. The Denver FBI joined in today’s announcement.
According to court records, including the stipulated facts contained in the defendant’s plea agreement, Anthony Bueno devised and executed two schemes targeting his own family and friends. In one of the schemes — the “surety bond scheme” — Bueno falsely claimed to victims that they could earn returns of up to 2,500% by investing in surety bonds related to government construction projects. To bolster his claims, Bueno provided notarized documents, including one promising an investor that surety bonds purchased for $500,000 were actually worth $18.9 million.
In the other scheme — the “start up scheme” — Bueno preyed on his own family by falsely convincing relatives, including a recent college graduate and her parents, that if they gave him money he could help them start a government contracting business. He later told those same relatives that because he had helped create the contracting business while having his own government contracts, he was under investigation for collusion and needed money to defend himself.
All told, the defendant used lies and deceit to obtain $1,301,829.16, which he laundered through accounts controlled by his girlfriend. He then spent this money on vehicles and personal expenses. He also used a portion of the proceeds to pay restitution he owed as a result of a prior conviction in state court.
“Mr. Bueno is nothing more than a con-man who preyed on family and friends alike,” said U.S. Attorney Jason Dunn. “Others thinking about these scams should heed this sentence and think twice before engaging in such crimes.”
“Today’s sentencing of Anthony Bueno is a great example of the resolve of the FBI and United States Attorney’s Office to prosecute those who utilize fraud schemes for personal gain,” said FBI Denver Special Agent in Charge Dean Phillips. “We will continue to protect our citizens and hold accountable criminals who victimize investors.”
Cara Church Underwood in a separate case pleaded guilty to participating in the same surety bond scheme. Sentencing in that case, pending before the Honorable Robert E. Blackburn, is scheduled for February 27, 2019.
The sentence was pronounced by U.S. District Court Judge William J. Martinez. The case was investigated by the FBI. The defendant is being prosecuted by Assistant United States Attorney Bryan D. Fields.
Indian National Sentenced to 5 Years in Federal Prison for Scamming Victims of over $377,000Read the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Safder Iqbal, age 28, an Indian national, was sentenced to serve 60 months (5 years) in federal prison followed by 3 years on supervised release for participating in several scams involving call centers. Iqbal was also ordered to pay $377,889.35 in restitution to the victims. He was remanded into custody immediately after the sentencing hearing. The Denver FBI joined in today’s announcement.
According to court records, including the stipulated facts contained in the defendant’s plea agreement, Safder Iqbal travelled to the United States from his native country of India in April 2018 to work at a hotel in Colorado Springs through the J-1 visa program. Iqbal then implemented a number of different scams. The first scam involved call centers where he and others falsely notified victims that they had erroneously received, or would receive, a refund for computer tech-support services. Victims were called by India-based call center agents who claimed to work for tech support companies. In many instances, the victims were persuaded to allow the agents to access their computer via remote access software. Once inside the computer, the agents collected information about the victims’ bank accounts, accessed victim bank accounts online, and generated statements falsely claiming the victims had received a deposit when, in fact, they had not.
For example, the defendant opened a bank account that he used to deposit money from an elderly victim that he tricked into providing money to the defendant and others through the refund scam. The victim, was defrauded out of approximately $20,000. Iqbal also took money from another out-of-state victim who was defrauded of $50,000 through a combination of the refund scam and another scam involving tech support.
The tech support scam involved deceiving victims believing that they had a serious computer problem. Sometimes these victims would encounter a “pop up” on their computer while browsing the internet. These pop ups would falsely tell the victim that there was a problem with their computer and would provide a number for tech support. Calls to that number would be answered by an India-based scheme participant. These agents would then offer to diagnose the problem and persuade the victim to provide access to the victim’s computer through remote access software. Once inside the victim’s computer, the agents would use simple commands to make it appear that there was a problem with the computer when, in fact, there was not. The agents would then ask for money to perform tech support services.
Victims of both the refund and tech support scams were directed to pay the participants of the scheme using a variety of means. Some victims were persuaded to purchase gift cards at retail stores and then provide the gift card number directly to the calling agents. Others were told to use a money transfer service to send the money to “receivers” (including defendant Safder Iqbal) with established bank accounts in the United States and elsewhere. Members of the scheme also simply commandeered the victims’ computer, accessed their bank accounts using the internet, and used the illicit access to transfer money. It is estimated that the defendant and others took over $377,000 from their victims.
Court records show that even before coming to the United States to work as a receiver, the defendant had several roles in various India-based fraud schemes. He had previously worked as a call center agent working to defraud victims in the United States and around the world, including in the United Kingdom, Canada, Australia and South Africa. He had also served as a “broker” helping to connect the India-based owners of scam call centers with receivers who could accept money from victims in their native countries. At one point, the defendant used proceeds of the scheme to run his own call center in India.
“Stealing from the elderly and vulnerable is a crime that can threaten the victim’s ability to pay their most basic living expenses,” said U.S. Attorney Jason Dunn. “Prison is an appropriate place for those like this defendant who come to this country for no other reason than to scam people.”
"The FBI is committed to proactively and thoroughly investigating criminal activities that harm our elderly community members," said FBI Special Agent in Charge Dean Phillips. "Thanks to the diligence and perseverance of our investigators, law enforcement partners, and U.S. Attorney's Office, Safder Iqbal will no longer victimize senior citizens with his fraud scheme.”
The prison sentence was pronounced by U.S. District Court Judge William J. Martinez. Co-defendant Danish Rashid, who pleaded guilty in August 2019 to participating in the scheme, is due to be sentenced on February 5, 2020.
Anyone who believes they may be a victim of tele-fraud is encouraged to contact the FTC via this website.
Additional resources providing information about the Department of Justice’s efforts to combat these scams can be found at the website for the Department’s Elder Justice Initiative.
The case was investigated by the Federal Bureau of Investigation (FBI) with substantial assistance from the Thornton Police Department’s Economic Crimes Unit.
The defendant was prosecuted by Assistant United States Attorney Bryan D. Fields.
Two Immigrants, A Pastor, and an Army Sergeant Convicted for Marriage/Immigration SchemeRead the Press Release
DENVER – United States Attorney Jason R. Dunn today announced that four defendants, Rajesh Ramcharan, age 45, Diann Ramcharan, age 37, Sergeant Galima Murry, age 31, and Pastor Ken Harvell, age 60, have been found guilty following a nine-day jury trial for conspiracy to commit marriage fraud and making false statements regarding that fraud to the government. The jury announced the guilty verdicts yesterday, January 16, 2020, after approximately three hours of deliberation. No sentencing date has yet been set. Homeland Security Investigations (HSI), U.S. Citizenship and Immigration Services (USCIS), and Army Criminal Investigations Division (Army CID), joined in the announcement.
According to facts established at trial, the purpose of the conspiracy was to obtain immigration benefits for Rajesh Ramcharan, Diann Ramcharan, and one of their minor children. The Ramcharans, a married couple, came to the United States from Trinidad & Tobago on visitor visas in 2007. They overstayed their visitor visas and settled in Colorado. They then devised a scheme to defeat United States immigration laws and stay in the country illegally.
The scheme had several steps. First, in 2010, the couple was married by Pastor Ken Harvell, who signed a marriage certificate for the Ramcharans. The couple then filed for a divorce. Five days after that divorce was finalized, Pastor Harvell signed a new marriage certificate for Diann Ramcharan and Sergeant Galima Murry. Sergeant Murry is a citizen of the United States and at the time was a soldier at Fort Carson. Diann Ramcharan and Sergeant Murry entered into this marriage for the purpose of evading immigration laws and enabling Diann Ramcharan to stay in the United States. In addition, Sergeant Murry separately obtained military benefits by claiming to be married to Diann Ramcharan. Several years later, in 2015, Rajesh Ramcharan entered into a marriage with Angelica Guevara, who also is a citizen of the United States. Pastor Harvell, whom the jury found knowingly and voluntarily participated in the conspiracy, also signed the marriage certificate between Guevara and Rajesh Ramcharan. During the time of both the Ramcharans’ fraudulent marriages to Murry and Guevara, the Ramcharans lived with each other and otherwise presented themselves to the world as a married couple.
“As the defendants in this case learned, marriage fraud to gain citizenship is a crime,” said U.S. Attorney Jason Dunn. “There are lawful ways for individuals to become citizens of the United States. Those who try to circumvent those laws will be held accountable.”
Each defendant was also convicted for their involvement in the submission of at least one false statement to U.S. immigration authorities as part of the Ramcharans’ attempts to gain lawful immigration status in the United States. Guevara pleaded guilty to the conspiracy and testified at trial about the marriage fraud scheme.
The trial was held before the Honorable David M. Ebel. The defendants were prosecuted by Special Assistant U.S. Attorney Daniel McIntyre and Assistant U.S. Attorney Emily Treaster. This case was investigated by Homeland Security Investigations (HSI), U.S. Citizenship and Immigration Services (USCIS), and Army Criminal Investigations Division (CID), with assistance from the El Paso County Sheriff’s Office.
Colorado Springs Man Convicted of Bank FraudRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Jack V. Smalley, age 70, of Colorado Springs was found guilty following a four-day jury trial for bank fraud related to a mortgage application with the Navy Federal Credit Union. The Department of Defense Criminal Investigative Service, the Internal Revenue Service--Criminal Investigations, and the Air Force Office of Special Investigations join in this announcement.
On June 25, 2015, Smalley submitted a mortgage loan application with the Navy Federal Credit Union indicating that he earned a salary of approximately $200,000 dollars a year. At the time, Smalley knew that wasn’t true. In conducting its due diligence, the Navy Federal Credit Union requested a pay stub that would show Smalley's monthly income, a letter from his employer to verify his employment and salary, and a bank statement to show Smalley’s income deposited into his bank account.
Smalley took steps to falsify the requested information, including falsifying a pay stub and his employment letter. Based on the fraudulent documents, the Navy Federal Credit Union approved Smalley for a $998,000 loan. Smalley defaulted on that loan in 2017. In trying to mitigate his loan, Smalley provided two more fraudulent employment letters in 2018 and 2019. Smalley used the proceeds of the loan to purchase a $1.1 million dollar residence in Colorado Springs. As part of the proceedings in this case, the Court ruled that the residence is subject to forfeiture based on the bank fraud.
“Lying to get a home loan is fraud, and the guilty verdict by the jury who heard this case made that perfectly clear,” said U.S. Attorney Jason Dunn. “Thanks to the hard work of our office and the law enforcement agents investigating this case, Smalley is now a convicted felon facing prison time.”
Smalley is scheduled to be sentenced on April 27, 2020. The case was investigated by the Department of Defense Office of the Inspector General, the Internal Revenue Service—Criminal Investigations and Air Force Office of Criminal Investigations. The trial was before U.S. District Court Judge Daniel D. Domenico. The defendant was prosecuted by Assistant U.S. Attorney Jeremy Sibert.
Brighton Man Sentenced for Failure to File Tax Return and for Fraudulently Concealing Facts Relevant to Social Security Disability PaymentsRead the Press Release
DENVER – Jason R. Dunn today announced that Robert Eugene Hybertson, age 61, of Brighton, Colorado was sentenced to time served, which constitutes approximately 20 months’ imprisonment for failure to file a tax return and for fraudulently concealing facts relevant to Social Security Disability payments. Hybertson will serve 3 years of supervised release. The defendant also agreed to pay restitution to the Social Security Administration (SSA) in the amount of $146,484, file accurate tax returns for all years in which returns are pending, and pay all taxes owed to the IRS as determined by a subsequent civil IRS proceeding. The IRS-Criminal Investigation and Social Security Office of the Inspector General joined in the announcement.
According to the stipulated facts in the plea agreement, Hybertson received a gross income of $887,000 in 2012 but willfully failed to file the required income tax return for that year. The defendant also failed to file tax returns for his income for the years 2010, 2011, and 2013, when he had approximate gross incomes of $241,000, $566,000, and $117,000, respectively. The estimated tax loss for those four years is $828,000, or $1.7 million if penalties and interest are included.
Also, in May 2001, Hybertson began receiving Social Security Disability Insurance (SSDI) benefits. As part of this application, the defendant agreed to notify SSA if the defendant’s medical condition improved enough that he was able to return to work. Starting around 2010, however, Hybertson concealed from SSA the fact that he was receiving the income described above, including by making false statements that he was not working. As a result of his concealment, Hybertson received $146,484 in SSDI benefits to which he was not entitled.
“The defendant avoided paying hundreds of thousands of dollars in taxes and at the same time lied to get money he did not deserve from Social Security Disability Insurance,” said U.S. Attorney Jason Dunn. “Special thanks to the IRS-Criminal Investigation and Social Security Office of the Inspector General who persisted with their investigation to ensure Hybertson was brought to justice.”
“As we enter into tax filing season, today’s sentencing of Robert Hybertson is a timely reminder that the payment of one’s taxes is an obligation, and not a choice,” said Special Agent in Charge Andy Tsui, IRS-Criminal Investigation. “Mr. Hybertson made the decision not to file tax returns when he was legally obligated to do so. He cheated all taxpayers who make an honest effort every year to comply with the US tax laws and pay their fair share.”
“Social Security OIG is committed to protecting the agency’s disability programs from fraud, waste, and abuse,” said Adam Lowder, Acting Special Agent-in-Charge of the SSA OIG’s Denver Field Division. “This individual deliberately concealed his work from Social Security for personal gain for over a decade. We will continue to pursue those who commit disability fraud, and we appreciate the efforts of the U.S. Attorney’s Office to see justice served and recover funds for Social Security.”
The sentencing hearing was before U.S. District Court Judge R. Brook Jackson. The case was investigated by IRS-Criminal Investigation and the Social Security Office of the Inspector General. The defendant was prosecuted by Assistant U.S. Attorneys Rebecca Weber, Emily Treaster, Kelly Churnet, and First Assistant U.S. Attorney Matthew Kirsch.
U.S. Attorney, DEA, Montrose County Sheriff and Montrose Police Chief Announce Major Drug Enforcement ActionRead the Press Release
DENVER – Following a year-long investigation, thirteen Montrose residents were indicted by a federal grand jury in Denver and charged with the drug distribution crimes. State officers, county sheriff deputies and the DEA then arrested eleven of the indicted individuals. The announcement was made by United States Attorney Jason R. Dunn, Drug Enforcement Administration (DEA) Special Agent in Charge Deanne Reuter, Montrose County Sheriff Gene Lillard and Montrose Police Chief Blaine Hall. The arrested defendants were transported to Grand Junction, where they are making their initial appearances before a U.S. Magistrate Judge. At that appearance they will be advised of their rights and the charges pending against them.
According to the indictment, from January 1, 2019 through December 18, 2019, the thirteen defendants, named below, conspired with each other and others known and unknown to the grand jury to distribute and possess with intent to distribute 50 grams or more of actual methamphetamine, 500 grams or more of a mixture of a substance containing a detectable amount of methamphetamine, and less than 100 grams of heroin. If convicted, each defendant faces a minimum of 10 years, and up to life in federal prison.
Those indicted include:
- Omar Briceno-Quijano, age 29 FUGITIVE
- Ofelia Lopez, age 49
- Luis Alberto Ibarra-Tadeo, age 26
- Romeo Lujan, age 28 FUGITIVE
- Angelina Maestas, age 32
- Joseph Davis, age 26
- Naomi Vaughn, age 35
- Jonte LeFlore, age 34
- Dustin Debarris, age 31
- Steven Keith Jones, age 33
- Frank Arroyo, age 44
- Amanda Lee Sumpter, age 49
- Nicole Wickman, age 36
In addition to the conspiracy charges, the defendants face individual counts for the distribution of methamphetamine and heroin. Multiple defendants also face charges of using a communication device, a phone, to facilitate their drug trafficking.
“Montrose law enforcement, working with the DEA, has done an outstanding job identifying those who are trafficking methamphetamine and heroin to members of their community,” said U.S. Attorney Jason Dunn. “It is a high priority of this office to support our rural communities facing large scale drug problems.”
“The DEA recognized the increased availability of methamphetamine in the Montrose area two years ago. We worked closely with the Montrose Police Department, the Montrose Sheriff’s Office and the Seventh Judicial Drug Task Force to target alleged distributors that were identified in the area,” said DEA Special Agent in Charge of the Denver Division Deanne Reuter. “The success of this operation is the result of the strong partnership formed between law enforcement agencies, where all involved are deeply committed to working together to protecting the citizens of Montrose and the surrounding area from scourge of methamphetamine.”
“On behalf of the Montrose County Sheriff’s Office, I would like to commend the DEA for its leadership and assistance with this operation,” said Montrose County Sheriff Gene Lillard. “The amount of drug trafficking that we are experiencing in the County of Montrose has been on the increase over the last decade. The Montrose County Sheriff’s Office has been working and will continue to work proactively to combat the drug issues that are affecting the city and county of Montrose. We are working side by side and will continue to work with the DEA, Montrose Police Department, 7th Judicial Drug Task Force, U.S. Marshal’s Office, ATF, Colorado State Patrol and other state and local agencies. The drug problem in the County of Montrose is directly related to our crime rate of burglaries, thefts, scams and even domestic violence that we deal with on a daily basis. This operation has been a long time coming and we hope to see a ripple effect in the future to stop those who want to be drug dealers in Montrose County.”
“These arrests should communicate that our community suffers from a major drug trafficking issue, and these arrests are critical in keeping our community safe,” said Montrose Police Chief Blaine Hall. “The disruption, apprehension, and prosecution of these offenders is a high priority for the Montrose Police Department, and we value the partnership we have with the Montrose County Sheriff’s Office and the Drug Enforcement Administration. The addition of the DEA gives the City of Montrose new tools to investigate suspected offenders committing drug crimes in our community. I’d like to commend and thank the current 7th Judicial Drug Task Force members, DEA, and the multiple other federal, state, and local agencies for their steadfast work in this multifaceted investigation. Their efforts will have long-term payoffs for our community in the realm of public safety and crime reduction.”
This investigation was conducted by the Denver Division of the DEA, the Montrose County Sheriff’s Office, and the Montrose Police Department, as well as representatives from the 7th Judicial District Attorney’s Office.
The charges contained in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty in a court of law.
Boulder County Woman Pleads Guilty After Stealing More Than $429,000 from Federal GovernmentRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Kathleen McCalib, age 52, of Boulder, pleaded guilty to theft of government funds. McCalib appeared at the change of plea hearing free on bond. Her bond was continued at the conclusion of the hearing. The Inspector General for both the Office of Personnel Management and the Social Security Administration joined in this announcement.
According to the stipulated facts contained in the plea agreement, McCalib’s father died in late 2006. At the time he died, he was receiving both Social Security retirement benefits and a civil service retirement pension from his time as a federal employee. The federal government was not informed of his death, so these payments continued to be deposited each month into a joint account that McCalib held with her father. For about the next twelve years, McCalib continued to spend these funds, frequently forged her deceased father’s signature on checks, including large checks to herself that she wrote, and then endorsed on the back with her own signature. She occasionally paid a home mortgage from the account. By the time law enforcement caught up with her, McCalib had taken and spent $429,454.46 in federal government money to which she was not entitled.
“Accepting Social Security public retirement benefits intended for a person who has died is just like any other theft and will be treated accordingly,” said U.S. Attorney Jason Dunn. “In this case, it’s even worse because the victim is all of us – the taxpayers who fund these programs.”
“Improper payments threaten the financial integrity of the retirement program and the trust fund,” said Thomas W. South, Deputy Assistant Inspector General for Investigations, OPM OIG. “We are grateful for the hard work of our criminal investigators, criminal analysts, and our partners at the Department of Justice. Their diligence helps protect retirees and safeguard taxpayer funds.”
“This guilty plea is a warning to those who misuse Social Security benefits after someone dies,” said Jennifer Walker, Assistant Inspector General for Investigations, Social Security Office of the Inspector General. “This is a Federal crime, one we will continue to vigorously pursue. I want to thank the United States Attorney’s Office for its efforts to bring this individual to justice.”
McCalib was charged on December 19, 2019. Her sentencing hearing is scheduled for April 28, 2020. The guilty plea was entered yesterday, January 14, 2020, before U.S. District Court Judge Raymond P. Moore.
This case was jointly investigated by the Inspector General offices of both the Office of Personnel Management and the Social Security Administration.
Businessman Sentenced to Two-And-A-Half Years Imprisonment for Conspiring to Bribe Veterans Affairs OfficialRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Anthony Bueno, age 45, was sentenced to serve 30 months in federal prison followed by 3 years of supervised release for his role in a conspiracy to bribe a VA official so that clients of his company would gain an unfair advantage in the VA contracting process. Bueno was remanded into custody immediately after the sentencing hearing. The FBI’s Denver Field Office and the Veterans Affairs Office of Inspector General, Criminal Investigations Division, Central Field Office joined in today’s announcement.
According to court records, Bueno and his business partner, Robert Revis, agreed to help an undercover FBI agent, who was posing as a veteran and small business owner, bribe a contracting specialist at the VA’s Network Contracting Office in Colorado, Dwane Nevins. As part of the bribery scheme, Bueno and Revis, working with Nevins, agreed to submit bids from small businesses owned by veterans disabled during military service (one of whom was the undercover FBI agent) under contract with Buenon and Revis’ consulting company so that federal contracts would be set aside for only those companies. As Bueno explained to the undercover agent, the conspirators would then “own all the dogs on the track”, meaning their clients were guaranteed to get the contracts. Bueno, Revis and Nevins worked to conceal the nature of the bribe payments by either kicking back to Nevins a portion of the payments made to the consulting company, or by asking the consulting company’s clients to pay Nevins directly for sham training classes related to federal contracting.
Dwane Nevins, who pleaded guilty in September 2019 to every count of an indictment charging him with this scheme, including counts of conspiracy, receiving bribes, extortion, and criminal conflicts of interests, is scheduled to be sentenced on February 19, 2020. Robert Revis pleaded guilty in April 2019 to an Information charging him with a single count of supplementing the salary of a federal official. His sentencing hearing is scheduled for March 2, 2020. Bueno pleaded guilty on September 17, 2019.
Bueno has also pleaded guilty to conspiring to launder money arising from a completely separate wire fraud scheme in which he used false representations about investment opportunities to take over a million dollars from several victims. Sentencing in that case, pending before United States District Judge William J. Martinez, is scheduled for January 23, 2019.
“Illegally manipulating the government contracting process will result in harsh consequences,” said U.S. Attorney Jason Dunn. “Mr. Bueno will now have more than 2 years in federal prison and a lifetime as a convicted felon to think about the harm he caused taxpayers.”
“As today’s sentencing of Anthony Bueno demonstrates, we will continue to hold accountable those individuals who, at the expense of our veterans and taxpayers, engage in corrupt schemes to defraud the government," said FBI Denver Special Agent in Charge Dean Phillips.
“This sentence illustrates the serious consequences of undermining the federal contracting process,” said Gregg Hirstein, Special Agent in Charge, U.S. Department of Veterans Affairs, Office of Inspector General. “We will always hold accountable those who seek to corrupt the VA’s business practices.”
The case was jointly investigated by the Federal Bureau of Investigation, the U.S. Department of Veterans Affairs Office of Inspector General, with substantial assistance from the U.S. Small Business Administration Office of Inspector General.
The defendant was sentenced by U.S. District Court Judge R. Brooke Jackson and was prosecuted by Assistant United States Attorneys Bryan D. Fields and Hetal J. Doshi.
La Junta Man Sentenced to Serve 19 Years in Federal Prison for Dealing Methamphetamine, Heroin, Cocaine, and Marijuana While Possessing A Firearm During A Drug Trafficking OffenseRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced today that Robert Chad Nolan, age 42, of La Junta, Colorado, was sentenced to serve 228 months (19 years) in federal prison for possessing with intent to distribute methamphetamine, heroin, cocaine, and marijuana as well as possessing a firearm during a drug trafficking offense. Nolan was also ordered to serve 5 years on supervised release after his prison sentence. Nolan appeared at the sentencing hearing in custody, and was remanded at its conclusion. The Denver Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) joined in today’s announcement.
Nolan was first indicted by a federal grand jury on June 21, 2018. He was found guilty of the charges following a three-day jury trial on January 24, 2019.
According to court documents, including the government’s sentencing statement, in early February 2018, Nolan possessed with intent to distribute over 64 grams of methamphetamine, over 10 grams of heroin, over 24 grams of cocaine, and over 800 grams of marijuana. Further, he possessed a .380 caliber pistol while he was trafficking the illegal drugs.
The defendant was a known drug dealer in La Junta for at least 17 years, contributing substantially to this small town’s drug problems. When he was caught by law enforcement, Nolan had between 5,250 and 11,700 personal use doses of narcotics. Nolan was previously twice convicted for drug trafficking. He served 6 years in state prison for the first drug trafficking offense, and he served 8 years in state prison for the second drug trafficking offense.
Notably, Nolan dealt his drugs out of his house, where his kids lived. Some of the drugs were kept on the bathroom counter for all to see. Law enforcement also found $36,000 in cash hidden in grocery bags under the bath tub.
“Taking a drug dealer of this level off the streets in a small town like La Junta is significant,” said U.S. Attorney Jason Dunn. “This guy was particularly egregious. Not only was he causing significant harm to the community, but he was doing it with a weapon and doing it in front of his own children. It is good to get him out of the community and out of his home.”
“Those that endanger the safety and security of our communities will be met by every resource possessed by law enforcement. ATF is proud to have worked with our partners at the La Junta Police Department and the Drug Enforcement Administration on this successful investigation.”
The sentence was handed down by Chief U.S. District Court Judge Philip A. Brimmer. This case was investigated by the Denver Field Division of the ATF, with support from the Denver Division of the DEA, the La Junta Police Department and the Otero County Sheriff. The defendant was prosecuted by Assistant U.S. Attorney Kurt Bohn.
Denver Doctor Justin Neisler Pleads Guilty to Producing Child PornographyRead the Press Release
DENVER – United States Attorney Jason R. Dunn announced that Dr. Justin Neisler, MD, age 31 of Denver, Colorado, pleaded guilty yesterday to the production of child pornography before U.S. District Court Judge Raymond P. Moore. Dr. Neisler appeared at the change of plea hearing in custody and was remanded at the hearing’s conclusion. He is scheduled to be sentenced by Judge Moore on May 22, 2020. The Denver office of the FBI joined in this announcement.
According to the stipulated facts contained in the plea agreement, on November 2, 2018, the Colorado Springs Police Department’s Internet Crimes Against Children (ICAC) Task Force received a tip that child pornography was being uploaded by Dr. Neisler to a social media website. The uploads took place between October 15, 2018 and December 13, 2018. On March 13, 2019, agents and officers executed a search warrant at Dr. Neisler’s residence. During the search, it was determined that Dr. Neisler kept child pornography on his cell phone and on various other electronic media. A later forensic review by the FBI of Dr. Neisler’s electronic devices revealed approximately 6,600 still images and 1,725 videos of child pornography that he had obtained from the Internet.
During the search, Dr. Neisler admitted to investigators that, in his professional capacity, he conducted medical examinations of minors and others. The investigation determined that Dr. Neisler had secretly video recorded a number of these medical exams, while his patients were undressed, without his patients’ knowledge, using a Spy Pen Camera and his iPhone. He would then watch those videos at home for his own sexual gratification. As part of investigating and prosecuting this case, minor victims have been identified and interviewed to make certain that no other hands-on offenses occurred, and that those victims’ needs are addressed, and that the videos of those victims have not been distributed.
“There are few violations of trust worse than when a doctor takes advantage of a child in the exam room for his own sexual gratification,” said U.S. Attorney Jason Dunn. “Thankfully, Dr. Neisler was caught and will never again be in a position to harm children under the guise of helping them.”
“Today’s plea represents the FBI’s dedication to pursuing those that exploit children,” said FBI Denver Special Agent in Charge Dean Phillips. “The identification and apprehension of child predators is a priority for the FBI, and this case should serve as a deterrent to those who utilize their positions of trust in the victimization of children.”
Dr. Neisler faces not less than 15 years and not more than 30 years in federal prison. The defendant is being prosecuted by Assistant U.S. Attorneys Patricia Davies and Alecia Riewerts.
U.S. Attorney's Office Resolves Fair Housing Act Claims Against Snowmass Village Homeowners Association for Refusing to Allow Disabled Resident to Live with Assistance DogRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn announced today that United States District Judge Daniel Domenico has approved an order resolving claims that Creekside Condominium Homeowners Association (Creekside HOA), located in Snowmass Village, Colorado, violated the Fair Housing Act when it failed to allow a resident with a disability to stay at the complex with her assistance dog.
In a complaint filed in federal district court in Colorado last week, the United States alleged that Creekside HOA violated the Fair Housing Act when it repeatedly denied requests by the resident for an exception to the HOA’s “no dogs” policy to permit her to live with her assistance animal, a dog named Tallulah. The resident had experienced anxiety and depression and acquired Tallulah to alleviate the symptoms of her disabilities. The resident requested permission to live with the dog as a reasonable accommodation under the Fair Housing Act, and submitted numerous forms of documentation from mental health and medical professionals in support. Creekside HOA repeatedly denied the requests, which forced the resident to live elsewhere for several months, including spending more than a week living in a van, until Creekside HOA finally agreed to permit the resident to live with her assistance animal at the complex.
The United States further alleged in its complaint that in response to the resident asserting her rights under the Fair Housing Act, Creekside HOA retaliated against the resident by levying a $500 special assessment against each homeowner in the complex and informing homeowners that the reason for the special assessment was the resident’s request for a reasonable accommodation and potential litigation.
To resolve the claims, the United States and Creekside HOA jointly submitted a consent order to the court, which Judge Domenico approved on January 7, 2020. The consent order resolves the claims set forth in the United States’ complaint. Under the terms of the consent order, Creekside HOA must pay the resident $50,000, adopt policies regarding reasonable accommodation for individuals with disabilities under the Fair Housing Act, and train the HOA’s Board of Managers on the requirements of the Fair Housing Act. The HOA also agreed to issue an apology to the resident.
“Housing providers are required by law to make reasonable accommodations for individuals with disabilities,” said U.S. Attorney Jason Dunn. “We are pleased that this HOA is adopting policies and will conduct training that complies with the Fair Housing Act. These are important protections to ensure that individuals with disabilities have equal housing opportunities.”
This lawsuit stems from a complaint that the resident filed with the United States Department of Housing and Urban Development (HUD), which, after an investigation by HUD’s Office of Fair Housing and Equal Opportunity (FHEO), found reasonable cause that discrimination and retaliation had occurred. The resident made an election under the Fair Housing Act to seek to have the Department of Justice, through the U.S. Attorney’s Office, file a complaint on her behalf.
The United States Attorney’s Office for the District of Colorado, the U.S. Department of Justice’s Civil Rights Division, and HUD’s FHEO all give high priority to the enforcement of the Fair Housing Act. Additional information about the Fair Housing Act can be found on HUD’s website at https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview
This case was handled by Assistant U.S. Attorney Zeyen Wu.
Justice Department Announces Settlement with Walmart over Discrimination Claim by Naval ReservistRead the Press Release
WASHINGTON – The Department of Justice announced today the resolution of a lawsuit in which Naval Petty Officer Third Class Lindsey Hunger alleged that Walmart violated her rights when it failed to offer her employment at the Walmart store located at 2545 Rimrock Avenue in Grand Junction, Colorado because of her upcoming Naval Reserve commitments. Ms. Hunger had alleged that Walmart’s actions violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA). The Department of Justice Civil Rights Division and United States Attorney’s Office represented Petty Officer Hunger in the lawsuit.
As part of the settlement, which includes backpay for Petty Officer Hunger, Walmart has agreed to review and revise its employment and internal hiring policies across the corporation. It has also agreed to revise the policies to include the following language: “Walmart prohibits discrimination against individuals, including applicants, based on their military service (including required military training obligations) or membership in the uniformed services.” Walmart will also ensure that “all supervisors, managers, and administrative staff” in the Grand Junction, Colorado store at issue receive training — developed in consultation with the United States —“on the requirements of USERRA and on employees’ and service members’ rights and obligations under the statute."
“Walmart is one of the nation’s largest employers and scores of dedicated servicemembers all across the United States will benefit from this settlement and Walmart’s agreement to update its employment and training practices,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “On behalf of a grateful nation, the Department of Justice will continue aggressively to enforce the federal civil rights laws on behalf of all servicemembers, including the citizen-soldiers of our National Guard and Reserve. Their sacrifice to serve should never jeopardize their ability to earn a living.”
“It is an honor to represent the men and women of our armed forces and ensure that their military training commitments do not deter employers from hiring them,” said U.S. Attorney Jason Dunn for the District of Colorado. “By obtaining Walmart’s agreement to amend its national hiring practices, this case will have a lasting impact.”
This lawsuit stems from a complaint that Ms. Hunger filed with the United States Department of Labor, which, after an investigation by the Department of Labor’s Veterans’ Employment and Training Service, referred the matter to the Department of Justice.
The Justice Department’s Civil Rights Division, the United States Attorney’s Office for the District of Colorado, and the Department of Labor’s Veterans’ Employment and Training Service all give high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
This case is being handled by Assistant U.S. Attorney Zeyen Wu in the U.S. Attorney’s Office for the District of Colorado and Andrew Braniff from the Department of Justice’s Civil Rights Division.
Colorado U.S. Attorney Announces Settlement with Walmart over Discrimination Claim by Naval ReservistRead the Press Release
DENVER – U.S. Attorney Jason R. Dunn and the Department of Justice Civil Rights Division announced today the resolution of a lawsuit in which Naval Petty Officer Third Class Lindsey Hunger alleged that Walmart violated her rights when it failed to offer her employment at the Walmart store located at 2545 Rimrock Avenue in Grand Junction, Colorado because of her upcoming Naval Reserve commitments. Ms. Hunger had alleged that Walmart’s actions violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”). The United States Attorney’s Office represented Petty Officer Hunger in the lawsuit.
As part of the settlement, which includes backpay for Petty Officer Hunger, Walmart has agreed to review its employment and internal hiring policies across the corporation. It has also agreed to revise the policies to include the following language: “Walmart prohibits discrimination against individuals, including applicants, based on their military service (including required military training obligations) or membership in the uniformed services.” Walmart will also ensure that “all supervisors, managers, and administrative staff” in the Grand Junction, Colorado store at issue receive training—developed in consultation with the United States—“on the requirements of USERRA and on employees’ and service members’ rights and obligations under the statute”.
“It is an honor to represent the men and women of our armed forces and ensure that their military training commitments do not deter employers from hiring them,” said U.S. Attorney Jason Dunn. “By obtaining Walmart’s agreement to amend its national hiring practices, this case will have a lasting impact.”
“Walmart is one of the nation’s largest employers and scores of dedicated servicemembers all across the United States will benefit from this settlement and Walmart’s agreement to update its employment and training practices,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “On behalf of a grateful nation, the Department of Justice will continue aggressively to enforce the federal civil rights laws on behalf of all servicemembers, including the citizen-soldiers of our National Guard and Reserve. Their sacrifice to serve should never jeopardize their ability to earn a living.”
This lawsuit stems from a complaint that Ms. Hunger filed with the United States Department of Labor, which, after an investigation by the Department of Labor’s Veterans’ Employment and Training Service, referred the matter to the Department of Justice.
The United States Attorney’s Office for the District of Colorado, the Justice Department’s Civil Rights Division, and the Department of Labor’s Veterans’ Employment and Training Service all give high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
This case is being handled by Assistant U.S. Attorney Zeyen Wu in the U.S. Attorney’s Office for the District of Colorado and Andrew Braniff from the Department of Justice’s Civil Rights Division.