District of Colorado
Press releases recorded for this federal judicial district.
Grand Junction Woman Sentenced to 37 Months for Wire Fraud and Filing False Tax ReturnsRead the Press Release
Denver - The United States Attorney’s Office for the District of Colorado announces Debra Campbell, age 66, of Grand Junction, Colorado, was sentenced today to 37 months in prison and ordered to pay $410,889 in restitution for wire fraud and filing false tax returns.
According to the plea agreement, from 2009 through April 2018, Campbell owned and operated a company called A Better Alternative Management (ABAM), which was hired by homeowners’ associations (HOAs) to manage their finances. Campbell had access to, and signatory authority for, the HOAs’ bank accounts. Campbell collected and deposited payments from HOA members and paid administrative expenses on behalf of the HOAs. Through these management relationships, Campbell became aware of which HOA boards did not monitor their HOA’s bank account and finances. Starting in March 2015, Campbell began making unauthorized transfers to ABAM’s bank accounts from some of the HOAs’ bank accounts and used that money for her personal expenses. Campbell selected HOAs whose boards did not monitor their HOA’s bank account or finances.
In order conceal and perpetuate her theft, Campbell regularly altered the HOAs’ bank statements, so they did not reflect the unauthorized transfers and falsely reflected a higher balance than actually existed in the account. In this manner, between March 2015 and April 2018, Campbell stole more than $250,000 from 23 of her client HOAs.
Campbell also failed to include the income gained from her scheme on her 2014-2017 tax returns, substantially underreporting her income and resulting in a tax loss to the federal government of more than $150,000. Campbell signed and filed these returns knowing that they substantially underreported her taxable income and knowing that she had a legal obligation to report and pay taxes on all of her taxable income.
U.S. District Court Judge Christine M. Arguello sentenced the defendant on November 8, 2022. The prison term will be followed by 3 years of supervised release.
“This defendant wrongfully thought she could line her own pockets with money belonging to her clients who placed their trust in her to manage their finances,” said U.S. Attorney Cole Finegan. “We commend our partners at IRS-CI for their work to hold fraudsters accountable for their actions.”
“Campbell took advantage of her clients and further compounded her greed by attempting to hide her ill-gotten gains from the IRS,” said Andy Tsui, Special Agent in Charge, IRS-CI Denver Field Office. “This sentencing should serve as a reminder to small businesses and HOAs about the importance of having financial safeguards in place to avoid becoming a victim of fraud.”
The investigation in this case was conducted by the Internal Revenue Service-Criminal Investigation. The prosecution was handled by Assistant United States Attorney Pegeen Rhyne.
CASE NUMBER: 21-cr-00113-CMA
Littleton Man Charged with Covid FraudRead the Press Release
DENVER - The United States Attorney’s Office for the District of Colorado announces Lawrence Phillip Hernandez, age 58, of Littleton, was charged by information with wire fraud for taking money, which he received as a result of fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) applications he submitted.
On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provided emergency assistance, administered by the United States Small Business Administration (SBA), to small business owners affected by the Coronavirus (COVID-19) pandemic. The two primary sources of funding for small businesses were the PPP and EIDL program.
According to the information, from March 30, 2020, until March 2021, Hernandez allegedly devised and participated in a scheme to defraud the United States and two lenders and to fraudulently obtain money and property. Hernandez obtained $952,819 in loan and grant proceeds through his scheme to defraud, including more than $636,000 in PPP loans, and $316,800 from the EIDL program. He obtained the loans and grants based on false representations about his businesses’ gross revenues, costs of goods sold, number of employees, payroll costs, and past spending. Hernandez also submitted fabricated tax and financial documents for 2019. Hernandez allegedly used a portion of the funds for personal expenses.
Hernandez was arraigned on November 4, 2022, before Magistrate Judge N. Reid Neureiter.
The charge in the information is an allegation. The Defendant is presumed innocent unless or until proven guilty.
The investigation in this case was conducted by the Federal Bureau of Investigation (FBI) Denver Division, with assistance from the Small Business Administration-Office of Inspector General, in connection with their work on the Colorado-based EIDL Fraud Task Force. The prosecution is being handled by Assistant U.S. Attorneys Craig Fansler and Rebecca Weber.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Case Number: 22-cr-318
Adams County Felon Sentenced to 26.5 Years in Prison for Robbery and Firearms ViolationsRead the Press Release
Denver – The United States Attorney’s Office for the District of Colorado announces a federal judge sentenced David Houston Vargas, age 30, to 26.5 years in prison for his role in robbing two stores using a firearm, and for being a felon in possession of a firearm.
According to facts presented at trial, on November 14, 2020, the defendant committed two armed robberies, one at a Foot Locker store in Lakewood, Colorado, and another at a DSW store in Westminster, Colorado. In both robberies, he brandished a revolver in order for him and his co-defendant to grab merchandise from the stores. The defendant told one store employee something to the effect of, “This is my first time…don’t do anything stupid.” Later that evening, the defendant got into a car chase with an Adams County Sheriff’s Deputy, while his co-defendant in the car he was driving repeatedly fired shots at the deputy using the defendant’s revolver. Vargas was identified and arrested several days later.
The Honorable Judge R. Brooke Jackson presided over the four-day trial. The jury returned its verdict on June 3, 2022. Judge Jackson sentenced the defendant to 26.5 years in prison on November 2, 2022. Co-defendant Kitira Hayes, age 22, of Arvada, was sentenced to 14.75 years in federal prison on March 1, 2022, for her role in the armed robberies and shooting at a law enforcement officer. Taylor Amanda Isaac, age 25, of Lakewood, was sentenced to 4 years of probation on September 16, 2022.
“The defendant showed no regard for the safety of others. He will have a long time behind bars to reflect on how his actions harmed so many people in just a matter of hours,” said U.S. Attorney Cole Finegan. “We appreciate the victims’ willingness to testify, the investigators thorough examination of the evidence, and the jury’s thoughtful deliberations in bringing this defendant to justice.”
“Dangerous criminals too often choose gun violence against law enforcement and innocent people who are simply trying to live their lives responsibly and in peace every day,” said Special Agent in Charge David S. Booth. “ATF will continue to vigorously investigate, apprehend, and pursue the prosecution of those who do.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Lakewood Police Department, the Westminster Police Department, and the Adams County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorneys Celeste Rangel, Melissa Hindman and Elizabeth Young.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case number: 21-cr-00024
Denver Nurse Sentenced After Pleading Guilty to Stealing Fentanyl from Hospital PatientsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Alejandro Gort, 39, of Denver, was sentenced to five years of probation after he earlier pleaded guilty to obtaining a controlled substance by fraud and deception.
According to the plea agreement, the defendant worked the night shift at a Denver hospital on March 3, 2021. He was assigned to care for a critically ill patient admitted to the Sick and Intensive Care Unit following emergency surgery for a head injury. The patient was comatose and intubated when Mr. Gort was assigned to care for him. The defendant initiated a fentanyl drip to treat the patient’s pain, but stole the majority of the bag of fentanyl for his own use, concealing his crime by lowering the drip rate on the IV pump and failing to accurately document the flow rate in the patient’s medical record. He then used this fentanyl at the hospital during his shift. Later during the same shift, the defendant drained a second bag of fentanyl hung for the patient into a cup, then filled the bag with saline to facilitate and conceal the theft. The defendant intended to take the cup of fentanyl for his personal use, but hospital staff interrupted him and escorted him out of the building. According to other staff members, the defendant’s drug use affected his behavior and clinical judgments. There is no evidence that the patient was harmed by the defendant’s act of illegally obtaining the fentanyl. The defendant participated in a voluntary interview with law enforcement agents on March 11, 2021. During that interview, the defendant admitted that he diverted drugs from the hospital between late 2020 and the date the hospital confronted him. He stated he usually obtained fentanyl by falsely identifying the drug as “waste” that was to be discarded, but he kept the drugs for his personal use. He also admitted to using saline to waste fentanyl bags after diverting the fentanyl. The defendant stated he used the drugs at work.
“The defendant knowingly and repeatedly risked patient health for his own selfish interests,” said U.S. Attorney Cole Finegan. “Medical professionals have to be held to the highest standard when caring for critically ill patients. Stealing controlled substances is illegal, and this criminal conduct will be dealt with by facing prosecution under federal law.“
“Patients rely on the knowledge that they will receive FDA-approved medications to manage their conditions,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations, Kansas City Field Office. “When health care professionals tamper with those needed medications, we will pursue and bring them to justice.”
Judge Regina M. Rodriguez sentenced the defendant on October 28, 2022.
This case was investigated by the Food and Drug Administration Office of Criminal Investigations (FDA-OCI).
Case Number: 21-cr-00227.
Colorado Springs Felon Sentenced to 9 Years in Federal Prison for Firearm PossessionRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Jeffrey Scott Taylor, 51, of Colorado Springs, was sentenced to 9 years in federal prison after earlier pleading guilty to being a felon in possession of a firearm.
According to court records, on April 9, 2022, officers with the Colorado Springs Police Department were called to an apartment complex on Tappan Drive in Colorado Springs. Officers spoke with an individual who reported the defendant came to her apartment earlier that evening and said he wanted to show her something. She followed the defendant to his apartment, where he showed her a semi-automatic handgun sitting on his coffee table. Officers applied for, and received a lawful search warrant for the defendant’s apartment. Inside, they recovered a Smith and Wesson .40 caliber pistol from the coffee table in the living room area. The pistol was loaded and contained eight rounds of ammunition, including one in the chamber. In the bedroom closet, officers recovered a Smith and Wesson magazine and two boxes of .40 caliber ammunition. The defendant had been convicted of a felony prior to April 9, 2022, and was aware that he had been convicted of a felony.
Judge Raymond P. Moore sentenced the defendant on October 31, 2022.
“The U.S. Attorney’s Office is committed to violent crime prevention, and taking illegal weapons off the streets is an important part of that,” said U.S. Attorney Cole Finegan. “Under federal law, felons are prohibited from having firearms, and we will hold them accountable when they break the law.”
“Previously convicted felons who continue to unlawfully possess firearms have made the choice to continue to live a high-risk lifestyle which often leads to more violent gun crime in the communities they live and frequent,” said Special Agent in Charge David S. Booth. “We are grateful for the partnership with the Colorado Springs Police Department in this investigation, and to the U.S. Attorney’s Office for a successful prosecution.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Colorado Springs Police Department. Prosecution was handled by the Violent Crime and Immigration Enforcement Section of the U.S. Attorney’s Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case number: 22-cr-00162
U.S. Attorney's Office to Host Protecting Houses of Worship Training SeminarRead the Press Release
FORT COLLINS - The United States Attorney’s Office for the District of Colorado announces it will co-host a Protecting Houses of Worship (PHOW) event in Fort Collins on November 17, 2022. This interfaith event will focus on providing faith-based institutions with information from law enforcement and faith-related security experts about the threats of violence facing houses of worship and responsive measures to counter potential risks.
The location for the event on November 17, 2022 is the Congregation Har Shalom at 725 West Drake Road in Fort Collins. If interested in attending, please RSVP to Jillian Dardani at [email protected].
The U.S. Attorney’s Office plans to co-host roughly four PHOW trainings a year across Colorado. The PHOW programs are interfaith events hosted at a community center, church, mosque, synagogue or other faith-based facility for participation by all interested faith-based organizations in the city or region.
The event in Fort Collins is sponsored by The U.S. Attorney’s Office for the District of Colorado, Community Relations Service, Rocky Mountain Region, and the Fort Collins Police Department.
Aurora Man Sentenced to 23.5 Years in Federal Prison for Shooting Rocky Mountain National Park RangerRead the Press Release
**Updated on November 3, 2022, to include the law enforcement ranger's name, at the request of the National Park Service**
DENVER – The United States Attorney’s Office for the District of Colorado announces Daron Marquel Ellis, 29, of Aurora, was sentenced to 23.5 years in federal prison today after earlier pleading guilty to attempted murder in the second degree of a federal officer and brandishing a firearm during a crime of violence.
According to the plea agreement in the case, Daron Marquel Ellis came to the attention of law enforcement on December 8, 2021, when a Colorado State Patrol trooper attempted to stop a vehicle Ellis was driving on Highway 34 in Larimer County for speeding. Ellis initially stopped the car and got out without being asked to do so. The trooper directed Ellis to get back into the car and discussed the reason for the stop with him. The trooper learned the license plate on the car was stolen. The trooper asked Ellis to get out of the car. At that point, Ellis fled at a high rate of speed up winding mountain roads. The trooper followed the vehicle for a short period of time before ending the pursuit.
Rocky Mountain National Park (RMNP) rangers received information from dispatch about the car involved and that the car may be heading towards RMNP. Law Enforcement Ranger Mitchell Hauptman, who is employed by the National Park Service, was on duty that day, dressed in his standard uniform. He received the information, got in his law enforcement patrol vehicle and waited in the vicinity of Fall River entrance to RMNP.
At approximately 10:15 a.m., Ranger Hauptman saw a vehicle matching the suspect vehicle description enter RMNP. As soon as he recognized the car, he activated his emergency lights. By that point, the defendant’s vehicle attempted to evade the ranger by driving on the shoulder of the road and came to a stop after hitting several boulders that were just inside the boundary of RMNP.
When Ranger Hauptman got out of his marked law enforcement vehicle, he pulled his duty pistol and ordered the occupants of the car to show their hands. At that time, without provocation, Ellis began firing at Ranger Hauptman using a 9mm semiautomatic handgun. Ellis shot Ranger Hauptman on the left side of his torso in an area protected by the ranger's ballistics vest. The Federal Bureau of Investigation’s Evidence Response Team subsequently determined that a bullet entered the rear driver’s side column of the ranger’s vehicle in the same location where the ranger moved to take cover. Ellis fired multiple rounds at Ranger Hauptman and remained in the car the entire time he was shooting at the ranger. Ranger Hauptman returned fire when he knew his life was in danger and hit Ellis. Ellis eventually surrendered and was taken into custody. Ranger Hauptman had a bruise approximately 10 inches in diameter on the left side of his chest where he was shot.
“To shoot at and try to kill a peace officer is a particularly egregious crime that will be punished with significant time in federal prison,” said U.S. Attorney Cole Finegan. “We wish the National Park Service ranger the very best as he continues his recovery from this incident.”
“Any assault on a federal officer warrants FBI attention, and personnel from FBI Denver were immediately dispatched to this incident in Rocky Mountain National Park,” said FBI Denver Acting Special Agent in Charge Matthew Fodor. “The National Park Service ranger performed his duties admirably and courageously as the gunman attacked. We are proud to assist in this prosecution and see this assailant receive justice.”
According to Rocky Mountain National Park Superintendent Darla Sidles, “Today’s sentencing brings important resolution to the attempted murder of one of our valued law enforcement rangers at Rocky Mountain National Park and allows us to focus on healing. We owe a great debt of gratitude to Ranger Hauptman and all National Park Service law enforcement rangers who sometimes must contend with serious crimes that do not stop at the park boundary. We express our deep appreciation to all who were involved with the investigation and securing this conviction including NPS rangers, the NPS Investigative Services Branch, the FBI, the Estes Park Police Department, the Larimer County Sheriff’s Office and the team of prosecuting attorneys.”
Judge Raymond P. Moore sentenced Ellis on October 31, 2022. He also sentenced Ellis to 5 years of supervised release.
The Federal Bureau of Investigation (FBI) Denver Division and the National Park Service investigated this case. Prosecution was handled by the Violent Crime and Immigration Enforcement Section of the U.S. Attorney’s Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case Number: 22-cr-00006
Denver Man Convicted of Drug and Weapons ChargesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces a federal jury today found Juleus Judkins, 29, of Denver, guilty of possessing a firearm in furtherance of a drug trafficking crime, possession with intent to distribute less than 50 kilograms of marijuana, and possession with intent to distribute methamphetamine.
According to facts presented at trial, on September 4, 2020, when Aurora Police officers attempted to arrest Judkins on outstanding warrants, he fled from his vehicle on foot, but was immediately apprehended. After seeing a firearm within his vehicle, officers searched his car and found baggies of marijuana and methamphetamine pills, as well as a scale and empty baggies. There was a loaded .380 pistol under his seat. Officers also found $1900 in cash and two cell phones full of drug dealing messages.
William J. Martinez presided over the four-day trial and set a sentencing hearing for June 7, 2023.
The Aurora Police Department, Denver Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant United States Attorneys Celeste Rangel and Cyrus Chung prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case Number: 21-cr-00055
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For more information about the U.S. Attorney's Office for the District of Colorado, visit: https://www.justice.gov/usao-co/pr
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Idaho Springs Man Indicted for Million Dollar PPP Fraud SchemeRead the Press Release
Denver - The United States Attorney’s Office for the District of Colorado announces Edward Baker Harrington, age 59, of Idaho Springs, was arrested after being indicted by a federal grand jury for wire fraud and money laundering.
According to the indictment, from April 2020 through September 2021, the defendant submitted a number of fraudulent Paycheck Protection Program, (PPP), applications to seven banks and one lender on behalf of business entities that he purportedly controlled. These PPP applications contained a number of false and fraudulent certifications and representations. The defendant obtained more than $1,000,000 in PPP loans as a result of the scheme. He falsely represented that all PPP funds would be used to pay eligible business expenses, when, in fact, the proceeds were used for his personal benefit to purchase goods and property, including real estate and vehicles. The defendant also sought loan forgiveness for PPP loans by submitting loan forgiveness applications in which he made false representations and certifications regarding his businesses and his compliance with the PPP program rules, including rules related to the eligible uses of PPP loan proceeds.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020 and was designed to provide emergency financial assistance to Americans dealing with the economic impact of the COVID-19 pandemic. The CARES Act created PPP, a program administered by the Small Business Administration that provided loans to small businesses to retain workers, maintain payroll, and certain other expenses consistent with PPP rules.
The defendant made his initial appearance before Magistrate Judge James O’Hara today. The charges contained in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by Internal Revenue Service – Criminal Investigation. This case is being prosecuted by Assistant United States Attorneys Nicole Cassidy and Martha Paluch.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Case Number: 22-cr-00324
United States Attorney Cole Finegan Designates District Election Officer for November 2022 General ElectionRead the Press Release
DENVER -- United States Attorney Cole Finegan announced today that Assistant United States Attorney (AUSA) Cyrus Y. Chung will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. AUSA Chung has been appointed to serve as the District Election Officer (DEO) for the District of Colorado, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.
United States Attorney Finegan said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
“Ensuring free and fair elections depends in large part on the assistance of the American electorate,” said U.S. Attorney Finegan. “In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Chung will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (303) 454-0159.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (303) 629-7171.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
Honduran National Sentenced to Federal Prison for Fentanyl DistributionRead the Press Release
DENVER- The United States Attorney’s Office for the District of Colorado announces Hector Aquino-Torres, 26, of Denver, was sentenced to 84 months in federal prison for distribution and possession with intent to distribute fentanyl.
According to Court records, Aquino-Torres posted bond and was released from state custody on January 29, 2022, after having been arrested on state drug and firearm charges. Detectives with the Denver Police Department were aware that the defendant had been released. On February 8, 2022, an undercover officer arranged to purchase 200 fentanyl pills from the defendant. The two met at a motel in Aurora, where the defendant sold the pills to the undercover officer and they spoke about doing a larger 1,000 pill deal in the future. On February 14, 2022, the undercover officer reached out to the defendant and arranged to purchase 1,000 fentanyl pills for $2,500. The two agreed to meet at a 7-11 store in Denver. The defendant arrived and went into the store, where he was contacted and arrested. Officers found approximately 1,000 fentanyl pills in his pocket. A federal grand jury returned an indictment February 24, 2022.
Judge Raymond P. Moore sentenced the defendant on October 24, 2022. After his custodial sentence, the defendant will serve 4 years on supervised release.
"With fentanyl poisoning so many people, we will use the federal law to go after the drug dealers and drug traffickers who bring this deadly drug into our neighborhoods, especially repeat offenders,” said U.S. Attorney Cole Finegan. “We are committed to working with our state and federal law enforcement partners to combat the rising tide of this deadly substance.”
“The number of drug-related deaths is exploding in Colorado and the rest of the country due in large part to fentanyl being imported by drug cartels,” said Ryan L. Spradlin, Special Agent in Charge, HSI Denver. “HSI will continue to relentlessly work with Congress and all of our law enforcement partners to pursue every tool available to bring individuals like Aquino to justice.”
“Every counterfeit fentanyl pill and every fentanyl dealer we remove from our streets could potentially save lives in our community, so we will continue prioritizing enforcement against the distribution of dangerous, illegal narcotics in our neighborhoods,” said Denver Police Chief Ron Thomas.
This case was investigated by the Denver Police Department and Homeland Security Investigations, Denver. Assistant United States Attorney S. Zeke Knox handled the prosecution with assistance from the Denver District Attorney’s Office.
Case Number: 22-cr-00072.
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For more information about the U.S. Attorney's Office for the District of Colorado, visit: https://www.justice.gov/usao-co/pr
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Durango Business Owners Plead Guilty to Federal Income Tax EvasionRead the Press Release
Durango - The U.S. Attorney’s Office for the District of Colorado announced that Kenneth and Suzanne Fusco of Durango, Colorado pleaded guilty to federal income tax evasion on October 13, 2022.
According to the plea agreement, the defendants jointly operated a restaurant in downtown Durango, Colorado. During the tax years 2014 through 2019, the defendants willfully overstated their business expenses to reduce their tax liability. Specifically, the defendants categorized personal expenses as “customer supplies” on their accounting software, which was then transmitted to tax professionals to be filed with the Internal Revenue Service. The couple also provided a signed statement to their tax professionals indicating that the information they were providing was “complete and correct to the best of our knowledge,” when in fact the defendants knew they were not providing accurate information and had unreported business income totaling $933,586. This resulted in a tax loss to the government of $160,536.
The Fuscos face a prison sentence ranging from 12 to 41 months, restitution in the amount of $160,536, and a fine of $5,500 to $55,000, plus interest and penalties. A sentencing hearing is scheduled for February 6, 2023.
This case was investigated by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Nikki Cassidy and Jeffrey Graves handled the prosecution.
Case Number: 22-cr-00311-REB-JMC
U.S. Attorney’s Office Announces over $1 Million in Justice Department Grants to Ute Mountain Ute TribeRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announced grant awards of $1,194,246.00 to the Ute Mountain Ute Tribe in Towaoc, Colorado, to fund community projects and improve services for victims of crimes. The awards are administered through the Office of Justice Programs (OJP) at the Department of Justice.
“Our partnership with tribal leaders to strengthen public safety, improve victim services, and sustain crime prevention and intervention efforts is a key objective for our office, and funding programs that support victims and promote public safety is a priority”, said U.S. Attorney for the District of Colorado Cole Finegan. “The U.S. Attorney’s Office remains committed to making tribal communities safer and ensuring access to justice for all.”
OJP’s Bureau of Justice Assistance (BJA) awarded the Ute Mountain Ute Tribe $784,000.00 under the Byrne Discretionary Community Project Funding/Byrne Discretionary Grants Program to establish a law enforcement presence in the White Mesa community in Utah. The White Mesa officers will lead the Community Response Team to address suicide prevention, domestic violence, human trafficking, child abuse, and substance use challenges, and offer quarterly awareness and education events for the public. These funds will support benefits and salaries for the officers, support the purchase of patrol vehicles, officer uniforms, and gear.
OJP’s Office for Victims of Crime (OVC) awarded the Ute Mountain Ute Tribe $410,246.00 under the Tribal Victim Services Set-Aside Formula Grant Program, part of more than $246 million in grants to American Indian and Alaska Native communities to improve public safety and serve crime victims. The program is open only to federally recognized Indian tribes and is administered via a formula. The Ute Mountain Ute Tribe will use the award to implement services for victims of crime that meet needs identified by the community and reflect tribal community values and traditions.
More information about OJP and its components can be found at www.ojp.gov.
Moffat Man Pleads Guilty to Setting Fire to United States Post OfficeRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced Donald Albert Renner, 71, of Moffat, pleaded guilty to willfully injuring property of the United States, a felony.
According to the plea agreement, in the early morning of July 16, 2021, the defendant used gasoline as an accelerant to start a fire outside of the Moffat Post Office, located at 17363 Highway 17, in Moffat, Colorado. Evidence of fire (smoke damage and/or thermal damage) from that fire was discovered on the exterior of the post office, inside the post office, inside a blue collection box near the entrance of the post office, and on the concrete area in front of the post office. Fire investigators recovered two carpet samples from in the interior of the post office and one sample from a mat outside the post office that contained gasoline. The fire caused approximately $12,000 of total damage.
Judge William J. Martinez presided over the change of plea hearing and set sentencing for April 26, 2023.
This case was jointly investigated by the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Saguache County Sheriff’s Office. The prosecution is being handled by Assistant U.S. Attorney Albert Buchman.
Case Number: 22-cr-00074
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Denver Man Found Guilty of Drug and Weapons ChargesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces a federal jury convicted Scott Lowe, 38, of Denver, of possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon.
According to facts presented at trial, in February of 2020, Lowe was discovered in possession of 24.7 grams of methamphetamine, along with a loaded semiautomatic pistol, scales, and other items used to traffic narcotics, in a storage unit within his apartment complex. At the time, Lowe was under the supervision of the United States District Court of Colorado Probation Office for a separate violation of law, and was hiding the contraband in storage unit to avoid detection from probation officers.
Judge William J. Martinez presided over the three day trial. The jury returned its verdict on October 13, 2022. Lowe will be sentenced on May 3, 2023.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case, along with the Denver Police Department. The prosecution was handled by Assistant United States Attorneys Tom Minser and Conor Flanigan.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case Number: 20-cr-326
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For more information about the U.S. Attorney's Office for the District of Colorado, visit: https://www.justice.gov/usao-co/pr
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Aurora Man Indicted for Making False Statements to Licensed Firearms DealersRead the Press Release
DENVER- The United States Attorney’s Office for the District of Colorado announces Jordan James Martinez, 24, of Aurora, was indicted by a federal grand jury for making false statements to purchase firearms for other individuals from licensed dealers.
According to the indictment, from June 2019 through April 2022, the defendant knowingly made false and fictitious oral and written statements to several licensed firearms dealers, representing he was the actual transferee and buyer of the firearms, when in fact, as the defendant then knew, he was not the actual transferee and buyer of the firearms.
Martinez made his initial appearance before Magistrate Judge S. Kato Crews on October 14, 2022.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Aurora Police Department. The prosecution is being handled by Assistant United States Attorney Kelly Churnet.
The charges contained in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
Case Number: 22-cr-306
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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For more information about the U.S. Attorney's Office for the District of Colorado, visit: https://www.justice.gov/usao-co/pr
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U.S. Attorney's Office Announces Justice Department Grant to Support Project Safe NeighborhoodsRead the Press Release
DENVER – The U.S. Attorney's Office for the District of Colorado announced today that the Department of Justice has awarded $288,791 to support the Project Safe Neighborhoods Program in Colorado. Funding will support community efforts to address the epidemic of gun crime and serious violence in the district. The grant, to the Colorado Department of Public Safety, is one of a number of awards being made to state and local agencies across the country. Funds are administered by the Bureau of Justice Assistance, part of the Department’s Office of Justice Programs.
Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the Department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key principles: fostering trust and legitimacy in our communities; supporting community-based organizations that help prevent violence from occurring in the first place; setting focused and strategic enforcement priorities; and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
“With gun violence soaring, this funding could not come at a better time. Our goal is to combine federal resources with strategic enforcement from our state and local partners to reduce gun violence in our communities that are most troubled by violent crime,” said U.S. Attorney Cole Finegan.
“Reducing violence and sustaining those reductions will require strong partnerships between criminal justice agencies and community stakeholders and a shared commitment to the safety and well-being of every community member,” said OJP Deputy Assistant Attorney General Maureen Henneberg. “The investments we are making through Project Safe Neighborhoods will enable every stakeholder to play a part in building safer and healthier communities.”
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
“Over its two-decade history, Project Safe Neighborhoods has evolved to meet the complex challenges of community violence by enlisting the insights and expertise of local partners and by relying on the latest evidence,” said BJA Director Karhlton F. Moore. “We are proud to support our U.S. Attorneys and their allies in their critical work to curb violent crime and build the mutual trust necessary to ensure lasting success.”
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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Boulder County Veterinarian Indicted for Fentanyl FraudRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Lindsay Oklesh, 37, of Boulder County has been indicted by a federal grand jury for fraudulently obtaining fentanyl, which is a controlled substance.
According to the indictment, between March 10, 2020 and September 22, 2021, Oklesh, a doctor of veterinary medicine, utilized her Drug Enforcement Administration (DEA) registration number to purchase controlled substances from a distributor while misrepresenting that they were for the use of legitimate veterinary patients, rather than for her personal use.
Oklesh made her initial appearance before Magistrate Judge S. Kato Crews on October 11, 2022.
This case was investigated by the Drug Enforcement Administration. The prosecution is being handled by Assistant United States Attorney Alyssa Mance.
The charges contained in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
Case Number: 22-cr-316
Aurora Man Indicted for Weapons ViolationsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Jeremy Lavon Tate, age 27, of Aurora, Colorado, was indicted by a federal grand jury for possession of a firearm and ammunition by a prohibited person and possession of a machinegun.
According a previously filed criminal complaint, Tate was arrested at Children’s Hospital in Aurora on September 24, 2022, while in possession of a pistol loaded with a round in the chamber. Aurora police officers took possession of the firearm and noted it to have what appeared to be an auto-convertor switch affixed to the rear of the pistol, which would allow the firearm to operate in a fully automatic capacity. A high-capacity magazine containing an additional 17 rounds was inserted in the firearm. Investigators also learned Tate is a previously convicted felon.
The defendant was arraigned by Magistrate Judge N. Reid Neureiter on October 6, 2022. Judge Neureiter ordered him to be detained.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Aurora Police Department. Prosecution is being handled by Assistant United States Attorney Brian Dunn.
The charges contained in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
Case Number: 22-cr-00301
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Man Sentenced to Prison for Threatening Election OfficialRead the Press Release
A Nebraska man was sentenced today to 18 months in prison for making multiple threatening posts on an Instagram page associated with an election official.
“This sentence makes clear that those who illegally threaten election workers should be prepared to face meaningful penalties,” said Attorney General Merrick B. Garland. “The Justice Department will not hesitate to hold accountable those whose illegal threats of violence endanger the public servants who administer our elections.”
According to court documents, Travis Ford, 42, of Lincoln, issued threats to an election official, including: “Do you feel safe? You shouldn’t. Do you think Soros will/can protect you?” and “Your security detail is far too thin and incompetent to protect you. This world is unpredictable these days….anything can happen to anyone.” Ford also posted similar messages on Instagram pages associated with the President of the United States and with another public figure.
“Make no mistake, threatening election officials is a serious attack on our democratic process,” said FBI Director Christopher Wray. “Today's sentence proves that the FBI and our partners will stand up to anyone who attempts to intimidate election workers for doing their jobs. The American voting system is secure and we are dedicated to ensuring it stays that way.”
The FBI Denver Field Office investigated the case, with the assistance of the FBI Omaha Field Office.
Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Tessie L. Smith for the District of Nebraska prosecuted the case. Former Assistant U.S. Attorney Aaron M. Teitelbaum and Assistant U.S. Attorney Cyrus Y. Chung for the District of Colorado provided substantial assistance.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Garland and launched by Deputy Attorney General Lisa O. Monaco in June 2021, the Task Force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The Task Force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI field offices and U.S. Attorneys’ Offices throughout the country. A year after its formation, the Task Force is continuing this work and supporting the United States Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the Task Force has begun.
Under the leadership of Deputy Attorney General Monaco, the Task Force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Department of Justice, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found here: https://www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at: tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
Man Sentenced to Prison for Threatening Election OfficialRead the Press Release
DENVER – A Nebraska man was sentenced today to 18 months in prison for making multiple threatening posts on an Instagram page associated with an election official.
“This sentence makes clear that those who illegally threaten election workers should be prepared to face meaningful penalties,” said Attorney General Merrick B. Garland. “The Justice Department will not hesitate to hold accountable those whose illegal threats of violence endanger the public servants who administer our elections.”
According to court documents, Travis Ford, 42, of Lincoln, issued threats to an election official, including: “Do you feel safe? You shouldn’t. Do you think Soros will/can protect you?” and “Your security detail is far too thin and incompetent to protect you. This world is unpredictable these days….anything can happen to anyone.” Ford also posted similar messages on Instagram pages associated with the President of the United States and with another public figure.
“Make no mistake, threatening election officials is a serious attack on our democratic process,” said FBI Director Christopher Wray. “Today's sentence proves that the FBI and our partners will stand up to anyone who attempts to intimidate election workers for doing their jobs. The American voting system is secure and we are dedicated to ensuring it stays that way.”
The FBI Denver Field Office investigated the case, with the assistance of the FBI Omaha Field Office.
“This prison sentence sends a clear message to anyone who thinks hiding behind a computer screen will allow them to get away with posting threatening messages on social media,” said First Assistant U.S. Attorney Matt Kirsch of the District of Colorado. “We will not tolerate threats against election officials.”“
The U.S. Attorney’s Office for the District of Nebraska hopes that today’s sentence will deter others from using social media to threaten violence against others, especially those who are tasked with the upholding the integrity of our Nation’s elections process,” said Acting U.S. Attorney Steven A. Russell of the District of Nebraska. “This office is appreciative of the collective effort of the Denver Office of the FBI, the U.S. Attorney’s Office for the District of Colorado, and the Justice Department’s Criminal Division in the investigation and prosecution of this matter.”
Trial Attorney Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Tessie L. Smith for the District of Nebraska prosecuted the case. Former Assistant U.S. Attorney Aaron M. Teitelbaum and Assistant U.S. Attorney Cyrus Y. Chung for the District of Colorado provided substantial assistance.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Garland and launched by Deputy Attorney General Lisa O. Monaco in June 2021, the Task Force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers — whether elected, appointed, or volunteer — are able to do their jobs free from threats and intimidation. The Task Force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI field offices and U.S. Attorneys’ Offices throughout the country. A year after its formation, the Task Force is continuing this work and supporting the United States Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the Task Force has begun.
Under the leadership of Deputy Attorney General Monaco, the Task Force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Department of Justice, including the Computer Crime and Intellectual Property Section of the Criminal Division, the Civil Rights Division, the National Security Division, and the FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found here: https://www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at: tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
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Case Number: 22-1073
The U.S. Attorney’s Office for the District of Colorado Takes Part in Justice Department’s Wide-Ranging Efforts to Protect Older AdultsRead the Press Release
DENVER – The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation. During the past year, the Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.
“We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”
During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged. This past year, the U.S. Attorney's Office for the District of Colorado secured an order for more than $880,000 in restitution against two defendants who perpetrated a lottery scam on an elderly woman residing Estes Park, Colorado. The first defendant was convicted following a jury trial and received a sentence of 108 months in prison. The second defendant was extradited from his home country of Jamaica, elected to plead guilty, and received a sentence of 63 months in prison.
Additionally, this Office helped an elderly Arapahoe County resident recover $22,000 from an investment loan scheme. The defendant in that case was on federal probation after scamming an elderly victim in Oregon out of almost $3 million dollars and gambling all of the victim’s funds away. This year, the defendant pled guilty to violating his probation, including by engaging in gambling and by obtaining the unauthorized loans from the Arapahoe County victim. He was sentenced in an additional 12 months of prison and a further two years of probation.
The Office also charged three individuals with conspiracy to commit money laundering, money laundering, and interstate transmission of a threatening communication, in case which alleges that the defendants told the victims that their identities had been connected to a criminal incident and threatened them with arrest and/or deportation if they failed to pay the “Government” large sums of money, as instructed. That case is ongoing.
As part of the Office’s elder fraud efforts, it engages in outreach to the community and industry to raise awareness about scams and exploitation and preventing victimization. This year, the District of Colorado is disseminating a public safety awareness video on grandparent scams, which are on the rise in this state and across the country.
The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams.
The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.
In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 160,000 of those victims cashed checks totaling $62 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.
Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.
Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m.[ET]. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.
Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Video news release on Grandparents Scam Warning: https://youtu.be/7PNeN1qWYb4
Former NSA Employee Arrested on Espionage-Related ChargesRead the Press Release
DENVER – A Colorado Springs man will make his initial appearance in federal court today on charges that he attempted to transmit classified National Defense Information (NDI) to a representative of a foreign government.
Jareh Sebastian Dalke, 30, was an employee of the National Security Agency (NSA) where he served as an Information Systems Security Designer from June 6, 2022, to July 1, 2022. According to the affidavit in support of the criminal complaint, between August and September 2022, Dalke used an encrypted email account to transmit excerpts of three classified documents he had obtained during his employment to an individual Dalke believed to be working for a foreign government. In actuality, that person was an undercover FBI agent. Dalke subsequently arranged to transfer additional classified information in his possession to the undercover FBI agent at a location in Denver, Colorado. The FBI arrested Dalke on Sept. 28, after Dalke arrived at the specified location.
According to the affidavit in support of the criminal complaint, Dalke began communicating on or about July 29, 2022, via encrypted email with an individual he believed to be associated with a foreign government. Dalke told that individual that he had taken highly sensitive information relating to foreign targeting of U.S. systems, and information on U.S. cyber operations, among other topics. Dalke represented to the undercover FBI agent that he was still employed by the U.S. government but said he was on a temporary assignment at a field location. Dalke requested compensation via a specific type of cryptocurrency in exchange for the information he possessed and stated that he was in financial need.
To prove he had access to sensitive information, Dalke transmitted excerpts of three classified documents to the undercover FBI agent. Each excerpt contained classification markings. One excerpt was classified at the Secret level, and two excerpts were classified at the Top Secret level. In return for this information, the FBI undercover agent provided the requested cryptocurrency to an address Dalke provided.
On or about Aug. 26, 2022, Dalke requested $85,000 in return for additional information in his possession. Dalke also told the FBI undercover that he would share additional information in the future, once he returned to the Washington, D.C., area. Although he was not employed by the NSA while communicating with the FBI, Dalke re-applied to the NSA in August 2022.
Dalke agreed to transmit additional information using a secure connection set up by the FBI at a public location in Denver. On Sept. 28, at that location, the FBI arrested Dalke based on a signed criminal complaint.
Dalke is charged by criminal complaint alleging three violations of the Espionage Act, which makes it a crime to transmit or attempt to transmit NDI to a representative of a foreign nation with intent or reason to believe that information could be used to the injury of the United States or to the advantage of a foreign nation. The Espionage Act carries a potential sentence of death or any term of years up to life.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; U.S. Attorney Cole Finegan for the District of Colorado; and Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division made the announcement.
Assistant U.S. Attorneys Julia K. Martinez and Jena R. Neuscheler of the District of Colorado, and Trial Attorneys Christina A. Clark and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section are prosecuting on behalf of the government. The case is being investigated by the FBI Denver Field Office and the FBI Washington Field Office.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former NSA Employee Arrested on Espionage-Related ChargesRead the Press Release
A Colorado Springs man will make his initial appearance in federal court today on charges that he attempted to transmit classified National Defense Information (NDI) to a representative of a foreign government.
Jareh Sebastian Dalke, 30, was an employee of the National Security Agency (NSA) where he served as an Information Systems Security Designer from June 6, 2022, to July 1, 2022. According to the affidavit in support of the criminal complaint, between August and September 2022, Dalke used an encrypted email account to transmit excerpts of three classified documents he had obtained during his employment to an individual Dalke believed to be working for a foreign government. In actuality, that person was an undercover FBI agent. Dalke subsequently arranged to transfer additional classified information in his possession to the undercover FBI agent at a location in Denver, Colorado. The FBI arrested Dalke on Sept. 28, after Dalke arrived at the specified location.
According to the affidavit in support of the criminal complaint, Dalke began communicating on or about July 29, 2022, via encrypted email with an individual he believed to be associated with a foreign government. Dalke told that individual that he had taken highly sensitive information relating to foreign targeting of U.S. systems and information on U.S. cyber operations, among other topics. Dalke represented to the undercover FBI agent that he was still employed by the U.S. government but said he was on a temporary assignment at a field location. Dalke requested compensation via a specific type of cryptocurrency in exchange for the information he possessed and stated that he was in financial need.
To prove he had access to sensitive information, Dalke transmitted excerpts of three classified documents to the undercover FBI agent. Each excerpt contained classification markings. One excerpt was classified at the Secret level, and two excerpts were classified at the Top Secret level. In return for this information, the FBI undercover agent provided the requested cryptocurrency to an address Dalke provided.
On or about Aug. 26, 2022, Dalke requested $85,000 in return for additional information in his possession. Dalke also told the FBI undercover agent that he would share additional information in the future, once he returned to the Washington, D.C., area. Although he was not employed by the NSA while communicating with the FBI, Dalke re-applied to the NSA in August 2022.
Dalke agreed to transmit additional information using a secure connection set up by the FBI at a public location in Denver. On Sept. 28, at that location, the FBI arrested Dalke based on a signed criminal complaint.
Dalke is charged by criminal complaint alleging three violations of the Espionage Act, which makes it a crime to transmit or attempt to transmit NDI to a representative of a foreign nation with intent or reason to believe that information could be used to the injury of the United States or to the advantage of a foreign nation. The Espionage Act carries a potential sentence of death or any term of years up to life.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; U.S. Attorney Cole Finegan for the District of Colorado; Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division; Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office and Acting Special Agent in Charge Cheryl Mimura of the FBI Denver Field Office made the announcement.
Assistant U.S. Attorneys Julia K. Martinez and Jena R. Neuscheler for the District of Colorado, and Trial Attorneys Christina A. Clark and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section are prosecuting on behalf of the government. The case is being investigated by the FBI Denver Field Office and the FBI Washington Field Office.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Colorado Man Sentenced to 30 Months in Prison for Actions During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON — A Colorado man was sentenced today to 30 months in prison for his actions during the breach of the U.S. Capitol on Jan. 6, 2021. His and others’ actions disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.
Thomas Patrick Hamner, 49, of Peyton, Colorado, was sentenced in the District of Columbia.
According to court documents, on Jan. 6, 2021, Hamner illegally entered the West Lawn of the U.S. Capitol, which was barricaded with fencing. Upon seeing rioters break through the police line, Hamner hopped over the barricades and began pulling them down. At approximately 1 p.m., a crowd of violent rioters assembled on the West Plaza of the Capitol. U.S. Capitol Police formed a line of bike racks to act as a barrier against the crowd. Officers fended off repeated attempts by those in the mob to pull on the bike racks, either with their hands or with ropes and straps. At approximately 1:14 p.m., Hamner engaged with a tug-of-war with a Capitol Police officer and an officer from the Metropolitan Police Department over a bike rack that was being used as a barricade.
Additionally, at approximately 1:40 p.m., Hamner joined others in the mob in pushing a large metal sign into the defensive line formed by law enforcement officers.
Hamner was arrested on Nov. 9, 2021, in Colorado Springs. He later was indicted on a total of six charges, including five felonies. He pleaded guilty on May 17, 2022, to one of the felony charges, interfering with law enforcement officers during a civil disorder. He has pleaded not guilty to the remaining five charges and is awaiting further court proceedings.
Following his prison term, Hamner will be placed on three years of supervised release. He also must pay $2,000 in restitution.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. The U.S. Attorney’s Office for the District of Colorado assisted in the prosecution.
The case is being investigated by the FBI’s Denver Field Office, Colorado Springs Resident Agency and the FBI’s Washington Field Office, which identified Hamner as #61 in its seeking information photos. Assistance was provided by the Metropolitan Police Department and the U.S. Capitol Police.
In the 20 months since Jan. 6, 2021, more than 870 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 265 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
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For more information about the U.S. Attorney's Office for the District of Colorado, visit: https://www.justice.gov/usao-co/pr
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Haitian National Pleads Guilty to Firearms TraffickingRead the Press Release
Denver – The United States Attorney’s Office for the District of Colorado announces Haitian national Peniel Olibris, age 32, has pleaded guilty to smuggling goods, specifically firearms, from the United States.
According to the plea agreement, the defendant came to the attention of law enforcement in October of 2019 when a firearms store manager in Arvada, Colorado, reported a suspicious customer. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating and learned that between February 2019 and June 2020, Olibris and an associate purchased 77 firearms in the District of Colorado.
The plea agreement states in July 2020, Mr. Olibris admitted to law enforcement agents that he shipped “a few” firearms to Haiti, where he is from and where some of his family members still live. He explained that he placed the firearms in boxes inside cars and had the drivers take the cars from Colorado to Florida. In Florida, one of his associates coordinated with a shipping company to send the cars containing firearms to Haiti. The defendant explained he was trying to obtain a federal firearms license that would enable him to sell firearms, but had not yet done so.
According to the shipping company located in Fort Lauderdale, Florida, Olibris shipped 13 cars to Haiti between September 30, 2019 and May 29, 2020. This conduct violated of the Arms Export Control Act and the International Traffic in Arms Regulations.
The defendant entered his guilty plea on September 19, 2022, before Judge Regina M. Rodriguez. Sentencing is scheduled for January 12, 2023.
This case was investigated by Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorneys Laura Cramer-Babycz and Albert Buchman are handling the prosecution.
Case number: 22-cr-00238.
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Denver Felon Pleads Guilty to Weapons and Drug ChargesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Brian Shamar Thompson, age 35, of Denver, pleaded guilty to one count of possession of a firearm by a convicted felon and possession of cocaine with intent to distribute.
According to the plea agreement, on March 31, 2022, at 9:23 p.m., officers were dispatched to the 3300 block of North Cherry Street in Denver regarding a report of multiple shots fired. When officers arrived, they observed Brian Shamar Thompson, who matched the subject description, along with a white SUV which had an expired registration in his name.
While looking into the vehicle from the outside, officers observed a black pistol with an extended magazine wedged between the driver’s seat and the center console. The handle was sticking out with the barrel toward the floor. After seizure, the firearm was determined to be a Glock, model 22, .40 caliber pistol. Inserted into the semi-automatic pistol was a high-capacity magazine which was capable of holding more than 15 rounds of ammunition. The firearm was loaded with one round of .40 caliber ammunition in the chamber and twelve rounds of .40 caliber ammunition in the magazine. Multiple expended shell casings (both .40 cal. and 9mm) were located at the scene. Subsequent investigation tied seized 9mm shell cases to additional unlawful discharge investigations occurring over the preceding weeks.
Thompson was detained and placed in the back of a patrol car. When officers checked his criminal history, they found that he had been convicted of multiple felonies. Thus, he was a prohibited possessor of firearms. Notably, on June 8, 2017, Thompson was previously arrested for possession of a weapon by previous offender. Thompson pleaded guilty in United States District Court of Colorado (case #2017CR218) and was sentenced on December 1, 2017. He was on federal supervised release when he was again arrested on March 31, 2022.
When officers checked on Thompson in the back seat of the patrol car, they noticed a large amount of white powder (later determined to be cocaine) on the floor and seat of the vehicle under Thompson and on his clothing. Thompson also had a bag of cocaine in his hands behind his back.
Judge Daniel D. Domenico presided over the change of plea hearing on September 20, 2022. The defendant is scheduled to be sentenced on January 12, 2023. The defendant is in custody pending sentencing.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Denver Police Department. It is being prosecuted by Assistant United States Attorney Bradley Giles.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Colorado Springs Man Sentenced to Federal Prison for Drug Trafficking and Weapons ChargeRead the Press Release
DENVER- The United States Attorney’s Office for the District of Colorado announces Zachary Lawhead, age 35, of Colorado Springs, was sentenced to 92 months in federal prison for possession of a firearm and ammunition by a felon and possession with intent to distribute more than five grams of methamphetamine.
According to the plea agreement, prior to November 1, 2021, the defendant was a fugitive who was the subject of three outstanding Colorado state arrest warrants. On November 2, 2021, officers with the Colorado Springs Police Department were able to locate him at an apartment complex. Detectives approached the defendant and took him into custody on the outstanding warrants. When they searched him, detectives found several baggies containing methamphetamine and heroin which he intended to distribute. Officers also recovered a loaded semi-automatic pistol in his back pocket, which he was prohibited from possessing as a convicted felon.
Chief Judge Philip A. Brimmer sentenced the defendant on September 16, 2022. He also sentenced him to 4 years of supervised release.
“Reducing gun violence and drug trafficking are our top priorities at the U.S. Attorney’s Office,” said U.S. Attorney Cole Finegan. “Felons should take note: with the help of our partners at the ATF, we will enforce the federal law that prohibits them from possessing a firearm or ammunition.”
“Guns and drugs in the hands of prolific offenders greatly contribute to violent crime,” said Special Agent in Charge David S. Booth. “Together, through strong partnerships with the U.S. Attorney’s Office and our local law enforcement partners, we not only combat violent crime, but stop violent offenders.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Prosecution was handled by the Violent Crime and Immigration Section of the U.S. Attorney’s Office for the District of Colorado.
Case Number: 21-cr-00404
Highlands Ranch Man Sentenced to Federal Prison for Drug Trafficking and Money LaunderingRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Raul Rene Rodriguez-Romero, 33, of Highlands Ranch, has been sentenced to 5 years in federal prison after earlier pleading guilty to distribution of more than 500 grams of methamphetamine and money laundering.
According to the plea agreement, in 2015, Rodriguez-Romero met with a Drug Enforcement Administration (DEA) confidential source to discuss drug trafficking and money laundering. Rodriguez-Romero agreed to launder represented drug proceeds. In May 2015 and August to October 2015, Rodriguez met with the confidential source, accepted money he believed was from the distribution of methamphetamine, then wrote checks back to the confidential source from his various bank accounts to launder the money. Along the way, Rodriguez-Romero took a commission for himself. The plea agreement also states that in November 2015, Rodriguez-Romero distributed approximately two pounds of methamphetamine to the confidential source. In April 2016, Rodriguez fled to Mexico to avoid prosecution. He was ultimately arrested and extradited back to the United States.
Judge Daniel D. Domenico sentenced the defendant on September 14, 2022.
“Our office appreciates the efforts of our law enforcement partners at the DEA and IRS-CI. Their hard work and dedication makes it possible to disrupt drug-traffickers who seek to distribute illegal drugs in our communities. They also work to stop the laundering of illegal drug proceeds,” said U.S. Attorney Cole Finegan.
“Money laundering is a critical lifeline for drug trafficking organizations who look to profit from their deadly trade,” said DEA Special Agent in Charge Brian Besser of the Rocky Mountain Field Division. “This sentence should serve as a stark reminder for those criminals, whether they distribute addictive and deadly drugs or launder the proceeds, the DEA will continue to use every available resource to disrupt their illegal operations.”
“IRS Criminal Investigation Special Agents play a vital role in federal law enforcement’s narcotics investigations by targeting the drug traffickers’ profits laundered through businesses which may appear to be legitimate,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge, Denver Field Office. “By targeting the profits related to drug trafficking, we deprive them of the lifeblood of their organization which is key to dismantling their operations.”
This investigation was conducted by the Drug Enforcement Administration (DEA) and IRS-CI and prosecuted by the U.S. Attorney’s Office for the District of Colorado.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
CASE NUMBER: 16-cr-00266-DDD
Colorado Company and Owner Agree to Pay $625,000 for Alleged False Claims Related to Buy American ActRead the Press Release
DENVER – The Department of Justice announced today that Instec, Inc., located in Boulder, Colorado, and Dr. Zhong Zou, Instec’s owner and president, have agreed to pay $625,000 to resolve allegations that the company and Zou violated the False Claims Act by failing to comply with the requirements of the Buy American Act when selling scientific instruments to federal agencies and national laboratories.
The Buy American Act was enacted in 1933 to protect U.S. manufacturing by creating a preference for domestic products when the federal government purchases supplies. The United States alleged that Instec and Zou knowingly violated the Act by falsely certifying that scientific instruments sold to the government pursuant to contracts containing domestic-preference requirements were of domestic origin, when these goods were actually manufactured in China. These instruments, including microscopy, spectroscopy and electrical probing tools with advanced precision thermal controls, were sold to multiple federal agencies and national laboratories, including the Department of Energy, the U.S. Navy, the U.S. Army, and the National Aeronautics and Space Administration.
“Those who contract with the government must comply with all applicable terms” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates the department’s commitment to protect American businesses by enforcing domestic preference requirements.”
“When companies commit to manufacture their goods in the United States, then shirk that commitment, they violate the law and undermine American manufacturing jobs, too. The U.S. Attorney’s Office for the District of Colorado is committed to enforcing the Buy American Act and pursuing companies that violate it,” said U.S. Attorney Cole Finegan.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the District of Colorado, with assistance from the Department of Energy Office of Inspector General, the Defense Criminal Investigative Service (DCIS), the National Aeronautics and Space Administration Office of Inspector General, and the Army Criminal Investigation Division (CID).
“Federal contractors cannot simply dispense with contractual requirements designed to protect American industry,” said Department of Energy Inspector General Teri L. Donaldson, “I applaud the investigators as well as the DOJ and U.S. Attorney’s Office for the District of Colorado for their efforts in reaching this settlement.”
“This settlement demonstrates the commitment of the Department of Defense, Office of Inspector General, DCIS, along with our law enforcement partners, to aggressively pursue those who defraud the United States Government,” said Gregory Shilling, Acting Special Agent in Charge, of the DCIS Southwest Field Office. “This type of activity undermines the procurement process, and those responsible will be held accountable.”
“The Buy American Act promotes American businesses and protects U.S. economic interests,” said Robert Steinau, Assistant Inspector General for Investigations, NASA Office of Inspector General. “This agreement reflects NASA OIG’s commitment to work with our law enforcement partners in identifying and holding accountable those who engage in deliberate disregard of contractual requirements.”
“This settlement highlights the resolve of Army CID and our law enforcement partners to hold government contractors accountable for their actions. The ability to protect and defend the assets of the United States Army is always our top priority,” said Special Agent in Charge L. Scott Moreland of the U.S. Army CID Major Procurement Fraud Field Office.
The matter was handled by Trial Attorney Jason M. Crawford of the Civil Division and Assistant U.S. Attorney Jacob Licht for the District of Colorado.
The civil settlement includes the resolution of claims brought by a former Instec employee under the qui tam provisions of the False Claims Act. These provisions allow a private party, known as a relator, to file an action on behalf of the United States and receive a portion of any recovery. In this case, the relator will receive $124,500 as part of the settlement. The case is captioned United States ex rel. Swanton v. Zou, et al, No. 20-cv-01742 (D. Colo.).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Colorado Springs Company and Owner Pay $400,000 to Resolve Allegations That They Submitted False Claims for Aquatic TherapyRead the Press Release
DENVER—The United States Attorney’s Office for the District of Colorado announced today that Dynamic Physical Therapy, LLC (“Dynamic”), a physical therapy company, and its owner, Emad Yassa, have agreed to pay the United States $400,000 to resolve allegations that they violated the False Claims Act by falsely billing federal health care programs for aquatic therapy services.
Dynamic is a physical therapy company that operates two clinics in Colorado Springs, Colorado. Dynamic is owned by Mr. Yassa, who also practices as a physical therapist at the Dynamic clinics. Dynamic submitted bills for physical and aquatic therapy services to Medicare and other federal health care programs.
In 2019, a former employee of Dynamic filed a sealed civil “whistleblower” lawsuit under the False Claims Act alleging that Dynamic, at the direction of Mr. Yassa, was billing Medicare for medically unnecessary physical therapy services and for services that had not actually been provided. The lawsuit was filed in federal district court in Colorado under the “qui tam,” or whistleblower, provisions of the False Claims Act. Those provisions permit private parties to sue on behalf of the United States to bring claims based on the submission of false claims to the government and allow the whistleblower to receive a share of any funds recovered through the lawsuit. The whistleblower provisions encourage people with knowledge of fraud against the federal government to come forward when they believe fraud is being committed.
After the whistleblower complaint was filed, Mr. Yassa signed a “Stipulation and Final Board Order” with the State of Colorado’s Physical Therapy Board In the stipulation, Mr. Yassa admitted that, from mid-2014 to mid-2017, he “routinely and improperly billed insurance companies, Medicare, and Medicaid for individual aquatic therapy sessions for his patients when they had actually participated in group aquatic therapy sessions,” and also “routinely failed to document in his patients’ records that they had participated in group aquatic therapy sessions.”
In an investigation, the United States uncovered evidence indicating that Dynamic had also submitted false claims to TRICARE, a health care program for uniformed service members, retirees, and their families. The evidence indicated that Dynamic had falsely represented to TRICARE that its physical therapy services had been provided by an authorized physical therapy provider, when, in fact, they had been provided by an unauthorized physical therapy assistant.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of Colorado, the Department of Health and Human Services – Office of the Inspector General, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation.
“We will aggressively pursue any kind of health care provider who relies on fraud to obtain payments from our federal healthcare programs,” said U.S. Attorney Cole Finegan. “We also appreciate the efforts of whistleblowers who bring fraudulent billing practices to light.”
“Medicare monies for physical therapy are intended to support services that restore function, improve mobility, and relieve pain for beneficiaries,” stated Special Agent in Charge Curt L. Muller with the U.S. Department of Health and Human Services Office of Inspector General. “Our agency and law enforcement partners readily employ our resources to identify and investigate billing that diverts crucial funds inappropriately from federal health care programs.”
"The Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS), along with our law enforcement partners, will diligently investigate individuals and companies that pilfer taxpayer resources and degrade the quality of the health care provided to America's warfighters," said Michael Mentavlos, Special Agent in Charge, of the DCIS Southwest Field Office. "Today's outcome reflects DoD's commitment to hold those who commit fraud against TRICARE and other U.S. Government healthcare programs accountable."
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was handled by Assistant United States Attorney Jessica E. Matthews.
Dynamic Physical Therapy LLCWoman Sentenced to 63 Months in Federal Prison for Robbing a BankRead the Press Release
DENVER- The United States Attorney’s Office for the District of Colorado announces Georgiana Elizabeth Jones, age 43, was sentenced to 63 months in federal prison for bank robbery.
According to the plea agreement, On October 25, 2021, Jones entered the PNC Bank located on N. Garfield Street in Denver. The defendant approached the teller and asked for a deposit slip. She also asked questions about what kind of identification was needed for a deposit. She then walked out the front door of the bank and got into the back seat of a black Audi SUV. About 30 minutes later, the defendant returned to the bank wearing the same clothing, with the addition of a black and red baseball hat and sunglasses. The defendant placed a bag onto the counter, along with a demand note, on what appeared to be the same deposit slip she had obtained earlier. The teller complied, and the defendant left the bank.
“We are serious about prosecuting bank robbers. Whether it is one robbery or a series of robberies, with or without a weapon, we will hold you accountable,” said U.S. Attorney Cole Finegan. “We hope this prison sentence and others like it send a clear message to would-be bank robbers that we will not tolerate it.”
“This sentencing is an example of the ongoing collaboration between the FBI, its law enforcement partners, and the United States Attorney’s Office in their commitment to address the issue of bank robberies in the Denver metro area. Thanks to the work of our dedicated partners, this defendant is facing the consequences of her crimes," said FBI Denver Special Agent in Charge Michael Schneider.
Chief Judge Philip A. Brimmer sentenced the defendant on September 2, 2022. He also sentenced her to supervised release for a term of 3 years.
The FBI Rocky Mountain Safe Streets Task Force investigated this case. Assistant U.S. Attorney Brian Dunn handled the prosecution.
CASE NUMBER: 21-cr-00389-PAB
Colorado Springs Man Sentenced for Drug Trafficking and Money LaunderingRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces Armando DeLeon, age 51, of Colorado Springs, was sentenced to 62 months in prison for distribution of cocaine and money laundering. DeLeon previously pled guilty on August 24, 2021.
According to the filed information and the stipulated facts in the plea agreement, DeLeon sold approximately three kilograms of cocaine to a confidential informant through a series of transactions from various locations, including his personal residence, between approximately July 26, 2017, and September 15, 2017. During a search warrant of DeLeon’s residence executed on October 3, 2017, a Panther Arms AR-15-style rifle and two pistols were located, along with over $27,000 cash. The defendant was prohibited from possessing firearms as a result of a prior felony conviction.
Analysis of the defendant’s bank records show DeLeon maintained a credit card in the name of his business, D&D Detailing. While DeLeon told investigators the business was shut down earlier in 2017, the credit card showed spending activity between July and October. DeLeon acknowledged making a $7,000 payment on this credit card account in July 2017 that, at least in part, included proceeds from DeLeon’s drug trafficking activity.
U.S. District Court Judge William J. Martinez sentenced the defendant on August 31, 2022.
“We appreciate our law enforcement partners identifying and investigating this case,“ said U.S. Attorney Cole Finegan. “The fact that this drug dealer is going to spend several years in federal prison should serve as a warning to others who think they can get away with this kind of illegal activity.”
“This sentencing is a great example of the combined law enforcement efforts necessary to prosecute drug traffickers and IRS:CI‘s role in unraveling their financial transactions” said IRS-Criminal Investigation Special Agent in Charge Andy Tsui. “IRS:CI is proud to provide our financial expertise as we work alongside our law enforcement partners to bring criminals to justice."
“The harm this defendant posed to the community illustrates why FBI Denver’s Southern Colorado Safe Streets Task Force is so crucial,” said Special Agent in Charge Michael Schneider. “Whether taking down one individual or a network, this case reflects the valuable partnership the FBI holds with law enforcement agencies to mitigate the distribution of illegal drugs and make our communities safer.”
This case was investigated by IRS:CI and the FBI. The case was prosecuted by Assistant U.S. Attorney Aaron Teitelbaum.
Case Number: 21-cr-00197-WJM
Colorado Springs Man Pleads Guilty to Providing Deadly Fentanyl to TeenRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Nathaniel David Corser, age 23, of Colorado Springs, pleaded guilty today to distribution of fentanyl resulting in death.
According to the plea agreement, on July 4, 2021, the defendant met a 19-year-old man at Cottonwood Creek Park in Colorado Springs for a drug deal they had arranged through text messages. At the park, the defendant sold the 19-year-old two blue pills with imprints which said “M” and “30.” Although the pills appeared to be prescription oxycodone pills, they actually contained fentanyl. Over the course of the next day, the victim ingested both pills. Late in the morning on July 5, the victim’s aunt discovered him dead in his bedroom. The El Paso County Coroner’s Office conducted an autopsy on July 6, 2021, and ruled his death was a result of fentanyl intoxication.
The plea agreement also states, after the young man’s death, officers found text messages on his phone which appeared to relate to him buying the pills that killed him. A Colorado Springs Police detective used the victim’s phone to communicate with the defendant, and arranged to buy five pills which he described as “30s.” After the transaction, the Colorado Springs Police Department Metro Crime Lab tested the five blue pills and determined they contained fentanyl. A search of the defendant’s apartment led to the discovery of 1,089 dosage units of 30mg morphine sulfate pills packaged in 13 small zip-top baggies with crosses on them, 108 dosage units of 200 mcg fentanyl buccal tablets in the manufacturer’s packaging, two blue tablets with “M” and “30” imprinted on them which contained fentanyl, one loaded semi-automatic 9mm handgun, and a second loaded 9mm magazine.
Judge Daniel D. Domenico presided over the plea hearing, and will sentence the defendant on December 20, 2022. Corser faces a mandatory minimum of 20 years in prison.
This case was investigated by the Federal Bureau of Investigation and the Colorado Springs Police Department’s Metro, Vice, Narcotics, and Intelligence Division (Metro VNI). Assistant United States Attorneys Peter McNeilly and Alyssa Mance are handling the prosecution.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
CASE NUMBER: 21-cr-00331
U.S. Secret Service Returns $286M in Fraudulently Obtained Funds to the Small Business AdministrationRead the Press Release
DENVER – Today, the U.S. Secret Service returned approximately $286 million in fraudulently obtained Economic Injury Disaster Loans (EIDL) to the Small Business Administration (SBA). These recovered funds were generated by fraudulently submitted EIDL loan applications using fabricated or stolen employment and personal information.
“The Secret Service is dedicated to safeguarding the integrity of the nation’s financial systems against fraud and holding those responsible to account for their criminal activity,” said Assistant Director David Smith. “By aiding in the return of nearly $2.3 billion in stolen funds over the last 30 months, our workforce has demonstrated a clear and firm commitment to the vitality of American businesses across the country.”
“Through intentional collaborations like this, OIG will continue to ensure that taxpayer dollars obtained through fraudulent means will be returned to taxpayers and fraudsters involved face justice,” said SBA Office of Inspector General (OIG) Inspector General Hannibal “Mike” Ware. “OIG is focused on rooting out bad actors in these vital SBA programs. I want to thank the U.S. Secret Service and our many partners in law enforcement for their tireless dedication and focused commitment to seeing justice served.”
Initiated by the Secret Service Orlando, Florida, Field Office, the investigation revealed that the conspirators utilized third-party payment system Green Dot Bank (GDB), issuer of Green Dot debit cards, to conceal and move their criminal proceeds. Working with GDB, the Secret Service was able to identify over 15,000 accounts used in the conspiracy and seize the $286 million contained in these fraudulent accounts.
After having identified the suspected fraudulent accounts with GDB, the Secret Service approached the United States Attorney’s Office for the District of Colorado. The District of Colorado has venue for all Economic Injury Disaster Loans issued by the Small Business Administration based on its Finance Center being located in Colorado. The U.S. Attorney’s Office then obtained the seizure warrant with the District Court that led to the seizure of over 15,000 accounts with $286 million from Green Dot Bank.
“Working closely with our Central and North Florida Cyber Fraud Task Forces, this investigation enabled the recovery of a significant amount of critical federal relief,” said Assistant Special Agent in Charge Roy Dotson, the lead investigator for the Secret Service.
“We applaud the hard work and dedication of the Secret Service and the U.S. Attorney’s Offices for the District of Colorado and Middle District of Florida,” said Department of Justice Director for COVID-19 Fraud Enforcement Kevin Chambers. “This is an important step in returning stolen funds to the American people. This forfeiture effort and those to come are a direct and necessary response to the unprecedented size and scope of pandemic relief fraud. The Department of Justice is grateful for our partnership with the Secret Service and all of our law enforcement partners working to recover stolen pandemic relief funds”.
Since 2020, the Secret Service has seized over $1.4 billion in fraudulently obtained funds and assisted in returning approximately $2.3 billion to state unemployment insurance programs. The Secret Service has additionally initiated more than 3,850 pandemic related fraud investigations and investigative inquiries.
Two Aurora Brothers Sentenced to Federal Prison for Drug TraffickingRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Jesus Orlando Ortiz-Gonzalez, age 37, and Sergio Guadalupe Ortiz-Gonzalez, age 26, both of Aurora, Colorado, have been sentenced to federal prison for their roles in distributing illegal narcotics.
Jesus Ortiz-Gonzalez pleaded guilty to conspiracy to distribute more than 400 grams of fentanyl and 50 grams of methamphetamine. According to the plea agreement, on December 8, 2020, Jesus Ortiz-Gonzalez sent a courier to California to transport drugs back to Colorado. On December 14, 2020, Ortiz-Gonzalez orchestrated two drug load pick-ups in California, providing instructions to the courier of what to say and where to pick-up the drugs. On December 15, 2020, along Interstate 70 in Utah, a Utah Highway Patrol Trooper observed the courier’s rental car commit a traffic violation and he initiated a traffic stop. The traffic stop led to the discovery of nearly 60 pounds of methamphetamine and over 4 pounds of fentanyl disguised as heroin.
Sergio Ortiz-Gonzalez pleaded guilty to distribution and possession with intent to distribute more than 50 grams of methamphetamine. According to the plea agreement, from January 6, 2021, to February 2, 2021, Sergio Ortiz-Gonzalez entered into an agreement with a co-defendant to distribute methamphetamine, fentanyl, and heroin. Additionally, on March 19, 2021, he sourced approximately 13 pounds of methamphetamine and provided it for re-distribution to a co-defendant. Colorado State Troopers, working with the DEA, stopped the co-defendant’s vehicle and seized the methamphetamine.
On August 26, 2022, Chief U.S District Court Judge Philip A. Brimmer sentenced Jesus Ortiz-Gonzalez to 200 months in prison, followed by 5 years of supervised release. Judge Brimmer sentenced Sergio Ortiz-Gonzalez to 158 months in prison, followed by 5 years of supervised release.
“We appreciate the dedication of the DEA agents who work diligently to try to prevent these illicit drugs from making their way onto our streets,” said U.S. Attorney Cole Finegan. “I certainly hope drug dealers take note that we will prosecute and hold them accountable for distributing drugs in our neighborhoods.”
This case was investigated by the Drug Enforcement Administration (DEA) and prosecuted by the U.S. Attorney’s Office for the District of Colorado.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Case number: 21-cr-00231-PAB
Denver Company Pays $194,000 to Resolve Claims It Took Federal Minerals Without PermissionRead the Press Release
DENVER—The United States Attorney’s Office t0day announced that PDC Energy, Inc., an oil and gas company headquartered in Denver, Colorado, has paid $194,000 to resolve allegations that it drilled, and then operated, an oil and gas well that removed federal minerals without permission.
In order to access federal minerals managed by the Bureau of Land Management (“BLM”), oil and gas exploration companies must first obtain a federal lease and a BLM-issued permit to drill an oil and gas well. The federal lease includes an obligation to pay a mineral royalty to the United States for the federal minerals produced from the well. Taking minerals without permission is considered a trespass.
The United States contends that in 2015, PDC drilled a well into federal minerals in Weld County, Colorado, without first obtaining the necessary permissions. The United States further contends that PDC then operated that well for several years without paying compensation to the United States for the minerals it extracted. PDC notified the United States of this well after a prior investigation and settlement with PDC involving mineral trespass. PDC fully cooperated with the investigation.
“Federal public lands belong to all of us, and protecting them is a priority for our office,” said U.S. Attorney Cole Finegan. “Oil and gas companies that wish to drill on federal lands and take minerals owned by the public must obtain permission.”
“This settlement is the direct result of the Department of the Interior’s Office of the Inspector General, the Bureau of Land Management, and the Office of the Solicitor working collaboratively and diligently with the Department of Justice to protect our nation’s mineral resources and ensure that public revenues are collected on behalf of all American taxpayers,” said Ron Gonzales, Special Agent in Charge for the Department of the Interior, Office of Inspector General’s Energy Investigations Unit.
“The BLM is responsible for the management of the public’s energy and mineral resources. We take that responsibility seriously both to ensure the public receives the compensation due and to enable stewardship of impacted lands and resources,” said BLM Colorado State Director Doug Vilsack.
This case was handled by Assistant U.S. Attorney Andrea Wang.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Colorado Victims’ Rights Organization Receives Department of Justice GrantRead the Press Release
DENVER – The Department of Justice announced today nearly $50 million in Office on Violence Against Women (OVW) grants to provide survivors of gender-based violence with access to legal services and improve effective coordination of justice systems impacting victim and family safety. Specifically, OVW awarded a total of $35,659,296 to 59 grantees under the Legal Assistance for Victims Program, which addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking. This includes $600,000 awarded to the Rocky Mountain Victim Law Center in Denver. In addition, earlier this month, OVW’s Justice for Families Program awarded $14,191,208 to 26 projects that aim to improve the response of the civil and criminal justice systems to families with a history of domestic violence. The Justice for Families Program also supports supervised visitation and safe exchange of children.
“These grants will help expand access to the services and support that are essential to bringing justice within reach for survivors of gender-based violence,” said Attorney General Merrick B. Garland. “The Department’s Office on Violence Against Women will continue its important work to empower survivors with the resources they need to navigate our justice system, including by expanding access to legal representation, language assistance, and court-related programs.”
“These grants demonstrate that the Department of Justice and the U.S. Attorney’s Office are committed to fighting for victims’ rights,” said U.S. Attorney Cole Finegan. “Our office has dedicated professionals working to make sure victims are heard and their needs are addressed, so that they can seek justice.”
“Legal services and systems, including family courts, have a tremendous impact on survivors’ and their families’ livelihood, wellbeing, and freedom,” said OVW Acting Director Allison Randall. “Meaningful representation for survivors is vital, but can be difficult to attain in the aftermath of violence, or when someone is still trying to find safety. Grantees under OVW’s Legal Assistance for Victims and Justice for Families Programs help survivors navigate complicated processes and potentially dangerous points along the way, including supervised visitation, protection orders, and divorce.”
In addition to addressing survivors’ civil and criminal legal needs, the Legal Assistance for Victims Program expands pro bono legal assistance for survivors. The Justice for Families Program also finances court and court-related programs, provides legal assistance for survivors, and supports training for court personnel, child protective services workers, and others.
Later this year, OVW will launch the new Expanding Legal Services Initiative (ELSI) under the Legal Assistance for Victims Grant Program. ELSI will support entities that do not yet have a legal representation program and need assistance establishing one. Grantees will receive specific training to help create a legal program from the ground up, while prioritizing racial equity and underserved communities. OVW will release the solicitation for this new initiative in the fall. Eligible applicants include nonprofit organizations and tribal governments or tribal organizations that intend to establish a program to provide legal representation to victims of sexual assault, domestic violence, dating violence, or stalking. OVW will provide additional details at upcoming informational virtual events and answer questions from participants. Registration for virtual events will be added as it becomes available:https://www.justice.gov/ovw/events.
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more atwww.justice.gov/ovw.
Federal and State Law Enforcement Partners Join Forces to Crack Down on Violent Pueblo GangRead the Press Release
PUEBLO – The United States Attorney’s Office for the District of Colorado joined FBI Denver Division, Pueblo Police Department, and the 10th Judicial District Attorney’s Office at a news conference to announce the results of a five-year investigation into violent gang activity in Pueblo, resulting in the convictions and sentencings of more than a dozen gang members and associates. Members of the enterprise engaged in narcotics trafficking and acts of violence, including murder and assault.
To date, there have been 13 defendants arrested and charged federally and 12 arrested and charged in the state. This has led to a significant reduction in violent crime in the Pueblo area. In 2016, Ace gang members were responsible for 16% of the murder, assault, narcotics possession/distribution, and weapons charges according to the Pueblo Police Department. In 2021, Ace gang members were responsible for less than 2.5% of those crimes.
“This operation took violent offenders off the streets and put them in prison for a long time. Some of the defendants were spreading highly addictive and deadly drugs to Pueblo’s residents. This operation shows the dedication of the investigators with the FBI and the Pueblo Police Department and the determination of the U.S. Attorney’s Office and the 10th Judicial District Attorney’s Office to help make Pueblo a safer community,” said U.S. Attorney Cole Finegan. “Our work does not end here. We will continue to hold gang members and drug dealers accountable if they break the law.”
The defendants charged and convicted federally include:
- Emilio Hall, age 27, of Pueblo was sentenced to 32 years in prison after pleading guilty to Violent Crimes in Aid of Racketeering Activity (VICAR) murder. According to the plea agreement, on June 23, 2019, Hall shot and killed Floyd Robinson in the area of Bessemer Park in Pueblo as retaliation for a perceived offense against the Ace gang. Hall committed the murder in order to increase or maintain his standing in the Ace gang. U.S. District Court Judge Raymond P. Moore sentenced Hall on June 24, 2022. CASE NUMBER: 21-cr-00141.
- Christopher Ortiz, age 42, of Pueblo, was sentenced to 10 years in prison after pleading guilty to being an accessory after the fact. According to the plea agreement, Ortiz was an Ace gang member, and because of his relationship with Emilio Hall, Ortiz destroyed the firearm that Hall used to kill Floyd Robinson. He did this in order to hinder and prevent Hall’s apprehension, trial or punishment for the crime of VICAR murder. U.S. District Court Judge Raymond P. Moore sentenced Ortiz on August 16, 2022. CASE NUMBER: 21-cr-00141.
- Jose Angel Martinez, age 30, was sentenced to 12 years in prison for his plea to possession with intent to distribute heroin and violation of the Racketeer Influenced and Corrupt Organizations Act (RICO). According to the plea agreement, on August 5, 2019, law enforcement conducted an operation to arrest Martinez on a warrant related to a July 18, 2019, fight and assault at a Pueblo bar. The FBI was able to obtain a search warrant of his apartment and recovered seven firearms, approximately 3.5 pounds of heroin, approximately 6.8 ounces of cocaine, approximately 15 grams of crack cocaine, $35,000, and several digital scales and a drug ledger. U.S. District Court Judge Raymond P. Moore sentenced Martinez on June 27, 2022. CASE NUMBER: 19-cr-00377.
- Leonard Rodriguez, age 30, of Pueblo, was sentenced to 80 months of imprisonment for possession with the intent to distribute 100 grams or more of heroin. The conviction was tied to a search warrant executed on September 4, 2019, where police discovered Rodriguez in possession of 507 grams of heroin, 112 grams of methamphetamine, a firearm, numerous rounds of firearm ammunition, items indicative of narcotics trafficking, and thousands of dollars in cash. U.S. District Court Judge Christine M. Arguello sentenced Rodriguez on April 11, 2022. CASE NUMBER: 19-cr-00430.
- James Anthony Lovato, age 37, was sentenced to 10 years in prison after being convicted of possession with intent to distribute over 50 grams of methamphetamine. Lovato was an associate of the Ace gang in Pueblo. According to the plea agreement, on May 21, 2019, detective from the Pueblo Police Department’s Special Investigation Division received a tip from an anonymous source that the defendant possessed a large duffle bag containing pounds of methamphetamine and heroin. While taking Lovato into custody for an outstanding arrest warrant and executing a search warrant on his home, law enforcement discovered he was in possession of over 300 grams of methamphetamine, 40 grams of heroin, and thousands of dollars in cash. Lovato was sentenced by U.S. District Court Judge R. Brooke Jackson on August 5, 2022. CASE NUMBER: 19-cr-00314.
- Victor Adrian Trujillo, age 38, of Pueblo, was sentenced to 100 months in prison after pleading guilty to possession of ammunition by a prohibited person. According to the plea agreement, officers searched for Trujillo to execute a state arrest warrant for escape. Officers identified Trujillo in a vehicle and attempted a traffic stop. Trujillo eluded officers in the vehicle. Officers eventually contacted Trujillo and arrested him. Officers observed, in plain view, a black handgun on the front, driver’s side floorboard between Trujillo’s feet. Trujillo is a convicted felon and cannot possess firearms and ammunition. U.S. District Court Judge Daniel D. Domenico sentenced Trujillo on September 17, 2021. CASE NUMBER: 19-cr-380.
- Maximillian Esquibel, age 34, of Pueblo, was sentenced to 58 months after a jury convicted him of being a felon in possession of firearms. U.S. District Court Judge R. Brooke Jackson sentenced Esquibel on December 7, 2020. CASE NUMBER: 19-cr-376.
- Joseph Bachicha, age 38, of Pueblo, was sentenced to 42 months in prison after pleading guilty to possession with intent to distribute heroin. According to the plea agreement, on June 23, 2018, officers saw the defendant engage in hand-to-hand drug deal. At the time of his arrest, officers found approximately 49 grams of heroin in his possession. Judge R. Brooke Jackson sentenced Bachicha on February 14, 2019. CASE NUMBER: 18-cr-358.
- Joshua Roy Wisthoff, age 36, of Pueblo, was sentenced to 66 months in prison after pleading guilty to possession of a firearm by a prohibited person and possession of a firearm in furtherance of a drug trafficking crime. According to the plea agreement, on January 2, 2021, Wisthoff was observed running a red light by a Pueblo Police officer. Another officer arrived on scene and observed a firearm in plain view on the passenger seat of Wistoff’s vehicle. The firearm was used by Wisthoff as protection when he sold methamphetamine. When the vehicle was searched, officers located a digital scale, an empty baggie in the center console, and a baggie containing methamphetamine located between the driver’s seat and the center console, which Wisthoff intended to distribute. U.S. District Court Judge Raymond P. Moore sentenced Wisthoff on August 8, 2022. CASE NUMBER: 21-cr-092.
- Isaac Chavez, age 39, of Pueblo, was sentenced to 72 months in prison after pleading guilty to possession with intent to distribute 50 grams and more of a mixture and substance containing a detectable amount of methamphetamine. According to the plea agreement, on August 30, 2019, officers encountered Chavez after he crashed on his motorcycle. He had two active arrest warrants and his driver's license was revoked. Officers found a significant amount of methamphetamine at the scene near his crashed motorcycle. Officers also found methamphetamine, heroin, and cocaine in a backpack he dumped while fleeing from officers on foot. U.S. District Court Judge Robert E. Blackburn sentenced Chavez on March 21, 2022. CASE NUMBER: 19-CR-426.
In addition, there were a number of cases prosecuted at the state level that are being announced separately by the 10th Judicial District Attorney’s Office.
“FBI Denver works with our federal, state and local partners across Colorado to keep communities safe. In Pueblo, we were able to leverage FBI resources to successfully target a violent, criminal gang,” said FBI Denver Special Agent in Charge Michael Schneider. “We will continue to work with our partners in Pueblo and elsewhere, and we will continue to target violent drug dealers and those who support such operations.”
“The work of the FBI, the US Attorney’s Office, the 10th Judicial District Attorney’s Office, our detectives and investigators in this operation took a large number of violent offenders off the streets of Pueblo and helped make our community safer. We are very thankful for the partnership we have with the FBI, the U.S. Attorney’s Office, and the 10th Judicial District Attorney’s Office in this environment where violent crime is continuing to increase, not only here in Pueblo, but across the state," said Pueblo Police Chief Chris Noeller.
The investigation in this case was conducted by the Pueblo Police Department, the Federal Bureau of Investigation (FBI) Denver Division, and 10th Judicial District Attorney’s Office, with assistance from the Pueblo County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), and the Colorado State Patrol. The prosecution was handled by Assistant United States Attorneys Dan McIntyre and Thomas Minser and the Violent Crime and Immigration Section of the U.S. Attorney’s Office, with assistance from the Department of Justice’s Organized Crime and Gang Section.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
These cases were also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Commerce City Man Indicted for Tampering with a Consumer ProductRead the Press Release
Denver – The United States Attorney’s Office for the District of Colorado announces Christopher Robert Pattinson, age 40, of Commerce City, has been indicted on charges of tampering with a consumer product and obtaining a controlled substance by deceit.
According to the indictment, between November 8, 2021, and January 13, 2022, the defendant, with reckless disregard for the risk that another person would be placed in danger of bodily injury, and under circumstances manifesting extreme indifference to such risk, tampered with fentanyl, by removing fentanyl from 20 vials and replacing it with another substance. The indictment also states between November 5, 2018 and January 12, 2022, the defendant obtained fentanyl, a Schedule II controlled substance, by misrepresentation, fraud, forgery, deception, and subterfuge, by misrepresenting that a vial or vials of fentanyl were used for a patient, when in fact the defendant acquired and obtained the fentanyl for himself.
The defendant made his initial appearance before Magistrate Judge Michael E. Hegarty on August 22, 2022.
This case is being investigated by the Drug Enforcement Administration (DEA) and the Food and Drug Administration Office of Criminal Investigations (FDA OCI).
The charges contained in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
Case number: 22-cr-0263
Colorado Springs Man Sentenced to 10 Years in Prison for Drug Trafficking and Firearms PossessionRead the Press Release
Denver - The United States Attorney’s Office for the District of Colorado announces Matthew James Vernon, age 41, of Colorado Springs, has been sentenced to 10 years in prison after pleading guilty to possession with intent to distribute more than 100 grams of heroin, and possession of a firearm in furtherance of drug trafficking.
According to the plea agreement, on June 17, 2021, law enforcement executed a search warrant at the defendant’s residence in Colorado Springs. Investigators recovered more than 600 grams of heroin, a digital scale and a cash counter, and three firearms. In an interview with investigators, the defendant acknowleged he could not legally possess a firearm. The defendant possessed the heroin with the intent to distribute it, and he possessed some or all of the firearms in furtherance of his possession of the heroin.
Judge William J. Martinez sentenced the defendant on August 12, 2022. He also sentenced Vernon to 4 years supervised release.
The FBI Denver Division investigated this case. This case was prosecuted by the Violent Crime and Immigration Section of the U.S. Attorney’s Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case number: 21-cr-0213
Colorado Springs Man Sentenced to more than 21 Years for Bank RobberiesRead the Press Release
Denver- The United States Attorney’s Office for the District of Colorado announces Jared Lincoln Fitzgerald, age 46, of Colorado Springs, was sentenced to 262 months in federal prison for four counts of bank robbery, including one with force.
“Bank robberies are crimes of violence that traumatize the victims, and we are dedicated to seeking justice for those victims,” said U.S. Attorney Cole Finegan. “We are grateful for our partners at the FBI Rocky Mountain Safe Streets Task force for their work and commitment to hold bank robbers accountable.“
According to the plea agreement, on July 24, 2020, the defendant, wearing a face covering and a yellow hard hat, entered the MidFirst Bank on North Cook Street in Denver. He approached the desk of a bank employee and showed the employee a note that said, “This is a robbery.” The defendant then told three bank employees, “There is a problem. The problem is you’re being robbed.” The defendant lifted the front of his shirt to reveal what appeared to be a black handgun in his waistband. He ordered the employees to the vault and began yelling at them. At one point, the defendant began counting down and the employees feared they would be shot. Once the vault was opened, he took money, ordered the employees to stay inside the vault, and exited the bank.
On October 9, 2020, the defendant entered the same MidFirst Bank on North Cook Street in Denver. He approached the gate to the teller line with what appeared to be a gun in his hand. He ordered bank employees, both present during the previous MidFirst robbery, to access the vault room. The defendant forced all the bank employees into the vault room. He said, “If the cops come, there will be a shootout” and ordered the employees to open the safe. The defendant removed cash and left the bank.
On April 13, 2021, the defendant entered the Power Credit Union on East Evans Avenue in Pueblo. He asked to speak to the manager. He displayed a robbery note threatening the employees. He directed employees into the vault and ordered them to open it. At one point, the defendant told a credit union employee he would take them hostage if the police showed up. He removed cash and left the credit union.
On July 20, 2021, the defendant entered the Wells Fargo Bank on West 44th Avenue in Wheat Ridge. He was armed with a semi-automatic handgun that he kept in a holster on his hip and was clearly visible to the employees. He stated in a loud voice he needed to speak with a manager about fraudulent checks. He identified himself as a law enforcement official. When the manager spoke with him, the defendant displayed a note that said “This is a robbery. I am armed with a gun.” He ordered the employees to the vault and ordered the manager to put money into a bag he provided. He then left the bank.
Agents and task force officers from the FBI Rocky Mountain Safe Streets Task Force executed warrants on the defendant’s house, storage locker and vehicles, locating items matching the clothing worn and weapons used in the robberies.
Senior Judge Christine M. Arguello sentenced the defendant on August 10, 2022. She also sentenced him to five years supervised release.
“Jared Lincoln Fitzgerald committed four takeover-style robberies, all while he was under supervision for previous bank robberies,” said FBI Denver Special Agent in Charge Michael Schneider. “Fitzgerald clearly knew the consequences of his actions and still chose to break the law and terrorize his victims. This lengthy sentence is appropriate for this defendant; keeping him behind bars helps keep our communities safe.”
This case was investigated by the FBI Rocky Mountain Safe Streets Task Force. Assistant U.S. Attorney Brian Dunn prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case number: 21-cr-00274-CMA
Aurora Man Sentenced to 66 Months for COVID FraudRead the Press Release
Denver - The United States Attorney’s Office for the District of Colorado announces Russell Ray Foreman, age 39, of Aurora, Colorado, has been sentenced to 66 months for money laundering and wire fraud.
According to the plea agreement, between March 29, 2020 and October 6, 2020, the defendant submitted seven several fraudulent Economic Injury Disaster Loan (EIDL) applications to the Small Business Administration (SBA). Two of the EIDL applications were approved and funded by the SBA. As a result of those fraudulent EIDL applications, LLCs created by the defendant received $196,500.00 in EIDL proceeds. He knowingly made false statements about the number of employees for each business, the gross revenues, the cost of goods sold, and the date each business was formed. On May 14, 2020, Foreman filed a false and misleading Paycheck Protection Program (PPP) loan application. As a result of the application, on May 26, 2020, an FDIC insured bank funded Foreman with a $20,052.00 PPP loan. He also aided and abetted a codefendant who made a false EIDL application and received $150,000.00.
Also, according to the plea agreement, the defendant laundered proceeds by causing the transfer of funds to his sister which was later returned to him.
At the sentencing hearing, the court considered that the defendant had been associated with unsuccessful applications under the CARES Act totaling over 2 million dollars.
Judge Raymond P. Moore sentenced Foreman on August 12, 2022. He also ordered restitution in the amount of $367,000.00.
“We are proud of the work being done by our partners at IRS-CI to investigate and bring to justice people who took advantage of these programs that were designed to help people in need during the COVID-19 pandemic,” said U.S. Attorney Cole Finegan. “We will continue to prosecute anyone who tries to defraud the United States Government out of money that was made supposed to be used to keep small businesses afloat during this national emergency.”
“Today’s sentencing is a direct reflection of IRS Criminal Investigation’s commitment to investigating individuals who lined their pockets with Covid relief funds,” said Andy Tsui, Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “IRS Criminal Investigation has a 100% conviction rate for Covid relief fraud investigations prosecuted in federal court, and we will continue to hold criminals accountable that divert money intended for legitimate businesses.”
This case was investigated by the Internal Revenue Service - Criminal Investigations Denver Field Office (IRS-CI). Prosecution was handled by Assistant U.S. Attorney Robert M. Brown.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Case number: 21-cr-00165
U.S. Attorney’s Office Reaches Settlement with City of Denver and Concert Promoters Relating to Overcharging for Wheelchair-Accessible Seating at Red Rocks AmphitheatreRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announced today that the United States has resolved a discrimination claim under the Americans with Disabilities Act (ADA) against the City and County of Denver and concert promoters Live Nation, AEG, and PBS12.
The Department of Justice received a complaint that wheelchair-accessible seats for concerts held at Red Rocks Amphitheatre were more expensive than tickets for non-accessible seats. The U.S. Attorney’s Office investigated the complaint and alleged that the City and County of Denver, which owns Red Rocks, and concert promoters, which contracted with Denver to host events, violated the ADA by charging more for wheelchair-accessible seats than was allowed under ADA regulations.
There are 121 wheelchair-accessible seats available for each Red Rocks event. The United States alleged that, between 2018 and 2020, concertgoers who used wheelchairs, and their guests, were charged $47,950.90 more for those seats than was permitted by ADA regulations. The United States alleged that in total, Denver and concert promoters overcharged for 1,817 tickets at 178 events held at Red Rocks.
To resolve the complaint, Denver agreed to set aside $47,950.90 that will be refunded to individuals who were overcharged for wheelchair-accessible tickets. Denver has implemented a system to ensure that wheelchair-accessible tickets are priced in accordance with ADA regulations. In addition, concert promoters Live Nation, AEG, and PBS12 each paid a civil penalty to the United States.
“Red Rocks is an iconic concert venue, and people with disabilities who attend events and watch their favorite bands there should not be unfairly overcharged for wheelchair-accessible seating,” Matt Kirsch, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515. “This agreement reflects our commitment to enforcing the Americans with Disabilities Act, which requires equal treatment for people with disabilities.”
This case was handled by Assistant U.S. Attorney Zeyen Wu.
The agreement is not an admission of any violation or liability by the City and County of Denver.
https://twitter.com/USAO_CO/status/1556679470832123905
Former Denver County Deputy Sheriff Sentenced to 51 Months in Prison for Aiding Drug TraffickingRead the Press Release
Denver – The United States Attorney’s Office for the District of Colorado announces Sylvia Montoya, aka Sylvia Dominguez, age 49, of Lakewood, Colorado, was sentenced to 51 months in prison after earlier pleading guilty to maintaining a residence for the purpose of distributing illegal narcotics.
According to the plea agreement, on March 6, 2019, the defendant’s vehicle was being driven by her associate and co-defendant, when it was stopped by an Aurora Police Officer for a window tint violation. After a K-9 positively alerted to the odor of narcotics, the defendant’s vehicle was seized pending the issuance of a search warrant. Inside the glovebox of the vehicle, officers found a stolen, loaded handgun, a digital scale with residual cocaine powder, 8 grams of methamphetamine, and 1.64 grams of cocaine.
Denver Police detectives had been separately investigating the defendant due to her employment as a Denver Sheriff’s deputy and had observed the defendant and her co-defendant together on several occasions.
On March 28, 2019, Denver police officers saw the defendant drive away from a Lakewood apartment with her co-defendant in the passenger seat. Officers stopped the vehicle and arrested the passenger on an outstanding warrant for firearm and drug possession. A search located three cell phones, $3,150 cash, and a key to the apartment. A K-9 alerted to the presence of narcotics within the vehicle and officers searched the passenger compartment. Inside the center console of the vehicle, they found a clear plastic baggie containing a white powdery residue and $3,000 cash. The defendant stipulates the $3,000 cash seized was proceeds from the sale of drugs.
Denver Police detectives then obtained a search warrant for the defendant’s apartment. They discovered 102 grams of cocaine, 8 grams of heroin, 27 grams of methamphetamine, four digital scales, $1,342 cash, a dinner plate with suspected cocaine residue, and drug paraphernalia.
U.S. District Court Judge William J. Martinez sentenced Montoya on August 5, 2022.
“It is the actions of people like the defendant that make it harder for those in law enforcement for the right reasons to do their jobs and gain the public’s trust,” said U.S. Attorney Cole Finegan. “This sentence should make clear to the community that no one is above the law.”
This case was investigated by the Denver Police Department. Assistant U.S. Attorney Celeste Rangel prosecuted the case.
Case number: 19-cr-00264
U.S. Attorney’s Office Resolves Complaint about Wheelchair-Accessibility of Concentra Urgent Care Facility in Downtown DenverRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announced today that it has reached a resolution of a complaint it received under the Americans with Disabilities Act about the accessibility of a Concentra Urgent Care facility in downtown Denver.
The Department of Justice received a complaint that the Concentra Urgent Care location at 1730 Blake Street in downtown Denver was no longer accessible to individuals in wheelchairs. Through an investigation, the U.S. Attorney’s Office found that 1730 Blake LLC, the owner of the building in which the facility is located, had remodeled the building’s lobby space in a manner that removed the sole wheelchair-accessible entrance to the facility.
To resolve the complaint, 1730 Blake LLC has agreed to construct a ramp at the exterior entrance of the Concentra Urgent Care facility.
“Access to health care, particularly urgent care, should never be denied to individuals in wheelchairs,” said U.S. Attorney Cole Finegan. “I appreciate that Concentra Urgent Care and 1730 Blake LLC are willingly taking steps to remedy this issue. This resolution reflects our commitment to enforcing the Americans with Disabilities Act, which requires providing equal access for people with disabilities.”
This case was handled by Assistant U.S. Attorney Jennifer Lake.
Outside picture of Concentra Urgent Care Downtown DenverFlorida Woman Sentenced to 19 Months in Prison for Submitting Fraudulent EIDL and PPP Applications in $865K Wire Fraud SchemeRead the Press Release
Denver – United States Attorney Cole Finegan announced that Defendant Patricia Gilroy, 58, of Naples, Florida, was sentenced to 19 months in prison for a wire fraud scheme in which she received $865,351 as a result of fraudulent EIDL and PPP applications that she submitted. Gilroy was also ordered to pay $916,656.03 in restitution.
On March 27, 2020, the President of the United States signed into law the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provided emergency assistance, administered by the United States Small Business Administration (SBA), to small business owners affected by the Coronavirus (COVID-19) pandemic. The two primary sources of funding for small businesses were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL) program.
From April 2020 through April 2021, defendant Patricia Gilroy submitted fraudulent EIDL and PPP applications to the SBA and participating lenders on behalf of 10 inactive, shell companies that she controlled seeking loans from the EIDL and PPP programs. In these applications, Gilroy made false statements about the number of employees and the amount of gross revenues and cost of goods sold that the companies had in the 12 months prior to January 31, 2020. In the applications, Gilroy also falsely agreed to use the funds solely as working capital for the companies when, in fact, she intended to use the funds for other purposes, including making personal investments. Three of the PPP applications, three applications for second PPP draws, and 2 EIDL applications were approved and funded. As a result, companies controlled by Gilroy received $856,351 in PPP and EIDL proceeds.
U.S. District Court Judge Daniel D. Domenico handed down the sentence on August 2, 2022.
“This defendant tried to take advantage of a program designed to provide relief to small businesses and employees during the COVID-19 pandemic. Her sentence should send a clear message to anyone thinking of exploiting this national emergency for their personal gain. We are proud to work with our law enforcement partners to safeguard taxpayer funds,” said U.S. Attorney Cole Finegan.
“This sentencing demonstrates the commitment of the Treasury Inspector General for Tax Administration to investigate and bring to justice those that victimize the American taxpayer,” said J. Russell George, the Treasury Inspector General for Tax Administration. “Abusing a Federal program designed to assist Americans in need by fraudulently applying for loans has and will continue to be aggressively investigated. I want to thank our law enforcement partners and the United States Attorney’s office for their commitment to this goal.”
“Falsifying information to access funds set aside by the SBA to support small business works against the building up of our nation’s economy,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Our Office will remain relentless in the pursuit of fraudsters who seek to defraud the SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
The investigation in this case was conducted by the U.S. Treasury Inspector General for Tax Administration and the Small Business Administration-Office of Inspector General in connection with their work on the Colorado-based EIDL Fraud Task Force. The prosecution was handled by Pegeen Rhyne and Sarah Weiss, Assistant U.S. Attorneys, District of Colorado, Denver.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents can be found on PACER by searching for Case Number 21-cr-175.
CASE NUMBER: 22-cr-00063-DDD
Federal Jury Convicts Dentist of Killing Wife on African SafariRead the Press Release
Denver – The United States Attorney’s Office for the District of Colorado announces a federal jury found Lawrence Rudolph, age 67, guilty of murdering his wife, Bianca Rudolph, and of defrauding multiple life insurance companies. The same jury found Lori Milliron, age 64, guilty of being an accessory after the fact to the murder, obstruction of justice, and two counts of perjury before the grand jury.
The evidence presented at trial proved Lawrence Rudolph murdered his wife Bianca while the two were on a hunting trip in Zambia on October 11, 2016, in such a manner that he could falsely claim the death was the result of an accident. The defendant devised a scheme to defraud and obtain a total of $4,877,744.93 from nine life insurance policies with seven different life insurance companies, one located in Colorado. He did this by representing Bianca died as the result of the accidental discharge of a firearm when, in fact, she had been murdered. She was shot once in the heart with a 12 gauge shotgun.
The evidence also proved on January 5, 2022, the defendant Lori Milliron provided false and misleading testimony to a grand jury sitting in the District of Colorado regarding cash payments made to her by Lawrence Rudolph, and the nature of her relationship with Rudolph. She testified before the grand jury the reason for the cash payments was because he was generous; it was actually because she was his girlfriend. When asked about what Rudolph told her when he relayed to her he was under FBI investigation. She told the grand jury that Rudolph said he was irritated by the investigation because he was “probably innocent;” actually, Rudolph had told her in the Spring 2020 that he had killed his (expletive) wife for her.
“We are thankful for the jury’s diligence looking at all the evidence in this case. Bianca Rudolph deserved justice. This case was an exceptional example of the entire U.S. Attorney’s Office pulling together with our law enforcement partners to uncover the truth and seek justice for a victim who had no other voice,” said U.S. Attorney Cole Finegan. “I also want to specifically thank the efforts of the FBI, which worked to obtain justice by literally going around the world to interview witnesses and collect evidence. Their efforts were exemplary, and we are grateful to them.”
“The murder of Bianca Rudolph was not an easy case to investigate and prosecute, but it was the right thing to do to seek justice for this victim, her family, and her friends,” said FBI Denver Special Agent in Charge Michael Schneider. “Lawrence Rudolph thought he could murder his wife overseas and get away with it. His actions raised red flags, and the FBI was ready to step in to investigate this murder of a U.S. citizen by another U.S. citizen in a foreign country.”
Judge William J. Martinez presided over the 14-day trial. Rudolph will be sentenced on February 1, 2023. Milliron will be sentenced on February 8, 2023.
The case was investigated by the FBI Denver Division. Prosecution was handled by Assistant United States Attorneys Bryan Fields, Garreth Winstead, and Bishop Grewell.
Case number: 22-cr-00012
Denver Public Schools Pays over $2.1 Million to Settle Allegations Relating to Misuse of AmeriCorps FundsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced today that Denver Public Schools (“DPS”) has paid $2,123,811 to the United States to resolve a civil False Claims Act investigation into the operation of its AmeriCorps program and its misuse of AmeriCorps funds. DPS also agreed to pay for any outstanding AmeriCorps education awards yet to be distributed, up to approximately $614,000.
AmeriCorps is a federally funded network of national service programs that address critical community needs like increasing academic achievement, mentoring youth, fighting poverty, sustaining national parks, preparing for disasters, and more. AmeriCorps volunteers—who are referred to as “members”—commit to service for a period of three months to a year in exchange for a living allowance, education awards, and other benefits.
To receive an AmeriCorps education award, each member must complete a specified number of service hours, among other requirements. AmeriCorps grant recipients like DPS are responsible for verifying and certifying those hours to AmeriCorps, which maintains a fund to pay the education awards.
The United States alleges that, for grant years 2015 and 2016, DPS falsely certified to AmeriCorps that a significant portion of DPS’s members had performed the service hours necessary to qualify for an AmeriCorps education award, when in fact they had not.
Specifically, the United States contends that six of DPS’s AmeriCorps programs were not eligible to receive $557,200 in direct AmeriCorps funding and that AmeriCorps dispersed $858,674.18 in education awards based on DPS’s numerous false certifications for those six programs. The government contends that DPS recruited its existing employees for those AmeriCorps programs and then improperly counted, as AmeriCorps service hours, time those members actually spent on their duties as DPS employees, and not on service. Inadequate training, supervision and record-keeping contributed to DPS’s misuse of AmeriCorps funds. A former DPS manager admitted that they intentionally “pushed the envelope” in ways that led to violations of AmeriCorps rules. DPS terminated, and accepted resignations from, employees who had managed the AmeriCorps grants and falsely certified education awards.
“Denver Public Schools used millions of federal dollars from AmeriCorps in ways that violated the basic rules of the AmeriCorps program,” said Matthew Kirsch, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515. “Its misuse of those funds interfered with AmeriCorps’ core mission—to give students more educational resources.”
“By enrolling teachers as AmeriCorps members, DPS deprived its at-risk students of the additional educational support they were entitled to receive from national service members,” said AmeriCorps Inspector General Deborah Jeffrey. “Double-counting teachers’ paid work as national service hours meant that the community received no net benefit from AmeriCorps funding. We thank our partners in the U.S. Attorney’s Office for the District of Colorado for their work in protecting the integrity of AmeriCorps.”
The civil settlement in this matter resolves the United States’ claims under the False Claims Act against DPS and recovers funds improperly used by DPS. Under the terms of the settlement, DPS will immediately pay $2,123,811 to the United States, and will agree to assume responsibility for paying any outstanding education awards not yet distributed for the affected programs, which may total up to approximately $614,000. As contemplated by the False Claims Act, the amount paid by DPS includes a multiplier of the losses sustained by AmeriCorps.
The matter was handled by Assistant U.S. Attorney Jacob Licht for the District of Colorado. The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of Colorado and the AmeriCorps Office of Inspector General.
The claims resolved by the settlement are allegations only and DPS does not admit liability as to the government’s claims.
Video statement: https://twitter.com/USAO_CO/status/1554543060503220237?s=20&t=MqGFQwTWRby52M6vSoIsPA
Armed Drug Dealer from Monte Visa Sentenced to 16 Years in Federal PrisonRead the Press Release
DURANGO – The United States Attorney's Office for the District of Colorado annoucnes Karl Kloeppel of Monte Vista, Colorado, was sentenced to 192 months (16 years) in federal prison, followed by four years of supervised release for possession with the intent to distribute methamphetamine and possessing a firearm during a drug trafficking crime. United States District Court Judge Robert Blackburn handed down the sentence on August 2, 2022, following Kloeppel’s guilty plea on April 11, 2022.
According to court documents and facts present at sentencing, Kloeppel was a convicted felon and established drug dealer operating in the San Luis Valley in Monte Vista, Colorado. On October 16, 2020, Kloeppel was under surveillance by federal agents and local law enforcement on a pending state warrant. Kloeppel left his residence in a BMW with approximately 210 grams of pure methamphetamine and a .45 caliber handgun. While a Colorado State Patrol Trooper pulled Kloeppel over, he handed the drugs and gun to the passenger in the BMW and ordered him to “put it in his pants.” Law enforcement later executed a later search warrant for Kloeppel’s home and found video of him holding the gun and drugs before entering the car. A search warrant for Kloeppel’s phone found many text messages about buying and selling drugs. After federal indictment, Kloeppel asked his girlfriend on a recorded phone call from jail to “throw herself under the bus” by claiming possession of the drugs and going to prison instead.
“Mr. Kloeppel was caught red handed with thousands of doses of methamphetamine and a .45 caliber handgun, but tried to deflect the blame on others,” said U.S. Attorney Cole Finegan. “Let me be clear: if you deal drugs and possess illegal weapons in the San Luis Valley, you will be caught and spend years of your life in prison.”
“DEA’s mission is clear: to make our communities safer and healthier. Today I can say, without question, we are safer with this dangerous drug trafficker off our streets,” said DEA Denver Field Division Special Agent in Charge Brian Besser. “Our communities need to be aware that methamphetamine remains a significant threat and a major priority of DEA’s Denver Field Division.”
"Our message to traffickers is simple - don't bring this to our communities," stated Col. Matthew C. Packard, chief of the Colorado State Patrol. "Drug dealers don't care about you, your loved ones or even their partners and girlfriends. While these criminals worry about profit, the Patrol will continue to work with our local and federal partners to save as many lives possible from addiction and overdose."
"The outcome of this investigation and the subsequent sentence handed down was the result of a thorough investigation by the Monte Vista Police Department with assistance from the Bureau of Alcohol, Tobacco and Firearms (ATF) agents and the US Attorney's Office in Durango. Without the cooperation and assistance from our federal partners, this defendant would have continued to poison and endanger our community through his criminal activity. We will continue to use every resource and avenue available to hold criminals who endanger our community accountable to their actions," said Monte Vista Police Chief George A. Dingfelder.
This investigation was conducted jointly by federal and state partners, including the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Monte Vista Police Department, and Colorado State Patrol. Assistant United States Attorneys Jeffrey Graves and Josh Player handled the prosecution of the case.
Case number: 21-cr-00035-REB-JMC.