District of Columbia
Press releases recorded for this federal judicial district.
Criminal Charges Filed Against Two Iranian Nationals for Violating Money Laundering & Sanctions Laws by Procuring Petroleum TankerRead the Press Release
Amir Dianat, 55, and Kamran Lajmiri, 42, both Iranian nationals, were charged with violating U.S. export laws and sanctions against Iran in the U.S. District Court for the District of Columbia.
A two-count criminal complaint returned today charges Dianat and Lajmiri with conspiracy to provide U.S. financial services to Iranian entities and their front companies attempting to purchase a petroleum tanker, the Nautic, in September 2019. The complaint alleges that the defendants concealed from the seller, financial institutions that clear U.S. dollar transactions, and the U.S. government that the sale of this vessel was destined for Iran, all as part of a scheme to enrich the defendants and other conspirators, and to evade the regulations, prohibitions, and licensing requirements of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).
A related verified civil forfeiture complaint was filed against $12,338,941.91. These funds were allegedly involved in this scheme to launder funds into the United States to illicitly procure the Nautic. The civil forfeiture complaint alleges that this scheme involved the National Iranian Oil Company, the National Iranian Tanker Company (NITC), and the IRGC-Qods Force (IRGC-QF), all specially designated nationals. The IRGC has also been designated a Foreign Terrorist Organization. This forfeiture action represents the largest ever seizure of IRGC-QF related funds. All funds of terrorist organizations are subject to forfeiture.
“These defendants purchased a crude oil tanker valued at over $10 million by illegally using the U.S. financial system, defiantly violating U.S. sanctions,” said Assistant Attorney General for National Security John C. Demers. “This is yet another example of Iran brazenly using front companies and false documentation in an attempt to hide the illegal transactions that the Iranian regime desperately needs to fund its malign activities. The enforcement of U.S. sanctions and related financial criminal laws is a major component of the National Security Division’s commitment to protecting the national security of the United States. I commend the efforts of the prosecutors, agents, and analysts who uncovered this illegal scheme and whose work resulted in the largest ever forfeiture action involving IRGC-QF.”
“Employing civil forfeiture authorities specifically available to the U.S. Attorney’s Office in the District of Columbia, we will continue to aggressively prosecute those who abuse our financial system to support sanctioned entities,” said U.S. Attorney Timothy J. Shea for the District of Columbia. “We will use every measure available under the law, to include civil forfeiture to recover funds for the victims of terrorism. These laws exist and serve to prevent hostile countries from illicitly generating revenue, such as through the sale of oil, to fund their weapons proliferation programs. Today’s charges are another example of the dedicated and unrelenting efforts of our office, the FBI, and HSI.”
“Today's complaint demonstrates that those who use the U.S. financial system to benefit the Iranian oil industry will be investigated by the FBI and prosecuted to the fullest extent of the law,” said FBI Minneapolis Special Agent in Charge Rainer Drolshagen. “Iran's petrochemical and petroleum sectors are primary sources of funding for the Iranian regime, and the FBI will continue to aggressively pursue those who illegally use the U.S. financial system for their benefit."
“Protecting our homeland encompasses many missions, including safeguarding our nation's exports and currency," said Steven W. Cagen, HSI Colorado Special Agent in Charge. “These criminals thought they could enrich themselves while aiding Iran, a country that continues to pose a serious threat to our nation’s security. They will now face the consequences of their actions.”
A concurrent action was filed by the Department of the Treasury, sanctioning Dianat and his related front company, Taif Mining.
According to the pleadings, beginning around May 2019 through December 2019, Dianat and Lajmiri conspired to purchase the Nautic via a complex web of front companies, including Taif Mining. After sending the final wire payment to the seller, Taif Mining took possession of the Nautic. It quickly changed its name and began making trips to Iran to load Iranian petroleum. Because a U.S. bank froze the funds related to the sale of the vessel, the seller never received payment. As a result, the seller instituted a civil action in the U.A.E. to recover the vessel.
On March 15, 1995, the President, pursuant to IEEPA, issued Executive Order No. 12957, finding that “the actions and policies of the Government of Iran constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States” and declaring “a national emergency to deal with the threat.” In subsequent Executive Orders, the President imposed economic sanctions, including a trade embargo, on Iran. The Executive Orders and the ITSR prohibit the exportation, re-exportation, sale, or supply, directly or indirectly, to Iran of any goods, technology, or services from the United States or by a United States person without prior authorization or license from the U.S. Department of the Treasury, the Office of Foreign Assets Control, located in Washington, D.C. The conspirators utilized the U.S. correspondent banking system to process illicit transactions in U.S. Dollars, and at no time were U.S. financial institutions alerted that they were financing the purchase of a tanker for Iranian entities.
If convicted, Dianat and Lajmiri would face a maximum of 20 years imprisonment.
The investigation was conducted by special agents from the FBI Minneapolis Field Office and HSI Colorado Springs.
The details contained in the pleadings are mere allegations. All defendants are presumed innocent unless and until proven guilty in a court of law, and the burden to prove forfeitability in a civil forfeiture proceeding is upon the government.
Assistant U.S. Attorneys Zia M. Faruqui and Brian Hudak, National Security Division Trial Attorney David C. Recker, and Supervisory Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick from the U.S. Attorney’s Office for the District of Columbia, are representing the government.
California Man Sentenced to Four Years in Federal Prison for Arson of Northwest Restaurant and Assault on a Police OfficerRead the Press Release
WASHINGTON – Ryan Jaselskis, 24, of Northridge, CA, was sentenced yesterday to 48 months of imprisonment and three years of supervised release for arson at the Comet Ping Pong Restaurant in Northwest, and for attacking a Park Police Officer at the Washington Monument last year, announced Timothy J. Shea, United States Attorney for the District of Columbia; Ashan Benedict, Special Agent in Charge (SAC), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Peter Newsham, Chief of the Metropolitan Police Department (MPD); Gregory Dean, Chief of the D.C. Fire Department; and Gregory T. Monahan, Acting Chief of the United States Park Police (USPP).
Jaselskis pled guilty in the U.S. District Court for the District of Columbia to one count of arson and one count of assault on a federal law enforcement officer on December 17, 2019. He was sentenced by the Honorable Judge Timothy Kelly.
“Arson is a serious crime, endangering firefighters who respond to the scene and the general public who are exposed to this danger, said U.S. Attorney Timothy J. Shea. “This defendant has also been convicted of assaulting a police officer, a crime we will not tolerate in the District of Columbia.”
According to the government’s evidence, on the evening of January 23, 2019, the defendant walked into the Comet Ping Pong restaurant in the 5300 block of Connecticut Avenue, N.W., Washington, D.C., carrying a bag containing lighter fluid. He walked to the back bar area and doused the curtains with lighter fluid and ignited them, causing a fire. As the flames burned up the curtains towards the ceiling, the defendant left the restaurant. A restaurant patron and two kitchen employees were able to extinguish the fire after the defendant departed the restaurant. The defendant was captured on video surveillance wearing a distinctive blue jacket with white sleeves and red trim.
Less than two weeks later, on Monday, February 4, 2019, United States Park Police officers encountered the defendant inside the fenced area at the Washington Monument. The defendant was wearing the distinctive blue jacket with white sleeves and red trim. When the officers asked the defendant to stand, he jumped up and began fighting officers. During the struggle, the defendant struck one of the officers in the nose, drawing blood. The officers were eventually able to detain the defendant. In addition to the bloody nose, the officer suffered a cut on his left hand, and scrapes to both legs.
The Comet Ping Pong Restaurant had previously been the target of an attack in 2016 when an individual entered the dining room with a rifle and opened fire.
In announcing the sentencing, U.S. Attorney Shea, SAC Benedict, Chief Newsham, Chief Dean, and Acting Chief Monahan commended the work of the MPD officers, ATF agents, and D.C. Fire Marshals who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Andrew Floyd and Legal Assistant Kate Abrey.
District Man Charged in Federal Court for Throwing a Molotov Cocktail at an Occupied Police CarRead the Press Release
WASHINGTON – Ashton Nesmith, 23, of Washington, DC, was charged yesterday in federal court with arson and explosives offenses for tossing a Molotov cocktail at an occupied police car at the Sixth District Police Station in Northeast, announced Timothy J. Shea, United States Attorney for the District of Columbia; Ashan Benedict, Special Agent in Charge (SAC), Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
The criminal complaint charges Nesmith with arson, using and discharging a destructive device during a crime of violence, and possession of a destructive device. According to law enforcement and fire investigators, the destructive device was a Molotov cocktail designed to explode on impact.
“We will not tolerate attacks on police officers in the District of Columbia. The conduct alleged in the criminal complaint posed grave danger to DC Metropolitan Police Department officers, at a time when officers continue to risk their lives to serve and protect the public during this time of crisis. The charges filed in this case should serve as a warning to anyone who would consider resorting to violence against law enforcement or anyone else as we face the current health crisis,” said U.S. Attorney Timothy J. Shea.
“This was a callous attack on law enforcement with potentially disastrous results, and we are grateful that the suspect is in custody,” said ATF Washington Special Agent in Charge Ashan M. Benedict. “ATF, with our Arson and Explosives Task Force, is fully on the job and continues to work these cases. We are being diligent with the health and safety of our agents and others, but also fully committed to making criminals answer for their crimes.”
The complaint alleges that on the evening of April 22, 2020, an officer with the Metropolitan Police Department (MPD) was parking a police car in front of the Sixth District Police Station located in the 5000 block of Hayes Street, Northeast, Washington, D.C., when Nesmith walked toward the officer while holding the Molotov cocktail. Nesmith lit the device and threw it at the MPD officer, the complaint alleges. The Molotov cocktail struck the vehicle, bounced off, and exploded. The officer escaped injury. The complaint alleges that Nesmith fled the scene, but was chased by officers and apprehended.
A Criminal Complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless proven guilty. Upon conviction, Nesmith faces a 35-year mandatory minimum term of imprisonment.
After arrest, on April 23, 2020, Nesmith appeared before United States Magistrate Judge Deborah A. Robinson in the United States District Court for the District of Columbia, where he was ordered detained pending trial.
In announcing the charges, U.S. Attorney Shea, SAC Benedict, and Chief Newsham, commended the work of the MPD officers and ATF agents who apprehended the defendant and are investigating the incident. The case is being prosecuted by Assistant U.S. Attorneys Sara Vanore, Lisa Walters, and Nicole Battle of the U.S. Attorney’s Office for the District of Columbia.
COVID-19 Fraud Domain Seized from Seller Who Attempted to Sell It Using BitcoinRead the Press Release
WASHINGTON –The United States Attorney’s Office for the District of Columbia obtained a warrant today authorizing seizure of coronaprevention.org. The enforcement action against the owner of a fraudulent website follows Attorney General William Barr’s recent direction for the Department to prioritize the detection, investigation, and prosecution of illegal conduct related to the pandemic.
The seizure warrant alleges that the owner of the domain name, coronaprevention.org, posted it for sale on a hackers forum. The post appeared the day after the President declared a national emergency due to the COVID-19 pandemic. The seller stated on the forum that this domain would be an effective way to sell “high markup in demand products.” The seller exponentially marked up the price of the domain. The seller asked for the payment to be made via bitcoin.
The warrant further alleges that the seller engaged in conversations with an undercover agent from Homeland Security Investigations about the sale of the domain. The seller stated that it was “genius” to sell “fake testing kits” using this domain. The seller further stated that the seller “wanted to do that but I couldn’t get enough cash to bulk buy them from Alibaba [a Chinese e-commerce site].” The seller directed the undercover agent on how to set up a new website on the domain using a foreign-based service, so as to prevent U.S. authorities from being able to shut it down in the future.
“We will not tolerate exploitation of this national emergency for personal gain,” said U.S. Attorney Timothy J. Shea. “This Office will not allow fraudsters to use anonymous online spaces and cryptocurrency to hide their harmful activities and prey on victims.”
“Sadly, criminals are using the current pandemic as an opportunity to generate proceeds while so many Americans are suffering,” said William S. Walker, acting HSI Philadelphia Special Agent in Charge. “Homeland Security Investigations and our partners will continue to aggressively pursue those who attempt to illegally capitalize on this crisis through illicit money-making schemes.”
The charges in the warrant are merely allegations, and civil forfeiture proceedings will commence in which any interested party may make a claim to ownership of the seized property.
The investigation was handled by Homeland Security Investigations (Philadelphia).
The case is being handled by Assistant U.S. Attorney Zia M. Faruqui, Paralegal Specialist Brian Rickers, and Legal Assistant Jessica McCormick of the U.S. Attorney’s Office for the District of Columbia.
Georgia Man Arrested for Attempting to Defraud the Department of Veterans Affairs in a Multimillion-Dollar COVID-19 ScamRead the Press Release
WASHINGTON — Christopher Parris, a 39-year-old Atlanta, Georgia resident, was arrested today and charged in federal court in the District of Columbia with fraud for attempting to sell millions of nonexistent respirator masks to the Department of Veterans Affairs in exchange for large upfront payments, the Justice Department announced.
The criminal complaint charges Parris with wire fraud. It alleges that he made and caused to be made a series of fraudulent misrepresentations in an attempt to secure orders from the Department of Veterans Affairs for 125 million face masks and other personal protective equipment (PPE) that would have totaled over $750 million. For example, the complaint alleges that Parris promised that he could obtain millions of genuine 3M masks from domestic factories when he knew that fulfilling the orders would not be possible. Parris also allegedly made similar false representations to other entities in an effort to enter into other fraudulent agreements to sell PPE to state governments.
“We will vigorously pursue fraudsters who exploit the COVID-19 pandemic to make money,” said Attorney General William Barr. “As this case demonstrates, even beyond the typical costs associated with unlawful behavior, COVID-19 scams divert government time and resources and risk preventing front-line responders and consumers from obtaining the equipment they need to combat this pandemic. The Department of Justice will not tolerate this conduct, especially when it involves this kind of egregious attempt to target and defraud our nation’s treasures – our veterans.”
After arrest, Parris appeared before Chief United States Magistrate Judge Alan J. Baverman in the United States District Court for the Northern District of Georgia, where he was ordered detained. Parris will be extradited to the District of Columbia.
“During this time of crisis, fraud or attempted fraud impacting services for veterans, who have selflessly served this country, is unconscionable,” said U.S. Attorney Timothy J. Shea for the District of Columbia. “My office will devote whatever resources are necessary to stop scams aimed at exploiting Americans during this unprecedented pandemic.”
“We are committed to protecting the integrity of taxpayer funds and ensuring the delivery of medical supplies necessary to provide quality healthcare to our nation’s veterans, and any attempt to exploit the current global COVID-19 pandemic for personal gain will be dealt with swiftly,” said Inspector General Michael J. Missal for the Department of Veterans Affairs. “Today’s charges are the direct result of the expeditious and tireless efforts of special agents of the Department of Veterans Affairs, Office of Inspector General, working in tandem with our law enforcement partners at the Department of Justice and Homeland Security Investigations.”
“Homeland Security Investigations special agents have sworn an oath to protect the American public, particularly during this health crisis, from opportunistic individuals who seek to deliberately harm and deceive others for their own profit," said Special Agent in Charge Jere T. Miles, Homeland Security Investigations – New Orleans. “Today, our special agents have shown their commitment to that promise.”
A criminal complaint is an accusation by a federal law enforcement agent, and defendants are entitled to the presumption of innocence unless proven guilty. Upon conviction for the wire fraud charge, the maximum statutory penalty is 20 years’ imprisonment and a $250,000 fine.
The Department of Veterans Affairs, Office of the Inspector General and Homeland Security Investigations investigated the case. Assistant U.S. Attorneys Peter Lallas and Zia Faruqui of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case. Trial Attorney Patrick Runkle of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorneys Alison Prout and Theodore S. Hertzberg of the U.S. Attorney’s Office for the Northern District of Georgia provided substantial assistance.
Information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Columbia, visit its website at https://www.justice.gov/usao-dc.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
Citizens and others who suspect fraud or other criminal wrongdoing related to the pandemic should report it to the COVID-19 Pandemic Fraud Hotline by phone at 202-252-7022 or by email at [email protected].
Georgia Man Arrested for Attempting to Defraud the Department of Veterans Affairs in a Multimillion-Dollar COVID-19 ScamRead the Press Release
Christopher Parris, a 39-year-old Atlanta, Georgia resident, was arrested today and charged in federal court in the District of Columbia with fraud for attempting to sell millions of nonexistent respirator masks to the Department of Veterans Affairs in exchange for large upfront payments, the Justice Department announced.
The criminal complaint charges Parris with wire fraud. It alleges that he made and caused to be made a series of fraudulent misrepresentations in an attempt to secure orders from the Department of Veterans Affairs for 125 million face masks and other personal protective equipment (PPE) that would have totaled over $750 million. For example, the complaint alleges that Parris promised that he could obtain millions of genuine 3M masks from domestic factories when he knew that fulfilling the orders would not be possible. Parris also allegedly made similar false representations to other entities in an effort to enter into other fraudulent agreements to sell PPE to state governments.
“We will vigorously pursue fraudsters who exploit the COVID-19 pandemic to make money,” said Attorney General William Barr. “As this case demonstrates, even beyond the typical costs associated with unlawful behavior, COVID-19 scams divert government time and resources and risk preventing front-line responders and consumers from obtaining the equipment they need to combat this pandemic. The Department of Justice will not tolerate this conduct, especially when it involves this kind of egregious attempt to target and defraud our nation’s treasures – our veterans.”
After arrest, Parris appeared before Chief United States Magistrate Judge Alan J. Baverman in the United States District Court for the Northern District of Georgia, where he was ordered detained. Parris will be extradited to the District of Columbia.
“During this time of crisis, fraud or attempted fraud impacting services for veterans, who have selflessly served this country, is unconscionable,” said U.S. Attorney Timothy Shea for the District of Columbia. “My office will devote whatever resources are necessary to stop scams aimed at exploiting Americans during this unprecedented pandemic.”
“We are committed to protecting the integrity of taxpayer funds and ensuring the delivery of medical supplies necessary to provide quality healthcare to our nation’s veterans, and any attempt to exploit the current global COVID-19 pandemic for personal gain will be dealt with swiftly,” said Inspector General Michael J. Missal for the Department of Veterans Affairs. “Today’s charges are the direct result of the expeditious and tireless efforts of special agents of the Department of Veterans Affairs, Office of Inspector General, working in tandem with our law enforcement partners at the Department of Justice and Homeland Security Investigations.”
“Homeland Security Investigations special agents have sworn an oath to protect the American public, particularly during this health crisis, from opportunistic individuals who seek to deliberately harm and deceive others for their own profit," said Special Agent in Charge Jere T. Miles, Homeland Security Investigations – New Orleans. “Today, our special agents have shown their commitment to that promise.”
A criminal complaint is an accusation by a federal law enforcement agent, and defendants are entitled to the presumption of innocence unless proven guilty. Upon conviction for the wire fraud charge, the maximum statutory penalty is 20 years’ imprisonment and a $250,000 fine.
The Department of Veterans Affairs, Office of the Inspector General and Homeland Security Investigations investigated the case. Trial Attorney Patrick Runkle of the Department of Justice’s Consumer Protection Branch and Assistant U.S. Attorneys Peter Lallas and Zia Faruqui of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case. Assistant U.S. Attorneys Alison Prout and Theodore S. Hertzberg of the U.S. Attorney’s Office for the Northern District of Georgia provided substantial assistance.
Information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the District of Columbia, visit its website at https://www.justice.gov/usao-dc.
The public is urged to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
United States Attorney's Office Opposes Release of Violent OffendersRead the Press Release
WASHINGTON - The United States Attorney’s Office for the District of Columbia filed a response in opposition to a motion by the Public Defender Service seeking the wholesale and indiscriminate release of all misdemeanor defendants currently serving sentences after being convicted of their crimes in a court of law.
“These misdemeanor defendants include violent criminals convicted of offenses involving vicious and armed assaults, assault on police officer and other first responders, bomb threats, voyeurism, stalking, indecent exposure to minors, and domestic violence,” said United States Attorney Timothy J. Shea. “This pandemic should not be used as a basis to release violent criminals onto the streets of Washington. “Now more than ever, as law enforcement authorities are being stretched thin due to the impact of COVID-19, the rule of law must be maintained.”
In its filing, the United States Attorney’s Office wrote that each defendant’s “sentence was imposed by an impartial judge after consideration of the crime of conviction, the impact on the victim, the criminal history of the offender, and other relevant statutory and prudential factors. Wholesale relief without regard to these factors would neither do justice nor serve public safety.”
The filing also expressed concern about the release of individuals convicted of domestic violence offenses. According to the supplemental response filed on April 3, 2020, “categorically releasing all domestic violence offenders at this point is likely to create an even greater increased risk of violence in the community.” The filing went on to express the concern that granting “early release to all of those offenders, at the same time, with little notice to victims, into a community facing severe public health restrictions[, would] uniquely put those members of the community in increased danger.”
Releasing all inmates who have committed the aforementioned crimes, without taking into account the victims impacted by their conduct, without concrete evidence that their release would benefit the health of people both inside and outside the jail, and without a case-by-case assessment of whether a defendant poses an ongoing danger to the community, would offend sensible notions of justice and public safety. Consistent with the March 26, 2020, directive of the U.S. Attorney General, however, the U.S. Attorney’s Office for the District of Columbia is undertaking a careful, case-by-case review – taking into consideration, among other things, the nature of the defendant’s conviction, the potential risk posed by the defendant to the community, and the possibility of release conditions that will assure the safety of the community – in order to facilitate the release of some vulnerable, non-violent inmates who are not likely to pose a risk to public safety.
United States Attorney for the District of Columbia Timothy J. Shea Announces Launch of Metropolitan Area COVID-19 Anti-Fraud Task ForceRead the Press Release
The pandemic outbreak of COVID-19 poses an unprecedented threat to the public health and economic security of the District of Columbia and this country. Unfortunately, some have chosen to profit from public panic by exploiting vulnerable citizens—like the sick and elderly—and to take advantage of vital public institutions combatting the pandemic—including hospitals, urgent care providers, and emergency response agencies. The pandemic is dangerous enough without abusive scams and manipulations that prey on fear and undermine the heroic efforts of nurses, doctors, and others serving on the front lines of the public health crisis. Such conduct cannot be tolerated.
That is why the United States Attorney’s Office for the District of Columbia is spearheading the formation of the Washington Metropolitan Area COVID-19 Anti-Fraud Task Force, a coalition of local and federal law enforcement agencies, Inspectors General, and the Office of the Attorney General for the District of Columbia. The Task Force is committed to detecting, interfering with, and deterring fraud, price-gouging, hoarding schemes, and other wrongdoing aimed at capitalizing on the public health emergency. This collaboration will afford law enforcement the opportunity to communicate on investigative leads, leverage investigative resources, and deploy all available tools to address the threat, including criminal investigations and prosecutions and civil enforcement actions.
In announcing the formation of the Task Force, U.S. Attorney Timothy J. Shea stated, “The challenges posed by the spread of COVID-19 threaten the safety and security of the District of Columbia and our nation. We will not allow anyone to take advantage of our citizens during this public health emergency. We are committed to detecting, investigating, disrupting, and prosecuting these fraudsters and will devote whatever time, energy, and resources are necessary to do so. This Task Force is the centerpiece of this effort. I am grateful to our law enforcement partners, including Attorney General Racine and our federal partners throughout the Metropolitan Area for joining in this initiative. It is the least we can do to support the efforts of the front-line heroes combatting this crisis—nurses, doctors, emergency responders, and public health officials—who put their lives on the line each day.”
The U.S. Attorney’s Office is pleased to announce that the following agencies are part of the Task Force:
- District of Columbia, Office of the Attorney General
- District of Columbia, Department of Insurance, Securities and Banking
- District of Columbia, Enforcement & Consumer Protection Division
- District of Columbia, Office of Inspector General
- Federal Bureau of Investigation, Washington Field Office
- Internal Revenue Service, Criminal Investigation, Washington Field Office
- Homeland Security Investigations, Washington Field Office
- Metropolitan Police Department, District of Columbia
- National Aeronautics and Space Administration, Office of Inspector General
- Pension Benefits Guaranty Corporation, Office of Inspector General
- United States Agency for International Development, Office of Inspector General
- United States Army Criminal Investigation Division, Washington-Metro Fraud Resident Agency
- United States General Services Administration, Office of Inspector General, Office of Investigations, Mid-Atlantic Division
- United States Department of Defense, Defense Criminal Investigative Service, Washington, D.C. Resident Agency
- United States Department of Homeland Security, Office of the Inspector General, Major Frauds & Corruption Unit
- United States Department of Labor, Office of Inspector General, Washington Regional Office
- United States Department of Transportation, Office of Inspector General
- United States Department of Treasury, Inspector General for Tax Administration
- United States Department of Treasury, Office of Inspector General
- United States Drug Enforcement Administration, Washington Division Office
- United States Postal Inspection Service
- United States Postal Service, Office of the Inspector General
- United States Secret Service, Washington Field Office
- United States Securities and Exchange Commission, Office of Inspector General
- United States Small Business Administration, Office of Inspector General
- Washington Metropolitan Area Transit Authority, Office of the Inspector General
The Task Force will work to identify scams aimed at exploiting fears and spreading disinformation about the pandemic. So far, law enforcement in the District of Columbia and throughout the country have received reports of individuals and businesses using the internet to sell fake cures for COVID-19, market products falsely claiming to mitigate COVID-19, and fraudulently retail COVID-19 supplies, such as face masks and hand sanitizer. There are also reports of suppliers hoarding vital supplies, such as personal protective equipment (PPE), and attempting to sell it at inflated prices. There also are reports of phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention (CDC) and reports of malware being inserted onto mobile apps designed to track the spread of the virus. Collaborating through the Task Force will position local and federal agencies to rapidly investigate such reports and put a stop to wrongdoing.
As part of this launch, the U.S. Attorney’s Office has already provided training via teleconference to local and federal law enforcement partners on criminal and civil enforcement measures available to combat COVID-19 fraud schemes, created a Pandemic Fraud Hotline through which citizens can report suspected scams via phone or email, released multiple consumer advisories, and begun to share investigative leads.
These steps are in line with the U.S. Attorney General’s direction to prioritize the detection, investigation, and prosecution of all criminal conduct related to the current pandemic. The Task Force will work in collaboration with the U.S. Department of Justice’s broader federal effort to address price gouging and hoarding schemes through the COVID-19 Anti-Hoarding and Anti-Price Gouging Task Force led by the U.S. Attorney for the District of New Jersey.
Citizens and others who suspect fraud or other criminal wrongdoing related to the pandemic should report it to the COVID-19 Pandemic Fraud Hotline by phone at 202-252-7022 or by email at [email protected]. District of Columbia residents can also submit complaints of suspected scams to the Office of the Attorney General for the District of Columbia by calling its Consumer Protection Hotline at 202-442-9828 or by emailing [email protected].
U.S. Attorney for the District of Columbia Announces Observance of April Sexual Assault Awareness Month and Sexual Assault and Child Abuse Awareness and Prevention MonthRead the Press Release
WASHINGTON — Today, April 1, is the first day of both Sexual Assault Awareness Month and Sexual Assault and Child Abuse Awareness and Prevention Month (SAAM). Started in 2001, SAAM is a national and local campaign to raise public awareness of the very serious issue of sexual assault. “As the U.S. Attorney’s Office for the District of Columbia handles the prosecution of all District of Columbia sexual assault cases involving adult offenders, and some of the most serious cases involving juvenile offenders, my staff and I are on the front lines of combating sexual violence. As we do every year during April, we are using SAAM as an opportunity to reaffirm our commitment to lifting the veil of silence and shame that can muzzle victims and to expanding our support for them,” said U.S. Attorney for the District of Columbia Timothy J. Shea. Grim statistics reflect the sad reality that the issue is widespread and that victims span all ages, genders, backgrounds, and situations. Data collected by the National Sexual Violence Resource Center, for example, indicates that:
- approximately 1 in 5 women and 1 in 71 men will be raped at some point in their lives;
- in 8 out of 10 cases of rape the victim knows the perpetrator;
- 1 in 4 girls and 1 in 6 boys will be sexually abused before they turn 18 years old;
- 34% of people who sexually abuse a child are family members of the child;
- an estimated 325,000 children per year are currently at risk of becoming victims of commercial child sexual exploitation; and
- 27% of college women have experienced some form of unwanted sexual contact.
See https://www.nsvrc.org/statistics. There is no question that sexual abuse can leave victims and their families with long-lasting emotional and physical scars.
U.S. Attorney Shea also stated, “I recognize that sheltering in place and other restrictions during the pandemic make this a particularly frightening time for sexual and physical assault of child and adult victims, as the places they can go to disclose abuse and seek safety – teachers, clergy, emergency shelters, co-workers, and friends – have become largely unavailable. Eradicating sexual exploitation and sexual abuse is one of my highest priorities. Despite the current health emergency, my staff of highly trained and dedicated prosecutors and advocates, along with our governmental and non-governmental partners, are continuing to actively identify and assist sexual assault victims and aggressively investigate and prosecute sexual offenders. Our efforts have been extremely successful.” For example, in the last few weeks:
- After a lengthy trial, a D.C. District Court jury convicted Terrell Armstead of Sex Trafficking by Force, Fraud, and Coercion. He faces a mandatory minimum sentence of 15 years in prison, a maximum sentence of life in prison, and, upon release, will have to register as a sex offender for life.
- Prosecutors in the Superior Court’s Sexual Assault and Domestic Violence Section (SODV), along with detectives from the Metropolitan Police Department’s Youth and Family Services Division, investigated and charged a D.C. man with Kidnapping While Armed for brandishing a gun and forcing an adult victim, with whom he had been in a relationship, into his car, driving her to Maryland, and then sexually assaulting her.
- Partnering with local and federal law enforcement agents on the Child Exploitation and Human Trafficking Task Force, prosecutors in the Criminal Division’s Cyber Section investigated and charged a man with Production of Child Pornography related to hands-on sexual abuse of a child living in his home.
The U.S. Attorney’s Office for the District of Columbia also is assisting its non-governmental partners and continuing to educate community members about this critical issue. For example, members of SODV and the Victim Witness Assistance Unit are:
- providing daily case screening information to a D.C. non-governmental organization that provides 24-7 crisis intervention and emergency services to victims of sexual or physical domestic violence because members of that organization do not have remote access to that critical information;
- exploring how our office’s trained forensic interviewers can conduct emergency interviews of child sexual assault victims; and
- conducting a remote training for students at a D.C. high school on the legal and emotional aspects of sexual assault and consent.
“My staff and I will work diligently with the local and federal courts and our non-governmental and law enforcement partners during and after SAAM to ensure the safety and wellbeing of these vulnerable individuals in our community,” emphasized U.S. Attorney Shea.
United States Attorney for the District of Columbia Timothy J. Shea's Statement Providing Tips for Protection against COVID-19 ScamsRead the Press Release
The United States Attorney’s Office for the District of Columbia is committed not only to deterring and to prosecuting scammers and fraudsters who would seek to benefit from the fears raised by the COVID-19 pandemic, but to assisting individuals in the District in protecting themselves from such scams. Again, we urge you to be vigilant and report any suspected instances of fraud to the COVID-19 Pandemic Fraud Hotline, 202-252-7022 and [email protected].
To protect yourself from these types of scams, the United States Attorney’s Office urges everyone to take the following steps:
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Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19.
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Check the websites and email addresses offering information, products, or services related to COVID-19. Be aware that scammers often employ addresses that differ only slightly from those belonging to the entities they are impersonating. For example, they might use “cdc.com” or “cdc.org” instead of “cdc.gov.”
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Be wary of unsolicited emails offering information, supplies, or treatment for COVID-19 or requesting your personal information for medical purposes. Legitimate health authorities will not contact the general public this way.
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Do not click on links or open email attachments from unknown or unverified sources. Doing so could download a virus onto your computer or device. Also, do not forward these emails to anyone.
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Make sure the anti-malware and anti-virus software on your computer is operating and up to date.
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Ignore offers for a COVID-19 vaccine, cure, or treatment. Remember, if there is a medical breakthrough, you won’t hear about it for the first time through an email, online ad, or unsolicited sales pitch.
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Check online reviews of any company offering COVID-19 products or supplies. Avoid companies whose customers have complained about not receiving items.
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Research any charities or crowdfunding sites soliciting donations in connection with COVID-19 before giving. Remember, an organization may not be legitimate even if it uses words like “CDC” or “government” in its name or has reputable looking seals or logos on its materials. For online resources on donating wisely, visit the Federal Trade Commission (FTC) website.
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Be wary of any business, charity, or individual requesting payments or donations in cash, by wire transfer, gift card, or through the mail. Don’t send money through any of these channels.
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Be cautious of “investment opportunities” tied to COVID-19, especially those based on claims that a small company’s products or services can help stop the virus. If you decide to invest, carefully research the investment beforehand. For information on how to avoid investment fraud, visit the U.S. Securities and Exchange Commission (SEC) website.
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For the most up-to-date information on COVID-19, visit the Centers for Disease Control and Prevention (CDC) and World Health Organization (WHO) websites.
Take these measures to help protect yourself, but if you encounter any activity that indicates one of these scams, please report it to the COVID-19 Pandemic Fraud Hotline, 202-252-7022 and [email protected].
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Finance of America Reverse Agrees to Pay $2.47 Million to Resolve Alleged Liability for FHA-Insured Reverse Mortgage Lending ViolationsRead the Press Release
WASHINGTON – Today, the Department of Justice announced that Finance of America Reverse (FAR) has agreed to pay the United States $2.47 million to resolve allegations that, a predecessor entity, Urban Financial Group Inc. (Urban Financial), violated the False Claims Act (FCA) by knowingly originating and underwriting hundreds of Home Equity Conversion Mortgage (HECM) loans insured by the Federal Housing Administration (FHA) that did not meet critical Department of Housing and Urban Development (HUD) requirements.
FAR will pay $1.97 million to resolve FCA claims and an additional $500,000 to HUD to resolve its administrative liability. FAR is a mortgage lender based in Tulsa, Oklahoma that acquired Urban Financial Group Inc., in November of 2013.
“The Department is committed to working with HUD to protect vital lending programs such as the FHA’s HECM program,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will hold accountable those FHA lenders that knowingly and materially fail to abide by their promises to HUD.”
“Companies participating in federal programs must operate with honor and integrity,” said U.S. Attorney Timothy J. Shea of the District of Columbia. “This settlement sends a clear message that we will not tolerate fraud against programs designed to financially help our nation’s seniors.”
“FHA and the taxpayers rely on lenders to originate HECM loans with integrity,” said Inspector General Rae Oliver Davis, U.S. Department of Housing and Urban Development. “HUD OIG will continue to work with HUD and our law enforcement partners to ensure that FHA lenders are not engaged in unlawful practices that increase losses to HUD’s insurance funds and threaten the viability of HUD’s mortgage programs.”
The FHA, a component of HUD, offers numerous mortgage insurance programs intended to help build and sustain strong communities across America. The HECM program is a reverse mortgage program specifically for senior homeowners who are 62 and older. The program allows seniors to withdraw some of the equity in their homes so that they can supplement their incomes and age in place. Seniors enter into mortgage agreements with a lender that are insured against loss by the FHA. The program relies heavily on lenders using reliable and accurate appraisals to approve loans for FHA’s mortgage insurance.
The settlement announced today resolves allegations that, when Urban Financial ordered appraisals for HECM loans prior to May 1, 2010, it used a form that provided appraisers with the loan amount and otherwise improperly communicated certain information to them in an attempt to influence the appraised value, in violation of FHA requirements.
This matter was investigated by the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of Columbia, HUD, and HUD’s Office of Inspector General. The claims asserted against the defendant are allegations only, and there has been no determination of liability.
Finance of America Reverse Agrees to Pay $2.47 Million to Resolve Alleged Liability for FHA-Insured Reverse Mortgage Lending ViolationsRead the Press Release
Today, the Department of Justice announced that Finance of America Reverse (FAR) has agreed to pay the United States $2.47 million to resolve allegations that a predecessor entity, Urban Financial Group Inc. (Urban Financial), violated the False Claims Act (FCA) by knowingly originating and underwriting hundreds of Home Equity Conversion Mortgage (HECM) loans insured by the Federal Housing Administration (FHA) that did not meet critical U.S. Department of Housing and Urban Development (HUD) requirements.
FAR will pay $1.97 million to resolve FCA claims and an additional $500,000 to HUD to resolve its administrative liability. FAR is a mortgage lender based in Tulsa, Oklahoma, that acquired Urban Financial Group Inc. in November of 2013.
“The department is committed to working with HUD to protect vital lending programs such as the FHA’s HECM program,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “We will hold accountable those FHA lenders that knowingly and materially fail to abide by their promises to HUD.”
“Companies participating in federal programs must operate with honor and integrity,” said U.S. Attorney Timothy J. Shea of the District of Columbia. “This settlement sends a clear message that we will not tolerate fraud against programs designed to financially help our nation’s seniors.”
“FHA and the taxpayers rely on lenders to originate HECM loans with integrity,” said Inspector General Rae Oliver Davis, U.S. Department of Housing and Urban Development. “HUD OIG will continue to work with HUD and our law enforcement partners to ensure that FHA lenders are not engaged in unlawful practices that increase losses to HUD’s insurance funds and threaten the viability of HUD’s mortgage programs.”
The FHA, a component of HUD, offers numerous mortgage insurance programs intended to help build and sustain strong communities across America. The HECM program is a reverse mortgage program specifically for senior homeowners who are 62 and older. The program allows seniors to withdraw some of the equity in their homes so that they can supplement their incomes and age in place. Seniors enter into mortgage agreements with a lender that are insured against loss by the FHA. The program relies heavily on lenders using reliable and accurate appraisals to approve loans for FHA’s mortgage insurance.
The settlement announced today resolves allegations that Urban Financial, when it ordered appraisals for HECM loans prior to May 1, 2010, used a form that provided appraisers with the loan amount and otherwise improperly communicated certain information to them in an attempt to influence the appraised value, in violation of FHA requirements.
This matter was investigated by the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of Columbia, HUD, and HUD’s Office of Inspector General. The claims asserted against the defendant are allegations only, and there has been no determination of liability.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
United States Attorney for the District of Columbia Timothy J. Shea's Statement Providing Examples of COVID-19 Scams to AvoidRead the Press Release
The United States Attorney’s Office for the District of Columbia is committed to investigating, prosecuting, and deterring those who would take advantage of the COVID-19 pandemic to prey on vulnerable citizens. Again, we urge you to be vigilant and report any suspected instances of fraud to the COVID-19 Pandemic Fraud Hotline, 202-252-7022 and [email protected].
Some examples of the scams or other fraudulent activity related to COVID-19 to be on the lookout for include the following:
- Treatment Scams: Scammers are offering to sell fake cures, vaccines, and advice on unproven treatments for COVID-19. All of these claims are a lie, as there is no cure or vaccine yet for COVID-19. Similarly, we have also learned that scammers are impersonating governmental organizations, such as the Centers for Disease Control and Prevention (CDC), and urging people to reserve a vaccine for COVID-19 with their credit card, and to also provide personal information such as their Social Security Number.
- Testing Scams: Scammers are impersonating organizations, such as The Red Cross, and saying that they are offering COVID-19 home tests door-to-door. The scammers then fraudulently charge their victims for tests that are never administered.
- Supply Scams: Scammers are creating fake shops, websites, social media accounts, and email addresses claiming to sell medical supplies currently in high demand, such as surgical masks. When consumers attempt to purchase supplies through these channels, fraudsters pocket the money and never provide the promised supplies.
- Provider Scams: Scammers are also contacting people by phone and email, pretending to be doctors and hospitals that have treated a friend or relative for COVID-19, and demanding payment for that treatment.
- Charity Scams: Scammers are soliciting donations for individuals, groups, and areas affected by COVID-19.
- Phishing Scams and Cyber Intrusions: Scammers posing as national and global health authorities, including the World Health Organization (WHO) and the CDC, are sending phishing emails designed to trick recipients into clicking on a link or opening an attachment that downloads malware, or providing personal identifying financial information. One form of malware being spread contains an interactive online map of Coronavirus-infected areas purportedly produced by Johns Hopkins University. Once someone downloads this interactive map, the malware steals the user’s credentials, such as usernames, credit card numbers, passwords, and other sensitive information usually stored in internet browsers.
- App Scams: Scammers are also creating and manipulating mobile apps designed to track the spread of COVID-19 to insert malware that will compromise users’ devices and personal information.
- Investment Scams: Scammers are offering online promotions on various platforms, including social media, claiming that the products or services of publicly traded companies can prevent, detect, or cure COVID-19, and that the stock of these companies will dramatically increase in value as a result. These promotions are often styled as “research reports,’ make predictions of specific “target price,” and relate to microcap stocks, or low-priced stocks issued by the smallest of companies with limited publicly available information.
- Doctor’s Prescription Abuse: Other reported activity concerns doctors writing prescriptions for various medications that are believed to cure COVID-19. As of now, there is no known cure or therapeutic treatment for COVID-19, and taking any medication believed to cure or relieve the symptoms of COVID-19 can be deadly. We are already hearing reports of individuals that have died after taking medications believed to cure COVID-19. Moreover, taking unapproved medication can also deprive others who need those medicines for legitimate purposes.
- $1,000 Check Scams: Scammers are contacting people over email and are telling them that their $1,000 check, as part of the stimulus package responding to COVID-19, is already waiting for them and that all they need to do is to provide personal information, such as bank account numbers and Social Security Numbers, which are the key pieces of information needed to perpetrate identity theft.
If you encounter any activity that indicates one of these scams, please report it to the COVID-19 Pandemic Fraud Hotline, 202-252-7022 and [email protected].
- Treatment Scams: Scammers are offering to sell fake cures, vaccines, and advice on unproven treatments for COVID-19. All of these claims are a lie, as there is no cure or vaccine yet for COVID-19. Similarly, we have also learned that scammers are impersonating governmental organizations, such as the Centers for Disease Control and Prevention (CDC), and urging people to reserve a vaccine for COVID-19 with their credit card, and to also provide personal information such as their Social Security Number.
United States Attorney for the District of Columbia Timothy J. Shea's Statement Urging Vigilance regarding COVID-19 ScamsRead the Press Release
WASHINGTON - In times of national crisis, scammers look to pounce on unsuspecting persons to steal their personal information and money. The COVID-19 pandemic is no different. The United States Attorney’s Office for the District of Columbia and its law enforcement partners already have seen numerous reports from around the country of scams related to the COVID-19 pandemic. These scammers look to prey on people’s fears and insecurities regarding the pandemic, or seek to provide false cures for the virus. They also look to take people’s money through fake charities or investments related to the pandemic.
The United States Attorney’s Office for the District of Columbia urges everyone to be vigilant regarding these types of scams and to report any suspected fraud or scams to the COVID-19 Pandemic Fraud Hotline, 202-252-7022 and [email protected]. The U.S. Attorney’s Office is committed to the detection, investigation, and prosecution of fraudsters who would seek to take advantage of individuals in the District of Columbia during this public health emergency.
U.S. Attorney and Attorney General for the District of Columbia Announce COVID-19 Scam Prevention MeasuresRead the Press Release
WASHINGTON — As the District of Columbia and this nation face the unprecedented public health emergency posed by the pandemic outbreak of the novel coronavirus, COVID-19, the U.S. Attorney’s Office for the District of Columbia is partnering with the District of Columbia’s Office of the Attorney General to detect COVID-19 scams, prevent citizens from falling prey to them, and hold fraudsters accountable.
U.S. Attorney Timothy J. Shea stated: “The challenges posed by the spread of COVID-19 threaten the safety and security of the District of Columbia and our nation. My Office will not allow this crisis to be exploited by criminals who look to profit during this public health emergency. We are committed to detecting, investigating, and prosecuting these fraudsters and will devote whatever time, energy, and resources are necessary to do so.”
District of Columbia Attorney General Karl A. Racine stated: “The Office of Attorney General and the U.S. Attorney’s Office have joined forces to deploy our vast criminal and civil tools to protect District residents from fraudulent, predatory, and illegal conduct by schemers and fraudsters.”
Among the threats posed by the COVID-19 outbreak are scams aimed at exploiting fears and spreading disinformation about the pandemic. For example, individuals and businesses using the internet to sell fake cures for COVID-19, market products falsely claiming to mitigate COVID‑19, and fraudulently retail COVID-19 supplies, such as face masks and hand sanitizer. In addition there are reports of phishing emails from entities posing as the World Health Organization or the Centers for Disease Control (CDC) and reports of malware being inserted onto mobile apps designed to track the spread of the virus.
Today, in light of these reports, District of Columbia’s U.S. Attorney’s Office and Office of Attorney General are launching a COVID-19 Pandemic Fraud Hotline, 202-252-7022 and [email protected] through which citizens can report suspected scams related to the pandemic. The Hotline will prompt callers to leave a message reporting suspected scams, including whatever detailed information they can provide that might aid law enforcement in identifying and stopping fraudsters. The Hotline’s voicemail and email accounts will be monitored and appropriate leads will be provided to law enforcement partners, such as the FBI, U.S. Postal Inspector, Metropolitan Police Department, and other local and federal authorities.
District of Columbia residents can also submit complaints of suspected scams, fraud, or other consumer complaints to the Office of the Attorney General for the District of Columbia by calling its Consumer Protection Hotline at 202-442-9828 or by emailing [email protected] and can access helpful resources at www.oag.dc.gov/coronavirus.
Statement from the U.S. Attorney for the District of Columbia on COVID-19 Scam Prevention MeasuresRead the Press Release
WASHINGTON — As the District of Columbia and this nation face the unprecedented public health emergency posed by the pandemic outbreak of the novel coronavirus, COVID-19, the U.S. Attorney’s Office for the District of Columbia is working with law enforcement, the court system, and community partners to ensure that essential law enforcement functions continue to operate during the crisis. My Office is committed to safeguarding our justice system and protecting the safety and security of this city and our nation.
Among the threats posed by the COVID-19 outbreak is criminal wrongdoing related to the public health crisis. In particular, we are receiving reports of scams aimed at exploiting fears and spreading disinformation about the pandemic. For example, there are reports of individuals and businesses using the internet to sell fake cures for COVID-19, market products falsely claiming to mitigate COVID-19, and fraudulently retail COVID-19 supplies, such as face masks and hand sanitizer. We are also aware of reports of phishing emails from entities posing as the World Health Organization or the Centers for Disease Control (CDC) and reports of malware being inserted onto mobile apps designed to track the spread of the virus. The pandemic is dangerous enough without wrongdoers seeking to profit from public panic. This sort of conduct cannot be tolerated.
The Attorney General has therefore directed every U.S. Attorney’s Office in the country to prioritize the detection, investigation, and prosecution of all criminal conduct related to the current pandemic. My Office intends to do just that. Consistent with the Attorney General’s direction, we are taking the following steps.
First, my Office is committed to pushing back against disinformation campaigns and supporting efforts to educate the public about the COVID-19 pandemic outbreak. Although our in-person community outreach programs, such as community meetings and school based programs, are curtailed for now, we will work to ensure that citizens in contact with my Office receive truthful information about COVID-19. Let me start by saying this: as public health authorities have said, there is no cure or treatment for COVID-19, there are no home test kits for the disease, and the FDA has not licensed any preventative products. Websites or retailers claiming otherwise are part of a scam. I encourage citizens to consult the website of the CDC for the latest information about COVID-19 and how citizens can prevent its spread. The CDC’s website is available at www.cdc.gov.
Second, as detailed in a joint press release with the District of Columbia’s Office of Attorney General, my Office is partnering with them to detect COVID-19 scams, prevent citizens from falling prey to them, and hold fraudsters accountable. Today, we are launching a COVID-19 Pandemic Fraud Hotline, 202-252-7022 and [email protected] through which citizens can report suspected scams related to the pandemic. The Hotline will prompt callers to leave a message reporting suspected scams, including whatever detailed information they can provide that might aid law enforcement in identifying and stopping fraudsters. We will monitor the Hotline’s voicemail and email accounts and provide appropriate leads to law enforcement partners, such as the FBI, U.S. Postal Inspector, Metropolitan Police Department, and other local and federal authorities. District of Columbia residents can also submit complaints of suspected scams, fraud, or other consumer complaints to the Office of the Attorney General for the District of Columbia by calling its Consumer Protection Hotline at 202-442-9828 or by emailing [email protected].
Third, my Office will appoint a COVID-19 Pandemic Fraud Coordinator, who will lead the investigation and federal prosecution of these frauds in the District of Columbia, and who will serve as the principal liaison with the D.C. Office of the Attorney General, local and federal law enforcement agencies, other U.S. Attorney’s Offices, and the U.S. Department of Justice. The Pandemic Fraud Coordinator will work with these partners to develop strategies to detect fraud schemes and prevent them.
The challenges posed by the spread of COVID-19 threaten the safety and security of the District of Columbia and our nation. My Office will not allow those threats to be multiplied, or for citizens’ understandable anxiety to be exploited, by criminals looking to profit on a public health emergency. We are committed to detecting, investigating, and prosecuting these fraudsters and will devote whatever time, energy, and resources are necessary to do so.
U.S. Attorney’s Office Committed to Safety of Employees and Public Safety at the CourthouseRead the Press Release
WASHINGTON — Our mission to protect the citizens of the District of Columbia and the United States is not changed by the COVID-19 outbreak. While we have adapted operations to optimize the health and safety of our employees, we have ensured those employees have the resources and flexibility to continue to safeguard the District and the American people from violence, financial and sexual exploitation, threats against our national security, and other criminal activity.
In continuing our mission, we support the efforts by Chief Judge Howell of the United States District Court for the District of Columbia, Chief Judge Morin of the Superior Court of the District of Columbia, and our law enforcement partners to responsibly address the concerns of public health while maintaining the core functions of our criminal justice system.
Maryland Man Convicted of Sex Trafficking by Force, Fraud, and CoercionRead the Press Release
WASHINGTON — Terrell Armstead, 29, of Baltimore, Maryland, was convicted on Monday of sex trafficking by force, fraud, and coercion, announced U.S. Attorney Timothy J. Shea, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division Timothy M. Dunham, and Chief of the Metropolitan Police Department Peter Newsham.
U.S. Attorney Shea stated: “The defendant exploited his young victims as if they were commodities to be controlled and sold. The prosecution of human trafficking is a priority for the U.S. Attorney’s Office. We will fight to protect these vulnerable victims.”
“The FBI has no greater mission than to protect our nation’s children from harm and take traffickers off the streets in our community,” said FBI Special Agent in Charge Dunham. “I would like to thank the men and women of the FBI and our partners, who work tirelessly every day to bring justice for the victims of these heinous crimes. We will continue to work to protect our community from those who exploit women and children for their own personal gain and greed.”
Armstead was found guilty on March 16 following a jury trial in the U.S. District Court for the District of Columbia before the Honorable Amit P. Mehta. Armstead was convicted of sex trafficking a woman, Victim E, by force, fraud, and coercion between June and September 2018. Armstead faces a mandatory minimum sentence of 15 years in prison and up to life in prison. Armstead is currently serving time on a separate conviction in Maryland.
On Sept. 13, 2019, in a related case also before Judge Mehta, Armstead pled guilty to conspiracy to obtain firearms in Virginia and to transport them into the District of Columbia to resell them illegally, and to unlawful possession of a firearm by a convicted felon. Those convictions carry, respectively, potential sentences of up to five and 10 years in prison. Sentencing for that case is pending.
According to evidence presented at trial, from March 2015 until September 2019, Armstead trafficked, in the District of Columbia, Maryland, Virginia, and elsewhere, several young women for commercial sex, including Victim A (whom Armstead began trafficking when she was only 16 years old) and Victim E. In total, five women testified about Armstead’s role in sexually exploiting them for money. Armstead operated his “pimping” enterprise by recruiting these young women as commercial sex workers, then advertising them in online forums (like Backpage.com), having them work in strip clubs to meet “customers,” and prostituting them on “the blade,” the commercial sex track in downtown Washington, D.C. Armstead promoted himself on social media, purporting to live a life of luxury with the money he took from the women he prostituted. He controlled and manipulated the victims, including by threats of force and by brandishing various weapons (including large automatic weapons), by taking and controlling all the proceeds from their commercial sex work, by limiting their contact with friends and family (such as smashing a cellphone), and by controlling their access to transportation and even their own identification documents.
The evidence showed that, among other things, Armstead prostituted Victim A out of hotels beginning when she was only 16 years old. The government’s evidence also included Backpage.com ads, linked to Armstead’s online accounts, posted at the time showing 16‑year‑old Victim A and other girls being sold for sex as far back as March and April 2015.
The evidence also showed that Armstead lured Victim E across the country based on false promises of fantastic success and financial comfort and security. Instead, after three months of Armstead’s trafficking, Victim E left the D.C. area with nothing. Witnesses also testified about violent episodes in which Armstead assaulted his victims, including a horrifying incident in which Armstead forced a loaded gun into Victim A’s mouth while having sex with her.
Finally, the evidence showed that Armstead engaged in extensive efforts to obstruct the investigation and trial. His own recorded jail calls showed him directing Victim A to lie to investigators — and the evidence showed him continuing to contact Victim A to affect her testimony, up to and including at trial.
In announcing the conviction, U.S. Attorney Shea, Special Agent in Charge Dunham, and Chief Newsham commended the assistance provided by officers and agents of the Federal Bureau of Investigation and Metropolitan Police Department Child Exploitation and Human Trafficking Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the D.C. Department of Corrections. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Kenya Davis and Amy Larson, Paralegal Supervisor Mary Downing and Paralegal Specialist/Contractor Kenny Nguyen.
Serial Rapist Convicted for 2007 Home Invasion Sexual Assault of Woman in Northwest DCRead the Press Release
WASHINGTON – Ronald Perry Berton, 45, of the District of Columbia, was convicted by a jury on March 10, 2020, for sexually assaulting a 27-year-old woman in October 2007, announced U.S. Attorney Timothy J. Shea and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Berton was convicted after a jury trial in the Superior Court of the District of Columbia on charges of kidnapping and first degree sexual abuse with aggravating circumstances.
Sentencing is scheduled for July 10, 2020. The defendant faces a maximum term of life in prison and lifetime sex offender registration. The defendant will also stand trial on October 8, 2020, for another home invasion sexual assault that occurred in June, 2010, in the District of Columbia. The defendant was previously convicted of a home invasion rape that occurred in Arlington County, Virginia.
According to the government’s evidence presented at trial, on October 6, 2007, at approximately 4:45 a.m., the victim was asleep in her ground-level apartment in Northwest Washington D.C. She woke up to find the defendant in her bedroom. The defendant sexually assaulted the victim, stole her cell phone and then fled. The victim obtained a rape kit and reported the offense to police. Berton was developed as a suspect in this offense by the Cold Case Sexual Assault Unit of the Metropolitan Police Department. The defendant is linked to the case based on a DNA match to the forensic evidence in the rape kit.
In announcing the conviction, U.S. Attorney Shea and Chief Newsham commended the work of those investigating the case from the Metropolitan Police Department (MPD). They also thanked regional law enforcement partners from the Arlington County Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Tijuana McPhail, Tiffany Fogle, Michelle Wicker, and Lynda Randolph; Victim Witness Unit specialists Tonya Jones, La June Thames, Katina Adams-Washington, and Yvonne Bryant; Forensic Operations Program Specialist Elizabeth Marrero; and Assistant U.S. Attorneys Lauren Bates, Nick Coleman, James Ewing, David Goodhand, Chrisellen Kolb, and Special Counsel for Forensics Michael Ambrosino. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Stuart Allen, Kathleen Kern, and Amy Zubrensky, who prosecuted the case.
Florida Nursing School President Sentenced for His Role in Defrauding D.C.'s Department of Disability ServicesRead the Press Release
WASHINGTON – Cleophat Tanis, 52, of Naples, Florida, was sentenced today to one month in prison and seven months of home detention for his role in a scheme that caused the District of Columbia’s Department of Disability Services to be defrauded out of hundreds of thousands of dollars. Tanis conspired with Eugenia Rapp, 50, of Woodbridge, Virginia, a former D.C. government employee, who pled guilty to conspiracy to commit mail fraud in July, and who will be sentenced on April 1, 2020.
The announcement was made by U.S. Attorney Timothy J. Shea; Timothy M. Dunham, Special Agent in Charge, FBI Washington Field Office, Criminal Division; Aaron R. Jordan, Assistant Inspector General for Investigations, Department of Education; and Daniel W. Lucas, Inspector General for the District of Columbia.
Tanis pled guilty to one count of mail fraud in December 2020. Today the Honorable Trevor N. McFadden sentenced him to one month in prison and seven months of home detention. In addition, he was ordered to pay $47,895 in restitution, an identical amount in a forfeiture money judgement, and a $10,000 fine.
According to the statement of offense submitted to the Court in Tanis’ case, Rapp worked as a vocational rehabilitation counselor with the District of Columbia’s Department of Disability Services, Rehabilitation Services Administration (“DCRSA”). The DCRSA Vocational Rehabilitation program provides vocational rehabilitation benefits, like college tuition, to qualified individuals with disabilities to help them prepare for and engage in gainful employment. Individuals must be D.C. residents to be eligible for the benefits.
From 2012 through 2016, Rapp conspired with others to defraud the D.C. government by having benefits awarded to individuals who were not eligible to receive them. In her role as a vocational rehabilitation counselor, Rapp was responsible for determining whether an individual was eligible to receive the benefits. Notwithstanding D.C. government policy regarding conflicts of interest, Rapp served as the vocational rehabilitation counselor for more than 20 individuals whom she described as being related to her. She knew these individuals were not eligible to receive benefits, but ensured that she was assigned to be their vocational rehabilitation counselor, so she could process and approve their applications. As a result, the D.C. government awarded vocational rehabilitation benefits totaling approximately $834,536 to Rapp’s family members and friends.
When one of Rapp’s family members wanted to attend Tanis’ nursing school, Rapp worked with Tanis to get his school added as an approved vendor with the D.C. government. During that process, Tanis told Rapp that his school was struggling financially and asked her to use her position to help pay tuition for students at his school. Tanis knew that students had to be D.C. residents in order to be eligible to receive benefits, but worked with Rapp to get $47,895 in benefits awarded to five students at his school who were not D.C. residents and who had no familial relationship to Rapp. During the scheme, Tanis provided one of Rapp’s relatives with a full scholarship to attend his school. Rapp also asked him to provide money to that relative, which he did.
In announcing Tanis’ sentence, U.S. Attorney Shea, Special Agent in Charge Dunham, Assistant Inspector General Jordan, and Inspector General Lucas commended the work of those who investigated the case from the Federal Bureau of Investigation, the Department of Education’s Office of Inspector General, and the District of Columbia’s Office of Inspector General. They also expressed appreciation for the work of Paralegal Specialist Mariela Andrade, and former Paralegal Specialists Brittany Phillips and Jessica Mundi. Finally, they commended the work of Assistant U.S. Attorney Kondi Kleinman, who prosecuted the case.
Dutch National Charged in Takedown of Obscene Website Selling over 2,000 "Real Rape" and Child Pornography Videos, Funded by CryptocurrencyRead the Press Release
WASHINGTON –Dutch National Michael R. M. a/k/a Mr. Dark, 32, was indicted by a federal grand jury in the District of Columbia for his operation of Dark Scandals, a site on both the Darknet and Clearnet that featured violent rape videos and depictions of child pornography. The nine-count indictment was unsealed today along with a parallel civil forfeiture action. The defendant was charged with various counts of Distribution of Child Pornography, Production and Transportation of Obscene Matters for Sale or Distribution, Engaging in the Business of Selling or Transferring Obscene Matter, and Laundering of Monetary Instruments.
“Darknet sites that profit from rape and the sexual exploitation of children are among the most vile and reprehensible forms of criminal behavior,” said U.S. Attorney Timothy J. Shea. “This Office will not allow predators to use lawless online spaces as a shield. We are firmly committed to working closely with our partners in the Netherlands and around the world to bring to justice the perpetrators of these abhorrent crimes.”
“The types of crimes described in this indictment are the most disgusting I’ve encountered in 30 years of law enforcement. It is a special kind of evil to prey on and profit from the pain of others,” said Don Fort, Chief, IRS Criminal Investigation. “Criminals should know if you leave a digital footprint, we will find you. If you exploit our children, we will put you behind bars. If you thought you were anonymous, think again. The dark web is not quite as dark today due to the hard work of IRS-CI and our partner agencies.”
“The obscene material distributed by the defendant victimizes innocent and vulnerable people in our communities,” said Alysa Erichs, acting executive associate director of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. “We will continue to work with our law enforcement partners to investigate and prosecute these crimes, using all available resources to ensure that additional vulnerable victims aren’t exploited.”
The pleadings allege that the defendant, who resides in the Netherlands, operated the Dark Scandals sites that hosted and distributed videos and images featuring nonconsensual and violent sexual abuse. Dark Scandals began operating in or about 2012. Dark Scandals boasted over 2,000 videos and images and advertised that it offered “real blackmail, rape and forced videos of girls all around the world.” Dark Scandals offered users two ways to access this illicit and obscene content, which was delivered in “packs” by the defendant via email to customers to download. Users could either pay for the video packs using cryptocurrency, such as Bitcoin, or upload new videos to add to the content of the Dark Scandals sites. The Dark Scandals sites included specific rules for the video uploads to the sites, which included “real rape/forced” content, and stated a preference for “own made material.” The site specifically forbade “fake, amateur…or acted movies,” rejecting content if it did not portray real sexual violence. The defendant allegedly received almost 2 million dollars from selling this obscene and illicit content.
A forfeiture complaint was also unsealed today. The complaint alleges that law enforcement was able to trace payments of bitcoin and ethereum to the Dark Scandals site by following the flow of funds on the blockchain. The 303 virtual currency accounts identified in the complaint were allegedly used by customers across the world to fund the website and promote the exploitation of children and other vulnerable victims. The forfeiture complaint seeks to recover these funds and return the illicit funds to victims of the crime through the restoration process. The forfeiture complaint also seeks to forfeit the previously seized website domains associated with DarkScandals.
The charges in the pleadings are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was jointly investigated by the Internal Revenue Service-Criminal Investigations (Washington, D.C.) and Homeland Security Investigations (Colorado Springs and The Hague). The Dutch National Police of the Netherlands, Europol, and the German Federal Criminal Police (the Bundeskriminalamt) provided assistance and coordinated with their parallel investigations.
The case is being handled by Assistant U.S. Attorneys Lindsay Suttenberg and Zia M. Faruqui, Special Assistant U.S. Attorney Dan Olinghouse, Supervisory Paralegal Specialist Elizabeth Swienc and Paralegal Specialist Brian Rickers, and Legal Assistant Jessica McCormick of the U.S. Attorney’s Office for the District of Columbia. Additional assistance has been provided by Assistant U.S. Attorney David Goodhand, former Assistant U.S. Attorney Youli Lee, and the Criminal Division’s Office of International Affairs.
Former Acting Inspector General for the U.S. Department of Homeland Security Indicted on Theft of Government Property and Scheme to Defraud the United States GovernmentRead the Press Release
WASHINGTON, D.C. – A federal grand jury in the District of Columbia returned a sixteen-count indictment against a former Acting Inspector General for the U.S. Department of Homeland Security (“DHS”) and a former subordinate for their alleged theft of proprietary software and confidential databases from the United States government as part of a scheme to defraud the United States government.
U.S. Attorney Timothy J. Shea for the District of Columbia, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Inspector General Joseph V. Cuffari for the U.S. Department of Homeland Security, and Inspector General Tammy L. Whitcomb for the United States Postal Service made the announcement.
The indictment charges Charles K. Edwards, 59, of Sandy Spring, Maryland, and Murali Yamazula Venkata, 54, of Aldie, Virginia, with conspiracy to commit theft of government property and to defraud the United States, theft of government property, wire fraud, and aggravated identity theft. The indictment also charges Venkata with destruction of records. The indictment, which was returned on Thursday, March 5, 2020, was unsealed this morning after Edwards and Venkata were taken into custody under the charges. Both defendants will be presented for an initial appearance at 1:45 p.m. today before United States Magistrate Judge Robin M. Meriweather.
According to the allegations in the indictment, from October 2014 to April 2017, Edwards, Venkata, and others executed a scheme to defraud the United States government by stealing confidential and proprietary software from the Office of the Inspector General of DHS (DHS-OIG), along with sensitive government databases containing personal identifying information (“PII”), so that Edwards’s company, Delta Business Solutions, could later sell an enhanced version of DHS-OIG’s software to the Office of Inspector General for the U.S. Department of Agriculture (“USDA-OIG”) at a profit. Although Edwards had left DHS-OIG in December 2013, he continued to leverage his relationship with Venkata and other DHS-OIG employees to steal the software and the sensitive government databases.
The indictment further alleges that, in addition to stealing DHS-OIG’s software and the sensitive government databases, Venkata and others also assisted Edwards by reconfiguring his laptop so that he could properly upload the stolen software and databases, provided troubleshooting support whenever Edwards required it, and helped him build a testing server at his residence with the stolen software and databases, which contained PII. As further part of the alleged scheme, Edwards retained software developers in India for the purpose of developing his commercial alternative of DHS-OIG’s software. In so doing, Edwards not only shared DHS-OIG’s proprietary software with foreign nationals but also the PII of U.S. federal employees and individuals implicated (either as victims, subjects, or witnesses) in official investigations conducted by DHS-OIG as well as the Office of Inspector General for the U.S. Postal Service (“USPS-OIG”).
The indictment is the result of an ongoing investigation by DHS-OIG and USPS-OIG and is being prosecuted by Assistant United States Attorney David B. Kent of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section.
The defendants face maximum terms of imprisonment of 5 years on the conspiracy to commit theft of government property charge; 10 years on the theft of government property charge; and 20 years on the wire fraud charges. The defendants face a mandatory minimum sentence of 2 years of imprisonment on the aggravated identity theft charges. Venkata faces a maximum term of imprisonment of 20 years on the destruction of records charge. Both defendants face fines on each count of conviction of up to $250,000 or twice the pecuniary gain or loss arising from the scheme alleged in the indictment.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty.
Former Acting Inspector General for the U.S. Department of Homeland Security Indicted on Theft of Government Property and Scheme to Defraud the United States GovernmentRead the Press Release
A federal grand jury in the District of Columbia returned a 16-count indictment against a former Acting Inspector General for the U.S. Department of Homeland Security (DHS) and a former subordinate for their alleged theft of proprietary software and confidential databases from the U.S. government as part of a scheme to defraud the U.S. government.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Timothy J. Shea for the District of Columbia, DHS Inspector General Joseph V. Cuffari and Inspector General Tammy L. Whitcomb for the U.S. Postal Service (USPS) made the announcement.
The indictment charges Charles K. Edwards, 59, of Sandy Spring, Maryland, and Murali Yamazula Venkata, 54, of Aldie, Virginia, with conspiracy to commit theft of government property and to defraud the United States, theft of government property, wire fraud, and aggravated identity theft. The indictment also charges Venkata with destruction of records.
According to the allegations in the indictment, from October 2014 to April 2017, Edwards, Venkata, and others executed a scheme to defraud the U.S. government by stealing confidential and proprietary software from DHS Office of Inspector General (OIG), along with sensitive government databases containing personal identifying information (PII) of DHS and USPS employees, so that Edwards’s company, Delta Business Solutions, could later sell an enhanced version of DHS-OIG’s software to the Office of Inspector General for the U.S. Department of Agriculture at a profit. Although Edwards had left DHS-OIG in December 2013, he continued to leverage his relationship with Venkata and other DHS-OIG employees to steal the software and the sensitive government databases.
The indictment further alleges that, in addition to stealing DHS-OIG’s software and the sensitive government databases, Venkata and others also assisted Edwards by reconfiguring his laptop so that he could properly upload the stolen software and databases, provided troubleshooting support whenever Edwards required it, and helped him build a testing server at his residence with the stolen software and databases, which contained PII. As further part of the alleged scheme, Edwards retained software developers in India for the purpose of developing his commercial alternative of DHS-OIG’s software.
The indictment is the result of an ongoing investigation by DHS-OIG and USPS-OIG and is being prosecuted by Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney David B. Kent of the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
District Man Pleads Guilty to Armed Robbery and Armed First Degree BurglaryRead the Press Release
WASHINGTON – Denzell Moore, 26, of Washington, D.C. pled guilty to a Hobbs Act robbery and a federal firearms charge stemming from an armed robbery of a CVS near American University in the Fall of 2017, as well as an armed first degree burglary of a Howard University student’s home that occurred in the Spring of 2012, announced U.S. Attorney Timothy J. Shea, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Moore pled guilty in the U.S. District Court for the District of Columbia to one count of Interference with Interstate Commerce by Robbery and one count of Using, Carrying, Possessing, and Brandishing a Firearm during a Crime of Violence for the October 25, 2017 CVS offense, and one count of D.C. Code First Degree Burglary While Armed for the May 16, 2012 offense. He will be sentenced on May 15, 2020, by the Honorable Judge Tanya S. Chutkan and is facing between eleven and fifteen years of imprisonment.
Moore was originally arrested in connection with the May 16, 2012, burglary after he forcibly entered the residence of a college student while wearing a black ski mask and carrying a gun. During a struggle in the residence between Moore and the victims, Moore shot two of the victims in the knee and foot. Moore left behind his black ski mask, yielding a DNA match.
While on pretrial release for the 2012 burglary, Moore and two accomplices participated in the armed robbery of the CVS. At approximately 11:30 p.m. on October 25, 2017, Moore and two accomplices drove to a CVS located at 4555 Wisconsin Avenue, Northwest, Washington, D.C. near American University. Moore and one of his accomplices entered the store, brandished firearms, and ordered store employees to provide access to the store’s safe, obtaining approximately $4,300 in cash before escaping in their accomplice’s getaway car. Within minutes, MPD officers who had responded to the 911 call from the store, observed the getaway car and attempted to pull it over. The vehicle fled at a high rate of speed, before it ultimately came to a stop in Northwest, D.C. Before the car stopped, Moore jumped out and fled on foot, dropping a bag full of money and two firearms.
In announcing the plea, U.S. Attorney Shea, and MPD Chief Newsham commended the work of those law enforcement officers who investigated the cases. They also cited the efforts of those who worked on the cases from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Lauren B. Goddard, Melissa Jackson, Gregory Rosen, Jason McCullough, and William Woodruff. They also thanked Paralegal Specialists Teesha Tobias and Katie Thomas, as well as Legal Assistants Kate Abrey and Emma Atlas.
Defense Department Linguist Charged with EspionageRead the Press Release
Mariam Taha Thompson, 61, formerly of Rochester, Minnesota, was charged today in the District of Columbia with transmitting highly sensitive classified national defense information to a foreign national with apparent connections to Hizballah, a foreign terrorist organization that has been so designated by the Secretary of State. According to the affidavit filed in support of a criminal complaint, the information Thompson gathered and transmitted included classified national defense information regarding active human assets, including their true names. By compromising the identities of these human assets, Thompson placed the lives of the human assets and U.S. military personnel in grave danger.
The announcement was made by John C. Demers, the Assistant Attorney General for National Security; Timothy J. Shea, the United States Attorney for the District of Columbia; Robert Wells, Acting Assistant Director of the FBI's Counterintelligence Division; and Timothy R. Slater, the Assistant Director in Charge of the Washington Field Office.
“While in a war zone, the defendant allegedly gave sensitive national defense information, including the names of individuals helping the United States, to a Lebanese national located overseas,” said Assistant Attorney General for National Security John C. Demers. “If true, this conduct is a disgrace, especially for someone serving as a contractor with the United States military. This betrayal of country and colleagues will be punished.”
“The conduct alleged in this complaint is a grave threat to national security, placed lives at risk, and represents a betrayal of our armed forces. The charges we’ve filed today should serve as a warning to anyone who would consider disclosing classified national defense information to a terrorist organization,” said U.S. Attorney Timothy J. Shea for the District of Columbia.
"This case shows the value of cooperation across the U.S. Government. Working closely with the Department of Defense, the FBI was able to investigate this willful disregard for keeping national defense information safe and partnered to bring the defendant to the United States to face justice," said Acting Assistant Director of the FBI's Counterintelligence Division Robert Wells.
“Today's announcement is a testament to the U.S. government's commitment to protecting the U.S. from the unauthorized disclosure of classified information that can put our country at serious risk of damage - damage to people and damage to our country's capabilities,” said Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office. “Human assets are the core of the U.S. government's intelligence, and they have our assurance that we will go above and beyond to protect them. I want to thank the men and women at the FBI and our partners here and abroad who answered the call to assist on this fast-moving investigation. The FBI is charged with protecting our nation's security and information for a safe and secure tomorrow for all Americans - we take this duty seriously and will not stand by while supposedly trusted individuals violate that trust in such an egregious way.”
Thompson was arrested by FBI Special Agents on February 27, 2020, at an overseas U.S. military facility, where she worked as a contract linguist and held a Top Secret government security clearance.
The investigation leading to this arrest revealed that starting on or about December 30, 2019, a day after U.S. airstrikes against Iranian-backed forces in Iraq, and the same day protesters stormed the U.S. embassy in Iraq to protest those strikes, audit logs show a notable shift in Thompson’s network activity on United States Department of Defense classified systems, including repeated access to classified information she had no need to access. Specifically, during a six-week period between December 30, 2019, and February 10, 2020, Thompson accessed dozens of files concerning human intelligence sources, including true names, personal identification data, background information, and photographs of the human assets, as well as operational cables detailing information the assets provided to the United States government.
A court-authorized search of Thompson’s living quarters on February 19, 2020, led to the discovery of a handwritten note in Arabic concealed under Thompson’s mattress. The note contained classified information from Department of Defense computer systems, identifying human assets by name, and warning a Department of Defense target who is affiliated with a designated foreign terrorist organization with ties to Hizballah. The note also instructed that the human assets’ phones should be monitored.
Thompson transmitted the classified information in the handwritten note to a co-conspirator, in whom she had a romantic interest. The FBI’s investigation revealed that Thompson knew the co-conspirator was a foreign national whose relative worked for the Lebanese government. The investigation also revealed that the co-conspirator has apparent connections to Hizballah. Further investigation revealed that, in a separate communication, Thompson also provided information to her co-conspirator identifying another human asset and the information the asset had provided to the United States, as well as providing information regarding the techniques the human assets were using to gather information on behalf of the United States.
In today’s Criminal Complaint, Thompson was charged with Delivering Defense Information to Aid a Foreign Government in violation of 18 U.S.C. § 794(a) and conspiring to do so in violation of 18 U.S.C. § 794(c).
Thompson is scheduled to make her initial appearance before United States Magistrate Judge Robin M. Meriweather later this afternoon. A Criminal Complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless proven guilty. If convicted, Thompson faces a maximum sentence of life in prison for violating § 794. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only. If convicted of any offense, the sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Trial Attorneys Jennifer Kennedy Gellie of the National Security Division’s Counterintelligence and Export Control Section, Jennifer Levy of the Counterterrorism Section, and Assistant United States Attorney for the District of Columbia John Cummings are prosecuting the case.
Defense Department Linguist Charged with EspionageRead the Press Release
WASHINGTON – Mariam Taha Thompson, 61, formerly of Rochester, Minnesota, was charged today in the District of Columbia with transmitting highly sensitive classified national defense information to a foreign national with apparent connections to Hizballah, a foreign terrorist organization that has been so designated by the Secretary of State. According to the affidavit filed in support of a criminal complaint, the information Thompson gathered and transmitted included classified national defense information regarding active human assets, including their true names. By compromising the identities of these human assets, Thompson placed the lives of the human assets and U.S. military personnel in grave danger.
The announcement was made by John C. Demers, the Assistant Attorney General for National Security; Timothy J. Shea, the United States Attorney for the District of Columbia; Robert Wells, Acting Assistant Director of the FBI's Counterintelligence Division; and Timothy R. Slater, the Assistant Director in Charge of the Washington Field Office.
“While in a war zone, the defendant allegedly gave sensitive national defense information, including the names of individuals helping the United States, to a Lebanese national located overseas,” said Assistant Attorney General for National Security John C. Demers. “If true, this conduct is a disgrace, especially for someone serving as a contractor with the United States military. This betrayal of country and colleagues will be punished.”
“The conduct alleged in this complaint is a grave threat to national security, placed lives at risk, and represents a betrayal of our armed forces. The charges we’ve filed today should serve as a warning to anyone who would consider disclosing classified national defense information to a terrorist organization,” said U.S. Attorney Timothy J. Shea for the District of Columbia.
"This case shows the value of cooperation across the U.S. Government. Working closely with the Department of Defense, the FBI was able to investigate this willful disregard for keeping national defense information safe and partnered to bring the defendant to the United States to face justice," said Acting Assistant Director of the FBI's Counterintelligence Division Robert Wells.
“Today's announcement is a testament to the U.S. government's commitment to protecting the U.S. from the unauthorized disclosure of classified information that can put our country at serious risk of damage - damage to people and damage to our country's capabilities,” said Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office. “Human assets are the core of the U.S. government's intelligence, and they have our assurance that we will go above and beyond to protect them. I want to thank the men and women at the FBI and our partners here and abroad who answered the call to assist on this fast-moving investigation. The FBI is charged with protecting our nation's security and information for a safe and secure tomorrow for all Americans - we take this duty seriously and will not stand by while supposedly trusted individuals violate that trust in such an egregious way.”
Thompson was arrested by FBI Special Agents on February 27, 2020, at an overseas U.S. military facility, where she worked as a contract linguist and held a Top Secret government security clearance.
The investigation leading to this arrest revealed that starting on or about December 30, 2019, a day after U.S. airstrikes against Iranian-backed forces in Iraq, and the same day protesters stormed the U.S. embassy in Iraq to protest those strikes, audit logs show a notable shift in Thompson’s network activity on United States Department of Defense classified systems, including repeated access to classified information she had no need to access. Specifically, during a six-week period between December 30, 2019, and February 10, 2020, Thompson accessed dozens of files concerning human intelligence sources, including true names, personal identification data, background information, and photographs of the human assets, as well as operational cables detailing information the assets provided to the United States government.
A court-authorized search of Thompson’s living quarters on February 19, 2020, led to the discovery of a handwritten note in Arabic concealed under Thompson’s mattress. The note contained classified information from Department of Defense computer systems, identifying human assets by name, and warning a Department of Defense target who is affiliated with a designated foreign terrorist organization with ties to Hizballah. The note also instructed that the human assets’ phones should be monitored.
Thompson transmitted the classified information in the handwritten note to a co-conspirator, in whom she had a romantic interest. The FBI’s investigation revealed that Thompson knew the co-conspirator was a foreign national whose relative worked for the Lebanese government. The investigation also revealed that the co-conspirator has apparent connections to Hizballah. Further investigation revealed that, in a separate communication, Thompson also provided information to her co-conspirator identifying another human asset and the information the asset had provided to the United States, as well as providing information regarding the techniques the human assets were using to gather information on behalf of the United States.
In today’s Criminal Complaint, Thompson was charged with Delivering Defense Information to Aid a Foreign Government in violation of 18 U.S.C. § 794(a) and conspiring to do so in violation of 18 U.S.C. § 794(c).
Thompson is scheduled to make her initial appearance before United States Magistrate Judge Robin M. Meriweather later this afternoon. A Criminal Complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt. The defendant is presumed innocent unless proven guilty. If convicted, Thompson faces a maximum sentence of life in prison for violating § 794. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes only. If convicted of any offense, the sentencing of a defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Trial Attorneys Jennifer Kennedy Gellie of the National Security Division’s Counterintelligence and Export Control Section, Jennifer Levy of the Counterterrorism Section, and Assistant United States Attorney for the District of Columbia John Cummings are prosecuting the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Two Chinese Nationals Charged with Laundering over $100 Million in Cryptocurrency from Exchange HackRead the Press Release
WASHINGTON – Two Chinese nationals were charged with laundering over $100 million worth of cryptocurrency from a hack of a cryptocurrency exchange. The funds were stolen by North Korean actors in 2018, as detailed in the civil forfeiture complaint also unsealed today.
In the two-count indictment unsealed today in the District of Columbia, 田寅寅 aka Tian Yinyin, and 李家东aka Li Jiadong, were charged with money laundering conspiracy and operating an unlicensed money transmitting business.
“The hacking of virtual currency exchanges and related money laundering for the benefit of North Korean actors poses a grave threat to the security and integrity of the global financial system,” said U.S. Attorney Timothy J. Shea of the District of Columbia. “These charges should serve as a reminder that law enforcement, through its partnerships and collaboration, will uncover illegal activity here and abroad, and charge those responsible for unlawful acts and seize illicit funds even when in the form of virtual currency.”
“North Korea continues to attack the growing worldwide ecosystem of virtual currency as a means to bypass the sanctions imposed on it by the United States and the United Nations Security Council. IRS-CI is committed to combatting the means and methods used by foreign and domestic adversaries to finance operations and activities that pose a threat to U.S. national security,” said IRS-CI Chief Don Fort. “We will continue to push our agency to the forefront of complex cyber investigations and work collaboratively with our law enforcement partners to ensure these nefarious criminals are stopped and that the integrity of the United States financial system is preserved.
“The FBI will continue to actively work with our domestic and international law enforcement partners to identify and mitigate illicit movement of currency,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “Today’s indictment and sanctions send a strong message that the United States will not relent in holding accountable bad actors attempting to evade sanctions and undermine our financial system.”
“This case shows how important robust partnerships across the U.S. Government are in disrupting criminal actors,” said Acting Assistant Director Robert Wells of the FBI’s Counterintelligence Division.
“This indictment shows what can be accomplished when international law enforcement agencies work together to uncover complex cross-border crimes,” said Acting Executive Associate Director Alysa Erichs of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “HSI is committed to upholding the rule of law and investigating those that would steal cryptocurrency for their illicit purposes.”
According to the pleadings, in 2018, North Korean co-conspirators hacked into a virtual currency exchange and stole nearly $250 million worth of virtual currency. The funds were then laundered through hundreds of automated cryptocurrency transactions aimed at preventing law enforcement from tracing the funds. The North Korean co-conspirators circumvented multiple virtual currency exchanges’ know-your-customer controls by submitting doctored photographs and falsified identification documentation. A portion of the laundered funds was used to pay for infrastructure used in North Korean hacking campaigns against the financial industry.
The pleadings further allege that between December 2017 and April 2019, Yinyin and Jiadong laundered over $100 million worth of virtual currency, which primarily came from virtual currency exchange hacks. The defendants operated through independent as well as linked accounts and provided virtual currency transmission services for a fee for customers. The defendants conducted business in the United States but at no time registered with the Financial Crimes Enforcement Network (FinCEN).
The pleadings further allege that the North Korean co-conspirators are tied to the theft of approximately $48.5 million worth of virtual currency from a South Korea-based virtual currency exchange in November 2019. As with the prior campaign, the North Korean co-conspirators are alleged to have laundered the stolen funds through hundreds of automated transactions and submitted doctored photographs and falsified identification documentation. The pleadings identify how the North Korean co-conspirators used infrastructure in North Korea as part of this campaign.
The civil forfeiture complaint specifically names 113 virtual currency accounts and addresses that were used by the defendants and unnamed co-conspirators to launder funds. The forfeiture complaint seeks to recover the funds, a portion of which has already been seized.
The charges in the pleadings are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) also imposed sanctions on Yinyin, Liadong, and numerous cryptocurrency addresses related to their involvement in activities facilitating North Korean sanctions evasion based on their services and support for malicious cyber enabled activities linked to North Korean actors.
The investigation was led by the IRS-CI, the FBI, and HSI. The Korean National Police of the Republic of Korea provided assistance and coordinated with their parallel investigation.
The cases are being handled by Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney David Recker of the National Security Division’s Counterintelligence and Espionage Section, and Assistant U.S. Attorneys Zia Faruqui and Christopher B. Brown, Paralegal Specialist Elizabeth Swienc, and Legal Assistant Jessica McCormick of the U.S. Attorney’s Office for the District of Columbia. Additional assistance has been provided by former Assistant U.S. Attorney Youli Lee.
Two Chinese Nationals Charged with Laundering over $100 Million in Cryptocurrency from Exchange HackRead the Press Release
Two Chinese nationals were charged with laundering over $100 million worth of cryptocurrency from a hack of a cryptocurrency exchange. The funds were stolen by North Korean actors in 2018, as detailed in the civil forfeiture complaint also unsealed today.
In the two-count indictment unsealed today in the District of Columbia, 田寅寅 aka Tian Yinyin, and 李家东aka Li Jiadong, were charged with money laundering conspiracy and operating an unlicensed money transmitting business.
“These defendants allegedly laundered over a hundred million dollars worth of stolen cryptocurrency to obscure transactions for the benefit of actors based in North Korea,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today's actions underscore that the Department will pierce the veil of anonymity provided by cryptocurrencies to hold criminals accountable, no matter where they are located.”
“Today, we are publicly exposing a criminal network’s valuable support to North Korea’s cyber heist program and seizing the fruits of its crimes,” said Assistant Attorney General John C. Demers of the Justice Department’s National Security Division. “This case exemplifies the commitment of the United States government to work with foreign partners and the worldwide financial services industry to disrupt this blended threat.”
“The hacking of virtual currency exchanges and related money laundering for the benefit of North Korean actors poses a grave threat to the security and integrity of the global financial system,” said U.S. Attorney Timothy J. Shea of the District of Columbia. “These charges should serve as a reminder that law enforcement, through its partnerships and collaboration, will uncover illegal activity here and abroad, and charge those responsible for unlawful acts and seize illicit funds even when in the form of virtual currency.”
“North Korea continues to attack the growing worldwide ecosystem of virtual currency as a means to bypass the sanctions imposed on it by the United States and the United Nations Security Council. IRS-CI is committed to combatting the means and methods used by foreign and domestic adversaries to finance operations and activities that pose a threat to U.S. national security,” said Internal Revenue Service-Criminal Investigation (IRS-CI) Chief Don Fort. “We will continue to push our agency to the forefront of complex cyber investigations and work collaboratively with our law enforcement partners to ensure these nefarious criminals are stopped and that the integrity of the United States financial system is preserved.”
“The FBI will continue to actively work with our domestic and international law enforcement partners to identify and mitigate illicit movement of currency,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “Today’s indictment and sanctions send a strong message that the United States will not relent in holding accountable bad actors attempting to evade sanctions and undermine our financial system.”
“This case shows how important robust partnerships across the U.S. Government are in disrupting criminal actors,” said Acting Assistant Director Robert Wells of the FBI’s Counterintelligence Division.
“This indictment shows what can be accomplished when international law enforcement agencies work together to uncover complex cross-border crimes,” said Acting Executive Associate Director Alysa Erichs of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI). “HSI is committed to upholding the rule of law and investigating those that would steal cryptocurrency for their illicit purposes.”
According to the pleadings, in 2018, North Korean co-conspirators hacked into a virtual currency exchange and stole nearly $250 million worth of virtual currency. The funds were then laundered through hundreds of automated cryptocurrency transactions aimed at preventing law enforcement from tracing the funds. The North Korean co-conspirators circumvented multiple virtual currency exchanges’ know-your-customer controls by submitting doctored photographs and falsified identification documentation. A portion of the laundered funds was used to pay for infrastructure used in North Korean hacking campaigns against the financial industry.
The pleadings further allege that between December 2017 and April 2019, Yinyin and Jiadong laundered over $100 million worth of virtual currency, which primarily came from virtual currency exchange hacks. The defendants operated through independent as well as linked accounts and provided virtual currency transmission services for a fee for customers. The defendants conducted business in the United States but at no time registered with the Financial Crimes Enforcement Network (FinCEN).
The pleadings further allege that the North Korean co-conspirators are tied to the theft of approximately $48.5 million worth of virtual currency from a South Korea-based virtual currency exchange in November 2019. As with the prior campaign, the North Korean co-conspirators are alleged to have laundered the stolen funds through hundreds of automated transactions and submitted doctored photographs and falsified identification documentation. The pleadings identify how the North Korean co-conspirators used infrastructure in North Korea as part of this campaign.
The civil forfeiture complaint specifically names 113 virtual currency accounts and addresses that were used by the defendants and unnamed co-conspirators to launder funds. The forfeiture complaint seeks to recover the funds, a portion of which has already been seized.
The charges in the pleadings are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) also imposed sanctions on Yinyin, Liadong, and numerous cryptocurrency addresses related to their involvement in activities facilitating North Korean sanctions evasion based on their services and support for malicious cyber enabled activities linked to North Korean actors.
The investigation was led by the IRS-CI, the FBI, and HSI. The Korean National Police of the Republic of Korea provided assistance and coordinated with their parallel investigation.
The cases are being handled by Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section, and Assistant U.S. Attorneys Zia Faruqui and Christopher B. Brown, Paralegal Specialists Brian Rickers, and Legal Assistant Jessica McCormick of the U.S. Attorney’s Office for the District of Columbia. Additional assistance has been provided by former Assistant U.S. Attorney Youli Lee.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
District Man Sentenced to 15 Years in Prison for the Murder of 79-Year-Old ManRead the Press Release
WASHINGTON – Malcolm Cunningham, 24, of Washington, D.C. was sentenced today by Judge Ronna Beck to 18 years’ incarceration, suspending all but 15 years of incarceration for the murder of his great grandmother’s common-law-husband, David Norwood, U.S. Attorney Timothy J. Shea announced. Cunningham previously pled guilty to one count of second degree murder while armed with a sentencing range of 12 to 18 years in prison.
The incident occurred on Easter Sunday 2017. Prior to the murder, Mr. Norwood and his wife (Cunningham’s great-grandmother) had allowed Cunningham to stay in their home for about a year. Two weeks before the murder, Mr. Norwood and Cunningham’s great grandmother finally kicked Cunningham out of the residence as a result of fights he was repeatedly having with other residents. On Easter morning, Cunningham snuck back into the residence where he found Mr. Norwood, alone. Cunningham argued with Mr. Norwood and then took a knife from the kitchen and stabbed him before fleeing the scene. Mr. Norwood remained in the home, injured, until family members found him hours later, unconscious and lying on the floor. A short time later Mr. Norwood died as a result of his injuries.
In announcing the sentence, U.S. Attorney Shea commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Lornce Applewhite and Alesha Matthews-Yette and Victim Witness Specialist Marcia Rinker. Finally, U.S. Attorney Shea commended the work of Assistant U.S. Attorney Michael Liebman who prosecuted the case.
District Man Found Guilty of Nationwide PCP Trafficking Conspiracy and Firearms ChargesRead the Press Release
WASHINGTON – Lamont Alvester Johnson, 43, of Washington, D.C., has been found guilty after a jury trial of conspiring to traffic in large quantities of Phencyclidine (PCP), possessing with the intent to distribute large quantities of PCP, possessing a firearm after having previously been convicted of a felony, and possessing a firearm in furtherance of a drug trafficking offense, announced U.S. Attorney Timothy J. Shea, FBI Assistant Director Timothy Slater, ATF Special Agent in Charge Ashan Benedict, Metropolitan Police Department Chief Peter Newsham, U.S. Park Police Chief Gregory Monahan, United States Chief Marshal Lamont Ruffin, and Prince George’s County Police Chief Henry Stawinski.
Johnson was found guilty on February 27, 2020, following a trial in the United States District Court for the District of Columbia before the Honorable Thomas F. Hogan. Sentencing is scheduled for June 11, 2020. Johnson faces a mandatory sentence of life imprisonment in light of his extensive criminal record, including prior convictions for crimes of violence while armed and drug trafficking.
According to the government’s evidence, which included court-authorized wiretaps, search warrants, GPS trackers, and undercover purchases of narcotics, Johnson was the main supplier of PCP to a drug trafficking ring that was indicted in an eight-co-defendant, 55-count indictment. Johnson was supplied gallon-quantities of PCP from West Coast suppliers, and he redistributed the PCP to other wholesale-level PCP suppliers in the District of Columbia. The evidence established that Johnson used threats and intimidation in his PCP trafficking operation, including with an AR-15 assault rifle that was seized from him along with over a kilogram of PCP and related drug trafficking paraphernalia. During the investigation, federal law enforcement officers seized approximately 2.5 kilograms of PCP; ¼ kilogram of heroin; ½ kilogram of cocaine; 50 grams of crack cocaine base; assorted drug trafficking paraphernalia; and firearms, including Johnson’s AR-15 assault rifle, laser scopes, ammunition, and high-capacity magazines.
In announcing the verdicts, U.S. Attorney Shea, FBI Assistant Director Timothy Slater, ATF Special Agent in Charge Ashan Benedict, U.S. Park Police Chief Gregory Monahan, United States Chief Marshal Lamont Ruffin, Chief Peter Newsham of the Metropolitan Police Department, and Prince George’s County Police Chief Henry Stawinski commended the work of the many dedicated people who worked tireless hours on the case, including Special Agents from the FBI’s Washington Field Office and the ATF’s Washington Field Division, Deputy U.S. Marshals, and officers with the Metropolitan Police Department and the U.S. Park Police. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney George Eliopoulos and Assistant U.S. Attorney Nihar Mohanty, who prosecuted the case, as well as Paralegals Rommel Pachoca and Katie Thomas and Legal Assistants Emma Atlas and Kate Abrey.
District Men Found Guilty of Armed Carjacking and Armed Robbery of 18-Year-Old ManRead the Press Release
WASHINGTON – Keith Baham, 20, and David McKinney, 19, of Washington, D.C., were found guilty by a jury today of armed carjacking, armed robbery, first-degree theft, and unauthorized use of vehicle, announced U.S. Attorney Timothy J. Shea. Baham was also convicted of two counts of Possession of a Firearm During a Crime of Violence.
Baham and McKinney were found guilty following a trial in the Superior Court of the District of Columbia in front of The Honorable J. Michael Ryan. The defendants remain detained pending sentencing, which is scheduled for May 1, 2020.
According to the government’s evidence, on February 25, 2019, Baham and McKinney had the 18-year-old victim drive to the 3100 block of Apple Road, N.E. Once there, Baham took out a gun and told the victim to drop everything and to hand over his belongings. While the victim was held at gunpoint, the men took the victim’s wallet, phone, and other personal items before fleeing the scene in the victim’s car.
In announcing the verdict, U.S. Attorney Shea commended the work of those investigating the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Victim/Witness Services Coordinator La June Thames; Paralegal Specialists Jessica Pierce, Sabrina Turner, and Debra McPherson; Victim Advocate Jennifer Clark; Supervisory IT Specialist Leif Hickling; and Investigative Analyst William Hamann.
Finally, he commended the work of Assistant U.S. Attorneys Rachel Forman and Kevin Birney, who prosecuted the case.
Two Former SunTrust Bank Employees Plead Guilty to Financial Exploitation of an Elderly PersonRead the Press Release
WASHINGTON – Rashad Liverpool, 27, and Robert Tillery, 44, pleaded guilty today of one count of Financial Exploitation of an Elderly Person or Vulnerable Adult. The two former SunTrust Bank employees defrauded a 72-year old widow with diminished capacity of over $80,000, announced U.S. Attorney Timothy J. Shea. Both defendants agreed to pay restitution as part of their plea and will be sentenced on April 28, 2020.
According to the government’s evidence, during the summer of 2018, Liverpool and Tillery would frequently visit the victim – a client of SunTrust Bank – after normal business hours and against bank policy. They identified funds that she held at Bank of America and took advantage of her diminished capacity in order to move these funds into accounts that they controlled. Liverpool moved $51,900 into a joint account that he created in his and the victim’s name at Capital One Bank. He used all of the funds for his own benefit including two trips to California and one trip to Miami. During the trip to Miami, Liverpool used the victim’s funds to stay at a beach front hotel, rent a red Ford Mustang, and purchase items from the mini bar. Meanwhile, Tillery withdrew $3,000 in cash from one of the victim’s accounts and wrote himself a check for $25,700 from another. He used these funds to make purchases at various outlet stores and move to Chicago. The scheme ended when the victim was hospitalized and a newly appointed Attorney-in-Fact discovered that the funds were missing.
In announcing the plea, U.S. Attorney Shea commended the work of the Metropolitan Police Department, specifically Detective Phillipe Moore from the Financial and Cyber Crimes Unit, as well as Investigator Jonathan Rich from the Office of the Attorney General for the District of Columbia, who investigated the case together. He also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Special Assistant U.S. Attorney Jennifer Mika, who is detailed from the Office of the Attorney General for the District of Columbia to handle financial crime cases involving elderly victims; Assistant U.S. Attorney Chimnomnso Kalu; former Assistant U.S. Attorney Michael Romano; and Supervisory Victim Witness Advocate Jennifer Clark.
This prosecution is part of the Office’s wider efforts to combat crimes against seniors. In 2018, the U.S. Attorney’s Office for the District of Columbia and the Office of the Attorney General for the District of Columbia simultaneously launched initiatives to address the abuse and exploitation of older adults. The Elder Abuse and Financial Exploitation Initiative at the U.S. Attorney’s Office expanded its response to criminal and civil violations targeting older adults. The initiative has enabled the U.S. Attorney’s Office to develop and coordinate further its prosecution of these cases and enhance its overall support of older or vulnerable victims. The team consists of experienced prosecutors and victim advocates from across the Office, to include the Superior Court, Criminal, and Civil Divisions, as well as the Victim Witness Assistance Unit. In 2019, the Office of the Attorney General for the District of Columbia also established an Elder Justice Section to better protect the District’s elders and vulnerable adults from financial exploitation through civil enforcement of the District’s financial exploitation law. This is the second outcome this month in a case involving elder financial exploitation that was handled jointly by the U.S. Attorney’s Office and the Office of the Attorney General.
District Man Pleads Guilty to Involuntary ManslaughterRead the Press Release
WASHINGTON – Edward Banks, 47, of Washington, DC pled guilty to one count of involuntary manslaughter. The incident occurred on August 18, 2019 at the homeless shelter located at 2700 Martin Luther King Avenue, SE, U.S. Attorney Timothy Shea announced.
Banks pled guilty on February 24, 2020, in the Superior Court of the District of Columbia. The plea calls for a sentence of five years in prison for killing the decedent. He will be sentenced on March 16, 2020 by the Honorable Juliet McKenna.
The defendant entered the homeless shelter in the early morning hours of August 18, 2019. At a certain point, the defendant was walking down a hallway in the shelter when he came upon the decedent, Mr. Abraham Weldemichael, who was standing outside the bathroom door. The defendant became angry at the decedent and took an aggressive posture towards Mr. Weldemichael. The defendant then punched Mr. Weldemichael in the face once and fled the scene. Mr. Weldemichael collapsed to the ground and did not move. Mr. Weldemichael’s unconscious body was on the ground for approximately six minutes until he was eventually discovered by security staff. Medical personnel arrived at the scene and Mr. Weldemichael was transported to George Washington Hospital. Upon arrival, he was admitted in critical condition and it was determined that he was suffering from swelling and bleeding in the brain. He eventually succumbed to his injuries and was pronounced dead on August 21, 2019 at 2:32 am.
In announcing the plea, U.S. Attorney Shea commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Lashone Samuels; Victim Witness Specialist Jennifer Allen and Investigative Analyst Zachary McMenamin.
Finally, U.S. Attorney Shea commended the work of Assistant U.S. Attorney Shehzad Akhtar who investigated and prosecuted the matter.
District Man Found Guilty of Assault with Intent to Kill While Armed for Shooting the New Boyfriend of His Ex-GirlfriendRead the Press Release
WASHINGTON – Jerel Ruffin, 39, of Washington, D.C., has been found guilty by a jury of thirty-three charges, including assault with intent to kill while armed, assault with a dangerous weapon, obstruction of justice, and contempt, for shooting the new boyfriend of his ex-girlfriend, announced U.S. Attorney Timothy J. Shea.
The verdict was returned on February 24, 2020, following a two-week trial in the Superior Court of the District of Columbia. The Honorable Anita Josey-Herring scheduled sentencing for May 1, 2020.
According to the government’s evidence, in the early evening hours of November 26, 2018, Ruffin went to the home of his ex-girlfriend, rang the doorbell, and waited outside when she did not answer. A short time later, the victim arrived at the house to pick up the woman for a date. Before the victim and the woman could leave in the victim’s car, Ruffin drove past their car on the street, made a U-turn, and pulled up window to window with the victim’s car. He then fired six shots at the victim’s car, striking the victim in the leg. Ruffin drove off and the woman drove the victim to the hospital, where his wounds required surgery.
The government’s evidence also showed that following Ruffin’s arrest on November 27, 2018, he embarked on near-constant attempts to contact the woman and other witnesses in the case to get them to change their testimony. Many of those communications were captured on recorded jail calls and were introduced as evidence in the trial.
Ruffin, who was in custody pending trial, remains held pending the sentencing.
In announcing the verdict, U.S. Attorney Shea commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Lu Lan; Paralegal Specialists Brenda Williams and Tiffany Fogle; and Criminal Investigator Nelson Rhone.
Finally, he commended the work of Assistant U.S. Attorneys Jennifer B. Loeb and Ryan Creighton, who investigated, indicted, and prosecuted the case at trial.
Chinese National Arraigned on Arms Export Control Act and Money Laundering ChargesRead the Press Release
WASHINGTON - On February 18, 2020, Cho Yan Nathan Man (Man) was arraigned on an indictment filed June 26, 2019, charging him with four counts of Unlawful Exports and Attempted Unlawful Exports of Defense Articles to Hong Kong, in violation of the Arms Export Control Act (AECA), 22 U.S.C. § 2778; and the International Trafficking in Arms Regulations (ITAR), 22 C.F.R. §§ 120-130 (Counts One through Four); and four counts of International Money Laundering, in violation of 18 U.S.C. §§ 1956(a)(2)(A) and (c)(7)(b)(v)(I) (Counts Five through Eight). The indictment, initially filed under seal, was unsealed at Man’s initial appearance and arraignment. Man was arrested in Switzerland on or about June 13, 2019, and extradited from Switzerland to the United States on or about February 14, 2020. The court has ordered Man detained pending trial.
The indictment alleges that, from in or around October 2018 to in or around January 2019, Man knowingly attempted to export, and/or caused the export of, the following items that have been determined to be United States Munitions List (USML) defense articles: (1) a pair of enhanced night vision goggles, which combines night vision and thermal imaging and which was manufactured by a U.S. company; (2) a Glare Mout Plus, which is a non-lethal visual disruption laser (also known as a dazzler) used to hail and warn individuals approaching a restricted or controlled area; (3) a target pointer illuminator aiming light, which is a laser that attaches to a rifle and is used for aiming that weapon; and (4) a four-prong muzzle adapter for a rifle that was manufactured by a U.S. company. The indictment further alleges that Man engaged in international money laundering in connection with each transaction by causing or attempting to cause a transfer or transmission of funds for the purchase of these items from Hong Kong to the sellers in the United States.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty. If convicted on any of the AECA charges, Man faces a maximum sentence of 20 years in prison, a fine of up to $1,000,000 or twice the pecuniary gain or loss of the offense, and three years of supervised release. If convicted of any of the money laundering charges, Man faces a maximum sentence of 20 years in prison; a fine of up to $500,000 or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater; and three years of supervised release.
This investigation is being conducted jointly by the Chicago Field Office of the Department of Homeland Security, Homeland Security Investigations, and the Chicago Resident Agency of the Defense Criminal Investigative Service. The case is being prosecuted by the National Security Section of the U.S. Attorney’s Office for the District of Columbia and the Counterintelligence and Export Control Section of the National Security Division of the Department of Justice.
United States Attorney's Office for the District of Columbia and the Attorney General for the District of Columbia Announce Joinder of Trials in Fatal Kennedy Street Row House FireRead the Press Release
WASHINGTON – Superior Court of the District of Columbia Judge Ronna L. Beck granted on Tuesday a motion filed by the U.S. Attorney’s Office for the District of Columbia and the District of Columbia Office of the Attorney General to join their separate prosecutions of defendant James G. Walker, 61, the former owner of a row house at 708 Kennedy Street, N.W. The defendant did not object to joining the cases against him. Walker was previously indicted by a grand jury and arraigned on two counts of second degree murder and two counts of involuntary manslaughter. He was also arraigned on 41 criminal fire and housing code violations.
The joinder of trials was announced by U.S. Attorney Timothy J. Shea; District of Columbia Attorney General Karl A. Racine; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge of the Washington Field Division Ashan M. Benedict; Chief of the Metropolitan Police Department (MPD) Peter Newsham; and Fire and EMS Chief Gregory M. Dean.
“The joinder of these cases for trial provides yet another opportunity for the U.S. Attorney’s Office for the District of Columbia and the Office of the Attorney General for the District of Columbia, along with our other local and federal partners, to join forces in the pursuit of justice on behalf of District residents,” said U.S. Attorney Timothy J. Shea for the District of Columbia.
"This prosecution demonstrates how the Office of the Attorney General fights every day for the safety and well-being of our most vulnerable residents," said Attorney General Karl A. Racine. These charges are the result of a comprehensive investigation and close partnership between our two respective offices. We are committed to bringing justice to this tragic case."
According to the indictment and related court documents, on August 18, 2019, Fitsum Kebebe, Yafet Solomen, and others resided at the row house on Kennedy Street owned by Walker. Although Walker used the row house as a boarding house, he did not have a certificate of occupancy for the building. During the morning of August 18, a fire broke out inside the row house. Kebebe and Solomen were in the basement at the time and were unable to exit the row house. They died from smoke inhalation. Following the indictment, Walker was arrested on January 15, 2020.
An indictment and an information are formal accusations of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless proven guilty. If convicted, Walker faces a maximum sentence of 30 years in prison, a fine of up to $250,000, and five years of supervised release. If convicted of the fire and housing code violations, Walker faces a maximum penalty of more than 10 years or fines exceeding $50,000.
In announcing the court’s joinder of the cases, U.S. Attorney Shea, D.C. Attorney General Racine, ATF SAC Benedict, MPD Chief Newsham, and Fire and EMS Chief Dean commended the work of the ATF Arson and Explosives Task Force that investigated the case, including MPD, ATF, and Fire and EMS. Finally, they acknowledged the work of Assistant U.S. Attorney Vinet Bryant and Assistant Attorneys General Keith Ingram and Jeffrey Cargill who are prosecuting the cases now joined for trial.
Maryland Man Sentenced to Sixteen Months in Prison for Carrying Out A Fraud Scheme and Making A False Statement to the FBIRead the Press Release
WASHINGTON – James Benjamin, 58, of Ellicott City, Maryland, was sentenced Tuesday to sixteen months in prison and ordered to pay $74,500 in restitution by U.S. District Judge Paul L. Friedman of the District of Columbia. Following his prison term, Benjamin will serve a term of three years of supervised release.
The announcement was made Tuesday, February 18, 2020 by U.S. Attorney Timothy J. Shea and Timothy M. Dunham, Special Agent in Charge, FBI Washington Field Office.
Previously, on March 28, 2019, Benjamin pled guilty to engaging in a scheme with intent to defraud, and to thereby unlawfully obtaining over $100,000 for his own personal enrichment. Benjamin also pled guilty to making a false statement to the FBI, after the FBI had seized approximately $450,000 that Benjamin had obtained from investors. In connection with the guilty plea, Benjamin admitted that he had falsely told the FBI that the $450,000 had been “held in trust” for the benefit of an investor, when in fact Benjamin kept the funds in his own bank account.
The case was prosecuted by Assistant U.S. Attorney Demian Ahn of the U.S. Attorney’s Office for the District of Columbia. The case was investigated and indicted by Assistant U.S. Attorneys Demian Ahn and Thomas Swanton, with assistance from Paralegal Specialists Jessica McCormick and Chela Okonji.
Virginia Man Sentenced to 24 Years in Prison for Killing Autistic Man and Home Health Aide in Northeast WashingtonRead the Press Release
WASHINGTON – Davon Payton, 29, of Alexandria Virginia, was sentenced today in the Superior Court of the District of Columbia by the Honorable Craig Iscoe to a period of twenty- four years of incarceration followed by five years of supervised release. Payton pled guilty on November 22, 2019, to two counts of second-degree murder while armed, one count of attempted robbery while armed, and an unrelated count of arson announced Timothy J. Shea, United States Attorney for the District of Columbia.
On October 9, 2019, at approximately 9:49 p.m., Payton entered the victims’ home under the guise of using the restroom. When he exited the restroom, he pulled out a firearm and attempted to rob the homeowner. In the process, he fatally shot the homeowner’s autistic grandson and his home health aide who, during the robbery, had attempted to flee with the other occupants of the home. Both victims were unarmed. About a month prior to the shooting, Payton was captured on surveillance footage at the Exxon Service Station and 7/11 Convenience Store, located in the area of 4665 and 4675 South Capitol St. SW, igniting a gas pump fuel nozzle with a lighter before fleeing the scene.
In announcing the sentence, United States Attorney Shea commended the work of those from the Metropolitan Police Department, the Bureau of Alcohol, Tobacco and Firearms Washington Field Office and the D.C. Fire and EMS who investigated the homicide and arson cases. He also acknowledged the efforts of those who worked on the case from the United States Attorney’s Office, including Paralegal Specialist Lornce Applewhite, Supervisory Victim/Witness Advocate Jennifer Allen, and Victim/Witness Program Specialist Lesley Slade.
Finally, U.S. Attorney Shea commended the efforts of Assistant U.S. Attorneys Lindsey Merikas and Sitara Witanachchi who assisted in investigating the cases and bringing them to a prompt and just resolution.
Two Former Personal Care Aides Sentenced to Prison for Defrauding MedicaidRead the Press Release
WASHINGTON – Temitope Oluwa-Bakare Ogunbiyi, 49, of Bowie, Maryland, was sentenced today to 15 months in prison for defrauding the District of Columbia’s Medicaid program out of more than $1 million. Yesterday, Rose Asang Gana, 40, of Greenbelt, Maryland, was sentenced to 13 months in prison for defrauding the program out of more than $400,000.
The announcement was made by U.S. Attorney Timothy J. Shea; Timothy M. Dunham, Special Agent in Charge of the FBI’s Washington Field Office; Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.; Daniel W. Lucas, Inspector General for the District of Columbia and Special Agent in Charge Mike McGill of the Social Security Administration Office of the Inspector General (SSA-OIG).
Ogunbiyi pled guilty to one count of health care fraud in August 2019. Today, the Honorable Thomas F. Hogan sentenced her to 15 months in prison. Following her prison term, she will be placed on three years of supervised release. In addition she was ordered to pay $1,071,247.12 in restitution and $575,462.03 in a forfeiture money judgment.
Gana pled guilty to one count of health care fraud in October 2019. Yesterday, the Honorable Carl J. Nichols sentenced her to 13 months in prison. She also will be placed on three years of supervised release following her prison term. She was ordered to pay $441,234.64 in restitution and $257,503.31 in a forfeiture money judgment.
Ogunbiyi worked as a personal care aid for 18 home health agencies at various times between January 2014 and September 2018. Gana worked for nine health agencies at various times between October 2013 and December 2018. The home health agencies employed Ogunbiyi and Gana to assist D.C. Medicaid beneficiaries in performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. Ogunbiyi and Gana were supposed to document the care they provided to the Medicaid beneficiaries on timesheets and then submit those timesheets to the home health agencies, which would in turn bill Medicaid for the services rendered.
Between January 2014 and September 2018, Ogunbiyi caused the D.C. Medicaid Program to issue payments totaling $1,071,247.12 for services that she did not render. Between October 2013 and December 2018, Gana caused the D.C. Medicaid Program to issue payments totaling $441,234 for services that she did not render.
As part of their individual fraud schemes, both women paid kickbacks to beneficiaries and submitted false timesheets to different home health agencies claiming to have provided personal care aide services that they did not provide. Ogunbiyi also caused Medicaid to be billed for services she claimed to provide in the District of Columbia when she was traveling outside the United States. As a result of their schemes, Ogunbiyi earned more than $500,000 in wages and Gana earned more than $250,000 in wages.
In announcing the plea, U.S. Attorney Shea, Special Agent in Charge Dunham, Special Agent in Charge Dixon of U.S. HHS-OIG, District of Columbia Inspector General Lucas and Special Agent in Charge McGill commended the work of those who investigated the case from the FBI’s Washington Field Office, the U.S. Department of Health and Human Services Office of Inspector General, and the District of Columbia Office of Inspector General. They also expressed appreciation for the work of Paralegal Specialist Mariela Andrade and former Paralegal Specialist Brittany Phillips. Finally, they commended the work of Assistant U.S. Attorney Kondi Kleinman and former Assistant U.S. Attorney Denise A. Simmonds, who prosecuted the cases.
District Man is Sentenced to 26 1/2 Years in Prison for the Murder of His GirlfriendRead the Press Release
WASHINGTON – Ronald Randolph, 42, of Washington, D.C. was sentenced today by Judge Todd Edelman to 26 ½ years in prison for the murder of his girlfriend, Shameka Jones, U.S. Attorney Timothy J. Shea announced. Randolph previously pled guilty to one count of second degree murder while armed with a sentencing range of 20 to 28 years in prison.
The incident occurred on July 22, 2017, less than one month after Randolph’s release from prison for another violent crime, around 8:30 a.m. Randolph and Ms. Jones had been in a romantic relationship for years, however, in the days leading up to the murder, Ms. Jones had expressed a desire to end the relationship. That morning, angry about the possibility that the relationship might end, Randolph shot Ms. Jones in the face. He then waited twenty minutes before calling 911 and confessing to the crime.
During the sentencing hearing, numerous statements were read that had been prepared by family members and friends describing the significant role Ms. Jones played in their lives as a sister, daughter, friend and mother. In imposing his sentence, Judge Edelman indicated that he considered Randolph’s significant prior criminal history, to include multiple convictions for crimes of violence and a prior conviction for second degree murder, and found there were few if any mitigating factors to consider.
In announcing the sentence, U.S. Attorney Shea commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Lead Paralegal Specialist Sharon Newman, Paralegal Specialists Stephanie Gilbert and Stephanie Siegerist, Victim Witness Specialist Jennifer Allen, and Investigative Analyst Zachary McMenamin. Finally, U.S. Attorney Shea commended the work of former Assistant U.S. Attorney Christopher Bruckmann who investigated and indicted the case and Assistant U.S. Attorneys Laura Bach and Jack Korba who prosecuted the matter.
District Man Sentenced to 19 1/2 Years in Prison for Second-Degree Murder While Armed in Northeast WashingtonRead the Press Release
WASHINGTON – Darius Murphy, 25, of Washington, D.C., was sentenced today to a period of nineteen-and-a-half years of incarceration for second-degree murder while armed announced Timothy J. Shea, United States Attorney for the District of Columbia, and Peter Newsham, Chief of the Metropolitan Police Department.
The defendant pled guilty in the Superior Court of the District of Columbia on September 13, 2019. He was sentenced by the Honorable Craig Iscoe. Following his prison term, he will serve five years of supervised release.
On February 22, 2019, at approximately 7:01 a.m., defendant Murphy fatally stabbed James Wood. Specifically, Mr. Wood was having a conversation with two men in the parking lot of the Capital Laundromat on Benning Road in Northeast. As Mr. Wood engaged in conversation with these two individuals, the defendant walked up behind him, grabbed him by the neck, and stabbed him several times, killing him. After stabbing Mr. Wood, the defendant fled on foot.
In announcing the sentence, United States Attorney Shea and Chief of Police Newsham commended the work of those who investigated the case from the Metropolitan Police Department, including Homicide Branch Detective Thomas O’Donnell. They also acknowledged the efforts of those who worked on the case from the United States Attorney’s Office, including Assistant United States Attorney George A. Pace, Jr., Paralegal Specialist Kelly Blakeney, and Victim/Witness Advocate Marcey Rinker.
Ohio Resident Charged with Operating Darknet-Based Bitcoin “Mixer,” which Laundered over $300 MillionRead the Press Release
An Ohio man was arrested for his operation of Helix, a Darknet-based cryptocurrency laundering service.
In the three-count indictment unsealed Feb. 11 in the District of Columbia, Larry Harmon, 36, of Akron, Ohio, was charged with money laundering conspiracy, operating an unlicensed money transmitting business and conducting money transmission without a D.C. license.
According to the indictment, Harmon operated Helix from 2014 to 2017. Helix functioned as a bitcoin “mixer” or “tumbler,” allowing customers, for a fee, to send bitcoin to designated recipients in a manner that was designed to conceal the source or owner of the bitcoin. Helix was linked to and associated with “Grams,” a Darknet search engine also run by Harmon. Harmon advertised Helix to customers on the Darknet as a way to conceal transactions from law enforcement.
“Helix allegedly laundered hundreds of millions of dollars of illicit narcotics proceeds and other criminal profits for Darknet users around the globe,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “This indictment underscores that seeking to obscure virtual currency transactions in this way is a crime, and that the Department can and will ensure that such crime doesn’t pay.”
“For those who seek to use Darknet-based cryptocurrency tumblers, these charges should serve as a reminder that law enforcement, through its partnerships and collaboration, will uncover illegal activity and charge those responsible for unlawful acts,” said U.S. Attorney Timothy J. Shea of the District of Columbia.
“The brazenness with which Helix operated should be the most appalling aspect of this operation to every day citizens. There are bad actors and then there are criminals who facilitate hundreds of other crimes,” said Don Fort, Chief, IRS Criminal Investigation. “The sole purpose of Harmon’s operation was to conceal criminal transactions from law enforcement on the Darknet, and because of our growing expertise in this area, he could not make good on that promise. Working in tandem with other sites, he sought to be the ‘go-to’ money launderer on the Darknet, but our investigators once again played the role of criminal disrupters, unraveling the interlinked web from one tentacle to another. We thank the Belizean authorities and other law enforcement agencies for their assistance on this case.”
“The perceived anonymity of cryptocurrency and the Darknet may appeal to criminals as a refuge to hide their illicit activity,” said Special Agent in Charge Timothy M. Dunham of the Criminal Division of the FBI Washington Field Office. “However, as this arrest demonstrates, the FBI and our law enforcement partners are committed to bringing the illegal practices of money launderers and other financial criminals to light and to justice, regardless of whether they are using new technological means to carry out their schemes.”
The indictment alleges that Helix moved over 350,000 bitcoin – valued at over $300 million at the time of the transactions – on behalf of customers, with the largest volume coming from Darknet markets. Helix partnered with the Darknet market AlphaBay to provide bitcoin laundering services for AlphaBay customers. AlphaBay was one of the largest Darknet marketplaces in operation at the time that it was seized by law enforcement in July 2017.
The charges in the indictment are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was led by the IRS-CI and the FBI’s Washington Field Office with assistance from the Financial Crimes Enforcement Network. The Department of Justice’s Office of International Affairs of the Criminal Division, the U.S. Attorney’s Office for the Northern District of Ohio, IRS Field Offices of Washington, D.C.; Cincinnati, Ohio; and Oakland, California; and the FBI’s Criminal Investigative Division and Field Offices of Cleveland, Ohio — Akron Resident Agency; Newark, New Jersey; and San Francisco, California — San Jose Resident Agency and the Department of State’s Diplomatic Security Service provided essential support for the operation.
Internationally, the Belize Ministry of the Attorney General and the Belize National Police Department simultaneously executed a search warrant of a residence allegedly leased by Harmon in Belize as U.S. authorities executed warrants in the United States. U.S. law enforcement agencies, coordinated by U.S. Embassy Belmopan, assisted in the Belize action. “These actions underscore the vital importance of working closely with our law enforcement partners in Belize to make both of our countries more safe and secure,” said U.S. Chargé d’Affaires, a.i. Keith Gilges.
Trial Attorneys S. Riane Harper and C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher B. Brown of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case. Additional assistance has been provided by Trial Attorneys Emily Siedell and Brian Nicholson of the Criminal Division’s Office of International Affairs, former CCIPS Trial Attorney W. Joss Nichols and Assistant U.S. Attorney Daniel Riedl of the Northern District of Ohio.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
Former Dentist Sentenced to 71 Months for Health Care FraudRead the Press Release
WASHINGTON – Bilal Ahmed, 47, of Potomac, Maryland, was sentenced to 71 months’ incarceration on February 10, 2020, having pled guilty to a federal charge of health care fraud stemming from a scheme in which he and others caused the District of Columbia’s Medicaid program to be defrauded out of more than $5 million. The Honorable Judge Colleen Kollar-Kotelly granted the parties’ joint request for a sentence that runs concurrently with a 16-year sentence that Ahmed currently is serving for sexually assaulting patients. The Court also ordered Ahmed to pay $5,421,227 in restitution and $3,978,879.93 in forfeiture.
The announcement was made Monday, February 10, 2020 by U.S. Attorney Timothy J. Shea, Timothy M. Dunham, Special Agent in Charge, FBI Washington Field Office, Criminal Division, Maureen R. Dixon, Special Agent in Charge of the U.S. Department of Health and Human Services Office of Inspector General, for the region that includes Washington, D.C., and Daniel W. Lucas, Inspector General for the District of Columbia.
Ahmed was indicted in January 2019, along with his former office manager, on one count of conspiracy to commit health care fraud, one count of health care fraud, and five counts of wire fraud. Ahmed pled guilty in the U.S. District Court for the District of Columbia to Count II of the Indictment and the remaining charges were dismissed at sentencing.
According to the statement of offense submitted to the Court at the time of the plea hearing, Ahmed was a practicing dentist who owned and operated Universal Smiles, a dental practice, in Northwest, Washington, D.C. When Ahmed’s dental license was suspended by the D.C. Dentistry Board, and subsequently was surrendered by him, Ahmed opened and operated Dental Equipment and Services (“DES”). DES was a Maryland company that employed dentists on contract to work at Universal Smiles’ former business location in the District of Columbia. According to court paperwork, through Universal Smiles and DES, Ahmed and his office manager engaged in a scheme to enrich themselves by defrauding D.C. Medicaid, a health care benefits program jointly funded by the federal government and the District of Columbia to provide health care services to residents who meet the income qualifying requirements. As part of the scheme, Ahmed applied to be a Medicaid provider. According to Ahmed’s admissions, once approved to bill Medicaid, he and the office manager sought to increase the dental practice’s profits by recruiting Medicaid recipients as patients and then then billing D.C. Medicaid for thousands of provisional crowns that were not provided to the patients. From August 9, 2012, through February 26, 2014, D.C. Medicaid paid Universal Smiles approximately $12.4 million; and it paid DES approximately $1.2 million from November 17, 2014, though February 1, 2016. According to court paperwork, more than one-third of the money paid out by D.C. Medicaid was for services that Ahmed’s dental offices did not provide.
The indictment remains pending with respect to Ahmed’s former office manager, who has pled not guilty and whose case is set for trial on June 1, 2020. An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the sentence, U.S. Attorney Shea, Special Agent in Charge Dunham, and Special Agent in Charge Dixon commended the work of those who investigated the case from the FBI’s Washington Field Office, the U.S. Department of Health and Human Services Office of Inspector General, and the District of Columbia’s Office of the Inspector General. They also expressed appreciation for the work of Paralegal Specialists Aisha Keys, Brittany Phillips, Lauren Hernandez and Amanda Rohde, Forensic Financial Analyst Bryan Snitselaar, and the D.C. OIG Medicaid Fraud Control Unit. Finally, they commended the work of Assistant U.S. Attorney Emily A. Miller, and former Assistant U.S. Attorneys Denise A. Simmonds, Michelle Bradford and Lionel Andre, who prosecuted the case.
District Woman Found Guilty of Financial Exploitation of an Elderly Vulnerable AdultRead the Press Release
WASHINGTON - Moureen Masika, 31, was found guilty on Monday, February 10, 2020, of one count of Financial Exploitation of an Elderly Person or Vulnerable Adult and three counts of Second-Degree Theft after a jury trial. The incidents were part of a fraud scheme perpetrated by Masika, a home health aide, on her patient, an 88-year-old man with dementia, announced U.S. Attorney Timothy J. Shea. This trial is the first involving the charge of Financial Exploitation of an Elderly Person or Vulnerable Adult in D.C. since the crime was passed into law in 2016. Sentencing is scheduled for March 9, 2020.
According to the government’s evidence, over the course of five months in 2018, Masika made 49 trips to CVS during which she obtained over $3,000 in cash using the victim’s debit card. To maximize the cash obtained, Masika would make multiple transactions back-to-back and request cash back at each transaction. Her fraud came to an abrupt end when the victim’s family confronted her.
In announcing the verdict, U.S. Attorney Shea commended the work of the Metropolitan Police Department, including the Financial and Cyber Crimes Unit, which investigated the case. He also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, including Special Assistant U.S. Attorney Jennifer Mika, who is detailed from the Office of the Attorney General for the District of Columbia to handle financial crime cases involving elderly victims; Assistant U.S. Attorneys Beth Kelley and Stephanie Miller; and paralegals Chad Byron and Antoinette Sakamsa.
This prosecution is part of the Office’s wider efforts to combat crimes against seniors. In 2018, the U.S. Attorney’s Office for the District of Columbia and the Office of the Attorney General for the District of Columbia simultaneously launched initiatives to address the abuse and exploitation of older adults. The Elder Abuse and Financial Exploitation Initiative at the U.S. Attorney’s Office expanded its response to criminal and civil violations targeting older adults. The initiative has enabled the U.S. Attorney’s Office to develop and coordinate further its prosecution of these cases and enhance its overall support of older or vulnerable victims. The team consists of experienced prosecutors and victim advocates from across the Office, to include the Superior Court, Criminal, and Civil Divisions, as well as the Victim Witness Assistance Unit. This prosecution marks the first time that the U.S. Attorney’s Office and the Office of the Attorney General have together prosecuted a case of this kind, and this collaboration is continuing.
District Man Found Guilty of First-Degree Murder in 2008 Killing of Silver Spring ManRead the Press Release
WASHINGTON – Mason Binion, 32, of Washington, D.C., was found guilty after a jury trial of first-degree murder while armed, announced U.S. Attorney Timothy J. Shea and Peter Newsham, Chief of the Metropolitan Police Department (MPD).
Binion was found guilty following a trial in the Superior Court of the District of Columbia in front of The Honorable Ronna Lee Beck. Sentencing is scheduled for May 1, 2020. Proctor faces a potential sentence of life in prison without parole.
According to the government’s evidence, on June 21, 2008, at approximately 12:30 a.m., Binion and three other individuals drove the victim, Michael F. Taylor, from a recreation center in Silver Spring to the 600 Block of Emerson Street, Northwest, Washington, D.C. Binion and Taylor had arranged for a large purchase of drugs, and Taylor had given the drug money to a middleman who then took off with the money. Searching for revenge, Binion and his associates drove into the alley, stopped the car in front of a detached garage behind 610 Farragut Street, and then shot Taylor in the back of the head, killing him.
In announcing the verdict, U.S. Attorney Shea and Chief Newsham commended the work of those investigating the case from the Metropolitan Police Department (MPD). They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Dan Lenerz and Jeff Pearlman; Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Victim/Witness Services Coordinator La June Thames; Administrative Services Specialists Tina Wall; Supervisory Budget Specialist Nikiya Burnett; Paralegal Meridith McGarrity; Victim Advocate Marcia Rinker; Supervisory IT Specialist Leif Hickling; and Investigative Analyst Zach McMenamin.
Finally, they commended the work of Assistant U.S. Attorneys Gilead Light and Michael Spence, who prosecuted the case.
American Businessman Who Ran Houston-Based Subsidiary of Chinese Company Sentenced to Prison for Theft of Trade SecretsRead the Press Release
The head of a Houston-based company that was the subsidiary of a Chinese company that developed stolen trade secrets was sentenced to 16 months in prison and ordered to forfeit more than $330,000 by U.S. District Judge Christopher R. Cooper of the District of Columbia.
Shan Shi, 55, of Houston, Texas, had previously been found guilty of conspiracy to steal trade secrets by a jury on July 29, 2019. Evidence admitted during a three-week trial showed that Shi had signed an agreement with Taizhou CBM Future New Material Science and Technology Co. Ltd (CBMF), to develop the manufacture of syntactic foam, which is a buoyancy material that aids in offshore oil and gas drilling. The defendant specifically pledged to “digest/absorb” the relevant technology in the United States. The defendant then set up a U.S.-based corporation, CBM International Inc., (CBMI) and hired ex-employees of a victim company that manufactured syntactic foam, located in Houston, Texas. These employees had access to trade secrets developed by the victim company, and the defendant was aware that they had signed agreements with the victim company not to disclose proprietary information. The other employees then transferred proprietary information to CBMI and the defendant, who used the information to create a syntactic foam manufacturing process in China.
The defendant was arrested along with five other individuals in the United States after he and CBMI attempted to market related-technology in the District of Columbia. An additional Chinese national living in China, Hui Huang, was also charged. The trial was solely of defendant Shi.
“The Department of Justice is committed to protecting the intellectual property of American companies, particularly against Chinese malign economic aggression,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “As Shan Shi’s prosecution demonstrates, we will steadfastly defend the right of U.S. entrepreneurs to reap the benefits of their innovations.”
“Yesterday’s sentencing underscores our determination to prosecute those who would steal trade secrets from American businesses and further misuse them for their own research and development,” said U.S. Attorney Timothy J. Shea for the District of Columbia. “The Court made clear that the defendant knew or intended that the offense would benefit the People’s Republic of China. To those who would steal proprietary information from U.S. companies and provide it to a foreign government, our message is that you will be prosecuted to the fullest extent of the law.”
“Shan Shi will now pay the consequences in prison for stealing trade secrets from a U.S. company for the benefit of China, while he himself also profited from that theft. This is just another example of the serious and growing threat the Chinese government poses to the United States and our industries,” said Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office. “Just as the People’s Republic of China is determined to steal from the United States, the FBI and DOJ is determined to protect America's national and economic security and intellectual property from unscrupulous foreign adversaries.”
The FBI’s Houston Field Office, Commerce’s Bureau of Industry and Security Office of Export Enforcement and IRS-Criminal Investigation investigated the case.
Senior Counsel Matthew R. Walczewski of the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section, Assistant U.S. Attorneys Jeff Pearlman, Luke Jones and Zia Faruqui of the District of Columbia, and former Special Assistant U.S. Attorney W. Joss Nichols prosecuted the case.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
American Businessman Who Ran Houston-Based Subsidiary of Chinese Company Sentenced to Prison for Theft of Trade SecretsRead the Press Release
WASHINGTON – The head of a Houston-based company that was the subsidiary of a Chinese company that developed stolen trade secrets was sentenced Monday to sixteen months in prison and ordered to forfeit $342,424.96 by U.S. District Judge Christopher R. Cooper of the District of Columbia.
Shan Shi, 55, of Houston, Texas, had previously been found guilty by a jury on July 29, 2019, of Conspiracy to Steal Trade Secrets. Evidence presented during a three-week trial established that Shi had entered into an agreement with Taizhou CBM Future New Material Science and Technology Co. Ltd (CBMF) to develop the manufacture of syntactic foam, which is a buoyancy material that aids in offshore oil and gas drilling. The defendant specifically pledged to build “China’s first deep[-]sea drilling buoyance [sic] material production line” by moving to “digest/absorb” the relevant, critical U.S. technology. The defendant then set up a U.S.-based corporation, CBM International, Inc., (CBMI) and hired ex-employees of a victim company that manufactured syntactic foam, located in Houston, Texas. These employees had access to trade secrets developed by the victim company, and the defendant was aware that they had signed agreements with the victim company not to disclose proprietary information. The former employees of the victim company then transferred proprietary information to CBMI and the defendant, who used the information to create a syntactic foam manufacturing process in China.
The government also entered into evidence that the defendant intended to benefit the People’s Republic of China (PRC) by developing the technology, and that after the technology was stolen, the defendant attempted to sell syntactic foam based on the stolen proprietary information to the China National Offshore Oil Corporation (CNOOC) and the People’s Liberation Army (PLA) of the PRC. The defendant was arrested along with five other individuals in the United States after he and CBMI attempted to market related-technology in the District of Columbia. An additional Chinese national living in China, Hui Huang, was also charged. Shi, defendant Gang Liu, CBMI, and CBMF were subsequently charged in a superseding indictment with Conspiracy to Commit Economic Espionage, in violation of 18 U.S.C. § 1831. Shi and CBMI and CBMF were additionally charged in the superseding indictment with Conspiracy to Commit Money Laundering, in violation of 18 U.S.C. § 1956(h). The jury found the defendant guilty of Conspiracy to Steal Trade Secrets, and acquitted on the remaining counts. The trial was solely of defendant Shi.
“Yesterday’s sentencing underscores our determination to prosecute those who would steal trade secrets from American businesses and further misuse them for their own research and development,” said U.S. Attorney Timothy J. Shea for the District of Columbia. “The Court made clear that the defendant knew or intended that the offense would benefit the People’s Republic of China. To those who would steal proprietary information from U.S. companies and provide it to a foreign government, our message is that you will be prosecuted to the fullest extent of the law.”
This case was investigated by the Houston Field Office of the Federal Bureau of Investigation, the Bureau of Industry and Security (BIS) Office of Export Enforcement of the U.S. Department of Commerce, and the Internal Revenue Service-Criminal Investigation (IRS-CI).
The case was prosecuted by Assistant U.S. Attorneys Jeff Pearlman, Luke Jones, Zia Faruqui, and former Special Assistant United States Attorney W. Joss Nichols of the District of Columbia; Senior Counsel Matthew R. Walczewski of the Computer Crime and Intellectual Property Section of the Criminal Division of the Department of Justice; and Trial Attorney David Recker of the National Security Division’s Counterintelligence and Export Control Section of the Department of Justice.
District Man Pleads Guilty to Second Degree Murder While Armed for 2018 Homicide Near Union StationRead the Press Release
WASHINGTON – MacArthur Venable, 34 of Washington, D.C. pled guilty to one count second degree murder while armed for killing one man by shooting at him multiple times in Northeast Washington. The incident occurred on October 31, 2018 when the defendant got into an argument with the decedent at the Unit block of Massachusetts Avenue, NE near the intersection of North Capitol Street, NW, U.S. Attorney Timothy Shea announced.
Venable pled guilty on February 6, 2020, in the Superior Court of the District of Columbia. The plea calls for a sentence of between fifteen to eighteen years in prison for killing the decedent. He will be sentenced on July 21, 2020, by the Honorable Anita Josey-Herring.
The incident occurred on October 31, 2018 at approximately 9:52 p.m. The defendant was walking down Massachusetts Avenue with another individual when he came upon the decedent, Mr. James Ferrell. The defendant then began to speak to Mr. Ferrell and an argument ensued. The argument between Mr. Ferrell and the defendant escalated and the defendant then walked up to the individual who he was walking with, reached into his waistband, and pulled out a firearm. The defendant then pointed the firearm at Mr. Ferrell and discharged the firearm four times. Mr. Ferrell was struck in his chest twice and subsequently ran across the street and collapsed in front of the Postal Museum. A witness called 911 and police and paramedics arrived at the scene. The decedent was transported to the Medstar Unit of the Washington Hospital Center. All life saving measures were unsuccessful and Mr. Ferrell was pronounced dead a short time later.
In announcing the plea, U.S. Attorney Shea commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department and also the U.S. Capitol Police. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Lashone Samuels; Victim Witness Specialist Marcia Rinker and Investigative analyst Zachary McMenamin.
Finally, U.S. Attorney Shea commended the work of Assistant U.S. Attorney Shehzad Akhtar who investigated and prosecuted the matter.
District Man Convicted of Sexually Assaulting Multiple Victims in Dupont Circle AreaRead the Press Release
WASHINGTON – Jamar Tillman, 36, of Washington, D.C., was convicted on Friday, January 31, 2020, by Judge Neil E. Kravitz of the Superior Court of the District of the Columbia for assaulting seven different female victims in less than an hour, including sexual assaults against six of those victims, U.S. Attorney Timothy J. Shea announced.
According to the government’s evidence—as presented to Judge Kravitz following the defendant’s waiver of his right to a jury trial—on April 3, 2019, the defendant assaulted his first victim in a parking garage near Dupont Circle by grabbing her hair and trying to pull her to the ground. The victim resisted, and the defendant fled the scene after bystanders responded to the victim’s cries. Over the course of the next forty-five minutes, the defendant sexually assaulted five additional women in the Dupont Circle area, grabbing or slapping their buttocks as he walked passed them. The defendant then sexually assaulted his final victim in a stairwell, pinning her to the ground and grabbing her vaginal area over her clothes. A police officer was alerted to that victim’s cries and interrupted the assault. The defendant then fled with the victim’s cellular phone and was arrested seconds later.
Judge Kravitz convicted the defendant of one count each of third degree sexual abuse, kidnapping, and robbery for the final victim, misdemeanor assault for attacking the first victim, and four counts of misdemeanor sexual abuse and one count of attempted misdemeanor sexual abuse for the other five victims. The defendant remains detained pending sentencing, which is scheduled for May 1, 2020.
In announcing the verdict, U.S. Attorney Shea stated that “Due to the swift action of police officers on the scene and the outstanding work of the investigative and prosecutorial teams, a dangerous predator has been taken off of the streets of D.C. The residents of the District are safer as a result of their efforts.” U.S. Attorney Shea specifically commended the work of the Metropolitan Police Department, including detectives with the Sexual Assault Unit, which investigated the case. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Tiffany Fogle and Victim/Witness Advocates Lorraine Chase, Karen Giannakoulias, Juanita Harris, and Tracy Owusu. Finally, he expressed appreciation for the work of Assistant U.S. Attorneys Ryan Creighton and Jocelyn Bond, who investigated and prosecuted the case, and Grace Richards, who assisted in investigating the case.
Arizona Man Pleads Guilty to Assaulting a Federal Officer in a Restricted Area Outside of Federal Court in Washington, D.C.Read the Press Release
WASHINGTON - United States Attorney for the District of Columbia Timothy J. Shea, and Chief Deputy U.S. Marshal Lamont Ruffin, of the U.S. Marshals Service (USMS), announced that Kyle Piunti, 31, of Arizona, pled guilty on Friday, January 31, 2020, to Assaulting, Resisting, or Impeding Certain Officers or Employees, before United States District Court Chief Judge Beryl A. Howell.
Chief Judge Howell will sentence Piunti, on April 10, 2020. At sentencing, Piunti faces a term of incarceration and up to three years of supervised release for the charge. The Court ordered that Piunti be held without bond pending his sentencing.
According to the government’s evidence, on August 21, 2019, at approximately 7:40 p.m., an on-duty Court Security Officer, who is designated a federal officer, observed the defendant inside of a USMS vehicle located inside the restricted parking lot of the United States District Court. The Court Security Officer told the defendant to get out of the vehicle and the restricted parking lot area. The defendant became aggressive, and began to assault the Court Security Officer. During the assault, the defendant pushed the Officer to the ground; the Officer was immediately taken to the hospital for treatment for a severe ankle injury which subsequently required surgical treatment to repair the damage caused by the defendant. The defendant ran from the restricted area before he was ultimately apprehended several blocks away.
In announcing the plea, U.S. Attorney Shea and Chief Deputy U.S. Marshal Ruffin commended the work of those who investigated the case from the U.S. Marshals Service. They expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialist Teesha Tobias, Rommel Pachoca, and Legal Assistant Kate Abrey. Finally, they commended the work of Assistant U.S. Attorney Emory V. Cole who investigated and prosecuted the case.