District of Columbia

WASHINGTON – Brian Johnson, 35, of Washington, D.C., pled guilty today for his role in defrauding Howard University out of more than $100,000, announced Acting U.S. Attorney Michael R. Sherwin and James A. Dawson, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Washington Field Office’s Criminal Division.

            Johnson pled guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 371, in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum sentence of five years in prison. Under federal sentencing guidelines, Johnson faces a likely recommended sentence of 10 to 16 months in prison.  The plea agreement calls for Johnson to pay $107,697.75 in restitution and $53,849 in a forfeiture money judgment.

            According to the statement of offense filed with the Court, Johnson earned a Bachelor of Science degree and a Master of Business Administration from Howard University. From 2011 through 2016, he worked in the school’s Financial Aid Office. He served as the Associate Director of Financial Aid from 2014 through August 2016. In the fall of 2016, a co-conspirator, who worked at Howard from 2011 through 2017 in the Financial Aid Office and then the Bursar’s Office, proposed a scheme to Johnson in which the co-conspirator would cause fraudulently-obtained money to be sent from Howard University to Johnson, with Johnson then kicking back half of the proceeds to the co-conspirator. As part of the scheme, the co-conspirator applied fraudulent financial aid awards onto Johnson’s student profile even though he was no longer a student or employed at the school. As a result, the co-conspirator caused the University to issue $107,697.75 to Johnson’s bank account between November 2016 and May 2017. Johnson admitted sharing half of the fraud proceeds with the co‑conspirator in the form of cash or electronic payments.

            Chief Judge Beryl A. Howell accepted Johnson’s guilty plea and scheduled his sentencing for September 25, 2020.

            In announcing the plea, Acting U.S. Attorney Sherwin and Special Agent in Charge Dawson commended the work of those from the FBI’s Washington Field Office who are involved in this ongoing investigation. 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 J. Kleinman.

WASHINGTON – Edward Banks, 47 of Washington, D.C. was sentenced today to five years of incarceration for involuntary manslaughter.  The announcement was made by the Acting United States Attorney, Michael R. Sherwin and Peter Newsham, Chief of the Metropolitan Police Department (MPD). 

            On February 24, 2020, Banks pled guilty in the Superior Court of the District of Columbia on one count of Involuntary Manslaughter.  He was sentenced by the Honorable Juliet McKenna on July 17, 2020.  Following his prison term, he will serve five years of supervised release.    

            On August 18, 2019, the defendant entered a homeless shelter located at 2700 Martin Luther King Avenue, SE.  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. 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 sentence, Acting U.S. Attorney Sherwin 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 Assistant United States Attorney Shehzad Akhtar, Paralegal Specialists Lashone Samuels; Victim Witness Specialist Jennifer Allen and Investigative Analyst Zachary McMenamin.

WASHINGTON – Essentra FZE Company Limited (“Essentra FZE”), a global supplier of cigarette products that is incorporated in the United Arab Emirates (“UAE”), has agreed to pay a $665,112 fine and enter into a deferred prosecution agreement with the Justice Department for conspiring to violate the International Emergency Economic Powers Act (“IEEPA”) and defrauding the United States in connection with evading sanctions on North Korea.  Today’s public filing against Essentra FZE is the first ever DOJ corporate enforcement action for violations of these regulations.  Essentra FZE has also entered into a settlement agreement with the Treasury Department’s Office of Foreign Assets Control (“OFAC”).

            Assistant Attorney General John C. Demers for the Justice Department’s National Security Division, Acting U.S. Attorney Michael R. Sherwin of the District of Columbia, and Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Field Office made the announcement.

            In entering the deferred prosecution agreement, Essentra FZE admitted and accepted responsibility for its criminal conduct and to pay a fine.  Essentra FZE also agreed to implement rigorous internal controls and to cooperate fully with the Justice Department, including by reporting any criminal conduct by an employee.

            “The sanctions the United States has imposed on the North Korean regime are of the utmost importance to the national security of our nation, and the enforcement of U.S. sanctions and related financial criminal laws is a major priority of the National Security Division” said Assistant Attorney General for National Security John C. Demers.  “Essentra FZE devised a criminal scheme to use a deceitful web of front companies and financial entities to manipulate U.S. banks into processing prohibited U.S. dollar transactions for the benefit of North Korea.  The company has now committed to working with our prosecutors to bring those individuals responsible for these acts to justice.”

            “Essentra FZE undermined the integrity of our financial system and harmed our national security by deliberately providing North Korea with coveted access to the U.S. economy,” said Acting U.S. Attorney Sherwin.  “Foreign companies transacting through the U.S. financial system or overseas branches of U.S. banks must comply with U.S. sanctions or else face punishment.”

            "This is an important case as it demonstrates the FBI will not hesitate to hold businesses accountable for violating sanctions involving North Korea," said Alan E. Kohler, Jr, Assistant Director of the FBI's Counterintelligence Division. "We will aggressively go after enterprises using front companies, false documents, or other illegal methods to evade sanctions. We want North Korea and private industry to know that efforts to dodge our laws will never be tolerated as business as usual."

            “Today’s agreement shows that attempts to skirt U.S. sanctions, no matter how complicated the trail or how complex the scheme, will be discovered and met with serious consequences,” said Jennifer Boone, Special Agent in Charge of the FBI’s Baltimore Division. “I want to thank the FBI team. This result is a testament to their hard work.” 

            U.S. sanctions prevented correspondent banks in the United States and overseas branches of U.S. banks from processing wire transfers on behalf of customers located in North Korea. According to admissions and court documents, beginning in at least October 2017 and continuing until at least December 2018, Essentra FZE deceived banks in the U.S. and in the U.A.E. into processing transactions for a North Korean tobacco company.  Essentra FZE and its co-conspirators utilized financial cutouts and front companies to conceal the North Korean nexus, as well as falsified shipping records.

            Assuming Essentra FZE’s continued compliance with the deferred prosecution agreement, the government has agreed to defer prosecution for a period of three years, after which time, the government would seek to dismiss the charges.

Essentra FZE Company Limited (Essentra FZE), a global supplier of cigarette products that is incorporated in the United Arab Emirates (UAE), has agreed to pay a $665,112 fine and enter into a deferred prosecution agreement with the Justice Department for conspiring to violate the International Emergency Economic Powers Act (IEEPA) and defrauding the United States in connection with evading sanctions on North Korea.  

Today’s public filing against Essentra FZE is the first ever Department of Justice corporate enforcement action for violations of these regulations.  Essentra FZE has also entered into a settlement agreement with the Treasury Department’s Office of Foreign Assets Control (OFAC).

Assistant Attorney General John C. Demers for the Justice Department’s National Security Division, Acting U.S. Attorney Michael R. Sherwin of the District of Columbia, and Special Agent in Charge Jennifer C. Boone of the FBI’s Baltimore Field Office made the announcement.

In entering the deferred prosecution agreement, Essentra FZE admitted and accepted responsibility for its criminal conduct and to pay a fine.  Essentra FZE also agreed to implement rigorous internal controls and to cooperate fully with the Justice Department, including by reporting any criminal conduct by an employee.

“The sanctions the United States has imposed on the North Korean regime are of the utmost importance to the national security of our nation, and the enforcement of U.S. sanctions and related financial criminal laws is a major priority of the National Security Division” said Assistant Attorney General for National Security John C. Demers.  “Essentra FZE devised a criminal scheme to use a deceitful web of front companies and financial entities to manipulate U.S. banks into processing prohibited U.S. dollar transactions for the benefit of North Korea.  The company has now committed to working with our prosecutors to bring those individuals responsible for these acts to justice.”

“Essentra FZE undermined the integrity of our financial system and harmed our national security by deliberately providing North Korea with coveted access to the U.S. economy,” said Acting U.S. Attorney Sherwin.  “Foreign companies transacting through the U.S. financial system or overseas branches of U.S. banks must comply with U.S. sanctions or else face punishment.”

“This is an important case as it demonstrates the FBI will not hesitate to hold businesses accountable for violating sanctions involving North Korea,” said Alan E. Kohler Jr, Assistant Director of the FBI's Counterintelligence Division.   “We will aggressively go after enterprises using front companies, false documents, or other illegal methods to evade sanctions. We want North Korea and private industry to know that efforts to dodge our laws will never be tolerated as business as usual.”

 “Today’s agreement shows that attempts to skirt U.S. sanctions, no matter how complicated the trail or how complex the scheme, will be discovered and met with serious consequences,” said Jennifer Boone, Special Agent in Charge of the FBI’s Baltimore Division.  “I want to thank the FBI team.  This result is a testament to their hard work.” 

U.S. sanctions prevented correspondent banks in the United States and overseas branches of U.S. banks from processing wire transfers on behalf of customers located in North Korea.  According to admissions and court documents, beginning in at least October 2017 and continuing until at least December 2018, Essentra FZE deceived banks in the U.S. and in the U.A.E. into processing transactions for a North Korean tobacco company.  Essentra FZE and its co-conspirators utilized financial cutouts and front companies to conceal the North Korean nexus, as well as falsified shipping records.

Assuming Essentra FZE’s continued compliance with the deferred prosecution agreement, the government has agreed to defer prosecution for a period of three years, after which time, the government would seek to dismiss the charges.

WASHINGTON – Micah Avery, 26, of Washington, D.C., was indicted today in federal court on charges of destruction of federal property for spray-painting the Lincoln Memorial last month, announced Acting U.S. Attorney for the District of Columbia Michael R. Sherwin and Acting Chief of the United States Park Police (USPP) Gregory T. Monahan.

            The federal grand jury returned an indictment that alleges that on the afternoon of May 30, 2020, officers with the U.S. Park Police witnessed Avery graffiti the words “Yall not tired yet?” with black spray paint on the Lincoln Memorial (see photo below).  Avery fled as the officers approached him.   After a chase, officers apprehended and handcuffed Avery.  Officers attempted to put the defendant into a patrol car, but he resisted their attempts.  A crowd converged on the officers and began pushing and striking the officers.  During this melee, Avery broke free and ran away.  One of the officers sustained an injury to his hand.  A look-out was broadcast, and Avery was located shortly thereafter by other officers back at the Lincoln Memorial, still wearing the handcuffs.

            An indictment 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.

            “Defacing one of our country’s national monuments will not be tolerated,” said Acting U.S. Attorney Michael R. Sherwin.

            In announcing the indictment, Acting U.S. Attorney Sherwin and Acting Chief Monahan commended the work of the USPP officers who apprehended Avery and are investigating the incident.  The case is being prosecuted by Assistant U.S. Attorney James B. Nelson of the U.S. Attorney’s Office for the District of Columbia.

The owner of a residential construction contracting firm based in Washington, D.C., was charged with allegedly submitting fraudulent documents to a bank in connection with applications seeking more than $400,000 in a forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division, Acting U.S. Attorney Michael R. Sherwin for the District of Columbia, Special Agent in Charge James A. Dawson of the FBI Washington Field Office’s Criminal Division, Inspector General Hannibal “Mike” Ware of the Small Business Administration's Office of Inspector General (SBA OIG), and J. Russell George, the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.     

Oludamilare Olugbuyi, 40, of Washington, D.C., was charged in a federal criminal complaint filed in the District of Columbia with making false statements to a financial institution.  According to the complaint, Olugbuyi submitted several fake and fraudulent documents to a financial institution in support of two PPP loan applications seeking more than $400,000 in forgivable loans for a construction firm that he owned.  Specifically, Olugbuyi submitted what purported to be several IRS Forms 1099-MISC reporting hundreds of thousands of dollars in disbursements made to independent contractors. 

The complaint alleges that the social security numbers reflected on the forms were either invalid or assigned to other people.  In addition, Olugbuyi allegedly submitted to the financial institution what purported to be a tax return reporting $175,565 in adjusted gross income for tax year 2019.  According to IRS records, however, on April 14, 2020, Olugbuyi filed an IRS Form 1040 reporting $1 in total income for 2019.  This document, known as a “non-filer return,” qualified Olugbuyi to receive a $1,200 Coronavirus Aid, Relief, and Economic Security Act (CARES) economic impact payment.         

The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic.  One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent.  PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities.  The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.   

A federal criminal complaint is merely an accusation.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

Deputy Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christine Macey are prosecuting the case.  The Justice Department acknowledges and thanks the FBI, TIGTA, and the SBA OIG for their efforts investigating this matter. 

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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.

WASHINGTON – Jerritt Jeremy Pace, 39, of Washington, D.C., was indicted today by a federal grand jury, charging him with multiple offenses related to his attempt to burn down a police precinct, announced Acting U.S. Attorney Michael R. Sherwin; Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Ashan M. Benedict; and Chief of the Metropolitan Police Department (MPD) Peter Newsham.

            Pace was arrested on May 29, 2020. On June 11, 2020, Pace was charged by Criminal Complaint with receiving an explosive in interstate commerce, using an instrumentality of interstate commerce to threaten the use of explosives, and attempted arson. On June 12, 2020, the Honorable U.S. Magistrate Judge Robin M. Meriweather held Pace without bond pending trial. Today, a federal grand jury returned an Indictment against Pace charging him with three federal arson and explosives offenses.

            The Criminal Complaint and Indictment stem from an incident on or about May 29, 2020, when Pace announced on social media his intent to burn down a police station. Pace encouraged rioting against law enforcement and suggested that his followers go to MPD’s Fourth District Station, located at 6001 Georgia Avenue N.W., Washington, D.C., to burn the station and “riot with the rest of the nation.” That morning, around 6 o’clock, Pace filled a plastic laundry detergent container with gasoline and a wick and ignited it in front of the Fourth District Station. Although the physical building remained unharmed and no one was injured, the container exploded and burned on the sidewalk. Pace was immediately apprehended by an off-duty detective and police officer.

            Both the Criminal Complaint and the Indictment are formal accusations of criminal conduct, not evidence of guilt. A defendant is presumed innocent unless proven guilty.  If convicted, Pace faces a maximum sentence of 10 years in prison for each count, a fine of up to $250,000, and three years of supervised release.

            “While the United States Attorney’s Office for the District of Columbia acknowledges the First Amendment right of individuals to protest peacefully, conduct that poses a grave risk to law enforcement, peaceful protestors, and community members alike will be prosecuted,” said Acting U.S. Attorney Michael R. Sherwin. “The quick investigative efforts of ATF and MPD thwarted a dangerous person’s attempt to use a makeshift gasoline bomb to potentially cause – in addition to property damage – serious bodily harm or death to law enforcement officers and members of our community.”

            “Today’s indictment is a testament to the dedicated investigative work of the ATF/DC Arson & Explosives Task Force, in partnership with the Metropolitan Police Department and DC Fire Department. Swift identification of violent offenders is key to stopping criminal acts that can destroy property, harm people, and take lives,” said ATF Washington Special Agent in Charge Ashan Benedict. “ATF will continue to work closely with our law enforcement partners to ensure the safety of our communities and the officers who serve them.”

            In announcing the Indictment, Acting U.S. Attorney Sherwin, Special Agent in Charge Benedict, and Chief Newsham commended the work of those who investigated the case. Finally, they cited 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. Attorneys James B. Nelson and Christopher A. Berridge, Paralegal Specialist Candace Battle, and Legal Assistants Peter Gaboton and Teesha Tobias.

WASHINGTON – A forfeiture complaint and warrant were filed in the U.S. District Court for the District of Columbia alleging that all petroleum-product cargo aboard the Bella with international maritime organization (IMO) number 9208124, the Bering with IMO number 9149225, the Pandi with IMO number 9105073, and the Luna with IMO number 9208100 are subject to forfeiture based on the terrorism forfeiture statute.

            John Demers, Assistant Attorney General, National Security Division; Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia; Steven W. Cagen, Special Agent in Charge, Denver, Colorado, Homeland Security Investigations (HSI); Rainer S. Drolshagen, Special Agent in Charge, Minneapolis, Minnesota, Federal Bureau of Investigation, made the announcement today.

            The documents allege a scheme involving multiple parties affiliated with the IRGC to covertly ship Iranian gasoil, obtained via ship-to-ship transfers, to Venezuela.  The shipments are alleged to be a “source of influence” for the Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization.  The documents allege that profits from petroleum sales support the IRGC’s full range of nefarious activities, including the proliferation of weapons of mass destruction and their means of delivery, support for terrorism, and a variety of human rights abuses, at home and abroad.  There are approximately 302,502 barrels of Iranian gasoline currently on board the Bella, approximately 302,522 barrels of Iranian gasoline currently on board the Bering, approximately 259,700 barrels of Iranian gasoline currently on board the Luna, and approximately 298,484 barrels of Iranian gasoline currently on board the Pandi.  United States District Judge James E. Boasberg issued a warrant to seize all Iranian gasoline on these four vessels, based on a probable cause showing of forfeitability.  The warrant commands the property to be brought to the sole jurisdiction of the U.S. District Court for the District of Columbia. 

            A warrant for arrest and civil forfeiture complaint are merely allegations.  The burden to prove forfeitability in a civil forfeiture proceeding is upon the government.  Funds successfully forfeited based on terrorism authorities are in part directed to the United States Victims of State Sponsored Terrorism Fund (http://www.usvsst.com/).

            In announcing the forfeiture complaint, Assistant Attorney General Demers, Acting U.S. Attorney Sherwin, Special Agent in Charge Cagen, and Special Agent in Charge Drolshagen commended the work of those who investigated the case from HSI and FBI.  Finally, they acknowledged the work of Assistant U.S. Attorneys Zia Faruqui, Brian Hudak, and Stuart Allen; National Security Division, Counterintelligence and Export Control Section, Deputy Chief Elizabeth Cannon and Trial Attorney David Lim; and United States Attorney’s Office for the District of Columbia Paralegal Liz Swienc and Legal Assistant Jessica McCormick.

A forfeiture complaint and warrant were filed in the U.S. District Court for the District of Columbia alleging that all petroleum-product cargo aboard the Bella with international maritime organization (IMO) number 9208124, the Bering with IMO number 9149225, the Pandi with IMO number 9105073, and the Luna with IMO number 9208100 are subject to forfeiture based on the terrorism forfeiture statute.

John C. Demers, Assistant Attorney General, National Security Division; Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia; Steven W. Cagen, Special Agent in Charge, Denver, Colorado, Homeland Security Investigations (HSI); Rainer S. Drolshagen, Special Agent in Charge, Minneapolis, Minnesota, Federal Bureau of Investigation, made the announcement today.

The documents allege a scheme involving multiple parties affiliated with the IRGC to covertly ship Iranian gasoil, obtained via ship-to-ship transfers, to Venezuela.  The shipments are alleged to be a “source of influence” for the Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization.  The documents allege that profits from petroleum sales support the IRGC’s full range of nefarious activities, including the proliferation of weapons of mass destruction and their means of delivery, support for terrorism, and a variety of human rights abuses, at home and abroad.  There are approximately 302,502 barrels of Iranian gasoline currently on board the Bella, approximately 302,522 barrels of Iranian gasoline currently on board the Bering, approximately 259,700 barrels of Iranian gasoline currently on board the Luna, and approximately 298,484 barrels of Iranian gasoline currently on board the Pandi.  United States District Judge James E. Boasberg issued a warrant to seize all Iranian gasoline on these four vessels, based on a probable cause showing of forfeitability.  The warrant commands the property to be brought to the sole jurisdiction of the U.S. District Court for the District of Columbia. 

A warrant for arrest and civil forfeiture complaint are merely allegations.  The burden to prove forfeitability in a civil forfeiture proceeding is upon the government.  Funds successfully forfeited based on terrorism authorities are in part directed to the the United States Victims of State Sponsored Terrorism Fund (http://www.usvsst.com/).

In announcing the forfeiture complaint, Assistant Attorney General Demers, Acting U.S. Attorney Sherwin, Special Agent in Charge Cagen, and Special Agent in Charge Drolshagen commended the work of those who investigated the case from HSI and FBI.  Finally, they acknowledged the work of Assistant U.S. Attorneys Zia Faruqui, Brian Hudak, and Stuart Allen; National Security Division, Counterintelligence and Export Control Section, Deputy Chief Elizabeth Cannon and Trial Attorney David Lim; and U.S. Attorney’s Office for the District of Columbia Paralegal Liz Swienc and Legal Assistant Jessica McCormick.

WASHINGTON – Jason Charter, 25, of Washington, D.C., was arrested and charged by Criminal Complaint today with destruction of federal property, announced Michael R. Sherwin, Acting U.S. Attorney; James A. Dawson, Special Agent in Charge of the Criminal Division of the Washington Field Office of the Federal Bureau of Investigation (FBI); and Gregory T. Monahan, Acting Chief of the United States Park Police (USPP).

            The complaint alleges that on June 20, 2020, Charter, together with other individuals, destroyed the Albert Pike statue in Northwest, Washington, D.C., by pulling it from its base and setting it on fire.  The complaint alleges that Charter was captured on video dousing the statue with a flammable liquid and then igniting it as it lay on the ground.  Charter is depicted on video using the fire to light a cigarette. 

            The complaint further alleges that on June 22, 2020, Charter, together with other individuals, damaged and attempted to tear down the statue depicting Andrew Jackson at the Battle of New Orleans, located in Lafayette Square.  The complaint further alleges that Charter was captured on video climbing up onto the statue and affixing a rope to the statue that was then used to try to pull the statue down.  Three other men were previously charged with also destroying the Jackson statue.

            The defendant appeared today before United States Magistrate Judge Deborah A. Robinson of the United States District Court for the District of Columbia, where he was released pending further court proceedings.  A Criminal Complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt.  A defendant is presumed innocent unless proven guilty.

            “While the United States Attorney's Office for the District of Columbia is committed to protecting the First Amendment right of individuals to protest peacefully, today’s additional arrest in connection with the violent destruction of federal property is a testament to our further commitment to prosecuting those criminal offenders who threaten not only property, but ultimately the safety of all through their violent acts,” said Acting U.S. Attorney Michael R. Sherwin.

            “These individuals chose to engage in unlawful activity while among fellow citizens who were conducting lawful and Constitutionally protected protest activities,” said James A. Dawson, Special Agent in Charge of the Washington Field Office’s Criminal Division. “The FBI is dedicated to protecting peaceful protesters from those threatening their safety with violence and destruction of property, and where there is a federal nexus, we will investigate and hold the wrongdoers accountable.”

            “This arrest is an example of excellent investigative work by the United States Park Police Criminal Investigations and the continued partnership with the FBI and the U.S. Attorney’s Office. The U.S. Park Police remains committed to protecting our icons, memorials, and park resources” said United States Park Police Acting Chief Gregory T. Monahan.

            In announcing the charges, Acting U.S. Attorney Sherwin, Special Agent in Charge Dawson, and Acting Chief Monahan commended the work of the FBI agents and USPP officers who apprehended the four men and are investigating the incident.  This joint investigation was conducted by the United States Park Police and the FBI Washington Field Office’s Violent Crime Task Force.  Significant assistance was also provided by the Washington Metropolitan Police Department.  The Violent Crime Task Force is charged with investigating acts of violence impacting the District of Columbia.  Tips associated with this matter or other acts of violence can be reported to the FBI at 202-278-2000 or tips.fbi.gov.

WASHINGTON – Edward Galpin was detained yesterday pending trial on charges of conspiracy to distribute and distribution of child pornography, announced Acting United States Attorney Michael R. Sherwin and Special Agent in Charge James A. Dawson of the Federal Bureau of Investigation (FBI) Washington Field Office’s Criminal Division.  This case was investigated by special agents of the Federal Bureau of Investigation’s Washington Field Office and the Metropolitan Police Department's Child Exploitation and Human Trafficking Task Force with assistance from the Federal Bureau of Investigation’s New Haven Field Office.

            Galpin, age 38, of Stratford, Connecticut, was arrested after he was charged in a criminal complaint filed in the District of Columbia last week.  The complaint alleges that, in October of 2019, Galpin joined an online messaging group devoted to the exchange of child pornography and shared numerous sexually explicit videos of young children with the group.  The complaint alleges that Galpin also had private conversations with an undercover officer working in the District of Columbia, sending the undercover officer a video of a female (under age 18) undressing.  Galpin told the undercover that he had used a spy camera to make this recording. 

            The complaint further alleges that, in June, Galpin reached out to a different undercover officer, who was in a Connecticut-based teen chatroom.  The undercover officer told Galpin s/he was a 14-year old female.  Galpin set up a meeting with this purported 14-year old on June 25, 2020.  When asked whether he had done this before, Galpin responded, “twice.”  Galpin arrived at the arranged meeting place, went through a drive-through in the area, and then drove to a nearby store.   

            Galpin was arrested later that same day and made an initial appearance on the complaint in the District of Connecticut.  At a hearing yesterday, United States Magistrate Judge Sarah A.L. Merriam detained Galpin pending trial.  He has a preliminary hearing in the District of Connecticut set for July 9, 2020.     

            A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt.  A defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law. 

            The case is being prosecuted by Assistant U.S. Attorney April Russo with paralegal contractor Kenny Nguyen and with assistance from the U.S. Attorney’s Office in the District of Connecticut.

WASHINGTON – Lee Michael Cantrell, 47, of Virginia; Connor Matthew Judd, 20, of Washington, D.C.; Ryan Lane, 37, of Maryland; and Graham Lloyd, 37, of Maine, were charged by criminal complaint yesterday with destruction of federal property, announced Acting U.S. Attorney Michael R. Sherwin, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Washington Field Office’s Criminal Division James A. Dawson, and Acting Chief of the United States Park Police (USPP) Gregory T. Monahan.

            The complaint, unsealed today, alleges that on June 22, 2020, the four men along with other unidentified individuals, damaged and attempted to tear down the statue depicting Andrew Jackson located in Lafayette Square.  The complaint further alleges that Cantrell was captured on video attempting to pry the statue off its base with a wooden board and trying to pull the statue down with the aid of a yellow strap.  The complaint alleges that Judd is seen on video trying to pull down the statue, and that Lane is seen on video affixing a rope to one part of the statue and then pulling on another rope tied to the statue.  The complaint also alleges that video of the incident shows Lloyd as he breaks off and destroys the wheels of cannons located at the base of the statue.  Lloyd is also captured on video pulling on ropes in an effort to topple the statue, and handing a hammer to an unidentified individual involved in the incident.

            Judd was arrested on Friday and appeared in Superior Court of the District of Columbia today.  The matter will be transferred to the United States District Court for the District of Columbia on Monday, June 29, 2020, where Judd will make his initial appearance before United States Magistrate Judge Robin M. Meriweather.  The remaining defendants have not yet been apprehended. 

            A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, not evidence of guilt.  A defendant is presumed innocent unless proven guilty.

            “The United States Attorney’s Office for the District of Columbia will not stand idly by and allow our national monuments to be vandalized and destroyed.  This Office remains steadfast in its commitment to protect the sacred First Amendment right of individuals to peacefully protest, but these charges should serve as a warning to those who choose to desecrate the statues and monuments that adorn our nation’s capital:  your violent behavior and criminal conduct will not be tolerated,” said Acting U.S. Attorney Michael R. Sherwin.

            “The FBI respects the peaceful exercise of First Amendment rights, but we will not allow opportunists to hijack peaceful protests to incite violence and destruction of property,” said James A. Dawson, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.  “We will continue to work with our partners to enforce federal laws prohibiting damage to government facilities and property.”

            “Members of the United States Park Police are working tirelessly to provide quality law enforcement, safeguard lives, protect our national treasures and symbols of democracy, and preserve the natural and cultural resources entrusted to its service.  We are committed to ensuring that citizens are able to freely exercise their constitutional rights in a safe and peaceful manner.  The deplorable acts of violence and destruction of property are unacceptable and will continue to be pursued through ongoing collaborative investigations and enforcement efforts,” said Gregory T. Monahan, Acting Chief of the United States Park Police.

            In announcing the charges, Acting U.S. Attorney Sherwin, Special Agent in Charge Dawson, and Acting Chief Monahan commended the work of the FBI agents and USPP officers who apprehended the four men and are investigating the incident.  The case is being prosecuted by Assistant U.S. Attorneys Gilead Light, Sara Vanore, and Laura Crane of the U.S. Attorney’s Office for the District of Columbia.

            This joint investigation was conducted by the United States Park Police and the FBI Washington Field Office’s Violent Crime Task Force.  Significant assistance was also provided by the Washington Metropolitan Police Department.  The Violent Crime Task Force is charged with investigating acts of violence impacting the District of Columbia.  Tips associated with this matter or other acts of violence can be reported to the FBI at 202-278-2000 or tips.fbi.gov.

WASHINGTON – Darryl Gale, 52, a former civilian employee of the Army Ten-Miler pled guilty to stealing vendor funds from the Army Ten-Miler’s race and exposition.  

            The announcement was made by Acting U.S. Attorney Michael R. Sherwin, and James A. Dawson, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.

            Gale pled guilty yesterday via teleconferencing in the U.S. District Court for the District of Columbia before the Honorable Emmet G. Sullivan to a one-count Information charging him with a wire fraud scheme.  Gale is scheduled to be sentenced by the Honorable Emmet G. Sullivan on November 4, 2020.  He faces a possible sentence of 15-21 months and will be required to pay restitution in the amount of $124,758.21, and a forfeiture money judgment. 

            According to the Statement of Offense, the Army Ten-Miler is an annual race and exposition that has been conducted in the District of Columbia by the U.S. Army Military District of Washington for the prior 35 years.  Each year, the race and pre-race exposition attracts over 35,000 runners and 900 teams from around the world.  Participants include military, civilians, wheel chair athletes and wounded warrior athletes.  The Army Ten-Miler’s mission is to support Army outreach, build morale, and promote physical fitness.  The Army Ten-Miler is a category-B Army Morale, Welfare, and Recreation (“MWR”) event, which is open to the public.  All race proceeds benefit MWR programs. The Army Ten-Miler is organized and administered each year by a staff of employees based out of an office located in Washington, D.C.

            Between 2012 and November 2018, Gale was employed as a civilian employee at the Army-Ten Miler office.  Gale’s main responsibilities included selling exposition booth rentals and managing logistics on the day of the exposition and race.  Gale devised a scheme to defraud the Army Ten-Miler by making false representations to exposition vendors in order to obtain vendor fees.  Gale cashed and deposited into his own personal bank accounts checks, money orders, and payments through third-party payment processors from vendors who had purchased booths for an Army Ten-Miler exposition. The funds were all intended for and were due to the Army Ten-Miler as payments of fees for these booths, but Gale cashed these payments or deposited the funds into his own personal bank accounts for his own use.  Through this scheme, Gale stole at least $124,758.21 in vendor fees between January 2017 and November 2018.   

            In announcing the plea, Acting U.S. Attorney Sherwin and Special Agent in Charge Dawson commended the work of those who investigated the case from the FBI’s Washington Field Office. They acknowledged the efforts of those who are handling the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists C. Rosalind Pressley and Amanda Rohde. 

            Finally, they commended the work of Assistant U.S. Attorneys Diane Lucas and Kathryn Rakoczy of the Fraud and Public Corruption Section, of the U.S. Attorney’s Office for the District of Columbia, who prosecuted the case.

            WASHINGTON—A former official of the D.C. Office of Tax and Revenue (OTR) pled guilty today for participating in corruption schemes in which he accepted at least $75,000 in exchange for fraudulently erasing tax liability, inflicting more than $3 million in losses upon the District of Columbia.

            The announcement was made by Acting U.S. Attorney Michael R. Sherwin, Special Agent in Charge James A. Dawson of FBI’s Washington Field Office, District of Columbia Inspector General Daniel W. Lucas, and District of Columbia Chief Financial Officer Jeffrey S. DeWitt.

            Vincent Slater, 42, of Temple Hills, MD, pled guilty before the Honorable Reggie B. Walton in the District Court for the District of Columbia.  The charge of bribery carries a statutory maximum of 15 years in prison and potential financial penalties.  Under federal sentencing guidelines, Slater faces a possible range of 87 to 108 months’ imprisonment.  A sentencing date has not yet been set.

            The investigation into Slater’s schemes—which, to date, has resulted in the guilty pleas of two taxpayers and the indictment of two taxpayers and another former District of Columbia government employee—began in 2017 when internal auditors from the Office of the Chief Financial Officer noticed suspicious adjustments to certain taxpayers’ accounts.

            In announcing Slater’s guilty plea, Acting U.S. Attorney Sherwin stated, “Corruption at any level of government should not be tolerated.  Our Office is committed to holding accountable officials who abuse the public trust to line their pockets with taxpayer dollars.  We will vigorously pursue corruption at all levels of government, and especially corruption targeted at the citizens of the District of Columbia.”

            According to the statement of offense, between 2012 and 2017, Slater brokered bribery agreements with various bar and nightclub owners—including Davoud Jafari, 69, of Washington, D.C., and Andre De Moya, 47, Arman Amirshahi, 49, and Charles Zhou, 47, of Maryland—through a former employee of the D.C. Department of Consumer and Regulatory Affairs, Anthony Merritt, 45, of Washington, D.C.  Slater then used his position as a manager in OTR’s Adjustment Unit to fraudulently eliminate or reduce the tax liabilities of their businesses, or otherwise act to fraudulently benefit bribe-paying taxpayers.

            As part of his guilty plea, Slater admitted to causing a total loss of more than $3 million to the District.  Slater explained that typically, he and Merritt agreed to solicit bribe payments equaling approximately half of the amount the taxpayer sought to evade paying, and then to split the bribe proceeds amongst themselves.  Slater further admitted that $75,000 in cash deposits he made into his bank accounts during the scheme were bribe proceeds.

            Taxpayers Amirshahi and Zhou previously pled guilty for their roles in the bribery schemes and are awaiting sentencing.  De Moya, Jafari, and Merritt were indicted by a grand jury in the District of Columbia in 2019 and their cases have not yet been set for trial. 

            Slater’s plea marked the second time in two weeks that former D.C. tax officials have pled guilty to bribery.  On June 12, 2020, Bobby Tucker, 64, of Virginia, former Chief of Collections at OTR, pled guilty to a federal bribery charge stemming from a scheme in which, after departing his OTR position to pursue private business opportunities, he paid bribes to an OTR official in order to reduce the tax liabilities of a business he consulted and to take other actions to benefit Tucker’s business interests.  Tucker admitted that he agreed to pay an OTR official, who was working as a confidential source, to obtain referrals of city taxpayers with outstanding tax liabilities.  Tucker would then attempt to broker a bribery agreement whereby he would be paid by a business owner to facilitate a bribe to the OTR official to fraudulently reduce or eliminate tax liabilities. The Honorable Beryl A. Howell scheduled Tucker’s sentencing for September 11, 2020. 

            These cases are being investigated by the FBI’s Washington Field Office and the District of Columbia Officer of the Inspector General, with substantial assistance by the District of Columbia Office of the Chief Financial Officer, Office of Integrity and Oversight.  Assistant United States Attorneys Emily Miller and Molly Gaston of the Fraud and Public Corruption Section are prosecuting the Slater case on other individuals involved in his corruption scheme, and Assistant United States Attorney Peter Lallas, also of the Fraud and Public Corruption Section, is prosecuting the Tucker case.

WASHINGTON – Folashade Adufe Horne, 51, of Laurel, Maryland, and Sikirat Adunni Brown, 58, of Upper Marlboro, Maryland, were both arrested today after being charged in federal court with defrauding the D.C. Medicaid program, announced Acting U.S. Attorney Michael R. Sherwin; James A. Dawson, 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.

            Horne and Brown are the third and fourth individuals charged this week with defrauding D.C. Medicaid. Yesterday, Susan Engonwei Tingwei, a University of Maryland Law School Graduate, and Janet Akindipe, an employee at the National Institutes of Health (“NIH”), were arrested.

            Horne, Brown, Tingwei, and Akindipe each were charged in separate criminal complaints with health care fraud and health care false statements for falsely claiming to have provided personal care aide (“PCA”) services to D.C. Medicaid beneficiaries. Horne is alleged to have defrauded Medicaid between January 2014 and the present.  Brown is alleged to have defrauded Medicaid between November 2014 and the present. Tingwei is alleged to have defrauded Medicaid between January 2015 and September 2018. Akindipe is alleged to have defrauded Medicaid between January 2015 and the present.

            Home health agencies employ PCAs to assist D.C. Medicaid beneficiaries with performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. PCAs are required to accurately document the hours of care that they provide to beneficiaries on timesheets and then submit those timesheets to home health agencies, which in turn bill Medicaid for services actually rendered.

            According to charging documents, Horne claimed to provide PCA services to beneficiaries when she was actually working at Howard University Hospital, where she has been employed since 2007. D.C. Medicaid claims data revealed that on 204 separate days in 2014, she purportedly provided 20 or more hours of PCA services to several Medicaid beneficiaries while working for various home health agencies, including 28 separate days where she claimed to work 32 hours. Charging documents also allege that Horne claimed to provide PCA services to D.C. Medicaid beneficiaries when she was traveling outside the United States.

            Charging documents allege that Brown purported to provide PCA services in excess of twenty hours on a given day and also to multiple beneficiaries in overlapping hours. On 335 occasions between November 2014 and October 2015, Brown claimed that she provided between 20 and 38 hours of PCA services each day. She also asserted that she provided 176 hours of services during a seven-day period even though there are only 168 hours in a week. In addition, she is alleged to have paid kickbacks to at least one beneficiary to get that person to sign fraudulent timesheets.

            Charging documents indicate that Tingwei earned a Master of Laws degree from the University of Maryland’s Francis King Carey School of Law in May 2017.  On more than 100 occasions, she is alleged to have submitted timesheets purporting to have provided PCA services in Washington, D.C., when she was scheduled to be in Baltimore attending law school classes. As part of the investigation, law enforcement agents conducted surveillance of Tingwei and also obtained cell phone records that provided her location history. Tingwei claimed to provide PCA services in Washington at times when law enforcement agents saw her in Baltimore and also when cell phone records placed her in Baltimore.

            Charging documents allege that Akindipe claimed to provide PCA services to beneficiaries when she was actually working at NIH. Between working at NIH and purportedly providing PCA services, Akindipe claimed she worked more than twenty hours a day on 338 different occasions between January 2015 and October 2018. She also is alleged to have caused Medicaid to be billed for PCA services that she purportedly rendered during three separate periods of time when she was actually traveling outside the United States.

            Horne, Brown, and Akindipe appear this afternoon on their respective criminal complaints before the Honorable Robin M. Meriweather in U.S. District Court for the District of Columbia. Yesterday, Tingwei was presented before Judge Meriweather. A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, but it is not evidence of guilt. Each of the defendants is presumed innocent unless proven guilty.

            This week’s arrests mark a continued effort by the FBI, the Department of Health and Human Services’ Office of Inspector General, the District of Columbia’s Office of the Inspector General’s Medicaid Fraud Control Unit, and the U.S. Attorney’s Office to investigate and prosecute individuals who defraud the D.C. Medicaid program.

            Since October 2019, four PCAs have been sentenced in U.S. District Court for defrauding D.C. Medicaid. Mobolaji Tina Stewart, who admitted defrauding the program out of more than $500,000, was sentenced to 13 months in prison in October 2019.  Nkiru Uduji, who defrauded Medicaid out of more than $500,000, was sentenced to thirty-six months’ probation in December 2019. Rose Gana, who defrauded Medicaid out of more than $400,000 was sentenced to 13 months in prison in February 2020. Temitope Ogunbiyi, who defrauded Medicaid out of more than $1 million was sentenced to 15 months in prison in February 2020. A fifth defendant, Hope Falowo, pled guilty to defrauding Medicaid out of more than $400,000 in November 2019 and is awaiting sentencing. A sixth defendant, Charlotte Etongwe, was charged via criminal complaint in June 2019. A status hearing is scheduled in her case for July 29, 2020.

            The FBI, the Department of Health and Human Services’ Office of Inspector General, and the Medicaid Fraud Control Unit have investigated all of these cases and count on the public for tips and assistance in helping stop health care fraud. If you have information about individuals committing health care fraud, please call the Department of Health and Human Services’ Office of Inspector General hotline at (800) HHS-TIPS [(800) 447-8477].

            The cases against Horne, Brown, Tingwei, and Akindipe are being prosecuted by Assistant U.S. Attorney Kondi Kleinman.

WASHINGTON – Susan Engonwei Tingwei, 42, of Silver Spring, Maryland, and Janet Akindipe, 62, of Laurel, Maryland, were both arrested today after being charged in federal court with defrauding the D.C. Medicaid program, announced Acting U.S. Attorney Michael R. Sherwin; James A. Dawson, 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, District of Columbia Inspector General.

            Tingwei and Akindipe were charged in separate criminal complaints with health care fraud and health care false statements for falsely claiming to have provided personal care aide (“PCA”) services to D.C. Medicaid beneficiaries. Tingwei is alleged to have defrauded Medicaid between January 2015 and September 2018. Akindipe is alleged to have defrauded Medicaid between January 2015 and the present.

            Home health agencies employ PCAs to assist D.C. Medicaid beneficiaries with performing activities of daily living, such as getting in and out of bed, bathing, dressing, and eating. PCAs are required to accurately document the hours of care that they provide to beneficiaries on timesheets and then submit those timesheets to home health agencies, which in turn bill Medicaid for services actually rendered.

            According to charging documents, in May 2017, Tingwei earned a Master of Laws degree from the University of Maryland’s Francis King Carey School of Law.  On more than 100 occasions, she is alleged to have submitted timesheets purporting to have provided PCA services in Washington, D.C., when she was scheduled to be in Baltimore attending law school classes. As part of the investigation, law enforcement agents conducted surveillance of Tingwei and also obtained cell phone records that provided her location history. Tingwei claimed to provide PCA services in Washington at times when law enforcement agents saw her in Baltimore and also when cell phone records placed her in Baltimore.

            Charging documents allege that Akindipe, a full-time employee at the National Institutes of Health (“NIH”), claimed to provide PCA services to beneficiaries when she was actually working at NIH. Between working at NIH and purportedly providing PCA services, Akindipe claimed to have worked more than twenty hours a day on 338 different occasions between January 2015 and October 2018. She also is alleged to have caused Medicaid to be billed for PCA services that she purportedly rendered during three separate periods of time when she was actually traveling outside the United States.

            Tingwei appeared in court today before the Honorable Robin M. Meriweather to face charges on the criminal complaint. Akindipe is scheduled to appear tomorrow before Judge Meriweather. A criminal complaint is a formal accusation of criminal conduct for purposes of establishing probable cause, but it is not evidence of guilt. Both defendants are presumed innocent unless proven guilty.

            Today’s arrests mark a continued effort by the FBI, the Department of Health and Human Services’ Office of Inspector General, the District of Columbia’s Medicaid Fraud Control Unit, and the U.S. Attorney’s Office to investigate and prosecute individuals who defraud the D.C. Medicaid program. Since October 2019, four PCAs have been sentenced in U.S. District Court for defrauding D.C. Medicaid. Mobolaji Tina Stewart, who admitted defrauding the program out of more than $500,000, was sentenced to 13 months in prison in October 2019.  Nkiru Uduji, who defrauded Medicaid out of more than $500,000, was sentenced to thirty-six months’ probation in December 2019. Rose Gana, who defrauded Medicaid out of more than $400,000 was sentenced to 13 months in prison in February 2020. Temitope Ogunbiyi, who defrauded Medicaid out of more than $1 million was sentenced to 15 months in prison in February 2020. A fifth defendant, Hope Falowo, pled guilty to defrauding Medicaid out of more than $400,000 in November 2019 and is awaiting sentencing. A sixth defendant, Charlotte Etongwe, was charged via criminal complaint in June 2019. A status hearing is scheduled in her case for July 29, 2020.

            The FBI, the Department of Health and Human Services’ Office of Inspector General, and the Medicaid Fraud Control Unit have investigated all of these cases and count on the public for tips and assistance in helping stop health care fraud. If you have information about individuals committing health care fraud, please call the Department of Health and Human Services’ Office of Inspector General hotline at (800) HHS-TIPS [(800) 447-8477].

            The cases against Tingwei and Akindipe are being prosecuted by Assistant U.S. Attorney Kondi Kleinman.

WASHINGTON – Marcus Stackhouse, 37, of Maryland was sentenced today to 70 months’ imprisonment on a federal narcotics trafficking charge stemming from his narcotics trafficking in the summer and fall of 2019, announced Acting U.S. Attorney Michael R. Sherwin, Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            On February 13, 2020, Stackhouse pled guilty in the U.S. District Court for the District of Columbia to one count of Conspiracy to Distribute and Possess with Intent to Distribute 28 Grams or more of Cocaine Base. Today, June 19, 2020, he was sentenced to 70 months’ imprisonment followed by four years of supervised release by the Honorable Amit P. Mehta of the U.S. District Court, with some of that term to run concurrently to his ongoing sentence in Prince George’s County, Maryland.

            Stackhouse was arrested after the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) engaged in a large-scale drug investigation in the 2900 block of Martin Luther King Jr. Avenue, Southeast, Washington, D.C. and arrested multiple individuals involved with narcotics trafficking. During the investigation, the ATF conducted several controlled purchases of narcotics from Stackhouse, to include the purchase of cocaine base (also known as crack cocaine). After Stackhouse was arrested on a separate firearms charge in Maryland, Stackhouse’s brother – Kevin Stackhouse – took over the narcotics trafficking on Stackhouse’s behalf. On October 9, 2019, ATF obtained a search warrant and conducted a search of Kevin Stackhouse’s residence, finding a digital scale, drug paraphernalia, cocaine residue, two loaded firearms – a .22 caliber firearm and a revolver – and four imitation firearms. Law enforcement also recovered nearly 400 rounds of ammunition, and two additional firearms magazines. On January 8, 2020, Kevin Stackhouse pled guilty to one count of Using, Carrying, and Possessing a Firearm in Furtherance of a Drug Trafficking Offense, and on May 7, 2020, Judge Mehta sentenced Kevin Stackhouse to 60 months’ imprisonment.

            “This investigation is another example of our ability and desire to disrupt drug trafficking organizations in the District of Columbia, even and especially during a global public health crisis,” said Acting U.S. Attorney Sherwin. “As a result of this effort, we were able to remove dangerous narcotics and firearms off of our streets.”

            “Today’s sentencing is the culmination of an extensive and highly successful investigation by our dedicated agents and law enforcement partners,” said ATF Washington Special Agent in Charge Ashan M. Benedict. “This operation accomplished multiple objectives, including the removal of firearms and ammunition, as well as the arrests and convictions of multiple suspects tied to these crimes.  Our communities are safer today as a result of these efforts.”

            “This arrest and conviction gets us one step closer to making our communities in the District safe from illegal drugs, firearms and violent crime,” said Metropolitan Police Chief Peter Newsham. “The coordinated effort between federal and local agencies demonstrates our commitment to bringing individuals involved in these types of crimes to justice.”

            This case is part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation. OCDETF specializes in the investigation and prosecution of drug trafficking and money laundering organizations and related criminal enterprises.

            This case was also prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime-reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the District of Columbia, Acting U.S. Attorney Sherwin coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

            In announcing the sentence, Acting U.S. Attorney Sherwin, Special Agent in Charge Benedict, and Chief Newsham commended the work of those who investigated the case, including ATF and MPD. They also expressed appreciation for the assistance provided by the United States Secret Service, U.S. Marshals Service, Prince George’s County, Md. Police Department, and the U.S. Attorney’s Office for the District of Maryland.

            Finally, they cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, Assistant U.S. Attorney Gregory Rosen of the Violent Crime and Narcotics Section, Paralegal Specialist Teesha Tobias, Kim Hall, Candace Battle, and Legal Assistant Peter Gaboton.

WASHINGTON – Micah Avery, 26, of Washington, D.C., was arraigned today in federal court on charges of destruction of federal property, resisting a federal officer, and obstructing a law enforcement officer during a civil disorder, announced Acting U.S. Attorney Michael R. Sherwin and Acting Chief of the United States Park Police (USPP) Gregory T. Monahan.

            The complaint alleges that on the afternoon of May 30, 2020, officers with the U.S. Park Police witnessed Avery graffiti the words “Yall not tired yet?” with black spray paint on the Lincoln Memorial (see photo below).  Avery fled as the officers approached him.   After a chase, officers apprehended and handcuffed Avery.  Officers attempted to put the defendant into a patrol car, but he resisted their attempts.  A crowd converged on the officers and began pushing and striking the officers.  During this melee, Avery broke free and ran away.  One of the officers sustained an injury to his hand.  A look-out was broadcast, and Avery was located shortly thereafter by other officers back at the Lincoln Memorial, still wearing the handcuffs.

            The defendant was arraigned today before United States Magistrate Robin M. Meriweather in the United States District Court for the District of Columbia.  Judge Meriweather released Avery pending trial, but ordered that he stay away from the Lincoln Memorial. 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.

            “The United States Attorney’s Office for the District of Columbia is dedicated to protecting the vital First Amendment right of individuals who choose to peacefully protest the horrific killing of George Floyd in Minneapolis last month.  Moreover, as the prosecution of Avery illustrates, the United States Attorney’s Office will not tolerate those who under the guise of the First Amendment exploit peaceful demonstrations to break the law, deface our national monuments, and threaten the safety and security of our nation’s capital.  In its commitment to protect the rule of law, this Office will not leave unchecked any criminal activity, whether committed by civilians or law enforcement, that infringes on the fundamental civil rights and ability of any person to be free of violence or fear,” said Acting U.S. Attorney Michael R. Sherwin.

            “The defacing of the Lincoln Memorial, one of our national icons, could not be tolerated. We are committed to safeguarding the First Amendment rights of those who come to the District of Columbia to peacefully demonstrate. This crime shows how the actions of one individual can distort and tarnish a message through vandalism and other crimes of opportunity. This case is an example of excellent police work, under challenging conditions, and meets one of the core missions of the United States Park Police,” said Gregory T. Monahan, Acting Chief of the United States Park Police.

            In announcing the charges, Acting U.S. Attorney Sherwin and Acting Chief Monahan commended the work of the USPP officers who apprehended Avery and are investigating the incident.  The case is being prosecuted by Assistant U.S. Attorney James B. Nelson of the U.S. Attorney’s Office for the District of Columbia.

WASHINGTON – Mark Crawford, 31, of Washington, D.C., was arraigned today in federal court on charges of assaulting a police officer while armed and for related firearms charges for shooting an officer with the Metropolitan Police Department as the officer was arresting him, announced U.S. Attorney Timothy J. Shea; Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Ashan Benedict; and Chief of the Metropolitan Police Department (MPD) Peter Newsham.

            The criminal complaint charges Crawford with assaulting the officer while armed with a Glock handgun and for possessing that handgun unlawfully.  ATF traced the firearm and determined that it had been reported stolen from a gun store in Greensboro, North Carolina.   

            The complaint alleges that on the afternoon of May 12, 2020, officers with the Metropolitan Police Department responded to the 100 block of 35th Street in the southeast quadrant of the District for a report of a barred individual in the area.  Crawford matched the description of the barred individual and officers attempted to speak to him.  While the officers were speaking to Crawford, he ran from them.  The officers apprehended Crawford and he struggled and resisted the efforts of the officers to place him in handcuffs.  Once handcuffed, Crawford continued to struggle with the officers as they attempted to stand him upright.  Crawford then retrieved a firearm from his waistband and fired, striking one of the officers in the thigh.  After shooting the officer, Crawford fired the gun a second time, but did not strike anyone.  The defendant was arrested and the gun was recovered.  The injured officer was taken to the hospital to be treated for the gunshot wound; the bullet broke the officer’s femur and the officer is undergoing surgery to remove the projectile from behind his knee cap.

            “We will not tolerate attacks on police officers in the District of Columbia. The conduct alleged in the criminal complaint caused serious injury to a D.C. Metropolitan Police Department officer, 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,” said U.S. Attorney Timothy J. Shea.

            “This situation with a violent, repeat criminal offender is indicative of the risks that law enforcement officers face each day they report for duty,” said ATF Washington Special Agent in Charge (SAC) Ashan M. Benedict. “We are pleased that the injured officer is recovering, and that the suspect is now facing significant federal criminal charges.”

            The defendant was arraigned before United States Magistrate Judge G. Michael Harvey in the United States District Court for the District of Columbia.  Judge Harvey ordered the defendant held without bond in this matter. 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.

            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 George Eliopoulos of the U.S. Attorney’s Office for the District of Columbia.

WASHINGTON – As part of a national effort directed by U.S. Attorney General William P. Barr, U.S. Attorney for the District of Columbia Timothy J. Shea is asking anyone who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing to report that conduct to the Department of Justice.

            The COVID-19 Pandemic has impacted the ability of many people to pay rent on time and has increased housing insecurity. The Department of Justice has heard reports of housing providers trying to exploit the crisis to sexually harass tenants. Sexual harassment in housing is illegal, and the Department of Justice stands ready to investigate such allegations and pursue enforcement actions where appropriate.

            “While facing both a threat to public health and a threat to economic security, District of Columbia residents need, more than ever, to feel safe in the place they call home.  We will not tolerate those who seek to exploit tenants at a time when they may be most financially vulnerable,” said U.S. Attorney Shea.  “The U.S. Attorney’s Office will work closely with our local and federal partners to identify incidents of sexual harassment in housing and to bring predators to justice.”

            The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers, or others who have control over housing.

            Launched in 2017, the Initiative has led to the filing of lawsuits across the county alleging a pattern or practice of sexual harassment in housing and the recovery of millions of dollars in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years.  Many individuals do not know that being sexually harassed by a housing provider can violate federal law or that the Department of Justice may be able to help.

            The Department of Justice, through the Civil Rights Division and the U.S. Attorney’s Offices, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.

            The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected].

            Individuals may also file a complaint alleging harassment or discrimination in housing with the Department of Housing and Urban Development through HUD’s website or by calling (800) 669-9777.

WASHINGTON – Tricia Steele Boutros, a 41-year-old District of Columbia resident, pled guilty in federal court in the District of Columbia to a three-year scheme to defraud financial institutions and account holders of approximately $3.5 million by illegally accessing bank accounts.

            Boutros, a licensed attorney in the District of Columbia, pled guilty to a criminal information charging her with bank fraud.  According to court papers, Boutros frequently used an encrypted internet network, referred to as the “dark web,” that allowed her to conceal her identity and illicitly obtain login information for bank account holders.  Boutros admitted to using the login information to access at least 30 different bank accounts from more than ten different financial institutions.  Boutros also admitted to transferring money from those accounts to accounts she controlled personally and through entities she established, including her law firm, Steele Legal PLLC.  Boutros also wrote fraudulent checks on some of the accounts she illegally accessed.  Court papers state that Boutros made the fraudulent checks payable to herself, to entities she controlled, and to her creditors.  Boutros further admitted that she used stolen identities and counterfeit identification documents to open bank accounts through which she facilitated the transfer of fraud proceeds for her benefit. 

            Court papers state that, in total, Boutros initiated or attempted to initiate at least $3.5 million in fraudulent transactions from the accounts that she illegally accessed.  Some of those transfers were stopped before they were processed or were able to be reversed after the fraud was discovered.  Boutros admitted to obtaining between $1.3 million and $2.2 million as a result of her fraud scheme.

            Boutros pled guilty in United States District Court for the District of Columbia.  United States District Judge Amit Mehta is presiding over the case.  Sentencing is scheduled for September 16, 2020.  The maximum penalty for bank fraud is 30 years in prison and a fine of not more than twice the amount of money Boutros gained through her fraud scheme.

            The Washington Field Office of the Federal Bureau of Investigation investigated the case.  Assistant United States Attorney Elizabeth Aloi of the Fraud and Public Corruption Section is prosecuting the case.

WASHINGTON – Amir Dianat, 55, and Kamran Lajmiri, 42, both Iranian nationals, were charged with violating U.S. export laws and sanctions against Iran in the United States 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 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,” Drolshagen added.

            “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 United States 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.

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. 

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.

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. 

            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.

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].

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].

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.

            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].

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.

            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:

• Independently verify the identity of any company, charity, or individual that contacts you regarding COVID-19. 

• 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.” 

• 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.

 

• 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.

 

• Make sure the anti-malware and anti-virus software on your computer is operating and up to date.

 

• 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.

 

• Check online reviews of any company offering COVID-19 products or supplies.  Avoid companies whose customers have complained about not receiving items.

 

• 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. 

 

• 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.

 

• 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.

 

• 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].

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.

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.

          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].

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.

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.

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.

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.

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.

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.

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.

            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.

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. 

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.

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.

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.

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.

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 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.