District of Columbia

WASHINGTON – The owner of a physical security school has been indicted by a federal grand jury for defrauding a U.S. Department of Veterans Affairs (VA) program dedicated to rehabilitating military veterans with service-connecting disabilities and for making false statements to the VA. 

            Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General (OIG), Mid-Atlantic Field Office made the announcement.

            Francis Engles, 63, of Bowie, Maryland, was charged on April 18, 2019, in a 20-count indictment by a federal grand jury in Washington, D.C. The indictment was unsealed today in the U.S. District Court for the District of Columbia.

            The indictment alleges that Engles was the co-owner and operator of Engles Security Training School (Engles Security).  Engles Security was located in Maryland and specialized in security guard and related courses.  In August 2015, Engles Security became an approved vendor of the VA’s Vocational Rehabilitation & Employment (VR&E) program, which provides disabled U.S. military veterans with education and employment-related services.  Thereafter, Engles submitted documents to the VA representing that he was providing 15 veterans with months-long courses for 40 hours per week and over 600 total hours.  In fact, Engles Security allegedly offered veterans far less than what Engles represented to the VA.  Engles allegedly ended some classes after less than a month, even though he represented to the VA that the veterans’ classes would last for several months.  In some instances, he allegedly offered only a few hours of class per day, while representing that the students would be in school for forty hours per week.  According to the indictment, Engles frequently cancelled classes without notice or makeup classes and instructors showed up late and ended class early.

            To advance and prolong his scheme, Engles allegedly created and sent to the VA “Certificates of Training” stating that veterans had completed courses that they in fact had not completed or, in some instances, had not taken at all.  Similarly, Engles allegedly submitted letters to the VA falsely stating that the veterans had been employed by Engles’ private security business.  Engles also allegedly instructed veterans to sign attendance sheets representing that they had attended class sessions, which they did not in fact attend.

            Engles allegedly charged the VA thousands of dollars more for veterans’ courses than he charged non-veterans who took the same or similar courses.  In total, the VA paid Engles Security over $300,000 for the purported education of 15 veterans. 

            An indictment contains only allegations.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

            The FBI’s Washington Field Office and the VA Office of Inspector General are investigating the case.  Trial Attorney Simon J. Cataldo of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney David Misler of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.

The owner of a physical security school has been indicted by a federal grand jury for defrauding a U.S. Department of Veterans Affairs (VA) program dedicated to rehabilitating military veterans with service-connecting disabilities and for making false statements to the VA. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General (OIG), Mid-Atlantic Field Office made the announcement.

Francis Engles, 63, of Bowie, Maryland, was charged on April 18, 2019, in a 20-count indictment by a federal grand jury in Washington, D.C.  The indictment was unsealed today.

The indictment alleges that Engles was the co-owner and operator of Engles Security Training School (Engles Security).  Engles Security was located in Maryland and specialized in security guard and related courses.  In August 2015, Engles Security became an approved vendor of the VA’s Vocational Rehabilitation & Employment (VR&E) program, which provides disabled U.S. military veterans with education and employment-related services.  Thereafter, Engles submitted documents to the VA representing that he was providing 15 veterans with months-long courses for 40 hours per week and over 600 total hours.  In fact, Engles Security allegedly offered veterans far less than what Engles represented to the VA.  Engles allegedly ended some classes after less than a month, even though he represented to the VA that the veterans’ classes would last for several months.  In some instances, he allegedly offered only a few hours of class per day, while representing that the students would be in school for 40 hours per week.  According to the indictment, Engles frequently cancelled classes without notice or makeup classes and instructors showed up late and ended class early.

To advance and prolong his scheme, Engles allegedly created and sent to the VA “Certificates of Training” stating that veterans had completed courses that they in fact had not completed or, in some instances, had not taken at all.  Similarly, Engles allegedly submitted letters to the VA falsely stating that the veterans had been employed by Engles’ private security business.  Engles also allegedly instructed veterans to sign attendance sheets representing that they had attended class sessions, which they did not in fact attend.

Engles allegedly charged the VA thousands of dollars more for veterans’ courses than he charged non-veterans who took the same or similar courses.  In total, the VA paid Engles Security over $300,000 for the purported education of 15 veterans. 

An indictment contains only allegations.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The FBI’s Washington Field Office and the VA OIG are investigating the case.  Trial Attorney Simon J. Cataldo of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney David Misler of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.

WASHINGTON – Arnold Boon, 33, of Washington, D.C., pled guilty today to federal charges stemming from a robbery in which he and at least two others drove a stolen pick-up truck through the front of a Northwest Washington convenience store and hauled off an ATM machine containing at least $130,000.

            The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

           Boon pled guilty in the U.S. District Court for the District of Columbia to one count of being a felon in possession of a firearm and one count of interference with interstate commerce by robbery.  The plea, which is contingent upon the Court’s approval, calls for a sentence of 92 months in prison, to be followed by up to five years of supervised release. The Honorable Senior Judge Paul L. Friedman scheduled sentencing for May 2, 2019. The plea agreement also requires Boon to pay restitution to the owner of the money stolen from the ATM, as well as to the owner of the building where the store is located.

            According to the government’s evidence, on Jan. 19, 2018, at approximately 1:30 a.m., a stolen Ford pickup truck smashed through the front of a 7-Eleven convenience store in the 200 block of Cedar Street NW. The truck was being driven by an unidentified male wearing dark clothing and a mask. Surveillance video captured two other masked men, one later identified as Boon through DNA evidence, entering the convenience store and lifting the store’s ATM machine onto the bed of the truck.  While Boon and the other suspects attempted to lift the ATM machine, video from the store captured a gold watch worn by Boon fall to the ground. 

            A store clerk and at least one customer were inside the store at the time of the robbery. After struggling for several minutes to lift the ATM onto the truck, the men successfully loaded it onto the truck’s bed and Boon climbed onto the bed of the truck while the other two suspects entered the cab of the vehicle and fled the area.  Boon and the other suspects fled with more than $130,000 in cash that was inside the ATM. 

            The stolen vehicle was found idling a short distance from the location of the 7-Eleven with no occupants or the ATM machine.  The next morning, the stolen ATM machine was recovered by police in a wooded area in Washington, D.C., with all the currency removed. 

            Police also recovered the gold watch at the crime scene, and DNA obtained from the watch eventually was matched to Boon.  At the time of his arrest on March 17, 2018, Boon was in possession of a loaded semi-automatic pistol, which was recovered from the dresser drawer in his bedroom. Boon has been in custody since his arrest. At the time of the crime, he was barred from possessing a gun because of prior convictions on assault and other charges.

            In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work of the FBI agents and MPD officers who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office including Assistant U.S. Attorneys Steven B. Wasserman and Ethan Carroll, and Paralegal Specialist Rommel Pachoca.

WASHINGTON – Matthew Moore, Jr., 34, formerly of District Heights, Md., was sentenced today to 30 years in prison for a shooting that killed two people who were sitting in a car in Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD)

            Moore pled guilty in August 2018, in the Superior Court of the District of Columbia, to two counts of second-degree murder while armed. The plea, which was contingent upon the Court’s approval, called for a sentence of 24 to 36 years in prison. The Honorable Danya A. Dayson accepted the plea; however, Moore attempted to withdraw his plea several months later. Judge Dayson ultimately denied the defendant’s motion to withdraw and sentenced Moore accordingly. Following his prison term, Moore will be placed on five years of supervised release.

            According to the government’s evidence, on Jan. 17, 2017, at about 6:23 a.m., Moore was driving a white Kia Optima and the victims – Ronnell Reaves and Kevin Kennedy – were passengers. Moore pulled into the 600 block of 14th Place NE and parked the vehicle. He and Mr. Reaves then got out of the car and walked into a nearby alleyway. Mr. Kennedy remained in the car. Minutes later, Mr. Reaves returned to the car and got in the driver’s seat. Mr. Reaves was in the driver’s seat, and Mr. Kennedy was in the back seat, when Moore returned to the car.

            At 6:36 a.m., Moore opened the front passenger door, leaned into the car, and pulled out a firearm. He fired two shots at Mr. Reaves in the front seat and two more shots at Mr. Kennedy in the back seat. Mr. Reaves, 22, was pronounced dead at the scene. Mr. Kennedy was taken to a hospital and later to a long-term care facility, where he died on July 9, 2018. He was 23. An autopsy determined that he died from gunshot wounds to the head and related complications.

            On Jan. 26, 2017, law enforcement obtained a search warrant for Moore’s residence in District Heights. As a result of this search, law enforcement recovered a .40-caliber sub-compact, semi-automatic handgun. The gun was loaded with cartridges that were consistent with the four shell casings recovered from the scene of the shooting. Moore was arrested on Feb. 6, 2017, and has been in custody ever since.

            In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences and the District of Columbia Office of the Chief Medical Examiner. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kelly Blakeney, Victim/Witness Advocate Marcia Rinker, and Assistant U.S. Attorney Allessandra Stewart, who investigated and prosecuted the case.

WASHINGTON – Bikila Kejella, 20, of Washington, D.C., was sentenced today to 16 years in prison for killing a man in Northwest Washington in 2016, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD). 

            Kejella pled guilty in August 2018, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. He was sentenced by the Honorable Juliet McKenna. Following his prison term, he will be placed on five years of supervised release.

            According to the government’s evidence, just after midnight, early Sept. 12, 2016, a group of men and women were casually socializing and congregated in the parking lot area of the Garfield Terrace housing complex in the 2300 block of 11th Street NW. Kejella approached the group and struck up a conversation.  Shortly thereafter, the victim, 23-year-old lifelong D.C. resident Eric Garrett, approached the parking lot area where his car was parked. 

            Mr. Garrett was scrolling through his cell phone and walked toward the group of people at the front of the parking lot.  Kejella then walked directly toward Mr. Garrett. Kejella extended his arm and aimed his firearm at Mr. Garrett’s head.  According to witnesses, Mr. Garrett put his hands up in the air and yelled, “Wait, no, don’t.”  Kejella fired his firearm striking Mr. Garrett and Kejella fled the scene.  Mr. Garrett went into cardiac arrest and died on Sept. 18, 2016. 

            Kejella was arrested on Nov. 7, 2016, at the Red Rock Job Corps Center in Sweetwater, Pennsylvania.  He was thereafter extradited back to the District of Columbia. 

            In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department.  They also expressed appreciation for the assistance provided by the U.S. Marshals Service, the FBI, and the U.S. Attorney’s Office for the Western District of Pennsylvania.  They acknowledge the efforts of those who worked on the case from the U.S. Attorney’s Office including Criminal Investigator John Marsh; Paralegal Specialist Lashone Samuels; Victim/Witness Advocates Jennifer Allen and Jennifer Clark, and Investigative Analyst Zachary McMenamin.

            Finally, they commend the work of Assistant U.S. Attorneys Sarah Santiago and Christine Macey, who investigated and prosecuted the case.

WASHINGTON – Travon Eliy, also known as Travon Jackson, 41, of Washington, D.C., has been found guilty by a jury of assault with intent to kill a senior citizen in a gun-free zone and other charges stemming from a robbery and shooting that took place behind an elementary school in Southeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD). 

            Eliy was found guilty on April 18, 2019, following a trial in the Superior Court of the District of Columbia. The jury also found him guilty of a total of 18 charges, including armed robbery of a senior citizen in a gun-free zone, and related assault and firearms offenses. The Honorable Milton C. Lee scheduled sentencing for June 14, 2019.

            According to the government’s evidence, on the afternoon of April 1, 2016, the victim, a 67-year-old woman, was walking home when she was followed by Eliy into an apartment building in the 600 block of Savannah Street SE.  Once inside, Eliy put a gun to her head and began pulling at her purse. Eliy dragged her out the building and down a walkway before getting away with her purse. The woman screamed for help and a Good Samaritan, a 61-year-old man,  intervened.  The man was able to stop Eliy pushing up against a parked car. It was then that Eliy fired his gun one time at close range into the man’s chest before fleeing the scene. The shooting took place behind Martin Luther King, Jr. Elementary School.

            The Metropolitan Police Department (MPD) arrived within minutes and the defendant was stopped within 10 minutes of the shooting. 

            In announcing the verdict, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department.  They also expressed appreciation for the assistance provided by the U.S. Marshals Service and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives.  They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Daniel Lenerz; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Paralegal Specialists Kathryn Hoey, Sabrina Turner, Lynda Randolph, and Lashone Samuels; Forensic Operations Program Specialist Elizabeth Marrero; Victim/Witness Services Coordinator La June Thames, and Finance Specialists Karen Lee-putt, Marquetta Little and Sallie Rynas.

            Finally they commend the work of Assistant U.S. Attorney Sarah Santiago, who investigated and prosecuted the case. 

            WASHINGTON –Brian Jenkins, 44, of Brentwood, Md., pled guilty today to trafficking in crack and powder cocaine as part of a nearly year-long narcotics conspiracy in Washington, D.C. and Maryland, announced U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.

            Jenkins pled guilty before the Honorable Richard J. Leon 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 and a detectable amount of cocaine. The charge requires a mandatory minimum sentence of five years of incarceration and up to 40 years imprisonment. Judge Leon scheduled Jenkins’ sentencing for July 18, 2019.

            As part of his plea agreement, Jenkins accepted responsibility for a firearm possessed in his Maryland residence at the time that he was arrested.

            Jenkins was arrested on the morning of March 15, 2018 and his residence was searched pursuant to a warrant. At Jenkins’ residence, the FBI recovered cocaine, $12,900 in U.S. currency, a loaded handgun with multiple magazines, and a crack cocaine manufacturing kit to include two digital scales, a strainer, baking soda, and a Pyrex dish.

            Four others have pled guilty to charges in the case. They include Everette Reel, 46, of Upper Marlboro, Md; Jamal Curtis, 41, of Washington, D.C., Derek Holmes, 54, of Washington, D.C., and Russell Harrison, 40, of Temple Hills, Md. Reel, Curtis, and Holmes are now serving sentences and Harrison is to be sentenced on May 1, 2019. Harrison faces a mandatory minimum sentence of five years of incarceration and up to life imprisonment for his possession of multiple firearms in furtherance of his drug trafficking as part of the conspiracy.

            The case remains pending against another defendant, Darnell Catlett, 46, of Upper Marlboro, Md.

            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.

            In announcing the pleas, U.S. Attorney Liu and Assistant Director in Charge McNamara commended the work of those who investigated the case. They cited the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialists Candace Battle and Teesha Tobias, Legal Assistant Emma Atlas, and Assistant U.S. Attorneys Christopher Macchiaroli and Kevin Rosenberg of the Violent Crime and Narcotics Section, who conducted the underlying investigation, indicted the case, and prosecuted the defendants.

UniCredit Bank AG (UCB AG), a financial institution headquartered in Munich, operating under the name HypoVereinsbank, and part of the UniCredit Group has agreed to enter a guilty plea to conspiring to violate the International Emergency Economic Powers Act (IEEPA) and to defraud the United States by processing hundreds of millions of dollars of transactions through the U.S. financial system on behalf of an entity designated as a weapons of mass destruction proliferator and other Iranian entities subject to U.S. economic sanctions.  UniCredit Bank Austria (BA), another financial institution in the UniCredit Group, headquartered in Vienna, Austria, agreed to forfeit $20 million and entered into a non-prosecution agreement to resolve an investigation into its violations of IEEPA.  UniCredit SpA, the parent of both UCB AG and BA, has agreed to ensure that UCB AG and BA’s obligations are fulfilled.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia, Assistant Director in Charge William F. Sweeny of the FBI’s New York Field Office and Special Agent in Charge Kelly Jackson of the IRS-Criminal Investigations (CI) Washington Field Division made the announcement.

According to court documents, over the course of almost 10 years, UCB AG knowingly and willfully moved at least $393 million through the U.S. financial system on behalf of sanctioned entities, most of which was for an entity the U.S. Government specifically prohibited from accessing the U.S. financial system.  UCB AG engaged in this criminal conduct through a scheme, formalized in its own bank polices and designed to conceal from U.S. regulators and banks the involvement of sanctioned entities in certain transactions.  UCB AG routed illegal payments through U.S. financial institutions for the benefit of the sanctioned entities in ways that concealed the involvement of the sanctioned entities, including through the use of companies that UCB AG knew would appear unconnected to the sanctioned entity despite being controlled by the sanctioned entity.

“When the United States sanctioned Iranian entities for proliferating weapons of mass destruction, UCB AG went to great lengths to help one such entity – Islamic Republic of Iran Shipping Lines – evade sanctions to gain access to the U.S. financial system,” said Assistant Attorney General Benczkowski.  “The integrity of our financial system requires financial institutions to comply with our laws, and UCB AG willfully failed to do so.  Today’s guilty plea and $1.3 billion penalty are just punishments for undermining U.S. sanctions and putting our financial system at risk.”

“UCB AG’s actions in deliberately providing a designated weapons-of-mass-destruction proliferator with access to the U.S. financial system for almost two years after such access was prohibited by U.S. law were particularly egregious,” said U.S. Attorney Liu.  “The bank’s impending guilty plea and the accompanying monetary penalty announced today send a clear message that financial institutions that subvert U.S. sanctions, and therefore our national security, should expect severe consequences.”

"This case is a prime example of how some institutions erroneously believe they can game the U.S. financial system and conceal their nefarious activity,” said Assistant Director in Charge Sweeney.  "The FBI will root out and aggressively investigate institutions, like UCB AG, that conspire to violate U.S. sanctions on behalf of prohibited entities."

“The financial penalty announced today should dissuade other financial institutions around the world from scheming and circumventing U.S. sanctions by moving money around using various institutions and companies,” said Special Agent in Charge Jackson.  “Following the money is what we do—so too is holding those accountable who try to avoid following the law.”

UCB AG will waive indictment and be charged in a one-count felony criminal information, according to documents to be filed in federal court in the District of Columbia, charging UCB AG with knowingly and willfully conspiring to commit violations of IEEPA and to defraud the United States, from 2002 through 2011.  UCB AG has agreed to plead guilty to the information, has entered into a written plea agreement and has accepted responsibility for its criminal conduct.  UCB AG will enter its guilty plea before a judge in the District of Columbia.  UniCredit Group banks will pay total financial penalties of approximately $1.3 billion.  The plea agreement, subject to approval by the court, provides that UCB AG will forfeit $316,545,816 and pay a fine of $468,350,000.  

According to admissions in the non-prosecution agreement and accompanying statement of facts, between 2002 and 2012, BA used non-transparent methods to send payments related to sanctioned jurisdictions such as Iran through the United States.  BA conspired to violate IEEPA and defraud the United States by processing transactions worth at least $20 million through the United States on behalf of customers located or doing business in Iran and other countries subject to U.S. economic sanctions or customers otherwise subject to U.S. economic sanctions.  As a result of its crimes, BA will forfeit $20 million and has agreed to additional compliance and sanctions enhancements. 

In addition, UCB AG has entered into a plea agreement with the New York County District Attorney’s Office (DANY) for violating New York State law pursuant to which it will pay $316,545,816.  BA has also entered into a non-prosecution agreement with DANY for violating New York State law.  DANY conducted its own investigation alongside the Justice Department.

UniCredit SpA, UCB AG and BA have also entered into various settlement agreements with the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), the Board of Governors of the Federal Reserve System (the Federal Reserve) and the New York State Department of Financial Services (DFS) under which they will pay additional penalties of approximately $660 million as follows:  $611,023,421 to OFAC, which will be satisfied in part by payments to the Justice Department and the Federal Reserve, $157,770,000 to the Federal Reserve and $405 million to DFS.

The case was prosecuted by Senior Trial Attorney Margaret A. Moeser of the Bank Integrity Unit in the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorney Michelle Zamarin of the District of Columbia.  The case was investigated by the FBI and the IRS-CI.

The Bank Integrity Unit investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions.  The Unit’s prosecutions focus on banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

The Department of Justice expressed its gratitude to DANY, OFAC, the Federal Reserve, DFS and the Justice Department’s Office of International Affairs.  

WASHINGTON - UniCredit Bank AG (UCB AG), a financial institution headquartered in Munich, operating under the name HypoVereinsbank, and part of the UniCredit Group has agreed to enter a guilty plea to conspiring to violate the International Emergency Economic Powers Act (IEEPA) and to defraud the United States by processing hundreds of millions of dollars of transactions through the U.S. financial system on behalf of an entity designated as a weapons of mass destruction proliferator and other Iranian entities subject to U.S. economic sanctions.  UniCredit Bank Austria (BA), another financial institution in the UniCredit Group, headquartered in Vienna, Austria, agreed to forfeit $20 million and entered into a non-prosecution agreement to resolve an investigation into its violations of IEEPA.  UniCredit SpA, the parent of both UCB AG and BA, has agreed to ensure that UCB AG and BA’s obligations are fulfilled.

            Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia, Assistant Director in Charge William F. Sweeny of the FBI’s New York Field Office and Special Agent in Charge Kelly Jackson of the IRS-Criminal Investigations (CI) Washington Field Division made the announcement.

            According to court documents, over the course of almost 10 years, UCB AG knowingly and willfully moved at least $393 million through the U.S. financial system on behalf of sanctioned entities, most of which for an entity the U.S. Government specifically prohibited from accessing the U.S. financial system.  UCB AG engaged in this criminal conduct through a scheme, formalized in its own bank polices and designed to conceal from U.S. regulators and banks the involvement of sanctioned entities in certain transactions.  UCB AG routed illegal payments through U.S. financial institutions for the benefit of the sanctioned entities in ways that concealed the involvement of the sanctioned entities, including through the use of companies that UCB AG knew would appear unconnected to the sanctioned entity despite being controlled by the sanctioned entity.

            “When the United States sanctioned Iranian entities for proliferating weapons of mass destruction, UCB AG went to great lengths to help one such entity – Islamic Republic of Iran Shipping Lines – evade sanctions to gain access to the U.S. financial system,” said Assistant Attorney General Benczkowski.  “The integrity of our financial system requires financial institutions to comply with our laws, and UCB AG willfully failed to do so.  Today’s guilty plea and $1.3 billion penalty are just punishments for undermining U.S. sanctions and putting our financial system at risk.”

            “UCB AG’s actions in deliberately providing a designated weapons-of-mass-destruction proliferator with access to the U.S. financial system for almost two years after such access was prohibited by U.S. law were particularly egregious,” said U.S. Attorney Liu.  “The bank’s impending guilty plea and the accompanying monetary penalty announced today send a clear message that financial institutions that subvert U.S. sanctions, and therefore our national security, should expect severe consequences.”

            "This case is a prime example of how some institutions erroneously believe they can game the U.S. financial system and conceal their nefarious activity,” said Assistant Director in Charge Sweeney.  "The FBI will root out and aggressively investigate institutions, like UCB AG, that conspire to violate U.S. sanctions on behalf of prohibited entities."

            “The financial penalty announced today should dissuade other financial institutions around the world from scheming and circumventing U.S. sanctions by moving money around using various institutions and companies,” said Special Agent in Charge Jackson.  “Following the money is what we do—so too is holding those accountable who try to avoid following the law.”

            UCB AG will waive indictment and be charged in a one-count felony criminal information, according to documents to be filed in federal court in the District of Columbia, charging UCB AG with knowingly and willfully conspiring to commit violations of IEEPA and to defraud the United States, from 2002 through 2011.  UCB AG has agreed to plead guilty to the information, has entered into a written plea agreement and has accepted responsibility for its criminal conduct.  UCB AG will enter its guilty plea before a judge in the District of Columbia.  UniCredit Group banks will pay total financial penalties of approximately $1.3 billion.  The plea agreement, subject to approval by the court, provides that UCB AG will forfeit $316,545,816 and pay a fine of $468,350,000.  

            According to admissions in the non-prosecution agreement and accompanying statement of facts, between 2002 and 2012, BA used non-transparent methods to send payments related to sanctioned jurisdictions such as Iran through the United States.  BA conspired to violate IEEPA and defraud the United States by processing transactions worth at least $20 million through the United States on behalf of customers located or doing business in Iran and other countries subject to U.S. economic sanctions or customers otherwise subject to U.S. economic sanctions.  As a result of its crimes, BA will forfeit $20 million and has agreed to additional compliance and sanctions enhancements. 

            In addition, UCB AG has entered into a plea agreement with the New York County District Attorney’s Office (DANY) for violating New York State law pursuant to which it will pay $316,545,816.  BA has also entered into a non-prosecution agreement with DANY for violating New York State law.  DANY conducted its own investigation alongside the Justice Department.

            UniCredit SpA, UCB AG and BA have also entered into various settlement agreements with the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), the Board of Governors of the Federal Reserve System (the Federal Reserve) and the New York State Department of Financial Services (DFS) under which they will pay additional penalties of approximately $660 million as follows:  $611,023,421 to OFAC, which will be satisfied in part by payments to the Justice Department and the Federal Reserve, $157,770,000 to the Federal Reserve and $405 million to DFS.

            The case was prosecuted by Senior Trial Attorney Margaret A. Moeser of the Bank Integrity Unit in the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorney Michelle Zamarin of the District of Columbia.  The case was investigated by the FBI and the IRS-CI.

            The Bank Integrity Unit investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions.  The Unit’s prosecutions focus on banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

            The Department of Justice expressed its gratitude to DANY, OFAC, the Federal Reserve, DFS and the Justice Department’s Office of International Affairs.  

            WASHINGTON –Thai national Apichart Srivaranon 34, was sentenced today in the District of Columbia to 26 months in prison on federal charges of conspiracy to defraud the United States and to export defense articles from the United States to Thailand.

            The announcement was made by U.S. Attorney for the District of Columbia Jessie K. Liu, U.S. Attorney for the District of Maryland Robert K. Hur, and Acting Special Agent in Charge Cardell T. Morant of the Baltimore Field Office of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

            Srivaranon pleaded guilty to charges in both Maryland and the District of Columbia in January and March 2019, respectively, as required by his plea agreement in each District.

            In the District of Columbia, he was sentenced today by the Honorable Reggie B. Walton. In Maryland, he was sentenced on April 11, 2018 by the Honorable George J. Hazel, who imposed a sentence of 26 months of incarceration and a forfeiture of $10,000.  The sentences imposed in both cases will be served concurrently.  Following his prison terms, Srivaranon will be deported from the United States and returned to Thailand.

          Srivaranon admitted that between 2012 and 2014, he conspired with individuals in the United States and Thailand to obtain firearm parts in the United States that were listed on the United States Munitions List (USML) and then exported, and attempted to export, the firearm parts to Thailand without having first obtained the required license or written authorization from the Directorate of Defense Trade Controls, an office in the United States Department of State.

            As detailed in his plea agreements, during the conspiracy, Srivaranon and his co-conspirators ordered firearms parts on the USML from U.S.-based firearms parts retailers and caused those firearms parts to ship to addresses in the United States where co-conspirators lived, visited, or conducted business. At the direction of Srivaranon and others, co-conspirators would then repackage the USML firearms parts in the United States; falsely label United States Postal Services Form 2976 and Customs Declarations CN 22 (sender’s declarations forms) by using fake names for return addresses; falsely declare the contents of the packages and understate their value; and then ship the USML firearms parts to Thailand via the U.S. mail and private shipping companies.  This was done to conceal the prohibited exports from detection by the U.S. government.

            In the District of Columbia cases, Srivaranon admitted that to facilitate the scheme, he and others deposited funds into co-conspirators’ bank accounts in Thailand.  The funds were deposited in Thai Baht currency.  The co-conspirators would then withdraw U.S. dollars from automatic teller machines in the United States, as payment for their participation in the scheme. 

            Srivaranon was arrested in Las Vegas, Nev. on January 22, 2018, after flying there from Thailand to attend a trade show unrelated to the charges in the case.  He has been in custody since his arrest.

            In announcing the sentences, U.S. Attorney Liu, U.S. Attorney Hur, and Acting Special Agent in Charge Morant commended the work of those who investigated the case from the HSI’s Baltimore Field Office. They also expressed appreciation for the efforts of those who worked on the case from the District of Columbia, including Assistant U.S. Attorney Frederick Yette and Trial Attorney Rebecca A. Caruso of the Justice Department’s Criminal Division. They also commended the work of Assistant U.S. Attorneys Kelly Hayes and Bryan Foreman, who handled the related prosecution in the District of Maryland.

WASHINGTON – Keith Forney, 60, of Clinton, Md., has been found guilty by a jury of fraud and other charges related to his fraudulently obtaining preferences for his company, Forney Enterprises, Inc. (FEI), in bidding for District of Columbia government contracts.

            The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and District of Columbia Inspector General Daniel W. Lucas.

            Forney was found guilty of three counts of fraud, two counts of perjury, and one count of corrupt election practices.  The verdict was returned on April 11, 2019, following a trial in the Superior Court of the District of Columbia. The Honorable Michael O’Keefe scheduled sentencing for June 24, 2019.  Forney faces a maximum sentence of three years in prison for the fraud counts, ten years for the perjury counts, and five years for corrupt election practices. 

            Forney was previously found guilty on April 1, 2019, in a bench trial before Judge O’Keefe, of 11 counts of making illegal campaign contributions.  The maximum sentence for each of these counts is six months in prison.

            According to the government’s evidence, FEI was a business located in the District of Columbia.  The District government had a preference program for local businesses when bidding for D.C. government contracts.  The Department of Small and Local Business Development (DSLBD) certified that local businesses were eligible for preferences in certain categories.  One of the categories was as a resident-owned business (ROB).  The ROB category was worth five preference points, meaning that a bid was evaluated as if it was 5% less than the actual bid amount.  On average, FEI bid for 15-30 government contracts per year using the ROB preference points.  All of the contracts were worth over $1 million.

            In 2012, 2014, and 2016, Forney submitted applications to DSLBD listing an address in the District of Columbia as his residence in order to obtain the ROB preference points.  Forney never lived at the address.  He had purchased the property in 2005 when it was being leased to a tenant.  Forney continued to rent the property out while using the address for the ROB designation.  Forney also obtained a D.C. driver’s license and a D.C. voter registration with the address of the rental property.  He then submitted these documents to DSLBD to make it appear that he lived there.  Forney applied for his D.C. voter registration in July 2007.  He certified on the application that he was not registered to vote in any other jurisdiction when in fact he was registered to vote in Maryland.  Forney continued to vote in Maryland after registering to vote in D.C. and did not cancel his Maryland registration until 2015.  Forney also obtained Maryland and D.C. driver’s licenses on the same day.

            The evidence at trial on the campaign finance charges established that Forney made the maximum allowable donations as an individual and on behalf of FEI to three candidates running for the D.C. council.  Forney then directed associates to make personal contributions to these same candidates.  Forney used FEI funds to reimburse the associates for the contributions.

            This case was investigated by the FBI’s Washington Field Office and the District of Columbia Office of the Inspector General. It is being prosecuted by Assistant U.S. Attorneys Anthony Saler and Andrea Duvall. Assistance was provided by Assistant U.S. Attorney Daniel Lenerz, Financial Analyst: Bryan J. Snitselaar. Paralegal Specialists: C. Rosalind Pressley, Joshua Fein, and Amanda Rohde; former Paralegal Specialists Toni Anne Donato and Kristy Penny, and former Criminal Investigator Juan Juarez.

A federal grand jury today returned an indictment charging Gregory B. Craig, a Washington-based lawyer, with making false statements and concealing material information about his activities on behalf of Ukraine from the Department of Justice, National Security Division’s Foreign Agents Registration Act Unit (FARA Unit). 

The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, and Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office.

Craig, 74, of Washington, D.C., was indicted by a grand jury in the U.S. District Court for the District of Columbia for willfully falsifying and concealing material facts from the FARA Unit, in violation of Title 18, United States Code, Section 1001(a)(1), and for making false and misleading statements to the FARA Unit, in violation Title 22, United States Code, Section 618(a)(2).

An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and is not evidence of guilt.  Every defendant is presumed innocent until, and unless, proven guilty.

The maximum penalties for the charged offenses are, respectively, five years’ imprisonment and a $250,000 fine, and five years’ imprisonment and a $10,000 fine.  The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes.  The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

Craig is to be arraigned at a date to be scheduled by the Court.

This case is being investigated by the FBI’s New York Field Office. It is being prosecuted by Assistant U.S. Attorneys Fernando Campoamor-Sanchez and Molly Gaston of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Jason McCullough of the Justice Department’s National Security Division.

WASHINGTON – A federal grand jury today returned an indictment charging Gregory B. Craig, a Washington-based lawyer, with making false statements and concealing material information about his activities on behalf of Ukraine from the Department of Justice, National Security Division’s Foreign Agents Registration Act Unit (FARA Unit). 

            The announcement was made by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jessie K. Liu for the District of Columbia, and Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office.

            Craig, 74, of Washington, D.C., was indicted by a grand jury in the U.S. District Court for the District of Columbia for willfully falsifying and concealing material facts from the FARA Unit, in violation of Title 18, United States Code, Section 1001(a)(1), and for making false and misleading statements to the FARA Unit, in violation Title 22, United States Code, Section 618(a)(2).

            An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and is not evidence of guilt.  Every defendant is presumed innocent until, and unless, proven guilty.

            The maximum penalties for the charged offenses are, respectively, five years’ imprisonment and a $250,000 fine, and five years’ imprisonment and a $10,000 fine.  The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes.  The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

            Craig is to be arraigned at a date to be scheduled by the Court.

            This case is being investigated by the FBI’s New York Field Office. It is being prosecuted by Assistant U.S. Attorneys Fernando Campoamor-Sanchez and Molly Gaston of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Jason McCullough of the Justice Department’s National Security Division.

WASHINGTON - U.S. Attorney Jessie K. Liu and the Victim Witness Assistance Unit of the U.S. Attorney’s Office for the District of Columbia paid tribute today with a Moment of Silence at a ceremony honoring crime victims and survivors for their remarkable courage, determination and sacrifice.

            At mid-afternoon, U.S. Attorney Liu, Principal Assistant U.S. Attorney Alessio D. Evangelista, and dozens of attorneys, victim advocates and support personnel gathered outside the office for a Moment of Silence, followed by the reading of first names of 61 victims and survivors whose experiences inspired all those seeking justice.

            The event was timed with the annual observance of National Crime Victims’ Rights Week. This year’s national theme, “Honoring Our Past. Creating Hope for the Future,” celebrates the progress made over the decades and looks to a future of crime victim services that are even more inclusive, accessible, and trauma-informed.

            “We gathered this afternoon to take a brief moment out of our busy day to honor the crime victims and survivors we work so hard to serve,” said U.S. Attorney Liu. “Those of us who work for our Office come to this building most days with some sense of anticipation, commitment or even pride.  Yet for crime victims, this building is the last place they want to be – and we hope that the work that we do helps these victims get through the worst of days.  For crime victims, this process has never been easy. But the passage of crime victims’ rights legislation has given victims a powerful voice and mandated that they are not forgotten as the case jackets pile up on our desks.  So it is fitting that we step away from our desks today – as we do every April – to take a moment to recognize the victims and survivors who inspire and motivate us. “

            Today’s event was developed and organized by the Victim Witness Assistance Unit of the U.S. Attorney’s Office. Members of the Unit provide essential services and support to victims and witnesses, such as making referrals for counseling and other services, addressing safety concerns, arranging travel, and accompanying victims to court proceedings.  The Unit also notifies victims of their rights and provides information regarding significant case events, such as the filing of charges, plea hearings, trials and sentencing hearings.

            Each year in April, the Department of Justice’s Office for Victims of Crime, within the Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week. President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring greater sensitivity to the needs and rights of victims of crime. The Justice Department will host the Office for Victims of Crime’s annual National Crime Victims’ Service Awards Ceremony in Washington, D.C. on April 12, 2019, to honor outstanding individuals and programs that serve victims of crime.

            “Victims of crime deserve justice. This Department works every day to help them recover and to find, prosecute, and convict those who have done them harm,” said Attorney General William P. Barr. “During this National Crime Victims’ Rights Week, we pause to remember the millions of Americans who have been victims of crime and we thank public servants who have served them in especially heroic ways. This week the men and women of the Department recommit ourselves once again to ensuring that crime victims continue to have a voice in our legal system, to securing justice for them, and to preventing other Americans from suffering what they have endured.”

            The Office of Justice Programs provides innovative leadership to federal, state, local, and tribal justice systems, by disseminating state-of-the art knowledge and practices across America, and providing grants for the implementation of these crime-fighting strategies. Because most of the responsibility for crime control and prevention falls to law enforcement officers in states, cities, and neighborhoods, the federal government can be effective in these areas only to the extent that it can enter into partnerships with these officers. More information about the Office of Justice Programs and its components can be found at www.ojp.gov. More information about Crime Victim’s Rights Week can be found at https://ovc.ncjrs.gov/ncvrw/.

            Additional information about the Victim Witness Assistance Unit is available at https://www.justice.gov/usao-dc/victim-witness-assistance-unit

WASHINGTON – Harry Pressley, 28, of Washington, D.C., and Jaquan Warren, 29, of New York, N.Y., pled guilty today to charges stemming from the shooting of a man they lured via Facebook and text messages to a location in Southeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            Both defendants pled guilty to charges of aggravated assault while armed and obstruction of justice. Pressley also pled guilty to a firearms charge in a separate case. The pleas, which are subject to the Court’s approval, call for Pressley to be sentenced to an agreed-upon range of 10 to 15 years in prison and for Warren to be sentenced to an agreed-upon term of eight years in prison, with two years of that time to be suspended. The Honorable Danya A. Dayson scheduled sentencing for June 21, 2019. Pressley and Warren remain in custody.

            According to the government’s evidence, Pressley and Warren lured the victim to Southeast Washington by posing as a woman on Facebook. Warren borrowed the woman’s phone, which is how they accessed her Facebook account. Starting on Nov. 22, 2016, the two communicated with the victim over Facebook and text messages, using flirtatious language and suggesting the possibility of a late-night sexual encounter. At about 4 a.m. on Nov. 23, 2016, the defendants texted the victim that he should come to the 2600 block of Southern Avenue SE, noting how, “It’ll be worth your time I promise I wouldn’t be texting this late to play babe.”

            At about 4:35 a.m., as the victim exited a park near the intersection of 23rd Street and Savannah Terrace Street SE, he noticed a man dressed in all black emerge from a van. The man – who wore a mask that exposed his eyes and nose – extended his arm and shot at the victim from five to 10 feet away. The victim was hit once in the stomach and once in the upper left arm. He survived the attack and later identified Pressley, a childhood friend, as the shooter. The victim suffered serious injuries to his kidney, small intestines, colon, rib case, and left arm.

            Warren returned the cellphone hours after the shooting. Two days later, on Nov. 25, 2016, the woman agreed to accompany Warren and Pressley on a short trip to South Carolina. During the trip, Warren asked the woman to take the wheel and she agreed. As she approached the driver’s side, Pressley fired two gunshots into her arm and two in the back. Pressley and Warren then drove off, leaving the woman for dead in the middle of a deserted road in Florence County, S.C., at 3 a.m. A man who happened to be driving by noticed her and called 911. The woman survived the attack. 

            Pressley was arrested on Nov. 29, 2016, in the District of Columbia. Warren was eventually arrested on May 5, 2017, in New York City. At the time of his arrest, Warren provided a fake ID and alias. Pressley, meanwhile, tried to concoct a false alibi while incarcerated.

            Pressley and Warren had faced attempted murder charges in South Carolina, which are to be dismissed as part of the plea agreement in this case.

            In the second case, Pressley pled guilty to a firearms offense stemming from his arrest on Sept. 9, 2015, in Southeast Washington by officers who caught him with the weapon.

            The shooting case was investigated by the Metropolitan Police Department. Assistance was provided by the Florence County, S.C. Sheriff’s Office, the U.S. Marshals Service, the Delaware State Police, and the Capital Area Regional Fugitive Task Force. The case is being prosecuted by Assistant U.S. Attorney Ahmed Baset, with assistance from Florence County, S.C. Assistant Solicitor General Ryan White and Victim/Witness Advocate Jennifer Clark and Intern Andrew Delaplane, both of the U.S. Attorney’s Office.

Standard Chartered Bank (SCB), a global financial institution headquartered in London, England, has agreed to forfeiture of $240 million, a fine of $480 million, and to the amendment and extension of its deferred prosecution agreement (DPA) with the Justice Department for an additional two years for conspiring to violate the International Emergency Economic Powers Act (IEEPA).  This criminal conspiracy, lasting from 2007 through 2011, resulted in SCB processing approximately 9,500 financial transactions worth approximately $240 million through U.S. financial institutions for the benefit of Iranian entities. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia, Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office, Chief Don Fort of the IRS Criminal Investigation (CI), and District Attorney Cyrus R. Vance Jr. of New York County made the announcement.

The New York County District Attorney’s Office (DANY) is also announcing today that SCB has agreed to amend its DPA with DANY and extend for two additional years, and to pay an additional financial penalty of $292,210,160.  Under the amended DPA with DANY, SCB has admitted that it violated New York State law by, among other things, falsifying the records of New York financial institutions.  SCB has also entered into separate settlement agreements with the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), the Board of Governors of the Federal Reserve System (the Federal Reserve), the New York State Department of Financial Services (DFS), and the United Kingdom’s Financial Conduct Authority (FCA) under which SCB shall pay additional penalties totaling more than $477 million.  The Justice Department has agreed to credit a portion of these related payments and, after crediting, will collect $52,210,160 of the fine, in addition to SCB’s $240 million forfeiture.

In connection with the conspiracy, a former employee of SCB’s branch in Dubai, United Arab Emirates (UAE), referred to as Person A, pleaded guilty in the District of Columbia for conspiring to defraud the United States and to violate IEEPA.  A two-count criminal indictment was unsealed today in federal court in the District of Columbia charging Mahmoud Reza Elyassi, an Iranian national, 49, and former customer of SCB Dubai, with participating in the conspiracy.

“Today’s resolution sends a clear message to financial institutions and their employees: if you circumvent U.S. sanctions against rogue states like Iran—or assist those who do—you will pay a steep price,” said Assistant Attorney General Benczkowski.  “When a global bank processes transactions through the U.S. financial system, its compliance program must be up to the task of detecting and preventing sanctions violations—and when it is not, banks have an obligation to identify, report, and remediate any shortcomings.  The Justice Department is committed to protecting our U.S. financial system and will continue to hold financial institutions and individuals to account when they violate U.S. sanctions laws.” 

“SCB and the individuals whose charges were unsealed today undermined the integrity of our financial system and harmed our national security by deliberately providing Iranians with coveted access to the U.S. economy,” said U.S. Attorney Liu.  “The financial penalty announced today leaves no doubt that repeat corporate offenders with deficient compliance programs will pay a steep price.  When bank employees and customers conspire to violate U.S. sanctions and subvert our national security, we will bring them to justice no matter where they reside or operate.”

“U.S. sanctions laws exist to protect our national security and the integrity of our financial systems,” said FBI Assistant Director in Charge Sweeney.  “Global banks that facilitate transactions through our financial institutions have to play by these rules, plain and simple.  Allowing hostile nations access to our economy is dangerous business.  The deferred prosecution agreement and charges announced today make it abundantly clear that any alleged violation of IEEPA, whether on behalf of an individual or entity, will not be taken lightly.”

“The financial penalty announced today should dissuade other financial institutions around the world from thinking they can circumvent U.S. sanctions by moving money around the world through various institutions and in various forms,” said IRS-CI Chief Fort.  “Following complex money trails is what we do—so too is holding those accountable who try to avoid following the law.”

“Our office’s unique jurisdiction and expert personnel have again enabled us to deliver hundreds of millions in ill-gotten gains to the People of New York while contributing to America’s longstanding effort to promote democratic values around the world,” said Manhattan District Attorney Vance.  “We are honored and privileged to collaborate in this shared endeavor with the supremely talented public servants of the U.S. Departments of Justice and Treasury, the New York Department of Financial Services, and the Federal Reserve Bank of New York.”

A two-count felony criminal information was filed today in the District of Columbia charging SCB with illegally conspiring to violate IEEPA.  The first count alleges SCB’s participation in a criminal conspiracy from 2001 through 2007; the United States first charged SCB with this illegal conduct on Dec. 10, 2012, and under the terms of a DPA entered the same day, the government agreed to defer prosecution and SCB agreed to pay a financial penalty of $227 million.  The second count alleges SCB’s participation in a criminal conspiracy to violate IEEPA from 2007 through 2011.  This latter conspiracy resulted in SCB intentionally processing U.S. dollar transactions through the U.S. financial system for the benefit of Iranian individuals and entities worth approximately $240 million.  In the amended DPA, SCB admitted and accepted responsibility for its criminal conduct, agreed to extend the term of the agreement for an additional two years and, among other things, agreed to additional cooperation, compliance and disclosure obligations. 

As part of the amended DPA announced today, SCB admitted that, from 2007 through 2011, two former employees of its branch in Dubai, willfully conspired to help Iran-connected customers conduct U.S. dollar transactions through the U.S. financial system for the benefit of Iranian individuals and entities.  One of these Iran-connected customers was Elyassi, an Iranian national who operated business accounts with SCB’s Dubai branch while residing in Iran.  SCB’s former employees helped Elyassi manage these accounts, concealed their Iranian connections, and facilitated foreign currency transactions in U.S. dollars.  SCB’s former employees knew that Elyassi’s business organizations operated from Iran and conducted U.S. dollar transactions for the benefit of Iranian interests, and helped Elyassi disguise his Iranian connections to avoid suspicion.

According to the indictment unsealed today, Elyassi and his co-conspirators registered numerous supposed general trading companies in the UAE, and used those companies as fronts for a money exchange business located in Iran.  Between November 2007 and August 2011, Elyassi used a business account at SCB’s Dubai branch to cause U.S. dollar transactions to be sent and received through the U.S. financial system for the benefit of individuals and entities ordinarily resident in Iran in violation of U.S. economic sanctions.  The charges in the indictment as to Elyassi are merely allegations, and Elyassi is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

SCB admitted to processing approximately 9,500 U.S. dollar transactions through the United States totaling approximately $240 million on behalf of Elyassi’s companies between 2007 and 2011.  More than half of these U.S. dollar transactions were the result of deficiencies in SCB’s compliance program which allowed customers to request U.S. dollar transactions from within sanctioned countries, including Iran.

Since mid-2013, SCB has engaged in significant remediation, including the comprehensive enhancement of its U.S. economic sanctions compliance program and significant improvements to its financial crime compliance program.  Once presented with evidence of potential post-2007 sanctions violations, SCB provided substantial cooperation in the government’s investigation, including by producing significant evidence of criminal wrongdoing perpetrated by its employees and customers.

This matter was investigated by the FBI’s New York Field Office and the IRS-CI’s Washington D.C. Field Division.  The cases are being prosecuted by the Criminal Division’s Money Laundering and Asset Recovery Section’s Bank Integrity Unit and the U.S. Attorney’s Office for the District of Columbia.  Trial Attorney Jennifer Wine of the Bank Integrity Unit and Assistant U.S. Attorneys Michael Friedman and Peter Lallas of the District of Columbia are handling the matters.

The Bank Integrity Unit investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions.  The Unit’s prosecutions focus on banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

The New York County District Attorney’s Office conducted its own investigation in conjunction with the Justice Department, including Assistant District Attorneys Jose Fanjul and Kevin Wilson serving as Special Assistant U.S. Attorneys in the District of Columbia.  The Justice Department expressed its gratitude to OFAC, the Federal Reserve, DFS, and the FCA.  The Justice Department’s Office of International Affairs provided assistance.

WASHINGTON – Standard Chartered Bank (SCB), a global financial institution headquartered in London, England, has agreed to forfeiture of $240 million, a fine of $480 million, and to the amendment and extension of its deferred prosecution agreement (DPA) with the Justice Department for an additional two years for conspiring to violate the International Emergency Economic Powers Act (IEEPA). This criminal conspiracy, lasting from 2007 through 2011, resulted in SCB processing approximately 9,500 financial transactions worth approximately $240 million through U.S. financial institutions for the benefit of Iranian entities.

            Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia, Assistant Director in Charge William F. Sweeney, Jr. of the FBI’s New York Field Office, Chief Don Fort of the IRS Criminal Investigation (CI), and District Attorney Cyrus R. Vance Jr. of New York County made the announcement.

            The New York County District Attorney’s Office (DANY) is also announcing today that SCB has agreed to amend its DPA with DANY and extend for two additional years, and to pay an additional financial penalty of $292,210,160. Under the amended DPA with DANY, SCB has admitted that it violated New York State law by, among other things, falsifying the records of New York financial institutions. SCB has also entered into separate settlement agreements with the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC), the Board of Governors of the Federal Reserve System (the Federal Reserve), the New York State Department of Financial Services (DFS), and the United Kingdom’s Financial Conduct Authority (FCA) under which SCB shall pay additional penalties totaling more than $477 million. The Justice Department has agreed to credit a portion of these related payments and, after crediting, will collect $52,210,160 of the fine, in addition to SCB’s $240 million forfeiture.

            In connection with the conspiracy, a former employee of SCB’s branch in Dubai, United Arab Emirates (UAE), referred to as Person A, pleaded guilty in the District of Columbia for conspiring to defraud the United States and to violate IEEPA. A two-count criminal indictment was unsealed today in federal court in the District of Columbia charging Mahmoud Reza Elyassi, an Iranian national, 49, and former customer of SCB Dubai, with participating in the conspiracy.

            “Today’s resolution sends a clear message to financial institutions and their employees: if you circumvent U.S. sanctions against rogue states like Iran—or assist those who do—you will pay a steep price,” said Assistant Attorney General Benczkowski. “When a global bank processes transactions through the U.S. financial system, its compliance program must be up to the task of detecting and preventing sanctions violations—and when it is not, banks have an obligation to identify, report, and remediate any shortcomings. The Justice Department is committed to protecting our U.S. financial system and will continue to hold financial institutions and individuals to account when they violate U.S. sanctions laws.” 

            “SCB and the individuals whose charges were unsealed today undermined the integrity of our financial system and harmed our national security by deliberately providing Iranians with coveted access to the U.S. economy,” said U.S. Attorney Liu. “The financial penalty announced today leaves no doubt that repeat corporate offenders with deficient compliance programs will pay a steep price. When bank employees and customers conspire to violate U.S. sanctions and subvert our national security, we will bring them to justice no matter where they reside or operate.”

            “U.S. sanctions laws exist to protect our national security and the integrity of our financial systems,” said FBI Assistant Director in Charge Sweeney. “Global banks that facilitate transactions through our financial institutions have to play by these rules, plain and simple. Allowing hostile nations access to our economy is dangerous business. The deferred prosecution agreement and charges announced today make it abundantly clear that any alleged violation of IEEPA, whether on behalf of an individual or entity, will not be taken lightly.”

            “The financial penalty announced today should dissuade other financial institutions around the world from thinking they can circumvent U.S. sanctions by moving money around the world through various institutions and in various forms,” said IRS-CI Chief Fort. “Following complex money trails is what we do—so too is holding those accountable who try to avoid following the law.”

            “Our office’s unique jurisdiction and expert personnel have again enabled us to deliver hundreds of millions in ill-gotten gains to the People of New York while contributing to America’s longstanding effort to promote democratic values around the world,” said Manhattan District Attorney Vance. “We are honored and privileged to collaborate in this shared endeavor with the supremely talented public servants of the U.S. Departments of Justice and Treasury, the New York Department of Financial Services, and the Federal Reserve Bank of New York.”

            A two-count felony criminal information was filed today in the District of Columbia charging SCB with illegally conspiring to violate IEEPA. The first count alleges SCB’s participation in a criminal conspiracy from 2001 through 2007; the United States first charged SCB with this illegal conduct on Dec. 10, 2012, and under the terms of a DPA entered the same day, the government agreed to defer prosecution and SCB agreed to pay a financial penalty of $227 million. The second count alleges SCB’s participation in a criminal conspiracy to violate IEEPA from 2007 through 2011. This latter conspiracy resulted in SCB intentionally processing U.S. dollar transactions through the U.S. financial system for the benefit of Iranian individuals and entities worth approximately $240 million. In the amended DPA, SCB admitted and accepted responsibility for its criminal conduct, agreed to extend the term of the agreement for an additional two years and, among other things, agreed to additional cooperation, compliance and disclosure obligations.

            As part of the amended DPA announced today, SCB admitted that, from 2007 through 2011, two former employees of its branch in Dubai, willfully conspired to help Iran-connected customers conduct U.S. dollar transactions through the U.S. financial system for the benefit of Iranian individuals and entities. One of these Iran-connected customers was Elyassi, an Iranian national who operated business accounts with SCB’s Dubai branch while residing in Iran. SCB’s former employees helped Elyassi manage these accounts, concealed their Iranian connections, and facilitated foreign currency transactions in U.S. dollars. SCB’s former employees knew that Elyassi’s business organizations operated from Iran and conducted U.S. dollar transactions for the benefit of Iranian interests, and helped Elyassi disguise his Iranian connections to avoid suspicion.

            According to the indictment unsealed today, Elyassi and his co-conspirators registered numerous supposed general trading companies in the UAE, and used those companies as fronts for a money exchange business located in Iran. Between November 2007 and August 2011, Elyassi used a business account at SCB’s Dubai branch to cause U.S. dollar transactions to be sent and received through the U.S. financial system for the benefit of individuals and entities ordinarily resident in Iran in violation of U.S. economic sanctions. The charges in the indictment as to Elyassi are merely allegations, and Elyassi is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

            SCB admitted to processing approximately 9,500 U.S. dollar transactions through the United States totaling approximately $240 million on behalf of Elyassi’s companies between 2007 and 2011. More than half of these U.S. dollar transactions were the result of deficiencies in SCB’s compliance program which allowed customers to request U.S. dollar transactions from within sanctioned countries, including Iran.

            Since mid-2013, SCB has engaged in significant remediation, including the comprehensive enhancement of its U.S. economic sanctions compliance program and significant improvements to its financial crime compliance program. Once presented with evidence of potential post-2007 sanctions violations, SCB provided substantial cooperation in the government’s investigation, including by producing significant evidence of criminal wrongdoing perpetrated by its employees and customers.

            This matter was investigated by the FBI’s New York Field Office and the IRS-CI’s Washington D.C. Field Division. The cases are being prosecuted by the Criminal Division’s Money Laundering and Asset Recovery Section’s Bank Integrity Unit and the U.S. Attorney’s Office for the District of Columbia. Trial Attorney Jennifer Wine of the Bank Integrity Unit and Assistant U.S. Attorneys Michael Friedman and Peter Lallas of the District of Columbia are handling the matters.

            The Bank Integrity Unit investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions.  The Unit’s prosecutions focus on banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

            The New York County District Attorney’s Office conducted its own investigation in conjunction with the Justice Department, including Assistant District Attorneys Jose Fanjul and Kevin Wilson serving as Special Assistant U.S. Attorneys in the District of Columbia. The Justice Department expressed its gratitude to OFAC, the Federal Reserve, DFS, and the FCA. The Justice Department’s Office of International Affairs provided assistance.

WASHINGTON – Tony John Evans, 30, formerly of New York, N.Y., was sentenced today to five years in prison for his role in a wide-ranging scheme that caused a Maryland man to embezzle more than $4 million from his employer in Washington, D.C.

            The announcement was made by U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.

            Evans pled guilty in September 2018, in the U.S. District Court for the District of Columbia, to one count of interference with interstate commerce by extortion and aiding and abetting and causing an act to be done. He was sentenced by the Honorable Emmet G. Sullivan. Following his prison term, Evans will be placed on three years of supervised release. In addition, he was ordered to pay $4,217,542 in restitution, as well as $3,119,010 in a forfeiture money judgment.

            Evans and several members of his family were indicted in April 2018.

            In his plea agreement, Evans admitted that from January 2017 through April 2017, he worked with other individuals to extort and defraud others out of money, precious metals, and luxury merchandise. As part of the scheme, he pretended to be a mobster in order to get a Maryland man to provide him and his fellow conspirators with money, luxury goods, and gold. Evans threatened to harm the man and his family if payments were not made.

            As a result of Evans and other conspirators’ actions, the man embezzled more than $4 million from his employer in the District of Columbia over a three-month period for the purpose of providing it to Evans and the other conspirators. Towards the end of the conspiracy, the man delivered more than $1 million in gold—which he had purchased with embezzled funds—to a hotel in New York. Evans admitted that he retrieved the gold bars, delivered them to other individuals, and sold several of the bars to a gold dealer in New York in exchange for cash. 

            In October 2017, the FBI executed a search warrant on Evans’s safe deposit box at a bank in New York. The safe deposit box contained gold and expensive jewelry, including luxury watches and diamonds. As part of his plea agreement, Evans agreed to forfeit his rights to all of the items recovered from the safe deposit box. He also surrendered two additional one-kilogram gold bars to the FBI, along with a Rolex watch, which he purchased with criminal proceeds.

            Charges against five co-defendants remain pending.

            In announcing the sentence, U.S. Attorney Liu and Assistant Director in Charge McNamara commended the work of those who investigated the case from the FBI’s Washington Field Office. They expressed appreciation for the assistance provided by the U.S. Department of Justice Office of the Inspector General. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Diane Lucas, who is assisting with forfeiture issues, Paralegal Specialists Brittany Phillips and Joshua Fein, former Paralegal Specialists Jessica Mundi and Kristy Penny, and Forensic Accountant Bryan Snitselaar.

            Finally, they commended the work of Assistant U.S. Attorneys David Kent and Kondi Kleinman, who investigated and are prosecuting the case.

WASHINGTON – A former staff member who worked in an office of a United States Senator pled guilty today to federal charges stemming from his theft of Senate information and the illegal posting of restricted personal information of five U.S. Senators on the Wikipedia website, as well as related conduct.

            The announcement was made by Alessio D. Evangelista, the Acting U.S. Attorney in this case, and Matthew R. Verderosa, Chief of the U.S. Capitol Police.

            Jackson A. Cosko, 27, of Washington, D.C., pled guilty to five federal offenses: two counts of making public restricted personal information; one count of computer fraud; one count of witness tampering, and one count of obstruction of justice. Under federal sentencing guidelines, which are to be calculated at a later date, Cosko could face a prison term within the range of either 30 to 37 months or 46 to 57 months. The plea agreement requires Cosko to forfeit computers, cellphones and other equipment used in the crimes. The Honorable Senior Judge Thomas F. Hogan scheduled sentencing for June 13, 2019.

            According to the government’s evidence, the U.S. Capitol Police began an investigation on Sept. 27, 2018, after it was determined that the Wikipedia pages of three U.S. Senators had been edited to include restricted personal information without their knowledge or permission. This information included home addresses and personal telephone numbers. These edits took place roughly contemporaneously with public – and highly publicized – Senate proceedings related to a nomination for the U.S. Supreme Court. Then, on Oct. 1, 2018, similar information was posted on the Wikipedia pages of two additional Senators.

            “Doxxing” is the act of gathering, by licit and illicit means, and posting on the Internet personal identifying information (“PII”) and other sensitive information about an individual.

            In a statement of offense submitted as part of today’s plea, Cosko admitted that he had been angry about his termination in May 2018 from his employment as a computer systems administrator in the office of another U.S. Senator (described in court documents as Senator #1). As a result, beginning no later than July 2018 and continuing until October 2018, he engaged in an extensive computer fraud and data theft scheme. He admitted that he carried out the scheme by breaking into Senator # 1’s office on at least four occasions and accessing Senate-owned computers for the express purpose of stealing proprietary electronic information, including the personal contact information for numerous other Senators. He then published the contact information for five U.S. Senators (identified as Senators #2, 3, 4, 5, and 6) using Wikipedia and Twitter, with the intent to threaten and intimidate these five Senators and their families.  

            On the night of Oct. 2, 2018, according to the evidence, a witness saw Cosko at a computer in Senator # 1’s office. The witness confronted Cosko, who left the office. Later that evening, according to the statement of offense, Cosko sent a threatening e-mail to the witness, titling it, “I own EVERYTHING” and warning that, “If you tell anyone I will leak it all.” Additionally, that evening Cosko attempted to delete electronic evidence from items including a laptop computer that he used to obtain and download the stolen data.

            An investigation led to Cosko’s arrest the following day by the U.S. Capitol Police.

            This case was investigated by the U.S. Capitol Police. It is being prosecuted by Assistant U.S. Attorneys Demian S. Ahn, Tejpal S. Chawla, and Youli Lee. Assistance was provided by Paralegal Specialists Diane Brashears and Matthew Ruggierio and Victim/Witness Advocate Yvonne Bryant, all of the U.S. Attorney’s Office for the District of Columbia.

WASHINGTON – Shawne Proctor 27, and Calvin Abney 28, both of Washington D.C., were sentenced today to prison terms of 15 years and 12 years, respectively, on charges stemming from an armed robbery and pistol-whipping that took place in Southeast Washington in June 2018, U.S. Attorney Jessie K. Liu announced.

            Proctor and Abney were found guilty by a jury in January 2019 of charges of conspiracy, armed robbery, and possession of a firearm during a crime of violence. The verdict followed a month-long trial in the Superior Court of the District of Columbia. The men were sentenced by the Honorable Marisa Demeo. Following their prison terms, both men will be placed on five years of supervised release.

            According to the government’s evidence, Proctor and Abney conspired to commit the crime as part of a larger scheme to rob local drug dealers. In the early morning of June 9, 2018, Proctor, a former friend of one of the victims, called and requested marijuana. Proctor instructed the victim to drive from Maryland into the District of Columbia for the exchange.

            The victim, who did not have a car, brought a friend to drive him. Upon arriving to the location, in the 800 block of Southern Avenue SE, Proctor had the men drive to a more secluded street. When Proctor entered the victim’s car to inspect the marijuana, he signaled Abney by cellphone. Abney, who was armed with a firearm, entered the car, pistol-whipped the driver, and stole money and marijuana from both men. Two unidentified individuals helped with the crime by surrounding the vehicle armed with firearms, and then driving off in the victim’s car.

           The victim reported Proctor to the police and later identified Abney in a photo array. A search of both men’s cellphones revealed text messages setting up similar robberies. Proctor was arrested in June 2018, and Abney was arrested in August 2018. Both have been in custody ever since.

            At the time of the incident, Proctor was on supervision following his conviction for an armed robbery offense in Prince George’s County, and Abney was on supervision for conspiracy to commit armed bank robbery, a federal offense in Maryland. Both now could face additional time in those matters.

           In announcing the sentences, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also expressed appreciation for the assistance of the District of Columbia Department of Forensic Sciences. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Stephen Rickard and John Hill; Paralegal Specialists Richard Cheatham and Wanda Trice, and Victim/Witness Advocate Jennifer Allen.

           Finally, she commended the work of Assistant U.S. Attorneys Gauri Gopal and Alyse Constantinide, who investigated, indicted and prosecuted the matter.

WASHINGTON – Lamont Jones, 51, of Washington, D.C., was sentenced today to seven years in prison for an attack in which he shot an employee of a construction company multiple times, including the face, announced U.S. Attorney Jessie K. Liu.

            Jones plead guilty in January 2019, in the Superior Court of the District of Columbia, to a charge of assault with intent to kill. The plea, which was contingent upon the Court’s approval, called for Jones to be sentenced to seven years in prison. The Honorable Danya A. Dayson accepted the plea and sentenced Jones accordingly. Following his prison term, he will be placed on three years of supervised release.

            According to the government’s evidence, the shooting took place on Oct 26, 2018, at about 4 p.m., with Jones approaching the victim and shooting him multiple times at close range near a construction site in the 5300 block of D Street SE. One shot struck the victim in the head.

            The incident stemmed from an earlier dispute at the construction site at which both Jones and the victim were employed. Jones and another employee got into an argument at the construction earlier in the day on Oct. 26, 2018. Jones told the employee that he would kill him. Jones returned to the construction site later that day and, encountering only the victim and not the other employee, shot the victim multiple times.

            The victim reported that the delivery driver for the company was the individual who had shot him. Jones was identified as the only driver that visited that construction site on Oct. 26, 2018. One of four witnesses identified the defendant from a photo array, and Jones was arrested by the Metropolitan Police Department (MPD) on Nov. 26, 2018.

            In announcing the sentence, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys John Hill and Victim/Witness Advocate Elsa Maltese.

            Finally, she commended the work of Assistant U.S. Attorneys Kristina Wolf and Alyse Constantinide, who investigated and prosecuted the matter.

WASHINGTON – Andre Becton, 28, of Washington, D.C., has been found guilty of second-degree murder while armed and related firearms offenses stemming from a shooting that took place in Southeast Washington in September 2016, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            Becton was found guilty by a jury on April 4, 2019, following a trial in the Superior Court of the District of Columbia. The Honorable Juliet McKenna scheduled sentencing for July 19, 2019.

            According to the government’s evidence, on the night of Sept. 15, 2016, the victim, Darnell “Kirk” Peoples, Sr., agreed to help a woman buy drugs. They encountered a group of young men who were playing craps in the 600 block of Mellon Street SE, in front of a neighborhood market. Mr. Peoples made a remark that offended the group, leading to a confrontation with Becton. Mr. Peoples tried to quash the trouble, but Becton pulled out a gun and started counting down. Mr. Peoples unsuccessfully tried to get the gun. Becton shot him two times in front of numerous people and fled the scene.  Mr. Peoples, 35, stumbled across the street and collapsed, shot in the neck and the left hip.

            The Metropolitan Police Department arrived within minutes and Mr. Peoples managed to mumble before he died that he was shot by “Dre from Trenton Park.”  Becton was arrested on Oct. 21, 2016, and has been in custody ever since.

            In announcing the verdict, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the U.S. Marshals Service. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Daniel Lenerz; Criminal Investigator John Marsh; Paralegal Specialists Lornce Applewhite, Stephanie Siegerist, Meridith McGarrity, Alesha Matthews, and Richard Cheatham; Victim/Witness Security Specialist Lesley Slade; Victim/Witness Services Coordinators La June Thames and Tanya Via; Victim/Witness Advocate Marcia Rinker; Investigative Analyst Zachary McMenamin; Supervisory Litigation Technology Specialist Leif Hickling, and interns Jeremy Kelly and Madison Jansky.

            Finally, they commended the work of Assistant U.S. Attorneys Monica Trigoso and Lindsey Merikas, who investigated and prosecuted the case.

WASHINGTON – Kelby Gordon, 32, of Washington, D.C., was sentenced today to 10 years in prison for distributing narcotics in Washington, D.C.  – a  prison term that he must serve in addition to the 37-year prison term he recently was given in a murder case.  

            The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            Gordon was found guilty by a jury on Jan. 10, 2019 of unlawful distribution of fentanyl. The verdict followed a trial in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Trevor N. McFadden. The sentence is to run consecutively to the 37-year prison term that Gordon is serving for a murder in Southeast Washington. In sentencing Gordon, Judge McFadden highlighted the danger of fentanyl abuse to the community; a report by the District of Columbia Office of the Chief Medical Examiner cited fentanyl and its analogs as a key factor in a drastic increase in recent years of overdose deaths in the city.

            The narcotics charge arose from a long-term investigation initiated by the Washington D.C. FBI/MPD Safe Streets Task Force into the violence and associated narcotics trafficking in the area of Birney Place SE. Gordon and numerous other defendants were indicted in December 2017 for their roles in the operation. A total of 12 people faced charges in the investigation; 10 pled guilty and two, including Gordon, were found guilty of charges at trial.

            The investigation determined that from at least January 2016 through December 2017, the various defendants maintained a drug trafficking organization that supplied distribution amounts of crack cocaine, methamphetamine, and heroin to drug dealers in the District of Columbia, Maryland and Virginia. Much of the activity took place in the Birney Place area of Southeast Washington. In particular, the investigation showed that several of the defendants regularly sold crack cocaine and heroin in the 2600 block of Birney Place SE. 

            According to the government’s evidence, an undercover law enforcement officer met with Gordon during the investigation to purchase heroin. The evidence showed that the substance he actually sold the officer that day was a fentanyl analog.

            Gordon was sentenced on Dec. 14, 2018, to 37 years in prison for killing an innocent bystander and firing into an occupied bedroom during a broad-daylight shooting in Southeast Washington. According to the government’s evidence, on March 24, 2016, at approximately 11:15 a.m., the victim, Gabriel Turner, was walking in a cut-through behind the 2600 block of Birney Place SE, headed to a nearby bus stop. Mr. Turner, 46, who had intellectual disabilities and who was working at the FBI as a janitor, had just finished having breakfast with his mother – as he had every morning. Gordon, meanwhile, was in the area and, after seeing another man pull out a large amount of money, decided to rob that man near the mouth of the cut-through.

            However, as Gordon attempted to rob the man, the man began to pull out his own firearm. Gordon, in his own words, gave the man no chance, and pulled his gun out first. The two men began running down the cut-through behind Mr. Turner.

            Unbeknownst to Mr. Turner, Gordon planted his feet and began firing towards the man, who fled in the same direction that Mr. Turner was walking. The man who Gordon was targeting weaved around Mr. Turner and escaped, but a single bullet struck Mr. Turner in the upper back as he ducked. The bullet lodged itself in Mr. Turner’s sinus – killing him almost instantly. Two other bullets flew into an occupied apartment across the street, just missing the head of a second victim as he returned to bed. 

            In announcing today’s sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended those who investigated the case from the Safe Streets Task Force, including the FBI, MPD, and the U.S. Drug Enforcement Administration (DEA). They also acknowledged the work of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Kevin L. Rosenberg; Supervisory Paralegal Specialist Mary Downing; Paralegal Specialist Candace Battle, and Legal Assistant Peter Gaboton. They additionally expressed appreciation for the efforts of Assistant U.S. Attorneys Lindsey Merikas and Monica Trigoso, who investigated and prosecuted the murder case.

            Finally they expressed appreciation for the work of Assistant U.S. Attorney Nihar R. Mohanty, who investigated and prosecuted the narcotics case.

WASHINGTON – A 49-year-old man, formerly of Washington, D.C., has been found guilty of multiple charges for sexually abusing his niece when she was 11 and 12 years old, U.S. Attorney Jessie K. Liu announced today.

            The defendant, who is not identified here to protect the privacy of the victim, recently resided in Northwest Washington with his wife and children. He was found guilty by a jury on April 3, 2019, of four counts of second-degree child sexual abuse with aggravating circumstances, misdemeanor sexual abuse of a child with aggravating circumstances, and assault. The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Craig Iscoe ordered that he be held without bond until sentencing on May 31, 2019.

            According to the government’s evidence at trial, the victim lived in Florida with her mother during the year, but visited her father and his family in the District of Columbia every summer. When she visited the District of Columbia, she spent part of her time with the defendant and his family.

            In the summer of 2016, when the victim was 11 years old, the defendant began sexually abusing her during these visits. The nature of his abuse escalated over time. The defendant pressured the victim not to tell, and she was afraid to disclose the abuse for fear of not being believed and of causing stress within the family.

            Following the defendant’s final act of abuse in June 2017, the victim could not keep the abuse a secret anymore, and she disclosed the abuse to her aunt, the defendant’s wife. The victim later disclosed to her father, as well, and the abuse was then reported to the Metropolitan Police Department. The defendant was arrested in July 2017.

            In announcing the verdict, U.S. Attorney Liu praised the work of members of the Youth and Family Services Division of the Metropolitan Police Department. She also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Kenechukwu Okocha, who investigated and indicted the case; Appellate Division Deputy Chief John Mannarino; Victim/Witness Assistance Unit Chief Sarah McClellan; Paralegal Specialists Brenda C. Williams and D’Yvonne Key; Victim/Witness Advocate Lezlie Richardson; Victim/Witness Services Coordinator La June Thames; and Litigation Technology Specialist Jeanie Latimore-Brown.

            Finally, U.S. Attorney Liu commended the work of Assistant U.S. Attorney Jennifer B. Loeb, who prosecuted the case at trial.

WASHINGTON – A federal judge has ordered the forfeiture of $148,500 in blocked funds associated with a Taiwan-based company that allegedly laundered United States dollars in business dealings with North Korean and Syrian entities, announced U.S. Attorney Jessie K. Liu and Jeffrey S. Sallet, Special Agent-in-Charge of the FBI’s Chicago Division.

            The Honorable Richard J. Leon granted the government’s motion for summary judgment in a civil forfeiture case targeting funds held in the name of Trans Multi Mechanics Company Limited (Trans Multi). The complaint alleged that Trans Multi and its owner, Tsai Hsien-Tsai, also known as Alex Tsai, laundered United States dollars to further his exportation of goods for the benefit of North Korean and Syrian entities involved in the respective regimes’ weapons programs. The complaint sought to forfeit funds laundered by Tsai.

            “The Court found that these blocked funds were the product of Tsai’s attempts to sell tools to a Syrian company using U.S. Dollars and a series of front companies,” said U.S. Attorney Liu. “Sanctions laws are critical to our national security and foreign policy interests, and this case demonstrates that we will seek significant remedies against those companies that violate them.”

            "Attempts by individuals such as Tsai to circumvent economic sanctions through money laundering undermine foreign policy established to keep the United States and its citizens safe,” said Special Agent in Charge Sallet. “This judgment underscores the FBI’s commitment to national security and serves as a reminder that the FBI will work tirelessly to bring offenders to justice."

            The complaint was filed in June 2016, in the U.S. District Court for the District of Columbia. According to the complaint, Tsai frequently transacted with companies in North Korea and Syria which assisted with each regime’s respective weapons programs. On Jan. 16, 2009, the U.S. Department of Treasury Office of Foreign Asset Control (OFAC) designated Tsai, his wife, and two companies he controlled. The designation noted that Tsai used these companies to transact with North Korean proliferators of weapons of mass destruction.

            Between April and June of 2012, OFAC blocked $148,500 in the process of being transferred from a bank account in Hong Kong controlled by Tsai to a Taiwanese bank account in the name of his daughter as it traveled through the United States correspondent banking system. 

            Tsai was arrested in Estonia in May 2013 and subsequently extradited to the United States.  He pled guilty in October 2014, in the U.S. District Court for the Northern District of Illinois, to one count of conspiracy to defraud the United States. As part of his plea agreement, Tsai admitted that he had used Trans Multi, among other companies, to continue his exporting business notwithstanding the OFAC designation against him.  He also admitted that he exported machinery and tools relating to weapons of mass destruction, and that these goods were produced in the United States and purchased with U.S. Dollars. After serving a two-year prison sentence, Tsai was deported to Taiwan, where he remains today.

            In his ruling, which was issued on March 29, 2019, Judge Leon agreed that there was no genuine dispute of material fact with respect to the government’s complaint, and that the Court  could “easily conclude” that the funds involved in this suit stemmed from Tsai’s attempts to evade sanctions.  The United States is thus entitled to the funds.

            The FBI’s Chicago Division is investigating the case. Assistant U.S Attorneys Zia M. Faruqui, Arvind Lal, and Brian Hudak are prosecuting the case, with assistance from Legal Assistant Jessica McCormick and former Paralegal Specialist Toni Anne Donato, and special assistance from Joshua Stanton, who served as a consultant.

WASHINGTON – LaFonda Lewis, 57, a former supervisory contract oversight specialist with the U.S. Department of Housing and Urban Development (HUD), was sentenced today to a year and a day in prison for providing non-public information about pending HUD contracts to a business owner in exchange for money, tickets to sporting events, and other things of value.

            The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Reginald O. Sessoms, Special Agent in Charge, Special Investigations Division, HUD Office of Inspector General.

            Lewis, of Lusby, Md., pled guilty in January 2019, in the U.S. District Court for the District of Columbia., to violating the Procurement Integrity Act. She was sentenced by the Honorable Randolph D. Moss. As part of her plea agreement, she is required to pay a forfeiture money judgment of $23,055, representing the value of the gifts and benefits she received. Additionally, following her prison term, she will be placed on two years of supervised release.

            The charge involved Lewis’s dealings with Charles Thomas, the sole owner and president of a company in Maryland that provided technology services to agencies of the federal government and educational services to public school children in the Washington, D.C. area.

            According to a statement of offense signed as part of her plea, between 2012 and 2015, Lewis provided Thomas with non-public information about pending HUD contracts in exchange for Thomas providing her with money, tickets to sporting events, designer handbags, and other items. The information that Lewis provided had not been disclosed publicly and gave Thomas’s company an unfair advantage in competing for contracts.

            In a related prosecution, another former HUD employee, Kevin Jones, pled guilty on March 14, 2019, to a federal bribery charge stemming from a similar scheme in which he provided non-public information about pending HUD contracts to Thomas in exchange for tickets to sporting events, travel, and cash. Jones, 48, of Laurel, Md., was a former contract oversight specialist. He is to be sentenced on June 13, 2019. Jones has agreed to pay a forfeiture money judgment of $50,302, representing the value of the gifts that he received in the scheme.

            Thomas, 45, of Lusby, Md., pled guilty in May 2018 to one count of conspiracy to commit bribery and two counts of conspiracy to pay gratuities and violate the Procurement Integrity Act. He is awaiting sentencing. In his plea, Thomas admitted to paying bribes to the two HUD employees as well as to an employee of the District of Columbia Office of the State Superintendent of Education (OSSE) in return for payments on contracts involving that agency.

            The former District of Columbia employee, Shauntell Harley, 49, of Washington, D.C., was sentenced in July 2018 to 56 months in prison for accepting bribes in return for clearing the way for payments to be made to Thomas and another businessman.

            In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Special Agent in Charge Sessoms commended the work of those who investigated the case from the FBI’s Washington Field Office and HUD’s Office of the Inspector General.

            They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Joshua Fein and former Paralegal Specialist Kristy Penny. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Peter C. Lallas, who is investigating and prosecuting the matter.

WASHINGTON – Daniel Evans, 21, also known as Daniel Jervan Shaw, pled guilty today to a federal charge stemming from a pair of broad daylight robberies carried out within a period of minutes last year at local pharmacies.

            The plea was announced by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            Evans, of Washington, D.C., pled guilty in the U.S. District Court for the District of Columbia to a charge of conspiracy to interfere with commerce by robbery (Hobbs Act). The charge carries a statutory maximum of 20 years in prison and potential financial penalties. Under federal sentencing guidelines, he faces an estimated range of 63 to 78 months in prison. The plea agreement also calls for Evans to pay a $4,161 forfeiture money judgment. The Honorable Amy Berman Jackson scheduled sentencing for June 14, 2019.

            According to the government’s evidence, the first robbery took place at about 11:15 a.m. on March 18, 2018. That morning, three heavily-disguised assailants – wearing gloves and surgical-style masks – entered a CVS in the 9500 block of Georgia Avenue in Silver Spring, Md. The three went behind the pharmacy counter and demanded Percocet and Promethazine, ordering the pharmacist to open the safe. When the pharmacist did not comply, one of the assailants stunned him with a stun gun, causing him to lose consciousness. Unable to get into the safe, the three took some products from off the shelves and fled the scene.

            The second robbery occurred at about 12:30 p.m., on the same date. This time, four heavily-disguised assailants – wearing masks – entered the Rite Aid in the 5600 block of Georgia Avenue NW in the District of Columbia. One remained at the entrance and brandished a stun gun at customers. The others went behind the pharmacy counter and demanded Percocet, ordering the pharmacist to open the safe. The pharmacist complied and the intruders fled the scene, taking pharmaceutical products, including Oxycodone and Hydrocodone, with them.

            At about 1:35 p.m., a witness called 911 to report seeing an individual get out of a car and throw a bag over the side of the Pennsylvania Avenue Bridge and into the Anacostia River. MPD’s harbor unit found the bag as well as another bag inside it. The bags contained empty pharmaceutical pill bottles, discarded latex gloves and surgical-style masks. An employee from Rite Aid identified some of the bottles as having been stolen from the store that day.

            Based on descriptions provided of the car seen at the bridge, MPD officers subsequently identified Evans as the vehicle’s likely owner and executed a search warrant at his residence in Southeast Washington on March 20, 2018. A search of the defendant’s bedroom uncovered a backpack containing $4,161, a hollowed-out VCR containing 12 rounds of ammunition, and plastic bags containing more than 600 tablets of Oxycodone and Hydrocodone. Evans was arrested and has remained in custody ever since. In his guilty plea, Evans acknowledged that he was part of the group that conspired to commit the robberies. No one else has been arrested in the case, and the investigation is continuing.

            At the time of the robberies, Evans was on probation for conspiracy to rob a pharmacy in Maryland.

            In announcing the plea, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorney Ethan Carroll, Paralegal Specialist Catherine O’Neal, and Legal Assistant Peter Gaboton. Finally, they commended the efforts of Assistant U.S. Attorney C.B. Buente, who prosecuted the case.

WASHINGTON – Stephon Jeter, 29, of Washington, D.C., was sentenced today to a 63-month prison term on federal charges stemming from his role in a conspiracy to purchase firearms through a straw purchaser in the Atlanta, Ga. region and bring them to the District of Columbia for illegal resale.

            The announcement was made by U.S. Attorney Jessie K. Liu, Peter Newsham, Chief of the Metropolitan Police Department (MPD), and Ashan M. Benedict, Special Agent in Charge of the Washington Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

            Jeter pled guilty in January 2019, in the U.S. District Court for the District of Columbia, to one count of conspiring to illegally traffic in firearms and one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. The plea agreement, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 63 months in prison to be followed by three years of supervised release. The Honorable Randolph D. Moss accepted the plea and sentenced the defendant accordingly.

            The guilty plea followed an investigation by ATF, MPD, and the U.S. Attorney’s Office into a rash of firearm recoveries in the District of Columbia and surrounding areas in late 2016 and early 2017, all tied to a single straw purchaser in the Atlanta region. To date, approximately 25 firearms have been recovered in the District of Columbia or Maryland that, according to the government’s evidence, were purchased by this straw purchaser and illegally trafficked into the area by members of this conspiracy.

             According to a factual proffer, beginning in or around August 2016 and continuing through mid-January 2017, Jeter conspired with others to illegally deal in firearms, travel in interstate commerce to acquire firearms for resale, and make false statements on firearm purchase forms, among other offenses. Jeter and his cousin, Quran Jeter, illegally obtained firearms from an accomplice in Atlanta. In his guilty plea, Stephon Jeter admitted that he and his cousin brought between 25 and 99 firearms from Georgia to the District of Columbia for resale.

            In his plea, Jeter also admitted that he sold several firearms in the District of Columbia to people he knew, or had reasonable cause to believe, were prohibited from possessing guns because of their criminal records.

            Jeter was arrested on March 9, 2018, and has been in custody ever since. At the time of his arrest in this case, Jeter was barred from possessing a firearm due to a previous conviction in Prince George’s County, Md. for assault.

            Quran Jeter, 20, also of Washington, D.C., pled guilty on Oct. 30, 2018, to conspiring to illegally traffic in firearms. He is to be sentenced on June 12, 2019.

            This case is being investigated by ATF, MPD, and a former Criminal Investigator of the U.S. Attorney’s Office now with the U.S. Postal Inspector’s Service. It is being prosecuted by Assistant U.S. Attorneys Kevin L. Rosenberg and William Schurmann of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia, with assistance from Paralegal Specialists Jeannette Litz and Katie Cowley.

WASHINGTON – James Benjamin, 57, of Ellicott City, Maryland, pled guilty yesterday to a federal charge stemming from making a false statement to the FBI, and to a District of Columbia charge stemming from a scheme to defraud individuals that trusted the defendant to invest money on their behalf announced U.S. Attorney Jessie K. Liu and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office.

            Benjamin pled guilty before the Honorable Paul L. Friedman in the United States District Court for the District of Columbia to engaging in a scheme with intent to defraud, and to obtaining money by means of materially false and fraudulent pretenses, representations, and promises, and to unlawfully obtaining over $100,000 for his own personal enrichment. Benjamin also pled guilty to making a false statement to the FBI, after the FBI had seized approximately $450,000 that Benjamin had obtained from investors. In connection with the guilty plea, Benjamin admitted that he had falsely told the FBI that the $450,000 had been “held in trust” for the benefit of an investor, when in fact Benjamin kept the funds in his own bank account. Judge Friedman scheduled a sentencing hearing for September 24, 2019, at which Benjamin faces statutory maximum sentences of ten years and five years in prison, respectively. 

            In announcing the plea, U.S. Attorney Liu and Assistant Director in Charge McNamara commended the work of those who investigated the case from the FBI’s Washington Field Office. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office including Paralegal Specialists Jessica McCormick and Chela Okonji, and Assistant U.S. Attorneys Demian Ahn and Thomas Swanton, who prosecuted the case. 

WASHINGTON - Diana Lalchan, 33, of Washington, D.C., was convicted today of Voluntary Manslaughter while Armed and Possession of a Firearm During a Crime of Violence in the 2013 slaying of her husband, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Ronna L. Beck scheduled sentencing for June 14, 2019, and held Lalchan without bond pending the sentencing hearing.

            According to the government’s evidence, on March 28, 2013, at approximately 12:05 a.m., Lalchan called 911 and reported that she had just shot her husband inside their apartment in the 1200 block of Fourth Street SW. The Metropolitan Police Department (MPD) responded to the scene and found her inside the apartment, holding a cell phone. Police found her husband, Christopher Lalchan, 36, lying on the floor, unconscious and unresponsive. Mr. Lalchan was suffering from an apparent gunshot wound to the back of the head. The defendant was placed under arrest. A search of the residence revealed a semi-automatic handgun and three shell casings on the floor.

            Lalchan had been married to Mr. Lalchan since October of 2008. After the shooting, Lalchan told police that her husband had asked her to come home on the evening of March 27, 2013, so that the two could have a meeting regarding their marriage. After having dinner, Lalchan said that an argument ensued that escalated and de-escalated for several hours. Ultimately, according to the government’s evidence, she fired three shots at Mr. Lalchan. According to the forensic evidence, the first shot was fired into the kitchen. The second shot was fired next to Mr. Lalchan’s head. A third shot was fired into the back of his head. The defendant claimed to be a victim of domestic abuse and said that she acted in self-defense. 

            In announcing the verdict, U.S. Attorney Liu and Chief Newsham commended the work of the MPD detectives and officers who investigated the case. U.S. Attorney Liu also thanked Paralegal Specialists Stephanie Gilbert, Kelly Blakeney, Stephanie Siegerist, Alesha Matthews, Meredith McGarrity, and Sharon Newman; Criminal Investigators Nelson Rhone, John Marsh, Tommy Miller, Sharon Johnson, and Zachary McMenamin; U.S. Secret Service Special Agents Steven Baskerville and Ian McIntyre; Litigation Technology Specialists Leif Hickling, Kimberly Smith, William Henderson, Thomas (Ron) Royal, and Paul Howell; Victim/Witness Coordinators Katina Adams-Washington and LaJune Thames; Supply Supervisor Nathan Hawkins; student intern Phillip Green; Victim Advocate Marcia Rinker; and Assistant U.S. Attorney Cynthia Wright, who prosecuted the case.

WASHINGTON - Three men have been found guilty by a jury of federal narcotics charges following an investigation into a drug market that was operated out of the Next Level Cuts barbershop and surrounding property in Southeast Washington.

            The announcement was made by U.S. Attorney Jessie K. Liu, 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).

            Anthony Fields, 45, of Washington, D.C., Lonnell Tucker, 42, of Temple Hills, Md., and Abdul Samuels, 45, of Washington, D.C., were found guilty on March 21, 2019, following a trial in the U.S. District Court for the District of Columbia. All three were found guilty of one count of conspiracy to distribute phencyclidine (PCP), heroin, fentanyl, buprenorphine (suboxone), marijuana, and synthetic cannabinoids. Fields also was found guilty of six additional narcotics offenses and Samuels was found guilty of two additional narcotics offenses and a firearms charge. The Honorable Amit P. Mehta has not yet scheduled sentencing dates for the defendants.

            A fourth defendant was found not guilty by the jury. A fifth, Lacy Hamilton, 42, of Camp Springs, Md., pled guilty during the trial to conspiracy to distribute and possess with intent to distribute a detectable amount of heroin, marijuana, and synthetic cannabinoids. Judge Mehta scheduled his sentencing for May 16, 2019.

            As established at trial, in June 2017, ATF began investigating the trafficking of narcotics from the Next Level Cuts barbershop and adjoining property above. Through surveillance, controlled purchases from inside and outside the barbershop, residential search warrants, cellphone searches, arrests, jailhouse calls, pleas, and cooperating witnesses, law enforcement was able to establish a coordinated drug trafficking operation that was centered at the barbershop and extended into Maryland. The investigation established that drug traffickers would use the barbershop and adjoining property as a stash location.

            The investigation led to a series of arrests beginning in February 2018 as well as the recovery of three firearms from the barbershop and one firearm in a residence. Law enforcement seized more than $7,000 in cash, and without packaging, more than 300 grams of PCP, more than 150 grams of heroin, more than 100 grams of fentanyl, boxes of suboxone strips, and more than 100 grams of a cutting agents. Samuels was convicted of narcotics and firearms charges relating to a search of his residence in Southeast Washington on May 10, 2018, in which ATF recovered a firearm, ammunition, extensive drug paraphernalia, and packaged crack cocaine.

            During the trial, in addition to ATF and MPD agents and officers, current and former law enforcement officers from Prince George’s County, Md., and the Metropolitan Washington Airports Authority testified relating to separate arrests of Fields and Samuels in 2017 and 2018, respectively, in which law enforcement recovered various forms of drug paraphernalia, packaged narcotics, and U.S. currency.

            Two other defendants – Darryl Smith, 41, of Washington, D.C., and James Venable, 47, of Fort Washington, Md., earlier pled guilty to federal charges.  Another defendant remains at large as a fugitive.  Smith managed the barber shop. Smith was sentenced to 80 months in prison relating to his possession of narcotics in the barbershop on Feb. 1, 2018 and for his possession of packaged fentanyl and a loaded firearm following an arrest by MPD in December 2017 outside of the barbershop. Venable was sentenced to a 37-month prison term following his possession of narcotics and a firearm in both Washington, D.C. during a December 2017 arrest by MPD and in his residence in Maryland on February 1, 2018. Venable also acknowledged selling narcotics to an ATF confidential informant in July 2017.

            In announcing the verdicts, U.S. Attorney Liu, Special Agent in Charge Benedict, and Chief Newsham commended the work of those involved in the case. They also acknowledged the efforts of those who handled the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Christopher Macchiaroli and Gregory Rosen of the Violent Crime and Narcotics Trafficking Section, and Paralegal Specialist Candace Battle.

WASHINGTON – Yossi Avitan, a resident and citizen of Israel, has been sentenced to a five-month term of imprisonment for taking part in an international conspiracy to operate an unlicensed money transmitting business. 

            The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Sally Luttrell, Acting Assistant Inspector General for Investigations of the U.S. Department of Treasury.

            Avitan, 33, pled guilty in November 2018 in the U.S. District Court for the District of Columbia to a charge of conspiracy to operate an unlicensed money transmitting business.  He was sentenced on March 19, 2019 by the Honorable Colleen Kollar-Kotelly.  In addition to the period of incarceration, Avitan was ordered to pay a fine of $4,000, and a forfeiture money judgment in the amount of $9,178.    

            An unlicensed money transmitting business, broadly defined, is a business involved in the transfer of money or funds affecting interstate or foreign commerce in any manner, which is either operated without an appropriate money transmitting license from the District of Columbia or without complying with federal money transmitting business registration requirements.  Avitan was one of seven co-defendants charged in relation to the conspiracy.  Four of the co-defendants were arrested as part of a large international takedown in which 19 individuals, who were indicted in four separate cases involving allegations of fraud and money laundering activities, were arrested world-wide in early March 2017. 

            Four of Avitan’s co-defendants -- Itzhak Salama, Golan Chkechkov, Moshe Amir, and Haviv Arazi -- have pled guilty to charges relating to the illegal money transmitting business and are awaiting sentencing.  One co-defendant, Michael Admon, was sentenced on Feb. 19, 2019, for a charge of conspiracy to operate an unlicensed money transmitting business to a two-year term of probation, which included Admon’s residence in a reentry center for a term of 30 days and location monitoring for a period of five months.  The remaining co-defendant, Ori Saadon, was extradited from Israel on or about February 7, 2019, after an earlier request was made by the United States for Saadon’s temporary surrender to the United States in order for Saadon to face the conspiracy charge in this matter.  Saadon’s case is pending before the Court.    

            According to the statement of offense proffered during the plea hearing, Avitan was part of an illegal international money transmitting network, commonly referred to as a “hawala network,” which clandestinely moved money for other individuals in interstate and foreign commerce without registering with the U.S. Department of the Treasury or obtaining licensure with the various States, including the District of Columbia.  Avitan did not obtain licensure or register himself or any business as a licensed money transmitter pursuant to the laws of the District of Columbia and federal law.  The FBI conducted undercover operations in which Avitan was responsible for coordinating the transfer of more than $95,000, but less than $150,000 of funds, in three separate transactions through a hawala network.  Avitan’s role in the hawala network was to arrange for the receipt and/or delivery of money on behalf of other individuals and Avitan received a fee for conducting the monetary transactions.    

            In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Acting Assistant Inspector General Luttrell commended the work of those who investigated the case from the FBI’s Washington Field Office and the U.S. Department of the Treasury, Office of Inspector General. They also expressed appreciation for the assistance provided by the Department of Justice’s Office of International Affairs.  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 Brittany Phillips, Elizabeth Swienc, and C. Rosalind Pressley, Supervisory Paralegal Specialist Tasha Harris, and Litigation Technology Specialist Jeanie Latimore-Brown.

            Finally, they commended the work of Assistant U.S. Attorneys Diane Lucas, Michael J. Marando and David Kent, of the Fraud and Public Corruption Section, of the U.S. Attorney’s Office for the District of Columbia, who prosecuted the case.  Assistance in the investigation and prosecution was also provided by former Assistant U.S. Attorneys Michael Atkinson and David Last. 

WASHINGTON - A Florida man pled guilty today to one count of wire fraud in connection with his scheme to steal monthly pension payments from victims enrolled in pension plans managed by the Pension Benefit Guaranty Corporation (PBGC). 

            Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia and Inspector General Robert A. Westbrooks of the PBGC made the announcement.

            According to court documents, Kessey Reggie Durand, 27, of Miami, Florida, used personally identifiable information (PII) he obtained while working as a contractor at the PBGC’s Miami Field Office to create or take over online MyPBA accounts of pension plan participants.  After commandeering those accounts, Durand changed the associated electronic direct deposit information in order to funnel victims’ monthly pension payments into accounts Durand controlled.  In other cases, Durand tried to change participants’ electronic direct deposit information through social engineering, using stolen PII to call into the PBGC call center to trick operators into believing he was the participant requesting the change.  

            “Over a five-month span, Durand stole the confidential information of elderly retirees and then used it to commandeer their retirement accounts for his own benefit,” said Assistant Attorney General Benczkowski, “The Department of Justice and our law enforcement partners are committed to rooting out fraud by those who have been entrusted with access to sensitive financial and personal information, especially when that fraud harms vulnerable senior citizens.”

           "Kessey Reggie Durand took advantage of his position as a PBGC contractor to use the personal information of retired workers and to steal their monthly pension payments,” said U.S. Attorney Liu.  “Our office will aggressively prosecute those who seek to deprive retirees of what may be their only form of income.”

            “PBGC’s retirees rightfully expect that their pension accounts are secure and their personal information is safeguarded—especially from insider threats,” said Inspector General Westbrooks.  “We will continue to make data protection a top priority and greatly appreciate the support of the Justice Department in helping to ensure the integrity of PBGC’s MyPBA online system.”

            According to court documents, Durand’s scheme spanned approximately five months and targeted over $100,000 in monthly pension payments.  Sentencing is set for June 28, 2019, before Chief Judge Beryl A. Howell of the U.S. District Court for the District of Columbia.

            The case was investigated by the PBGC Office of Inspector General, with assistance from the U.S. Attorney’s Office for the Southern District of Florida and the Miami Gardens Police Department.  The case is being prosecuted by Special Assistant U.S. Attorney Joss Nichols, on detail from the Criminal Division’s Computer Crime and Intellectual Property Section.

            WASHINGTON –Babajide Pittman, 33, of Washington, D.C., was sentenced today to a 40 ½-year prison term on first-degree murder while armed and other charges for a mid-day shooting in Southeast Washington on Thanksgiving weekend of 2016, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            Pittman was found guilty by a jury in October 2018 of murder, assault with intent to kill while armed, and related firearms offenses. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Danya A. Dayson.

            According to the government’s evidence, on Nov. 27, 2016, at approximately 1 p.m., Pittman was standing on the corner of 7th and L Streets SE, outside the U.S. Marine Corps Barracks Annex.  The homicide victim, Anthony Young, Jr., was the passenger in a car being driven by his girlfriend. They were headed to a friend’s house nearby.  Pittman and Mr. Young knew each other, and had been in a prior argument.  Mr. Young got out of the car and argued on the sidewalk with Pittman for about two minutes.

            When Mr. Young opened the passenger door of the car to leave, Pittman ran up behind him and fired 12 shots into the car.  Mr. Young was struck eight times, in the back, arm, and legs, and his girlfriend was struck once in the leg. 

            Mr. Young, 27, died within minutes of being shot.  His girlfriend was transported to Howard University Hospital, where she was treated for the gunshot wound.  She sustained permanent nerve damage in her foot. 

            Pittman fled the area on foot.  He was arrested early the following morning, and has been held in custody since. 

            Personnel from the U.S. Marine Corps assisted the victims and the responding police officers from the Metropolitan Police Department and U.S. Capitol Police.

            A homeowner who lived down the street from the shooting had a Nest surveillance system, with audio and high-definition video, that captured the shooting.  This video was instrumental in investigating and prosecuting the case. This prosecution reflects the value of the District of Columbia’s Private Security Camera Incentive Program, which encourages residents to install security cameras to assist law enforcement. 

            In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the U.S. Capitol Police, the Metro Transit Police Department, the U.S. Marshals Service, the Capital Area Regional Fugitive Task Force, and the District of Columbia Department of Forensic Sciences. They acknowledged the efforts of those who worked on the case form the U.S. Attorney’s Office, including Assistant U.S. Attorney John Mannarino, Paralegal Specialist Sharon Newman, Lead Paralegal Specialist Meridith McGarrity, Victim/Witness Advocate Diana Lim, Supervisory Victim/Witness Advocate Jennifer Clark, Litigation Technology Specialist Leif Hickling, Victim/Witness Services Coordinator Katina Adams-Washington, and intern Cara Clark. 

            Finally, they commended the work of Assistant U.S. Attorneys Jeffrey Nestler and Seth Gilmore, who investigated and prosecuted the case.

WASHINGTON – D’Angelo Davis, 38, of Washington, D.C., was sentenced today to 19 years in prison for killing a man during a robbery last summer in an alley in Southeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            Davis pled guilty in January 2019, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 19 years. The Honorable Danya A. Dayson accepted the plea and sentenced Davis accordingly. Following his prison term, Davis will be placed on five years of supervised release.

            According to the government’s evidence, on July 21, 2018, at approximately 4:45 a.m., Davis encountered the victim, Michael Miller, in the 1600 block of Minnesota Avenue SE. The two men did not know each other. Mr. Miller, 37, who was driving a gray Lexus sedan, initiated a friendly conversation with Davis, who was on foot. The men agreed to meet nearby and continue the conversation. However, by that point, Davis had already determined that he wanted to steal Mr. Miller’s car. After Mr. Miller parked his car, the two men met in a nearby rear alley.

            In the alley, Davis took out a .380 semi-automatic pistol, pointed it at Mr. Miller, and demanded the car keys. Mr. Miller grabbed for the pistol and a struggle ensued. During the struggle, the gun went off and the bullet his Mr. Miller in the neck, killing him. After the shooting, Davis went into Mr. Miller’s pockets and removed cash and the car keys. He then stole the vehicle and left the scene. Officers discovered Mr. Miller’s body at about 9:15 a.m.

            The Lexus was recovered on July 30, 2018. As a result of the search, Davis’s fingerprints were found in the vehicle. On Nov. 15, 2018, Davis was arrested in an unrelated matter, but he agreed to speak with MPD detectives about the murder. After providing several false statements, he confessed to the slaying. He has been in custody ever since.

            At the time of the murder, Davis was on probation for a 2016 drug offense. His probation has been revoked in that case.

            In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences. They acknowledged the efforts of those who assisted with the case at the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Siegerist, Victim/Witness Advocate Jennifer Clark, former Victim/Witness Advocate Diana Lim, and Assistant U.S. Attorney Nebiyu Feleke. Finally, they commended the work of Assistant U.S. Attorney Christopher Bruckmann, who investigated and prosecuted the case.

WASHINGTON – Kimberly N. Thompson, 61, of Woodbridge, Va., has been found guilty by a jury of first-degree murder and related firearms charges for killing a man in broad daylight in December 2015 in Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            The verdict, returned late March 21, 2019, followed a trial in the Superior Court of the District of Columbia. The Honorable Milton C. Lee scheduled sentencing for June 7, 2019. Thompson faces a mandatory minimum prison sentence of 30 years.

            According to the government’s evidence, on Dec. 10, 2015, at about 1:30 p.m., Thompson drove his Mercedes to the 1900 block of Bennett Place NE and confronted the victim, Charles Anthony Mayo, who was sitting outside. Within seconds, Thompson fired his gun at Mr. Mayo eight times, hitting him with three bullets. Mr. Mayo managed to get away and into a nearby alley.

            Shortly after the shooting, the Metropolitan Police Department arrived at the scene. They found Mr. Mayo and asked him if he knew who his attacker was.  He nodded yes.  When asked who it was, he responded with only, “I can’t breathe.”  Mr. Mayo, 53, slipped out of consciousness and was never able to identify his murderer.  He died a week later in the hospital.

            Two days after the murder, Thompson was stopped by police in his Mercedes and the car was seized.  A subsequent search of the car revealed a handgun secreted deep inside the trunk that was later determined to be the handgun that fired two cartridge casings that were recovered at the crime scene. Thompson was arrested in January 2016 and has been in custody ever since.

            In announcing the verdict, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the District of Columbia Department of Forensic Sciences and the FBI’s Cellular Analysis Survey Team (CAST).

            They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Silvia Gonzalez Roman, Ahmed Baset, Monica Trigoso, Chrisellen Kolb and John Mannarino; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Stephen R. Prest, Special Counsel for Discovery Policy and Litigation;  Supervisory Paralegal Specialist Sharon Newman; Lead Paralegal Specialist Meridith McGarrity; Paralegal Specialists Tameka Garcia and Alesha Matthews; former Paralegal Specialist Sandra Lane; Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Victim/Witness Advocate Marcia Rinker; Victim/Witness Security Specialist Lesley Slade; Supervisory Witness Security Specialist M. LaVerne Perry; Supervisory Litigation Technology Specialist Leif Hickling, and Investigative Analyst Zachary McMenamin.

            Finally, they commended the work of Assistant U.S. Attorneys Christine Macey and Christian Natiello, who investigated and prosecuted the case.

            WASHINGTON –An Australian man was sentenced today to 24 months in prison on four counts of violations of the International Emergency Economic Powers Act, which criminalizes knowing transactions with Iranian entities without a license from the U.S. Department of Treasury.

            David Russell Levick, 57, of Cherrybrook NSW, Australia, pled guilty to the charges on Feb. 1, 2019, in the U.S. District Court for the District of Columbia.  He was sentenced by the Honorable James E. Boasberg.  In addition to the prison term, Levick must pay a forfeiture amount of $199,227, which represents the total value of the goods involved in the illegal transactions. Following completion of his prison term, Levick will be subject to deportation proceedings.

            The announcement was made by Assistant Attorney General for National Security John C. Demers; U.S. Attorney Jessie K. Liu for the District of Columbia; William Higgins, Acting Special Agent in Charge of the Commerce Department’s Office of Export Enforcement Boston Field Office; Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office; Peter C. Fitzhugh, Special Agent In Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Boston, and Leigh-Alistair Barzey, Special Agent in Charge of the Defense Criminal Investigative Service (DCIS), Northeast Field Office.

            According to the plea documents, Levick was the general manager of ICM Components, Inc., located in Thornleigh Australia. He solicited purchase orders and business for the goods from a representative of a trading company in Iran.  This person in Iran, referenced in court documents as “Iranian A,” also operated and controlled companies in Malaysia that acted as intermediaries for the Iranian trading company.

            Levick then placed orders with U.S. companies on behalf of “Iranian A” for the goods, which were aircraft parts and other items that “Iranian A” could not have directly purchased from the United States without the permission of the U.S. government.

            The defendant admitted to procuring or attempting to procure the following items for transshipment to Iran, each of which required a license from the Treasury Department prior to any export to Iran:

            -Precision Pressure Transducers.  These are sensor devices that have a wide variety of applications in the avionics industry, among others, and can be used for altitude measurements, laboratory testing, measuring instrumentations and recording barometric pressure.

            -Emergency Floatation System Kits.  These kits contained a landing gear, float bags, composite cylinder and a complete electrical installation kit.  Such float kits were designed for use on Bell 206 helicopters to assist the helicopter when landing in either water or soft desert terrain. 

            -Shock Mounted Light Assemblies.  These items are packages of lights and mounting equipment designed for high vibration use and which can be used on helicopters and other fixed wing aircraft. 
 
            When necessary, Levick used a broker in Tarpon Springs, Florida, through whom orders could be placed for the parts to further conceal the fact that the parts were intended for transshipment to “Iranian A” in Iran. Levick intentionally concealed the ultimate end-use and end-users of the parts from manufacturers, distributors, shippers, and freight forwarders located in the United States and elsewhere. In addition, Levick and others structured their payments between each other for the parts to avoid trade restrictions imposed on Iranian financial institutions by other countries. Levick and ICM wired money to companies located in the United States as payment for the parts.

            The activities took place in 2007 and 2008. Levick was indicted in February 2012.  At the request of the United States, Australia arrested him for the purposes of extradition, and Australia extradited him to the United States in December 2018. He has remained in custody here.

            The investigation was conducted by agents from the FBI’s Washington Field Office, the Department of Commerce’s Bureau of Industry Security, and the Boston Office of the Immigration and Customs Enforcement. Assistance was provided by the Defense Criminal Investigative Service and the Justice Department’s Office of International Affairs. The case was prosecuted by Assistant U.S. Attorneys Thomas A. Gillice and Brenda Johnson, and investigated by Assistant U.S. Attorneys Denise Cheung and John Borchert, all of the U.S. Attorney’s Office for the District of Columbia, as well as former Assistant U.S. Attorney Ann Petalas of the U.S. Attorney’s Office for the District of Columbia and Trial Attorney Will Mackie of the National Security Division’s Counterintelligence and Export Control Section.

WASHINGTON – El Hadji Toure, 30, formerly of Laurel, Md., was found guilty today of murder and other charges stemming from the March 2017 slaying of artist Corrina Mehiel, whose body was found in a rowhouse in Northeast Washington, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            Toure was found guilty by a jury of a total of 13 charges, including first-degree murder while armed (premeditated and felony), with aggravating circumstances; first-degree sexual abuse while armed, also with aggravating circumstances; kidnapping while armed; first-degree burglary while armed; robbery while armed; first-degree theft; unauthorized use of a vehicle; credit card fraud, and first-degree identity theft.  The verdict followed a trial in the Superior Court of the District of Columbia He faces a maximum sentence of life in prison with no possibility of release. The Honorable Juliet McKenna scheduled sentencing for June 7, 2019.

            According to the government’s evidence, on March 21, 2017, at approximately 4:34 p.m., officers with the Metropolitan Police Department (MPD) found Ms. Mehiel’s body in a rowhouse in the 600 block of 14th Street NE. Ms. Mehiel’s body, which had been bound, showed multiple stab wounds to her neck and side. Ms. Mehiel, 34, of Burnsville, N.C., had been staying in the sublet basement apartment while in Washington for a couple of weeks while working on an art show at the Corcoran Gallery at George Washington University.

            On the morning of Monday, March 20, 2017, Ms. Mehiel was packing up her few belongings from the apartment. Toure broke into the residence, kidnapping and sexually assaulting her, stabbing her, and stealing her belongings, including her car and her debit card.  Toure later used her debit card to withdraw cash at several ATMs in nearby Maryland and Virginia from March 20 through March 24, 2017. 

            On the afternoon of March 21, 2017, when no one had heard from Ms. Mehiel, her co-workers entered her apartment and found her body, face down in her bedroom.

            The defendant, who was a stranger to Ms. Mehiel, was arrested on March 27, 2017, in Northeast Washington, and has been in custody ever since.

           The government’s evidence in the case included surveillance video showing Toure using Ms. Mehiel’s debit card at ATMs; he is also visible on surveillance video on Ms. Mehiel’s block shortly before the attack. Additionally, DNA evidence linked him to the crime.

           In announcing the verdict, U.S. Attorney Liu and Chief Newsham commended the work of those investigating the case from the Metropolitan Police Department (MPD). They also expressed appreciation for the assistance provided by the Metro Transit Police Department, the District of Columbia Department of Forensic Sciences, and Signature Science LLC. They acknowledged the efforts of those worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Elizabeth Trosman, Chief of the Appellate Division; Chrisellen Kolb, Deputy Chief of the Appellate Division; Stephen R. Prest, Special Counsel for Discovery Policy and Litigation; Assistant U.S. Attorneys Julianne Johnston, Silvia Gonzalez Roman, and Lauren Bates; Victim/Witness Advocate Jennifer Clark; Victim/Witness Services Coordinator LaJune Thames; Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Supervisory Paralegal Specialists Sharon Newman; Paralegal Specialists Tijuana McPhail and Richard Cheatham; Senior Paralegal Specialist Kathryn Hoey; Litigation Technology Specialist Leif Hickling; Investigative Analyst Zachary McMenamin; Criminal Investigator John Marsh, and Forensic Operation/Program Specialist Elizabeth Marrero.

            Finally, they commended the work of Assistant U.S. Attorneys Jeffrey Nestler and Jessi Brooks, who investigated and prosecuted the case.

WASHINGTON – Deangelo Jenkins, 33, of Washington, D.C., was sentenced today to 47 months in prison on firearms and narcotics offenses stemming from an investigation in which law enforcement recovered two loaded handguns and cocaine base, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            Jenkins pled guilty on Dec. 4, 2018, in the U.S. District Court for the District of Columbia, to two counts of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year and one count of possession of cocaine basis. He was sentenced by the Honorable Timothy J. Kelly. Following his prison term, he will be placed on three years of supervised release.

            According to the government's evidence, on Oct. 24, 2017, MPD officers observed Jenkins driving a white Infiniti that had been identified in connection with a homicide investigation. Officers made contact with Jenkins and advised him that the vehicle was being seized in reference to the pending homicide investigation. Jenkins was then asked to exit the vehicle. Jenkins, who was talking on a cellular phone at the time, did not comply. He acted nervous and failed to exit the vehicle despite being ordered to do so by officers on several occasions. An officer then reached through the driver’s side window and attempted to unlock the driver’s side door, but Jenkins re-locked the door before the officer could open it. This happened a number of times before officers could successfully get Jenkins out of the vehicle. Once he was out of the vehicle, MPD officers were able to impound it for investigative purposes.

            Jenkins was not arrested at that time. The following day on Oct. 25, 2017, pursuant to a search warrant, MPD officers searched the vehicle. During the search, officers recovered a .45-caliber handgun from the center console of the vehicle. The firearm had one round of ammunition in the chamber and 10 rounds in the magazine.

            Following the discovery of the gun and ammunition, an arrest warrant was issued. On Nov. 9, 2017, members of the U.S. Marshals Service observed Jenkins entering an apartment building in the 2900 block of 14th Street NW. Jenkins was arrested inside an apartment. During a search of Jenkins, officers recovered a .357-caliber revolver from his waistband area. The firearm was loaded with six rounds of ammunition in the chamber.

            Jenkins was arrested and transported to a hospital after complaints of feeling ill. While at the hospital, an additional search of the defendant was conducted, and officers found a large white rock-like substance located in the right front change pocket of the defendant’s pants. The white substance was tested and determined to be cocaine base.

            At the time of his arrest in this case, Jenkins was barred from possessing a firearm due to previous convictions in the District of Columbia and Prince George’s County, Md. for armed robbery, firearms and other offenses.

            In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They expressed appreciation for the assistance provided by the U.S. Marshals Service. They also commended the efforts of those who worked in the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialist Teesha Tobias and former Paralegal Specialist Jeannette Litz.

            Finally, they expressed appreciation for the work of Assistant U.S. Attorney Emory V. Cole, who prosecuted the case.

WASHINGTON – Danzell Johnson, 21, of Washington, D.C., was sentenced today to 16 years in prison for a pair of armed robberies he committed last summer in Southeast Washington, including one that resulted in a carjacking, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            A co-defendant, Kyree Black, 21, of Washington, D.C., was sentenced on March 1, 2019, to a 15-year prison term.

            Johnson and Black pled guilty in January 2019 to charges of carjacking, armed robbery, and unlawful possession of a firearm. The pleas, which were subject to the Court’s approval, called for Johnson to be sentenced to 15 to 18 years in prison and Black to be sentenced to 13 to 20 years. The Honorable Robert A. Salerno accepted the pleas and sentenced the defendants accordingly. Following their prison terms, Johnson and Black will be placed on five years of supervised release.

            According to plea documents, the first crime took place at approximately 11 p.m. on July 27th, 2018. Johnson and Black accosted the victim in the 3300 block of 10th Place SE. Johnson pointed a handgun at the man and demanded his car keys. The victim turned over the keys to his 2015 BMW. Black, who was armed with a knife, demanded the rest of the man’s possessions. The man threw his driver’s license, bank card, iPhone and charging cable at Black. He then fled to safety and contacted police. Prince George’s County, Md. Police observed the stolen car in District Heights, Md., and attempted to stop it. The driver fled and crashed. The two ran away.

            The second crime occurred at approximately 12:15 a.m. on Aug. 1, 2018. This time, Johnson and Black approached a man who was walking in the area of the 700 block of 8th Street SE. Johnson pointed a gun at the victim and ordered him onto the ground. Black then removed the victim’s wallet and took about $80 in cash. Johnson took the victim’s iPhone.

            Johnson was arrested on Aug. 9, 2018. In a search of Johnson, police recovered a loaded revolver as well as the iPhone taken in the Aug. 1 robbery. Black was arrested on Aug. 13. In a search of Black, police found a Metro card registered to the victim of the first robbery.

            In announcing the sentences, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Brittany Keil, who investigated and prosecuted the matter.

WASHINGTON – Orlando Bell, 37, of Washington, D.C., was sentenced today to 130 months in prison for his role in a drug trafficking organization that distributed large amounts of heroin, methamphetamine, and cocaine in the Washington, D.C. metropolitan area. 

            The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            Bell was found guilty by a jury on Oct. 31, 2018, following a trial in the U.S. District Court for the District of Columbia, of one count of possession with intent to distribute cocaine base and one count of using, possessing, and carrying a firearm during a drug trafficking offense.  He was sentenced by the Honorable Trevor N. McFadden. Following his prison term, Bell will be subject to deportation proceedings to Jamaica.

            The charges arose from a long-term investigation into people suspected of acting as wholesale distributors of heroin and cocaine in the Washington, D.C., metropolitan area. Bell and numerous other defendants were indicted in December 2017 for their roles in the operation. A total of 12 people faced charges in the investigation; 10 pled guilty and two, including Bell, were found guilty of charges at trial.

            The investigation determined that from at least January 2016 through December 2017, the various defendants maintained a drug trafficking organization that supplied distribution amounts of crack cocaine, methamphetamine, and heroin to drug dealers in the District of Columbia, Maryland and Virginia. Much of the activity took place in the Birney Place area of Southeast Washington. In particular, the investigation showed that several of the defendants regularly sold crack cocaine and heroin in the 2600 block of Birney Place SE. 

            According to the government’s evidence, Bell obtained crack cocaine from suppliers and redistributed it. On March 8, 2017, law enforcement conducted a traffic stop of Bell and recovered approximately seven grams of crack cocaine and a small-caliber pistol.

            The prosecution grew out of the efforts of the FBI/MPD Safe Streets Task Force, a multi-agency team that conducts comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The prosecution was sponsored and supported by the federal Organized Crime Drug Enforcement Task Force (OCDETF).

            In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Chief Newsham commended the work of those who investigated the case from the Safe Streets Task Force, including the FBI, MPD, U.S. Park Police, Prince George's County, Md. Police, Prince William County, Va., Police, and the U.S. Bureau of Alcohol, Tobacco, and Firearms (ATF). They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Supervisory Paralegal Specialist Mary Downing, Paralegal Specialist Candace Battle, and Legal Assistants Latoya Wade, Aiesha Bynum, and Peter Gaboton. Finally they expressed appreciation for the work of Assistant U.S. Attorneys Nihar R. Mohanty and Kevin L. Rosenberg, who investigated and prosecuted the case.

WASHINGTON – Kevin Jones, 48, a former contract oversight specialist with the U.S. Department of Housing and Urban Development (HUD), pled guilty today to a federal bribery charge stemming from a scheme in which he provided non-public information about pending HUD contracts to a business owner in exchange for tickets to sporting events, travel, and cash.

            The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Reginald O. Sessoms, Special Agent in Charge, Special Investigations Division, HUD Office of Inspector General.

            Jones, of Laurel, Md., pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 15 years in prison and potential financial penalties. Under federal sentencing guidelines, Jones faces a likely range of 30 to 37 months in prison and a fine of up to $100,000. He also has agreed to pay a forfeiture money judgment of $50,302, representing the value of the gifts that he received in the scheme.

            The Honorable Randolph D. Moss scheduled sentencing for June 13, 2019.

            According to a statement of offense signed as part of the plea, Jones began work at HUD in 1999. His responsibilities included serving as the technical point of contact for certain contracts and reviewing contractor performance. By virtue of his position, he had access to bid, proposal, and source selection information about a number of HUD contracts.

            The bribery charge involves Jones’s dealings with Charles Thomas, the sole owner and president of a company in Maryland that provided technology services to agencies of the federal government and educational services to public school children in the Washington, D.C. area.

            Between at least 2010 and 2018, according to the statement of offense, Thomas provided Jones with tickets to sporting events, travel, and cash in exchange for Jones providing Thomas and his company with non-public information about pending HUD contracts. In particular, the information and recommendations that Jones provided gave Thomas an unfair competitive advantage in obtaining two contracts a valued at more than $4.5 million. Jones himself approved invoices totaling nearly $3.8 million for work done under one of the two contracts.

            According to the statement of offense, from 2010 through 2017, Thomas and his company provided Jones with a variety of gifts and benefits, including more than $17,000 worth of tickets to Washington Redskins games and three Super Bowls; $1,700 in Washington Wizards tickets, more than $3,200 in hotel accommodations; more than $3,600 in travel expenses, more than $13,000 in cash and checks, meals, a camera, and a pair of basketball shoes.

            In a related prosecution, another former HUD employee, LaFonda Lewis, pled guilty in January 2019 to providing non-public information to Thomas in exchange for money, tickets to sporting events, and other things of value. As part of her plea, she has agreed to pay a forfeiture money judgment of $23,055, representing the illegal proceeds. Lewis was a former supervisory contract oversight specialist. Lewis, 57, of Lusby, Md., is to be sentenced on March 28, 2019.

            Thomas, 45, of Lusby, Md., pled guilty in May 2018 to one count of conspiracy to commit bribery and two counts of conspiracy to pay gratuities and violate the Procurement Integrity Act. Thomas is awaiting sentencing. In his guilty plea, Thomas admitted to paying bribes to the two HUD employees as well as to an employee of the District of Columbia Office of the State Superintendent of Education (OSSE) in return for payments on contracts involving that agency.

            The former District of Columbia employee, Shauntell Harley, 49, of Washington, D.C., was sentenced in July 2018 to 56 months in prison for accepting bribes in return for clearing the way for payments to be made to Thomas and another businessman.

            In announcing the sentence, U.S. Attorney Liu, Assistant Director in Charge McNamara, and Special Agent in Charge Sessoms commended the work of those who investigated the case from the FBI’s Washington Field Office, HUD’s Office of the Inspector General, and the Office of the Inspector General for the District of Columbia.

            They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Joshua Fein and former Paralegal Specialist Kristy Penny. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Peter C. Lallas, who is investigating and prosecuting the matter.

WASHINGTON – A former employee of the District of Columbia Department of Human Services (DHS) pled guilty today to a scheme in which he defrauded the agency of more than $1.4 million by steering inflated food stamp and temporary assistance benefits to people who were not entitled to receive them. In return, he received cash kickbacks and sexual favors

            The announcement was made by U.S. Attorney Jessie K. Liu, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, District of Columbia Inspector General Daniel W. Lucas, and Special Agent in Charge Maureen R. Dixon of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), for the region that includes Washington, D.C.

            The former employee, Demetrius McMillan, 48, of Washington, D.C., pled guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum of 15 years in prison and potential financial penalties. Under federal sentencing guidelines, McMillan faces a likely range of 108 to 135 months in prison and a fine of up to $300,000. He also has agreed to pay $1,456,985 in restitution, forfeit $74,811 in cash seized in a search of his residence, and pay an additional forfeiture money judgment.

            The Honorable Senior Judge Paul L. Friedman scheduled sentencing for June 19, 2019.

            McMillan’s scheme targeted and defrauded the Supplemental Nutrition Assistance Program (SNAP), formerly known as the food stamps program, and Temporary Assistance for Needy Families (TANF), which consists of cash benefits. Benefits in both programs were provided to clients via electronic benefit cards.

            According to plea documents, McMillan was a social service representative at a DHS service center in Southeast Washington. Social service representatives reviewed and processed applications for SNAP and TANF payments, as well as “underpayments.” Underpayments occurred when DHS clients did not receive the SNAP or TANF payments for which they were eligible. These could be caused by errors by DHS or by the clients.

            Social service representatives were permitted to authorize up to $2,000 in underpayments at a time without supervisory approval. As part of his work, McMillan also had access to the computer system used by DHS to manage services, including the creation of underpayments.

            Between April 25, 2018, and July 25, 2018, McMillan used his access to the computer system to authorize approximately 779 fraudulent SNAP and TANF underpayments for approximately 305 beneficiaries, totaling approximately $1,456,985. According to the plea documents, he authorized these underpayments knowing that the beneficiaries were not entitled to them.  In exchange for authorizing these fraudulent underpayments, he solicited more than $380,000 in cash kickbacks from the beneficiaries, and accepted at least $150,000 in cash kickbacks. McMillan also solicited and accepted sexual favors from some of the beneficiaries in exchange for issuing fraudulent underpayments.

            In order to avoid detection, McMillan intentionally ensured that each fraudulent underpayment transaction fell below the $2,000 threshold for which supervisory approval was required. The average fraudulent SNAP underpayment he created was approximately $1,757, and the average fraudulent TANF underpayment was $1,986.

            McMillan recruited beneficiaries to the scheme by soliciting D.C. DHS clients who were eligible for SNAP and TANF benefits and with whom he had a previous working relationship. He also used third parties to recruit beneficiaries to the scheme, For the most part, the agreement was that in exchange for authorizing fraudulent SNAP and TANF underpayments in a particular beneficiary’s name, McMillan would get approximately $1,000 out of each fraudulent TANF underpayment he authorized for that beneficiary.

            All told, 296 of the 305 beneficiaries for whom Defendant McMillan authorized fraudulent underpayments were women. In addition to soliciting and accepting cash kickbacks from these female beneficiaries, McMillan engaged in texting of a sexual nature with at least 50 of them, frequently soliciting sexual favors in exchange for authorizing fraudulent underpayments. In his guilty plea, McMillan admitted that he accepted sexual favors from 10 to 20 female beneficiaries in exchange for authorizing fraudulent underpayments.

            This case is being investigated by the FBI’s Washington Field Office, the District of Columbia Office of the Inspector General, and the U.S. Department of Health and Human Services Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Emily A. Miller, with assistance from Paralegal Specialist Aisha Keys.

The owner of a Washington, D.C.-based durable medical equipment company was sentenced to 42 months in prison today for her role in a scheme to submit $9.8 million in fraudulent claims to Medicaid.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, Special Agent in Charge Maureen Dixon of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Philadelphia Regional Office and District of Columbia Inspector General Daniel W. Lucas made the announcement.

Waveney Blackman, 71, of Bowie, Maryland, was sentenced by Senior U.S. District Judge Thomas F. Hogan of the District of Columbia, who also ordered her to serve three years of supervised release and to pay $9,412,394 in restitution.  Blackman also will be required to forfeit $9,431,979.  Blackman pleaded guilty in October 2018 to one count of health care fraud.   

According to admissions made as part of her plea agreement, from approximately January 2010 through June 2016, Blackman, who owned WaveCare Health Services of Washington, D.C., billed Medicaid for expensive wound care products that were not purchased and not provided.  Blackman submitted false and fraudulent claims to Medicaid in the amount of approximately $9.8 million, and obtained in excess of $9.4 million in fraudulent proceeds.  The proceeds from the fraudulent billing were traced to two bank accounts, a Mercedes, and seven real properties, all of which were seized by the government in June 2018. 

The FBI, HHS-OIG and the District of Columbia’s Office of the Inspector General’s Medicaid Fraud Control Unit investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the District of Columbia.  The case is being prosecuted by Trial Attorney Amy Markopoulos of the Fraud Section and Assistant U.S. Attorney Emily Miller from the District of Columbia, and Trial Attorney Parker Tobin of the Money Laundering and Asset Recovery Section.

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

WASHINGTON – The owner of a Washington, D.C.-based durable medical equipment company was sentenced to 42 months in prison today for her role in a scheme to submit $9.8 million in fraudulent claims to Medicaid.

            Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu of the District of Columbia, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, Special Agent in Charge Maureen Dixon of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Philadelphia Regional Office and District of Columbia Inspector General Daniel W. Lucas made the announcement.

            Waveney Blackman, 71, of Bowie, Maryland, was sentenced by Senior U.S. District Judge Thomas F. Hogan of the District of Columbia, who also ordered her to serve three years of supervised release and to pay $9,412,394 in restitution.  Blackman also will be required to forfeit $9,431,979.  Blackman pleaded guilty in October 2018 to one count of health care fraud.   

            According to admissions made as part of her plea agreement, from approximately January 2010 through June 2016, Blackman, who owned WaveCare Health Services of Washington, D.C., billed Medicaid for expensive wound care products that were not purchased and not provided.  Blackman submitted false and fraudulent claims to Medicaid in the amount of approximately $9.8 million, and obtained in excess of $9.4 million in fraudulent proceeds.  The proceeds from the fraudulent billing were traced to two bank accounts, a Mercedes, and seven real properties, all of which were seized by the government in June 2018.

            The FBI, HHS-OIG and the District of Columbia’s Office of the Inspector General’s Medicaid Fraud Control Unit investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the District of Columbia.  The case is being prosecuted by Trial Attorney Amy Markopoulos of the Fraud Section and Assistant U.S. Attorney Emily Miller from the District of Columbia, and Trial Attorney Parker Tobin of the Money Laundering and Asset Recovery Section. Assistance was provided by Paralegal Specialist Robert Fishman of the Fraud Section and Paralegal Specialist Aisha Keys of the U.S. Attorney’s Office for the District of Columbia.

            The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

            WASHINGTON - Anthony Waters, 51, was sentenced today to life in prison with no possibility of release on a charge of first-degree murder while armed, with aggravating circumstances, in the 2010 killing of a government witness, announced U.S. Attorney Jessie K. Liu and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

         Waters, of Washington, D.C., was found guilty by a jury in October 2018 of the murder charge and related weapons offenses, following a trial in the Superior Court of the District of Columbia. Waters initially was found guilty of these charges in 2012 and sentenced at that time to life in prison with no possibility of release. The judge who heard the case in 2012 subsequently granted a defense motion by Waters seeking a new trial. The retrial resulted in the same outcome before the Honorable Craig Iscoe, who sentenced him today.

         According to the government’s evidence at trial, Waters and the victim, Derrick Harris, 37, knew each other from the 2600 block of Birney Place SE, and were part of a crew in a neighborhood known as Parkchester.  In June 1998, Mr. Harris testified against a member of that crew regarding a 1996 murder that occurred in the Barry Farm area of Southeast Washington. Afterward, Mr. Harris was shunned and marked as a snitch in the neighborhood by many people he knew, including Waters, for cooperating with the authorities.

            For many years, Mr. Harris avoided the neighborhood where he knew that people considered him a traitor, but on June 14, 2010, he returned to the 2600 block of Birney Place to meet a friend.  At this time, Waters and Mr. Harris got into an argument because Waters believed that Mr. Harris was being disrespectful by returning to the neighborhood.  Waters punched Mr. Harris in the face and threatened to kill him if he was still there when Waters returned.  Both men left the scene, but Waters returned and hid behind a building, waiting for the victim to come back to his car.

            Shortly thereafter, at about 9 p.m., when Mr. Harris returned to the neighborhood, Waters came out from his hiding place, wearing a ski mask, and repeatedly shot Derrick Harris.  Mr. Harris died on the scene from his injuries, which included one gunshot wound to the head and five to the back.

            In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department.

            They also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Margaret J. Chriss, Chief of the Special Proceedings Division; Chrisellen Kolb and John Mannarino, Deputy Chiefs of the Appellate Division, Laura Bach, Deputy Chief of the Homicide Section; Assistant U.S. Attorney Timothy Lucas; Paralegal Specialists Alesha Matthews Yette and Meridith McGarrity; Victim/Witness Advocates Marcia Rinker and Yvonne Bryant; Victim/Witness Services Coordinator LaJune Thames; Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Litigation Technology Specialists Anisha Bhatia, Paul Howell, and William Henderson; Supervisory Litigation Technology Specialist Leif Hickling, and  Investigative Analysts Zachary McMenamin and William Hamann.

            Finally, they praised the work of Assistant U.S. Attorney S. Vinét Bryant, who indicted the case and prosecuted it at both trials. 

WASHINGTON – Willie Quinones, 28, of Washington, D.C., pled guilty today to federal robbery and firearms charges stemming from a hold-up that took place in October 2016 at a diner in Northwest Washington, announced U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            Quinones pled guilty in the U.S. District Court for the District of Columbia to charges of interference with interstate commerce by robbery (Hobbs Act) and using, carrying, brandishing, and possessing a firearm during a crime of violence. The robbery charge carries a statutory maximum of 20 years in prison and the firearms offense carries a mandatory minimum of seven years and a potential sentence of life imprisonment. Under federal sentencing guidelines, Quinones faces a likely range of 57 to 71 months in prison for the robbery charge and at least seven additional years on the weapons offense.

            The Honorable Tanya S. Chutkan scheduled sentencing for May 21, 2019.

            According to plea documents, on Oct. 17, 2016, at approximately 3:12 a.m., Quinones and an accomplice entered the Steak-N-Egg restaurant in the 4700 block of Wisconsin Avenue NW. Quinones approached employees to gain access to the cash register while his accomplice pointed a gun at them. The employees raised their hands into the air and kneeled on the floor. Quinones then took money from the cash register before demanding access to a safe.

            When an employee insisted that they did not have a key to the safe, Quinones yelled to his accomplice to shoot them. The accomplice, meanwhile, held the gun and pointed it around the room at people inside the restaurant. The accomplice asked which person to shoot, and Quinones responded that the accomplice could shoot all of them.

            No shots were fired, and Quinones then approached and robbed three customers in the establishment. The two then fled the diner.

            At the time of the robbery, Quinones was on probation for an armed robbery in Prince George’s County, Md., and was wearing a GPS tracking device. He was located at 11 a.m., hours after the crime, by MPD officers at an apartment building in Northeast Washington. He was arrested and has remained in custody ever since. No others have been arrested in the case.

            This case was investigated by the FBI’s Washington Field Office and the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney Gregory P. Rosen, with assistance from former Assistant U.S. Attorney Kara Traster.

WASHINGTON – A federal grand jury today returned a superseding indictment charging four men with murder and other charges in the kidnapping of a Maryland man whose body was found in an alley in Southeast Washington last June. The victim had been shot numerous times and his hands were still bound with zip-ties.

            The announcement was made by U.S. Attorney Jessie K. Liu, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Chief of the Metropolitan Police Department (MPD).

            Darin Moore, Jr. 25, of Bowie, Md., and Gabriel Brown, 30, James Thomas Taylor, 30, and John Sweeney, 25, who are all from Washington, D.C., were indicted by a grand jury in the U.S. District Court for the District of Columbia on one count of kidnapping resulting in death, one count of conspiracy to commit kidnapping, one count of first-degree murder (premeditated), and one count of first-degree murder (felony murder).  Moore, Taylor, and Sweeney were also charged with one count of using, carrying, possessing, brandishing, and discharging a firearm during and in relation to a crime of violence.  The indictment also includes a forfeiture allegation seeking all proceeds of the alleged crimes.

            All four men are to be arraigned on the charges by the Honorable Judge James E. Boasberg on March 11, 2019. The defendants previously were indicted on kidnapping and related charges and pled not guilty. Today’s superseding indictment added the murder offenses.

            According to the indictment and related court documents, on June 19, 2018, Moore and Sweeney abducted the victim, Andre Simmons, Jr., from Bowie, Md., and transported him to the District of Columbia.  Together, the defendants then allegedly used cellphones to communicate with family and associates of the victim, making ransom demands and threatening the victim’s life.  During these calls, arrangements were made with family members and associates to pick up the ransom money. As alleged in the indictment, Brown collected U.S. currency on June 20, 2018.  Mr. Simmons, 28, was taken to the rear of the 600 block of Atlantic Street SE, where he was shot multiple times with a firearm.  The four men then met up in Capitol Heights, Maryland, to divide up the proceeds of the ransom demand, the indictment alleges.

            Moore was arrested on June 20, 2018. Brown was arrested on June 27, 2018, Taylor was arrested on Aug. 17, 2018, and Sweeney was arrested on Jan. 14, 2019. All have been in custody since their arrests.

            An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.

            This case is being investigated by the FBI’s Washington Field Office and MPD’s Homicide Division. It is being prosecuted by Assistant U.S. Attorneys Steven Wasserman and Laura Crane, of the U.S. Attorney’s Office for the District of Columbia.

WASHINGTON - The Department of Justice has reached a settlement of its civil forfeiture case against assets owned by Hikmatullah Shadman that he wrongfully acquired as a government contractor in Afghanistan.  Under the terms of the settlement, approximately $25 million will be forfeited to the United States.  The civil settlement is part of a global settlement that involved the resolution of a criminal case and False Claims Act allegations. 

            Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Assistant Attorney General Jody Hunt of the Department’s Civil Division, U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina, Inspector General John F. Sopko of the Special Inspector General for Afghanistan Reconstruction (SIGAR), Director Frank Robey of the U.S. Army Criminal Investigation Command (CID)’s Major Procurement Fraud Unit, Special Agent in Charge Robert E. Craig  Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Special Agent in Charge John Strong of the FBI North Carolina Field Office made the announcement after the settlement was signed and filed with the U.S. District Court for the District of Columbia. 

            “The United States relies on government contractors to supply and resupply our military with vital resources they require to carry out critical missions,” said Assistant Attorney General Hunt.  “We will continue to ensure that companies and individuals who contract directly or indirectly with the federal government do not engage in fraudulent business practices at the expense of our nation’s military and the American taxpayer.”

            “The success of our overseas war and reconstruction efforts is tied directly to the trust and respect established with the local populace,” said U.S. Attorney Higdon.  “Corruption in our military operations undermines those efforts and cannot be tolerated.”

            “This case involved fraud and corruption that exploited subcontracts designed to support American troops in a conflict zone,” said Special Inspector General John F. Sopko. “I’m proud of the tenacity displayed by SIGAR special agents, whose dogged pursuit of justice led to the return of $25 million to the United States Treasury.”

           According to court documents, Hikmatullah Shadman, a young Afghan national, operated several companies including Hikmat Shadman Logistics Services Company (HSLSC), which served as subcontractors delivering supplies to U.S. service members at various locations in Afghanistan.  From November 2010 to March 2012, Shadman charged the United States more than $77 million for delivering supplies to U.S. service members.  The civil forfeiture case, initially filed on Nov. 20, 2012, targeted, among other things, Shadman’s fraudulent receipt of a disproportionate number of subcontracts for the transport of military supplies in Afghanistan, as well as the inflated prices that he charged the United States for such transport.

            From at least 2007 to 2012, the U.S. Government paid contractors and subcontractors to resupply U.S. military forces operating in Afghanistan, and utilized local Afghan-owned businesses to transport fuel and other supplies by truck to various locations throughout the country.  The investigation revealed thousands of apparent falsified documents submitted by Shadman’s companies to the United States for payment.  As a result of this falsification, the Government often paid Shadman for work that was never performed and for work other than that described in the documentation submitted.  Through his companies, Shadman also charged the United States rates which were well above the average rate of his competitors.  The forensic analysis conducted in this case revealed that Shadman overcharged the United States millions of dollars for transporting supplies to U.S. service members in Afghanistan. 

            As part of the global settlement, several companies owned and controlled by Shadman, including HSLSC, entered into a separate agreement with the United States to resolve False Claims Act allegations arising from kickbacks paid from November 2010 to May 2012 to obtain subcontracts to transport military supplies needed by the U.S. military in Afghanistan.  Under the agreement, $1.5 million of the forfeited funds will be paid to resolve these claims.

            In addition to the civil forfeiture and False Claims Act resolutions, Shadman’s primary company, HSLSC, was criminally prosecuted by the U.S. Attorney’s Office in the Eastern District of North Carolina.  On Jan. 3, HSLSC pleaded guilty to a criminal information, No. 5:18-cr-492-1, charging the corporation with two counts of paying gratuities to two U.S. service members in Afghanistan, and one count of conspiracy to do the same, in order to influence the award of subcontracts to HSLSC and to ensure favorable treatment in the contracting process.  In this criminal case, HSLSC was sentenced to pay an $810,000 fine and forfeit $190,000.  Under the terms of the civil settlement agreement agreed to by the parties, those funds will be paid to the United States before the civil settlement is concluded.  As part of the criminal case, HSLSC also agreed to be placed on probation for five years, not to contest debarment, not to seek to engage in business within the United States, and its corporate officers agreed not to apply for a visa to travel to the United States. 

            “The corporate plea and the civil settlement filed today once again demonstrates that defrauding the government is a losing proposition,” said Director Robey of the U.S. Army CID’s Major Procurement Fraud Unit.  “Stealing U.S. tax dollars meant to support our soldier’s readiness is an egregious abuse of trust.  We, along with our law enforcement partners, will continue to protect the U.S. military from unscrupulous businesses.”

            “DCIS will aggressively investigate complex fraud and corruption that undermines the integrity of the Department of Defense (DoD) no matter where it happens or how long it takes,” said DCIS Special Agent in Charge Craig.  “We hope that this case demonstrates the commitment of DCIS and our law enforcement partners to use every available option to protect valuable DoD resources around the world and better enable our Warfighters to accomplish our critical global missions.”

            This civil forfeiture case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office.  Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].

            The investigation was conducted by SIGAR along with the FBI, DCIS, the U.S. Army Major Procurement Fraud Unit, and the U.S. Air Force Office of Special Investigations, and was prosecuted by Trial Attorneys Patricia Kessler and Steven Parker of MLARS International Unit, and Assistant U.S. Attorney Elizabeth Aloi of the District of Columbia (formerly of MLARS).  The HSLSC criminal case was prosecuted by Assistant U.S. Attorney Banu Rangarajan of the Eastern District of North Carolina.

            The civil False Claims Act imposes treble damages and penalties on those who knowingly submit false or fraudulent claims for government funds or property.  The False Claims Act investigation was handled by Trial Attorney Glenn Harris of the Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorneys John Truong and Heather Graham Oliver of the U.S. Attorney’s Office for the District of Columbia. 

WASHINGTON – Eric Rory, 40, of Suitland, Md., was sentenced today to 37 months in prison for illegally possessing and selling firearms.

            The announcement was made by U.S. Attorney Jessie K. Liu, 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 Henry P. Stawinski III, Chief of the Prince George’s County, Md. Police Department.

            Rory pled guilty on Dec. 14, 2018, in the U.S. District Court for the District of Columbia, to possession of a firearm by a person previously convicted of a crime punishable by more than one year. He was sentenced by the Honorable Randolph D. Moss. Following his prison term, he will be placed on three years of supervised release.

            The guilty plea followed an investigation last spring by ATF and the Prince George’s County Police Department into Rory’s activities selling firearms. According to the plea agreement, in May of 2018, Rory arranged to sell a firearm to another individual in the Fairfax Village area of Southeast Washington. Rory met the individual and drove him around the block in his SUV. While inside the car, Rory sold the man a 9-mm handgun that was previously stolen from a federally licensed firearms retailer in Virginia. Rory sold the firearm and ammunition for $700. Rory possessed a second firearm inside the SUV but did not sell it on that date.

            At the time of his arrest, Rory was on supervised release after pleading guilty in the U.S. District Court for the Eastern District of Virginia to a 2012 drug trafficking offense; he was sentenced to a five-year prison term for that crime. Additionally, Rory was convicted in 2013 of a drug offense in the Superior Court of the District of Columbia.

            Rory is additionally charged with possession of two firearms and possession with the intent to distribute controlled substances in the District of Maryland in connection with this investigation. That matter is pending.

             This case is being investigated by ATF and the Prince George’s County Police Department. It is being prosecuted by Assistant U.S. Attorneys Kevin L. Rosenberg and Gregory Rosen of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.