Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
29 February 2024
Batesburg-Leesville Man Sentenced to Federal Prison for Drug TraffickingRead the Press Release
COLUMBIA, S.C. — Nicholas Barrios Rattray, 40, of Batesville-Leesville, was sentenced to 60 months in federal prison after pleading guilty to possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine.
Evidence presented to the court showed that on Nov. 28, 2018, Lexington County Sheriff’s Department narcotics agents visited Rattray’s Leesville residence after receiving information that Rattray was possibly involved in the distribution of methamphetamine. While agents spoke briefly with Rattray at the residence, they could smell the odor of marijuana and determined that the smell was coming from Rattray’s residence. A search warrant was obtained for the property. During a subsequent search of the residence and a vehicle parked on the property, agents found over 500 grams of methamphetamine, two firearms, marijuana, and over $10,000 in cash among other items consistent with drug distribution.
United States District Judge Mary Geiger Lewis sentenced Rattray to 60 months in prison, to be followed by a four-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Lexington County Sheriff’s Department. Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
###
Baltimore Man Pleads Guilty to Involuntary Manslaughter and Driving Under the Influence, Related to a Fatal Crash on the Baltimore-Washington ParkwayRead the Press Release
Greenbelt, Maryland – Samuel Sweeley, age 33, of Baltimore, Maryland, pleaded guilty today to federal charges of involuntary manslaughter and driving under the influence of alcohol in connection with a fatal vehicle crash on the Baltimore-Washington (“BW”) Parkway.
The guilty plea was announced by Erek L. Barron, United States Attorney for the District of Maryland and Chief Jessica M.E. Taylor of the United States Park Police (“USPP”).
According to his guilty plea, at approximately 2:38 a.m. on September 4, 2022, Sweeley was driving his Lexus SUV northbound on the BW Parkway, approaching the ramp to the inner loop of I-495/I-95. Sweeley got into the exit lane, but did not exit, instead driving onto the shoulder beyond the exit ramp. Approximately 10 to 15 feet beyond the exit ramp, Sweeley drove his SUV into the rear of an occupied Hyundai Elantra sedan, which was parked on the shoulder with its hazard lights on.
As detailed in the plea agreement, the male driver was pronounced dead at the scene and the female passenger was transported to the hospital. Sweeley consented to a blood draw and was transported to the hospital by a USPP officer. Sweeley subsequently declined to allow a blood draw to occur. The officer noticed that Sweeley had an odor of alcohol emanating from his person and breath, was slurring his speech, and had red, bloodshot, water eyes. The officer administered field sobriety tests, determined that Sweeley was under the influence of alcohol, and obtained a search warrant for a blood draw from Sweeley. At 6:48 a.m., approximately four hours after the crash, Sweeley’s blood was drawn and found positive for alcohol at a level of .15 grams of alcohol per 100 milliliters of blood.
The USPP investigation of the collision determined that the primary causes of the crash were that Sweeley improperly utilized a parallel deceleration lane, was traveling 80 mph in a posted 55 mph zone, and was driving under the influence at the time of the crash.
Sweeley faces a maximum sentence of eight years in federal prison for involuntary manslaughter and a maximum of six months in prison for driving under the influence. As part of his plea agreement, Sweeley will be required to pay restitution, including compensation for the loss and/or damages to the victim’s vehicle, as well as the victim’s emergency medical, funeral and burial costs. U.S. District Judge Theodore D. Chuang has scheduled sentencing for June 18, 2024 at 2:30 p.m.
U.S. Attorney Erek L. Barron commended the USPP for its work in the investigation. Mr. Barron also thanked Assistant United States Attorneys Shabnam Aryana and Joel Crespo, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Abbeville Man Convicted of Distributing Fentanyl Sentenced to Federal PrisonRead the Press Release
LAFAYETTE, La. – United States Attorney Brandon B. Brown announced that Gabriel Hawthorne, 41, of Abbeville, Louisiana, has been sentenced for conspiring to distribute fentanyl in the Abbeville area. United States District Judge Robert R. Summerhays sentenced Hawthorne to 120 months (10 years) in prison, followed by 3 years of supervised release.
Hawthorne and two co-defendants were charged in a superseding indictment with conspiracy to distribute and possess with intent to distribute controlled substances, including fentanyl. Hawthorne went to trial on the charges and was found guilty by a federal jury on November 16, 2023 of the conspiracy charge and on one count of possession with intent to distribute fentanyl.
Information at trial showed that Hawthorne conspired with Frederick Malaki Thornton and another co-defendant, Andrea Mitchell, to distribute fentanyl in the Abbeville area. In March 2022, an individual exchanged a series of phone calls and text messages with Mitchell, and she agreed to sell heroin to that individual. She arranged the distribution of the heroin by communicating with Thornton, who was her boyfriend at the time, and Hawthorne, who was her supplier. Hawthorne owned a business, ZZ’s Kitchen, in Abbeville and would use that business to store the narcotics that he, Mitchell and Thornton made arrangements to sell. Mitchell also admitted that Hawthorne would mix the fentanyl before giving it to her to sell. The suspected heroin which was sold by Mitchell and Thornton were seized and sent to the DEA Laboratory for testing and resulted a positive test for fentanyl.
Hawthorne’s co-defendants Frederick Malaki Thornton and Andrea Mitchell have both pleaded guilty and will be sentenced at a later date.
The case was investigated by the Drug Enforcement Administration and was prosecuted by Assistant United States Attorney John W. Nickel.
# # #
A New York Man is Sentenced for Sexual Abuse and Production of Child PornographyRead the Press Release
TULSA, Okla. – U.S. District Judge John D. Russell, sentenced Carlos Caraballo, 28, of Bellport, New York, to 324 months of imprisonment, followed by lifetime supervision for Sexual Abuse of a Minor in Indian Country and Production of Child Pornography. Upon his release, Caraballo will also be required to register as a sex offender.
According to court documents, in 2021, Caraballo met a 13-year-old minor victim in a chat room. After conversing with the child long-distance via computer and phone, Caraballo drove from New York to Oklahoma. While he was in Oklahoma, Caraballo engaged in sexual acts with the minor and took sexually explicit photos of the minor.
The minor is a citizen of the Cherokee Nation. Caraballo will remain in custody pending transfer to a U.S. Bureau of Prisons facility.
The FBI investigated the case. Assistant U.S. Attorney Vani Singhal prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.
28 February 2024
Wauchula Man Sentenced for Producing Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Christopher Froehlich (42, Wauchula) to 40 years in federal prison for producing child sexual abuse material. Froehlich entered a guilty plea on July 19, 2023.
According to court documents, Froehlich posed as a 15-year-old boy and connected with the 15-year-old victim via a live-streaming video service. Froehlich convinced the victim that they were in a relationship and coerced the child to produce sexually explicit videos and photos for Froehlich. When the child tried to stop producing sexually explicit videos and photos for Froehlich, Froehlich threatened to post the videos and photos to social media for the child’s family and friends to see. In June 2020, the child attempted to stop communication with Froehlich, at which point Froehlich posted the child’s nude photos to social media. Froehlich continued to contact the child until June 2022 by using various phone numbers and different usernames on social media platforms.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Abigail K. King and Courtney H. Derry.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Office and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
United States Sues For-Profit Schools in Tampa and Orlando for False Claims Involving the Post-9/11 GI BillRead the Press Release
Tampa, FL - The United States has filed a civil lawsuit against two New Horizons Computer Learning Center franchises and their owner, Robert J. Remington, alleging they submitted false claims to the Department of Veterans Affairs (VA) for Post-9/11 GI Bill tuition payments. The defendants allegedly overcharged the VA by failing to report tuition waivers and scholarships provided to GI Bill students and falsely certifying compliance with Title 38’s ban on incentive compensation tied to student enrollment.
The GI Bill financially supports service members, veterans, and their eligible dependents who attend an education or training program at an educational institution. The longer a person serves in the military, the greater the benefits available under the GI Bill. If a school offers to waive tuition for a student receiving less than 100-percent assistance, that tuition waiver must be reported to the VA and the student’s portion reduced accordingly. Additionally, Title 38 prohibits participating schools from paying any commission, bonus, or other incentive payment based directly or indirectly on securing student enrollments.
In its complaint, the United States alleges Remington and his businesses, LTJ Group V, LLC, and Innovak of Florida, Inc., which did business as New Horizons Computer Learning Centers, repeatedly failed to report tuition waivers for students receiving less than 100-percent assistance under the GI Bill and failed to comply with Title 38 by paying commissions, bonuses, or other incentive payments to enrollment representatives based on sales of New Horizons courses to GI Bill students.
The claims asserted against Remington, LTJ Group V, and Innovak of Florida are allegations only, and there has been no determination of liability.
This case was investigated by the Department of Justice and the Department of Veterans Affairs, Office of Inspector General. It is being prosecuted by Assistant United States Attorneys Lindsay S. Griffin and Mamie V. Wise.
Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the VA Office of Inspector General at (800) 488-8244 or at [email protected].
United States Attorney’s Office for the Eastern District of Washington Hires Assistant United States Attorney Dedicated to Prosecuting MMIP Cases in the Northwest United StatesRead the Press Release
Yakima, Washington - United States Attorney Vanessa R. Waldref announced today that Bree R. Black Horse has joined her office as an Assistant United States Attorney dedicated to prosecuting cases involving Missing and Murdered Indigenous People (MMIP), in connection with the Justice Department’s MMIP regional program. AUSA Black Horse will work out of our Yakima Office, but she will serve throughout the Northwest Region – including in Washington, Oregon, Montana, Idaho, and California.
AUSA Black Horse is an enrolled member of the Seminole Nation of Oklahoma. Prior to joining the U.S. Attorney’s Office, AUSA Black Horse worked in the Native American practice group at the law firm of Kilpatrick Townsend advising Tribal governments and enterprises on all aspects of federal, state, and tribal law, including tribal sovereignty, economic development, treaty rights, and complex Indian country litigation. AUSA Black Horse previously served as a law clerk to Chief U.S. District Court Judge Brian M. Morris for the District of Montana, and as a legal aid attorney and public defender for the Confederated Tribes and Bands of the Yakama Nation. AUSA Black Horse was the Program Director for the 2023 Law School Admission Council’s Pre-Law Undergraduate Scholars Program, which aims to make a law degree more accessible for diverse students from Central Washington. She is a 2013 graduate of Seattle University School of Law where she was the Douglas R. Nash Native American Scholar as well as the co-founder and editor-in chief of the American Indian Law Journal. She received her undergraduate degree from Seattle Pacific University in Political Science and Government in 2010.
“Our District is committed to being a leader in addressing the MMIP crisis. I am honored to welcome AUSA Black Horse as the newest member of the Department of Justice,” stated U.S. Attorney Waldref. AUSA Black Horse will serve as the Assistant United States Attorney dedicated to prosecuting cases involving matters related to MMIP on Native American Reservations. Her appointment demonstrates DOJ’s commitment to combating the root causes of MMIP crisis and holding those who commit these crimes accountable. I am also grateful for the close relationships with have with our Tribal, Federal and State partners as we work together in the joint mission of ensuring justice for all. As we welcome AUSA Black Horse, we reiterate our shared commitment to ensuring the safety and security of all who call Eastern Washington home.”
AUSA Black Horse expressed her gratitude for the opportunity to serve in this important role. “For far too long Indigenous men, women and children have suffered violence at rates higher than many other demographics,” stated AUSA Black Horse. “As I step into this role, I look forward to working with our local, state, and tribal partners to identify concrete ways of reducing violence and improving public safety in Indian country and elsewhere. I also look forward to honing my skills as a federal prosecutor and working with others who are dedicated to DOJ’s mission to seek justice on behalf of victims and their families.”
The U.S. Attorney’s Office plans to hold a formal swearing in for AUSA Black Horse. The U.S. Attorney’s Office will provide additional details when the schedule for that event is set.
The MMIP regional program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to United States Attorneys’ offices promoting public safety in Indian country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022.
The program dedicates five MMIP Assistant U.S. Attorneys and five MMIP coordinators to provide specialized support to United States Attorneys’ offices to address and combat the issues of MMIP. This support includes assisting in the investigation of unresolved MMIP cases and related crimes, and promoting communication, coordination, and collaboration among federal, Tribal, local, and state law enforcement and non-governmental partners on MMIP issues. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions, and MMIP personnel will be located within host United States Attorneys’ offices in the Districts of Alaska, Arizona, Eastern Washington, Minnesota, New Mexico, Northern Oklahoma, Oregon, South Dakota, and Western Michigan. Programmatic support will be provided by the MMIP Regional Outreach Program Coordinator at the Executive Office for United States Attorneys.
More broadly, this MMIP Program will complement the work of the Justice Department’s National Native American Outreach Services Liaison, who is helping amplify the voice of crime victims in Indian country and their families as they navigate the federal criminal justice system. Further, the MMIP Program will liaise with and enhance the work of the Department’s Tribal Liaisons and Indian Country Assistant United States Attorneys throughout Indian Country, the Native American Issues Coordinator, and the National Indian Country Training Initiative Coordinator to ensure a comprehensive response to MMIP.
U.S. Attorney's Office to Host Youth Outreach Event in Asheville as Part of Project Safe NeighborhoodsRead the Press Release
ASHEVILLE, N.C. – The U.S. Attorney’s Office will host a youth outreach event in Asheville tomorrow as part of the Justice Department’s Project Safe Neighborhoods (PSN) program, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
The event, titled “An Intersection of Youth and the Criminal Justice System,” is a collaboration between the U.S. Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) , in partnership with My Daddy Taught Me That (MDTMT), a youth development organization based in Asheville that receives federal PSN grants.
Adolescents invited to the event will actively engage with representatives of the federal agencies. The speakers will lead discussions through story-telling and interactive sessions on topics centered on promoting healthy choices, fostering good decision-making, handling peer pressure, developing conflict prevention strategies, and enhancing positive dispute resolution skills. In addition, the event will provide a platform for participating youths to relay personal experiences engaging with law enforcement and share ideas on how to interact with law enforcement in effective, positive, and productive ways.
“Engaging with young people is a key component of our efforts to enhance community safety and develop trust and respect between law enforcement and those we serve,” said U.S. Attorney King. “We are looking forward to connecting with young people and speaking to them directly about how the decisions they make today can impact their future and share ways they can maintain a path to success. We will also share practical tools and skills for safe and effective interactions with law enforcement and what young people can do to help increase safety in their schools and neighborhoods.”
“As law enforcement professionals, it is a privilege to take a moment and share what we’ve learned and experienced in our work to make communities better and safer,” said ATF Special Agent in Charge Bennie Mims. “Our hope is that by highlighting what makes our work so rewarding, we can encourage young people to make the right choices and take the right steps towards a better opportunity.”
“My Daddy Taught Me That is a program designed to uplift and support the development and education of youth and young males,” said MDTMT Founder Keynon Lake. “Our mission is to foster and empower boys to become healthy men, and to develop into the leaders of tomorrow. This is facilitated through education, hands-on activities, and participation in innovative and unique events like this, that will have a positive and long-lasting effect on all those who participate.”
MDTMT is a youth development program designed to support youth through advocacy, education, and mentoring. For more information on MDTMT, please visit https://mydaddytaughtmethat.org/.
Led by the U.S. Attorney’s Office, PSN is a collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to enhance public safety. On May 26, 2021, the Justice Department launched a strategy strengthening PSN, so that it is built on the core principles of fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results of those efforts.
U.S. Attorney Karam Holds United Against Hate Program at Wilkes-Barre Area High SchoolRead the Press Release
SCRANTON - United States Attorney Gerard M. Karam announced that the U.S. Attorney’s Office held an event at the Wilkes-Barre Area High School to promote the Department of Justice’s United Against Hate initiative. The event, which included federal, state, and local law enforcement partners, focused on educating students on how to identify, report, and prevent hate crimes.
In its auditorium and broadcasted to over 2,800 students, the Wilkes-Barre Area High School hosted subject matter experts from the United States Attorney’s Office, the Pennsylvania Attorney General’s Office; the Federal Bureau of Investigations, the Pennsylvania State Police, the Mayor of Wilkes-Barre, the Luzerne County District Attorney, and the Wilkes-Barre City Police Department. Presenters highlighted differences between hate crimes versus hate incidents and provided options for responding to hate incidents when situations do not constitute a federal or state crime. Presenters also distinguished unlawful conduct from protected First Amendment activity, including identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.
U.S. Attorney Karam previously hosted meetings in November 2022, in the Harrisburg area with an audience of various law enforcement agencies and community leaders from across the mid-state; in March 2023, at Scranton High School for students and community leaders; in December 2023, in Harrisburg and Scranton with Jewish faith leaders; and, January 2024, with Central York High School for students. Also, scheduled this month, U.S. Attorney Karam will meet with Islamic faith leaders.
“We are committed to reach young people, our future leaders, to ensure they understand the difference between speech that is protected under the First Amendment and crimes that threaten not just one individual but groups of people because of what they look like, who they love, and what faith they practice,” said U.S. Attorney Karam. “The United Against Hate initiative continues to bring our communities together in partnership with federal, state, and local law enforcement in order to build trust and encourage the reporting of hate crimes and hate incidents.”
Those who believe they are subject to hate crimes or incidents should contact local law enforcement and the FBI. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/. Anyone in the Middle District of Pennsylvania may also report civil rights violations to the Civil Rights coordinator of the U.S. Attorney’s Office for the Middle District of Pennsylvania by calling 717-614-4911 or emailing [email protected].
# # #
Two More Defendants Arrested During 2023 Joint Enforcement Operation in Carlsbad Plead Guilty to Federal Drug OffensesRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Towanda R. Thorne-James, Special Agent in Charge for the Drug Enforcement Administration El Paso Division, announced today that Kassandra Lee Perales and Jared Michael Moore, two of the 12 defendants arrested during a joint enforcement operation last year in Carlsbad, pleaded guilty in federal court to federal drug offenses.
Perales, 33, of Carlsbad, pleaded guilty on Feb. 6, 2024, to conspiracy to distribute 50 grams and more of methamphetamine and 400 grams and more of fentanyl, conspiracy to distribute 500 grams and more of cocaine, attempt to possess with intent to distribute 50 grams and more of methamphetamine, attempt to possess with intent to distribute 500 grams and more of cocaine, possession with intent to distribute 400 grams and more of fentanyl and possession with intent to distribute 50 grams and more of methamphetamine. Moore, 42, of Carlsbad, pleaded guilty on Feb. 27, 2024, to conspiracy to distribute cocaine and possession with intent to distribute cocaine. Both Perales and Moore will remain in custody pending sentencing, which has not been scheduled.
According to publicly available court records, on March 5, 2023, Moore took possession of 55.8 net grams of cocaine with the intent of distributing it. When he was driving away, law enforcement agents stopped Moore and seized the cocaine, as well as 10.97 grams of pure meth.
On April 3, 2023, Perales traveled from Carlsbad to El Paso to pick up 1,974 net grams of cocaine and 501.4 net grams of pure meth that had been transported from Mexico into the United States the day before and left in the trunk of a vehicle. Unbeknownst to Perales, the drugs had been seized by law enforcement the day before.
The following week, on April 10, 2023, Perales met with another individual and took possession of 893.3 net grams of pure meth and 657 net grams of fentanyl pills with the intent of transporting them to North Dakota to sell. On April 11, 2023, Perales departed Carlsbad for North Dakota when they were stopped by officers who seized the drugs.
At sentencing, Perales faces between 10 years and life in prison followed by a term of supervised release and Moore faces up to 20 years in prison followed by a term of supervised release.
The Drug Enforcement Administration investigated this case with assistance from Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pecos Valley Drug Task Force, with enforcement assistance from the United States Marshal Service, Carlsbad Police Department, Eddy County Sheriff’ Department, Roswell Police Department, Chaves County Drug Task Force, DEA Airwing and Customs and Border Patrol. The New Mexico Air National Guard’s Air Unit, Artesia Police Department and Customs and Border Patrol’s Air Unit provided support during the operation on August 1, 2023.
Assistant U.S. Attorneys Renee L. Camacho and Devon Aragon-Martinez are prosecuting the case.
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
###
24-84
Two Men Sentenced for Government Loan Program FraudRead the Press Release
United States Attorney Susan Lehr announced that Shawn A. Prater, 49, of Omaha, Nebraska, and Trevor A. McNeil, 35, formerly of Omaha and currently of Fairburn, Georgia, were both sentenced on February 28, 2024, in federal court in Omaha by United States District Court Judge Brian C. Buescher, following the conviction of each for wire fraud.
Prater pled guilty in November 2023. He was sentenced to 5 years’ probation and ordered to pay $82,532.98 in restitution. As a condition of probation, Prater must pay at least $1,500 per month toward restitution.
McNeil pled guilty in December 2023. He was sentenced to 16 months’ imprisonment and ordered to pay $402,070.60 in restitution. There is no parole in the federal system. After McNeil’s release from prison, he will begin a 3-year term of supervised release.
During 2020 and 2021, Prater and McNeil, assisted by another person, submitted applications for Paycheck Protection Program (“PPP”) and Economic Injury Disaster Loan (“EIDL”) program loans. Those loan programs were created or expanded by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act, which was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic.
The applications misrepresented how much Prater’s and McNeil’s businesses had paid employees in past compensation and how much revenue McNeil’s business had received, resulting in significantly inflated loan amounts under the PPP and EIDL programs. The PPP applications were supported by false tax documents. The fraudulent applications on behalf of Prater sought loans totaling approximately $157,514.50, and he obtained $80,165. The fraudulent applications on behalf of McNeil sought loans totaling approximately $492,494, and he obtained $379,994.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
This case was investigated by the Federal Bureau of Investigation and the Small Business Administration, Office of Inspector General.
Two Men Convicted in a Scheme to Defraud a Professional AthleteRead the Press Release
ANNISTON, Ala. – Two men were convicted of financial crimes, including money laundering, structuring, tax fraud, and conspiracy to commit wire fraud against a professional athlete, announced U.S. Attorney Prim F. Escalona, ATF Special Agent in Charge Marcus Watson, IRS-CI Acting Special Agent in Charge, Atlanta Field Office Demetrius D. Hardeman, and U.S. Postal Inspection Service Inspector-in-Charge Scott D. Fix, Houston Division.
The jury returned a guilty verdict against Anthony Lamon Frazier, 41, of Talladega, and Frederick Andre Spencer, 38, of Birmingham, after four days of testimony before U.S. District Court Judge Corey L. Maze. Frazier was convicted on twenty-four counts of money laundering, four counts of structuring, and three counts of tax fraud. Both Frazier and Spencer were convicted of conspiracy to commit wire fraud.
“This fraud was driven by the defendants’ greed,” said U.S. Attorney Escalona. “The U.S. Attorney’s Office will continue to work with our law enforcement partners to investigate and prosecute those who commit complex financial crimes. I want to thank the prosecutors and our law enforcement partners for their hard work investigating and prosecuting this case.”
“The verdict brought in this trial will have an immediate impact on this community,” said ATF Special Agent in Charge Watson. “This collaborative investigation, and the verdict rendered, will ensure those responsible for criminal activity in our community are held responsible. We at ATF will continue to work with our local, state, and federal partners in our continuing effort to combat violent crime, maintain public safety, and remove criminals who continuously show total disregard for the law.”
“A primary component of the U.S. Postal Inspection Service mission is to ensure public trust in the mail,” said Scott Fix, Inspector-in-Charge of the Houston Division. “When individuals like Frazier and Spencer challenge that mission, Postal Inspectors will aggressively investigate and remain steadfast in our resolve to seek justice to the end.”
“The defendants unjustly enriched themselves through financial fraud on their victim,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS Criminal Investigation special agents and our law enforcement partners will continue actively pursuing those who engage in these types of illegal financial activities.”
According to evidence presented at trial, between 2017 and 2020, Frazier worked as a Talladega County Tax Assessor, and used his county work truck for drug trafficking and money laundering the proceeds of drug trafficking. Frazier purchased and deposited postal money orders and input false information on the orders, purporting that they were for car sales, to launder his drug proceeds into his business bank accounts. Frazier also structured these proceeds into bank accounts and, in doing so, avoided reporting requirements for the U.S. Postal Service and for PNC Bank.
At the same time, Frazier and Spencer agreed to work on behalf of a professional athlete to create a sports-marketing agency called “Head of Game.” The professional athlete invested $500,000 for the purpose of building this agency and, based on promises made by Frazier and Spencer, wired the money into a “Head of Game” bank account held by Frazier. Frazier immediately wired almost half of the funds into a bank account for “Mom and Son’s Towing,” which was held by Spencer’s mother. In 2019 and 2020, Spencer and Frazier used the athlete’s money on various personal expenses rather than to build the marketing agency. Spencer and Frazier spent the money on luxury travel and dental bills and repeatedly withdrew bulk cash. By mid-2020, almost all the initial $500,000 investment had been spent to enrich Frazier and Spencer and not for the agreed-upon purposes. Frazier used over $100,000 of the Head of Game money to purchase a house in Atlanta on a short sale and deposited the proceeds of the sale into one of his own accounts.
The evidence also showed that Frazier substantially underreported his income on his 2017, 2018, and 2019 tax returns. Specifically, he did not report income relating to drug proceeds and fraud proceeds from Head of Game.
Prior to trial but as part of the same indictment, Spencer also pleaded guilty to conspiracy to commit wire fraud, false statements on a loan application, and wire fraud for his involvement in submitting false loan materials under the Paycheck Protection Program and obtaining “Covid loan” money from the Small Business Administration based on those false representations.
This investigation is part of the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF is an independent component of the U.S. Department of Justice. Established in 1982, OCDETF is the centerpiece of the Attorney General’s strategy to combat transnational-organized-crime and to reduce the availability of illicit narcotics in the nation by using a prosecutor-led, multi-agency approach to enforcement. OCDETF leverages the resources and expertise of its partners in concentrated, coordinated, long-term enterprise investigations of transnational organized crime, money laundering, and major drug trafficking networks.
ATF, IRS-CI, and USPIS investigated the case along with the Talladega County Drug Task Force. Assistant United States Attorneys Allison Garnett, Blake Milner, and Austin Shutt prosecuted the case.
Tampa Man on Federal Supervised Release Pleads Guilty to Firearm and Narcotics OffensesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Benjamin Cedric Graddy (40, Tampa) has pleaded guilty to possessing with the intent to distribute dimethylpentylone and possessing a firearm in furtherance of a drug trafficking crime. Graddy faces a minimum mandatory penalty of five years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on March 17, 2023, officers from the Tampa Police Department observed a vehicle being driven by Graddy fail to stop at a stop sign at the intersection of 22nd Street North and 27th Avenue East in Ybor City. During the traffic stop, the officers smelled the odor of marijuana and observed white powder in plain view on the driver’s floorboard. A search of the vehicle revealed a Glock 22 .40 caliber firearm located in the vehicle’s center console. The officers also recovered a distribution amount of dimethylpentylone (67.56 grams) as well as N-ethylpentylone in two containers inside the vehicle.
At the time of the offense, Graddy was also on federal supervised release for a prior felon in possession of a firearm and ammunition conviction. He also had multiple prior felony convictions, including attempted felony murder, attempted robbery with a deadly weapon, attempted burglary of an occupied building and possession of a firearm by a convicted felon. As a convicted felon, Graddy is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation, the Tampa Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys David W.A. Chee and Diego F. Novaes.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Talladega County Man Sentenced to 20 Years in Prison on Child Pornography ChargesRead the Press Release
BIRMINGHAM, Ala. – A Sylacauga man was sentenced on child pornography charges, announced U.S. Attorney Prim F. Escalona and Acting FBI Special Agent in Charge James DeLoatch.
Chief U.S. District Court Judge R. David Proctor sentenced Lavon Paul Tarpley, 45, to 240 months in prison followed by 10 years of supervised release for distribution of child pornography. Tarpley pleaded guilty to the charge in November 2023.
According to the plea agreement, in December 2020, an FBI Online Covert Employee (OCE) who is a member of the FBI Child Exploitation and Human Trafficking Task Force in Albany, New York, was conducting an undercover operation involving the Kik messenger application. As part of the FBI’s operation, they discovered that Tarpley was an administrator of a specific group that was frequented by individuals who have a sexual interest in children, incest, and the production of child sexual abuse material. Tarpley distributed child pornography to members in this group. Additionally, on February 21, 2021, the National Center for Missing and Exploited Children (NCMEC) received a CyberTipline Report from Kik who reported Tarpley for uploading numerous files of child pornography on its application.
“The harms caused by child pornography are so extensive. Child pornography is a permanent record of a child’s horrific abuse and the continued circulation by individuals like Tarpley magnifies the harm to the child,” said U.S. Attorney Escalona. “Victims and their families live every day with the knowledge that this cycle of revictimization may never end due to individuals like Tarpley. Deterrence in these type cases is of utmost importance. Thanks to the collaborative efforts of our law enforcement partners in Alabama and Albany, New York, this predator has been held accountable for his actions.”
“There is an inherent risk to children anywhere the opportunity exists to communicate online. That’s why the FBI continues to be proactive in our efforts to protect them, casting a wide net over the various online applications and internet platforms where children are vulnerable,” said Acting Special Agent in Charge James DeLoatch. “Investigations like these demonstrate the outstanding work achieved in a collaborative environment with our law enforcement partners.”
The FBI Birmingham's Child Exploitation Human Trafficking Task Force investigated the case with the assistance of FBI Albany’s Child Exploitation and Human Trafficking Task Force, Alabama Law Enforcement Agency (ALEA), and Homewood Police Department. Assistant U.S. Attorney R. Leann White prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Summers County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – David Nelson Gill, 32, of Hinton, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on February 6, 2023, Gill was a passenger in a vehicle pulled over by law enforcement in St. Albans. Gill admitted to possessing a loaded Taurus Model PT111 9mm pistol found by officers during a search of the vehicle. Officers also found a loaded Remington Model 870 12-gauge shotgun on the vehicle’s rear passenger seat floor and approximately 3 grams of methamphetamine on Gill’s person following his arrest after the traffic stop.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Gill knew he was prohibited from possessing a firearm because of his prior felony conviction for grand larceny in Summers County Circuit Court on August 11, 2017.
Gill is scheduled to be sentenced on June 6, 2024, and faces a maximum penalty of 15 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the St. Albans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Jonathan T. Storage is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-75.
###
Speedway Agrees to Improve Processes to Ensure Refueling Assistance for Customers with DisabilitiesRead the Press Release
MINNEAPOLIS – The U.S. Attorney’s Office has reached a resolution with Speedway/7-Eleven, Inc. in response to allegations that Speedway failed to provide refueling assistance to customers with disabilities in violation of the Americans with Disabilities Act of 1990 (“ADA”) and related regulations, announced U.S. Attorney Andrew M. Luger.
“Speedway/7-Eleven has worked cooperatively to address this issue and promptly institute company-wide changes to ensure it is providing refueling assistance to individuals with disabilities as required by the ADA,” said U.S. Attorney Andrew M. Luger. “The U.S. Attorney’s Office is committed to enforcing the ADA and ensuring that individuals with disabilities are provided with reasonable accommodations.”
The resolution follows a civil rights complaint filed by an individual with disabilities alleging that Speedway failed on multiple occasions to provide refueling assistance to customers with disabilities in circumstances requiring such assistance.
As a result of the resolution, Speedway/7-Eleven is required to distribute information regarding refueling assistance requirements and company policy to all Speedway locations and employees nationwide; ensure that Speedway employees are promptly trained on the policy; ensure that telephone numbers and buttons located at or near fuel pumps contain accurate contact information for use by individuals seeking refueling assistance; implement new procedures to ensure that Speedway takes specific corrective action when it receives refueling assistance complaints; and pay $26,000 to compensate the individual complainant.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (833) 610-1264 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in the District of Minnesota is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 612-664-5600, or obtain information about how to file a complaint online by visiting www.ada.gov/file-a-complaint.
This matter was handled by Assistant U.S. Attorney Kristen E. Rau of the District of Minnesota in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Somerset County Man Caught with 760 grams of Fentanyl is Sentenced to 57 Months for Drug TraffickingRead the Press Release
BANGOR, Maine: A Somerset County man was sentenced today in U.S. District Court in Bangor for possession with intent to distribute fentanyl.
U.S. District Judge John A. Woodcock, Jr. sentenced Cody Mosher, 29, to 57 months in prison to be followed by four years of supervised release. Mosher pleaded guilty on September 1, 2023.
According to court records, in January 2023, Mosher led law enforcement on a high-speed chase through Norridgewock and Madison after deputies approached his vehicle and informed him they were executing a search warrant and arrest warrant. Once stopped, Mosher was placed under arrest and his vehicle searched. Investigators recovered approximately 760 grams of fentanyl, 21 grams of cocaine, a digital scale, and a substantial amount of cash from the vehicle. Fentanyl is a powerful synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine; just 2 mg of fentanyl is considered a potentially lethal dose.
The U.S. Drug Enforcement Administration (DEA) and the Somerset County Sheriff’s Office investigated the case with assistance from the Maine State Police.
###
Sinaloan Man Sentenced for 32 Pounds of MethamphetamineRead the Press Release
United States Attorney Susan Lehr announced that Jose Emmanuel Vaca-Saldana, 24, of Sinaloa, Mexico, was sentenced February 28, 2024, in federal court in Omaha, Nebraska for possession with intent to distribute methamphetamine. United States District Judge Brian C. Buescher sentenced Vaca-Saldana to 108 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 3-year term of supervised release.
On April 15, 2023, the Nebraska State Patrol stopped Vaca-Saldana for a traffic violation. Vaca-Saldana was with his wife, and he told troopers that they had flown out to Los Angeles for their honeymoon. Troopers became suspicious after hearing that the two flew to Los Angeles on April 13, and had rented the car the same day. Accounting for the time the two would have been driving from Los Angeles to reach Nebraska, they would not have been in Los Angeles very long. This behavior was consistent with drug smugglers. Troopers asked Vaca-Saldana for consent to search the vehicle, which he granted. During the search, 32 pounds of meth was located. Vaca-Saldana took responsibility for the meth.
This case was investigated by the Nebraska State Patrol.
Seminole Resident Sentenced for Escape from Federal CustodyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Coker Dean Barker, age 37, of Seminole, Oklahoma, was sentenced to 30 months in prison for Escape from Custody.
The charge arose from investigations by the United States Marshals Service and the Okmulgee County Criminal Justice Authority, with assistance from the Federal Bureau of Investigation, the Okmulgee County Sheriff’s Office, the Tulsa Police Department, the Rogers County Sheriff’s Office, and the Oklahoma Highway Patrol.
On November 7, 2022, Barker pleaded guilty to the charge. In November 2021, Barker and another inmate, Dustin Marris, escaped from federal custody at a detention center in Okmulgee. Both escapees were apprehended the next day as a result of a successful multi-agency manhunt. Marris was sentenced in February 2023 for his involvement in the escape.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Barker was remanded to the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Kevin Gross represented the United States at sentencing.
Selah Drug Distributor Who Sold Pound Quantities of Methamphetamine and Fentanyl in the Yakima Valley Sentenced to More than Eleven Years in Federal PrisonRead the Press Release
Yakima, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Ronald Lee Ralston Jr.,36, of Selah, Washington, was sentenced after pleading guilty to one count of Conspiracy to Distribute 500 Grams or More of Methamphetamine. United States District Judge Mary K. Dimke imposed a sentence of 138 months imprisonment to be followed by five years of supervised release.
According to court documents and information disclosed at sentencing, the FBI developed information that Ralston and another man, Jessie Lee Johnson, were distributing large amount of methamphetamine and fentanyl from Ralston’s home in Selah, Washington.
FBI Task Force members arranged for a confidential informant to set up a controlled buy at Ralston’s house. On May 4, 2023, the informant arrived at the home and tried to purchase methamphetamine from Ralston. However, Ralston said the methamphetamine he had on hand was spoken for and not for sale. While no sale took place that day, Ralston and Johnson were captured on video discussing future drug sales.
On May 16, the informant returned to Ralston’s home and purchased one pound of methamphetamine and 100 pills of fentanyl from Ralston and Johnson for $2,000. Ralston also told the informant he could get any amount of methamphetamine and fentanyl with 24-hour notice.
A search warrant was executed on June 7, 2023 at Ralston’s residence. In Ralston’s trailer, located on the property, law enforcement seized 1.5 pounds of methamphetamine, other controlled substances, and two firearms. In the main residence, law enforcement officers seized another firearm and an additional half-pound of methamphetamine.
Ralston and Johnston pleaded guilty to one count of Conspiracy to Distribute 500 Grams or More of Methamphetamine on November 28, 2023. Johnson is scheduled to be sentenced on March 12, 2024.
“The FBI’s Drug Task Force identified Mr. Ralston and Mr. Johnson as major sources of dangerous drugs in Eastern Washington. I’m grateful for the quick work of Task Force Officers to shut down this drug operation,” said U.S. Attorney Waldref. “My office is committed to fighting the drug epidemic by aggressively stopping the supply of illegal narcotics in our communities.”
“It is heartbreaking to see how these poisons destroy lives, relationships, and communities in Washington and across the United States," said Richard A. Collodi, Special Agent in Charge of the FBI Seattle field office. “The sentence in this case represents the significance the FBI, our federal, state, and local partners, and prosecutors place on saving lives through the removal of illicit drugs from our communities and holding those accountable who are responsible for their distribution. We are fighting back every time to take drugs off the streets.”
This case was investigated by the Federal Bureau of Investigation, Yakima County Sheriff’s Office, Customs and Border Protection and the Selah Police Department. This case was prosecuted by Assistant United States Attorney Todd Swenson.
Rockford Skilled Therapy Provider to Pay $1.5 Million to Settle Federal Health Care Fraud SuitRead the Press Release
CHICAGO — A Rockford, Ill.-based skilled therapy provider and its current and former owners have agreed to pay $1.5 million to resolve civil allegations that the company violated the False Claims Act by falsely submitting claims to Medicare for purported physical and occupational therapy.
Settlements and consent judgments resolve allegations that BRYNWOOD MYOFASCIAL THERAPY LLC, its current owner, MALGORZATA ZASADNY, and its former owner, MARLA MONGE, fraudulently billed Medicare for (1) therapy services when the provider was actually out of the country, (2) physical therapy or occupational therapy when the services were performed by massage therapists rather than licensed physical or occupational therapists, (3) services performed by an occupational therapy assistant or physical therapy assistant when they were not properly supervised, (4) therapy services under improper codes to avoid caps on certain services, and (5) occupational and physical therapy when there were no licensed occupational therapist or physical therapist on site.
The settlements and consent judgments resolve a civil lawsuit filed in U.S. District Court in Chicago by a former employee of Brynwood Myofascial Therapy under the qui tam, or whistleblower, provisions of the False Claims Act. The False Claims Act permits private citizens to bring lawsuits on behalf of the United States for false claims, and to share in any recovery. The United States intervened in the lawsuit prior to the settlements and consent judgments.
As part of a settlement agreement and consent order entered by U.S. District Chief Judge Rebecca R. Pallmeyer, Brynwood Myofascial Therapy and Zasadny agreed to pay $953,959, while Monge agreed to pay $615,345. The public is reminded that civil allegations are accusations only, and there was no determination of liability as part of the settlements and consent judgments.
The settlements and consent judgments were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Mario Pinto, Special Agent-in-Charge of the Chicago Division of the U.S. Department of Health and Human Services, Office of Inspector General, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The government was represented by Assistant U.S. Attorney Valerie R. Raedy.
Brynwood Myofascial Therapy order on consent judgmentRhode Island Man Pleads Guilty to Role in Southeastern Massachusetts Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Rhode Island man pleaded guilty yesterday to his involvement in a drug trafficking organization (DTO) that distributed fentanyl throughout Southeastern Massachusetts and Rhode Island.
Alfredo Valdez, 46, of Providence, R.I. pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for May 21, 2024. Valdez was one of 10 individuals indicted by a federal grand jury in August 2022 in connection with the conspiracy.
In March 2021, an investigation began into a DTO operating in Southeastern Massachusetts and Rhode Island led by Estarlin Ortiz-Alcantara. Intercepted communications on numerous cellphones identified Valdez as a member of the DTO who conspired with Ortiz-Alcantara to regularly distribute multi-kilograms of fentanyl from a base of operations at a stash house in Fall River. During a search of the stash house in July 2022, Valdez was found inside the apartment along with more than 12 kilograms of fentanyl stored in various ceiling panels, blenders, a hydraulic press and baggies.
Valdez is the eighth defendant to plead guilty in the case. Ortiz-Alcantara pleaded guilty in December 2023 and is scheduled to be sentenced on July 9, 2024.
The charge of conspiracy to distribute and to possess with intent to distribute fentanyl provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; New Bedford Police Chief Paul Oliveira; and Fairhaven Police Chief Michael J. Myers made the announcement today. Valuable assistance was provided by the Massachusetts State Police; Homeland Security Investigations; Bristol County Sherriff’s Office; and Fall River, Taunton, Attleboro, Scituate, Yarmouth, Providence (R.I.) and West Warwick (R.I.) Police Departments. Assistant U.S. Attorney John T. Mulcahy of the Narcotics & Money Laundering Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.The details contained in the charging documents are allegations. The remaining defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Randa Allison Sentenced to 14 Months in Prison for COVID-19 Unemployment Insurance Fraud SchemeRead the Press Release
CHATTANOOGA, Tenn. - On February 28, 2024, Randa Allison, 29, of Stevenson, Alabama, was sentenced to 14 months’ imprisonment after being convicted of mail fraud involving a scheme to defraud COVID-19 unemployment programs in several states. Allison was sentenced by the Honorable Curtis L. Collier, in the United States District Court for the Eastern District of Tennessee at Chattanooga. Following her incarceration, she will be on five years of supervised release. In addition, she was ordered to pay $120,025 in restitution to the Pennsylvania and Alabama Departments of Labor, and to forfeit to the United States $100,225 as part of a money judgment.
As part of the filed plea agreement with the court, Allison pled guilty to Conspiracy to Commit Wire Fraud and Mail Fraud, in violation of Title 18, United States Code, Section 1349.
According to court documents, from June 2020 through June 2021, Allison conspired with others to devise a scheme in which she defrauded the United States government and the governments of Tennessee, Alabama, Pennsylvania, and California to obtain money from the states’ COVID relief programs in the form of unemployment insurance proceeds funded by the United States government. Specifically, Allison acquired personal information from others and used it to fraudulently make mass online applications for money earmarked by the states to provide unemployment insurance relief for those affected by the national pandemic. She falsely claimed in the applications that the individuals whose personal information was reflected on the applications worked in those states. The states then mailed debit cards to addresses in the Eastern District of Tennessee, and Allison would receive a percentage of the payout of the fraudulent claim. The defendant was personally responsible for the fraudulent distribution of over $120,000 of unemployment protection insurance funds. The scheme itself involved the fraudulent distribution of over $550,000 in unemployment protection insurance funds.
“As if the pandemic were not traumatic enough for our communities, fraudsters like the defendant callously took advantage of the crisis to obtain a financial windfall,” said United States Attorney Francis M. Hamilton, III. “We will continue to work with our partners at every level of law enforcement to pursue and prosecute criminals who used the crisis for fraudulent personal gain.”
“Randa Faye Allison and her co-conspirators filed fraudulent Unemployment Insurance (UI) claims with multiple state workforce agencies, enriching themselves by defrauding a program intended to assist struggling American workers during an unprecedented global pandemic,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General. “We will continue to work with our law enforcement partners to protect the integrity of the UI system from those who exploit these benefit programs.”
“The FBI takes very seriously our responsibility to investigate and pursue those who commit fraud for personal gain. Along with our federal, state, and local law enforcement partners, we will continue to aggressively investigate those who lined their pockets with money intended to help struggling businesses and workers as a result of the COVID pandemic,” said Special Agent in Charge Joseph E. Carrico, of the Federal Bureau of Investigation (FBI).
Assistant United States Attorney Steven Neff represents the United States.
The investigation was conducted by the Department of Labor Office of Inspector General and the FBI as part of the Smoky Mountains Financial Crimes Task Force.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across the government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
###Previously Convicted Felon from McKeesport Sentenced to Four Years in Prison for Possession of Firearm and AmmunitionRead the Press Release
PITTSBURGH, Pa. - A resident of McKeesport, Pennsylvania, has been sentenced in federal court to 48 months of incarceration, to be followed by three years of supervised release, on his conviction of possession of a firearm and ammunition by a convicted felon, United States Attorney Eric G. Olshan announced today.
United States District Judge J. Nicholas Ranjan imposed the sentence on Rashawn Walker, 32.
According to information presented to the Court, on December 28, 2021, at approximately 3:00 p.m., Walker threatened to shoot up the location of his girlfriend. About two hours later, he physically assaulted and pulled a gun on another woman. Almost immediately after this second incident, the defendant was stopped by police and found in possession of a Glock pistol, with a round in the chamber, and a 24-round extended magazine. In connection with the sentencing hearing, the Court also received evidence of the defendant’s ongoing possession of firearms on other occasions. Federal law prohibits possession of a firearm or ammunition by a convicted felon.
In imposing the sentence, Judge Ranjan noted that the defendant’s threatening conduct and ongoing possession of firearms warranted a sentence above the advisory sentencing guidelines range.
Assistant United States Attorney Douglas C. Maloney prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation leading to the successful prosecution of Walker.
Philadelphia Man Sentenced for Role in a Multi-State Drug EnterpriseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dominic Asquith, age 39, of Philadelphia, Pennsylvania, was sentenced to 105 months in federal prison for his role in a drug racketeering enterprise that had reach into Pennsylvania, Maryland, West Virginia, and Delaware.
According to court documents and statements made in court, Asquith worked for a multi-state organized drug trafficking business dubbed the “19th Street Enterprise.” During the investigation, Asquith was arrested in Maryland on the property of a home that the enterprise targeted for a robbery. He was found with a backpack containing rope, a mask, and two cell phone jamming devices used to disable cell phones.
The Philadelphia-based enterprise sold drugs, committed acts of violence, laundered money, and committed fraud.
Asquith will be required to be on three years of supervised release following his prison sentence.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the cases on behalf of the government.
The Federal Bureau of Investigation; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated. The Eastern District of Pennsylvania U.S. Attorney’s Office and the Kent County Sheriff’s Office assisted.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. District Judge Gina M. Groh presided.
###
Pharmacy Owner and Operations Manager Convicted of $2.3M Ohio Medicaid FraudRead the Press Release
A federal jury convicted an Ohio pharmacist and his operations manager, a pharmacy technician, yesterday for conspiring to defraud Ohio’s Medicaid program.
According to court documents and evidence presented at trial, Nathanael Thompson, 45, of Westerville, owned four pharmacies in Columbus, Ohio. Sanam Ahmad, 34, of Galena, managed the pharmacies. Thompson and Ahmad conspired to charge Medicaid for a particular manufacturer’s omeprazole, a type of proton pump inhibitor, which was reimbursable at a significantly higher rate than most omeprazole. In reality, the dispensed medication was generic omeprazole purchased at big-box warehouse retail stores. In addition, to maximize profits, Thompson’s pharmacies put in place certain protocols to dispense omeprazole as though a doctor had prescribed the drug even when there was no prescription.
The jury convicted Thompson and Ahmad of one count of conspiracy to commit health care fraud and two counts of defrauding Medicaid. They face a maximum penalty of 10 years in prison on the conspiracy charge and each health care fraud charge. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Kenneth L. Parker for the Southern District of Ohio, Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration (DEA) Detroit Division, Acting Special Agent in Charge Cheryl Mimura of the FBI Cincinnati Field Office, Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Region, Special Agent in Charge Jeff Krafels of the U.S. Postal Service Office of Inspector General (USPS-OIG) Mid-Atlantic Area Field Office, Ohio Attorney General Dave Yost, and Director Steven W. Schierholt of the State of Ohio Board of Pharmacy Executive made the announcement.
The DEA, FBI, HHS-OIG, USPS-OIG, Ohio Medicaid Fraud Control Unit, and the State of Ohio Board of Pharmacy investigated the case.
Trial Attorneys Kathryn Furtado and Leslie Fisher of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Omaha Man Sentenced to 1 ½ Years’ Imprisonment for Gun ChargeRead the Press Release
United States Attorney Susan Lehr announced that Shawn David Johnson, 40, of Omaha, Nebraska, was sentenced February 28, 2024, in federal court in Omaha for being a felon in possession of a firearm. United States District Court Judge Brian C. Buescher sentenced Johnson to 18 months’ imprisonment. There is no parole in the federal system. After Johnson’s release from prison, he will begin a 2-year term of supervised release.
On February 1, 2022, a cooperating witness working with law enforcement purchased a 9mm handgun with a 6-round capacity magazine from Johnson inside of his Omaha residence. At the time, Johnson was a convicted felon. Law enforcement has since determined that the handgun had been shipped in interstate commerce prior to the transaction.
This case was investigated by the Bureau of Alcohol, Tobacco and Firearms.
Omaha Man Sentenced for Distribution Amounts of MethamphetamineRead the Press Release
United States Attorney Susan Lehr announced that Matthew Frederick Strohl, of Omaha, Nebraska was sentenced February 28, 2024, in federal court in Omaha for possession with intent to distribute methamphetamine. United States District Judge Brian C. Buescher sentenced Strohl to 150 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release.
On April 22, 2022, the Omaha Police Department stopped Strohl for a traffic violation. During the traffic stop, officers found Strohl in possession of a meth pipe and small amounts of narcotics. Officers believed that Strohl had more narcotics located in his apartment, which was located in Sarpy County. With the assistance of the Sarpy County Sheriff’s Office, Strohl’s apartment was searched. Inside, nine different types of narcotics were located, including 69 grams of meth, hydrocodone, Adderall, Xanax, cocaine, and psychedelic mushrooms.
Strohl’s prior criminal history was taken into consideration when being sentenced. In 2009, Strohl was sentenced in an Omaha federal court to 120 months for drug and firearm charges.
This case was investigated by the Omaha Police Department and Sarpy County Sheriff’s Office.
Ohkay Owingeh Man Pleads Guilty to Sexual AbuseRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Dwayne Calvert pleaded guilty in federal court to sexual abuse. Calvert, 34, an enrolled member of Pueblo of Ohkay Owingeh, will remain in custody pending sentencing, which has not yet been scheduled.
According to publicly available court records, on July 2, 2022, Calvert spent the night in the living room of a friend’s home on the Pueblo of Ohkay Owingeh. Jane Doe was also asleep in that living room. Knowing that Jane Doe was passed out and unable to provide her consent to sexual intercourse, Calvert vaginally penetrated Jane Doe. When the homeowners confronted Calvert during the rape, Calvert fled the home.
At sentencing, Calvert faces five years in prison. Upon his release from prison, Calvert will be subject to a minimum of five years and up to a lifetime term of supervised release and must register as a sex offender.
This case was investigated by the Bureau of Indian Affairs Office of Justice Services. Assistant United States Attorney Zachary Jones is prosecuting the case.
# # #
24-86
Missouri Man Indicted for Travelling to Louisiana to Engage in Illicit Sexual Conduct with Twelve-Year-Old FemaleRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ERIC CHARLES FULLER, age 54, from Springfield, Missouri, was indicted on February 23, 2024 for attempted coercion and enticement of a minor, in violation of Title 18, United States Code, Section 2422(b) (Count 1), and interstate travel with intent to engage in illicit sexual conduct, in violation of Title 18, United States Code, Section 2423(b) (Count 2).
According to the indictment, between on or about December 7, 2023, and January 12, 2024, FULLER attempted to persuade and entice an individual he believed to be a twelve-year-old female to engage in illegal and illicit sexual activity. Between January 11, 2024, and January 12, 2024, FULLER travelled from Springfield, Missouri, to Mandeville, Louisiana, by automobile for the purpose of engaging in sexual conduct with the individual FULLER believed to be a twelve-year-old female.
If convicted, FULLER faces a mandatory minimum of ten (10) years in prison up to life in prison as to Count 1 and a maximum term of imprisonment of not more than thirty (30) years as to Count 2. As to each count, FULLER also faces at least five (5) years and up to a lifetime of supervised release, up to a $250,000 fine and a $100 mandatory special assessment fee. FULLER may also be required to register as a sex offender.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
Missouri Man Admits Setting Fires that Burned 220 AcresRead the Press Release
CAPE GIRARDEAU – A man from Poplar Bluff, Missouri on Tuesday admitted setting fires that burned 220 acres of U.S. Forest Service and private land in 2022 and agreed to repay $66,000.
Adam D. Gambling, 44, pleaded guilty in U.S. District Court in Cape Girardeau to one felony count of setting fires on public land. He admitted setting a series of fires on Nov. 8, 2022, near Beaver Lake in the Mark Twain National Forest in Butler County. Those fires burned a total of 220.68 acres, of which 95.3 acres were privately owned.
After an investigation, the U.S. Forest Service developed Gambling as a suspect. During a voluntary interview at his home, Gambling admitted that he had started the fires.
He is scheduled to be sentenced May 24. The charge carries a penalty of up to five years in prison, a $250,000 fine or both prison and a fine. Gambling also agreed to pay $66,094 in restitution to the U.S. Forest Service for the cost of fighting the fires.
The U.S. Forest Service investigated the case. Assistant U.S. Attorney Christopher Shelton is prosecuting the case.
Merriam Woods Man Sentenced for Illegal Firearms After Shooting at Police During High-Speed ChaseRead the Press Release
SPRINGFIELD, Mo. – A Merriam Woods, Mo., man who shot at a police officer during a high-speed pursuit has been sentenced in federal court in two separate cases for illegally possessing firearms.
Blake Christopher Basten, 34, was sentenced on Tuesday, Feb. 27, by U.S. District Judge Brian C. Wimes to 10 years in federal prison without parole.
On Feb. 21, 2023, Basten pleaded guilty to being a felon in possession of a firearm in two separate and unrelated cases.
The first case began when Springfield police officers executed a search warrant at another defendant’s residence on June 29, 2022. While conducting surveillance on the residence, a vehicle in which Basten was a passenger pulled up to the residence. Officers searched Basten and found a loaded Kel-Tec pistol in his waistband. Basten told investigators that he traded drugs for the handgun, which he carried because he had recently been shot at.
The second case began when a Springfield police officer attempted to conduct a traffic stop on a black Nissan Sentra, in which Basten was a passenger, on Aug. 18, 2022. When the officer pulled behind the Sentra in a hotel parking lot and activated his lights, the driver put the car in reverse and rammed the officer’s vehicle, pushing it back several feet. The officer got out of his vehicle, pulled his duty weapon, and ordered the vehicle’s occupants to stop. The driver instead drove forward slightly, then put his Sentra in reverse and rammed the officer’s car again before fleeing the parking lot.
A police pursuit ensued, with the Sentra travelling at a high rate of speed in a residential neighborhood. The pursuit ended when the Sentra crashed into a Jeep SUV at an intersection. While the Jeep suffered significant damage, the innocent driver appeared to be unharmed. The rear end of the Jeep had heavy damage, the rear passenger tire was missing, and the airbags had been deployed. Basten fled from the crash on foot.
Officers searched the vehicle and found two handguns on the front passenger side floorboard – a Smith & Wesson pistol, and a loaded Taurus pistol. The Smith & Wesson had no ammunition, and the slide was locked back, which was either because the slide was locked back manually or after all of the ammunition was fired. Witnesses reported that Basten was seen shooting a gun during the pursuit.
Shortly after the crash, Basten was found hiding under a car and arrested by deputies with the Greene County Sheriff’s Office. One witness provided surveillance video that showed the Sentra travelling at a high rate of speed, followed by four audible gunshots. Shell casings and damage from gunfire were located throughout the neighborhood.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearms or ammunition. At the time of his arrest, Basten was on parole for involuntary manslaughter after he threatened his ex-girlfriend with a firearm, and then engaged in a high-speed chase where he pursued her in his vehicle and caused the death of an innocent bystander. Basten, who fled from police in a stolen vehicle after that incident, has eight prior felony convictions.
These cases were prosecuted by Assistant U.S. Attorney Stephanie L. Wan. They were investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Greene County, Mo., Sheriff’s Department, and the Springfield, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Meridian Man Sentenced to 7 Years in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Meridian man was sentenced to 84 months in prison for possession of a firearm by a convicted felon.
According to court documents and admissions in open court, Jacquis LaShawn Houston, 27, was found in possession of a firearm by a Lauderdale County Sheriff’s Office deputy on March 16, 2020, during a traffic stop on a vehicle in which Houston was riding as a passenger. Houston threw a 9mm caliber pistol from the vehicle. As a convicted felon, it is contrary to federal law for Houston to possess any firearm.
U.S. Attorney Todd W. Gee and Special Agent in Charge Joshua Jackson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives made the announcement.
The Lauderdale County Sheriff’s Office and the ATF investigated the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
McAlester Resident Sentenced for Child Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Paula Amber Chisholm, age 38, of McAlester, Oklahoma, was sentenced to 48 months in prison for Child Abuse in Indian Country.
The charges arose from investigations by the McAlester Police Department and the Federal Bureau of Investigation.
On January 12, 2023, Chisholm was found guilty by a federal jury of one count of Child Abuse in Indian Country. According to investigators, on December 3, 2019, a five-year-old child was rushed to the hospital after school officials became concerned about the child’s physical state and demeanor. During a medical evaluation it was revealed the child had multiple wounds, abrasions, and bruises and was extremely malnourished. Chisholm was the primary caregiver at the time the abuse occurred. The crime occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing. Chisholm was remanded to the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Morgan Muzljakovich represented the United States.
Massachusetts Businessman Sentenced to Prison for Million Dollar Payroll Tax Fraud SchemeRead the Press Release
BOSTON – A Melrose man was sentenced yesterday for a decade-long tax fraud scheme in which he failed to pay employment taxes he withheld from employees of his two businesses.
Stephen Schofield, 70, was sentenced by U.S. District Judge Denise J. Casper to nine months in prison to be followed by two years of supervised release. Schofield was also ordered to pay a fine of $7,500 and restitution of $1,051,000 to the Internal Revenue Service. In October 2023, Schofield pleaded guilty to one count of failure to pay over taxes.
Schofield operated and controlled two businesses – Schofield Concrete Forms in Stoneham, and Schofields of Melrose, Inc. located in Melrose. For tax years 2010 through 2020, Schofield withheld federal and state employment taxes from his employees’ wages and issued W-2 forms to the employees showing that the taxes had been withheld. However, Schofield did not pay over those taxes to the IRS as required by federal law, resulting in a federal tax loss of approximately $1,051,000. Although Schofield did not file corporate or individual tax returns for 10 years, the IRS investigation showed that Schofield used company funds to pay $612,000 to himself and $344,000 to a family member who was not a company employee. He also paid for other personal expenses including travel, jewelry, restaurants, boating supplies and opening a Fidelity investment account.
Acting United States Attorney Joshua S. Levy and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service Criminal Investigation, Boston Field Office made the announcement today. Assistant U.S. Attorney Victor A. Wild of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Marion County Man Sentenced for Federal Drug ChargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Cedric Pierre Young, age 33, of Fairmont, West Virginia, was sentenced to 78 months in federal prison to be followed by six years of supervised release for heroin and fentanyl trafficking.
According to court documents and statements made in court, Young, also known as “Billy,” sold heroin and fentanyl near Fifth Street Park playground and the Marion County Adult and Community Education Center, both in Marion County. Investigators searched several properties connected to Young, finding nearly 245 grams of fentanyl and cash.
Assistant U.S. Attorney Brandon Flower prosecuted the case on behalf of the government.
The Three Rivers Drug Task Force investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Marion County Man Pleads Guilty to Production of Child Sex Abuse MaterialRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Matthew Allen Gahan (24, Summerfield) has pleaded guilty to one count of producing child sex abuse material and one count of possessing child sex abuse material. Gahan faces a minimum mandatory term of 15 years, up to 40 years, in federal prison. A sentencing date has not yet been set.
According to court records, on May 13 and continuing through May 25, 2023, Gahan spoke with a minor outside of the United States. Gahan coerced the minor to participate in video calls in which the minor engaged in sexual activity at Gahan’s direction. Gahan recorded these calls without the minor’s knowledge. On September 13, 2023, the FBI searched Gahan’s home pursuant to a federal search warrant and found multiple videos and images portraying the sexual abuse of young boys. Gahan also used the dark web to distribute and receive child sex abuse material.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Hannah Nowalk.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man Arrested for Making Threats to Arizona Election OfficeRead the Press Release
An Alabama man was arrested today in Cullman, Alabama, for allegedly sending threatening messages to election workers with Maricopa County Elections in Phoenix.
Brian Jerry Ogstad, 59, of Cullman, made his initial appearance today at the federal courthouse in Huntsville.
“As alleged in the indictment, Brian Ogstad sent threatening messages to a social media account maintained by the Maricopa County Elections office. After referencing claims of voter fraud in Arizona’s 2022 gubernatorial race, Ogstad allegedly made a number of threats to election workers and officials, including that they were ‘dead’ and ‘stupid if you think your lives are safe,’” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Public servants who administer our elections — the cornerstone of our democracy — must be able to do their jobs without fear. The Criminal Division will continue to aggressively investigate and prosecute those who target election officials and workers with threats of violence.”
According to an indictment unsealed today, on or about Aug. 2, 2022, Arizona held primary elections for federal and state officeholders, including a gubernatorial primary election that received nationwide media coverage. From the day of the election through on or about Aug. 4, 2022, Ogstad allegedly sent multiple threatening direct messages to an Instagram social media account maintained by Maricopa County Elections. For instance, on or about Aug. 3, 2022, Ogstad allegedly stated (1) “You did it! Now you are [expletive]. Dead. You will all be executed for your crimes”; (2) “[expletive] you! You are caught! They have it all. You [expletive] are dead”; (3) “You are lying, cheating [expletive] . . . you better not come in my church, my business or send your kids to my school. You are [expletive] stupid if you think your lives are safe”; and (4) “You [expletive] are so dead.” On or about Aug. 4, 2022, Ogstad also allegedly stated “[Y]ou people are so ducking [sic] stupid. Everyone knows you are lots [sic], cheats, frauds and in doing so in relation to elections have committed treason. You will all be executed. Bang [expletive]!”
“We cannot permit election skeptics to threaten vigilante justice,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “We will continue to prosecute true threats against Arizona’s election officials and other public servants, including direct messages sent on social media, or communications in any other format.”
“The FBI takes all threats of violence seriously,” said Special Agent in Charge Akil Davis of the FBI Phoenix Field Office. “The work of election officials, their staffs, and volunteers is essential to our democracy and any threat to these public servants is completely unacceptable. The FBI remains vigilant in our efforts to detect and assess possible threats and, as always, we encourage the public to promptly report suspicious activities which could represent a threat to public safety.”
Ogstad is charged with five counts of communicating an interstate threat. If convicted, Ogstad faces a maximum penalty of five years in prison on each count.
The FBI Phoenix Field Office is investigating the case, with substantial assistance from the FBI Birmingham Field Office.
Trial Attorney Tanya Senanayake of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Mary Sue Feldmeier for the District of Arizona are prosecuting the case.
This case is part of the Justice Department’s Election Threats Task Force. Announced by Attorney General Merrick B. Garland and launched by Deputy Attorney General Lisa Monaco in June 2021, the task force has led the department’s efforts to address threats of violence against election workers, and to ensure that all election workers – whether elected, appointed, or volunteer – are able to do their jobs free from threats and intimidation. The task force engages with the election community and state and local law enforcement to assess allegations and reports of threats against election workers, and has investigated and prosecuted these matters where appropriate, in partnership with FBI Field Offices and U.S. Attorneys’ Offices throughout the country. Over two years after its formation, the task force is continuing this work and supporting the U.S. Attorneys’ Offices and FBI Field Offices nationwide as they carry on the critical work that the task force has begun.
Under the leadership of Deputy Attorney General Monaco, the task force is led by the Criminal Division’s Public Integrity Section and includes several other entities within the Justice Department, including the Criminal Division’s Computer Crime and Intellectual Property Section, Civil Rights Division, National Security Division, and FBI, as well as key interagency partners, such as the Department of Homeland Security and the U.S. Postal Inspection Service. For more information regarding the Justice Department’s efforts to combat threats against election workers, read the Deputy Attorney General’s memo.
To report suspected threats or violent acts, contact your local FBI office and request to speak with the Election Crimes Coordinator. Contact information for every FBI field office may be found at www.fbi.gov/contact-us/field-offices/. You may also contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. Complaints submitted will be reviewed by the task force and referred for investigation or response accordingly. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
IndictmentMS-13 Gang Member Sentenced in Connection with 2016 Fairfax MurderRead the Press Release
ALEXANDRIA, Va. – A Salvadoran member of the transnational street gang La Mara Salvatrucha, or MS-13, was sentenced today to 25 years in prison in connection with the kidnapping and murder of an adolescent boy in 2016.
According to court documents, Edwin Orellana Caballero, who was 16 years old and living in Alexandria at the time, was one of several members and associates of the Park View Locos Salvatrucha clique of MS-13 who kidnapped and killed a 14-year-old victim, S.A.A.T. On the night of September 26, 2016, the gang lured S.A.A.T. to Holmes Run Stream Valley Park in Fairfax County and murdered him in a wooded area there with knives, machetes, and a pickaxe. Orellana Caballero struck S.A.A.T. multiple times with the pickaxe. Once S.A.A.T. was dead, the gang buried him in a shallow grave.
Orellana Caballero, who was transferred for prosecution as an adult under the Juvenile Justice and Delinquency Prevention Act, pleaded guilty to one count of maiming in aid of racketeering activity. In so doing, he admitted to participating in S.A.A.T.’s murder for the purpose of maintaining and increasing his position in MS-13.
To date, a total of 17 defendants have been charged in this case. Of those, five defendants went to trial and were convicted of all charges. Ten defendants pleaded guilty prior to trial.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; David J. Scott, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Rossie D. Alston Jr.
The U.S. Immigration and Customs Enforcement Washington Field Office, U.S. Marshals Service, Alexandria Police Department, Prince William County Police Department, Montgomery County (MD) Police Department, and Marin County (CA) Sheriff’s Office provided significant assistance in the investigation.
Assistant U.S. Attorneys Alexander E. Blanchard and Cristina C. Stam prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-153.
Local Non-Profit Director Charged in Pernicious “Deed Fraud” Scheme Targeting Low Income DetroitersRead the Press Release
DETROIT – Zina Thomas, 60, of Detroit was charged in a criminal complaint filed in United States District Court for her role orchestrating a fraud scheme that stole houses from dozens of Detroit residents, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Special Agent-in-Charge Cheyvoryea Gibson, Federal Bureau of Investigation; Special Agent-in-Charge Machelle L. Jindra, Department of Housing and Urban Development Office of Inspector General; Detroit Police Chief James E. White; and Wayne County Register of Deeds Bernard J. Youngblood.
The complaint charges Thomas with conspiracy to commit wire fraud, wire fraud, money laundering, and aggravated identity theft. Thomas was arrested today.
According to the complaint, Thomas, while serving as the Director of Homeownership Programs for the United Community Housing Coalition (UCHC), conspired with other individuals to steal over 30 properties across Wayne County, predominately located in the City of Detroit. The complaint alleges that Thomas and others perpetrated a scheme to defraud by filing multiple fraudulent quitclaim deeds, frequently transferring the target properties from the victim-owners to non-existent “interim owners” before ultimately selling the properties to unwitting third parties. It is also alleged that these fraudulent deeds were falsely notarized by Thomas or another person, which made them appear legitimate and thus enabled them to be filed with the Register of Deeds. The complaint also alleges that Thomas emailed a Wayne County Treasurer’s Office employee fake driver’s licenses and other documents, which were then uploaded into the Treasurer’s Property Tax Administration system to halt pending foreclosures. According to the complaint, Thomas received payment for at least some of the properties via wire transfer into a bank account in the name of her realty company, and Thomas then transferred proceeds from that account to her personal bank account. And the scheme targeted low-income individuals who were facing potential tax foreclosure. According to the complaint, Thomas currently resides in one of the properties involved in the scheme.
The United Community Housing Coalition (UCHC), is a 501(c)(3) nonprofit organization providing housing assistance to Detroit’s low-income residents. The UCHC and its executive leadership cooperated with the investigation.
United States Attorney Ison stated, “This scheme targeted some of our most financially vulnerable citizens and was perpetrated by an individual whose job it was to help those very people avoid losing their homes to foreclosure. This arrest is the result of a multi-agency, cooperative investigation involving both federal and state law enforcement, and is reflective of our ongoing efforts to identify and disrupt fraud schemes like this as quickly as possible.”
“While working in a capacity to provide assistance to residents experiencing financial hardships, Ms. Thomas allegedly exploited individuals in the process of losing their homes,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. "The FBI and its law enforcement partners will continue to investigate these reprehensible acts of fraud.”
“Thomas allegedly abused her position to help fraudulently sell properties facing tax foreclosure for her own personal gain,” said Special Agent-in-Charge Machelle Jindra with the U.S. Department of Housing and Urban Development Office of Inspector General. “HUD OIG will continue to work with its law enforcement partners to bring bad actors to justice and protect the integrity of HUD housing programs.”
“I want to thank U.S. Attorney Dawn N. Ison for her continued collaboration to ensure that those who victimize Detroit residents face the fullest consequences of the law,” said Detroit Police Chief James E. White. “The DPD remains committed to addressing all aspects of crime and working with our partners across law enforcement to keep Detroiters safe.”
“A rash of incoming complaints to my Deed Fraud Task Force, followed with methodical investigative teamwork, culminated in today’s announcement,” said Wayne County Register of Deeds Bernard J. Youngblood. “Wayne County is the national leader in combating this new crimewave and we are proud to partner with local, state and federal law enforcement to protect the property rights of our citizens.”
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment.
This case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development Office of the Inspector General, and the Detroit Police Department. Significant investigative assistance was provided by the Wayne County Register of Deeds’ Mortgage & Deed Fraud Unit. The case is being prosecuted by Assistant United States Attorney Ryan A. Particka.
Licensed Big Game Outfitter and Licensed Big Game Guide from Challis Indicted for Violating the Lacey ActRead the Press Release
POCATELLO – A federal grand jury sitting in Pocatello returned a six-count indictment on February 27, 2024, charging Jerrod Randall Farr, 52, and Michael Timothy Scott, 67, both of Challis, with Lacy Act violations, U.S. Attorney Josh Hurwit announced today.
Farr, a licensed outfitter (White Cloud Outfitters) and licensed guide, was indicted on five counts: two counts of Lacy Act violations, two counts of providing false or fictitious information to a Forest Service officer, and one count of conducting work activity without a special-use authorization. Scott, a former licensed outfitter (White Cloud Outfitters) and current licensed guide, was indicted on two counts of Lacey Act violations.
According to court records, the six-count indictment returned yesterday alleges that on two occasions (once in 2020, and once in 2022), Farr, owner and outfitter for White Cloud Outfitters, sold and facilitated Rocky Mountain Big Horn Sheep hunts that occurred in an area of the Salmon-Challis National Forest that is closed to commercial guiding, and Scott, as a guide for White Cloud Outfitters, illegally guided those hunts. The indictment further alleges that Farr submitted a mandatory outfitter report to account for all White Cloud Outfitter activity on the National Forest in 2020, and falsely omitted information regarding the 2020, Rocky Mountain Big Horn Sheep hunt. The indictment also alleges that on one occasion in 2022, Farr, as outfitter and guide, facilitated and guided a donated mountain lion hunt that involved releasing hunting hounds in the same area of the Salmon-Challis National Forest that is closed to commercial guiding. Farr submitted a mandatory outfitter report to account for all White Cloud Outfitter activity on the National Forest in 2022, and falsely omitted information regarding the 2022, donated mountain lion hunt.
Farr and Scott are both scheduled for their initial court appearances on March 21, 2024, before U.S. Magistrate Judge Deborah K. Grasham. Two of the alleged Lacey violations are punishable by up to 5 years in federal prison, a maximum fine of $250,000, and up to 1 year of supervised release. One of the alleged Lacey Act violations is punishable by up to 1 year in federal prison, a maximum fine of $100,000, and up to 1 year of supervised release. Providing false or fictitious information to a Forest Service officer is punishable by up to 6 months in federal prison and a maximum fine of $5,000. Conducting work activity without a special-use authorization is punishable by up to 6 months in federal prison and a maximum fine of $5,000. If convicted, a federal district court judge will determine any sentence for the defendants after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Hurwit commended the work of the United States Fish and Wildlife Service Office of Law Enforcement, United States Forest Service, and the Idaho Department of Fish and Game, which led to the charges. Assistant U.S. Attorney Justin Paskett is prosecuting this case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Lee County, Florida Man Pleads Guilty to Conspiracy to Smuggle Turtles to Germany and Hong Kong and Falsely Labeling the Turtles on Related PaperworkRead the Press Release
MIAMI – A Lee County man pleaded guilty today to federal criminal charges for conspiring to illegally export thousands of turtles to Germany and Hong Kong, and falsifying documents to conceal his conduct.
John Michael Kreatsoulas, 36, of Alva, Florida, pleaded guilty to one count of conspiracy to traffic wildlife and nine counts of falsifying records in violation of the Lacey Act.
According to the factual proffer in support of the plea and other documents included in the court record, from July 2015 to July 2021, Kreatsoulas was the owner and principal of Omni Reptiles, Inc., an unregistered Florida business located in Alva, Florida. Omni was in the business of domestic and international wholesale trade of wildlife, including protected species of reptiles. Kreatsoulas and Omni shipped wildlife they sold to domestic and foreign customers, including to customers in Germany and Hong Kong through Miami International Airport.
Specifically, Kreatsoulas and his co-conspirators collected and captured various species of turtles, including three-stripe mud turtles and Florida mud turtles, from the wild in Florida and sold those turtles to interstate and foreign customers. Kreatsoulas then falsified U.S Fish and Wildlife Service Forms 3-177, which accompanied the international shipments, by including a false “Source” code attesting that the turtles were captive-bred and not wild-caught. Kreatsoulas also falsified invoices related to the sale of the turtles, which purported to show that the turtles sold to co-conspirators in Florida and outside the United States were “captive-bred” hatchling three-stripe mud turtles when, in fact, they were taken from the wild by Kreatsoulas and his co-conspirators.
A sentencing hearing is scheduled for May 17 at 1:30 p.m. before U.S. District Judge Rodolfo A. Ruiz II. Kreatsoulas faces up to five years in federal prison for each count of conviction.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Attorney General for the Environment and Natural Resources Division Todd Kim of the Justice Department’s Environment and Natural Resources Division and Special Agent in Charge Douglas Ault of the U.S. Fish & Wildlife Service (FWS), Southeast Region, made the announcement.
FWS agents in Miami investigated this matter. Assistant U.S. Attorney Thomas Watts-FitzGerald for the Southern District of Florida and Senior Trial Attorney Gary N. Donner of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division are prosecuting this case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20480.
###
Kansas Man Sentenced to Prison for 14 Years for Fentanyl DistributionRead the Press Release
United States Attorney Susan Lehr announced that Joel Medina, 26, of Wichita, Kansas, was sentenced on February 28, 2024, in federal court in Omaha, Nebraska for distribution of 100 grams or more of fentanyl analogue. United States District Judge Brian C. Buescher sentenced Medina to 168 months’ imprisonment. There is no parole in the federal system. After Medina’s release from prison, he will begin a 5-year term of supervised release.
In 2022, an undercover special agent with the Drug Enforcement Administration (DEA) established contact with a known Mexico-based fentanyl supplier. On September 26, 2022, Medina contacted the undercover agent by phone and set a meeting for September 27, 2022, for the undercover agent to purchase 300 fentanyl pills.
On September 27, 2022, the undercover officer purchased the 300 fentanyl pills from Medina at a prearranged location in Omaha. On October 21, 2022, the undercover agent made another purchase of more than 500 fentanyl pills from Medina in Omaha. Laboratory testing confirmed that the pills contained the substances ANPP (an analogue of fentanyl) and fentanyl.
On November 22, 2022, investigators responded to the hospital to investigate a drug overdose. Investigators contacted the victim at the hospital, and the victim identified “Joel Talamantes” as a fentanyl supplier. “Talamantes” was later determined be the Medina. The victim told investigators he received approximately 20 fentanyl pills and bags of cocaine from Medina about a week prior. The victim told investigators he agreed to sell fentanyl pills for the Medina while Medina was out of town and was to be paid a portion of the proceeds from those sales. The victim told investigators that he took one of the pills provided by Medina and woke up in the hospital. Investigators obtained text messages between the victim and Medina corroborating the information provided by the victim.
This case was investigated by the Drug Enforcement Administration.
Kalamazoo Man Sentenced to 20 Years in Prison for Methamphetamine TraffickingRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Rocky Parker, 48, of Kalamazoo, Michigan, was sentenced to 20 years in prison for methamphetamine trafficking. At sentencing, Chief U.S. District Judge Hala Y. Jarbou noted that Parker had a significant number of prior felony convictions, many of which were for controlled substance offenses. Parker’s prior crimes garnered him the highest criminal history category under the U.S. Sentencing Guidelines.
“I am grateful to our law enforcement partners for their investigative work on this case,” said U.S. Attorney Mark Totten. “My office will remain focused on disrupting the supply lines that bring drugs into our communities and destroy so many lives.”
The Drug Enforcement Administration (DEA) and Kalamazoo Valley Enforcement Team (KVET) began investigating Parker for drug trafficking based on a series of tips they received that Parker was a pound-level dealer of methamphetamine in Kalamazoo. The investigation yielded 1.4 kilograms of methamphetamine across six purchases from Parker.
During the investigation, DEA and KVET learned that Parker traveled to Phoenix, Arizona and Las Vegas, Nevada on two occasions in June and July to meet with his sources of supply. During the second trip, investigators learned that Parker was shipping methamphetamine back to Kalamazoo. Investigators intercepted and searched a package destined for Parker, which yielded another 1.3 kilograms of methamphetamine. At the end of July, investigators learned that Parker was making a third trip to obtain additional methamphetamine. On August 1, 2023, on his return from out west, police stopped Parker in Berrien County. While he was bringing his vehicle to a stop, Parker threw a black duffle bag out the passenger window. Police searched the bag and found an additional 1.3 kilograms of methamphetamine. Parker was charged with possession with intent to distribute the methamphetamine seized on August 1, 2023, and pled guilty to this offense on September 28, 2023.
“This case was a successful collaboration between our State and Federal partners,” said Kalamazoo Department of Public Safety Chief David Boysen. “We are pleased to see that Mr. Parker is facing the consequences of his crimes.”
“Mr. Parker contributed to the addiction and poisoning of members of our community by distributing methamphetamine, a highly addictive and destructive illicit substance,” Special Agent in Charge Orville O. Greene. “The DEA, Kalamazoo Department of Public Safety, and other partners in law enforcement, are committed to protecting our communities from individuals like Mr. Parker who continue to put profits and greed above the safety and well-being of the citizens of Kalamazoo and surrounding communities.”
This case was investigated by the DEA and KVET with the assistance of the U.S. Postal Inspection Service and the Michigan State Police. Assistant U.S. Attorneys Joel S. Fauson and Jacob Metoxen handled the prosecution.
###
KC Chiefs ‘Superfan’ Pleads Guilty to Bank Robbery, Money LaunderingRead the Press Release
Video statement by U.S. Attorney Teresa Moore
KANSAS CITY, Mo. – A man popularly known as Kansas City Chiefs superfan “ChiefsAholic” pleaded guilty in federal court today to charges related to a string of 11 robberies, or attempted robberies, of financial institutions in seven states.
“His violent crime spree across the Midwest and beyond traumatized bank employees and victimized financial institutions in seven states,” said U.S. Attorney Teresa Moore. “The defendant tried to conceal hundreds of thousands of dollars in stolen cash by using it to gamble online and at casinos, but the odds caught up with him. With today’s conviction, he will be held accountable for the full scope of his criminal conduct, including his attempt to flee from justice.”
Xaviar Michael Babudar, 29, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of money laundering and one count of transporting stolen property across state lines. Babudar also pleaded guilty to one count of bank robbery, which is contained in a separate case filed in the Northern District of Oklahoma.
Babudar also admitted that he engaged in a string of nine bank and credit union robberies (or attempted robberies) in 2022 followed by two bank robberies committed while he was a fugitive from justice. Babudar laundered much of the stolen money through area casinos and online gambling.
“Babudar walked into a bank in Bixby, Oklahoma, demanded money, and threatened to shoot them if they did not comply,” said U.S. Attorney Clint Johnson of the Northern District of Oklahoma. “Babudar posed a serious danger and risk to the public. I am thankful for the efforts of the Bixby Police Department, the FBI, and federal prosecutors in holding him accountable.”
“While Babudar garnered significant national attention,” said FBI Special Agent in Charge Stephen A. Cyrus, “his criminal actions were reckless – intimidating and victimizing bank employees and the institutions themselves. Significant law enforcement resources were utilized across multiple states to locate and arrest Babudar. This would not have occurred without the assistance and due diligence of our local, state, and federal partners. Today’s guilty plea highlights the value the FBI places on these partnerships and the continued commitment by law enforcement across the nation to hold individuals accountable for their actions.”
Under the terms of today’s plea agreement, Babudar must pay at least $532,675 in restitution to the victim financial institutions. Babudar also must forfeit to the government any property involved in his money laundering activity, including an autographed painting of Kansas City Chiefs quarterback Patrick L. Mahomes II that has been recovered by the FBI.
Babudar, who lived a nomadic existence at various locations around the Kansas City metropolitan area, enjoyed a robust social media presence as Kansas City Chiefs superfan Twitter user @ChiefsAholic, attending most games dressed as a wolf in Chiefs clothing.
Babudar pleaded guilty today to stealing $70,000 from the Clive, Iowa, branch of Great Western Bank on March 2, 2022. Babudar admitted that he entered the bank wearing a ski mask and handed the bank teller a note demanding money and indicating he had a firearm. As he fled on foot, Babudar left behind a black glove and approximately $1,420 in $20 bills in a wooded area near the bank. Investigators later recovered Babudar’s DNA from the black glove. Babudar then carried this money to Missouri, depositing it in two separate transactions into his personal savings account in an attempt to conceal the criminal nature of the proceeds.
Babudar also pleaded guilty today to stealing $139,500 from Tulsa Teachers Federal Credit Union in Bixby, Okla., on Dec. 16, 2022. Babudar admitted that he entered the credit union armed with what appeared to be a black handgun, jumped the teller counter, and ordered a bank employee at gunpoint to go to the credit union’s vault. Once at the vault, Babudar demanded that bank employees open the vault and put the money from the vault into a plastic bag. During this robbery, Babudar told credit union employees that if they did not comply he would shoot them.
When Babudar was arrested shortly after the robbery, he had a large bag in his possession that contained $139,500 in $100 bills plus $10,750 in $50 bills, totaling $150,250 in cash. When investigators searched his 2019 Mazda 3, they found numerous pairs of goggles and gloves, which Babudar wore during a series of bank robberies. Investigators also found a Barstool Sportsbook Betslip for $20,000, dated Nov. 19, 2022; a FanDuel Betslip for $4,000, dated Dec. 1, 2022; and letters from Community America Credit Union related to his deposits of $20,000 and $50,000 on May 2, 2022.
By pleading guilty today, Babudar also admitted that he committed, or attempted to commit, nine robberies of banks and credit unions in addition to the two to which he is pleading guilty. Those crimes, including two bank robberies committed while Babudar was a fugitive from justice, will be considered relevant conduct at the time of his sentencing.
Babudar admitted that he stole $170,860 from the Omaha, Nebraska, branch of First National Bank of Omaha on April 28, 2022. Babudar entered the bank armed with what appeared to be a firearm and ordered bank employees to open their vault. Omaha police officers recovered $163,560 following the theft.
Babudar admitted that he stole $303,845 from the West Des Moines, Iowa, branch of First Class Community Credit Union on July 13, 2022. Babudar brandished what appeared to be a silver and black firearm, jumped over the teller counter, and demanded that the bank employees open the bank vault. After carrying the stolen money back to Missouri, Babudar began laundering this money through area casinos, depositing the cash he received from these casinos into his personal bank account.
Babudar admitted that he stole $125,900 from the Nashville, Tennessee, branch of The Tennessee Credit Union on Nov. 17, 2022. Babudar, armed with what appeared to be a black and silver firearm, climbed over the bank teller counter. He pressed the firearm against the teller’s body and demanded that credit union employees take him to the vault. Employees complied with Babudar’s demands, provided him with cash from the teller drawers, and took him to the vault. Babudar told credit union employees that if he was given a dye pack he would “come back and put a bullet in your head.” After Babudar fled on foot, a hat was recovered; investigators extracted DNA from the hat that matched the DNA extracted from Babudar’s glove in the March 2, 2022, robbery. A few days later, Babudar used some of the stolen money to purchase $20,000 in casino chips in multiple transactions from a local casino.
Babudar admitted that he attempted to rob Wings Financial Credit Union in Savage, Minnesota, on Nov. 29, 2022. Babudar entered this credit union with what appeared to be a firearm and demanded that credit union employees open the vault. Babudar fled from the credit union, however, after seeing the vault only held small bills.
Babudar admitted that he attempted to rob Royal Credit Union in Apple Valley, Minn., on Nov. 29, 2022. Babudar entered the credit union with what appeared to be a firearm and demanded that credit union employees open the vault. When he saw the vault only contained small bills, Babudar demanded $100 bills. Credit union employees told him they didn’t keep $100 bills in the vault, and Babudar fled on foot.
Babudar admitted that he stole $25,000 from the Clive, Iowa, branch of First Interstate Bank on Nov. 30, 2022. Following the two unsuccessful robberies the previous day, Babudar returned to the same facility he had robbed on March 2, 2022, which had since then become a branch of First Interstate Bank. Babudar entered the bank carrying what appeared to be a firearm and jumped over the teller counter. He ordered the bank employees, at gunpoint, to open the vault. He fled on foot after the bank employees gave him the cash in the vault. Babudar then carried the stolen money back to Missouri, where he deposited a portion of it into his personal bank account.
Babudar admitted that he attempted to rob Pinnacle Bank in Papillon, Nebraska, on Dec. 15, 2022. At approximately 1:55 p.m., Babudar entered the vestibule area of Pinnacle Bank and pulled on the doors, but was unable to open them. He then left the area. The next day, he robbed the Tulsa Teachers Federal Credit Union and was arrested.
Babudar, after being arrested in Oklahoma in December 2022, was released on bond in February 2023.
Months earlier, Babudar had placed two winning bets at the Argosy Casino in Alton, Ill. On June 10, 2022, Babudar bet $5,000 that Kansas City Chiefs’ quarterback Patrick Mahomes II would win the Most Valuable Player at Super Bowl LVII, which would pay out $45,000 should that occur. Babudar also bet $5,000 that the Kansas City Chiefs would win Super Bowl LVII, which would pay out $55,000 should that occur. When the Kansas City Chiefs won the Super Bowl on Feb. 12, 2023, and Mahomes won the Most Valuable Player award, Babudar won $100,000. Argosy Casino mailed Babudar a $100,000 check in early March 2023.
Days later, Babudar cut his ankle monitor and fled from Oklahoma. According to court documents, Babudar used his gambling winnings to purchase a vehicle in Henderson, Nevada, and evade law enforcement until his arrest in Sacramento on July 7, 2023.
In today’s plea agreement, Babudar admitted that he robbed two additional banks while he was a fugitive from justice.
Babudar admitted that he stole $1,100 from Heritage Bank in Sparks, Nevada, on June 8, 2023. Babudar entered the bank wearing a beanie, a Covid-19 mask, a blue long-sleeved shirt, khaki pants, and a fanny pack. Babudar showed a note to the Heritage Bank teller that was composed on his cell phone, which demanded money from the teller.
Babudar admitted that he stole $950 from U.S. Bank in El Dorado Hills, California, on July 3, 2023. Babudar entered the bank wearing a grey hooded sweatshirt, a Covid-19 mask, and a yellow reflective vest. Babudar showed a note to the U.S. Bank teller that was composed on his cell phone, which demanded money from the teller.
Babudar has been detained in federal custody without bond since his arrest.
Under the terms of today’s plea agreement, Babudar is subject to a sentence of up to 50 years in federal prison without parole, with the parties agreeing to recommend that the sentences imposed for each count run concurrent to one another. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing is scheduled for July 10, 2024, after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Patrick D. Daly and Stephanie C. Bradshaw in the Western District of Missouri, and U.S. Attorney Clinton J. Johnson and Assistant U.S. Attorney Eric O. Johnston in the Northern District of Oklahoma. It was investigated by the FBI and the Bixby, Okla., Police Department. The Bixby, Okla., Police Department arrested Babudar in December 2022, and the Placer County, Calif., Sheriff’s Department and the Lincoln, Calif., Police Department assisted the FBI in the July 2023 arrest.
Justice Department to Implement Groundbreaking Executive Order Addressing National Security Risks and Data SecurityRead the Press Release
Note: Read the Department's fact sheet on this matter here.
On Feb. 28, the President will issue a groundbreaking Executive Order (E.O.) addressing the extraordinary and unusual national security threat posed by the continued effort of certain countries of concern to access Americans’ bulk sensitive personal data and certain U.S. Government-related data. The first of its kind, the E.O., entitled “Preventing Access to Americans’ Bulk Sensitive Personal Data and U.S. Government-Related Data by Countries of Concern,” will direct the Justice Department to establish, implement and administer new and targeted national-security programming to address this threat. The E.O. will require the Department, in consultation with other agencies, to issue regulations that prohibit, or otherwise restrict, certain categories of data transactions that pose an unacceptable risk to national security.
“Our adversaries are exploiting Americans’ sensitive personal data to threaten our national security,” said Attorney General Merrick B. Garland. “They are purchasing this data to use to blackmail and surveil individuals, target those they view as dissidents here in the United States, and engage in other malicious activities. This Executive Order gives the Justice Department the authority to block countries that pose a threat to our national security from harvesting Americans’ most sensitive personal data—including human genomic data, biometric and personal identifiers, and personal health and financial data.”
“Today, we make clear that American citizens' sensitive and personal data is not for sale to our adversaries,” said Deputy Attorney General Lisa Monaco. “The Justice Department has long focused on preventing threat actors from stealing data through the proverbial back door. This executive order shuts the front door by denying countries of concern access to Americans’ most sensitive personal data.”
“Hostile foreign powers are weaponizing bulk data and the power of artificial intelligence to target Americans,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s announcement fills a key gap in our national security authorities, affording the Justice Department a new and powerful enforcement tool to protect Americans and their most sensitive information from being exploited by our adversaries.”
In addition to this new program, the E.O. will take other steps to enhance the Justice Department’s existing authorities to address data-security risks, including with respect to telecommunications infrastructure, the health care market, and consumer protection. Under existing transaction-specific authorities, the Department closely scrutinizes data-security risks, including as the chair of the interagency committee known as Team Telecom that reviews foreign participation in the U.S. telecommunications sector; as a co-lead agency for investments reviewed by the Committee on Foreign Investment in the United States (CFIUS); and in other roles addressing counterintelligence risks through the U.S. Government’s supply-chain authorities. The Department, including the FBI, also works closely with the Intelligence Community to share information with the private sector about the threats facing their sensitive data and systems.
In accordance with the Executive Order, the Justice Department’s National Security Division will implement its provisions on behalf of the Attorney General, and contemplates identifying China, Russia, Iran, North Korea, Cuba, and Venezuela as countries of concern under this program. The National Security Division will issue an Advance Notice of Proposed Rulemaking (ANPRM) describing the initial categories of transactions involving bulk sensitive personal data or certain U.S. Government-related data as outlined in the E.O. and seeking public comment on items the Department of Justice contemplates regulating, including prohibitions on data brokerage and transfers of genomic data, and restrictions on vendor, employment, and investment agreements.
The purpose of the ANPRM is to provide transparency and clarity about the intended scope of the program and to solicit input from the public before it goes into effect. The Department welcomes comments on the ANPRM from industry, civil society, and advocacy groups with expertise on data security and cybersecurity, organizations and entities affected by the proposed regulations, and anyone else with an interest in the proper administration of the Executive Order’s directions to prohibit or restrict certain transactions involving Americans’ bulk sensitive personal data or U.S. Government-related data with countries of concern or persons subject to their jurisdiction. Written comments on the ANPRM may be submitted within 45 days on regulations.gov. The ANPRM will be followed by proposed regulations at a later date.
The Department is committed to protecting Americans from countries that may seek to collect and weaponize their most sensitive data. As the nation’s lead law enforcement and domestic counterintelligence agency, the Department is a key line of defense. The Department undertakes law enforcement and counterintelligence investigations and prosecutions to disrupt and deter state-sponsored malicious cyberactivity that seeks to exfiltrate sensitive data from U.S. victims for intelligence collection and economic espionage.
The Justice Department is committed to ensuring that this program remains carefully calibrated and is consistent with the United States’ longstanding commitments to cross-border data flows with trust, an open and secure internet, and open scientific research through international cooperation and collaboration. This program is a targeted national security measure, focused on transactions with a handful of identified countries of concern or covered persons subject to their jurisdiction. The E.O. does not authorize — and indeed specifically prohibits — the Department from establishing data-localization requirements as part of this targeted new program. The E.O. and contemplated program also exempt certain categories of data transactions, such as those ordinarily incident to financial services, in order to allow low-risk commercial activity to continue unimpeded and to minimize unintended economic impacts on businesses and markets.
The Department looks forward to continuing to receive and consider public input through the rulemaking process.
Justice Department Finds Conditions at Three Mississippi Prisons Violate the ConstitutionRead the Press Release
WASHINGTON – The Justice Department announced today its findings that conditions of confinement at three Mississippi Department of Corrections (MDOC) facilities violate the 8th and 14th Amendments to the U.S. Constitution.
The Department’s 60-page report details its findings from a thorough investigation of the Central Mississippi Correctional Facility, South Mississippi Correctional Institution, and Wilkinson County Correctional Facility. These three prisons currently house about 7,200 people.
The report concludes that MDOC routinely violates the constitutional rights of people incarcerated at all three facilities by failing to protect them from widespread physical violence. The state does not adequately supervise the incarcerated population, control the flow of contraband, adequately investigate incidents of serious harm, or provide adequate living conditions. These problems are exacerbated by chronic understaffing that has allowed gangs to exert improper influence inside the prisons.
The report also concludes that Mississippi unconstitutionally subjects persons at Central Mississippi Correctional Facility and Wilkinson County Correctional Facility to prolonged restrictive housing under harsh conditions that places them at substantial risk of serious physical and psychological harm.
“People living in prisons and jails have a constitutional right to safe and adequate living conditions,” said Acting Associate Attorney General Benjamin C. Mizer. “Our investigation uncovered that people in these three facilities were subjected to violent and unsafe conditions, in violation of the Constitution. We look forward to working with Mississippi officials to remedy these violations and improve safety and living standards for people incarcerated in the state of Mississippi.”
“Every state is constitutionally obligated to protect the people it incarcerates from known, pervasive and deliberately unchecked violence, and to house people in conditions that do not pose a serious risk of physical and psychological harm,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our investigation uncovered chronic, systemic deficiencies that create and perpetuate violent and unsafe environments for people incarcerated at these three Mississippi facilities. The unconstitutional conditions in Mississippi’s prisons have existed for far too long, and we hope that this announcement marks a turning point towards implementing sound, evidence-based solutions to these entrenched problems. The Justice Department stands ready to enforce the dictates of the Constitution that protect the safety and human dignity of all people housed at state prison facilities. Our work makes clear that people do not abandon their civil and constitutional rights at the jailhouse door.”
“Ensuring constitutional and humane conditions of confinement in our prisons is a key part of public safety,” said U.S. Attorney Clay Joyner for the Northern District of Mississippi. “By allowing physical violence, illegal gang activity, and contraband to run rampant, Mississippi not only violates the rights of people incarcerated at these facilities, but also compromises the legitimacy of law enforcement efforts to protect our communities. Our office remains committed to upholding the rights of all our district’s residents. We look forward to working with the Mississippi Department of Corrections to protect the constitutional and civil rights of those incarcerated at these three Mississippi prison facilities.”
“The conclusion of the investigation and the issuance of findings is only the start of the work necessary to ensure that the state of Mississippi and the Mississippi Department of Corrections fulfill their constitutional obligations to the people it incarcerates,” said U.S. Attorney Todd W. Gee for the Southern District of Mississippi. “The minimum remedial measures outlined in this report create the framework for what the state must do to reasonably protect people in these facilities from violence and prevent deprivation of fundamental physical and psychological needs. While this report makes clear that there is much work for the state to do, we are committed to working with state officials to ensure that Mississippi abides by its constitutional obligations.”
Today’s announcement follows the Department’s April 2022 report finding that conditions at the Mississippi State Penitentiary (known as Parchman) violated the constitutional rights of persons incarcerated there by subjecting them to violence, failing to provide adequate care for serious mental health needs, or adequate suicide prevention measures and using prolonged restrictive housing in a manner that poses a risk of serious harm.
The Justice Department launched its investigation of Parchman, Central Mississippi Correctional Facility, South Mississippi Correctional Institution, and Wilkinson County Correctional Facility in February 2020, under the Civil Rights of Institutionalized Persons Act (CRIPA). As required by CRIPA, the department provided the State of Mississippi with written notice of the supporting facts for its conclusions and the minimum remedial measures necessary to address the alleged violations.
The Civil Rights Division’s Special Litigation Section and the U.S. Attorneys’ Offices for the Northern and Southern Districts of Mississippi conducted the investigation.
For more information about the Civil Rights Division and the Special Litigation Section, please visit www.justice.gov/crt/special-litigation-section. You can also report civil rights violations to the section by completing the complaint form available at civilrights.justice.gov/. To provide information related to the Department’s investigation of the four Mississippi prisons, please call 1-833-591-0288 or email the department at [email protected].
Justice Department Finds Conditions at Three Mississippi Prisons Violate the ConstitutionRead the Press Release
The Justice Department announced today its findings that conditions of confinement at three Mississippi Department of Corrections (MDOC) facilities violate the 8th and 14th Amendments to the U.S. Constitution.
The Department’s 60-page report details its findings from a thorough investigation of the Central Mississippi Correctional Facility, South Mississippi Correctional Institution, and Wilkinson County Correctional Facility. These three prisons currently house about 7,200 people.
The report concludes that MDOC routinely violates the constitutional rights of people incarcerated at all three facilities by failing to protect them from widespread physical violence. The state does not adequately supervise the incarcerated population, control the flow of contraband, adequately investigate incidents of serious harm, or provide adequate living conditions. These problems are exacerbated by chronic understaffing that has allowed gangs to exert improper influence inside the prisons.
The report also concludes that Mississippi unconstitutionally subjects persons at Central Mississippi Correctional Facility and Wilkinson County Correctional Facility to prolonged restrictive housing under harsh conditions that places them at substantial risk of serious physical and psychological harm.
“People living in prisons and jails have a constitutional right to safe and adequate living conditions,” said Acting Associate Attorney General Benjamin C. Mizer. “Our investigation uncovered that people in these three facilities were subjected to violent and unsafe conditions, in violation of the Constitution. We look forward to working with Mississippi officials to remedy these violations and improve safety and living standards for people incarcerated in the state of Mississippi.”
“Every state is constitutionally obligated to protect the people it incarcerates from known, pervasive and deliberately unchecked violence, and to house people in conditions that do not pose a serious risk of physical and psychological harm,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our investigation uncovered chronic, systemic deficiencies that create and perpetuate violent and unsafe environments for people incarcerated at these three Mississippi facilities. The unconstitutional conditions in Mississippi’s prisons have existed for far too long, and we hope that this announcement marks a turning point towards implementing sound, evidence-based solutions to these entrenched problems. The Justice Department stands ready to enforce the dictates of the Constitution that protect the safety and human dignity of all people housed at state prison facilities. Our work makes clear that people do not abandon their civil and constitutional rights at the jailhouse door.”
“Ensuring constitutional and humane conditions of confinement in our prisons is a key part of public safety,” said U.S. Attorney Clay Joyner for the Northern District of Mississippi. “By allowing physical violence, illegal gang activity, and contraband to run rampant, Mississippi not only violates the rights of people incarcerated at these facilities, but also compromises the legitimacy of law enforcement efforts to protect our communities. Our office remains committed to upholding the rights of all our district’s residents. We look forward to working with the Mississippi Department of Corrections to protect the constitutional and civil rights of those incarcerated at these three Mississippi prison facilities.”
“The conclusion of the investigation and the issuance of findings is only the start of the work necessary to ensure that the state of Mississippi and the Mississippi Department of Corrections fulfill their constitutional obligations to the people it incarcerates,” said U.S. Attorney Todd W. Gee for the Southern District of Mississippi. “The minimum remedial measures outlined in this report create the framework for what the state must do to reasonably protect people in these facilities from violence and prevent deprivation of fundamental physical and psychological needs. While this report makes clear that there is much work for the state to do, we are committed to working with state officials to ensure that Mississippi abides by its constitutional obligations.”
Today’s announcement follows the Department’s April 2022 report finding that conditions at the Mississippi State Penitentiary (known as Parchman) violated the constitutional rights of persons incarcerated there by subjecting them to violence, failing to provide adequate care for serious mental health needs, or adequate suicide prevention measures and using prolonged restrictive housing in a manner that poses a risk of serious harm.
The Justice Department launched its investigation of Parchman, Central Mississippi Correctional Facility, South Mississippi Correctional Institution, and Wilkinson County Correctional Facility in February 2020, under the Civil Rights of Institutionalized Persons Act (CRIPA). As required by CRIPA, the department provided the State of Mississippi with written notice of the supporting facts for its conclusions and the minimum remedial measures necessary to address the alleged violations.
The Civil Rights Division’s Special Litigation Section and the U.S. Attorneys’ Offices for the Northern and Southern Districts of Mississippi conducted the investigation.
For more information about the Civil Rights Division and the Special Litigation Section, please visit www.justice.gov/crt/special-litigation-section. You can also report civil rights violations to the section by completing the complaint form available at civilrights.justice.gov/. To provide information related to the Department’s investigation of the four Mississippi prisons, please call 1-833-591-0288 or email the department at [email protected].
Justice Department Finds Conditions at Three Mississippi Prisons Violate the ConstitutionRead the Press Release
The Justice Department announced today its findings that conditions of confinement at three Mississippi Department of Corrections (MDOC) facilities violate the 8th and 14th Amendments to the U.S. Constitution.
The Department’s 60-page report details its findings from a thorough investigation of the Central Mississippi Correctional Facility, South Mississippi Correctional Institution, and Wilkinson County Correctional Facility. These three prisons currently house about 7,200 people.
The report concludes that MDOC routinely violates the constitutional rights of people incarcerated at all three facilities by failing to protect them from widespread physical violence. The state does not adequately supervise the incarcerated population, control the flow of contraband, adequately investigate incidents of serious harm, or provide adequate living conditions. These problems are exacerbated by chronic understaffing that has allowed gangs to exert improper influence inside the prisons.
The report also concludes that Mississippi unconstitutionally subjects persons at Central Mississippi Correctional Facility and Wilkinson County Correctional Facility to prolonged restrictive housing under harsh conditions that places them at substantial risk of serious physical and psychological harm.
“People living in prisons and jails have a constitutional right to safe and adequate living conditions,” said Acting Associate Attorney General Benjamin C. Mizer. “Our investigation uncovered that people in these three facilities were subjected to violent and unsafe conditions, in violation of the Constitution. We look forward to working with Mississippi officials to remedy these violations and improve safety and living standards for people incarcerated in the state of Mississippi.”
“Every state is constitutionally obligated to protect the people it incarcerates from known, pervasive and deliberately unchecked violence, and to house people in conditions that do not pose a serious risk of physical and psychological harm,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our investigation uncovered chronic, systemic deficiencies that create and perpetuate violent and unsafe environments for people incarcerated at these three Mississippi facilities. The unconstitutional conditions in Mississippi’s prisons have existed for far too long, and we hope that this announcement marks a turning point towards implementing sound, evidence-based solutions to these entrenched problems. The Justice Department stands ready to enforce the dictates of the Constitution that protect the safety and human dignity of all people housed at state prison facilities. Our work makes clear that people do not abandon their civil and constitutional rights at the jailhouse door.”
“Ensuring constitutional and humane conditions of confinement in our prisons is a key part of public safety,” said U.S. Attorney Clay Joyner for the Northern District of Mississippi. “By allowing physical violence, illegal gang activity, and contraband to run rampant, Mississippi not only violates the rights of people incarcerated at these facilities, but also compromises the legitimacy of law enforcement efforts to protect our communities. Our office remains committed to upholding the rights of all our district’s residents. We look forward to working with the Mississippi Department of Corrections to protect the constitutional and civil rights of those incarcerated at these three Mississippi prison facilities.”
“The conclusion of the investigation and the issuance of findings is only the start of the work necessary to ensure that the state of Mississippi and the Mississippi Department of Corrections fulfill their constitutional obligations to the people it incarcerates,” said U.S. Attorney Todd W. Gee for the Southern District of Mississippi. “The minimum remedial measures outlined in this report create the framework for what the state must do to reasonably protect people in these facilities from violence and prevent deprivation of fundamental physical and psychological needs. While this report makes clear that there is much work for the state to do, we are committed to working with state officials to ensure that Mississippi abides by its constitutional obligations.”
Today’s announcement follows the Department’s April 2022 report finding that conditions at the Mississippi State Penitentiary (known as Parchman) violated the constitutional rights of persons incarcerated there by subjecting them to violence, failing to provide adequate care for serious mental health needs, or adequate suicide prevention measures and using prolonged restrictive housing in a manner that poses a risk of serious harm.
The Justice Department launched its investigation of Parchman, Central Mississippi Correctional Facility, South Mississippi Correctional Institution, and Wilkinson County Correctional Facility in February 2020, under the Civil Rights of Institutionalized Persons Act (CRIPA). As required by CRIPA, the department provided the State of Mississippi with written notice of the supporting facts for its conclusions and the minimum remedial measures necessary to address the alleged violations.
The Civil Rights Division’s Special Litigation Section and the U.S. Attorneys’ Offices for the Northern and Southern Districts of Mississippi conducted the investigation.
For more information about the Civil Rights Division and the Special Litigation Section, please visit www.justice.gov/crt/special-litigation-section. You can also report civil rights violations to the section by completing the complaint form available at civilrights.justice.gov/. To provide information related to the Department’s investigation of the four Mississippi prisons, please call 1-833-591-0288 or email the department at [email protected].
Jefferson County man pleads guilty to federal crimes related to $4.9 million investment fraud schemeRead the Press Release
COLUMBUS, Ohio – A Toronto, Ohio, man pleaded guilty in U.S. District Court here today to crimes related to a multi-million investment scheme that victimized at least 65 individuals.
William T. Caniff, Jr., 54, admitted to committing wire fraud and money laundering.
According to court documents, Caniff executed an investment scheme through a business he helped establish called Berkley Capital Management, LLC purportedly to trade binary options.
Binary options are a type of options contract in which the payout depends on the outcome of a yes/no proposition. For example, a person may invest in a binary option related to whether a company’s stock reaches a certain value, but the binary option does not give the investor any property interest in the company’s stock itself.
From March 2016 through December 2018, Caniff’s investment funds received more than $4.9 million from investors, most of whom were Dutch nationals. Caniff misappropriated approximately $2.3 million of the investors’ funds for his own personal benefit like the purchase a residence, car payments and credit card payments.
Caniff used new investments to make payments to past investors and invested only $85,000 in binary options.
As part of his scheme, Caniff fraudulently obtained membership to the North American Derivatives Exchange, Inc. (Nadex), an online binary-options exchange headquartered in Chicago. He lied about having been convicted of multiple felonies to be approved as a Trading Member on Nadex.
Parties involved in this case have recommended a sentence of 30 months in prison. As part of the plea, Caniff has agreed to pay approximately $2.3 million in restitution.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Karen Wingerd, Acting Special Agent in Charge, Internal Revenue Service-Criminal Investigation (IRS-CI); announced the guilty plea entered today before U.S. District Judge Michael H. Watson.
The United States Attorney’s Office and IRS-Criminal Investigation thanked the Dutch Fiscal Information and Investigative Service and the Dutch Ministry of Justice for their assistance in the investigation. The Justice Department’s Office of International Affairs provided substantial assistance.
Assistant United States Attorney Peter K. Glenn-Applegate and Deputy Criminal Chief Jessica W. Knight are representing the United States in this case.
# # #