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Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 17 January 2024
Ohio man admits to his role in drug trafficking organization in WheelingRead the Press Release
WHEELING, WEST VIRGINIA – Raymond Michael Hardmon, also known as “Dro,” 38, of Bellaire, Ohio, has admitted to his role in a drug trafficking conspiracy operating in the Northern Panhandle of West Virginia.
Hardmon pled guilty to conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine base, and cocaine. According to court documents, Hardmon was involved in the trafficking of controlled substances in the Wheeling area. Investigators connected Hardmon to more than 400 grams of cocaine.
The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
Assistant U.S. Attorney Carly Nogay is prosecuting the case on behalf of the government.
U.S. Magistrate Judge James P. Mazzone presided.
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Ohio Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Antione Terren Glanton, also known as “Twan” and “T,” 45, of Columbus, Ohio, pleaded guilty yesterday to distribution of methamphetamine and cocaine base, also known as “crack.”
According to court documents and statements made in court, on October 27, 2022, Glanton sold approximately 27.5 grams of methamphetamine and a quantity of crack to a confidential informant in the area of the 2500 block of Washington Boulevard in Huntington. Glanton admitted to the transaction and to arranging it with the confidential informant beforehand.
Glanton further admitted to selling approximately 2.7 grams of crack to the confidential informant in the area of the 200 block of Olive Street in Huntington on October 24, 2022, and to selling approximately 2.9 grams of crack and 1.3 grams of fentanyl to the confidential informant on the 2500 block of Washington Boulevard in Huntington on January 5, 2023.
On January 11, 2023, law enforcement officers executed a search warrant at Glanton’s Marcum Terrace residence in Huntington and found approximately 15 grams of crack, 32 grams of fentanyl, a quantity of heroin, digital scales, fentanyl test strips and $501. Officers also found a loaded Glock 19 9mm pistol and a loaded Smith & Wesson 9mm pistol in Glanton’s possession. Glanton admitted that he possessed the seized crack, fentanyl and heroin and intended to distribute the controlled substances.
Glanton is scheduled to be sentenced on May 20, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Courtney L. Finney and Lesley C. Shamblin are 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. 3:23-cr-113.
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Newark Man Admits Carjacking and Firearms OffensesRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted carjacking in Montclair, New Jersey, U.S. Attorney Philip R. Sellinger announced.
Andy Cook, 24, of Newark, pleaded guilty before Judge Julien X. Neals to an indictment charging him with one count of carjacking and one count of conspiracy to use a firearm during a crime of violence.
According to the documents filed in this case and statements made in court:
On Dec. 6, 2021, Cook’s accomplice approached the victim, who was inside her car that was parked on her driveway. The accomplice pointed a firearm at the victim and ordered the victim to leave her belongings and exit the car. Cook then entered the car and drove it away. After the victim called the police, law enforcement officers spotted the vehicle. Cook abandoned the vehicle in Newark and fled on foot before being apprehended.
The count of carjacking carries a maximum potential penalty of 15 years in prison and a $250,000 fine. The count of conspiracy to use a firearm during a crime of violence carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 30, 2024.
U.S. Attorney Sellinger credited special agents of the FBI Newark Violent Crimes Task Force, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit.
cook.indictment.pdfNew Orleans Man Pleads Guilty to Heroin and Cocaine Distribution ConspiracyRead the Press Release
NEW ORLEANS, LOUISIANA – DONALD MYLES, a/k/a “D-Ray,” age 46, a New Orleans resident, pleaded guilty on January 10, 2024, before U.S. District Judge Mary Ann Vial Lemmon to conspiracy to distribute 100 grams or more of heroin and a quantity of cocaine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), 841(b)(1)(C), and 846, announced U.S. Attorney Duane A. Evans.
According to court documents, the Federal Bureau Investigation New Orleans Gang Task Force and the New Orleans Police Department investigated MYLES for his involvement in a drug distribution operation in September 2020. The investigation involved numerous controlled purchases of heroin and cocaine from MYLES. The investigation revealed that MYLES conspired with JOHN CRAWFORD, KEVIN JOHNSON, CHRISTOPHER JOHNSON, and others to distribute heroin and cocaine.
MYLES faces a mandatory minimum of five years, up to forty years imprisonment, a fine of up to $5,000,000, at least four years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
The U.S. Federal Bureau of Investigation New Orleans Gang Task Force, with the assistance of the New Orleans Police Department, the Jefferson Parish Sheriff’s Office, and the Gretna Major Crimes Task Force, led the investigation. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
New Mexico man suspected of stealing items from Montana Historical Society arraigned on chargesRead the Press Release
GREAT FALLS — A New Mexico man suspected of stealing items of significant historical value from the Montana Historical Society, including letters by the wife of renowned Western artist Charlie “C.M.” Russell, and then selling them on eBay appeared on Jan. 16 for arraignment on charges, U.S. Attorney Jesse Laslovich said today.
Brian Anthony D’Ambrosio, 49, Sante Fe, New Mexico, pleaded not guilty to an indictment charging him with theft of major artwork, interstate transportation of stolen property and wire fraud. If convicted of the most serious crime, D’Ambrosio faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge John T. Johnston presided. D’Ambrosio, who appeared by video, was released pending further proceedings.
The indictment alleges that from about April 2022 to September 2023, D’Ambrosio stole objects of cultural heritage that were more than 100 years old and worth more than $5,000 from the Montana Historical Society, a museum located in Helena. D’Ambrosio, while claiming to conduct research at the Montana Historical Society, stole items of significant historic value, including letters written by Nancy Russell, the wife of Western artist Charlie “C.M.” Russell. As alleged in the indictment, D’Ambrosio then sold and attempted to sell the items on eBay for a profit. D’Ambrosio fraudulently induced buyers to purchase the items by omitting that he had stolen them from the Montana Historical Society, making it appear as if he had authority to sell and transfer the items to others when he did not.
An indictment is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorneys Ryan G. Weldon and Jennifer S. Clark are prosecuting the case. The FBI and Helena Police Department conducted the investigation.
PACER case reference. 23-20.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl
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New Hampshire Man Indicted on Firearm ChargeRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont announced that Ryan Buckley, 35, originally from New Hampshire, was arraigned in the District of Vermont on January 16, 2024 after a federal grand jury sitting in Rutland, Vermont returned a one-count indictment charging Buckley with possessing a firearm after being convicted of a felony. Buckley had been ordered detained in state court as a result of state charges he is facing and assented to detention in this federal case.
According to court records, on June 27, 2023, police came upon Buckley passed out in his pickup truck at the community baseball field in Chester, Vermont. Buckley had a handgun in his lap. Police knocked on his window. Buckley woke up and then picked up the firearm. Buckley placed the firearm on his lap and put his truck into gear. Police convinced Buckley to open his window and disarmed him without further incident. Buckley admitted to the police that he had smoked methamphetamine recently, having a prior felony conviction, and to knowing that he could not possess firearms. Buckley consented to a search of his truck and police found a small bag of suspected methamphetamine which field-tested positive. Because Buckley felt his heart racing, he requested medical transport to the hospital and police issued him a citation, but he failed to appear for his court date.
Police subsequently arrested Buckley on July 29, 2023 in Lebanon, New Hampshire. Buckley told police that he had recently stolen a firearm from Cavendish, Vermont and given it to someone else in Mount Holly, Vermont. Buckley said he helped another person move numerous firearms into a storage unit Buckley rented in Killington, Vermont. Buckley said he had met this person while selling them fentanyl during the previous six months. Police obtained and executed a search warrant for that Killington, Vermont storage unit and recovered, among other items, 19 firearms and 3,240 rounds of ammunition. Buckley’s criminal history includes prior felony convictions for grossly negligent operation of a motor vehicle resulting in serious bodily injury, leaving the scene of a crash with serious bodily injury, unlawful trespass of an occupied residence and possession of heroin.
If convicted, Buckley could face a maximum statutory penalty of 15 years in prison and a $250,000 fine, although any actual sentence will be advised by the U.S. Sentencing Guidelines and the United States Code. The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Buckley remains presumed innocent unless and until he is convicted of a crime.
The case will be prosecuted by Assistant U.S. Attorneys Jon Ophardt and Colin Owyang. Buckley is represented by Michael Straub, Esq.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
New Castle Resident Sentenced to More Than Three Years in Prison for Trafficking of Fentanyl and CocaineRead the Press Release
PITTSBURGH, Pa. - A resident of New Castle, Pennsylvania, was sentenced to 37 months in federal prison for trafficking fentanyl and cocaine, United States Attorney Eric G. Olshan announced today.
Donald Snowden, 32, of New Castle, was sentenced by United States District Judge Arthur J. Schwab. Judge Schwab ordered Snowden to serve three years of supervised release following the prison sentence.
In August 2023, Snowden pleaded guilty to conspiring to distribute fentanyl and cocaine between May 2021 and October 2022 and to distributing fentanyl in August 2022. In pleading guilty, Snowden acknowledged responsibility for the distribution of 100 grams of cocaine and 16 grams of fentanyl. He was on probation for a prior felony conviction when he committed the crimes in this case.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
United States Attorney Olshan commended the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, the Mercer County Drug Task Force, the New Castle Police Department, the Sharon Police Department, and the Pennsylvania State Police for the investigation leading to the successful prosecution of Snowden.
Nevada Man Sentenced for Embezzlement SchemeRead the Press Release
Acting United States Attorney Susan Lehr announced that Johnny Bradford, age 52, of Las Vegas, Nevada, was sentenced on January 17, 2024, in federal court in Omaha, Nebraska, for wire fraud. United States District Court Judge Brian C. Buescher sentenced Bradford to time served. Bradford will immediately begin a 3-year term of supervised release as a condition of his release, Bradford will serve a 6-month term of house arrest. Bradford was also ordered to pay $112,257.80 in restitution.
Roadrunner Temperature Controlled is the refrigerated trucking division of Roadrunner Transportation Systems and it is located in Sarpy County, Nebraska. Roadrunner Temperature Controlled (“Roadrunner”) uses Electronic Funds Source (“EFS”), an electronic wire transfer service, for their driver cash advances.
Amy Shepherd was employed by Roadrunner from July 25, 2016, through June 21, 2019. During her employment at Roadrunner, Shepherd, was a Customer Service Manager, Driver Business Leader Manager, and, most recently, a Dispatch Lead Manager. Shepherd was a Dispatch Lead Manager from October 13, 2018, to June 21, 2019. Shepherd worked remotely from her home in Kansas. Johnny Bradford II was a driver employed by Roadrunner from February 28, 2017, until May 4, 2018.
From February 1, 2018, through June 21, 2019, Shepherd, used her position with Roadrunner as a Dispatch Lead Manager to fraudulently generate advances and enter EFS check codes into Roadrunner’s accounting system. Shepherd characterized the advances as relating to legitimate business purposes, for example repairs, washouts, or trailer unloading. Shepherd entered the advances for current Roadrunner drivers. After generating the check code, Shepherd sent the check code to Bradford. Bradford filled out the EFS checks with the check code he received from Shepherd. Bradford then cashed the checks at vendor establishments. After Bradford received the funds, he would use Western Union to send portions of the money he received from the fraudulent driver advances back to Shepherd. One such wire occurred on June 9, 2019, when a check in the amount of $826.64 was initiated by Shepherd, in Kansas purportedly being for “TRL16452 Alternator” through Roadrunner’s accounting system in Nebraska, to Bradford in Nevada. As a result of the scheme and artifice to defraud, from February 1, 2018, through June 21, 2019, Shepherd and Bradford caused an actual loss of $112,257.80.
On November 30, 2023, codefendant Shepherd was sentenced to 18 months imprisonment for her role in this crime.
This case was investigated by the United States Secret Service and the Sarpy County Sheriff’s Office.
Nevada CPA Sentenced to Three Years in Prison in False Tax Return SchemeRead the Press Release
LAS VEGAS – A Nevada man was sentenced Tuesday to three years in prison for willfully aiding and assisting the filing of false tax returns, in connection with a scheme to sell purported investment opportunities to clients that he falsely claimed would entitle them to IRS tax deductions.
According to court documents and statements made in court, Lance K. Bradford, of Henderson, was a certified public accountant and founder and manager of LL Bradford & Company (LLB). LLB performed accounting-related work, including tax preparation, audit and consulting services. Bradford also operated a real estate business that developed office buildings and other real property. In connection with Bradford’s real estate development activities, he operated and controlled a real estate investment partnership entity.
In 2011, Bradford began offering LLB’s high-net-worth clients an “investment opportunity” through which the clients would make a payment to his partnership entity and, in exchange, receive a large tax deduction of approximately five to seven times the amount of money the client “invested.” Bradford advised that the clients’ payments would entitle them to claim the large tax deduction based on losses derived from the partnership entity, even though he knew the tax laws did not permit the sale of such deductions in exchange for an investment of money, and the partnership did not incur the losses or depreciation in the amounts represented by Bradford. Bradford also did not report the purported investments as losses on the clients’ tax returns as promised. Instead, he caused the clients’ returns to report large false deductions for cost of goods sold, professional and consulting fees or nonpassive losses. In total, Bradford’s scheme caused a tax loss to the IRS of at least $8 million.
As one example from his investment scheme, in 2014, Bradford asked a client to make a $417,780 “investment” to his partnership entity in exchange for purported depreciation-based losses to be placed on his client’s 2013 corporate tax return (Form 1120S). But instead of reporting depreciation related to the investment, Bradford caused LLB to prepare and file a Form 1120S that falsely inflated the company’s cost of goods sold by $2,110,000, causing a tax loss to the IRS of approximately $860,627.
In addition to the term of imprisonment, U.S. District Court Judge Gloria M. Navarro ordered Bradford to serve one year of supervised release and pay $6,734,338 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS Criminal Investigation investigated the case, with assistance from the FBI.
Trial Attorney Patrick Burns of the Tax Division and Assistant U.S. Attorney Steven W. Myhre for the District of Nevada prosecuted the case.
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Middle District of Florida Task Force Continues to Combat COVID-19 FraudRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the results achieved by the Middle District of Florida’s efforts to combat fraud related to COVID-19. Those efforts have included complementary actions by the United States Attorney’s Office’s (USAO-MDFL) Criminal, Asset Recovery, Appellate, and Civil Divisions, along with federal, state, and local law enforcement agencies.
“The Middle District of Florida United States Attorney’s Office continues to pursue, investigate, prosecute, and recover money from those who were engaged in major or sophisticated fraud schemes designed to steal benefits intended for Americans coping with the myriad impacts of the pandemic,” said U.S. Attorney Roger Handberg.
On the criminal enforcement front, the USAO-MDFL and federal, state, and local law enforcement agencies combined resources in March 2020 to form the Middle District of Florida COVID-19 Fraud Task Force to identify, investigate, and prosecute fraud related to the ongoing COVID-19 pandemic. Since its inception, the Task Force has prosecuted 77 defendants for fraud schemes designed to exploit federal programs including the Paycheck Protection Program (“PPP”), Economic Injury Disaster Loans (“EIDL”), Unemployment Insurance (“UI”), the Main Street Lending Program (“MSLP”), the Emergency Rental Assistance Program (“ERAP”), as well as government Healthcare programs such as Medicare (“HCF”). Collectively, these defendants sought to defraud the United States of over $85 million. Fifty-six of those defendants have already been found guilty, while prosecution remains pending against 21 defendants. (See chart for criminal case details.) In fiscal year 2023, the Task Force indicted 26 COVID-19 fraud related cases in which defendants sought to obtain more than $15 million from the various federal programs.
For example, in October 2023, U.S. District Judge Thomas P. Barber sentenced Denis Casseus to two years in federal prison for bank fraud and an illegal monetary transaction. As part of his sentence, the court also entered an order of forfeiture in the amount of $298,875, the proceeds of the bank fraud. According to court documents, Casseus submitted two fraudulent PPP applications, in which he falsely represented that the PPP funds would be used only for business-related purposes, as specified in the loan applications. Instead, Casseus used a portion of the fraudulent-obtained money for the purchase a residence in Cape Coral.
In a separate matter, United States District Judge Kathryn Mizelle sentenced Vitalii Chychasov to eight years in federal prison for conspiracy to commit access device fraud and trafficking in unauthorized access devices. Chychasov was an administrator of a series of websites that sold Social Security numbers. During the early stages of the COVID-19 pandemic, traffic to and purchases on the website increased dramatically due to individuals purchasing Social Security numbers and other personal information in order to commit COVID-19 fraud, primarily unemployment insurance fraud.
Further, the USAO-MDFL’s Asset Recovery Division and federal seizing agencies have completed the forfeiture of more than $20 million of EIDL, UI, and PPP funds that were fraudulently obtained, depriving the fraudsters of their ill-gotten gains and recovering the proceeds for the victims. More than $18 million in additional pandemic fraud proceeds have been seized and are pending civil or criminal forfeiture.
The U.S. Attorney General has 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. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Through the PPP, the federal government authorized over $600 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. The EIDL program provides economic relief to small businesses that are currently experiencing a temporary loss of revenue. The MSLP provided support to small and medium-sized businesses and their employees across the United States during the COVID-19 pandemic. UI programs provided unemployment benefits to eligible workers who became unemployed through no fault of their own.
The criminal cases charged by the Middle District of Florida COVID-19 Fraud Task Force have been investigated by the Federal Bureau of Investigation, the U.S. Secret Service, Internal Revenue Service—Criminal Investigation, the Department of Labor—Office of Inspector General, the U.S. Postal Service, the Federal Housing Finance Agency, the Small Business Administration, the Small Business Administration—Office of Inspector General, the Federal Deposit Insurance Corporation—Office of Inspector General, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Special Inspector General for Pandemic Recovery, Federal Reserve Board—Office of Inspector General, Department of Health and Human Services—Office of Inspector General, the Metropolitan Bureau of Investigation, the Tampa Police Department, the Orlando Police Department, the Jacksonville Sheriff’s Office, the Manatee County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the Sarasota County Sheriff’s Office, the Winter Park Police Department, the Osceola County Sheriff’s Office, the Seminole County Sheriff’s Office, and the Orange County Sheriff’s Office. The cases are being prosecuted by Assistant United States Attorneys throughout the Middle District of Florida.
The Department of Justice needs the public’s assistance in remaining vigilant and reporting suspected fraudulent activity. To report suspected fraud, contact the National Center for Disaster Fraud (“NCDF”) at (866) 720-5721 or file an online complaint at: https://www.justice.gov/disaster-fraud/webform/ncdf-disaster-complaint-form. Complaints filed will be reviewed at the NCDF and referred to federal, state, local, or international law enforcement or regulatory agencies for investigation.
United States Attorney’s Office for the Middle District of Florida
COVID Fraud Criminal Cases
Charged Cases
Defendant(s) (Age)
Charge(s)
Max. Imprisonment
Type of Fraud*
Intended Loss
Amount
Tampa Division
Alexander Alli
Wire fraud conspiracy
Maximum Prison Term: 20 Years
EIDL
$80k
Ellyn Pinkney
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$40k
Kieanna Garrett
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$40k
Nicole Bramble-King
Wire fraud
Maximum Prison Term: 20 Years
PPP
$40k
Mehdi Tazi
Conspiracy
Maximum Prison Term: 5 years
Wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
UI
$1.5M
Modupe Ogundele
Wire fraud
Maximum Prison Term: 20 Years
PPP
$20k
Devontaie Deravil
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$480k
Jordan Ross
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
EIDL/PPP
$1.3M
Demarius Wilson
Wire fraud
Maximum Prison Term: 20 Years
PPP
$18k
Tommy Louisville
Wire fraud
Maximum Prison Term: 20 Years
PPP
$33k
Dawn Ogundele
Theft of government funds
Maximum Prison Term: 10 years
False statement to obtain federal employees’ compensation
Maximum Prison Term: 5 years
Wire fraud
Maximum Prison Term: 20 Years
PPP
$20k
These COVID Fraud cases from the Tampa Division are being handled by AUSAs Rachel Jones, Tiffany Fields, Greg Pizzo, Candace Rich, Jennifer Peresie, and Michael Kenneth
Orlando Division
Evan Edwards
Joshua Edwards
Conspiracy to commit bank fraud
Maximum Prison Term: 30 years
Bank fraud
Maximum Prison Term: 30 years
Visa fraud
Maximum Prison Term: 10 years
False statements
Maximum Prison Term: 30 years
PPP
$8M
Emmet Bowens
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$740k
Latresia Wilson
False statements
Maximum Prison Term: 20 Years
HCF
$2.6M
These COVID Fraud cases from the Orlando Division are being handled by AUSAs Kara Wick, Amanda Daniels, and DOJ Trial Attorney Keith Clouser
Jacksonville Division
James Wigg
Wire Fraud
Maximum Prison Term: 20 years
PPP
$476k
This COVID Fraud case from the Jacksonville Division is being handled by AUSA Tysen Duva
Fort Myers Division
Venera Price
Mail fraud
Maximum Prison Term: 20 Years
ERAP
$82k
Timothy Jolloff
Wire fraud
Maximum Prison Term: 20 Years
Money laundering
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP/EIDL
$2.1M
Lisa Jolloff
Money laundering
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP/EIDL
Diop McKenzie
Bank fraud
Maximum Prison Term: 30 years
Wire fraud
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
EIDL/PPP
$237k
These COVID Fraud cases from the Fort Myers Division are being handled by AUSAs Yolande Viacava and Trent Reichling
Ocala Division
Henry Wade
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$500k
This COVID Fraud case from the Ocala Division is being handled by AUSA Hannah Nowalk
Adjudicated Cases
Tampa Division
Joseph Abdo
Wire fraud
Maximum Prison Term: 20 Years
Illegal monetary transactions
Maximum Prison Term: 10 Years
PPP
$500k
Keaujay Hornsby
Racketeering conspiracy
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$3M
Kareem Spann
Racketeering conspiracy
Maximum Prison Term: 20 Years
Aggravated identity theft
Maximum Prison Term: Two Years Consecutive
Access device fraud
Maximum Prison Term: 10 Years
UI
$3M
Marqus Willard Johnson
Bank fraud
Maximum Prison Term: 30 Years
Money laundering
Maximum Prison Term: 20 Years
PPP
$500k
Charles Cunningham
Bank fraud
Maximum Prison Term: 30 years
PPP
$800k
These COVID Fraud cases from the Tampa Division are being handled by AUSAs Rachel Jones, Diego Novaes, Tiffany Fields, Jennifer Peresie, and Greg Pizzo, and DOJ Trial Attorney John Scanlon
Orlando Division
Joseph Faubert
Bank fraud
Maximum Prison Term: 30 years
PPP
$778k
This COVID Fraud case from the Orlando Division is being handled by AUSAs Chauncey Bratt
Jacksonville Division
Christopher Daragjati
Wire fraud
Maximum Prison Term: 20 Years
Theft of government funds
Maximum Prison Term: 10 Years
Aggravated identity theft
Maximum: Prison Term: Two Years Consecutive
PPP
$150k
This COVID Fraud case from the Jacksonville Division is being handled by AUSAs Kevin Frein and Michael Coolican
Ocala Division
Passion Jackson
Wire fraud
Maximum Prison Term: 20 Years
PPP
$20K
This COVID Fraud case from the Ocala Division is being handled by AUSA Hannah Nowalk
Fort Myers Division
Evan Graves
Wire fraud
Maximum Prison Term: 20 Years
EIDL
$1.3M
This COVID Fraud case from the Fort Myers Division is being handled by AUSAs Yolande Viacava and Simon Eth
Sentenced Cases
Tampa Division
Alexander Leszczynski
Wire fraud, bank fraud, illegal monetary transactions
Sentence Imposed: 17 and ½ years in federal prison
PPP
$1.1M
Louis Thornton, III
Wire fraud
Sentence Imposed: 42 months in federal prison
EIDL/PPP
$815k
Kary Stevenson
Corey Quinn
Conspiracy to commit access device fraud and aggravated identity theft
Sentence Imposed: 5 years, 10 months in federal prison (Stevenson)
Sentence Imposed:7 years in federal prison (Quinn)
UI
$1M
Bridgitte Keim
Bank fraud
Sentence Imposed: 2 years in federal prison
PPP
$588k
Wayne Ganaway
Conspiracy to commit wire fraud
Sentence Imposed: 4 years in federal prison
EIDL
$300k
Eriaius Bentley
Racketeering conspiracy, aggravated identity theft, access device fraud
Sentence Imposed: One year in federal prison
UI
$3M
Rolanda Wingfield
Access device fraud, aggravated identity theft
Sentenced Imposed: 3 years in federal prison
UI
$135k
Tywon Spann
Racketeering conspiracy, aggravated identity theft, access device fraud
Sentence Imposed: 6 years and 9 months in federal prison
UI
$3M
Randy Jones
Wire fraud, aggravated identity theft
Sentence Imposed: 5 years and 1 month in federal prison
EIDL/UI
$250k
Julio Lugo
Conspiracy to commit money laundering
Sentence Imposed: 7 years and 6 months in federal prison
EIDL/PPP
$4.4M
Keith Nicoletta
Conspiracy to commit money laundering
Sentence Imposed: 24 months in federal prison
PPP
$1.9M
Rosenide Venant
Conspiracy to commit money laundering
Sentence Imposed: 5 years in federal prison
EIDL/PPP
$413k
Melinda Hernandez
Conspiracy to commit wire fraud,
wire fraud and aggravated identity theft
Sentence imposed: Three years and six months in federal prison
UI
$1.5M
Bri’antina Mills
Wire fraud and theft of government funds
Sentence imposed: 15 months in federal prison
EIDL
$10K
Jorge Gutierrez Echeverria
Wire fraud
Sentence imposed: Two years and six months in federal prison
EIDL
$150k
Omar Esquivel Bello
Wire fraud
Sentence imposed: 15 months in federal prison
EIDL
$242k
Steve Moodie
Conspiracy to commit wire fraud, wire fraud, aggravated identity theft
Sentence imposed: 5 years and 10 months in federal prison
UI
$1.5M
Richard Simpkins
Conspiracy to commit money laundering
Sentence imposed: 5 years and 10 months in federal prison
PPP
$1.9M
Devaris McClain
Conspiracy to commit wire fraud, access device fraud
Sentence imposed: 5 years and 1 month in federal prison
UI
$85K
Jalissa McDuffy
Wire fraud
Sentence imposed: 3 years supervised release with 6 months home detention
PPP
$41k
These COVID Fraud cases from the Tampa Division were handled by AUSAs Rachel Jones, Greg Pizzo, Tiffany Fields, Diego Novaes, Jennifer Peresie, and SAUSA Chris Poor
Orlando Division
Daniel Johnson
Conspiracy to commit wire fraud, aggravated identity theft, unlawful transfer of firearm
Sentence Imposed: 7 years, 6 months in federal prison
UI
$2.3M
Jacquavius Smith
Possession of short-barreled rifle; felon in possession of firearm; and aggravated identity theft
Sentence Imposed: 7 years, 1 month in federal prison
PPP
$10k
Johnson Eustache
Wire fraud
Sentence Imposed: 5 years in federal prison
EIDL/PPP
$2.2M
Joseph Harrison
Conspiracy to commit wire fraud
Sentence Imposed: 12 months in federal prison
UI
$2.1M
Tomas Ziupsnys
Conspiracy to commit bank fraud; bank fraud; aggravated identity theft
Sentence Imposed: 5 years in federal prison
PPP
$2M
Holly Urban
Conspiracy to commit bank fraud
Sentence Imposed: 30 months in federal prison
PPP
$1.5M
Joel Greenberg
Conspiracy to commit wire fraud and other offenses while on pretrial release
Sentence Imposed: 11 years in federal prison
EIDL
$430k
Don Cisternino
Wire fraud, illegal monetary transactions, and aggravated identity theft
Sentence Imposed: 8 years and 6 months in federal prison
PPP
$7.2M
Keith Ingersoll
Conspiracy to commit wire fraud, wire fraud, aggravated identity theft
Sentence imposed: 9 years, 1 month in federal prison.
EIDL
$66k
Jaheim Davis
Access device fraud and aggravated identity theft
Sentence imposed: 3 years, 6 months in federal prison.
UI
$219k
Teresa McIntyre
Conspiracy to commit wire fraud and other offenses
Sentence Imposed: 5 years’ probation
EIDL
$730k
Brian Blake
Possession of device-making equipment, access device fraud, aggravated identity theft
Sentence Imposed: 9 years and 8 months in federal prison
PPP/UI
$832k
These COVID Fraud cases from the Orlando Division were handled by AUSAs John Gardella, Amanda Daniels, Chauncey Bratt, Emily Chang, Shannon Laurie, and Jennifer Harrington, and U.S. Attorney Roger Handberg
Jacksonville Division
Jacob Byrd
Wire fraud
Sentence Imposed: 5 years’ probation
PPP
$10k
Deconna Burke
Wire fraud
Sentence Imposed: 5 years’ probation
PPP
$20k
Desmond Williams
Wire fraud conspiracy, wire fraud
Sentenced Imposed: 5 years’ probation
PPP
$40k
Kenneth Landers
Wire fraud and illegal monetary transaction
Sentence Imposed: 1 year in federal prison followed by 1 year of supervised release
PPP
$1.4M
These COVID Fraud cases from the Jacksonville Division were handled by AUSAs Kevin Frein and Michael Coolican
Fort Myers Division
Casey Crowther
Bank fraud, false statement to a financial institution, illegal monetary transaction
Sentence Imposed: 3 years, 1 month in federal prison
PPP
$2.7M
Anthony Bruey
Amber Bruey
Conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, illegal monetary transactions
Sentence Imposed:
Anthony Bruey: 4 years, 3 months in federal prison
Amber Bruey: 4 years in federal prison
PPP/EIDL
$881k
Edrica Leann Watson
False statement to a lending institution
Sentence Imposed: 15 months in federal prison
PPP
$392k
Daniel Joseph Tisone
Wire fraud, bank fraud, money laundering, aggravated identity theft, possession of ammunition by a prohibited person
Sentence Imposed: 7 years in federal prison
PPP/EIDL/MSLP
$10.7M
Liliana Gonzalez
Wire fraud
Sentence Imposed: 5 years of probation with 18 months of home confinement
PPP
$169k
Al Clint LaRoche
Bank fraud
Sentence Imposed: Two years in federal prison
PPP
$1M
Denis Casseus
Bank fraud and illegal monetary transaction
Sentence Imposed: 2 years in federal prison followed by 3 years supervised release
PPP
$298k
Ismaelle Manuel
Bank fraud
Sentence Imposed: Credit for time served followed by 5 years supervised release
PPP
$280k
These COVID Fraud cases from the Fort Myers Division were handled by AUSAs Trent Reichling, Michael Leeman, Jesus Casas, and Yolande Viacava
Ocala Division
Lavelle Harris
Wire fraud
Sentence Imposed: Two years and three months in federal prison
PPP
$1.2M
This COVID Fraud case from the Ocala Division was handled by AUSA Hannah Nowalk
Types of Fraud*
Economic Injury Disaster Loan (EIDL)
Paycheck Protection Program (PPP)
Unemployment Insurance (UI)
Main Street Lending Program (MSLP)
Emergency Rental Assistance Program (ERAP)
Health Care Fraud (HCF)
Mexican man imprisoned for possessing almost 100 kilograms of cocaineRead the Press Release
McALLEN, Texas – A 44-year-old Mexican citizen has been ordered to prison for possession with intent to distribute 98 kilograms of cocaine, announced U.S. Attorney Alamdar S. Hamdani.
Gabriel Alejandro Aguirre-Garcia pleaded guilty Aug. 18, 2023.
U.S. District Judge Micaela Alvarez has now ordered Aguirre-Garcia to serve 108 months in federal prison. Not a U.S. citizen, Aguirre-Garcia is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence that Aguirre-Garcia had been working for the drug trafficking organization for at least six months and during that that time, he received cocaine two to three times per week and stored it in a dresser in his daughter’s bedroom prior to delivering it to other individuals. In handing down the sentence, the court noted that he put his family in jeopardy by storing the drugs in his home and how lucky his family was that they were never victims of a home invasion by a rip crew. Judge Alvarez told Aguirre-Garcia that she would have hoped that it crossed his mind how dangerous his involvement this crime was.
On Dec. 6, 2022, law enforcement conducted a traffic stop on a Ford F-150 truck and identified the driver as Aguirre-Garcia. He granted consent to search his vehicle, and a K-9 alerted authorities to a toolbox in the truck for the odor of narcotics. A search of the toolbox revealed 20 bundles of cocaine.
Law enforcement arrived on scene and Aguirre-Garcia also gave consent to search his house located in McAllen. That search led to the discovery of 66 bundles of cocaine in a dresser drawer. Aguirre-Garcia stated he was being paid to store and transport the narcotics.
The 86 bundles of cocaine seized weighed approximately 98 kilograms and have a street value of $1,176,000.
Aguirre-Garcia will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation with the assistance of the McAllen Police Department. Assistant U.S. Attorney M. Alexis Garcia prosecuted the case.
Methamphetamine Trafficker Is Sentenced to 11+ Years in PrisonRead the Press Release
ASHEVILLE, N.C. – James Leon Massey, 52, of Whittier, N.C., was sentenced to 139 months in prison today followed by five years of supervised release for possession with intent to distribute methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, Sheriff Doug Farmer of the Jackson County Sheriff’s Office, and Chief Chris Hatton of the Sylva Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, on April 1, 2022, at approximately 10:01 p.m., law enforcement conducted a traffic stop of a car driven by Massey for a motor vehicle violation. After stopping the vehicle, law enforcement determined that Massey was driving with a suspended license. Court documents show that over the course of the traffic stop law enforcement conducted a search of Massey’s vehicle. During the search, law enforcement located in the back area of the vehicle’s floorboard a plastic container that contained approximately a kilogram of methamphetamine.
On March 27, 2023, Massey pleaded guilty to possession with intent to distribute methamphetamine. Massey remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
U.S. Attorney King thanked the DEA, the Jackson County Sheriff’s Office, and the Sylva Police Department for their investigation of the case.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville handled the prosecution.
Maryland Man Sentenced to 12 Months in Prison for Felony Bail Reform Act ViolationsRead the Press Release
WASHINGTON – Ranjith Keerikkattil, 35, formerly of Catonsville, Md., was sentenced by the Honorable Heidi Pasichow to 12 months of incarceration, three years of supervised release and ordered to stay away from the stalking victim and her family following his jury verdict for felony violations of the Bail Reform Act, U.S. Attorney Matthew M. Graves announced today.
Keerikkattil was found guilty of stalking a former co-worker on July 9, 2018, following a jury trial in the Superior Court of the District of Columbia. The Honorable Robert A. Salerno released Keerikkattil following the verdict, pending sentencing. The judge ordered him to appear the next morning to have a GPS monitoring device installed. However, he failed to appear, and fled the United States, instead, traveling through Iceland and ending up in Australia where he remained a fugitive for over four years. A grand jury subsequently indicted him on July 11, 2018, for a felony charge of violating the Bail Reform Act. The grand jury returned a superseding indictment on March 1, 2023, charging an additional violation of the Bail Reform Act for failing to return as ordered for his sentencing on September 14, 2018.
On November 13, 2023, Keerikkattil was found guilty by a second jury for his failures to appear as ordered in 2018, resulting in felony convictions for violating the Bail Reform Act on July 10, 2018 and September 14, 2018.
In announcing this sentencing result and convictions, U.S. Attorney Matthew M. Graves commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Lynda Randolph and Stephanie Siegerist, Victim/Witness Advocate Jennifer Allen, and Victim/Witness Services Coordinator La June Thames.
Finally, he commended the work of Assistant U.S. Attorneys Ethan Carroll, Kristina Wolf, and John Parron who assisted in investigating and preparing the case, and Assistant U.S. Attorneys John G. Giovannelli and Rashmika Nedungadi who prosecuted and tried the case through the jury’s verdict and the sentencing today.
Marshalltown Man Sentenced to 21 Months in Prison for Disaster-Related Insurance FraudRead the Press Release
DES MOINES, Iowa – On January 11, 2024, a Marshalltown man was sentenced to 21 months in prison after pleading guilty to crimes of insurance fraud.
In 2018, following the EF-3 tornado that hit Marshalltown, Iowa, Timothy D. Sletten, 32, engaged in two separate schemes to defraud State Farm, the insurer of Sletten’s numerous residential rental properties, including presenting false work invoices for claim benefits. Again in 2020, following the derecho disaster in Marshalltown, Sletten presented false work invoices from contractors alleging he had paid the contractors for repairs to disaster-related damage to his rental homes when in fact he had not done so. As a result of these fraudulent schemes, State Farm paid Sletten loss claim benefits totaling just over $180,000. Following the 2020 derecho, State Farm opened an internal investigation that caused the company to deny payment of disaster-related claims made by Sletten.
Additionally, Sletten was fined $50,000 and ordered to pay full restitution. Following his prison term, Sletten will be required to serve three years of federal supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa Insurance Fraud Bureau and the Marshalltown Police Department investigated the case. Assistant United States Attorney Laura M. Roan prosecuted the case.
Marathon County Man Sentenced to 7 Years for Possessing Fentanyl Intended for DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jacob L. Gould 34, Weston, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 7 years in federal prison for possessing 40 grams or more of fentanyl with intent to distribute. Gould pleaded guilty to this charge on October 25, 2023.
Law enforcement began investigating Gould for drug trafficking after receiving information from several confidential informants. On January 6, 2023, after learning that Gould had visited the location of his drug supplier, officers attempted to stop and arrest him. Gould fled, leading law enforcement on a high-speed chase that reached speeds of 112 miles per hour. Law enforcement eventually stopped Gould’s car, but Gould fled on foot and threw a bag along the way. Officers ultimately arrested Gould and recovered the bag, which contained 102 grams of fentanyl. During a post-arrest interview, Gould admitted he had picked up the 100 grams of fentanyl to sell it. He also admitted picking up 70 grams of fentanyl days prior for the same purpose.
Officers searched Gould following his arrest and, in his pocket, found a key to a safe. Law enforcement then searched Gould’s home and located the safe. Inside, they found a Glock handgun, fentanyl, and methamphetamine.
At sentencing, Judge Conley described Gould’s fentanyl trafficking as a serious offense that endangered the community.
The charge against Gould was the result of an investigation conducted by FBI’s Central Wisconsin Narcotics Task Force, comprised of investigators from the FBI, Everest Metro Police Department, Marathon County Sheriff’s Office, Wisconsin State Patrol, Lincoln County Sheriff's Office, Wausau Police Department and Wisconsin National Guard Counter Drug Program, with the assistance of the Marathon County District Attorney’s Office. Assistant U.S. Attorneys Anita Marie Boor and Jennifer Remington prosecuted this case.
Man Sentenced to More Than Five Years in Prison for Illegally Handling Hazardous Waste in Hawaii and Possessing a Stolen Firearm in KansasRead the Press Release
Anthony Shane Gilstrap was sentenced today to 63 months in prison for violating the Resource Conservation and Recovery Act (RCRA) by illegally transporting hazardous waste in Hawaii, and to possessing a stolen firearm in Kansas. Gilstrap, who had pleaded guilty to the crimes in April, will also serve three years of supervised release during which time he will participate in treatment and programs for mental health, cognitive behavior and substance abuse.
Photo of barrels containing hazardous waste. Image is from the sentencing memo of United States v. Anthony Gilstrap, Case no. 6:21-cr-10079.According to documents filed in court, Gilstrap violated the RCRA in Hawaii by contracting to remove 35 drums of the hazardous waste perchloroethylene (perc) from a dry-cleaning operation in Honolulu in January 2017. Gilstrap offered, at a steep discount, to take away the illegally stored, spent solvent. He did not use required safeguards like an RCRA hazardous waste manifest, which traces waste to its ultimate disposal site. Gilstrap moved the drums to a warehouse he controlled where it sat for months without a required permit. He forged a manifest after government officials asked about the drums, falsely saying he had shipped the drums to Oregon.
The company that owned the dry-cleaning operation and its Hawaii regional manager have pleaded guilty and been sentenced. The drums of waste perc were ultimately disposed of properly. Law enforcement in Kansas later stopped Gilstrap for a traffic violation and found in his truck a handgun, which Gilstrap admitted was stolen. The cases of handgun and RCRA violations were consolidated for Gilstrap’s plea and sentencing.
“Laws like the Resource Conservation and Recovery Act help protect people and our environment from hazardous waste exposure by requiring safe transportation and storage practices,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “We are glad that this unusual case was ultimately resolved without prolonged and serious harm.”
“The illegal storage and transportation of hazardous waste poses very serious public health danger,” said Assistant Special Agent in Charge Benjamin Carr of the Environmental Protection Agency’s (EPA) criminal enforcement program in Hawaii. “Today’s sentencing demonstrates that EPA and our law enforcement partners are committed to protecting the American people from reckless criminal activity that jeopardizes human health and the environment.”
U.S. District Judge Eric F. Melgren for the District of Kansas issued the sentence.
EPA’s Criminal Investigation Division; the Sumner (Kansas) County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case
Senior Counsel Krishna Dighe of the Justice Department’s Environmental Crimes Section, Assistant U.S. Attorney Oladotun O. Odeyemi for the District of Kansas and Assistant U.S. Attorney Gregg Paris Yates for the District of Hawaii prosecuted the case.
Madeira Beach Woman Arrested for Access Device FraudRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Heidi Richards (50, Madeira Beach) with one count of conspiracy to commit an offense against the United States, one count of trafficking in illicit labels, two counts of trafficking in unauthorized access devices, and one count of possession of 15 or more access devices. If convicted, Richards faces a maximum penalty of 5 years in federal prison for the conspiracy offense and for trafficking in illicit labels. She faces up to 10 years in federal prison for each access device offense. The indictment also notifies Richards that the United States is seeking an order of forfeiture for proceeds obtained from the offense.
According to the indictment, beginning at least as early as August 2017, Richards conspired with an unindicted coconspirator to obtain and traffic in illicit labels designed to be affixed to Microsoft software products. Richards sent wire transfers and payments totaling at least $5.14 million during that time to a company owned by the unindicted coconspirator to pay for and acquire software products. Richards also trafficked in Microsoft product activation keys that she or her company were not authorized to sell and obtained proceeds totaling $1,000 or more as a result in calendar years 2020 and 2022. Richards similarly possessed 15 or more unauthorized Microsoft product activation keys on March 8, 2023.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Risha Asokan and Trial Attorney Jared S. Hosid of the Criminal Division’s Computer Crime and Intellectual Property Section.
Download IndictmentLincoln Man Sentenced to 16 Months for Possession of AmmunitionRead the Press Release
Acting United States Attorney Susan Lehr announced that Tevin T. Randolph, 23, of Lincoln, Nebraska, was sentenced on January 17, 2024, in federal court in Lincoln for being a felon in possession of ammunition. Senior United States District Court Judge John M. Gerrard sentenced Randolph to 16 months’ imprisonment. There is no parole in the federal system. After Randolph’s release from prison, he will begin a 3-year term of supervised release.
On May 21, 2023, at about 3:00 am, police dispatch received 911 calls. The callers reported hearing people yelling, followed by gun shots, and then glass breaking. Police responded to the apartment complex where Randolph lived. The window to his apartment was broken and soil was observed scattered inside and outside the apartment. Randolph was observed yelling when police arrived. The dispute, according to Randolph, was between him and two women.
Police observed a live round of ammunition on the carpet just inside the doorway to Randolph’s apartment. Randolph denied knowing it was there. Randolph agreed to allow police to search his apartment. When police later went to retrieve the round of ammunition, it was gone. They asked Randolph where it went, and he said he did not know. A later review of an officer’s body camera recording would show Randolph picking it up off the ground and putting it into his pocket. During the search of Randolph’s apartment, a Glock magazine, loaded with six rounds of 9mm ammunition was found in a drawer near a stove in the kitchen. Officers also discovered four fired shell casings on the ground near a sidewalk beneath Randolph’s balcony. The officers learned Randolph had an active warrant for his arrest. He was searched incident to his arrest and the round of ammunition which the officers had seen earlier on the floor in Randolph’s apartment was found in his pocket. Randolph was prohibited from possessing ammunition due to prior felony convictions for assaulting an officer and for being a felon in possession of a firearm. Randolph pleaded guilty to his offense on October 19, 2023.
This case was investigated by the Lincoln Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Las Vegas Man Sentenced to 16 Years in Prison for Selling MethamphetamineRead the Press Release
LAS VEGAS – A Las Vegas resident who has prior felony convictions was sentenced Tuesday to 16 years in prison for conspiring to distribute methamphetamine.
According to court documents, between October 26, 2021 and December 30, 2021, Dean Romero (55) conspired with others to distribute methamphetamine. On October 26, 2021, Romero sold 143.5 grams of methamphetamine,7.9 grams of liquid fentanyl, and a .22 caliber handgun in a store parking lot. On December 1, 2021, in the same parking lot, he sold 357 grams of methamphetamine and a 9mm pistol with no serial number. On December 30, 2021, he sold 470.7 grams of methamphetamine and a privately made AR-15-style firearm equipped with an extended magazine and a silencer in a hotel casino parking lot.
Romero has been previously convicted of burglary, forgery, perjury, identity theft, possession or distribution of controlled substances, and firearms offenses. He pleaded guilty on July 6, 2023, to conspiracy to distribute a controlled substance. In addition to the term of imprisonment, United States District Judge Jennifer A. Dorsey sentenced Romero to five years of supervised release.
“This prosecution exemplifies our outstanding partnership with the FBI in removing dangerous individuals who sell drugs and firearms from our communities,” said United States Attorney Jason M. Frierson for the District of Nevada. “Fentanyl and methamphetamine are deadly drugs that have taken too many lives. The two firearms sold did not have serial number markings which made them untraceable and even more dangerous for law enforcement.”
“Our community is safer today,” said Special Agent in Charge Spencer L. Evans for the FBI. “There is no doubt lives across our state were saved from the devastating impact of these dangerous drugs and firearms crimes. We will continue to work with our law enforcement partners to investigate, disrupt, and hold accountable those who insist on sowing destruction in our neighborhoods.”
The case was investigated by the FBI. Assistant United States Attorneys Joshua Brister and Kimberly Sokolich prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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Lake County Man Sentenced to 21 Months in Prison for Possessing A Firearm as A Convicted FelonRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Brian David Casey (35, Clermont) to 21 months in federal prison for possessing a firearm as a convicted felon. Casey had pleaded guilty on August 24, 2023.
According to the court records, Casey was previously convicted of three felonies, including burglary (2008) and two counts of battery on a law enforcement officer (2011). As a convicted felon, Casey is prohibited from possessing firearms and ammunition under federal law.
On March 20, 2023, Casey pointed a loaded shotgun at his neighbor, telling her that he was going to kill her. When Casey’s wife pushed the firearm’s barrel away, Casey fired the shotgun into the ground. Casey later admitted that he intended to discharge the firearm, calling it a “warning shot.” When federal agents subsequently arrested Casey for this offense, Casey was found to be in possession of another firearm—a loaded revolver.
This case was investigated by the Lake County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Hannah Nowalk.
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.
Justice Department Sues Nevada to Protect Pension Rights of Military ServicemembersRead the Press Release
The Justice Department announced today that it has filed a lawsuit against the State of Nevada, Nevada Attorney General’s Office and Public Employees’ Retirement System of Nevada (NVPERS) to protect the employment pension rights of servicemembers who are called to serve their country on military service. The Justice Department alleges that when state employees are reemployed after military service, NVPERS violates the Uniformed Services Employment and Reemployment Act of 1994 (USERRA) by overcharging those servicemembers when calculating their contribution to their pension plans.
“When rehiring servicemembers, the law requires employers to not only return the veterans to their rightful positions, but also to protect their pension rights,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “The Justice Department is committed to ensuring that those who sacrifice so much to protect this country do not have to sacrifice their civilian employment rights, including their pensions.”
“USERRA protects a servicemember’s reemployment rights after returning from military service to their civilian employment,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “Every person who has served in our country’s uniformed services deserves the full protection of our employment laws and we will continue to work with the Civil Rights Division’s Employment Litigation Section to protect servicemembers’ rights.”
According to the complaint, when Nevada state employees pass their five-year employment anniversary, they can purchase pension credits in the state’s pension system operated by NVPERS. NVPERS charges the employee for these pension credits based on the employee’s age and salary at the time of the purchase. USERRA requires employers to restore returning servicemembers’ pension benefits as if they had not been called away to military service. Servicemembers who are away on military service when they pass their five-year anniversary cannot purchase pension credits until they have returned from military duty. As alleged in the complaint, NVPERS violated USERRA by charging reemployed servicemembers based on their age and salary when they were reemployed, rather than their age and salary when they passed their five-year anniversary.
As explained in the complaint, Major Charles Lehman was an employee in Nevada’s Office of the Attorney General who was called to active duty with the Nevada National Guard on a multi-year term of duty during which he passed his five-year anniversary with the Attorney General’s Office. When he was released from military service and returned to his civilian job, NVPERS overcharged him for his pension credits based on his increased age and salary, an amount that exceeded the amount he would have owed, had he not been away on military service, by more than $38,000. As alleged, NVPERS’ policy of overcharging for these pension credits impacted other state employees returning from military service. The Justice Department seeks to have NVPERS change its policy of overcharging servicemembers, and refund Lehman and any other affected reemployed servicemembers the amounts previously overcharged.
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations and provides that servicemembers shall not be discriminated against because of their military obligations. The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/servicemembers and www.justice.gov/crt-military/employment-rights-userra as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
This case stems from a referral by the DOL after an investigation by the DOL’s Veterans’ Employment and Training Service.
Senior Trial Attorney Jeffrey Morrison of the Civil Rights Division’s Employment Litigation Section is handling the case.
Justice Department Sues Nevada to Protect Pension Rights of Military ServicemembersRead the Press Release
LAS VEGAS – The Justice Department announced today that it has filed a lawsuit against the State of Nevada, Nevada Attorney General’s Office and Public Employees’ Retirement System of Nevada (NVPERS) to protect the employment pension rights of servicemembers who are called to serve their country on military service. The Justice Department alleges that when state employees are reemployed after military service, NVPERS violates the Uniformed Services Employment and Reemployment Act of 1994 (USERRA) by overcharging those servicemembers when calculating their contribution to their pension plans.
“When rehiring servicemembers, the law requires employers to not only return the veterans to their rightful positions, but also to protect their pension rights,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “The Justice Department is committed to ensuring that those who sacrifice so much to protect this country do not have to sacrifice their civilian employment rights, including their pensions.”
“USERRA protects a servicemember’s reemployment rights after returning from military service to their civilian employment,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “Every person who has served in our country’s uniformed services deserves the full protection of our employment laws and we will continue to work with the Civil Rights Division’s Employment Litigation Section to protect servicemembers’ rights.”
According to the complaint, when Nevada state employees pass their five-year employment anniversary, they can purchase pension credits in the state’s pension system operated by NVPERS. NVPERS charges the employee for these pension credits based on the employee’s age and salary at the time of the purchase. USERRA requires employers to restore returning servicemembers’ pension benefits as if they had not been called away to military service. Servicemembers who are away on military service when they pass their five-year anniversary cannot purchase pension credits until they have returned from military duty. As alleged in the complaint, NVPERS violated USERRA by charging reemployed servicemembers based on their age and salary when they were reemployed, rather than their age and salary when they passed their five-year anniversary.
As explained in the complaint, Major Charles Lehman was an employee in Nevada’s Office of the Attorney General who was called to active duty with the Nevada National Guard on a multi-year term of duty during which he passed his five-year anniversary with the Attorney General’s Office. When he was released from military service and returned to his civilian job, NVPERS overcharged him for his pension credits based on his increased age and salary, an amount that exceeded the amount he would have owed, had he not been away on military service, by more than $38,000. As alleged, NVPERS’ policy of overcharging for these pension credits impacted other state employees returning from military service. The Justice Department seeks to have NVPERS change its policy of overcharging servicemembers, and refund Lehman and any other affected reemployed servicemembers the amounts previously overcharged.
USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations and provides that servicemembers shall not be discriminated against because of their military obligations. The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/servicemembers and www.justice.gov/crt-military/employment-rights-userra as well as on the Department of Labor’s (DOL) website at www.dol.gov/vets/programs/userra.
This case stems from a referral by the DOL after an investigation by the DOL’s Veterans’ Employment and Training Service.
Senior Trial Attorney Jeffrey Morrison of the Civil Rights Division’s Employment Litigation Section and Assistant United States Attorney Ednin Martinez of the District of Nevada are handling the case.
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Justice Department Secures Agreement with Patriot Bank to Resolve Lending Discrimination ClaimsRead the Press Release
WASHINGTON – The Justice Department announced today that Patriot Bank (Patriot) has agreed to pay $1.9 million to resolve allegations that the bank engaged in a pattern or practice of lending discrimination by redlining majority-Black and Hispanic neighborhoods in Memphis, Tennessee. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in, or seeking to live in, communities of color because of the race, color or national origin of the residents in those communities.
“This settlement embodies Dr. Martin Luther King Jr.’s commitment to promoting economic justice and ensuring that Black Americans and all communities of color are able to achieve the American dream, and equally access credit to purchase a home.,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is dedicated to stamping out discriminatory lending practices across this country and we are vigorously committed to holding lenders accountable, no matter their size. This settlement will provide many Memphis families with access to credit that will improve the quality of their lives while opening up opportunities to build intergenerational wealth.”
“For too long, practices like redlining and discriminatory lending have been used to undermine the promises of our economic system,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “Our office is committed to enforcing fair lending laws and ensuring that banks and lenders are providing communities of color equal access to credit and lending opportunities. This agreement with Patriot Bank signifies an important step toward preserving economic justice and for communities of color in Memphis as they buy homes, start businesses, and take part in the American Dream.”
The department’s complaint alleges, from 2015 through at least 2020, Patriot avoided providing mortgage services to majority-Black and Hispanic neighborhoods in Memphis and discouraged people seeking credit in those communities from obtaining home loans. Patriot’s home mortgage lending was focused disproportionately on white areas around the City of Memphis. Over the same six-year period, other banks received nearly 3.5 times as many loan applications compared to Patriot in majority-Black and Hispanic neighborhoods in Memphis. Even when Patriot generated loan applications from majority-Black and Hispanic areas, the applicants themselves were disproportionately white.
Under the proposed consent order, which is subject to court approval, Patriot will invest $1.9 million to increase credit opportunities for communities of color in Memphis. Specifically, Patriot will:
- Invest at least $1.3 million in a loan subsidy fund to increase access to home mortgage, home improvement, and home refinance for residents of majority-Black and Hispanic neighborhoods;
- Spend $375,000 for advertising, outreach, consumer financial education and credit counseling focused on majority-Black and Hispanic neighborhoods;
- Spend $225,000 on community partnerships to provide services that increase residential mortgage credit access for residents of those neighborhoods;
- Ensure at least two mortgage loan officers are dedicated to serving majority-Black and Hispanic neighborhoods in the Bank’s service area;
- Employ a Director of Community Lending who will oversee the continued development of lending in communities of color; and
- Continuously assess the communities’ credit needs throughout the term of the consent order.
The department opened its investigation into Patriot’s lending practices after receiving a referral from the bank’s regulator, the Board of Governors of the Federal Reserve System. Patriot cooperated with the department’s investigation and worked with the department to resolve the redlining allegations.
In October 2021, Attorney General Merrick B. Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since 2021, the department has announced 11 redlining cases and secured over $109 million in relief for communities of color that have been the victims of lending discrimination across the country.
Additional information about the department’s fair lending enforcement can be found at www.justice.gov/crt/fair-lending-program-0. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291, or submitting a report online.
View the complaint here.
View the consent order here.
Justice Department Secures Agreement with Patriot Bank to Resolve Lending Discrimination ClaimsRead the Press Release
The Justice Department announced today that Patriot Bank (Patriot) has agreed to pay $1.9 million to resolve allegations that the bank engaged in a pattern or practice of lending discrimination by redlining majority-Black and Hispanic neighborhoods in Memphis, Tennessee. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in, or seeking to live in, communities of color because of the race, color or national origin of the residents in those communities.
“This settlement embodies Dr. Martin Luther King Jr.’s commitment to promoting economic justice and ensuring that Black Americans and all communities of color are able to achieve the American dream, and equally access credit to purchase a home,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is dedicated to stamping out discriminatory lending practices across this country and we are vigorously committed to holding lenders accountable, no matter their size. This settlement will provide many Memphis families with access to credit that will improve the quality of their lives while opening up opportunities to build intergenerational wealth.”
“For too long, practices like redlining and discriminatory lending have been used to undermine the promises of our economic system,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “Our office is committed to enforcing fair lending laws and ensuring that banks and lenders are providing communities of color equal access to credit and lending opportunities. This agreement with Patriot Bank signifies an important step toward preserving economic justice and for communities of color in Memphis as they buy homes, start businesses and take part in the American Dream.”
The department’s complaint alleges, from 2015 through at least 2020, Patriot avoided providing mortgage services to majority-Black and Hispanic neighborhoods in Memphis and discouraged people seeking credit in those communities from obtaining home loans. Patriot’s home mortgage lending was focused disproportionately on white areas around the City of Memphis. Over the same six-year period, other banks received nearly 3.5 times as many loan applications compared to Patriot in majority-Black and Hispanic neighborhoods in Memphis. Even when Patriot generated loan applications from majority-Black and Hispanic areas, the applicants themselves were disproportionately white.
Under the proposed consent order, which is subject to court approval, Patriot will invest $1.9 million to increase credit opportunities for communities of color in Memphis. Specifically, Patriot will:
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Invest at least $1.3 million in a loan subsidy fund to increase access to home mortgage, home improvement and home refinance for residents of majority-Black and Hispanic neighborhoods;
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Spend $375,000 for advertising, outreach, consumer financial education and credit counseling focused on majority-Black and Hispanic neighborhoods;
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Spend $225,000 on community partnerships to provide services that increase residential mortgage credit access for residents of those neighborhoods;
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Ensure at least two mortgage loan officers are dedicated to serving majority-Black and Hispanic neighborhoods in the Bank’s service area;
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Employ a Director of Community Lending who will oversee the continued development of lending in communities of color; and
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Continuously assess the communities’ credit needs throughout the term of the consent order.
The department opened its investigation into Patriot’s lending practices after receiving a referral from the bank’s regulator, the Board of Governors of the Federal Reserve System. Patriot cooperated with the department’s investigation and worked with the department to resolve the redlining allegations.
In October 2021, Attorney General Merrick B. Garland and Assistant Attorney General Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since 2021, the department has announced 11 redlining cases and secured over $109 million in relief for communities of color that have been the victims of lending discrimination across the country.
Additional information about the department’s fair lending enforcement can be found at www.justice.gov/crt/fair-lending-program-0. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291, or submitting a report online.
us_v._patriot_bank_-_complaint_w_exhibits.pdf consent_order_-_patriot_final.pdf-
Jefferson Parish Man Sentenced for Possessing Unregistered SilencerRead the Press Release
NEW ORLEANS, LOUISIANA – GEORGE PETERSON, age 60, a resident of Waggaman, Louisiana, was sentenced on January 9, 2024, by U.S. District Judge Jay C. Zainey to 24 months imprisonment followed by three years of supervised release, along with a $100 mandatory special assessment fee, after previously pleading guilty to possessing an unregistered firearm silencer, in violation of Title 26, United States Code, Sections 5841, 5861(d), and 5871.
According to court documents, Special Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) executed a search warrant at PETERSON’s residence, which also served as the storefront location for his business, PDW Gun Solutions LLC, a federal firearms licensee. During the search, ATF agents discovered a firearm silencer inside a safe in PETERSON’s bedroom. ATF examination of the silencer revealed that ammunition had been fired through it. The silencer was not registered to PETERSON in the National Firearms Registration and Transfer Record, as required by federal statute.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
Jacksonville Man Sentenced to Seven Years in Federal Prison on Fentanyl and Firearms ChargesRead the Press Release
Jacksonville, Florida – Senior United States District Judge Henry Lee Adams, Jr. has sentenced Mario Lenard Elbert (34, Jacksonville) to seven years in federal prison for possession with the intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking offense. Elbert had pleaded guilty on August 22, 2023.
According to court documents, on May 11, 2022, a trooper from the Florida Highway Patrol conducted a traffic stop on Elbert’s vehicle due to traffic violations. Elbert fled from the vehicle on foot during the traffic stop but was apprehended following a short pursuit. Elbert had in his possession 54 grams of fentanyl and a loaded pistol. Elbert is prohibited from possessing firearms due to a South Carolina felony conviction (2019) for possessing a controlled substance with the intent to distribute it.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jacksonville Sheriff’s Office, and the Florida Highway Patrol. The case was prosecuted by Assistant United States Attorney John Cannizzaro.
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.
Jacksonville Convicted Felon Sentenced to 10 Years on Narcotics and Firearms ChargesRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Keith Allen Dixon (46, Jacksonville) to 10 years in federal prison for distribution of 50 grams or more of actual methamphetamine and possession of a firearm by a convicted felon. Dixon had pleaded guilty on October 4, 2023.
According to court documents, on January 6, 2023, Dixon sold methamphetamine to a confidential informant outside a hotel off Lane Avenue in Jacksonville. Dixon also sold two 20-gauge shotguns during the transaction. Dixon is a convicted felon and is prohibited from possessing firearms or ammunition under federal law. At the time, Dixon was on probation following a conviction in Duval County for the possession of a firearm by a convicted felon. Dixon was accountable for at least 146 grams of pure methamphetamine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorney John Cannizzaro.
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.
Insurance Producer Admits Tax Fraud SchemeRead the Press Release
NEWARK, N.J. – A New York man today admitted his role in a $38 million employment tax fraud scheme involving nursing homes he owned across the country, U.S. Attorney Philip R. Sellinger announced.
Joseph Schwartz, 64, of Suffern, New York, pleaded guilty before U.S. district Judge Susan D. Wigenton in Newark federal court to two counts of an indictment charging him with willfully failing to pay over employment taxes withheld from employees of his company, and willfully failing to file an annual financial report with the Department of Labor for the employee 401K Benefit Plan Schwartz sponsored.
U.S. Attorney Philip R. Sellinger“Joseph Schwartz admitted to defrauding the United States by failing to pay over to the IRS more than $38 million in payroll taxes. As an employer, Schwartz was required to withhold trust fund taxes from his employees’ paychecks and then dutifully report and turn those monies over to the IRS. Schwartz broke the law when he willfully withheld trust fund taxes from his employees but pocketed the money he had withheld rather than turning it over to the government; he will now be held accountable for his criminal tax violations.”
“Today’s plea is just one more example of our commitment to investigate and prosecute those who fail to comply with their federal tax obligations,” Tammy Tomlins, IRS – Criminal Investigation Special Agent in Charge of the Newark Field Office, said. “The defendant cheated taxpayers out of more than $38 million by failing to comply with the taxes he was beholden to pay on behalf of his employees. IRS Criminal Investigation will hold accountable individuals who willfully participate in tax fraud schemes.”
“Schwartz admits he willfully failed to pay over employment taxes, basically stealing money from his employees and the IRS,” FBI – Newark Special Agent in Charge James E. Dennehy said. “These taxes are an incredibly important facet of how our government functions, making up a significant portion of revenues brought in by the Treasury Department. Other fraudsters currently committing the same fraud should pay attention to the lesson Schwartz learned the hard way – don't cheat the taxman.”
According to documents filed in this case and statements made in court:
From Oct. 31, 2017, through May 30, 2018, Schwartz was the owner of Skyline Management Group LLC and related entities with headquarters in New Jersey. Schwartz admitted that he was required to collect, truthfully account for and pay over to the IRS on behalf of employees of Skyline Management Group the trust fund taxes imposed on their employees by the Internal Revenue Service but failed to do so. The total amount of taxes was $38.9 million.
Schwartz admitted he was also an administrator of the Skyline 401K plan and had an obligation to file an annual Form 5500 financial report with the secretary of Labor for calendar year 2018, but knowingly and willfully failed to file the report.
The employment tax fraud count is punishable by a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The failure to file a Form 5500 related to the retirement plan count carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for May 22, 2024.
U.S. Attorney Sellinger credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; investigators with the Department of Labor-Employee Benefits Security Administration, under the direction of Regional Director Thomas Licetti in the New York Regional Office; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Kendall Randolph of the Criminal Division in Newark and Trial Attorney Shawn Noud of the Justice Department’s Tax Division.
schwartz.indictment.pdfIndependence Business Owner Sentenced for Multi-Million Dollar Conspiracy to Sell Stolen Catalytic ConvertersRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., man was sentenced in federal court today for leading a conspiracy to sell millions of dollars in stolen catalytic converters to companies in Missouri, Texas, and Louisiana.
James Spick, 58, was sentenced by U.S. District Judge Howard F. Sachs to five years in federal prison without parole. The court also ordered Spick to forfeit to the government $4.4 million, which represents a conservative estimate that 40 percent of the catalytic converters he bought and sold were stolen.
Spick, the owner of J&J Recycling in Independence, pleaded guilty on July 12, 2023, to one count of conspiracy to transport stolen property across state lines.
In his salvage business, Spick primarily buys and resells catalytic converters rather than other automotive parts or recyclable items. Catalytic converters convert toxic gases and pollutants from internal combustion engines into less-toxic pollutants. Catalytic converters contain precious metals such as platinum, rhodium, and palladium. Stolen catalytic converters have value because of the precious metals, which can be extracted from the converters.
For more than four years, Spick made it his primary business to buy and resell stolen catalytic converters. In doing so, he victimized tens of thousands of people whose catalytic converters were stolen from their vehicles. By paying in cash with basically no questions asked, Spick’s entire business model attracted, encouraged, and incentivized thieves and particularly drug addicts.
Spick bought catalytic converters at his business from hundreds of individuals whom he paid in cash. Spick resold the catalytic converters, which he knew to have been stolen, to companies in Missouri (including Kansas City and Lee’s Summit), Texas, and Louisiana. The Texas and Louisiana companies processed the catalytic converters to extract the precious metals.
In January 2021, detectives interviewed a known catalytic converter thief regarding his dealings with Spick. This thief had been caught stealing converters from new vehicles at a car dealership in Kansas. The thief stated that it was common knowledge on the street that Spick’s business was the place to go to sell “questionable” or stolen catalytic converters.
According to court documents, Spick told investigators he sometimes spent $20,000 a day buying catalytic converters and profited about $1,000 a day after expenses. Because he dealt so much in cash, it’s not possible to know the amount of his net profit.
Spick was paid partially in cash by the companies buying catalytic converters. From 2018 to 2021, a Texas company paid Spick $732,021 and an additional $2,622,846 in cash. From 2018 to 2021, a Louisiana company, paid Spick $817,271 and an additional $2,979,074 in cash.
In total from 2018 to 2021, Spick received more than $11 million from companies buying catalytic converters and other car parts.
This case was prosecuted by Assistant U.S. Attorneys Kate Mahoney and Nicholas Heberle. It was investigated by the Missouri State Highway Patrol, the Lee’s Summit, Mo., Police Department, and the Kansas City, Mo., Police Department.
Huntington Man Sentenced to Prison for Role in Methamphetamine Trafficking RingRead the Press Release
CHARLESTON, W.Va. – Elijah Figg, also known as "Bang," 24, of Huntington, was sentenced today to five years and three months in prison, to be followed by three years of supervised release, for distribution of a quantity of methamphetamine. Figg admitted to his role in a drug trafficking organization (DTO) that operated in the Charleston area.
According to court documents and statements made in court, on December 29, 2020, Figg sold 3 pounds of methamphetamine for $16,500 to an individual in Charleston. Figg admitted to using his mobile device to communicate with the individual to arrange the deal. Figg further admitted that he knew the individual was going to redistribute the methamphetamine.
After the transaction, Figg traveled with four other people to the Beckley area of Raleigh County. Law enforcement officers attempted a traffic stop of the vehicle, and the driver attempted to flee. The pursuit ended when the vehicle struck some utility poles. Officers searched the vehicle and found $18,332 and methamphetamine residue. Figg admitted that the money found included the $16,500 he received from the methamphetamine transaction.
Figg participated in a participated in a DTO responsible for distributing large quantities of methamphetamine in the Charleston area. A dozen individuals pleaded guilty in connection with this prosecution. During the course of the nearly year-long investigation, law enforcement seized approximately 15 pounds of methamphetamine, 45 firearms, including an IMI Industries Uzi fully automatic 9mm submachine gun, and more than $375,000 in cash.
United States Attorney Will Thompson made the announcement and commended the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department and the Metropolitan Drug Enforcement Network Team (MDENT) for their investigative work, and the U.S. Marshals Service, the West Virginia State Police, and the Appalachia High Intensity Drug Trafficking Area (HIDTA) for providing assistance.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Monica D. Coleman prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations, and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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 Nos. 2:21-cr-32 and 2:23-cr-88.
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Huntington Man Pleads Guilty to Making False Declaration in Bankruptcy CaseRead the Press Release
HUNTINGTON, W.Va. – John Christopher Spence, 67, of Huntington, pleaded guilty yesterday to making a false declaration in a bankruptcy case.
According to court documents and statements made in court, on or about April 30, 2019, Spence filed for bankruptcy as an individual and separately on behalf of Park Place Properties LLC, one of his businesses. Spence admitted he knew he was required to identify creditors and submit various schedules of assets and liabilities and a statement of financial affairs in each bankruptcy case. Each schedule and statement of financial affairs was filed in U.S. Bankruptcy Court under criminal penalty for false swearing, concealing property, and obtaining money or property by fraud.
On May 30, 2019, Spence caused to be filed Schedule A/B, a disclosure document, and a statement of financial affairs in his individual bankruptcy case. Spence admitted that he knew both contained inaccurate and misleading information, because he failed to disclose in each that he owned J.C. Spence Company LLC, that he held a 100 percent interest in this company and that this company possessed assets.
Spence further admitted that the Schedule A/B contained inaccurate and misleading information, because he failed to disclose that he had legal or equitable interests in condominiums in Gatlinburg, Tennessee; Scottsdale, Arizona; Avon, Colorado; Port Saint Lucie, Florida; and Myrtle Beach, South Carolina. Spence also admitted that he lied about his legal or equitable interests in any condominiums during a meeting of creditors in his bankruptcy case on June 6, 2019.
In April 2019, Spence used one of his credit cards to purchase airplane tickets to the Grand Cayman Islands, Aruba, and Las Vegas, Nevada. Spence admitted that he intended to defraud the credit card company when he purchased the tickets, because he knew he intended to file for bankruptcy and by filing for bankruptcy would avoid paying back the money.
Spence is scheduled to be sentenced on April 29, 2024, and faces a maximum penalty of five 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 Federal Bureau of Investigation (FBI). The United States Trustee’s Charleston field office, which serves West Virginia, made the criminal referral of this case to the U.S. Attorney’s Office. The United States Trustee Program is a component of the Department of Justice whose mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders — debtors, creditors and the public.
United States District Judge Robert C. Chambers 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. 3:23-cr-184.
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Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Tyson Davis II, 28, of Huntington, pleaded guilty today to distribution of a quantity of a mixture and substance containing methamphetamine.
According to court documents and statements made in court, on November 8, 2021, Davis sold approximately 52 grams of methamphetamine to a confidential informant inside a vehicle on the 1600 block of Doulton Avenue in Huntington. Davis admitted to that transaction and further admitted to selling approximately 27 grams of methamphetamine to the confidential informant on November 3, 2021, in Huntington.
On November 9, 2021, law enforcement officers conducted a search of Davis’ vehicle and Fourth Street West residence in Huntington and seized approximately 399 grams of fentanyl and a loaded Glock 9mm pistol. Davis admitted that he possessed and intended to distribute the seized fentanyl.
Davis is scheduled to be sentenced on May 6, 2024, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Office.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams 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. 3:21-cr-241.
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Huntington Man Pleads Guilty to Child Pornography CrimeRead the Press Release
HUNTINGTON, W.Va. – Derick Russell Legg, 48, of Huntington, pleaded guilty today to receipt of child pornography.
According to court documents and statements made in court, from on or about September 19, 2019, through on or about January 28, 2020, Legg used peer-to-peer file sharing programs to receive digital media files depicting minors engaged in sexually explicit conduct.
Legg further admitted that he possessed 668 images and 321 videos depicting minors engaged in sexually explicit conduct on an external hard drive in Huntington on or about January 30, 2020. Legg also admitted to possessing additional images and videos of child pornography on his cell phone.
Many of the images and videos possessed by Legg depict known child victims, prepubescent minors and minors subjected to sadistic or masochistic conduct.
Legg is scheduled to be sentenced on April 29, 2024, and faces a mandatory minimum of five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Andrew J. Tessman and Julie M. White are prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 3:22-cr-40.
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Hornell restaurant owner sentenced to tax chargeRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Theodore LaFrance, of Hornell, NY, who was convicted of aiding or assisting in the preparation of a false or fraudulent tax return, was sentenced to serve two years’ probation, to include six months of home detention, by Chief U.S. District Judge Elizabeth A. Wolford. LaFrance was also ordered to pay restitution totaling $36,040 to the IRS.
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that LaFrance, who owned and operated T&J Country Kitchen Inc. in Hornell, hired Staff Leasing Inc. to provide payroll services for his business. Between 2014 and 2018, LaFrance provided false information to Staff Leasing Inc. regarding the wages T&J Country Kitchen Inc. paid to its cooking and cleaning staff. LaFrance did not report the wages that were paid in cash to staff members. As a result, Staff Leasing Inc. used the false information to complete and file quarterly Forms 941 on behalf of T &J Country Kitchen Inc. IRS. Between 2014 and 2018, T&J Country Kitchen’s 941s did not include a total of $235,560.42 in wages, which resulted in a tax loss of approximately $36,040.74.
The sentencing is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge.
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Honduran convicted smuggler imprisoned for illegally entering country after seven removalsRead the Press Release
LAREDO, Texas – A 42-year-old Honduran man has been sentenced following another conviction for illegally re-entering the United States following an order of removal, announced U.S. Attorney Alamdar S. Hamdani.
Abner Jovani Castellanos pleaded guilty Oct. 4, 2023.
U.S. District Judge Marina Garcia Marmolejo has now ordered him to serve 30 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard about Castellanos’ previous conviction in 2008 for human smuggling, in which he worked as a brush guide in a smuggling operation. During that attempt, an El Salvadoran man obtained serious injuries and part of his leg had to be amputated after it was caught underneath a moving train – Castellanos and another brush guide ordered the man to jump off the train.
On June 10, 2023, law enforcement encountered Castellanos near Laredo. He was first ordered to be removed from the United States on June 5, 2001, with six subsequent removals from 2001 to 2020, along with prior convictions for illegal entry and illegal re-entry.
Castellanos will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol conducted the investigation. Special Assistant U.S. Attorney Terence A. Check Jr. and Assistant U.S. Attorney Brandon Scott Bowling prosecuted the case.
Honduran Drug Dealer Indicted and Detained Pending Trial for Possessing More Than A Kilogram of Fentanyl on Multiple Dates in 2023Read the Press Release
SAN FRANCISCO — A federal magistrate judge has ordered that Defendant Milton Joel Varela Arteaga—a Honduran national who resides in Oakland, California, and was recently indicted by a federal grand jury for possessing large quantities of fentanyl on three separate occasions in 2023—be detained pending trial on fentanyl trafficking charges, announced United States Attorney Ismail J. Ramsey; Homeland Security Investigations (HSI) Special Agent in Charge Tatum King; and Drug Enforcement Administration (DEA), San Francisco Field Division, Special Agent in Charge Brian M. Clark.
Arteaga, 27, was originally charged via a criminal complaint in November 2023. Among other things, the complaint alleges that:
• On May 11, 2023, law enforcement officers searched Arteaga’s Oakland residence and seized more than 1.3 kilograms of fentanyl and more than $70,000 in cash. In a post-arrest interview, Arteaga told officers that he regularly sold drugs in the Tenderloin neighborhood of San Francisco;
• On June 28, 2023, law enforcement officers stopped Arteaga in a car as it left the Oakland Airport and seized more than two kilograms of fentanyl and more than $12,000 in cash; and
• On November 29, 2023, federal and state law enforcement officers searched Arteaga’s Oakland residence and found more than half a kilogram of fentanyl in a black Mercedes that belonged to Arteaga and his partner and over $13,000 in cash in their bedroom.
All of the fentanyl seizures described in the complaint occurred while Arteaga was on pretrial release for state narcotics charges filed against him in 2022. Arteaga has been in federal custody since his arrest in late November 2023, and he was ultimately indicted by a federal grand jury on December 13, 2023, on three counts of possession with intent to distribute fentanyl, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B)(vi). A second defendant was indicted at the same time on similar charges.
“Tackling the scourge of fentanyl is a top priority for my Office,” said U.S. Attorney Ramsey. “Our efforts to disrupt the fentanyl trade take many forms, from prosecuting the dealers who peddle this poison on the streets of the Tenderloin to identifying, arresting, and charging their suppliers. We and our law enforcement partners will hold accountable those who sell or facilitate the sale of this deadly drug at every level.”
“The indictment and subsequent detainment of Mr. Arteaga underscore HSI’s commitment to work with law enforcement agencies to stop the scourge of fentanyl trafficking from further ravaging the Bay Area,” said HSI Special Agent in Charge King. “HSI appreciates the joint investigative work with the DEA, Alameda County Narcotics Task Force, the U.S. Attorney’s Office, and the DOJ OCDETF Program, which resulted in this action. As Mr. Arteaga’s case demonstrates, we will not rest while fentanyl poisons our communities and will pursue its purveyors at every turn to disrupt and ultimately dismantle their operations.”
“Fentanyl is now the leading cause of death for Americans between the ages of 18 to 45 and is the greatest drug threat facing our nation,” said DEA Special Agent in Charge Clark. “DEA’s relentless enforcement efforts in the Tenderloin will continue in pursuit of those who distribute this deadly drug in our community.”
Arteaga was ordered detained by United States Magistrate Judge Peter H. Kang on January 12, 2024. His next scheduled appearance is a status conference before Senior United States District Judge Charles R. Breyer on January 31, 2024.
An indictment and a complaint merely allege that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Arteaga faces a minimum prison sentence of five years and a maximum prison sentence of 40 years on each of the three counts on which he is indicted. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorneys Daniel Pastor and Kevin Yeh are prosecuting this case with assistance from Paralegal Specialist Tina Rosenbaum. The prosecution is the result of a federal and state partnership between HSI, DEA, and the Alameda County Narcotics Task Force (ACNTF) to target the distribution of the deadly opioid fentanyl.
Hickory, N.C. Business Owner Pleads Guilty to Tax and Credit Card FraudRead the Press Release
CHARLOTTE, N.C. – James Christopher Robinson, 51, of Granite Falls, N.C., appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to federal charges for tax and credit card fraud, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Jason Byrnes, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, and Donald "Trey" Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRC-CI), Charlotte Field Office, join U.S. Attorney King in making today's announcement.
According to filed plea documents and today’s court hearing, Robinson was the owner of multiple cabinet manufacturing and retail businesses in the Hickory area, including Cabinet Solutions USA Inc., Best Cabinet Doors, LLC, Cabinet Doors Fast, LLC, and Cox Manufacturing, LLC (collectively, Cabinet Companies). As Robinson admitted in court today, between March 2020 and April 2023, Robinson accessed the credit cards of Cabinet Companies’ customers and without authorization made 294 fraudulent credit card charges totaling approximately $1 million. Robinson also created at least four counterfeit checks totaling more than $93,000, using information from actual checks written to his Cabinet Companies by customers.
Plea documents also show that for tax years 2017 to 2022, Robinson caused two of his companies to fail to comply with their employment tax obligations by failing to timely account for and pay over more than $3.1 million in employment taxes. Court documents indicate that Robinson used the stolen funds to make large cash withdrawals from his business accounts and make hundreds of thousands of dollars in cash deposits at casinos.
Robinson pleaded guilty to access device fraud, which carries a maximum penalty of 15 years in prison, and failure to truthfully account for and pay over trust fund taxes which carries a maximum penalty of five years in prison. Robinson is released on bond. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked the FBI, the Secret Service, and IRC-CI for their investigation of the case.
Assistant U.S. Attorney Jenny G. Sugar of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Hartford Man Sentenced to 54 Months in Federal Prison for Trafficking FentanylRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ANGEL DELGADO, 59, of Hartford, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to 54 months of imprisonment, followed by four years of supervised release, for trafficking fentanyl.
According to court documents and statements made in court, this matter stems from an investigation into gang-related drug trafficking and firearm possession by members of Los Solidos. The investigation, which included court-authorized wiretaps, revealed that Luis Feliciano, also known as “Louminaty,” distributed fentanyl, heroin, cocaine, and crack to customers and other distributors in the Hartford area, including Delgado, and also to individuals in New York and Maine.
On March 31, 2022, after intercepted calls indicated that Feliciano had recently supplied Delgado with drugs, and an investigator successfully ordered 20 sleeves of fentanyl from Delgado over the phone, Delgado was arrested at a hotel in Hartford where he was living. A search of Delgado’s person revealed approximately 250 sleeves of fentanyl and 13 capsules of cocaine, and a search of the hotel room revealed another 1,700 sleeves of fentanyl. Some of the sleeves contained a mixture of fentanyl, heroin, cocaine, and xylazine.
Delgado’s criminal history spans approximately 35 years and includes 26 convictions for drug, assault, failure to appear, violation of a protective order, and other offenses.
Delgado has been detained since his arrest. On June 8, 2022, a federal grand jury returned an indictment charging Delgado, Feliciano, and 14 others with various narcotics distribution and firearm possession offenses.
On February 22, 2023, Delgado pleaded guilty to conspiracy to distribute and to possess with intent to distribute fentanyl.
Feliciano has pleaded guilty and awaits sentencing.
This investigation has been conducted by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force and the Hartford Police Department. The Task Force includes members of the FBI, Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff. through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state, and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Former Randolph Man Charged with Conspiracy to Obtain a Passport Through False StatementsRead the Press Release
BOSTON – A Nigerian citizen, previously deported from the United States, has been indicted by a federal grand jury with conspiring to make a false statement in an application for a United States passport.
Chukwunonso “Nonso” Obiora, 36, formerly of Randolph, was indicted on one count of conspiracy. Obiora was previously charged by complaint and detained in October 2023. He will appear in federal court in Boston at a later date.
According to the indictment, Obiora and one of his brothers allegedly agreed to submit a fraudulent application for a United States passport. Specifically, it is alleged that in May 2023, the brother falsely reported that he had lost his passport and completed an application for a new passport at a United States Postal Service facility in Watertown. The application allegedly bore the brother’s name and Obiora’s photograph. It is alleged that, in or about August 2023, the brother mailed the passport to Obiora in Nigeria.
The charge of conspiracy to obtain a United States passport through false statements carries a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. 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 and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of the Securities, Financial & Cyber Fraud Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Pittsburgh Man Sentenced for Federal Drug and Identity Theft ViolationsRead the Press Release
PITTSBURGH, Pa. - A resident of Conestoga (Lancaster County), Pennsylvania, has been sentenced in federal court to nine months in prison followed by three years of supervised release on his conviction of violating federal drug and identity theft laws, United States Attorney Eric G. Olshan announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Andrew Black, 37, formerly of Pittsburgh, now of Conestoga.
According to information presented to the court, on March 31, 2020, Black attempted to possess with the intent to distribute methamphetamine when he ordered two ounces of methamphetamine from a “dark web” site. The package was intercepted by United States Postal Inspectors. Further, from January 2018 through March 2020, Black used fraudulently obtained personal identifying information to open bank accounts and credit cards in the names of unknowing victims in an attempt to obtain money illicitly to purchase illegal drugs.
Assistant United States Attorneys Stephen R. Kaufman and William B. Guappone prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Secret Service and the United States Postal Inspection Service for the investigation leading to the successful prosecution of Black.
Former Omaha Councilman and Former Omaha Police Officer Sentenced for Fraud ConspiracyRead the Press Release
Acting United States Attorney Susan Lehr announced that Vincent J. Palermo, 50, of Omaha, Nebraska, and Richard Gonzalez, 55, of Papillion, Nebraska, were sentenced on January 16, 2024, in federal court in Lincoln, Nebraska, for conspiracy to commit honest services fraud. Senior United States District Judge John M. Gerrard sentenced Palermo to 18 months’ imprisonment and Gonzalez to 18 months’ imprisonment. Additionally, Palermo was sentenced to a consecutive 9-month term of imprisonment for a violation of supervised release. There is no parole in the federal system. After Palermo’s release from prison, he will begin a 2-year term of supervised release. After Gonzalez’s release from prison, he will begin a 3-year term of supervised release. Senior Judge Gerrard ordered Palermo to pay $10,292.28 in restitution and Gonzalez $66,749.35 in restitution.
From January 2018 to April 1, 2023, Palermo, while an Omaha City Councilman, received personal and financial benefits to include airfare, luxury hotel accommodations, travel arrangements, and other items of value in exchange for official actions. These benefits were intended to influence Vincet Palermo’s actions as an Omaha City Councilman to benefit the Police Athletics for Community Engagement (PACE) and the Latino Peace Officers Association (LPOA). During this time, co-defendant Gonzalez was the Executive Director of PACE and a member of LPOA. Palermo failed to disclose to the City Counsel the private benefits that he was receiving while taking official acts for the benefit of LPOA and PACE.
From 2017 to April 1, 2023, Gonzalez conspired to defraud donors of the LPOA, the LPOA Board, and PACE for his own personal benefit. Gonzalez, a retired Omaha Police Department Captain, without having full LPOA Board authority, conducted financial transactions for his personal benefit using LPOA funds. LPOA funds were misused by Gonzalez for trips, meals, and gambling. Gonzalez also misused LPOA funds to purchase trips for friends and co-defendant Palermo, which included a trip to Las Vegas.
After Tuesday’s sentencings, FBI Omaha Special Agent in Charge Eugene Kowel said, “Both former city councilman Vinny Palermo and former police officer Richard Gonzalez were entrusted to represent our communities' interest, but instead chose to betray that trust through their abuse of public office for personal gain. The FBI is committed to working with our law enforcement partners to aggressively investigate, pursue, and hold accountable those who violate their oath of office to enrich themselves. Public corruption is a top criminal investigative priority for the FBI, and we encourage everyone in our community to continue to come forward and report abuses of public office.”
Co-defendant Johnny Palermo’s change of plea hearing is scheduled for January 18, 2024, in Lincoln. Co-defendant Jack Olson’s trial is scheduled for April 10, 2024, before Senior Judge Gerrard in Lincoln. Each defendant is presumed innocent unless and until proven guilty.
This case was investigated by the Federal Bureau of Investigation.
Former Oahu Schoolteacher Sentenced to 17.5 Years in Prison for Producing Child PornographyRead the Press Release
HONOLULU –Senior United States District Judge Susan O. Mollway sentenced Alden Bunag, 35, of Honolulu, yesterday to 210 months in prison and 15 years of supervised release for production of child pornography. Bunag will also be required to register as a sex offender and pay identified victims $30,000 in restitution. Bunag has been detained in custody since he was arrested in June 2022 at an Oahu high school where he was working as a summer schoolteacher. Bunag pleaded guilty to the child pornography production offense on May 19, 2023.
According to information produced to the court, from around 2017 through 2018, when Bunag was working as a middle school teacher on Oahu, he engaged in repeated sexual activity with a 13-year-old student. Bunag recorded the sexual activity on multiple occasions, which took place in his middle school classroom. He later sent the video(s) to others, including a teacher in Pennsylvania, who was also prosecuted for child exploitation offenses. In addition to the videos Bunag recorded of his former student, he also possessed thousands of images of child pornography, to which he had access to from his phone on the date of his arrest. The videos included young male children being sexually assaulted while bound and in pain. Bunag distributed several of these videos to the Pennsylvania teacher and others.
“Bunag’s sentence reflects the horrendous nature of the crimes he committed, including against a child for whom the classroom became a place of torture rather than learning and nurturing,” said United States Attorney Clare E. Connors. “Child abusers cause incredible harm to the most vulnerable members of our community, and we will continue to hold them accountable under the law.”
“This sentence shows that the FBI will target those individuals who prey on our most vulnerable members of our community and do whatever it takes to protect our keiki,” said FBI Special Agent in Charge Steven Merrill. “We will hold them accountable for their heinous actions especially when they were entrusted by students and parents alike to serve as role models and not a sexual predator going after young boys.”
This investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Rebecca Perlmutter handled the prosecution.
Former Law Enforcement Union Officials Sentenced to Prison for Defrauding Union’s Annuity FundRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that KENNETH WYNDER Jr., a former New York State Trooper and the president of the Law Enforcement Employees Benevolent Association (“LEEBA”), a labor union for law enforcement officers employed by the City of New York (the “City”), was sentenced to 40 months in prison, and ANDREW BROWN, a/k/a “Drew Brown,” the former financial advisor for LEEBA, was sentenced to 18 months in prison, for defrauding union members by misappropriating money from LEEBA’s Annuity Fund. WYNDER was also sentenced for personal income tax evasion and conspiring to evade federal taxes, including payroll taxes owed by LEEBA and its employees. WYNDER and BROWN were convicted after a five-day jury trial before U.S. District Judge P. Kevin Castel, who imposed today’s sentence. In addition, STEVEN WHITTICK, LEEBA’s former treasurer and a former police officer for New York City’s Department of Environmental Protection (“DEP”), previously pled guilty to conspiring to commit tax evasion and making false statements to law enforcement and was sentenced to 28 months in prison.
U.S. Attorney Damian William said: “Kenneth Wynder and Andrew Brown raided union-sponsored retirement accounts for years, placing their self interest over the hard-working public servants they represented as the president and financial advisor of the union, respectively. Wynder also evaded taxes on cash, checks, and other income he obtained from the union, including as a product of their theft from the union members’ retirement accounts. Union officials and advisors who violate their duties to the union members they represent will face serious consequences for their abuse of trust.”
According to the Indictment, Superseding Indictment, the underlying complaints filed in this case, as well as other publicly available information, prior court filings, and evidence presented during the trial in Manhattan federal court:
Law Enforcement Employees Benevolent Association and the Annuity Fund
LEEBA is a labor union that has acted as the collective bargaining representative principally for law enforcement personnel at various City agencies and has entered into agreements on behalf of those law enforcement employees, including agreements for insurance and retirement benefits. The City agencies whose employees LEEBA represented included, at various times, DEP, the Department of Sanitation (“Sanitation”), and the Department of Transportation (“Transportation”).
The Annuity Fund is a LEEBA fund that received monthly contributions from the City for the benefit of LEEBA’s members and maintained separate accounts for each fund member. These accounts were functionally similar to employer-sponsored 401(k) retirement accounts. WYNDER was a Trustee of the Annuity Fund and signatory to agreements that governed the fund, and BROWN was a Plan Administrator and Financial Advisor of the Annuity Fund. Under the relevant agreements and plans, the money in the Annuity Fund could be used for no purpose other than funding individual members’ retirement accounts and defraying reasonable administrative expenses of the Annuity Fund itself.
WYNDER
WYNDER, a former New York State Trooper, is the founder and former President of LEEBA and a former member of LEEBA’s board of directors. WYNDER also formerly served as the Fund Administrator of the Annuity Fund and as a member of the board of trustees of the Annuity Fund, pursuant to which he owed a fiduciary duty to act in the best interests of the Annuity Fund and its account holders. WYNDER also was on the board of trustees of the LEEBA Welfare Fund (the “Welfare Fund,” and collectively with the Annuity Fund, the “LEEBA Funds”), which provided supplemental insurance benefits to its members. While occupying those positions, WYNDER centralized and controlled major decision-making authority for LEEBA and the LEEBA Funds, often acting without the proper approval of their respective boards of directors or trustees. WYNDER’s de facto dominance of LEEBA and the LEEBA Funds enabled him to make decisions in his own self-interest and contrary to the interests of the Annuity Fund and individual members.
BROWN
BROWN, the founder of a Westchester-based financial services company, is the former Benefits Administrator and insurance broker for LEEBA and the LEEBA Funds. As a LEEBA Annuity Fund Plan Administrator and Financial Advisor, BROWN helped manage the investments in the Annuity Fund, receiving a commission for his services, and had a responsibility to act in the best interest of LEEBA’s members.
WYNDER’s and BROWN’s Fraud Scheme
From at least in or about 2012 up to and including 2020, WYNDER and BROWN participated in a scheme to steal, embezzle, and misappropriate money from the Annuity Fund and individual members’ retirement accounts. Specifically, WYNDER and BROWN made hundreds of thousands of dollars of fraudulent transfers from the Annuity Fund to LEEBA’s operating account, which WYNDER controlled, and WYNDER regularly used the funds, once transferred from the Annuity Fund, to enrich himself at union members’ expense, including through unauthorized and excessive checks to himself and cash withdrawals for his own benefit and to pay insurance benefits for which BROWN received commissions. In addition, WYNDER caused the union to pay for various personal expenses such as the purchase of a Lexus automobile, travel expenses to Dallas to watch a Dallas Cowboys football game, and a sailing trip, all paid for by the union, and none of which were contemporaneously reported to the Internal Revenue Service (“IRS”), as required.
To accomplish this fraudulent scheme, WYNDER and BROWN, acting in their capacity as the Annuity Fund’s Plan Administrators, repeatedly made false and misleading statements to a third-party retirement plan manager that served as the custodian for the Annuity Fund and the retirement accounts of individual union members, including through emails and faxes that WYNDER and BROWN used to withdraw increasingly large sums of money from the Annuity Fund, effectively causing such withdrawals to be made from the retirement accounts of individual members. From in or about 2014 through in or about 2019, WYNDER and BROWN caused the withdrawal of more than $500,000 from the individual retirement accounts that constitute the Annuity Fund, thereby wiping out the entire balance of certain members’ accounts. Without these improper withdrawals from the Annuity Fund, the LEEBA operating account would have been insolvent and would have had insufficient funds to pay for WYNDER’s excessive checks to himself and cash withdrawals and the personal expenses he caused to be charged to that account, as well as to pay for benefits for which BROWN made commissions as an insurance broker.
In addition, throughout the duration of this scheme, WYNDER and BROWN repeatedly made and approved false and misleading statements to LEEBA’s members and prospective members about how they were purportedly using and protecting their retirement accounts and the LEEBA Annuity Fund. WYNDER further concealed the scheme by causing LEEBA to fail to timely file mandatory reports and financial disclosures with the City and public reports to the Annuity Fund’s members and by making false statements to the Annuity Fund’s auditors and accountants.
WYNDER’s and WHITTICK’s Tax Evasion Scheme
From at least in or about 2015 through 2019, WYNDER participated in a conspiracy with LEEBA’s then-Treasurer, WHITTICK, to cause LEEBA to make payments to WYNDER and WHITTICK, by check and in cash, and to conceal those payments from the IRS. WYNDER and WHITTICK further conspired to ensure that such payments were made outside of LEEBA’s payroll processor. WYNDER and WHITTICK then concealed these payments from the IRS — including off-the-books payments to WYNDER of more than $400,000 — in order to evade their own personal income taxes and to evade the payroll taxes that were owed by LEEBA and certain LEEBA employees.
WHITTICK’s False Statements to Federal Agents
In or about October 2019, while serving as LEEBA’s Treasurer and after learning of a federal investigation into LEEBA’s finances – including the investigation of an alleged embezzlement scheme that ultimately resulted in wire fraud charges against WYNDER – WHITTICK repeatedly lied to federal agents in an effort to obstruct that investigation. WHITTICK did so despite personal involvement in some of the financial improprieties with which WYNDER was convicted. For example, on at least two occasions, on or about February 1, 2018, and March 30, 2018, WHITTICK withdrew $16,000 in cash from a LEEBA bank account and on each occasion deposited $15,000 cash into Wynder’s personal bank account and $1,000 cash into WHITTICK’s own personal bank account.
After the FBI executed a search warrant of LEEBA’s offices in September 2019, WHITTICK attempted to obstruct and to influence the ongoing federal investigation by making, in two different interviews with law enforcement agents, false statements about, among other subjects, cash withdrawals he made from LEEBA’s bank accounts, unauthorized withdrawals from LEEBA’s Annuity Fund and from the individual retirement accounts of Fund participants, and LEEBA’s payment for certain travel and entertainment expenses for union officers, including WHITTICK and WYNDER.
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In addition to his prison term, WYNDER, 60, of Stroudsburg, Pennsylvania, was ordered to forfeit $529,000 and to pay $838,683 in restitution.
In addition to his prison term, BROWN, 56, of Putnam Valley, New York, was ordered to forfeit $3,049 and to pay $529,000 in restitution.
On November 17, 2021, WHITTICK, 54, of Kingston, New York, was sentenced to 28 months in prison and ordered to pay $179,766 in restitution.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation, the Department of Labor Office of Labor-Management Standards, and IRS, Criminal Investigation. Mr. Williams also thanked the New York City Comptroller’s Office and the New York City Department of Investigation for their assistance.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorney Eli J. Mark is in charge of the prosecution, with the assistance of Paralegal Specialists Connor Hamill and Lauren Scarff.
Former Banking Executive Pleads Guilty to Evading Anti-Money Laundering RegulationsRead the Press Release
The former vice president of a bank located in Missouri pleaded guilty today to assisting high-risk bank customers in evading the bank’s anti-money laundering controls.
Peter McVey, 45, of Kansas City, Missouri, who served as vice president and director of treasury services for a bank, pleaded guilty to failing to maintain an appropriate anti-money laundering program under the Bank Secrecy Act (BSA).
According to court documents, between April 2014 and July 2022, McVey assisted high-risk bank customers engaged in deceptive sweepstakes and short-term online loan activities in evading the bank’s anti-money laundering controls. Specifically, McVey worked with other bank officials and customers to submit fraudulent Currency Transaction Report exemption forms to the Financial Crimes Enforcement Network and knowingly accepted forged bank forms from customers that permitted them to exceed applicable limits on daily transaction values. McVey also admitted that he did not follow know-your-customer or suspicious activity report requirements.
McVey faces a maximum penalty of 10 years in prison. He will also pay a fine of $20,000, which is equal to his 2018 bonus from the bank. 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 Teresa A. Moore for the Western District of Missouri, Special Agent in Charge Justin R. Bundy of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Kansas City Region, Special Agent in Charge Thomas F. Murdock of the IRS Criminal Investigation (IRS:CI) St. Louis Field Office, and Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division made the announcement.
FDIC-OIG, IRS:CI, and the FBI are investigating the case.
Trial Attorney Chad M. Davis of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Kathleen D. Mahoney, Patrick D. Daly, and Matthew N. Sparks for the Western District of Missouri are prosecuting the case.
MLARS’ Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
Firearm Discharge in Residential Neighborhood Leads to Federal Charge for Bangor ManRead the Press Release
BANGOR, Maine: A Bangor man pleaded guilty today in U.S. District Court in Bangor to being a felon in possession of a firearm and ammunition.
According to court records, in September 2023, officers with the Bangor Police Department responded to a report that a male had fired a handgun in a residential area. A bystander directed officers to Toman Caudill, 31, and he was taken into custody when officers found a box of 9mm ammunition in his backpack. Further investigation revealed that Caudill had discharged a Ruger 9mm pistol and then handed the firearm to his fiancée as officers approached. Caudill stated that he had fired the gun due to an altercation with another male. The Ruger 9mm pistol was recovered and seized, as was the ammunition from Caudill’s backpack.
Caudill is prohibited from possessing a firearm or ammunition due to multiple prior felony convictions.
Caudill faces up to 15 years in prison, a fine up to $250,000 and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bangor Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
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Federal Jury Convicts Repeat OffenderRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a federal jury convicted a Cecil County, Maryland man on charges of possession of cocaine and methamphetamine with intent to distribute and possession of a firearm by a person prohibited. U.S. District Judge Richard G. Andrews accepted the verdict.
According to court records and evidence presented at trial, George Griffin, 38, was arrested on September 9, 2022, after a long-term Maryland State Police investigation during which Griffin sold drugs to an informant. On the day of his arrest, officers found about 125 grams of cocaine hidden in his engine compartment, and over a pound and a half of pure methamphetamine and four guns hidden in Griffin’s friend’s Delaware apartment. Alongside the methamphetamine and guns, police found documents belonging to the defendant, and DNA comparison further tied Griffin to the guns.
U.S. Attorney Weiss said, “Mr. Griffin had three prior drug felony convictions. Fortunately, his willful disregard for the law came to an end with this guilty verdict. While Mr. Griffin went to great lengths to distance himself from his drugs and guns, law enforcement doggedly investigated him until they found and seized those drugs and guns and brought the defendant to justice. I commend the law enforcement agencies for their teamwork and determination in investigating this case.”
“Homeland Security Investigations’ Wilmington office, along with our partner agencies, stopped at nothing during the investigative and prosecutorial phases of this case, culminating in the significant conviction of this dangerous criminal, said Special Agent in Charge of HSI Philadelphia William S. Walker. “Violence and addiction inextricably linked to drug trafficking organizations degrade our communities and endanger the health and safety of the American public. As a result of the teamwork between investigators and prosecutors in this case, Mr. Griffin will now be held accountable for his crimes.”
Griffin faces a maximum penalty of 20 years in prison when sentenced on May 15, 2024. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by U.S. Homeland Security Investigations, U.S. Postal Inspection Service, Maryland State Police, Delaware State Police, Newport Police, and New Castle County Police. Assistant U.S. Attorneys Jennifer K. Welsh and Benjamin L. Wallace are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:23-cr-00033-RGA.
Federal Judge Sentences Drug Traffickers to Combined 56 Years in PrisonRead the Press Release
MIDLAND, Texas – A Midland man and woman were sentenced in a federal court in Midland to a combined 56 years in prison for methamphetamine trafficking and firearm charges.
According to court documents, Nikky Nicole Lujan, 37, and Raul Gonzalez, 38, possessed and distributed more than 11 kilograms of methamphetamine in and around Midland. Gonzalez was also sentenced for possessing a firearm in furtherance of a drug trafficking crime. Midland police officers located and recovered methamphetamine, firearms, body armor, and thousands of dollars in currency while executing a search warrant at Gonzalez’s residence in May 2023.
Lujan and Gonzalez both pleaded guilty to multiple counts on Sept. 20, 2023. Lujan was sentenced to prison for 340 months, just over 28 years. Gonzalez was sentenced to prison for 334 months, just under 28 years.
“I appreciate the efforts of our local law enforcement partners for disrupting the drug trafficking operations of a major meth supply chain in the Permian Basin,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “The severe sentences in this case should serve as a warning to drug traffickers who operate in our communities. You will be vigorously prosecuted in this district, and you risk meeting the same demise.”
“This case serves as yet another example of the outstanding working relationship established between local law enforcement and our federal partners,” said Midland Police Chief Seth Herman. “I commend the efforts of our Midland Division Office and their unwavering dedication to protecting citizens throughout the Permian Basin.”
Midland PD investigated the case.
Assistant U.S. Attorney Joe Mahoney prosecuted the case.
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Farmington Man Pleads Guilty to ArsonRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Ulrick Bruce Canyon pled guilty to arson of a dwelling. Canyon, 40, of Farmington and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
In his plea agreement, Canyon admitted to completely burning down a residence within the exterior boundaries of the Navajo Nation on Aug. 28, 2023. Canyon started the fire by pouring lighter fluid in the bedrooms of the residence, then, after lighting the fire, threw two propane tanks into the fire. Canyon then left the residence with a wheelbarrow full of his clothing, at which time he was intercepted by Navajo Nation Police officers.
At sentencing, Canyon faces up to life in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office with assistance from the Navajo Nation Police Department and the Navajo Department of Criminal Investigations investigated this case. Assistant U.S. Attorney Matthew J. McGinley is prosecuting the case.
View the Indictment View the Plea Agreement# # #
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El Departamento de Justicia llega a un acuerdo con Patriot Bank para resolver quejas de discriminación crediticiaRead the Press Release
El Departamento de Justicia anunció hoy que Patriot Bank (Patriot) ha acordado pagar $1.9 millones para resolver las alegaciones de que incurrió en un patrón o una práctica de discriminación crediticia al practicar la exclusión financiera en barrios de mayoría negra e hispana en Memphis, Tennessee. La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios crediticios a individuos que viven o desean vivir en comunidades de color por motivos de la raza, el color de piel o el origen nacional de los residentes de esas comunidades.
“Este acuerdo encarna el compromiso del Dr. Martin Luther King, Jr. de promover la justicia económica y garantizar que los estadounidenses negros y todas las comunidades de color puedan lograr el sueño americano y disponer de la igualdad de acceso al crédito para comprar una casa”, afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “El Departamento de Justicia se dedica a erradicar las prácticas crediticias discriminatorias en todo este país y nos comprometemos con firmeza a hacer responsables a los prestamistas, independientemente de su tamaño. Este acuerdo proporcionará a muchas familias de Memphis acceso al crédito que mejorará la calidad de sus vidas a la vez que creará oportunidades para construir riqueza intergeneracional”.
“Durante demasiado tiempo, se han utilizado prácticas como la exclusión financiera y préstamos discriminatorios para socavar las promesas de nuestro sistema económico», dijo Kevin G. Ritz, el Fiscal Federal para el Distrito Oeste de Tennessee. “Nuestra oficina se compromete a hacer cumplir las leyes de préstamos justos y a garantizar que los bancos y prestamistas proporcionen a las comunidades de color la igualdad de acceso al crédito y oportunidades crediticias. Este acuerdo con Patriot Bank representa un paso importante hacia la preservación de la justicia económica y para las comunidades de color en Memphis a medida que compran casas, establecen negocios y participan en el sueño americano”.
La queja del Departamento alega que, desde el 2015 hasta al menos el 2020, Patriot evitó la provisión de servicios hipotecarios a barrios de mayoría negra e hispana en Memphis y desalentó a las personas que buscaban un préstamo en esas comunidades de obtener préstamos hipotecarios. Los préstamos hipotecarios residenciales de Patriot se centraron desproporcionadamente en áreas blancas por la zona metropolitana de Memphis. Durante el mismo período de seis años, otros bancos recibieron casi 3.5 veces más solicitudes de préstamos en comparación con Patriot en barrios de mayoría negra e hispana en Memphis. La queja también alega que, incluso cuando Patriot generó solicitudes de préstamos de áreas de mayoría negra e hispana, los propios solicitantes eran desproporcionadamente blancos.
En virtud de la orden de consentimiento propuesta, que queda sujeta a la aprobación del tribunal, Patriot invertirá $1.9 millones para aumentar las oportunidades crediticias para las comunidades de color en Memphis. En concreto, Patriot:
- Invertirá al menos $1.3 millones en un fondo de subsidios para préstamos para aumentar el acceso a préstamos hipotecarios, mejoras en la vivienda y refinanciamiento residencial para residentes de barrios de mayoría negra e hispana;
- Gastará $375,000 en publicidad, proyección comunitaria, educación financiera al consumidor y asesoramiento de crédito centrado en barrios de mayoría negra e hispana;
- Gastará $225,000 en asociaciones comunitarias para proporcionar servicios que aumenten el acceso al crédito hipotecario residencial para residentes de esos barrios;
- Asegurará que al menos dos agentes de crédito hipotecario estén dedicados a servir a barrios de mayoría negra e hispana en el área de servicio del Banco;
- Empleará a un Director de Préstamos Comunitarios que supervisará el desarrollo continuo de préstamos en comunidades de color y
- Evaluará continuamente las necesidades crediticias de las comunidades mientras sigan en vigor la orden de consentimiento.
El Departamento inició su investigación sobre las prácticas de préstamo de Patriot después de recibir una recomendación del regulador del banco, la Junta de Gobernadores del Sistema de la Reserva Federal. Patriot cooperó con la investigación del Departamento y trabajó con el Departamento para resolver las alegaciones de exclusión financiera.
En octubre del 2021, el Fiscal General Merrick B. Garland y la Fiscal General Auxiliar Kristen Clarke lanzaron la Iniciativa contra la Exclusión Financiera del Departamento de Justicia, un esfuerzo coordinado de aplicación de la ley para abordar esta forma persistente de discriminación contra las comunidades de color. Desde el año 2021, el Departamento ha anunciado once casos de exclusión financiera y ha obtenido $109 millones por concepto de compensación para comunidades de color que han sido víctimas de discriminación crediticia por todo el país.
Puede encontrar información adicional sobre la aplicación de las leyes de préstamos justos del Departamento en www.justice.gov/crt/fair-lending-program-0. Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea.
us_v._patriot_bank_-_complaint_w_exhibits.pdf consent_order_-_patriot_final.pdfDefendants Sentenced to Prison in Separate Project Safe Neighborhoods CasesRead the Press Release
MACON, Ga. – Three defendants with lengthy criminal histories who were found guilty by federal juries of illegally possessing firearms resulting from Project Safe Neighborhoods investigations in South Georgia were sentenced to prison today.
Demetris Gervone Bellamy, 32, of Ray City, Georgia, was sentenced to serve 260 months in prison to be followed by five years of supervised release after he was convicted Aug. 17, 2023, of one count of possession of a firearm by a convicted felon, one count of possession with intent to distribute 50 grams or more of methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
Joshua Granger, 35, of Orlando, Florida, was sentenced to serve 120 months in prison to be followed by three years of supervised release after he was convicted Aug. 16, 2023, of one count of illegal possession of a firearm by a convicted felon.
Shi-Young Lamar Sharper, 39, of Valdosta, Georgia, was sentenced to serve 120 months in prison to be followed by three years of supervised release after he was convicted July 26, 2023, of one count of illegal possession of a firearm by a convicted felon.
U.S. District Judge Hugh Lawson presided over today’s sentencings which occurred at the U.S. Courthouse in Macon.
“These cases involved armed defendants with criminal histories who repeatedly violated the law, brought to federal attention as a result of the Valdosta Division’s Project Safe Neighborhoods Task Force,” said U.S. Attorney Peter D. Leary. “Our office is focused on reducing crime in our communities; holding repeat and violent offenders accountable is one part of a combined community and law enforcement effort to address violent crime through Project Safe Neighborhoods.”
“These sentences are a direct result of what good multi-jurisdictional partnerships and communication can accomplish,” said Rich Bilson, Supervisory Senior Resident Agent of FBI Atlanta’s Valdosta office. “We are grateful for all the hard work by our partners that allowed these repeat offenders to be removed from the streets before they could commit any worse crimes.”
“The federal, state and local collaboration through Project Safe Neighborhoods helps us get violent, repeat criminals off the streets. We are thankful for this continuing partnership,” said Lowndes County Sheriff Ashley Paulk.
For more information about the Bellamy case, please visit https://www.justice.gov/usao-mdga/pr/jury-convicts-ray-city-man-armed-meth-trafficking; for information about the Granger case, please visit https://www.justice.gov/usao-mdga/pr/florida-man-convicted-illegally-possessing-gun-valdosta-psn-case; and for information about the Sharper case, please visit https://www.justice.gov/usao-mdga/pr/jury-convicts-felon-illegally-possessing-gun.
These cases were prosecuted as part of Project Safe Neighborhoods (PSN), 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 by bringing together a broad spectrum of stakeholders to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. 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.
The Bellamy and Granger cases were investigated by the Lowndes County Sheriff’s Office. Assistant U.S. Attorney Hannah Couch and Criminal Chief Leah McEwen prosecuted the cases for the Government.
The Sharper case was investigated by the Lowndes County Sheriff’s Office and FBI. Assistant U.S. Attorneys Monica Daniels and Sonja Profit prosecuted the case for the Government.