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Tuesday 16 January 2024
Justice Department Announces Significant Milestone in Ongoing Policing Reforms for City of Baltimore and Baltimore Police DepartmentRead the Press Release
The Justice Department and the City of Baltimore filed a joint motion today seeking court approval to declare the city and the Baltimore Police Department (BPD) in full and effective compliance with key consent decree provisions related to the safe transportation of people in custody and officer assistance and support.
The joint motion is based on BPD’s consistent progress towards achieving the goals of the consent decree. The independent monitor’s recent report on Dec. 29, 2023, found BPD in full and effective compliance with both provisions. If the court grants the motion, BPD must maintain compliance with the provisions for one year before the court can terminate these sections of the consent decree.
“We are pleased the Baltimore Police Department has successfully implemented the reforms needed to safely transport detainees in its custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Injuries during transport have become extremely rare, and BPD now has in place the equipment, training, policies and practices to maintain this safety record. The Justice Department is committed to collaboratively working with the Baltimore Police Department and the community to ensure constitutional, fair and nondiscriminatory policing for all Baltimore residents. The citizens of Baltimore deserve nothing less.”
The Justice Department opened a comprehensive investigation of BPD practices in 2015 after considering requests from city officials and community members in the wake of the death of Freddie Gray. The city agreed to and the court approved a consent decree in 2017 to resolve deficiencies identified by the investigation, including transport practices that placed detainees at significant risk of harm.
Since approval of the consent decree, BPD has overhauled its fleet of transportation vehicles, safety equipment, data collection mechanisms, policies and training. BPD now closely tracks information about all transports, including any injuries suffered by detainees, and during the 17-month period assessed by the court-appointed independent monitor, there were only 11 reported injuries during over 16,000 transports. Key accomplishments include:
- Safe Transport Vehicles: BPD has overhauled its transport vehicles to outfit all with necessary safety equipment.
- Improved Video Recording Equipment: BPD has completed the installation of required video recording equipment and conducts and documents monthly inspections to confirm that the equipment is functioning.
- Proper Searches of Detainees: BPD has adopted policies that require searches of detainees by both the arresting officer and the transporting officer to protect the safety of the detainee during transport.
- Improved Data Collection: BPD has implemented a new records management system to streamline data collection, analysis and review. BPD now tracks important data, like whether a detainee reported an injury or medical distress, needed to be transported with individuals of the same sex or gender identity or required an accommodation for their medical equipment. The new software enables real time compliance assessment, which BPD can use to inform policy changes and identify training needs.
- Enhanced Auditing: BPD has developed an audit process to examine transport of detainees. The audit unit reviews the documentation and video recordings to determine the transporting officer’s compliance with policy. Violations of BPD policy constitute misconduct and result in referrals to BPD’s internal affairs unit for investigation.
BPD has also devoted significant resources to officer assistance and support, another area found to be deficient in the department’s investigation, including creating an Officer Safety and Wellness Section within BPD, partnering with an employee assistance program to provide mental health and wellness servicers for officers and their families and establishing a network of peer support teams within BPD. Over the past few years, more than 10% of officers have consistently used the employee assistance program, with 31% using it in 2021.
The consent decree, as well as additional information about the Civil Rights Division, are available on its website at www.justice.gov/crt/special-litigation-section-cases-and-matters.
Jury Convicts Drug Dealer of a Controlled Substance Conspiracy, Distribution and Possession of a Controlled Substance, and Possession of Firearm and Ammunition by a Convicted FelonRead the Press Release
MIAMI – On Jan. 10, a Fort Lauderdale jury found Chad Michael Marlow, 46, of Pompano Beach, Florida, guilty of conspiracy to distribute a controlled substance, distribution of a controlled substance, possession with the intent to distribute a controlled substance, and of being a felon in possession of a firearm and ammunition.
During the three-day trial, the government put on evidence that showed that Marlow was recorded on two occasions selling a quarter pound and a pound, respectively, of methamphetamine to an undercover Drug Enforcement Administration (DEA) agent in the parking lot of a Broward County shopping plaza. In the recordings, Marlow could be heard discussing at length the great quality of the product and the fact that he used it for his back and hip pain.
Marlow and his partner agreed to sell the undercover agent one pound of methamphetamine at a third planned deal, but when Marlow and his partner arrived at the shopping plaza, law enforcement conducted an arrest. Law enforcement searched the vehicle Marlow was driving and found an unzipped backpack immediately behind the driver’s seat of the vehicle –sitting at the top of the backpack was a loaded handgun and an extra loaded magazine and in the bottom of that backpack they found a pound, or nearly 1,000 pills, of fentanyl segregated into dealing sized baggies, methamphetamine, and cocaine, as well as a bank card bearing Marlow’s name. Law enforcement also found a pound of methamphetamine in a lunch cooler sitting on the front passenger seat of the vehicle.
Marlow is scheduled to be sentenced on April 4, 2024, before U.S. District Judge William P. Dimitrouleas.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Deanne L. Reuter of DEA Miami Field Division made the announcement.
DEA Miami Field Division conducted the investigation. The case is being prosecuted by Assistant U.S. Attorneys Emily R. Stone and Brooke E. Latta.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60202.
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Indian River traffickers of methamphetamine and fentanyl sentenced to federal prisonRead the Press Release
MIAMI – On Jan. 12, two Indian River County men were sentenced to federal prison for drug trafficking.
Beginning in July of 2022, the Indian River County Sheriff’s Office (IRCSO) and Drug Enforcement Administration (DEA) carried out an undercover operation to combat illicit drug trafficking by purchasing cocaine, methamphetamine, fentanyl, and other illegal substances in Indian River County. During this law enforcement operation, an undercover officer was used to conduct the controlled buys. Between July 2022 and April 2023, Lawrence Oliver Irving II, 38, distributed over six ounces of methamphetamine and 47 grams of fentanyl, and Tyrell Murry Bennett, 37, distributed or possessed with the intent to distribute, over a kilogram of methamphetamine and 75 grams of fentanyl, to an undercover officer.
Irving previously pled guilty to participating in a conspiracy to distribute methamphetamine, and distribution of methamphetamine. Irving was sentenced to 215 months in prison. Bennett previously pled guilty to participating in a conspiracy to distribute methamphetamine and fentanyl, and distribution of methamphetamine and fentanyl. Bennett was sentenced to 150 months in prison. U.S. District Judge Robin L. Rosenberg also ordered that each sentence be followed by 5 years of supervised release.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the DEA, Miami Field Division, and Sheriff Eric Flowers of the IRCSO, announced the sentences imposed.
DEA Miami and IRCSO investigated the case. Assistant U.S. Attorney Michael D. Porter and former Assistant U.S. Attorney Diana Acosta prosecuted it.
Fentanyl is a synthetic opioid that is up to 50 times stronger than heroin and 100 times stronger than morphine. Even in small doses, fentanyl can be deadly. As little as two milligrams, about the size of 5 grains of salt, can be fatal. According to the Centers for Disease Control and Prevention (“CDC”), fentanyl and other synthetic opioids are the most common drugs involved in overdose deaths. Over 150 people die every day from overdoses related to synthetic opioids like fentanyl. The State of Florida has also seen an exponential increase in overdoses associated with fentanyl. For more information visit https://www.cdc.gov/opioids/basics/fentanyl.html# and https://www.dea.gov/factsheets/fentanyl.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-CR-14021.
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Illinois Man Accused of Seeking to Arrange Florida MurderRead the Press Release
CAPE GIRARDEAU – A man from Illinois appeared in U.S. District Court in Cape Girardeau Tuesday to face a criminal complaint that accuses him of trying to hire someone to kill a business associate in Florida.
Ben Patrick Mullavey, 64, of Mechanicsburg, in Sangamon County, was charged with one felony count of use of interstate commerce facilities in the commission of murder-for-hire.
A criminal complaint and affidavit filed Tuesday accuses Mullavey of offering up to $10,000 for the murder of the Florida man. Mullavey claimed the man owed him $200,000 and a lawsuit over the money was not going well, the charging documents say.
The affidavit says the man Mullavey allegedly tried to hire began working with the FBI on January 3, after meeting with Mullavey in Sikeston, Missouri and hearing about his plans. Mullavey would eventually discuss the manner of the murder and supply the name and description of his business partner, a Florida license plate to help the hit man blend in, a crossbow and arrows, expense money, a $1,000 “prepayment” and directions to the restaurant next to the target’s wine bar, the affidavit says.
The murder-for-hire charge is punishable by up to 10 years in prison, a $250,000 fine or both.
Charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The FBI investigated the case. Assistant U.S. Attorney Christopher Shelton is prosecuting the case.
Huntington Man Pleads Guilty to Straw Purchase CrimeRead the Press Release
HUNTINGTON, W.Va. – Maximillian Keaton, 51, of Huntington, pleaded guilty today to aiding and abetting making false statements in acquisition of firearms.
According to court documents and statements made in court, on February 22, 2023, Keaton traveled with Daniel Lee Ferguson to a Barboursville business where Ferguson purchased for Keaton a Springfield Armory model Hellcat 9mm pistol. Keaton admitted that he asked Ferguson to buy the firearm for him because his prior felony conviction prohibits him from purchasing or possessing a firearm. Keaton further admitted that he showed Ferguson the firearm he wanted him to buy and provided Ferguson with the money for the purchase.
Ferguson falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473 that he was the buyer of the firearm when Ferguson knew he was purchasing it for Keaton.
Keaton further admitted that Ferguson purchased two other firearms for him at Cabell County businesses, a Bersa model Thunder 380 .380-caliber pistol on August 14, 2019, and a Springfield Armory model Prodigy 9mm on February 25, 2023. Ferguson falsely certified on the ATF Form 4473 for each purchase that he was the buyer of the firearm when he knew he was purchasing it for Keaton.
Keaton is scheduled to be sentenced on May 20, 2024, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
Ferguson, 45, of Huntington, pleaded guilty on October 23, 2023, to making false statements in acquisition of firearms and awaits sentencing.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
This case was prosecuted under the criminal provisions of the Bipartisan Safer Communities Act (BSCA), which Congress enacted and the President signed in June 2022. BSCA is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
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-151.
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Honduran National Charged with Illegal Re-Entry of Removed AlienRead the Press Release
NEW ORLEANS, LOUISIANA – CESAR A. LOBO-RAMOS, age 37, a native of Honduras, was indicted on January 11, 2024, for illegal re-entry of a removed alien, in violation of Title 8 United States Code, Section 1326(a), announced U.S. Attorney Duane A. Evans.
According to the indictment, LOBO-RAMOS reentered the United States after being previously deported on April 10, 2018. If convicted, LOBO-RAMOS faces up to 2 years of imprisonment, 1 year of supervised release, up to a $250,000 fine and $100 mandatory special assessment fee. He also faces a sentencing enhancement of up to 20 years, because of a 2010 felony sexual battery conviction in Jefferson Parish.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Immigration and Customs Enforcement agency and the Kenner Police Department in investigating this matter. Assistant United States Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Helena man suspected of threatening to attack Helena Public Schools building admits to illegally possessing homemade bombs, silencerRead the Press Release
GREAT FALLS — A Helena man today admitted to illegally possessing homemade bombs and a silencer after being accused of attempting to attack a Helena Public Schools building, U.S. Attorney Jesse Laslovich said.
Logan Sea Pallister, 25, pleaded guilty to possession of unregistered destructive devices and to possession of an unregistered silencer. Pallister faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release on each charge.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for May 22. Pallister was detained pending further proceedings.
The government alleged in court documents that in May 2022, the Helena Police Department received information from an individual that Pallister possessed multiple bombs, had access to multiple firearms and had been making threats of committing an attack at a local high school. The person also indicated that Pallister discussed a desire to commit a Columbine-style attack at the high school and planned to use pipe bombs in addition to firearms. Further, Pallister had shown the individual numerous firearms and a large amount of ammunition that he kept in his car and had purchased a black trench coat and the same type of duffle bag used by the shooters in the attack at Columbine High School. The government also alleged that Pallister showed the individual a small propane cannister with a fuse sticking out of one end that he had retrieved from his car and had told the person it was a bomb he had made. Pallister also threatened to kill the individual if the person told anyone about the device. The individual reported the encounter to law enforcement.
On May 31, 2022 at about 4 a.m., police officers arrested Pallister as he was walking toward his car from his residence, wearing a black trench coat and carrying a bag. During a search of Pallister, officers found eight firearms that were concealed on his person. Law enforcement served search warrants on his home and car. In Pallister’s car, officers found nine additional firearms, numerous rounds of ammunition, loaded magazines, firearm accessories, a Fram oil filter that appeared to have been modified to function as a homemade silencer and a green ammunition can that contained four suspected homemade pipe bombs. In Pallister’s residence, officers found additional firearms and ammunition, firearm components, money order documents, receipts and online orders related to chemicals, suspected chemical precursors for making explosives and a suspected homemade explosive mixture known as flash powder.
A Bureau of Alcohol, Tobacco, Firearms and Explosives expert examined the pipe bombs, determined that they contained an explosive mixture that, when ignited, would result in an explosion, and concluded the four pipe bombs were destructive devices. An examination of the Fram oil filter found it had a threaded adapter attached to one end, multiple rounds had been previously fired through it and that it was intended to diminish the sound of a firearm, making the device a silencer. The suppressor and destructive devices were not registered as required by law and their possession is a violation of federal firearms laws.
Assistant U.S. Attorney Jeffrey K. Starnes is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Helena Police Department, Lewis & Clark County Sheriff’s Office and Lewis & Clark County Attorney’s Office.
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.
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Haitian National Sentenced to 30 Months in Federal Prison for Illegal Reentry After Deportation by an Aggravated FelonRead the Press Release
Fort Myers, Florida – United States District Judge Sheri P. Chappell has sentenced Augustin Desgrange (51, Haiti) to 30 months in federal prison for illegal reentry into the United States after deportation by an aggravated felon. Desgrange had pleaded guilty on October 24, 2023.
According to court documents, on April 13, 2015, Desgrange was convicted of illegal reentry after deportation by an aggravated felon and aggravated identity theft. His status as an aggravated felon stems from a 1998 state conviction for possession of cocaine with intent to distribute. Desgrange has previously been deported from the United States to Haiti on two occasions.
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE-ERO). It was prosecuted by Assistant United States Attorney Patrick L. Darcey.
Grand jury indicts Columbus man for committing 2 armed robberies against U.S. postal carriersRead the Press Release
COLUMBUS, Ohio – A Columbus man was indicted and arrested for federal crimes related to armed robberies of United States postal carriers.
Anthony J. (“AJ”) Williams, 19, was arrested yesterday in Pittsburgh and will make his initial appearance there today. He is charged with conspiring to commit an offense against the United States, aggravated robbery of property of the United States, and using a firearm during a crime of violence.
According to the indictment, in November and December 2022, Williams robbed two postal carriers of their service keys. Williams allegedly brandished a Glock 19 firearm at the first victim and wounded the second victim by punching him in the face.
The four-count indictment details that Williams allegedly conspired with at least four other individuals to rob postal service employees of their service keys to access USPS “blue boxes” and steal checks and money orders.
Specifically, it is alleged that on Nov. 9, 2022, Williams committed an armed robbery against a postal carrier on Michigan Avenue in Columbus. Williams allegedly received $2,000from co-conspirators for stealing the carrier’s service key.
On Christmas Eve in 2022, Williams allegedly punched a Canal Winchester postal carrier who was working on Kodiak Drive and threatened to kill him if he did not turn over his postal service key.
Brandishing a firearm during a crime of violence is punishable by at least seven years and up to life in prison. Aggravated robbery of government property carries a potential penalty of up to 25 years in prison. Conspiring to commit an offense against the United States is punishable by up to five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and Lesley Allison, Inspector in Charge, U.S. Postal Inspection Service (USPIS), announced the charges. Assistant United States Attorney Noah R. Litton is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Grand jury indicts 5 Dayton individuals in narcotics conspiracy resulting in deathRead the Press Release
DAYTON, Ohio – Five Dayton individuals have been charged federally in a narcotics conspiracy that allegedly resulted in at least one overdose death and one serious bodily injury.
Those charged include:
Name
Also known as
Age
Ricardo Busbee
Cardo
33
Torrence Busbee
Woody
30
Demarion Galloway
Duke
28
Dalaquan McGuire
Rico
26
Doretha Hughes
27
In summer 2023, local and federal law enforcement began investigating a significant increase in drug overdoses that had occurred within a six-block radius in Dayton.
According to the 10-count indictment, the defendants conspired to possess with intent to distribute fentanyl, methamphetamine and cocaine. They allegedly possessed and distributed methamphetamine at a premises where a minor resided.
It is also alleged that on July 27, 2023, Ricardo Busbee and Hughes distributed a mixture of fentanyl and cocaine that caused an overdose death. The drug combination also allegedly caused serious bodily injury to another individual.
Ricardo and Torrence Busbee are also charged with illegally possessing firearms as previously convicted felons.
All the defendants are charged with possessing firearms in furtherance of drug trafficking crimes. They allegedly possessed at least 14 guns that they kept in a storage unit and at residences on Laura and Basswood avenues.
Due to the allegation that death and serious bodily injury resulted from the drug conspiracy, if convicted, the defendants face a punishment of at least 20 years and up to life in prison.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, and gangs that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Orville O. Greene, Special Agent in Charge, Drug Enforcement Administration (DEA); and Dayton Police Chief Kamran Aftal announced the charges that were unsealed on Jan. 12 and commended the cooperative investigation with the assistance of partner agencies including Huber Heights, Trotwood, Springfield and Bellefontaine police departments, Miami County and Montgomery County sheriff’s offices, the FBI, United States Marshals and Ohio Adult Parole Authority. Assistant United States Attorneys Amy M. Smith and Kelly K. Rossi are representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Fugitive Investment Firm Operator Indicted for Running $100 Million Ponzi SchemeRead the Press Release
DETROIT - The operator of a supposed foreign exchange trading firm has been indicted on eleven counts of wire fraud and one count of money laundering in connection with his alleged operation of a Ponzi scheme that stole $100 million from investors, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the Detroit Field Division of the Federal Bureau of Investigation, and Charles Miller, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service, Criminal Investigation Division.
Darren Anthony Robinson, 53, is a U.S. citizen who previously operated out of the country of Panama. After he was previously charged in a criminal complaint in this matter and released on bond, Robinson is alleged to have improperly removed his GPS tether and become a fugitive. Robinson is currently wanted on an arrest warrant issued by the United States District Court for the Eastern District of Michigan. Individuals with information regarding Robinson’s whereabouts are encouraged to contact the FBI at 1-800-Call-FBI (1-800-225-5324), your local FBI office, the nearest American Embassy or Consulate, or submit a tip online at tips.fbi.gov.
- local FBI office
- nearest American Embassy or Consulate
- www.tips.fbi.gov
According to the indictment and other court records, Robinson operated a supposed trading firm known as “QYU,” which was located in Panama and the Cayman Islands. QYU represented to investors that it was consistently generating stellar investment results. For example, in one QYU document, the firm claimed that a $100,000 investment into its fund in 2014 would have grown to over $2 million by 2021. That same document claimed the fund did not have a single losing month over that same period. QYU investors were promised guaranteed returns and told the firm was only paid on trading profits, not investor principal.
It is alleged that QYU was simply a Ponzi scheme and investor funds were largely not used for trading activity. Instead, new investor funds were used to pay other investor distributions, cover QYU business expenses, compensate QYU employees, and fund Robinson’s lifestyle. QYU investors were provided with false account statements and fictious trading data. Court records indicate that QYU obtained an estimated $100 million from investors.
Law enforcement has identified many apparent QYU investors from southeast Michigan. Potential victims are encouraged to contact the Federal Bureau of Investigation at www.fbi.gov/QYU_holdings_victims (Please note that the link to the website is case sensitive).
“Our resolve is to bring Darren Robinson to account for his alleged multimillion-dollar Ponzi scheme with victims around the world,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “I would like to thank the Internal Revenue Service, Criminal Investigation Division, our international partners, and all the law enforcement agencies dedicated to achieving justice in this case. Investment fraud can be crippling for its victims, and the FBI is committed to identifying and working with anyone impacted by Robinson’s scheme.”
An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The defendant faces up to twenty years in prison on each charge of wire fraud and up to 10 years in prison on the charge of money laundering.
The case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service—Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney Andrew J. Yahkind.
Fresno Woman Sentenced to Prison for Bank Fraud and Identity TheftRead the Press Release
FRESNO, Calif. — Bobbi Jo Heiss, 37, of Fresno, was sentenced today to seven years in prison for bank fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between August 2020 and September 2021, Heiss engaged in a scheme to steal debit cards, checks, identity documents, and banking information in order to make fraudulent purchases, cash checks, and open unauthorized lines of credit. The scheme caused at least $250,000 in actual and attempted loss during a year-long period. For example, as part of the scheme, on April 30, 2021, Heiss presented a check for $57,767 to a car dealership in Fresno with the name and driver’s license number of an identity theft victim in order to purchase a 2017 truck.
This case was the product of an investigation by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Fresno County Sheriff’s Office - Elder Abuse Unit. Assistant U.S. Attorney Henry Z. Carbajal III prosecuted the case.
Fresno Man Pleads Guilty to Passport Fraud by Assuming the Identity of a Deceased ChildRead the Press Release
FRESNO, Calif. — Kenneth Laitman aka John Rodman, 79, of Fresno, pleaded guilty today to passport fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 1984, Laitman left his job as a stockbroker in New York and moved to California where he assumed the identity of John Rodman and worked at an endoscopy practice. The actual John Rodman died in 1950 at the age of four.
Laitman subsequently obtained various forms of identification, worked different jobs, opened bank accounts, received government benefits, and took other actions while falsely using Rodman’s identity. This included a U.S. Passport that he obtained in 2004 and used to travel overseas on multiple occasions. He was convicted of attempting to renew that passport.
This case is the product of an investigation by the U.S. Department of State’s Diplomatic Security Service, the Social Security Administration Office of Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Laitman is scheduled to be sentenced on April 29, 2024. He faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fort Pierce armed robbers sentenced to federal prisonRead the Press Release
MIAMI – On Jan. 12, two Fort Pierce armed robbers were sentenced to federal prison after pleading guilty to Hobbs Act robbery and brandishing a firearm during a crime of violence.
Eugene Jacques, 21, was sentenced to 121 months of prison, and Roderick Anthony Baker, 23, was sentenced to 87 months of prison. U.S. District Judge Robin L. Rosenberg also ordered that each of the sentences be followed by three years of supervised release.
On April 24, 2023, around 5:54 a.m., the Fort Pierce Police Department (FPPD) received a 911 call to report an armed robbery at a gas station and food mart on Orange Avenue in Fort Pierce, Florida. Law enforcement officers responded to the scene and interviewed the victim of the robbery. The victim advised that Jacques and Baker entered the gas station and food mart and looked around as if they were shopping. Jacques approached her and asked for Advil pills and then waived a small purple and black handgun. Jacques pushed his way into the glass enclosure while Baker followed him. Jacques pointed the handgun at the victim’s face, struck her in the head, and said “Give me the money.” After forcing the victim to open the cash register, Jacques and Baker took about $2,000 and placed the money in a plastic bag they had brought with them. Jacques and Baker also stole a small box containing about $2,200 and fled.
Law enforcement officers arrested Baker and Jacques on May 1, and May 4, 2023, respectively.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and FPPD Chief Diane Hobley-Burney, announced the sentences imposed by Judge Rosenberg.
ATF Fort Pierce Field Office and FPPD investigated the case. Assistant U.S. Attorney Michael D. Porter prosecuted it.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement, and the community, to develop effective, locally based strategies to reduce violent crime.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-14027.
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Former high school teacher sentenced to 20 years in prison for exploiting minors by taking ‘upskirt’ videos at school & in other public placesRead the Press Release
COLUMBUS, Ohio – A former local high school teacher was sentenced in U.S. District Court today to 240 months in prison for crimes related to secretly recording explicit videos of his students at school and possessing child sexual abuse material.
Justin Foley, 48, of Delaware, Ohio, pleaded guilty in May 2023 to sexually exploiting a minor and possessing child pornography.
Foley was employed as a chemistry teacher at Columbus Alternative High School at the time of his offenses. He used his cell phone and other digital media devices in a hidden manner to capture the genitalia of his female students under their skirts and shorts during the school day.
According to court documents, in August 2022, the Delaware Police Department received CyberTip reports from the National Center for Missing and Exploited Children (NCMEC) regarding numerous images of apparent child sexual abuse material that were uploaded via Google email accounts. Investigators tracked the IP addresses for the reported email accounts to Foley. During the investigation into Foley, officers discovered a second CyberTip report. Five of the IP addresses in the second report belonged to Columbus Public Schools.
Delaware County law enforcement officials executed a search warrant at Foley’s residence on Sept. 20, 2022. Court documents detail that Foley admitted to creating videos in the classroom and hallways of the school at which he taught and that he had created some of these videos as recently as the previous week.
A review of Foley’s devices by the FBI revealed they contained numerous videos that were voyeuristic in nature and appear to have been self-produced. The videos were recorded at the high school Foley worked at, local department stores in central Ohio, public areas of downtown Delaware, Ohio, and various dressing rooms at different unidentified locations. It is apparent from the videos that the victims depicted in them did not know they were being recorded.
Foley created numerous videos of female students in the hallways of Columbus Alternative High School or of females that were students in his classroom. In the videos he secretly recorded, Foley would hide his phone camera or place it beside or behind the victims in attempt to record up their skirts or shorts. Foley then took screenshots from the content he filmed of his victims and created still images of the victim’s nude genitalia, zooming in and “lightening” some of the screenshots to enhance the images.
In addition to the videos he created himself, more than 1,000 images of child sexual abuse material were recovered from Foley’s devices that depicted a series of images of prepubescent females in various stages of nudity or fully nude exposing their genitals or anus to the camera.
Foley was arrested and charged locally in Delaware County in September 2022. He was charged federally in November 2022.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Westerville Police Chief Charles Chandler; Delaware Police Chief Adam Moore; Delaware County Prosecutor Melissa A. Schiffel; and other members of the FBI’s Child Exploitation and Human Trafficking Task Force announced the sentence imposed today by U.S. District Judge Michael H. Watson. Assistant United States Attorneys Jennifer M. Rausch and Emily Czerniejewski are representing the United States in this case.
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Former West Virginia Coal Broker Pleads Guilty to Obstructing the IRSRead the Press Release
A former coal broker pleaded guilty today in North Carolina to attempting to obstruct an IRS audit and criminal investigation.
According to court documents and statements made in court, Vondie Brunty owned and operated West Star Management Inc. (WSM), a company that, from 2005 to 2015, co-owned a coal brokerage business. Despite earning taxable income in 2010 through 2013, Brunty did not file individual income tax returns for those years, nor did he report income earned by WSM. Brunty late-filed his 2014 and 2015 tax returns in 2021, after learning he was under criminal investigation by the IRS. Those returns, however, were false, omitting $240,000 and $108,000 of income, respectively. Additionally, on at least four occasions between 2015 and 2020, in an effort to conceal his income, Brunty provided a false social security number to companies that paid him, causing the companies to report inaccurate information to the IRS.
When the IRS civilly audited Brunty’s unfiled personal and corporate returns, he knowingly made multiple false and misleading statements, claiming that he had paid an accountant to prepare WSM’s returns and that he never owed any taxes. Similarly, Brunty falsely told IRS criminal investigators that WSM’s tax returns had been prepared each year. In total, Brunty caused a tax loss to the IRS of $204,231.
Brunty faces a maximum penalty of three years in prison. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Ashley Stein and Kevin Schneider of the Tax Division are prosecuting the case.
Former Nurse Pleads Guilty to Tampering with OxycodoneRead the Press Release
BOSTON – A former nurse has pleaded guilty to tampering with liquid oxycodone syringes at a local rehabilitation center.
Jaclyn McQueen, 44, of Dedham, pleaded guilty on Jan. 5, 2024 in federal court in Boston to one count of tampering with a consumer product. U.S. District Court Judge Julia E. Kobick scheduled sentencing for April 4, 2024. McQueen was charged by Information on Dec. 7, 2023.
McQueen was employed as a registered nurse at a rehabilitation center in Dedham that provided long-term chronic and post-acute care to patients. In her capacity as a nurse, McQueen had access to oxycodone, a Schedule II narcotic, prescribed to patients at the rehabilitation center. From approximately February through May 2020, she removed liquid oxycodone from syringes intended for use by patients, consumed the oxycodone herself and refilled the syringes with saline to avoid detection. McQueen returned the diluted syringes to the medication carts where they could have been administered to patients.
The charge of tampering with a consumer product provides a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $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; Fernando McMillan, Special Agent in Charge of the Food and Drug Administration, Office of Criminal Investigations; and Robert H. Goldstein, MD, PhD, Commissioner of the Massachusetts Department of Public Health made the announcement. Assistant U.S. Attorney Kelly Begg Lawrence, Chief of the Health Care Fraud Unit, is prosecuting the case.
Former New Bedford Man Pleads Guilty to Wire Fraud and Money Laundering Arising from "Romance Scam"Read the Press Release
BOSTON – A former New Bedford man pleaded guilty today to wire fraud and money laundering charges involving funds obtained from “romance scam” victims.
Chukwunonso “Douglas” Umegbo, a/k/a James Abbott, a/k/a Michael Philips, a/k/a Richard Armani, 38, pleaded guilty to six counts of making a false statement to a bank, two counts of wire fraud and one count of money laundering. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for April 4, 2024. Umegbo was arrested in London in April 2022 and extradited to the United States in February 2023. He has remained in federal custody since. Umegbo was indicted by a federal grand jury in February 2021.
Between no later than 2018 through at least 2019, Umegbo opened bank accounts in the greater Boston area using fake identity documents. The bank accounts were used to receive fraudulently obtained funds from a number of victims of romance scams, in which perpetrators create fictitious online personas to develop online romantic relationships with individuals in the U.S., and then leverage those relationships to obtain money and/or property. Once the fraudulently obtained funds reached the accounts controlled by Umegbo, Umegbo withdrew the money in cash, used the funds to purchase cashier’s checks, or spent the money on personal purchases. Altogether, the fraudulent accounts received more than $560,000.
The charge of making a false statement to a bank provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $1 million. The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000, or twice the value of the criminally derived property. 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; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement today. The Justice Department’s Office of International Affairs provided valuable assistance in securing the arrest and extradition from the U.K. of Umegbo. Assistant U.S. Attorneys Kristen A. Kearney and Leslie A. Wright of the Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Former First Grade Teacher Admits to Asking Minors for Explicit Images on SnapchatRead the Press Release
EAST ST. LOUIS, Ill. – A former elementary school teacher appeared in federal court Thursday to plead guilty to soliciting child sexual abuse material (CSAM) from minors.
Jonathan C. Villmer, Jr., 25, of New Baden, Illinois, was charged via criminal complaint in August 2023. Prior to his charge, Villmer was a teacher at New Baden Elementary School and coached girls’ sports teams for Wesclin Community Unit School District 3.
“We know child predators lurk in our communities, but it’s especially disturbing when a former first grade teacher and coach admits to asking minors for inappropriate images,” said U.S. Attorney Rachelle Aud Crowe. “I highly commend the several law enforcement departments who contributed to this investigation and identified an extremely dangerous individual working directly with minors.”
The case was initiated by an otherwise unrelated investigation by the Carmi Police Department regarding the distribution of CSAM. The investigation led law enforcement officers to a Snapchat account soliciting CSAM connected to Villmer.
According to court documents, after obtaining a search warrant for Villmer’s Snapchat account, police discovered explicit conversations with a 13-year-old minor. Villmer asked the minor for the “sexiest images,” discussed having sex and taking the minor’s virginity, and requested photographs of her genitals. Law enforcement identified other occurrences of sexually explicit conversations and requests for images with other purported minors within Villmer’s Snapchat account.
Based upon IP address records associated with the Snapchat account, law enforcement connected the account to Villmer. On Aug. 18, 2023, law enforcement executed a search warrant on Villmer’s New Baden residence and seized two cell phones and other electronic devices. Villmer was arrested on scene.
“The importance of this case and guilty plea cannot be overstated. Investigations involving the exploitation of children are horrible, but it is particularly troubling when the accused occupies a position of public trust and seeks to exploit the most vulnerable in our society,” said HSI Chicago Special Agent in Charge Sean Fitzgerald. “HSI will continue to work closely with our local, state and federal partners to bring those who would sexually exploit children to justice.”
Villmer’s sentencing is scheduled for April 24, 2024 at 1:30, and his charge carries a minimum of 5 years, and a maximum of up to 20 years’ imprisonment.
Homeland Security Investigations is conducting the investigation with support from the New Baden and Carmi Police Departments, and the Jefferson County and Clinton County Sheriffs’ Departments. Assistant U.S. Attorney Ali Burns is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
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Former Executive Director of victim advocacy organization convicted of two counts of wire fraudRead the Press Release
Tacoma – The former Executive Director of the Washington Coalition of Crime Victim Advocates (WCCVA) was convicted today of two counts of wire fraud following a six-day jury trial. Cody Benson, 51, formerly of Olympia, Washington, was indicted in July 2021 for her scheme to falsely claim Washington State public grant funding for work that was never done. Jurors deliberated about eight hours before returning the guilty verdicts. U.S. District Judge Benjamin H. Settle scheduled sentencing for April 8, 2024, at 1:30 p.m.
According to records filed in the case, Benson was the head of an Olympia-based non-profit organization that was tasked with training advocates to assist crime victims. In 2013, the legislature appropriated money for this work with a grant administered through the Washington State Attorney General’s Office. Between 2015 and 2017, Benson submitted fraudulent invoices for reimbursement under the grant. She submitted bills for training events that were never held or supplies that were never purchased. In early 2016, she moved away to Italy, yet in the ensuing years, she repeatedly told representatives of the Attorney General’s Office that she was in Washington State doing various outreach and other work. Those representations were false.
By the end of the scheme, WCCVA had only two employees: Benson and her son. The Washington State Attorney General’s Office became concerned about WCCVA’s performance under the grant in early 2018 and began investigating. Benson returned just over $50,000 to the state, but other funds were not recovered. The grant payments ceased, and WCCVA is defunct.
In all, prosecutors argued that WCCVA obtained almost $180,000 from Benson’s false invoices, and that Benson herself obtained approximately $257,000 in net salary and other benefits such as health insurance, retirement plan contributions, and health reimbursement account contributions during the fraudulent scheme.
The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorneys Philip Kopczynski and Yunah Chung.
Former Employee and Co-Conspirator Sentenced for Embezzling over $270,000 from WFYI Public MediaRead the Press Release
INDIANAPOLIS- Alicia Wilson, 37, of Indianapolis, has been sentenced to three years’ probation, with the first 15 months on home detention, and ordered to pay $270,876 in restitution after pleading guilty to conspiracy to commit wire fraud.
In April of 2023, Mindi B. Madison, 53, of Indianapolis plead guilty to conspiracy to commit wire fraud and was sentenced to three years’ probation and also ordered to pay $270,876 in restitution.
According to court documents, Wilson and Madison conspired together to embezzle funds from WFYI (“WFYI”) Public Media into their personal checking accounts.
Madison began working as an Accounting Specialist for WFYI in January 2018. WFYI was owned and operated by Metropolitan Indianapolis Public Media, Inc., and provided television and radio programming throughout Central Indiana. Madison’s co-conspirator, Wilson, was neither an employee nor a vendor of WFYI.
As an Accounting Specialist, Madison had access to WFYI’s accounting software, and was trusted to present legitimate expenses, claims, invoices, and supporting documentation along with the unsigned WFYI checks to employees at WFYI who had signature authority for their approval and signature. Instead of presenting legitimate claims that arose out of WFYI’s legitimate business expenses for signature and payment, Madison abused her position of trust, and presented at least 156 fake claims and invoices for payment. In effort to conceal the theft from WFYI and their banking institutions, Madison and Wilson agreed that Madison would falsify invoices using versions of Wilson’s name and businesses connected to her.
Madison tendered WFYI checks to Wilson, and they agreed that Wilson would then deposit the checks into her bank accounts. Wilson then withdrew Madison’s portion in cash, and they split the illegal proceeds. Both Madison and Wilson used WFYI’s stolen funds for their own personal expenditures including but not limited to, rent, restaurants, groceries, fuel, and utilities.
In total, the pair embezzled approximately $270,876 from WFYI before the theft was discovered. Wilson’s participation in the scheme made it virtually impossible for WFYI to detect the theft.
“Complex economic crimes such as these devastate the finances and security of businesses and individuals. The defendants’ theft deprived WFYI of hundreds of thousands of dollars intended for public service and educating the community,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Our office will continue to work with the FBI to identify and prosecute individuals who scheme and steal to satisfy their own greed.”
The FBI investigated this case. The sentences were imposed by U.S. District Court Judge Sarah Evans Barker.
U.S. Attorney Myers thanked Assistant United States Attorney Tiffany J. Preston, who prosecuted this case.
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Former Credit Union Employee Sentenced in Austin for EmbezzlementRead the Press Release
AUSTIN, Texas – A Georgetown woman was sentenced in a federal court in Austin to 41 months in prison for embezzlement by a credit union employee.
According to court documents, Tracy Mikulencak, 44, embezzled approximately $144,000 from her teller drawer and the vault while working at A+ Federal Credit Union. A+ auditors also revealed that Mikulencak had made unauthorized withdrawals from customer accounts, including a deceased account holder. In total, Mikulencak embezzled $325,708 from the credit union. In addition to her imprisonment, Mikulencak was also ordered to pay $302,668 in restitution.
“The excellent investigative work by our partners at the FBI and the Georgetown Police Department unraveled a scheme by a trusted credit union employee to steal hundreds of thousands of dollars from the credit union and its members,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “These crimes strike at the heart of our banking system. Those entrusted with customer funds must be held to the highest standards of honesty and integrity. The judge's sentence in this case affirms the commitment of the U.S. Attorney's office to swift and certain punishment.”
“Tracy Mikulencak used her position to steal from the elderly and from grieving family members of a deceased customer. This sentence is reflective of the FBI’s commitment to stopping criminals who take advantage of vulnerable members of society,” said Acting Special Agent in Charge Doug Olson for the FBI San Antonio Division. “We want to thank the Georgetown Police Department for their continued partnership in keeping our communities safe.”
The FBI and Georgetown PD investigated the case.
Assistant U.S. Attorney Dan Guess prosecuted the case.
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Former CEO of Latitude 360 Pleads Guilty to Payroll Tax FraudRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Brent Brown (55, formerly of Jacksonville) has pleaded guilty to failing to pay over payroll taxes withheld from employees. Brown faces a maximum penalty of five years in federal prison. As part of his plea, Brown agreed to pay $3,832,360.48 in restitution to the IRS for unpaid payroll taxes, including both taxes withheld from employees and taxes that should have been paid by the company. A sentencing date has not yet been set.
According to the plea agreement, Brown was the Chief Executive Officer of Latitude 360, Inc., and the manager of its subsidiaries, including Latitude 360 Jacksonville. Brown exercised oversight over every aspect of the company’s business affairs, including payments of wages to the company’s employees and disposition of funds in the company’s bank accounts, and he had the corporate responsibility to collect, truthfully account for, and pay over the company’s payroll taxes.
Latitude 360 withheld taxes from employee wages, including federal income taxes and Federal Insurance Contributions Act, or “FICA” taxes, which were required periodically to be remitted to the Internal Revenue Service. Brown, on behalf of the company, filed quarterly tax returns that accurately reflected the payroll taxes due, but he caused the company to fail to pay over the payroll taxes to the IRS.
This case was investigated by Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant United States Attorneys Arnold B. Corsmeier and Laura Cofer Taylor.
Former CEO of Defense Company Sentenced to 15 Months in Prison for Defrauding Investors and CreditorsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that BAREND OBERHOLZER, a/k/a “Barry Oberholzer,” was sentenced to 15 months in prison by U.S. District Judge Andrew L. Carter, Jr. for soliciting investments in his defense technology start-up company on the basis of fraudulent misrepresentations regarding its financial solvency, access to cash, and use of investor funds. OBERHOLZER was arrested in February 2021 and pled guilty in March 2023.
U.S. Attorney Damian Williams said: “The defendant lied continuously about his company’s funding, endorsements, and capitalization to attract financing for his defense technology start-up. Soon, he will begin serving a federal sentence. Let this case be a warning to any entrepreneur who thinks that they can ‘fake it until they make it:’ this Office will protect investors and the public from lies designed to take their money.”
According to the allegations in the Indictment and other filings and statements made in court:
Beginning in or around 2018, OBERHOLZER began soliciting investment in his defense technology start-up company (“Start-Up-1”), and a purported security device it had developed (“Security Device-1”), from at least two venture capital firms on false pretenses. OBERHOLZER sent multiple emails to the firms, posing as a retired, four-star General in the United States Army (“Retired General-1”), who was employed by a private equity investment firm based in New York, New York. Therein, OBERHOLZER, posing as Retired General-1, endorsed and solicited investment in Start-Up-1 and Security Device-1, a smartphone case that purportedly permitted its users to detect at a distance weapons or other dangerous items concealed on another person.
OBERHOLZER and his co-conspirator, Jaromy Pittario, a/k/a “Jaromy Jannard-Pittario,” also solicited investments in and loans for Start-Up-1 and Security Device-1 by falsely representing, among other things, their financial solvency, access to cash, and capitalization. For instance, the pair repeatedly provided falsified financial statements to potential creditors to secure funding.
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In addition to the prison term, OBERHOLZER, 40, of Calabasas, California, was fined $100, ordered to forfeit $252,862, and ordered to pay restitution in an amount to be determined by the court.
Mr. Williams praised the outstanding investigative work of the New York Office of the U.S. Postal Inspection Service.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jilan J. Kamal and Timothy V. Capozzi are in charge of the prosecution.
Former Arizona Man Sentenced to 5 Years for Stealing Mainers’ Identities as Part of Pandemic Unemployment Fraud SchemeRead the Press Release
BANGOR, Maine: A former Arizona man was sentenced in U.S. District Court in Bangor today after pleading guilty to six counts of wire fraud and six counts of aggravated identity theft.
U.S. District Judge Lance E. Walker sentenced, James McAuliffe, 55, to 60 months followed by three years of supervised release. He was also ordered to pay $203,616 in restitution. He pleaded guilty on August 29, 2023.
According to court records, from January to November 2020 McAuliffe filed false claims for unemployment insurance (UI) benefits. He filed fraudulent applications for UI payments with the Maine Department of Labor, Bureau of Unemployment Compensation using others’ personal identifying information without their knowledge and consent. As a part of the scheme, he caused fraudulent applications for replacement drivers licenses to be filed with the Maine Bureau of Motor Vehicles and changed the drivers’ mailing addresses, using the falsified licenses as proof of identification in support of the fraudulent UI claims. McAuliffe had the UI benefits loaded onto debit cards and wired into an account he opened in another person’s name and withdrew the funds at ATMs in Arizona. At the time of his arrest, McAuliffe was living in Kansas.
The U.S. Department of Labor, Office of Inspector General and the U.S. Postal Inspection Service investigated the case.
“The prosecution of Mr. McAuliffe is one of numerous cases brought by the Department of Justice nationwide to bring to justice those who sought to exploit COVID-19 relief fund programs,” said U.S. Attorney Darcie N. McElwee. “To those who defrauded and stole from American taxpayers in the middle of a global crisis, you should expect that our Office and the Department of Justice will do everything possible to hold you accountable.”
“James McAuliffe engaged in a scheme to obtain unemployment insurance benefits by submitting fraudulent claims using the stolen identities of Maine residents and others. McAuliffe stole federal benefits intended to assist unemployed American workers struggling during the COVID-19 pandemic. We will continue to work with our law enforcement partners to safeguard Department of Labor programs from those who seek to exploit them,” said Jonathan Mellone, Special Agent-in-Charge, Northeast Region, U.S. Department of Labor, Office of Inspector General.
Coordinated, nationwide enforcement action to combat COVID-19 fraud: On August 23, 2023 the Justice Department announced the results of a coordinated, nationwide enforcement action to combat COVID-19 fraud, which included 718 enforcement actions – including federal criminal charges against 371 defendants – for offenses related to over $836 million in alleged COVID-19 fraud. The Justice Department has now seized over $1.4 billion in COVID-19 relief funds that criminals had stolen and charged over 3,000 defendants with crimes in federal districts across the country. Many of the cases in the enforcement action involve charges related to pandemic unemployment insurance benefit fraud and fraud against the two largest pandemic Small Business Administration programs: the Paycheck Protection Program and Economic Injury Disaster Loans. Additional matters involved pandemic healthcare billing fraud, fraud against the Emergency Rental Assistance program, and fraud committed against the IRS Employee Retention Credit program (ERC), a refundable tax credit for businesses and tax-exempt organizations that had employees and were affected during the COVID-19 pandemic.
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Fifteen People Sentenced for Defrauding Unemployment Insurance Agencies During Covid-19 PandemicRead the Press Release
DETROIT – A federal judge sentenced Detroit resident James Mayfield today to 2 years and 6 months in prison for his role in a scheme to defraud state unemployment insurance agencies during the Covid-19 pandemic, United States Attorney Dawn N. Ison announced. Mayfield is the last of 15 defendants to be sentenced for their roles in related unemployment insurance schemes that were carried out during the Covid-19 pandemic.
Ison was joined in the announcement by Department of Labor – Office of the Inspector General (DOL-OIG) Special Agent-in-Charge of the Great Lakes Region, Irene Lindow, Special Agent in Charge Cheyvoryea Gibson of the Detroit Feld Office of the Federal Bureau of Investigation (FBI) and Director Julia Dale, Michigan Unemployment Insurance Agency.
According to court records, between February 1, 2020, and January 26, 2021, Sharodney Harrison devised schemes to defraud several states and the federal government by filing fraudulent unemployment insurance claims using other people’s personal identifiable information without their knowledge or consent. Harrison and his co-conspirators used various means to further their schemes. Five of the co-conspirators traveled to California between August and September 2020 and used California mailing addresses, including their AirBnB address, to commit unemployment insurance fraud. The schemes tied to Harrison resulted in the filing of nearly 600 fraudulent unemployment insurance claims in 19 states that resulted in a loss of $2,020,851 to state unemployment insurance agencies. If all the fraudulent claims had been approved, the resulting loss would have been $6,920,388.
The investigation into Harrison started after the FBI and DOL-OIG began investigating more than one hundred unemployment insurance claims that were filed with the State of Michigan Unemployment Insurance Agency from two IP addresses registered to homes in Detroit. As a result of this investigation, 9 individuals were charged together in one case with conspiracy to commit wire fraud and/or aggravated identity theft. All have pleaded guilty and have been sentenced as follows:
- Sharodney Harrison – Sentenced to 60 months in prison
- Seandrea Crawford – Sentenced to 30 months in prison
- Sharrell Harrison – Sentenced to 42 months in prison
- Sha-Ron Harrison – Sentenced to 46 months in prison
- Sharease Harrison – Sentenced to 26 months in prison
- Edward Taylor – Sentenced to 54 months in prison
- James Mayfield – Sentenced to 30 months in prison
- Frank Jennings – Sentenced to 24 months in prison
- Sharonda Griffin – Sentenced to 26 months in prison
As a result of this investigation, 6 people were charged in separate cases with conspiracy to commit wire fraud or wire fraud. All have pleaded guilty and have been sentenced. As part of their sentences, the defendants were also ordered to pay a total of over $2 million in restitution to the victims of their fraud.
“We continue to investigate and prosecute those who took advantage of the Covid-19 pandemic to enrich themselves at the expense of taxpayers, while ignoring the effect on those whose identities they stole,” U.S. Attorney Dawn Ison said.
"Sharodney Harrison conspired with a dozen individuals, including James Mayfield, to defraud 19 state workforce agencies of more than $2 million in unemployment insurance (UI) benefits to which Harrison and his co-conspirators were not entitled. Harrison and his co-conspirators filed fraudulent UI claims in the names of identity theft victims, enriching themselves by defrauding a program that was intended to assist struggling American workers during an unprecedented global pandemic," stated Special Agent-in-Charge Irene Lindow, Great Lakes Region, U.S. Department of Labor, Office of Inspector General. “We and our law enforcement partners are committed to identifying and prosecuting the criminals who took advantage of the COVID-19 pandemic by fraudulently obtaining pandemic UI benefits using stolen identities.”
“Today’s sentencing finalizes the FBI’s efforts to hold a large-scale network accountable for defrauding unemployment insurance agencies during the COVID-19 pandemic,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. “Providing false information to gain access fraudulently to relief funds is a theft of taxpayer money. The FBI remains committed to working with our network of law enforcement partners to investigate and hold those accountable who seek to profit personally and defraud government assistance programs.”
“The Michigan Unemployment Insurance Agency is proud of its role in helping to identify this network of criminals who were brazen enough to steal from taxpayers across the country,” UIA Director Julia Dale said. “Whether a crime is committed in Michigan or also includes programs in other states, our staff works closely with state and federal law enforcement to refer cases for investigation, stop the theft of taxpayer money, and hold fraudsters accountable.”
These cases were prosecuted by Assistant U.S. Attorney Meghan Bean and were investigated jointly by the FBI and DOL- OIG.
Felon Sentenced to 110 Months’ for Illegally Possessing an Officer’s Firearm While Attempting to Avoid ArrestRead the Press Release
SALT LAKE CITY, Utah – Brandon Keith Thompson, 43, of Salt Lake County, Utah, was sentenced today to over nine years imprisonment followed by three years supervised release after a federal jury found him guilty of being a previously convicted felon in possession of a firearm and ammunition.
According to court documents, and the evidence presented at trial in January 2023, law enforcement responded to a store in Sandy, Utah on July 8, 2021, for a report of a theft in progress. When the officers arrived, employees identified Thompson as the suspected shoplifter. Thompson fled the store. Two officers with the Sandy Police Department chased Thompson in the parking lot and stopped him. Thompson grabbed an officer’s firearm, which was holstered, and pulled on it with such force that the firearm began to move up out of the holster. A bystander observed the struggle and rushed forward to help the officers keep Thompson from gaining control of the firearm and potentially using it against the officers. Thompson placed his finger on the trigger and fired the weapon, which was still partially holstered. The bullet came within inches of striking the bystander and officers. Thompson maintained his grip on the firearm and continued to pull on it, as officers and the bystander attempted to gain control of the firearm and Thompson. After a violent struggle, the officers and bystander secured the firearm and placed Thompson into custody. Thompson had previously been convicted of a felony. This is Thompson’s third federal conviction for the unlawful possession of a firearm by a convicted felon.
“Thompson’s behavior threatened the lives of police officers and bystanders in a busy parking lot,” said U.S. Attorney Trina A. Higgins of the District of Utah. “This case highlights the valuable and ongoing relationship between the U.S. Attorney’s Office and our law enforcement partners as we continue to seek justice for federal offenders whose actions put law enforcement and the community in danger.”
“We are extremely grateful for the countless hours of hard work of everyone involved in this case,” said a spokesperson with the Sandy Police Department Administration. “We are especially thankful for Assistant United States Attorneys, Angela Clifford and Jennifer Muyskens, for their diligence in the pursuit of justice for this deliberate act of indifference against a law enforcement officer.”
“Everyday law enforcement officers are confronted with life and death situations in order to protect their communities,” said ATF Special Agent in Charge Brent Beavers. “We are fortunate and grateful this case was not deadly for the officer or other innocent bystanders.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant United States Attorneys Angela J. Clifford and Jennifer K. Muyskens of the U.S. Attorney’s Office for the District of Utah prosecuted the case.
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.
Eight Defendants Sentenced for Their Roles in an East Alabama Drug Distribution ConspiracyRead the Press Release
Montgomery, Alabama – Today, Acting United States Attorney Jonathan S. Ross announced the sentences of eight individuals for distributing methamphetamine in the Phenix City, Alabama, area. This concludes a series of federal sentencings that resulted from a drug trafficking investigation that began in 2020 and covered east Alabama and west Georgia.
The following provides more detail about the various defendants convicted and the sentences imposed.
- On January 8, 2024, Kahlia Nichelle Washington, 27, from Phenix City, Alabama, received a sentence of 18 months in prison for conspiracy to possess methamphetamine with intent to distribute after her July 11, 2023 conviction at trial.
- On December 27, 2023, Xavier Toombs, 35, also a resident of Phenix City, received a sentence of 60 months in prison for conspiracy to possess methamphetamine with intent to distribute. Toombs pleaded guilty to the charge on June 22, 2023.
- On December 1, 2023, 38-year-old Andre Tremayne Franklin, from Columbus, Georgia, received a sentence of 320 months in prison. Previously, on July 11, 2023, a jury found Franklin guilty of conspiracy to possess methamphetamine with intent to distribute the drug.
- On November 11, 2023, Justin Garrett, 31, also from Columbus, received a 204-month sentence for conspiracy to possess methamphetamine with intent to distribute. Garrett pleaded guilty to the charge on June 22, 2023.
- On October 25, 2023, 34-year-old Khourtney Jakeith Brown, another resident of Phenix City, received a prison sentence of 262 months for conspiracy to possess methamphetamine with intent to distribute. Khourtney Brown pleaded guilty to that charge on June 28, 2023.
- On October 6, 2023, Ryan Brown, 33, also from of Phenix City, received a sentence of 37 months in prison for possession with intent to distribute methamphetamine. Ryan Brown pleaded guilty on June 22, 2023.
- On October 6, 2023, 34-year-old Lorenzo Miles, another resident of Columbus, received a sentence of 87 months’ imprisonment for conspiracy to possess methamphetamine with intent to distribute after pleading guilty to the charge on June 27, 2023.
- On June 23, 2023, Torrez Jenkins, 28, a resident of Jonesboro, Georgia, received a 64-month prison sentence for conspiracy to possess methamphetamine with intent to distribute. He pleaded guilty to the charge on March 6, 2023.
These cases resulted from a partnership among federal, state, local, and tribal law enforcement to develop effective, locally based strategies to reduce drug trafficking and violent crime, making our neighborhoods safer for everyone.
The Drug Enforcement Administration, the Federal Bureau of Investigation, the Abbeville Police Department, the Auburn Police Division, the Eufaula Police Department, the Phenix City Police Department, and the Russell County Sheriff’s Office investigated these cases, with assistance from the Alabama Attorney General’s Office, the Alabama Law Enforcement Agency, the Alabama National Guard Counterdrug Program, the Elmore County Sheriff’s Office, the Henry County Sheriff’s Office, the Millbrook Police Department, the Montgomery Police Department, the Prattville Police Department, the United States Marshals Service Gulf Coast Regional Fugitive Task Force, and the Muscogee County, Georgia Sheriff’s Office. Assistant United States Attorneys Kevin P. Davidson and Brett J. Talley prosecuted the cases.
Developer Convicted of COVID-19 Relief FraudRead the Press Release
MIAMI – On Jan. 12, Eric Dean Sheppard, 55, of Bal Harbour, Florida, was convicted for submitting fraudulent COVID-19 relief loan applications and aggravated identity theft.
According to the trial evidence, Sheppard devised a scheme to defraud private lenders and the Small Business Administration (SBA) by filing fraudulent loan applications for multiple companies under both the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. The applications were supported by fabricated documents, including Employer’s Quarterly Tax Returns (IRS Form 941), and company tax returns. In addition, Sheppard’s accountant’s signature was forged on the tax returns. From May 2020 to March 2021, Sheppard obtained almost $900,000 in COVID-19 relief loans.
Sheppard was convicted by a jury on four counts of wire fraud, and two counts of aggravated identity theft. Sheppard was acquitted of five counts of wire fraud and three counts of aggravated identity theft. Sentencing is set for April 5, 2024. Sheppard is facing a mandatory minimum term of two years in prison, that must run consecutive to any other sentence imposed, on the aggravated identity theft count(s), and up to 80 years in prison on the wire fraud counts, as well as restitution and forfeiture of the loan proceeds.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the conviction. Assistant U.S. Attorneys Aimee Jimenez and Ana Maria Martinez prosecuted the case. Assistant U.S. Attorney Mitch Hyman is handling asset forfeiture.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through PPP. In April 2020 Congress authorized over $300 billion in additional PPP funding.
PPP funding allowed qualifying small businesses and other organizations to receive loans. PPP loan proceeds had to be used by businesses on payroll costs, interest on mortgages, rent, and utilities. PPP allowed the interest and principal on the loan to be forgiven if the business spent the loan proceeds on these expense items within a designated period of time, after receiving the proceeds, and used at least a certain percentage of the PPP loan proceeds on payroll expenses.
Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide EIDLs to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website. The applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On Sept. 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-20290.
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Convicted Felon Indicted for Illegally Attempting to Buy A FirearmRead the Press Release
Jacksonville, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Jason Harris (42, Palm Coast) with making a false statement to a federally licensed firearms dealer during the attempted purchase of a firearm. If convicted, Harris faces a maximum penalty of five years in federal prison.
According to the indictment, Harris completed an ATF Form 4473 during the attempted purchase of a firearm from Southeastern Sports, a federally licensed firearms dealer. Harris indicated on the required paperwork that he was not a convicted felon. The indictment alleges that this was a false statement, and that Harris was previously convicted of multiple felonies, including robbery, shooting or throwing a deadly missile, felony battery and sale of cocaine. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
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 the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Frank Talbot.
This is another case uncovered through the FBI’s National Instant Criminal Background Check System (NICS). All NICS denials are reported to federal law enforcement and are reviewed daily for potential criminal prosecution. Federal law makes it a felony offense to make a false statement to a firearms dealer when trying to buy a gun.
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.
Commercial truck driver admits trafficking charge after trying to haul approximately 30 kilos of cocaine across Montana border into CanadaRead the Press Release
GREAT FALLS — A commercial truck driver from Canada today admitted to a cocaine trafficking crime after U.S. Customs and Border Protection officers found approximately 30 kilograms of cocaine in watermelon pallets as the driver was attempting to enter Canada at the Montana border, U.S. Attorney Jesse Laslovich said today.
Kareshmaa Kaur Jagroop, 42, of Ontario, Canada, pleaded guilty to possession with intent to distribute cocaine as charged in a superseding information. Jagroop faces a maximum of 20 years in prison, a $1 million fine and at least three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for May 23. Jagroop was released on conditions to a treatment center in Montana pending further proceedings.
The government alleged in court documents that in July 2021, a commercial truck was northbound on Interstate 15 near the Sweetgrass Port of Entry in Toole County. As it approached the border in the outbound lane, Customs and Border Protection officers signaled the truck to stop, but the driver ignored the signal and continued past the outbound booth. Officers chased down the truck, which eventually stopped, and had the driver, Jagroop, reverse the truck back to the outbound booth for inspection. As part of the inspection, Jagroop drove through a screening machine, which showed potential anomalies in the trailer. Officers conducted a manual search and unloaded the contents with a forklift. Officers removed two pallets of watermelons and saw a plastic bag that contained approximately 30 kilograms, which is about 66 pounds, of cocaine. During an interview, Jagroop told officers she entered the United States about one week prior to the stop and delivered produce to supermarkets in Oregon and California. She eventually admitted that she was hauling cocaine for a group in Canada.
Assistant U.S. Attorney Jeffrey K. Starnes is prosecuting the case. The U.S. Customs and Border Protection and Homeland Security Investigations conducted the investigation.
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Columbia County Convicted Felon Sentenced to More Than Six Years on Narcotics and Firearms ChargesRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Kristofferson Farmer, Jr. (24, Lake City) to six years and eight months in federal prison for possession with the intent to distribute Alpha-PVP, a controlled substance and possession of a firearm in furtherance of a drug trafficking offense. Farmer had pleaded guilty on October 4, 2023.
According to court documents, on February 7, 2023, law enforcement executed a search warrant at Farmer’s residence. Found inside the residence was Alpha-PVP, fentanyl, cocaine, and marijuana. Additionally, three loaded firearms were found inside the residence, including a 45 caliber Glock pistol that had been reported stolen, a 9mm caliber Glock pistol, and an AR-15 rifle. Farmer admitted to owning the firearms and narcotics and stated he made approximately $40,000 a month selling narcotics out of his residence. Farmer’s DNA was found on the AR-15 rifle.
Farmer was previously convicted (2018) for possessing a firearm as a convicted felon and carrying a concealed firearm. As such, he is prohibited from producing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Columbia County Sheriff’s Office. 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.
Colorado Resident Charged with Federal Hate Crimes and Firearm Offenses Related to Mass Shooting at Club QRead the Press Release
A Colorado resident was charged today by an information with hate crimes and firearms charges related to the mass shooting at Club Q, an LGBTQI+ establishment in Colorado Springs, Colorado, on Nov. 19, 2022.
The information charges that Anderson Lee Aldrich, 23, formerly of Colorado Springs, murdered five people, injured 19 and attempted to murder 26 more in a willful, deliberate, malicious and premediated attack at Club Q. According to the information, Aldrich entered Club Q armed with a loaded assault weapon and began firing. Aldrich continued firing until Aldrich was subdued by patrons of the Club. The information also alleges that Aldrich committed this attack because of the actual or perceived sexual orientation and gender identity of any person.
Aldrich filed a notice of disposition and requested that the court schedule a change of plea hearing. In consultation with the victims of this incident, the parties jointly filed a motion requesting that the court schedule the change of plea and sentencing hearings on the same date. The parties further informed the court that there is a plea agreement in this matter, and it is anticipated that the defendant has agreed to plead guilty to all charges in the information. The time for the entry of the guilty plea has not yet been set.
U.S. Attorney Cole Finegan for the District of Colorado, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, and Special Agent in Charge Mark D. Michalek of the FBI Denver Field Office made the announcement.
The FBI Denver Field Office and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorneys Alison Connaughty and Bryan Fields for the District of Colorado and Trial Attorney Maura White of the Civil Rights Division are prosecuting the case.
An information is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Colorado Resident Charged with Federal Hate Crimes and Firearm Offense Related to Mass Shooting at Club QRead the Press Release
A Colorado resident was charged today by an information with hate crimes and firearms charges related to the mass shooting at Club Q, an LGBTQI+ establishment in Colorado Springs, Colorado, on Nov. 19, 2022.
The information charges that Anderson Lee Aldrich, 23, formerly of Colorado Springs, murdered five people, injured 19 and attempted to murder 26 more in a willful, deliberate, malicious and premediated attack at Club Q. According to the information, Aldrich entered Club Q armed with a loaded assault weapon and began firing. Aldrich continued firing until Aldrich was subdued by patrons of the Club. The information also alleges that Aldrich committed this attack because of the actual or perceived sexual orientation and gender identity of any person.
Aldrich filed a notice of disposition and requested that the court schedule a change of plea hearing. In consultation with the victims of this incident, the parties jointly filed a motion requesting that the court schedule the change of plea and sentencing hearings on the same date, which the court granted. The parties further informed the court that there is a plea agreement in this matter, and it is anticipated that the defendant has agreed to plead guilty to all charges in the information. The time for the entry of the guilty plea has not yet been set.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Cole Finegan for the District of Colorado and Special Agent in Charge Mark D. Michalek of the FBI Denver Field Office made the announcement.
The FBI Denver Field Office and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorneys Alison Connaughty and Bryan Fields for the District of Colorado and Trial Attorney Maura White of the Civil Rights Division are prosecuting the case.
An information is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Cheektowaga man pleads guilty to sex traffickingRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that James Fox, 41, of Cheektowaga, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to sex trafficking by coercion, which carries a mandatory minimum penalty of 15 years in prison, a maximum of life in prison, and a $250,000 fine.
Assistant U.S. Attorneys Nicholas T. Cooper and Aaron J. Mango, who are handling the case, stated that between January 2019, and May 2020, Fox coerced an individual identified as T.P. to engage in commercial sex acts for him, providing T.P., who was addicted to heroin, with heroin and crack cocaine in exchange for sex. On the verge of physical withdrawal sickness, Fox supplied T.P. with small amounts of heroin to keep T.P. dependent and to coerce T.P. to engage in commercial sex acts, which included the use of physical restraints. On one occasion, T.P. suffered a heroin overdose. Fox administered four doses of Narcan and T.P. ultimately regained consciousness.
In addition, between 2018 and 2021, Fox coerced five other individuals to engage in commercial sex acts for him. Fox provided these victims, who were also addicted to heroin, with heroin and crack cocaine in exchange for sex. Similarly to T.P., these victims would be on the verge of physical withdrawal sickness, and Fox would supply them with a small mount to keep them dependent and to coerce them to engage in commercial sex acts, which included the use of physical restraints.
The plea is a result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, the Lancaster Police Department, under the direction of Chief William Karn. Jr. and Cheektowaga Police Department, under the direction of Chief Brian Coons.
Sentencing is scheduled for May 15, 2024, at 10:00 a.m. before Judge Sinatra.
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Cedar Rapids Woman Involved in Methamphetamine Conspiracy Sentenced to PrisonRead the Press Release
A woman who conspired with others to distribute methamphetamine was sentenced today to six years in federal prison.
Allison Mills, age 32, from Cedar Rapids, Iowa, received the prison term after a July 25, 2023 guilty plea to one count of conspiracy to distribute a controlled substance.
Evidence at the plea and sentencing hearings showed that Mills was involved in a large-scale drug trafficking organization that was responsible for mailing methamphetamine from California to Iowa through the United States Postal Service. Mills received at least five packages from California that each contained multiple pounds of methamphetamine. In exchange for allowing these packages to be delivered to her address, Mills received a pound of methamphetamine from one of her co-conspirators for each box she received.
Mills was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Mills was sentenced to 72 months’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Mills is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Adam J. Vander Stoep and was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the United States Postal Inspection Service, the Internal Revenue Service, and the Drug Enforcement Administration (DEA) Task Force. The DEA Task Force consists of the DEA, the Linn County Sheriff's Office, the Cedar Rapids Police Department, the Marion Police Department, and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-91.
Follow us on Twitter @USAO_NDIA.
Bakersfield CPA Sentenced to 15 Months in Prison for Stealing $355,000 from InvestorsRead the Press Release
FRESNO, Calif. — Jeffrey Todd Stewart, 58, of Bakersfield, was sentenced today to 15 months in prison for stealing $355,000 from investors, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Stewart was employed as a certified public accountant in Bakersfield. Between September 2014 and June 2018, Stewart solicited and received over $2 million from investors to pay fees and expenses purportedly needed for an overseas business deal. Stewart represented to the investors that their investments were being used for the deal and promised significant returns. Although Stewart used most of the money for the purported deal, he spent $355,000 of the money obtained from the investors on his own personal expenses, including mortgage payments, trips to Las Vegas, and gambling.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Brittany Gunter prosecuted the case.
Asheville, N.C. Man Is Sentenced to 14 Years for Trafficking Methamphetamine and FentanylRead the Press Release
ASHEVILLE, N.C. – Jonathan Maurice Logan, 35, of Asheville, N.C., was sentenced to 14 years 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, and Interim Chief Michael Lamb of the Asheville Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, in February 2022, law enforcement learned that Logan was trafficking narcotics in the Asheville area. Upon further investigation, law enforcement determined that Logan was renting a room in a hotel in Asheville which he used to facilitate his drug trafficking activities. On March 31, 2022, law enforcement obtained and executed a search warrant for Logan’s hotel room and vehicle, seizing multiple plastic bags containing nearly half a kilogram of methamphetamine and more than a kilogram of fentanyl. They further seized a digital scale, a blender, a brick press machine, a vacuum sealer, and more than $10,000 in cash.
Logan remains in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The DEA and the Asheville Police Department investigated the case.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville prosecuted the case.
Arizona Resident Indicted for Federal Bank FraudRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced today that on January 11, 2024, WILLIAM J. WHITE, age 63, of Phoenix, Arizona was indicted for bank fraud.
According to court documents, WHITE entered a local bank and used a false identification document in an attempt to cash a forged and fraudulent check.
The crime of bank fraud carries a penalty of up to 30 years imprisonment, followed by up to five years of supervised release, a fine of not more than $1,000,000, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Diplomatic Security Service, and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Richard R. Pickens, II of the Financial Crimes Unit is in charge of the prosecution.
Monday 15 January 2024
U.S. Attorney Totten Presents Tribute from Attorney General Garland to Civil Rights Icon, Ms. Ruby BridgesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today presented Ms. Ruby Bridges with a letter of tribute from U.S. Attorney General Merrick Garland, recognizing her courageous contribution to the advancement of civil rights. The presentation took place at the 39th Annual Day of Celebration at the Lansing Center in Lansing, Michigan, hosted by the Dr. Martin Luther King Jr. Commission of Mid-Michigan.
“The brave steps 6-year-old Ruby Bridges took on November 14, 1960, and for months thereafter blazed a path of opportunity for countless children who followed,” said U.S. Attorney Mark Totten. “The role the U.S. Department of Justice played in protecting Ruby Bridges, escorted by multiple Deputy U.S. Marshals, was one of our proudest moments. I was thrilled to meet Ms. Bridges and I’m grateful for her incredible legacy.”
WATCH: Today’s presentation can be viewed on YouTube or the U.S. Attorney’s Facebook Page.
[Uncredited DOJ photographer. William Frantz Elementary School, 1960.]
On November 14, 1960, 6-year-old Ruby Bridges entered William Frantz Elementary School in New Orleans, Louisiana under a court order requiring the school system to admit children of color. Although the U.S. Supreme Court had struck down school segregation in its 1954 Brown v. Board of Education decision, many schools across the United States remained segregated. When Ruby first entered the school, and for months thereafter, she was met by screaming crowds and racial slurs. That first day and for the rest of the school year, Ruby was accompanied by several Deputy U.S. Marshals from the U.S. Marshal’s Service, an agency within the U.S. Department of Justice. Only one teacher was willing to accept Ruby, her father lost his job, grocery stores refused to sell food to her family, and her grandparents were evicted from their farm. More information about Ruby Bridges is available on this National Park Service webpage.
An image of the letter of tribute from Attorney General Merrick Garland, presented by U.S. Attorney Mark Totten, is available below.
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Saturday 13 January 2024
Former Courtesy Patrol Operator Pleads Guilty to Bankruptcy FraudRead the Press Release
BECKLEY, W.Va. – Robert Martin, 67, of Beckley, pleaded guilty yesterday to fraudulent receipt of property from a debtor. Martin admitted to paying himself without authorization while serving as the chief executive officer of the entity that operated the West Virginia Courtesy Patrol.
According to court documents and statements made in court, Martin was CEO of Citizens Conservation Corp (CCC), which he formed in 1993 and which dissolved in or about 2019. CCC’s primary source of income from in or around 1998 until in or around the summer of 2018 was a multimillion-dollar contract with the State of West Virginia to operate the Courtesy Patrol roadside assistance service.
On April 3, 2019, CCC filed for bankruptcy after the loss of the state contract in 2018 left it financially unstable. During a May 2, 2019, bankruptcy creditors meeting, Martin testified that CCC was not generating income, that he was not receiving a salary because of the lack of income, and that he expected CCC to be paid on some receivables owed to it. The United States Trustee, who oversees the administration of bankruptcy cases in the Southern District of West Virginia, told Martin that he was not allowed to take a salary as a controlling officer without U.S. Bankruptcy Court approval.
On May 8, 2019, CCC received more than $41,000 from the West Virginia Treasury, and the money was deposited in CCC’s bank account. Two days later, Martin caused $50,000 to be transferred from that bank account to an account at a different bank. Martin paid himself $32,072.76 from those transferred funds with six separate checks. Martin admitted that he did not obtain or have U.S. Bankruptcy Court approval for those payments, even though he knew that was required. Martin further admitted that he did not get prior approval because he intended to hide these payments from the U.S. Bankruptcy Court.
Martin also admitted that CCC knowingly misspent $108,751.60 it had received from the United States Department of Interior National Park Service (NPS) between September 10 and October 1, 2018. CCC entered into a cooperative agreement with NPS on November 20, 2014 to recruit, hire, train and place young adults for internship positions at national parks throughout the country. Funding made available under the agreement included $111,221.09 to hire and pay two interns to work at the Olmsted Center for Landscape Preservation for 13 months. Martin admitted that CCC did not hire or place any interns with that funding. Instead, CCC drew down all but $2,469.49 of that funding for unallowable CCC operating expenses following the loss of the Courtesy Patrol contract. Martin admitted that he knew that the funds were misapplied or fraudulently converted in this way.
Martin is scheduled to be sentenced on May 3, 2024, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine. Martin also owes restitution of $37,072.76 to the U.S. Trustee and up to $251,171.20 to the U.S. Department of Interior National Park Service.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the U.S. Department of Interior-Office of Inspector General (DOI-OIG). 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 Frank W. Volk presided over the hearing. Assistant United States Attorney Holly Wilson 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. 5:23-cr-147.
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Friday 12 January 2024
কুইন্সে সহিংস অপহরণের জন্য সাত ব্যক্তিকে অভিযুক্ত করা হয়েছেRead the Press Release
আজ ব্রুকলিনের ফেডারেল কোর্টে পূর্বেকার একটি রায় বাতিল করে সৈয়দ রুবেল আহমেদ (Syed Rubel Ahmed), শাহাদ আলম (Shahed Alom), আবু চৌধুরী (Abu Chowdhury), আঞ্জু খান (Anzu Khan) এবং সুলতানা রাজিয়া (Sultana Razia)-এর বিরুদ্ধে অপহরণ এবং জন ডো-1 (John Doe-1)-কে অপরহণের ষড়যন্ত্র করার অভিযোগে; আবু চৌধুরী এবং ইফফাত লুবনার (Iffat Lubna) বিরুদ্ধে জন ডো-2 (John Doe-2)-কে অপরহণ করার জন্য ষড়যন্ত্র করার জন্য; এদের বিরুদ্ধে চার্জ পেশ করার বিষয়টি ঘোষণা করা হয়েছে। আবু চৌধুরি ও তার স্ত্রী লুবনা এর বিরুদ্ধে এর আগে উল্লিখিত অভিযোগে জন ডো-2 অপহরণের অভিযোগ আনা হয়েছিল। আসামী এবং ভুক্তভোগীগণ Queens একই জাতিগত সম্প্রদায়ের সদস্য। আহমেদ, আলম, খান ও রাজিয়া-কে আজ গ্রেপ্তার করা হয়েছে এবং আজ বিকেলে ইউনাইটেড স্টেটস ম্যাজিস্ট্রেট জজ Joseph A. Marutollo এর সামনে হাজির করা হবে। আবু চৌধুরি ও লুবনা-কে এর আগে গ্রেপ্তার করা হয়েছিল এবং পরবর্তী তারিখে তাদের বিরুদ্ধে অভিযোগ গঠন করা হবে। সপ্তম আসামী পলাতক রয়েছেন।
ব্রিয়ন পিস (Breon Peace), ইউনাইটেড স্টেটস অ্যাটর্নি ফর দ্য ইস্টার্ন ডিস্ট্রিক্ট অব নিউ ইয়র্ক, জেমস স্মিথ (James Smith), অ্যাসিস্ট্যান্ট ডিরেক্টর-ইন-চার্জ, ফেডারেল ব্যুরো অব ইনভেস্টিগেশন, নিউ ইয়র্ক ফিল্ড অফিস (FBI) এবং এডওয়ার্ড এ. ক্যাবান (Edward A. Caban), কমিশনার, নিউ ইয়র্ক সিটি পুলিশ ডিপার্টমেন্ট (NYPD), গ্রেফতার ও অভিযোগের বিষয়টি ঘোষণা করেছে।
ইউনাইটেড স্টেটস অ্যাটর্নি পিস বলেন, “অভিযোগ অনুসারে, আসামীগণ নির্মমভাবে শারীরিক ও যৌন নির্যাতনের মতো ঘটনা ঘটিয়েছে”। “আসামীগণ অপরাধকে আরো গুরুত্বর করতে ভুক্তভোগীদের সাথে তাদের শেয়ার করা জাতিগত পটভূমিকে কাজে লাগিয়েছে বলে অভিযোগ রয়েছে। এই আসামীগণের কারণে ভুক্তভোগী হওয়া যেকোনো কাউকে ইউনাইটেড স্টেটস অ্যাটর্নি'স অফিসের https://www.justice.gov/usao-edny/report-crime ঠিকানায় গিয়ে যোগাযোগ করার জন্য আমি অনুরোধ জানাচ্ছি।”
মি. পিস তদন্তে সহায়তা করার জন্য জয়েন্ট রোবারি ভায়োলেন্ট ক্রাইমস টাস্ক ফোর্সকে ধন্যবাদ জানান যেটি FBI-এর এজেন্ট এবং NYPD-এর গোয়েন্দাদের সমন্বয়ে গঠিত।
“অপহরণের শিকার হওয়া ব্যক্তিদের উপর এই বিবাদীরা যে সহিংস শারীরিক এবং যৌন অত্যাচার করেছে, তা অত্যন্ত উদ্বেগজনক বিষয়। আমাদের সমাজে সহিংস অপরাধের কোনো জায়গা নেই এবং যারা এই ধরনের অপরাধ করবে, তারা আমাদের বিচারব্যবস্থার পরম শক্তির সম্মুখীন হবে -- সেটা যাতে ঘটে, FBI এবং FBI নিউ ইয়র্ক জয়েন্ট ভায়োলেন্ট ক্রাইম টাস্ক ফোর্স তা নিশ্চিত করবে,” FBI অ্যাসিস্ট্যান্ট ডিরেক্টর-ইন-চার্জ স্মিথ বলেন।
NYPD-এর কমিশনার কাবান (Caban) বলেন, “NYPD-এর পুরুষ ও মহিলারা এই সমস্ত অত্যন্ত গুরুতর অভিযোগের নিন্দা করে। আমরা ও আমাদের আইন বাস্তবায়নকারী পার্টনাররা সহিংসতা এবং অত্যাচার সংক্রান্ত সব অভিযোগকে অতি গুরুত্ব সহকারে বিবেচনা করে এবং New York City রাস্তা থেকে এই ধরনের অপরাধ নির্মূল করার ব্যাপারে প্রতিজ্ঞাবদ্ধ।”
27 মার্চ 2023 তারিখে Jamiaca, Queens জন ডো-1 এর অপহরণ
অপহরণের অভিযোগ এবং আদালতের দাখিলার বিবরণ অনুযায়ী 27 মার্চ 2023 তারিখে প্রায় 14 ঘণ্টা ধরে আহমেদ, আলম, চৌধুরী, খান এবং রাজিয়া Jamiaca, Queens একটি পাবলিক স্ট্রিটের একজন ভুক্তভোগী (“John Doe-1”)-কে অপহরণ ও লাঞ্ছিত করেছিল। 181st Street এবং Hillside Avenue-এর আশেপাশে জন ডো-1 হাঁটাহাটি করার সময় চৌধুরী তাকে হোন্ডা মিনিভ্যানে (SUV) জোর করে তুলে নিয়ে যাওয়ার অভিযোগ করেছে। চৌধুরী মিনিভ্যানের ভিতরেই জন ডো-1 কে মারতে শুরু করেছিলেন। অপহরণের সময়, চৌধুরী জন ডো-1 কে মিনিভ্যান থেকে বের হতে বাধ্য করেছিলেন এবং ভুক্তভোগীকে আবাসিক এলাকায় নগ্নাবস্থায় দাঁড় করিয়ে ছবি তুলছিলেন। অপহরণের সময় আহমেদ, আলম, খান এবং রাজিয়া সেলুলার টেলিফোনের মাধ্যমে আবু চৌধুরী এর সাথে যোগাযোগ করে সারা রাত জুড়ে বিভিন্ন পয়েন্টে চৌধুরী এর সাথে সাক্ষাৎ করেছিলেন এবং জন ডো-1 কে আরো মারধর ও হত্যার হুমকিতে অংশ নিয়েছিলেন। জন ডো-1 অপহরণকারীদের নিকট পানি পানের জন্য আকুতি জানালে আসামীগণ তাকে চেতনানাশক জল মিশ্রিত দিয়েছিল। পরবর্তীতে জন ডো-1 জ্ঞান হারিয়ে ফেলে এবং অপহরণের পরেরদিন স্থানীয় একটি হাসপাতালে তার জ্ঞান ফিরে পায়।
11 মে 2023 তারিখে Woodside, Queens জন ডো-2 এর অপহরণ
অপহরণের অভিযোগ এবং আদালতের দাখিলার বিবরণ অনুযায়ী 11 মে 2023 তারিখ থেকে শুরু হয়ে প্রায় তিন চৌধুরী এবং লুবনা জন ডো-1 কে অপহরণ ও লাঞ্ছিত করেছিল। জন ডো-2 Woodside, Queens 72 তম স্ট্রিট এবং Broadway-এর পাশের একটি রেস্তোরাঁর বাইরে লুবনা এর সাথে দেখা করার জন্য অপেক্ষা করছিলেন তখন চৌধুরী জন ডো-2 কে জোর করে একটি মিনিভ্যানে তুলে মারধর শুরু করেন। অপহরণের সময়, চৌধুরী এবং লুবনা জন ডো-2 কে একটি হোটেলে নিয়ে গেলে সেখানে চৌধুরী জন ডো-2 কে যৌন হয়রানি করেন। এছাড়াও চৌধুরী ভুক্তভোগীর নিরাপত্তার জন্য $20,000 দাবি করে জন ডো-2 এর বাবার কাছে মুক্তিপণের জন্য কল করেছিলেন। যেখানে অপহরণের ঘটনাটি ঘটেছে সেটি হলো একটি জাতিগত সম্প্রদায় সেখানে আসামীগণ ভুক্তভোগীকে সতর্ক করে বলেছিল যে তিনি যদি আইন প্রয়োগকারীকে সহযোগিতা করে তাহলে তারা সহজেই তাকে খুঁজে পেতে পারে। অপহরণের তৃতীয় দিনে, চৌধুরী জন ডো-2 কে বেঁধে একটি পরিত্যক্ত বাড়িতে ফেলে রেখে যান। জন ডো-2 তার বাঁধন দাঁত দিয়ে কেটে, জানালা ভেঙে এবং পাশের বাসিন্দাদের 911 নম্বরে কল করতে বলে নিজেকে মুক্ত করতে সক্ষম হয়েছিল।
অভিযুক্তের অভিযোগগুলো হলো নিছক অভিযোগ এবং আসামীগণ হলো দোষী প্রমাণিত না হওয়া পর্যন্ত তারা নির্দোষ বলে মনে করা হয়। সবগুলোতে দোষী সাব্যস্ত হলে আসামিদের সর্বোচ্চ যাবজ্জীবন কারাদণ্ড হতে পারে।
সরকারের মামলাটি অফিস'স জেনারেল ক্রাইম সেকশন (Office’s General Crimes Section) কর্তৃক পরিচালিত হচ্ছে। অ্যাসিস্ট্যান্ট ইউনাইটেড স্টেটস অ্যাটর্নি স্টেফানি পাক (Stephanie Pak) এবং ভিনসেন্ট চিয়াপিনি (Vincent Chiappini) প্যারালিগাল বিশেষজ্ঞ ক্যাটরিনা বাতিস্তা (Katrina Batista)-এর সাথে যৌথভাবে প্রসিকিউশনের দায়িত্বে রয়েছেন।
পূর্বে অভিযুক্ত আসামীগণ:
আবু চৌধুরি (ABU CHOWDHURY)
বয়স: 34
জ্যামাইকা, কুইন্স (Jamaica, Queens)
ইফাত লুবনা (IFFAT LUBNA)
বয়স: 24
জ্যামাইকা, কুইন্স (Jamaica, Queens)
নতুনভাবে-অভিযুক্ত বিবাদীগণ:
সৈয়দ রুবেল আহমেদ (SYED RUBEL AHMED)
বয়স: 43
জ্যামাইকা, কুইন্স (Jamaica, Queens)
শাহেদ আলম (SHAHED ALOM)
বয়স: 29
জ্যামাইকা, কুইন্স (Jamaica, Queens)
আঞ্জু খান (ANZU KHAN)
বয়স: 28
জ্যামাইকা, কুইন্স (Jamaica, Queens)
সুলতানা রাজিয়া (SULTANA RAZIA)
বয়স: 38
উডসাইড কুইন্স (Woodside, Queens)
E.D.N.Y. Docket No. 23-CR-278 (S-1) (NRM)
West Bloomfield Doctor Sentenced for Illegal Distribution of Prescription DrugsRead the Press Release
DETROIT - A West Bloomfield doctor was sentenced to 5 years in federal prison after pleading guilty to the unlawful prescribing of prescription drug-controlled substances, announced United States Attorney Dawn N. Ison.
Joining Ison in the announcement was Special Agent in Charge Orville O. Greene, U.S. Drug Enforcement Administration (DEA).
Scott Henry Cooper, 61, was sentenced before United States District Judge Denise Page Hood in Detroit.
During his guilty plea, Cooper admitted that he practiced as a primary care physician at Comprehensive Medical Associates, located in West Bloomfield, MI, during 2013-2018. Some of his patients sought highly abused and valuable prescription drug-controlled substances such as oxycodone, hydrocodone, methadone, alprazolam (Xanax) and dextroamphetamine-amphetamine (Adderall). Cooper admitted in an interview with the DEA that his controlled substance patients were problem patients, he did not want to see them, and in fact he did not see them routinely, but continued to prescribe their controlled substances. He has not been allowed to prescribe controlled substances since 2020.
In the case of the patient that formed the basis of his guilty plea, the defendant prescribed oxycodone and other highly abused drugs for almost three years without having patient visits or contact with the patient. While the patient served almost three years in prison, the defendant wrote monthly controlled substance prescriptions, totaling over 7,000 dosage units, that were picked up by the patient’s relative. When the patient was released from prison and told Cooper he had been in prison, Cooper continued prescribing the same dangerous combination of drugs he had been prescribing while the patient was in prison.
“Oxycodone is extremely powerful, addictive, and easily abused. Michigan has seen devastating statistics relating to opioid drug overdoses in the last five years. My office remains committed to pursuing medical providers who abuse their license and ultimately inflict this type of significant harm on our community,” stated U.S. Attorney Ison.
DEA Special Agent in Charge Greene stated, “Healthcare professionals who blatantly disregard their commitments to safeguard controlled substances do so at the risk of endangering their patients and undermining critical public health efforts to address the opioid epidemic. Today’s sentencing emphasizes law enforcement’s commitment to saving lives by investigating, arresting, and prosecuting those responsible for fueling the overdose crisis.”
The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis.
The case was prosecuted by Assistant United States Attorney Wayne F. Pratt. The investigation was conducted by the Drug Enforcement Administration.
U.S. Attorney’s Office responsible for over $31 million in collections and forfeitures in fiscal year 2023Read the Press Release
ATLANTA – U.S. Attorney Ryan K. Buchanan announced that the Northern District of Georgia was responsible for collections and forfeitures of over $31 million in Fiscal Year 2023.
“This district maintains an unwavering commitment to securing financial justice for victims of crime and United States taxpayers,” said U.S. Attorney Ryan K. Buchanan. “As this prior fiscal year’s results reflect, this district will vigorously pursue the recovery of money for crime victims and the public through all available legal means, whether by collecting criminal and civil monetary penalties, civilly pursuing those who seek to take unlawful advantage of federal agencies and programs or identifying and forfeiting ill-gotten gains.”
Our office collected more than $22 million through the district’s Financial Litigation Program, which is responsible for the collection of civil and criminal debts, fines, and monetary penalties due to victims of crime and the United States. Specifically, our office obtained $8.4 million in restitution, fines and/or assessments imposed against defendants in criminal cases. Federal law requires that defendants who commit certain crimes pay restitution to the victims of those crimes. Criminal fines and assessments paid by defendants go to the Department of Justice’s Crime Victims Fund, which distributes the funds to federal and state victim compensation and victim assistance programs.
We also collected $13.7 million in affirmative civil enforcement cases. The United States initiates affirmative civil enforcement cases to recover government money lost to fraud or other misconduct, or to collect fines imposed on individuals and/or corporations for violations of federal health care, safety, or environmental laws and controlled substance regulations, among other laws.
In addition, the district deposited over $9.4 million dollars into the Department of Justice’s Asset Forfeiture Fund and Treasury Forfeiture Fund through civil and criminal forfeiture actions handled by the office’s Money Laundering and Asset Recovery Section. Of the total amount forfeited, more than $3 million was forfeited in civil forfeiture cases and over $6 million was forfeited in criminal cases. The Department of Justice uses forfeited property to compensate crime victims as well as for a variety of other law enforcement purposes, and shares these proceeds with federal, state and local law enforcement partners. In Fiscal Year 2023, $343,870 was returned to crime victims and over $1.4 million was shared with the district’s law enforcement partners.
This office also shared in the recovery of an additional $1.4 billion resulting from the settlement of the UBS civil action for misconduct related to UBS’ underwriting and issuance of residential mortgage-backed securities in 2006 and 2007 brought under the Financial Institutions Reform, Recovery and Enforcement Act by a Department of Justice Working Group dedicated to investigating banks and other entities for their roles in creating and issuing residential mortgage-backed securities leading up to the 2008 financial crisis.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
U.S. Attorney Parker announces management appointmentsRead the Press Release
CINCINNATI – Kenneth L. Parker, United States Attorney for the Southern District of Ohio, today announced new appointments to his management staff.
Parker oversees a staff of approximately 125 people, including 65 Assistant United States Attorneys. The Office serves the southern 48 counties in the state and is responsible for virtually all federal litigation in the Southern District of Ohio. This includes criminal prosecutions, civil lawsuits by and against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers.
Management staff appointments are effective Jan. 13, and they include:
First Assistant United States Attorney Kelly A. Norris
Ms. Norris joined the U.S. Attorney’s Office in Columbus in 2018, primarily handling narcotics and gun cases. During her tenure, she has been the District’s Organized Crime Drug Enforcement Task Force (OCDETF) Deputy Chief and Project Safe Neighborhoods (PSN) Coordinator. She previously served in the Criminal Division of the U.S. Attorney’s Office for the Eastern District of Tennessee, beginning in 2008. She earned her bachelor’s degree from Xavier University and her law degree from the Valparaiso University School of Law before working for the Ohio Attorney General’s Office as an Assistant Attorney General in the Health Care Fraud Section.
Criminal Chief Christy L. Muncy
Ms. Muncy most recently served as the District’s Executive Assistant United States Attorney and served as the Organized Crime and Drug Enforcement Task Force Chief from 2019 to 2022. Muncy has also served as the District’s Project Safe Childhood Coordinator. She has served as a criminal Assistant U.S. Attorney since 2007. Prior to joining the U.S. Attorney’s Office, Muncy was First Assistant Commonwealth Attorney for Kenton County, Kentucky, from 2002-2007. Muncy is a graduate of Eastern Kentucky University and the Syracuse University School of Law.
Muncy will be assisted in her Criminal Chief Duties by five Deputy Criminal Chiefs. They are:
Brian J. Martinez, Deputy Criminal Chief (Columbus)
Mr. Martinez has served as the Deputy Criminal Chief in the Columbus office since 2019. Martinez joined the U.S. Attorney’s Office in 2014. He served as the Chief of Staff for the Associate Attorney General of the United States from 2012 to 2014 and as the Chief of Staff of the Justice Department’s Civil Division from 2009 to 2012. Prior to his work at the Department, Martinez was an associate at Morrison & Foerster LLP in San Francisco from 2003 to 2009. Martinez clerked for the Hon. Thelton Henderson of the United States District Court for the Northern District of California. He attended Stanford University for both his undergraduate education and law school.
Emily N. Glatfelter, Deputy Criminal Chief (Cincinnati)
Ms. Glatfelter has served as a Deputy Criminal Chief in the Cincinnati office since 2015. She joined the U.S. Attorney’s Office in Cincinnati in 2012, primarily handling financial crimes matters. She previously served in the Criminal Division of the U.S. Attorney’s Office District of Maryland, beginning in 2006. She earned her bachelor’s degree from Butler University and her law degree from Indiana University before working for Arnold & Porter LLP in Washington D.C. She also clerked for the Hon. David F. Hamilton while he served as U.S. District Judge for the Southern District of Indiana.
Brent G. Tabacchi, Deputy Criminal Chief (Dayton)
Mr. Tabacchi has served as a Deputy Criminal Chief in the Dayton office since 2021. He joined the U.S. Attorney’s Office in Dayton in 2007, handling the prosecution of drug organizations and financial crimes. He previously served in the Criminal Division in the U.S. Attorney’s Office in the Central District of California. In the early 2000s, he worked as an associate at Sidley Austin LLP in Chicago and as a law clerk for the Hon. Kenneth F. Ripple, Judge for the U.S. Seventh Circuit Court of Appeals. He graduated from the University of Illinois with his bachelor’s degree and law degree.
Frederic Shadley, Deputy Criminal Chief (Organized Crime & Drug Enforcement Task Force)
Mr. Shadley joined the office’s Organized Crime Drug Enforcement Task Force (OCDETF) in Cincinnati in 2022. He is a Cincinnati native who attended the University of Notre Dame for both his undergraduate and law degrees. Shadley has previously served as an Associate with Winston & Strawn in Chicago and as a Law Clerk for the Honorable John Blakley in the U.S. District Court for the Northern District of Illinois. Since 2017, he has served as an AUSA for the United States Attorney’s Office, Southern District of Florida.
Jessica W. Knight, Deputy Criminal Chief (Support Staff)
Ms. Knight joined the U.S. Attorney’s Office in 2012, primarily handling white collar and national security cases. She currently serves as the Anti-Terrorism Advisory Committee (ATAC) Coordinator, Chair of the Diversity, Equity, Inclusion and Accessibility (DEIA) Committee, and District Election Officer. She previously served as Assistant Deputy Criminal Chief from January 2021 – February 2022. Prior to joining the U.S. Attorney’s Office, Ms. Knight served as a Trial Attorney with the Department of Justice’s Tax Division. She earned her bachelor’s degree from Denison University, master’s degree from the University of Maryland and law degree from the University of Toledo, College of Law.
Civil Chief Brandi Stewart
Ms. Stewart joined the U.S. Attorney’s Office in Dayton in 2014, where she defended the United States and its agencies in a wide array of civil suits brought against the government. She currently serves in the Affirmative Civil Enforcement division in Cincinnati where she primarily investigates and prosecutes fraud and civil rights cases on behalf of the United States. She earned her bachelor’s degree from Vanderbilt University and received her Juris Doctor from the University of Kentucky Rosenberg College of Law. Prior to joining the U.S. Attorney’s Office, Stewart was in private practice at a large Cincinnati-based law firm practicing civil litigation.
Deputy Civil Chief John Stark
Mr. Stark joined the U.S. Attorney’s Office in Columbus in 2003, where he has primarily represented the federal government and individual federal employees in a wide array of defensive suits. Prior to joining the District, he was in private practice at Warner Norcross & Judd LLP in Michigan. He is also a veteran of the United States Army. Stark received his B.S., M.B.A., and J.D. degrees from The Ohio State University.
Appellate Chief Mary Beth Young
Ms. Young will continue as Appellate Chief, a position she has held since 2016, with supervisory responsibility for criminal and civil filings in the Court of Appeals and coordination of the District’s appellate practice with other divisions of the Department of Justice. Young became an Assistant U.S. Attorney in 2012 in Columbus after serving two years as a Special AUSA. Prior to joining the District, Young was in private practice in Columbus and served as a Visiting Assistant Professor at the Moritz College of Law. Young received her B.S. from the University of Kentucky, her M.S. from Georgia Tech, and her J.D. from the University of Chicago. Following law school, Young served as law clerk to Judge David Sentelle of the United States Court of Appeals for the D.C. Circuit, then to Justice Antonin Scalia of the United States Supreme Court.
Senior Litigation Counsel Heather A. Hill
Ms. Hill will continue as the District’s Senior Litigation Counsel (SLC), a position she has held since April 2021. As the SLC, Hill is responsible for legal training and development. She joined the U.S. Attorney’s Office in Columbus in 2011 and served as the District’s Project Safe Childhood (“PSC”) Coordinator from 2012 until 2021. She previously served as an Assistant U.S. Attorney in Washington D.C. from 2007 to 2011. Prior to beginning her career as an assistant federal prosecutor, Hill clerked for the Hon. Robert I. Richter while he served on the Criminal Division of the D.C. Superior Court. She received her law degree from the George Washington University Law School and her bachelor’s degree in Journalism from the University of Missouri.
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U.S. Attorney Announces Agreements with Morgan Stanley and Former Senior Employee, Pawan Passi, in Connection with Deceptive Practices in Block Trades BusinessRead the Press Release
Morgan Stanley & Co. LLC To Enter into a Non-Prosecution Agreement and to Pay $153 Million in Financial Penalties
Pawan Passi, Former Head of Morgan Stanley’s U.S. Equity Syndicate Desk, Admits Misconduct and Agrees to Enter into a Deferred Prosecution Agreement
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that Morgan Stanley & Co. LLC (“MORGAN STANLEY”) entered into a non-prosecution agreement (the “NPA”) with the U.S. Attorney’s Office and agreed to pay more than $153 million to the United States for making false statements in connection with the sale of certain “block trades” (the “Relevant Blocks”) from 2018 through August 2021. The NPA requires MORGAN STANLEY to forfeit $72,515,141 to the United States, representing its profits from the Relevant Blocks; to pay $64,016,082 in restitution, representing the harm it caused to the sellers of the Relevant Blocks; and to pay a $16,900,000 fine. The NPA requires MORGAN STANLEY to continue to cooperate with and provide information to the United States for at least three years from the date of the agreement. In the event that MORGAN STANLEY violates the NPA, the U.S. Attorney’s Office may prosecute MORGAN STANLEY.
Today’s corporate action reflects a careful weighing of factors relevant to the appropriate corporate resolution. The NPA recognizes that while the serious conduct to which MORGAN STANLEY has admitted was uncovered by the Government and was not voluntarily self-disclosed, (i) MORGAN STANLEY has provided extraordinary cooperation with this Office’s investigation; (ii) the investigation has not uncovered evidence of corporate management’s complicity in or knowledge of the wrongdoing; (iii) MORGAN STANLEY’s controls, while ultimately unsuccessful in uncovering the misconduct, were designed in part to detect misconduct in the block trades business and were applied in good faith; (iv) in 2022, MORGAN STANLEY implemented a series of remedial measures to create clearer policies governing its ability to communicate with the buy-side in advance of block trades and trained its employees on those policies; (v) MORGAN STANLEY has no prior criminal history of any kind, including no prior NPA or DPA; and (vi) MORGAN STANLEY has accepted full responsibility for its conduct and agreed to resolve with the U.S. Securities and Exchange Commission (“SEC”).
U.S. Attorney Williams also announced that PAWAN PASSI, the MORGAN STANLEY employee that supervised block trades during the relevant time, entered into a deferred prosecution agreement (the “DPA”) with the U.S. Attorney’s Office, pending court approval. In the DPA, PASSI admitted that, from 2018 through August 2021, he promised sellers of certain equity blocks that MORGAN STANLEY would keep information concerning their potential sales confidential, knowing that he would disclose that information to buy-side investors and that those investors would use the information to trade in advance of the block sales. The DPA provides that criminal prosecution of PASSI will be deferred during a period in which PASSI must demonstrate good behavior and fulfill the terms of the DPA, in which case PASSI will not be further prosecuted criminally. The case has been assigned to U.S. District Judge Analisa Torres, and a court appearance has been scheduled before U.S. Magistrate Judge Robyn F. Tarnofsky today at 11:00 a.m.
U.S. Attorney Damian Williams said: “Morgan Stanley, through the supervisor of its block trades business, Pawan Passi, deceived block sellers by promising confidentiality knowing that they would turn around and share that information with others to use to trade. As the Statement of Facts makes clear, the Government’s investigation uncovered the misconduct at Morgan Stanley. This fact serves as a reminder that we are watching. And we will continue to use all the tools at our disposal to root out fraud in our financial markets. Today’s actions show too that while we continue to act aggressively to enforce our nation’s laws, we evaluate each case and each prosecution on its facts and circumstances and will, where appropriate, consider alternatives to criminal prosecution, including declination, an NPA or DPA, whether for a corporation or an individual. Here, with respect to Morgan Stanley, while many factors weighed in Morgan Stanley’s favor, including extraordinary cooperation and remediation, the misconduct was not uncovered and voluntarily disclosed. Morgan Stanley now must comply with the terms of the NPA for the next three years and have a criminal resolution with the U.S. Attorney’s Office on its permanent record.”
Assistant Director in Charge James Smith said: “The integrity of our financial markets requires a level playing field, and when individuals and institutions intentionally tip the scales there must be consequences. Morgan Stanley and Mr. Passi, as admitted in the agreements, utilized confidential information regarding block trades to benefit themselves. The FBI, in order to maintain the public’s trust in our economic system, will hold any individual or financial entity engaging in complex financial crimes accountable in the criminal justice system.”
As part of the NPA, MORGAN STANLEY agreed to a statement of facts describing the deceptive conduct and the remedial measures that it took in response to learning of that conduct.
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Mr. Williams praised the outstanding work of the FBI. Mr. Williams further thanked the SEC, which today announced resolutions with MORGAN STANLEY and PASSI.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Justin Rodriguez, and Samuel P. Rothschild are in charge of the prosecution.
Towaoc Man Indicted on Sex Assault ChargesRead the Press Release
DURANGO – The U.S. Attorney’s Office for the District of Colorado announced that Lyndreth Hemp Wall, age 58, of Towaoc, Colorado was indicted on multiple charges stemming from alleged sexual assaults occurring on the Ute Mountain Ute Reservation. A federal grand jury returned the indictment, alleging Wall committed eight counts of sexual abuse in Indian Country and four counts of abusive sexual contact in Indian Country.
Wall made his initial appearance today before U.S. Magistrate Judge James Candelaria in Durango. If convicted on any of the counts of alleged sexual abuse in Indian Country, Wall faces a sentence of up to life in prison.
This case was investigated by the Federal Bureau of Investigation and Bureau of Indian Affairs. Anyone who has information about this case or about other possible victims is asked to call the FBI Denver office at (303) 629-7171.
The charges in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Case Number: 24-cr-00003-GPC-JMC
Toledo Man Found Guilty of Filing False Tax ReturnsRead the Press Release
TOLEDO – Lance Harris, 44, of Toledo, Ohio, was found guilty of two counts of making false claims against the United States after a two-day trial before U.S. District Court Judge James R. Knepp, II.
According to court documents and testimony, in January and February of 2020, Harris filed two tax returns with the IRS falsely claiming refunds of approximately $1.1 million dollars.
Harris will be sentenced on March 12, 2024, his sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case was investigated by the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorneys Gene Crawford and Dexter Phillips.
Update May, 10, 2024 – Harris was sentenced to 36 months in prison on two counts of making false claims against the United States, to run concurrently and pay $55,747.27 in restitution.
Three individuals sentenced for roles in fraud and identity theft ring that stole over $6 million in government fundsRead the Press Release
ATLANTA - Three individuals have been sentenced for their roles in a far-ranging fraud and identity theft ring that stole and laundered over $6 million in government funds that had been obtained using stolen identification information and the opening of fraudulent bank accounts.
“In just a few months, these defendants used hundreds of stolen identities and laundered millions in fraud proceeds from government programs—several of which were designed to help those most severely impacted by the COVID-19 pandemic,” said U.S. Attorney Ryan K. Buchanan. “Their sentences reflect the scope of their conduct and our commitment to partner with federal, state, and local investigators to prosecute individuals who seek to exploit government programs.”“These convictions highlight the commitment of our agency to combat fraud and protect the integrity of government funds,” said Kyle Munro, special agent in charge of the Fraud and Schemes Division of the Treasury Inspector General for Tax Administration. “The collaborative efforts of law enforcement agencies and our dedicated personnel have resulted in the successful apprehension and sentencing of those responsible for this egregious crime. We will continue to aggressively pursue individuals engaged in such criminal activities, sending a clear message that fraud and identity theft will not be tolerated. Our resolve to safeguard public funds and maintain the trust of the citizens remains steadfast.”
“These convicted criminals caused great stress to their victims upending their lives when they stole their identities and utilized the stolen identities to fraudulently gain federal tax funds intended to aid taxpayers,” said Demetrius Hardeman, Acting Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “Many people may be embarrassed or feel at fault when their identity has been taken. I want to let these victims know that it is not their fault and that they are not alone. IRS-CI will continue working closely with our partners to investigate, apprehend, and prosecute perpetrators who seek to steal the information of innocent victims, especially that of America’s seniors.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Between approximately January 2020 and October 2020, the defendants and others opened financial accounts using stolen personal identifying information from hundreds of victims and used these accounts to receive and launder the proceeds of various frauds, including fraudulently obtained federal income tax refunds, economic impact payments, SBA loans, and unemployment benefits from at least 21 states. In total, the scheme caused a loss of at least $6 million in government funds.
Edwin Owie, 63, of Dallas, Georgia, was sentenced to four years and eight months in prison, to be followed by three years of supervised release, and ordered to pay $2,390,357.03 in restitution to the federal and state victims. Owie pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft.
Deborah McNeill, 55, of Loganville, Georgia, was sentenced to four years in prison, to be followed by three years of supervised release, and ordered to pay $2,390,357.03 in restitution to the federal and state victims. McNeill pleaded guilty to conspiracy to commit access device fraud and aggravated identity theft.
Osemwengie Imarhia, 43, of Acworth, Georgia, was sentenced to two years, six months in prison, to be followed by three years of supervised release, and ordered to pay $2,390,357.03 in restitution to the federal and state victims. Imarhia pleaded guilty to conspiracy to commit access device fraud.
TIGTA and IRS-CI investigated the case.
Assistant U.S. Attorney Alex Sistla and Trial Attorneys Lauren Archer and Katherine Rookard of the Justice Department’s Fraud Section are prosecuting the case.
For inquiries, please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Three Individuals Charged for Running Multimillion-Dollar Pyramid SchemeRead the Press Release
An indictment was unsealed yesterday charging a U.S. citizen residing in Canada for orchestrating a multimillion-dollar pyramid scheme under the name 8 Figure Dream Lifestyle LLC (8FDL). Guilty pleas by his co-conspirators, who participated in the same scheme, were unsealed today.
According to court documents, Alex Dee, formerly known as Alex Dowlatshahi, 49, of Maple Ridge, British Columbia, allegedly was the co-founder of 8FDL. Brian Kaplan, 52, of Fort Collins, Colorado, and Jerrold Maurer, 58, of North Bellmore, New York, co-founded 8FDL with Dee and participated in the scheme.
From January 2017 through June 2019, Dee allegedly ran 8FDL as a pyramid scheme. Dee and his co-conspirators allegedly recruited participants through emails, robocalls, promotional videos, and webinars. They allegedly told consumers that 8FDL was a legitimate business with real products and lied to prospective members about how much money they could make, how much others who had joined 8FDL had made, and the ongoing costs associated with the business. For example, Dee allegedly wrote and sent mass-marketing emails claiming that typical members with no prior skills or experience could easily earn between $5,000 and $10,000 in 10 to 14 days after joining the program, and that most members were averaging two to three sales in their first 30-45 days. In fact, the vast majority of people who joined 8FDL never made any money.
Dee was arrested at the U.S.-Canada border on Tuesday while trying to enter Washington state from British Columbia. He made his initial appearance on Wednesday before a magistrate judge in the Western District of Washington.
Dee is charged with one count of conspiracy to commit wire fraud and four counts of wire fraud. If convicted, he faces a maximum penalty of 20 years in prison on each of the charged counts. Kaplan and Maurer were each charged with one count of conspiracy to commit wire fraud and both pleaded guilty. They have yet to be sentenced, and each faces a maximum penalty of five years in prison. 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 and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.
USPIS is investigating the case.
Trial Attorneys Brandon Burkart and Andrew Jaco and Assistant Chief William Johnston of the Criminal Division’s Fraud Section are prosecuting the case. The department received assistance from the Federal Trade Commission.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.