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8 February 2024
Indictment Charges Hartford Man on Supervised Release with Firearm and Drug OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Hartford Police Chief Jason Thody today announced that a federal grand jury in New Haven has returned an indictment charging STANDFORD SMITH, also known as “Pops,” 34, of Hartford, with narcotics distribution and firearm possession offenses.
As alleged in court documents and statements made in court, in March 2021, Smith was sentenced in Hartford federal court to 55 months of imprisonment and four years of supervised release for his role in a gun trafficking ring and for distributing crack cocaine. He was released from prison in February 2022. On June 2, 2023, Smith was arrested by Hartford Police after he was found in possession of distribution quantities of cocaine and fentanyl, and a loaded Ruger LCP Max .380 caliber firearm.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment, which was returned on January 23, 2024, charges Smith with one count of possession with intent to distribute cocaine and fentanyl, an offense that carries a maximum term of imprisonment of 20 years, and one count of unlawful possession of a firearm by a felon, an offense that carries a maximum term of imprisonment of 15 years.
Smith has been detained since his arrest. He appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford and pleaded not guilty to the charges.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. A charge is only an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Hartford Police Department and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Patricia Stolfi Collins, through Project Safe Neighborhoods (“PSN”), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Huron Man Charged with over $2.5 Million in COVID-19 Relief FraudRead the Press Release
TOLEDO – A federal grand jury in Toledo returned an indictment on February 7, 2024, charging Daniel R. Hitlan, of Huron, Ohio, with three counts of bank fraud and five counts of money laundering related to filing false applications for Paycheck Protection Program loans.
The indictment charges that between April 14, 2020 and May 13, 2020, Hitlan submitted three false PPP loan applications and received funding totaling $2,578,318. Hitlan applied for the loans using two businesses that he owned: Sailor Sales, LLC and Daniel Robert Hitlan. Hitlan applied for the loans at three separate banks. In each instance, he falsely stated the number of employees for the businesses and claimed to have payroll expenses when in fact the businesses had no payroll expenses. Hitlan supported the PPP loan applications by creating and submitting fictitious payroll documents and payroll forms with his application.
It is further alleged that Hitlan used the proceeds to conduct several financial transactions to include a check for $88,811.27 for the purchase of a 2020 Cadillac Escalade, another check for $48,232.63 for the purchase of a 1968 Chevrolet Corvette, two wires for the purchase of real estate in the amounts of $179,013.97 and $248,423.89, and a debit card transaction for $20,000 to a jeweler for the purchase of Rolex watches.
An indictment is only a charge and not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, 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.
The investigation was conducted by IRS–Criminal Investigations and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Gene Crawford.
Human Smuggling Organization Leader Sentenced in San AntonioRead the Press Release
SAN ANTONIO – A Kaufman man was sentenced in a federal court in San Antonio to 97 months in prison for his role in a conspiracy to transport undocumented noncitizens.
According to court documents, Fredi Zagala-Servin, 40, was a longtime leader and organizer of a human smuggling organization (HSO) that smuggled hundreds of undocumented noncitizens from Laredo to San Antonio inside tractor trailers. He would speak with a co-conspirator in Mexico and provide another co-conspirator with pick-up locations for the drivers to load migrants into the tractor trailers in Laredo. He would then monitor the load throughout the transport and relay updates between the parties. Zagala-Servin was involved in the coordination of at least 10 human smuggling events for financial gain with the HSO. He was arrested June 23, 2022 and has remained in federal custody.
In May 2021, the Homeland Security Investigations San Antonio Division began investigating the criminal activity of the HSO. HSI was able to link at least 19 human smuggling events involving the actual apprehension of more than 900 aliens to the HSO. Between May 2021 and June 2022, HSI interdicted nine of the HSO's tractor trailers carrying smuggled noncitizens. The loads ranged from approximately 30 to more than 100 migrants travelling in a single trailer.
In addition to imprisonment, Zagala-Servin was ordered three years supervised release and a money judgement of $410,250.
“This human smuggling organization put the lives of hundreds of migrants in jeopardy by transporting them across south Texas in tractor trailers,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “It is important that people like this defendant, who endanger those lives for profit, are held accountable by our justice system. I commend our partners at HSI and all of Joint Task Force Alpha for their investigative skills and their tireless efforts to uncover this criminal conspiracy.”
“This sentencing sends a clear message to those thinking of engaging in human smuggling activity,” said Special Agent in Charge Craig Larrabee for the HSI San Antonio Division. “HSI and our law enforcement partners take an aggressive stance against human smuggling, and we will continue to work together to investigate and ultimately dismantle these criminal organizations.”
HSI and JTFA investigated the case.
Assistant U.S. Attorney Amanda Brown prosecuted the case.
These charges resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the Western District of Texas is part of the JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security. JTFA is comprised of detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California. Dedicated support is also provided by numerous components of the Criminal Division that are part of JTFA, led by HRSP, and supported by ODPAT, the Narcotic and Dangerous Drug Section, the Money Laundering and Asset Recovery Section, the Office of Enforcement Operations, OIA, and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, the Drug Enforcement Administration (DEA), and other partners. To date, JTFA’s work has resulted in over 270 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; over 210 convictions; significant jail sentences imposed; and forfeitures of substantial assets.
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Harvey Man Pleads Guilty to Possession of Materials Involving Sexual Exploitation of MinorsRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced today that on February 6, 2024 MAX CORY JOHNSON, JR. (“JOHNSON”), age 21, of Harvey, pled guilty to Possession of Materials Involving the Sexual Exploitation of Minors, in violation of Title 18, United States Code, Sections 2252(a)(4)(B) and (b)(2). JOHNSON faces up to twenty (20) years imprisonment, and/or up to a fine of $250,000.00, or the greater of twice the gross gain to the defendant or twice the gross loss to any person of the offense. In addition, JOHNSON faces no less than five (5) years of supervised release and up to life, following release from prison.
According to court documents, the case against JOHNSON stemmed from an undercover online investigation that sought to identify those individuals who were sharing Child Sexual Abuse Material (“CSAM”). On July 20, 2023, Homeland Security Investigations (“HSI”) special agents, and Jefferson Parish Sheriff’s Office deputies, executed a federal search warrant at JOHNSON’s residence in Harvey. JOHNSON confessed to agents that he both, possessed and saved, CSAM to his computer using a specialized network. Sentencing is scheduled for before United States District Judge Wendy B. Vitter.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the U.S. Department of Homeland Security, Homeland Security Investigations, and the Jefferson Parish Sherriff’s Office with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Glenpool Resident Sentenced for Sexual Abuse of A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Alexander Christian Davis, age 37, of Glenpool, Oklahoma, was sentenced to 141 months imprisonment for one count of Sexual Abuse of a Minor in Indian Country. Davis is also subject to a ten year term of supervised release and will be required to register as a sex offender.
The charges arose from investigations by the Muscogee (Creek) Nation Lighthorse Police Department and the Federal Bureau of Investigation.
On May 11, 2023, Davis entered a plea of guilty to one count of Sexual Abuse of a Minor in Indian Country. According to investigators, Davis engaged in sexual acts with a child under the age of 16 and at least four years younger than him between December 2019 and December 2020. The crime occurred in Okmulgee County, within the boundaries of the Muscogee (Creek) Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings. Davis will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Caila M. Cleary and Sarah McAmis represented the United States.
Gary Man Sentenced to 120 Months in PrisonRead the Press Release
HAMMOND – Guadalupe Guerra, 70 years old, of Gary, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio after pleading guilty to Possession of Material Involving the Sexual Exploitation of Minors, announced United States Attorney Clifford D. Johnson.
Guerra was sentenced to 120 months in prison, 5 years of supervised release and ordered to pay $33,000 in restitution to the victims of the offense.
According to documents in the case, on or about January 31, 2023, Guerra possessed material involving the sexual exploitation of minors while having a previous conviction for aggravated criminal sexual assault.
This case was investigated by the United States Department of Homeland Security, Homeland Security Investigations with assistance from the Indiana Internet Crimes Against Children Task Force, the Indiana State Police Digital Forensics Unit, and the United States Marshals Service Great Lakes Regional Fugitive Task Force. The case was prosecuted by Assistant United States Attorney Emily Morgan.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Founder and Former CEO of Sustainable Fuel Company Pleads Guilty to Multimillion Dollar Embezzlement and Investor Fraud SchemeRead the Press Release
The founder and former CEO of a sustainable fuel company pleaded guilty today to wire fraud in connection with a scheme to embezzle at least $5.9 million from the company and to defraud several investors out of $15 million.
According to court documents, between 2021 and 2022, Bryan Sherbacow, 55, of Charleston, South Carolina, and Washington, D.C., defrauded the company he co-founded by transferring company funds without authorization to his personal bank account and by making unauthorized personal expenditures from a company bank account. Sherbacow attempted to conceal his actions by, among other things, emailing altered bank statements and other falsified financial records to the company’s outside accounting firm and members of the company’s board. Sherbacow used embezzled funds to pay for, among other things, a vintage Mercedes-Benz sports car, a Range Rover sport utility vehicle, payments to an art auction operator, personal tax liens, personal credit card payments, rent payments on personal residences, payment to a beach club, electronics, and a down payment on a condo.
To raise additional funds for the company, Sherbacow also sent or caused to be sent altered bank statements and other falsified financial records to prospective and current investors. For example, Sherbacow caused a false and fabricated bank statement to be sent to two investors, in which Sherbacow intentionally removed transactions showing transfers from the company bank account to his personal bank account and falsified account balance information to make it appear that the company possessed more cash on hand than it possessed, due in part to Sherbacow’s unauthorized transfer of funds. Sherbacow also caused a balance sheet containing false and misleading financial information to be sent to another investor. In at least partial reliance on the fabricated bank statement and false and misleading financial information, three investors collectively invested approximately $15 million.
Sherbacow pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on May 16 and faces a maximum penalty of 20 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 Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The FBI Washington Field Office and the Defense Criminal Investigative Service, Charleston Resident Agency are investigating the case.
Trial Attorney Kyle Crawford of the Criminal Division’s Fraud Section is prosecuting the case.
Fort Wayne Man Sentenced to 151 Months in PrisonRead the Press Release
FORT WAYNE –Calvin Jones, 42 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady after pleading guilty to Possession with Intent to Distribute a Controlled Substance, announced United States Attorney Clifford D. Johnson.
Jones was sentenced to 151 months in prison followed by 3 years of supervised release.
According to documents in the case, in 2017 and 2018, Jones devised a scheme to distribute synthetic marijuana within various correctional institutions. Jones executed the scheme by soaking documents in a synthetic marijuana. Once soaked, Jones put these drug-soaked pages into envelopes addressed to inmates which purportedly were coming from various attorneys or from a state agency. The intent was that the pages be torn into smaller pieces or “doses” and sold to other inmates The inmates would then get high by ingesting the drug-soaked pieces of paper. Jones was held responsible for a total of 105 pages of drug-soaked pages.
This case was investigated by the United States Postal Inspection Service with assistance from the Federal Bureau of Investigation, the United States Marshal’s Service, the Indiana Department of Corrections, the United States Postal Inspection Service Laboratory in VA, and the Drug Enforcement Administration North Central Laboratory. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
Fort Bend man sentenced for receiving military training from a designated foreign terrorist organizationRead the Press Release
HOUSTON - A 34-year-old resident of Sugar Land has been ordered to federal prison for his conviction related to the Islamic State of Iraq and al-Sham (ISIS), announced U.S. Attorney Alamdar S. Hamdani.
Warren Christopher Clark pleaded guilty Oct. 10, 2023.
U.S. District Judge George C. Hanks Jr. has now ordered Clark to serve 120 months in federal prison to be immediately followed by a lifetime of supervised release. In handing down the sentence, the court imposed a terrorism enhancement, noting how Clark’s criminal and irresponsible behavior betrayed the values of this country and that he hoped Clark served every second of his sentence.
“In the interests of national security, our laws prohibit Americans from receiving military training from designated foreign terrorist organizations. Warren Clark ran afoul of those laws when he illegally crossed the border into Syria and underwent military training from ISIS, a brutal terrorist organization,” said Hamdani. “Thanks to international partnerships, Clark was brought back to the United States to face the consequences for his crimes in a Southern District of Texas courtroom.”
“By seeking and receiving military training from a foreign terrorist organization, Clark, a former teacher, betrayed his nation and allied himself with one of the most violent U.S. adversaries,” said Special Agent in Charge Douglas Williams of the FBI Houston field office. “Protecting the American people from terrorism is the FBI’s number one priority. As the lead U.S. agency for combating international and domestic terrorism, the FBI continues to work with our partners and use all necessary resources to get ahead of the threats and protect our communities, especially as the threat is constantly evolving.”
As part of his plea, Clark admitted knowing ISIS was a foreign terrorist organization. Regardless, he traveled overseas and receiving military training from them.
Clark admitted he illegally traveled from Turkey into Syria where he took mandatory religious and military training. In correspondence to his family, Clark indicated he was living happily abroad and would not return to the United States unless “the Islamic State conquers the US,” noting he thought he would be imprisoned here if he did come back.
He later called himself a citizen of the Islamic State and renounced his U.S. citizenship.
Clark has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI Joint Terrorism Task Force and police departments in Houston and Sugar Land conducted the investigation. Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel prosecuted the case along with Trial Attorney Michael J. Dittoe of the Department of Justice Counter Terrorism Section.
Former jailer charged with sexually assaulting womenRead the Press Release
LAREDO, Texas - A 28-year-old Laredo man is now in custody for allegedly sexually assaulting and violating the civil rights of two women, announced U.S. Attorney Alamdar S. Hamdani.
Hector Humberto Rodriguez Jr. is expected to make an initial appearance before U.S. Magistrate Judge Diana Song Quiroga at 1:30 p.m.
A federal grand jury returned the sealed five-count indictment Feb. 6, which was unsealed upon his arrest.
Rodriguez was a correctional officer with the Webb County Sheriff’s Department.
On two separate occasions, he allegedly deprived two women of their civil rights. While working in his law enforcement capacity, he forcibly sexually assaulted both women while they were housed as inmates at the Webb County Jail, according to the indictment.
If convicted, he faces up to life in prison as well as potential fines of $250,000 for each of the five counts in the indictment.
The FBI and Department of Justice - Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Brandon Scott Bowling and Leslie Ann Cortez are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former investment advisor sentenced for decade-long Ponzi schemeRead the Press Release
ATLANTA - John J. Woods has been sentenced to nearly eight years in federal prison for operating a 13-year Ponzi scheme that victimized more than 400 investors and caused a loss of over $49 million.
“Woods, while serving as a fiduciary, promised investors profitable returns but used the monies he raised from new investors to pay Ponzi profits to earlier investors,” said U.S. Attorney Ryan K. Buchanan. “Woods abused the trust of his victims, including retirees, seniors, and military veterans, who lost their life savings and retirement accounts due to his greed.”
“Illegal activity involving the investment industry, especially Ponzi schemes, has unfortunately brought financial ruin to many Americans,” said Keri Farley, Special Agent in Charge of FBI Atlanta. Hopefully this sentence sends the message that the FBI will not tolerate individuals who offer victims false promises and take advantage for their own personal benefit.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Woods operated a Ponzi scheme until being shut down by the U.S. Securities and Exchange Commission (SEC) in 2021. Woods solicited investors to invest in a fund called, “Horizon Private Equity.” Woods, and other investment adviser representatives acting under his direction, promised potential Horizon investors rates of return of six to seven percent on their investments. They represented that Horizon would earn a return by investing in, for example, government bonds, stocks, or small real estate projects. Woods, and others acting at his direction, also assured investors that Horizon investments carried minimal risk and were safe because Horizon maintained a diverse portfolio.
Contrary to these representations, the money received from new investors was not invested in a diverse portfolio; rather, funds collected from new investors was used largely to pay returns to previous investors. In fact, Horizon was able to pay guaranteed returns to investors only by raising and using new investor money. As a part of the scheme, Woods caused Horizon to issue monthly statements to investors that fraudulently misled investors by failing to disclose that the Horizon investments had not generated a positive percentage of return sufficient to cover the interest. Although Woods did not use the money to live a lavish lifestyle, he diverted investor funds to pet projects not approved by the investors, such as purchasing an interest in a baseball team in his name.
As of the end of July 2021, Horizon investors were owed more than $110,000,000 in principal investment amounts. Over 400 investors, residing in at least 20 different states, held investments in Horizon. Victims lost more than $49 million because of Woods’s scheme to defraud.
Woods, 58, of Marietta, Georgia, was sentenced by U.S. District Judge Sarah E. Geraghty, to seven years, eleven months in prison to be followed by three years of supervised release. Woods was also ordered to pay restitution to the victims of his scheme. A hearing to set the restitution amount owed to victims has been scheduled for April 15, 2024, at 2:30 p.m., before Judge Geraghty.
This case was investigated by the Federal Bureau of Investigation. The SEC provided valuable assistance. The SEC’s separate civil case is SEC v. Woods et al., No. 1:21-CV-03413-SDG (N.D. Ga.).
Assistant U.S. Attorneys Angela Adams and Stephen H. McClain prosecuted the case.
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.
Former Rowan County Teacher Pleads Guilty to Production of Child PornographyRead the Press Release
COVINGTON, Ky. – A Morehead, Ky., man, Andrew Zaheri, 40, pleaded guilty on Wednesday, before U.S. District Judge David Bunning, to production of child pornography.
According to his plea agreement, in the summer of 2022, Zaheri began a sexual relationship with a minor student at the high school where he was employed as a teacher. The relationship continued through the school year and included Zaheri engaging in sexual acts with the victim during school hours. Zaheri admitted that, during the course of the relationship, he produced sexually explicit images and videos of the minor victim using his cell phone.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Col. Phillip J. Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the guilty plea.
The investigation was conducted by FBI and Kentucky State Police. Assistant U.S. Attorney Erin Roth is prosecuting the case on behalf of the United States.
Zaheri is scheduled to appear for sentencing on May 14 in Ashland, Ky. He faces a minimum of 15 years and a maximum of 30 years in prison. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing its sentence.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Former President of the Lerner Group Pleads Guilty to Defrauding His ClientsRead the Press Release
Earlier today, in federal court in Brooklyn, Marat Lerner, the former president of a debt relief services business, pleaded guilty to one count of wire fraud conspiracy and one count of committing wire fraud while he was on pre-trial release. Lerner admitted that he lied to his victims and that he stole money that the victims had intended to use to pay off their home mortgages. The proceeding was held before United States District Judge Nicholas G. Garaufis. When sentenced, Lerner faces a maximum sentence of 50 years’ imprisonment. Lerner has also agreed to pay $2,554,217.11 in restitution. He was indicted in January 2023.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, New York Field Office (FBI), and Thomas Fattorusso, Special Agent-in-Charge, New York Field Office, Internal Revenue Service – Criminal Investigations (IRS CI), announced the guilty plea.
“As he admitted today, Marat Lerner turned the victims’ American dreams into a nightmare by promising mortgage and debt relief, and instead preyed on their hard-earned life savings for his own personal gain,” stated United States Attorney Peace. “My Office will continue to protect immigrant communities against those who choose to use their positions of trust to defraud and steal from them.”
“Marat Lerner operated as an underground broker in his local community; but instead of completing his end of the bargain by paying their mortgages, he pocketed the money of his unsuspecting victims to live a life of luxury. This wasn’t just a money scam, this fraud affected his own community’s homes and families. Those who fell prey to Lerner’s deceit defaulted on their mortgage payments, and some fell into foreclosure. Today’s guilty plea and agreed restitution is just one step towards his victims getting justice, and his sentencing is the next,” stated IRS CI Special Agent-in-Charge Fattorusso.
According to court documents and facts presented at the guilty plea proceeding, Lerner was the owner of the “Lerner Group,” a business that claimed to provide debt relief services, including mortgage modifications, principally to the Eastern European immigrant community in Brooklyn. Many of the victims that the defendant defrauded were already experiencing financial hardship and had specifically sought Lerner’s assistance to help reduce their monthly mortgage payments. Lerner, in turn, promised that he could help them lower their monthly mortgage payments by working with their mortgage lenders to secure a mortgage loan modification or federal homeowner assistance. To carry out his fraud, Lerner instructed the victims that he needed access to their bank accounts so that he could directly transmit payments to the mortgage banks on the victims’ behalf, and that the payments would be addressed to either an escrow agent that would hold the funds until their mortgages had been modified, or to entities affiliated with their mortgage lenders. Lerner further instructed the victims not to contact their mortgage lenders directly and that he would serve as the liaison between the victims and the victims’ lenders.
In reality, Lerner stole over $2.5 million from the victims – money that the victims had intended to use to pay their mortgages. Once Lerner gained access to the victims’ bank accounts, Lerner transmitted funds from their accounts to companies and/or bank accounts that he himself controlled. Lerner kept the majority of the victims’ money, spending it on personal and business expenses, including a BMW, luxury goods, and expensive meals. To conceal his fraud, Lerner told the victims to disregard notifications from their mortgage lenders regarding delinquent payments and past due balances.
In January 2023, Lerner was indicted by a federal grand jury in the Eastern District of New York and arrested in connection with the above fraud. Pursuant to an order of the United States District Court for the Eastern District of New York, Lerner was released on bail and instructed, among other things, not to commit additional crimes. However, Lerner continued to steal from his victims even after being arrested for the same conduct. After his arrest in this case, between January 2023 and May 2023, Lerner stole at least $10,000 from his victims. Lerner’s bail was subsequently revoked.
As a result of Lerner’s years-long fraud, mortgage lenders have initiated foreclosure proceedings against several of the victims. As part of his guilty plea, Lerner has agreed to pay approximately $2,554,217.11 in restitution to the victims.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Nicholas Axelrod and Genny Ngai are prosecuting the case with assistance from Paralegal Specialist Jacob Menz.
The Defendant:
MARAT LERNER
Age: 41
Brooklyn, New YorkE.D.N.Y. Docket No. 23-CR-15 (NGG)
Former Fremont Man Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Susan Lehr announced that Troy Brewer, 50, formerly of Fremont, Nebraska, was sentenced on February 8, 2024, in federal court in Lincoln, Nebraska, for possession with intent to distribute 5 grams or more of methamphetamine. Senior United States District Judge John M. Gerrard sentenced Brewer to 30 months’ imprisonment. There is no parole in the federal system. After Brewer’s release from prison, he will begin a 4-year term of supervised release.
In the early morning hours of August 2, 2022, Brewer was in his vehicle when he was contacted by Fremont Police. Based upon their observations, the officers searched the vehicle and found a pill bottle near the driver’s door. Inside the bottle was 14 grams of actual methamphetamine. They searched the car further and found Ziploc baggies in the center console and a digital scale with drug residue on it inside a backpack. When Brewer pled guilty, he admitted he knew the drugs were in the vehicle and that he intended to distribute them.
This case was investigated by the Dodge County Sheriff’s Office and the Fremont Police Department.
Former Chatham Housing Executive SentencedRead the Press Release
GREENSBORO – A Durham, North Carolina woman was sentenced today to 30 months in prison, after pleading guilty to conspiring to commit wire fraud that victimized the Chatham County Housing Authority, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
JOANN JOHNSON DAVIS, age 65, was sentenced to a 30-month term of imprisonment and ordered to pay restitution in the amount of $194,136 by the Honorable Thomas D. Schroeder, United States District Judge in the United States District Court for the MDNC. DAVIS will be subject to supervised release for 2 years following her release from prison. She pleaded guilty on May 1, 2023, to one count of conspiracy to commit wire fraud, a violation of Title 18, United States Code, Section 1349.
According to court records and evidence presented at sentencing, DAVIS and others engaged in a bid-rigging, no-work jobs conspiracy between 2016 and 2020 while DAVIS served as the Executive Director of the Chatham County Housing Authority (CCHA). The CCHA is a Public Housing Authority (PHA) that received funds from the U.S. Department of Housing and Urban Development (HUD), including under HUD’s Housing Choice Voucher Program, colloquially known as Section 8, which assists low-income families, the elderly, and the disabled with affording decent, safe, and sanitary housing in the private market. HUD regulations require PHAs to contract out micro-purchase and small-purchase jobs at a reasonable cost. DAVIS used her authority as executive director of the CCHA to direct these contracts to various friends and relatives by creating false bid proposals to “compete” with them, thereby demonstrating “reasonable” cost. DAVIS and various co-conspirators used stolen identities and company letterhead of actual people and businesses to give the false bid proposals the appearance of legitimacy. DAVIS would then select the bid proposal submitted by her friend or family member as the winner and award the CCHA contract to that individual, knowing there had been no assessment of “reasonable” cost, and regardless of whether that friend or family member was qualified to perform the contracted work. Often, no work at all was performed under these contracts. Regardless, the CCHA would pay the friend or family member. In total, between 2016 and 2020, DAVIS awarded CCHA contracts to no fewer than thirteen friends and relatives without any competitive bidding process, and the CCHA paid more than $200,000 to DAVIS’ friends and relatives for alleged contract work. DAVIS sometimes received kickbacks from these individuals in exchange for rigging the bid process and directing payment to that person for jobs not performed.
“Access to decent, safe, and sanitary housing is a basic human need,” said U.S. Attorney Hairston. “Misappropriating funds intended to help people afford decent housing is unconscionable, and we are grateful to the agencies that investigated this conduct and helped hold this defendant accountable.”
“Safeguarding taxpayer funded programs and resources that benefit low-income families in our communities is vital to the success of HUD’s programs,” said Special Agent in Charge Jerome Winkle, with the U.S. Department of Housing and Urban Development, Office of Inspector General. “HUD OIG remains steadfast in its commitment to work closely with Federal prosecutors, law enforcement agencies, and state and local partners to aggressively investigate those who threaten HUD programs.”
“JoAnn Davis was entrusted to spend money intended to help improve the lives of others. She abused that trust by misusing the government funding to enrich her own life and the lives of her family and friends. The FBI is committed to hold accountable anyone who commits this type of fraud," said Robert M. DeWitt, the FBI Special Agent in Charge.
A co-defendant, Clintess Roberta Barrett-Johnson, age 55, of Durham, NC, pleaded guilty to one count of conspiracy to commit wire fraud and was sentenced on November 13, 2023, to four years’ probation and ordered to pay $57,179.00 in restitution.
Another co-defendant, Mi’chelle Necole Bell-Johnson, age 34, of Charlotte, NC, pleaded guilty to one count of conspiracy to commit wire fraud and was sentenced on September 18, 2023, to three years’ probation and ordered to pay $83,977.50 in restitution.
The case was investigated by the HUD Office of Inspector General and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney JoAnna G. McFadden.
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Florida Man Admits Role in Multimillion-Dollar Health Care Kickback SchemeRead the Press Release
NEWARK, N.J. – A Florida man today admitted his role in a multimillion-dollar durable medical equipment (DME) kickback scheme, Attorney for the United States Vikas Khanna, District of New Jersey, and U.S. Attorney Markenzy Lapointe, Southern District of Florida, announced.
Kareem Memon, 34, of Coral Springs, Florida, pleaded guilty before U.S. District Court Judge Raag Singhal in the Southern District of Florida to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to violate the federal Anti-Kickback Statute.
According to documents filed in the case and statements made in court:
Memon and his conspirators owned and operated marketing call centers and telemedicine companies through which they obtained doctors’ orders for DME for Medicare beneficiaries without regard to medical necessity. Memon and his conspirators provided doctors’ orders in exchange for bribes from DME companies that provided the braces to Medicare beneficiaries. Memon and his conspirators caused losses to Medicare in excess of $11 million.
On Sept. 21, 2023, Memon pleaded guilty to wire fraud, money laundering, and felon in possession charges in a separate case before Judge Singhal. Memon submitted fraudulent loan applications seeking more than $451,000 in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and used those funds for personal gains. At the time of Memon’s arrest he was a felon and found to be unlawfully in possession of an arsenal of 12 firearms and ammunition.
The health care fraud conspiracy charge is punishable by a maximum of 10 years in prison and the kickback conspiracy charge is punishable by a maximum of five years in prison. Both charges are also punishable by a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for March 26, 2024.
Attorney for the United States Khanna and U.S. Attorney Lapointe credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark and Acting Special Agent in Charge is Maged Behnam in Miami, Florida; the Department of Health and Human Services-Office of Inspector General, under the direction of Acting Special Agent in Charge Naomi Gruchacz; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Acting Special Agent in Charge Brian J. Solecki; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Matthew Specht of District of New Jersey and Assistant U.S. Attorney Robin Waugh of the Southern District of Florida.
memon.information.pdfFinal defendants sentenced to prison for roles in conspiracy to steal aircraft design secretsRead the Press Release
SAVANNAH, GA: Two California men have been sentenced to federal prison for their roles in a conspiracy to steal aircraft design and testing information in order to shorten the regulatory approval process for a competing company’s technology.
Juan Martinez, 53, of Brea, California, was sentenced to 63 months in prison after being convicted in August 2023 in U.S. District Court in Savannah on one count of Conspiracy to Steal Trade Secrets, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia, while Joseph Pascua, 61, of Escondido, California, was sentenced to 86 months in prison after being convicted in February 2023 for Conspiracy to Steal Trade Secrets.
U.S. District Court Judge R. Stan Baker also fined Martinez and Pascua $1,000 each and ordered them to serve three years of supervised release upon completion of their prison terms. There is no parole in the federal system.
“Ideas have value, especially when those ideas involve complex engineering designs such as those stolen by the participants in this conspiracy,” said U.S. Attorney Steinberg. “Our law enforcement partners did exceptional work to identify the members of this conspiracy and bringing them to justice.”
As the evidence showed at trial, Martinez was a contractor who worked as a technical lead for a small aeronautics company. With Pascua and the other conspirators, he launched a scheme to steal proprietary trade secret information from a large aircraft company for use in developing and marketing their own technology, with the intent to market and sell that technology to the true owner’s competitors.
Two other conspirators are serving federal prison terms after pleading guilty in the case. Craig German, 60, of Kernersville, North Carolina, is serving 70 months in prison after pleading guilty to Conspiracy to Steal Trade Secrets, plus 20 months for Perjury and False Statements to a Government Agency for providing false information during testimony given in his first sentencing. Gilbert Basaldua, 63, of Hilton Head Island, South Carolina, is serving 80 months in prison after pleading guilty to Conspiracy to Steal Trade Secrets and Interstate Transportation of Stolen Property.
“When companies invest huge amounts of time and money to develop technologies, only to have those technologies stolen, the results are devastating,” said Will Clarke, Supervisory Senior Resident Agent of FBI Atlanta’s Savannah office. “These defendants intended not only to enrich themselves but bypass the legally established system. This case should serve as a warning to those entrusted with valuable trade secrets: If you break the law, you will be punished.”
The case was investigated by the FBI and prosecuted for the United States by Assistant U.S. Attorneys Darron J. Hubbard and Jenna G. Solari.
Final Defendant Sentenced in Heroin Conspiracy After 8 Years on the RunRead the Press Release
COLUMBIA, S.C. — Corey Xavier Baldwin, 56, of Concord, North Carolina, was sentenced to 53 months in federal prison after pleading guilty to conspiracy to possess with intent to distribute and to distribute heroin.
Evidence presented to the court showed that Baldwin was one of 10 defendants charged in April 2014, following a drug trafficking investigation in the Columbia area. Six of the 10 defendants were arrested in April 2014, while four remained fugitives, including Baldwin. Baldwin remained a fugitive until his September 2022 arrest by the United States Marshals Service in Concord, North Carolina. Two other fugitives were arrested in 2017 in Texas, and one was arrested in May 2022 in Brooklyn, New York.
The 2013 investigation revealed that a group of individuals was obtaining heroin from various sources outside of South Carolina and then distributing it in the Midlands. Several packages sent through the mail, destined for Columbia, and containing heroin, were intercepted by law enforcement during the investigation. Evidence also showed that the co-defendants later traveled to New York to obtain heroin and transported it back to Columbia where it was distributed. Baldwin, who came to Columbia in 2013 after a prison sentence in Ohio for a 1994 aggravated murder conviction, participated by transporting money to New York during the trips to obtain heroin and assisted in the distribution of heroin in the Columbia area.
Nine of Baldwin’s co-defendants earlier pled guilty to their role in the drug conspiracy here in South Carolina and were sentenced as follows:
- Eric Shawn Bradley of Columbia was sentenced to 210 months imprisonment with eight years of supervised release;
- Michael Glover of Columbia was sentenced to 324 months imprisonment with eight years of supervised release;
- Jihad Salahadeen Pollard of Columbia was sentenced to 121 months imprisonment with four years of supervised release;
- Kenneth Crawford, Jr. of Washington, D.C. and formerly of Columbia was sentenced to 120 months imprisonment with eight years of supervised release;
- Charles Raheem Bradley of Columbia was sentenced to 57 months imprisonment with six years of supervised release;
- Anthony Troy Glover of Columbia was sentenced to 120 months imprisonment with eight years of supervised release;
- Larry Grover Bookman of Columbia was sentenced to 70 months imprisonment with six years of supervised release;
- Jessany Lyons of Far Rockaway, New York, was sentenced to 37 months imprisonment with three years of supervised release; and
- Dockim Deeshawn McKnight of Brooklyn, New York, was sentenced to 60 months imprisonment with four years of supervised release.
The New York heroin suppliers were charged and convicted by the United States Attorney’s Office in the Eastern District of New York for their role in the drug conspiracy.
Senior United States District Judge Joseph F. Anderson, Jr. sentenced Baldwin to 53 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This OCDETF case was investigated by the Drug Enforcement Administration’s (DEA) High Intensity Drug Task Force, which was comprised of agents and officers from the DEA, Homeland Security Investigations, Federal Bureau of Investigation, United States Secret Service, Columbia Police Department, Richland County Sheriff’s Department, South Carolina State Law Enforcement Division (SLED), Lexington County Sheriff’s Department, Kershaw County Sheriff’s Office, Orangeburg County Sheriff’s Office, and the Fifth Circuit Solicitor’s Office. The United States Marshals Service and the Carolinas Regional Fugitive Task Force-Charlotte Office assisted in locating the four fugitives. Assistant U.S. Attorney Stacey D. Haynes prosecuted the case.
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Federal jury convicts Box Elder man of sexually abusing two childrenRead the Press Release
GREAT FALLS — A federal jury on Feb. 7 convicted a Box Elder man of sexually abusing two children at a residence on the Rocky Boy’s Indian Reservation, U.S. Attorney Jesse Laslovich said today.
After a two-day trial that began on Feb. 6, the jury found the defendant, Shawn Saddler, Sr., 57, guilty of aggravated sexual abuse and two counts of abusive sexual contact. Saddler faces a mandatory minimum of 30 years to life in prison, a $250,000 fine and not less than five years of supervised release on the charge of aggravated sexual abuse and a maximum of life in prison, a $250,000 fine and not less than five years of supervised release on the charge of abusive sexual contact.
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 June 12. Saddler was detained pending further proceedings.
“There is no greater duty of our office than to hold accountable those who victimize children. Saddler’s crimes against these two young victims were disgraceful and it is a relief that the jury convicted him. While his crimes will always traumatize the victims, I hope they find a small measure of comfort knowing that Saddler won’t be able to harm them again. I thank Assistant U.S. Attorney Amanda L. Myers and our support team, along with the FBI and Rocky Boy’s Police Department, for their extraordinary work in investigating and prosecuting this case,” U.S. Attorney Laslovich said.
The government alleged in court documents and at trial that in 2021 and 2022 in a residence in Box Elder, on the Rocky Boy’s Indian Reservation, Saddler sexually molested and abused two girls multiple times. Both victims were under the age of 12 years at the time.
Assistant U.S. Attorney Amanda L. Myers is prosecuting the case. The FBI and Rocky Boy’s Police Department conducted the investigation.
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Federal Jury Convicts Chicago Trader of Engaging in Unauthorized Trading That Caused $30 Million in LossesRead the Press Release
CHICAGO — A Chicago trader has been convicted of fraud for engaging in unauthorized speculative bond trading that cost his employer and others more than $30 million.
A jury in U.S. District Court in Chicago on Wednesday convicted KEITH WAKEFIELD, 50, of Chicago, on one count of securities fraud and three counts of wire fraud. Each count is punishable by a maximum sentence of 20 years in federal prison. U.S. District Judge Steven C. Seeger did not immediately set a sentencing date.
The conviction was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Securities and Exchange Commission, which filed a civil enforcement action against Wakefield, provided valuable assistance. Assistant U.S. Attorneys Sean Franzblau and Bradley A. Tucker are prosecuting the criminal case.
According to evidence presented at trial, Wakefield worked as the head of fixed income trading for IFS Securities, Inc., a broker-dealer in Chicago. In 2019, Wakefield knowingly and fraudulently engaged in unauthorized speculative trading in U.S. Treasury bonds using his employer’s trading accounts, causing more than $30 million in losses to the employer and its counterparties. Wakefield attempted to conceal the unauthorized trades and losses by entering fake off-setting trades into a clearing broker’s order system, creating the false impression that he had profitably traded through a different clearing broker.
In addition to the fraudulent trading scheme, Wakefield from 2017 to 2019 embezzled hundreds of thousands of dollars from IFS Securities by falsifying the company’s books and records to create fake commissions that Wakefield knew were not actually owed to him.
Ex-FBI Agent Sentenced to 7+ Years in Prison for Secret Probation SchemeRead the Press Release
A retired FBI agent who convinced a Granbury woman she was on “secret probation” and conned her out of more than $700,000 was sentenced Tuesday to 87 months in prison followed by a term of three years supervised release, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
In August 2023, after 12 days of trial, a federal jury convicted William Roy Stone, Jr., 65, of one count of conspiracy to commit wire fraud, five counts of wire fraud, one count of engaging in monetary transactions in property derived from unlawful activity, and one count of false impersonation of a federal officer. He was sentenced Tuesday by U.S. District Judge Ada Brown.
Coconspirator Joseph Eventino DeLeon, 64, was also convicted at trial of conspiracy to commit wire fraud. Mr. DeLeon is scheduled to be sentenced March 5, 2024.
According to evidence presented at trial, Mr. Stone convinced his victim, C.T., that she was under “secret probation” for federal drug crimes in “Judge Anderson’s court in Austin, Texas.”
He and Mr. DeLeon told the victim that the fictious federal judge had appointed the two of them to administer the conditions of her six year “secret probation.” They required her to text them written reports of her daily activities, and to compensate them for their supervisory services, as well as any expenses they incurred. Copies of the multiple six figure checks she wrote them were admitted into evidence at trial. Over the course of eleven months, C.T. gave Mr. Stone more than $700,000 and Mr. DeLeon more than $50,000.
Mr. Stone and Mr. DeLeon insisted that C.T. was prohibited from disclosing her probation status to anyone, and would risk imprisonment and loss of her children if she did not comply with the terms of her probation.
When C.T. began to question the situation, Mr. Stone assured her everything he’d done was “legit.”
In order to further convince her the probation was real, the defendants monitored her cell phone communications, conducted physical surveillance of her, stated they had discussed C.T.’s probation with a psychiatrist, enlisted another person to impersonate the U.S. Drug Enforcement Administration “Intelligence Center” in a message inquiring about C.T., and even placed spoof calls between Mr. Stone, C.T., and the fictitious Judge Anderson.
They urged her to distance herself from her family, claiming her family members wanted to take her inheritance away from her, and persuaded her to transfer her inherited assets out of a trust and into an account under her own name. At one point, they claimed Judge Anderson would discharge C.T.’s probation if C.T. agreed to marry Mr. Stone. Mr. DeLeon even carried a weapon in C.T.’s home while purportedly providing “protective services” for her.
The Texas Rangers and the U.S. Department of Justice Office of Inspector General conducted the investigation. Mr. Stone retired from the Federal Bureau of Investigation in October 2015. The Bureau provided valuable assistance during the trial. Assistant U.S. Attorneys Jenna Rudoff, Donna Strittmatter Max, and Marcus Busch prosecuted the case with the support of Executive Assistant U.S. Attorney Katherine Miller and Appellate Assistant U.S. Attorney Lindsey Pryor; Assistant U.S. Attorney Dimitri Rocha is handling the forfeiture.
Essex County Man Admits Wire Fraud in $470,000 Kickback Scheme Involving Jersey City Condo ComplexRead the Press Release
CAMDEN, N.J. – An Essex County, New Jersey, man today admitted conspiring with two others in a kickback scheme to defraud the owner of a condominium complex in Jersey City of $470,000, U.S. Attorney Philip R. Sellinger announced.
Jonathan Smith, 56, of Montclair, New Jersey, pleaded guilty before U.S. District Judge Karen M. Williams in Camden to an information charging him with one count of conspiracy to commit wire fraud.
Smith’s conspirator, Nathaniel Obedos, pleaded guilty on July 6, 2023, before Judge Williams and is awaiting sentencing. Ranaldo Bennett, Smith’s other conspirator, was arrested and charged for the same conduct, and his case is still pending.
According to the publicly filed documents and statements made in Court:
From November 2018 through July 2020, Smith conspired with Bennett and Obedos to engage in a kickback scheme to defraud the owner of the condominium complex. Bennett was the complex’s lead property manager and Smith was its superintendent. Bennett and Smith steered repair and maintenance work to Obedos and his company. Bennett and Smith requested and received kickbacks from Obedos. To fund these kickbacks, Bennett and Smith falsified invoices that grossly inflated the value of Obedos’s work. Relying on those fake invoices, the complex paid Obedos the inflated prices, and Obedos then used the excess money to pay Bennett and Smith kickbacks. The complex paid Obedos and his company over $1 million for work that was actually valued at $500,000. Obedos used the overpayments to pay $460,000 in kickbacks to Bennett and approximately $30,000 in kickbacks to Smith.
The charge of conspiracy to commit wire fraud carries a maximum potential penalty of 20 years and a maximum fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing for Smith is scheduled for June 10, 2024.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the today’s guilty plea.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit.
The charges and allegations against Bennett are merely accusations, and he is presumed innocent unless and until proven guilty.
smith.information.pdfEl Departamento de Justicia llega a un acuerdo con la Oficina del Sheriff en el estado de Washington sobre el acceso lingüísticoRead the Press Release
El Departamento de Justicia anunció hoy un acuerdo para resolver las acusaciones de que la Oficina del Sheriff del Condado de King, Washington (KCSO, por sus siglas en inglés), discriminaba a personas con un dominio limitado del inglés (LEP, por sus siglas en inglés), en contra del Título VI de la ley de Derechos Civiles de 1964.
En virtud de los términos del acuerdo, KCSO ha acordado tomar una serie de medidas para mejorar el acceso lingüístico para las personas LEP. El Título VI prohíbe la discriminación por motivos de raza, color de piel y nacionalidad de origen (incluida la discriminación con base en el dominio del inglés) por parte de entidades que reciben apoyo financiero federal.
«El Departamento de Justicia se compromete a garantizar que nuestros organismos encargados del cumplimiento de la ley puedan proteger y servir a todas las personas de su comunidad, incluidas las víctimas de delitos, independientemente de su capacidad para hablar inglés con fluidez», dijo Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Este acuerdo conciliatorio mejorará la seguridad pública y la prestación de servicios lingüísticos para personas con un dominio limitado del inglés en el Condado de King».
«El acuerdo de hoy con la Oficina del Sheriff del Condado de King ayuda a generar confianza en la comunidad», comentó Tessa M. Gorman, la Fiscal Federal para el Distrito Oeste de Washington. «Me complace que tan pronto como se presentó el problema ante la Oficina del Sheriff, la agencia se dio cuenta de que tenía que mejorar las políticas sobre el acceso lingüístico y acordó inmediatamente realizar cambios».
El acuerdo de hoy detalla un plan de dos años para la introducción de una serie de apoyos de acceso lingüístico para mejorar la comunicación entre los sheriffs adjuntos de la KCSO y las personas LEP. En virtud del acuerdo, la KCSO ha acordado contratar a un gerente del programa de acceso lingüístico; desarrollar directivas provisionales y finales que prohíban el uso de niños, familiares, transeúntes y otras personas no cualificadas para el apoyo lingüístico; participar en actividades de alcance comunitario con miembros de la comunidad y partes interesadas; desarrollar un programa de formación sólido y garantizar un proceso de reclamación accesible.
El Departamento de Justicia comenzó a interactuar con la KCSO después de que una organización comunitaria planteara inquietudes sobre un incidente entre un sheriff adjunto de la KCSO y un residente LEP. El Departamento de Justicia proporcionó asistencia técnica a la KCSO, lo que dio lugar a este acuerdo conciliatorio.
Este acuerdo fue negociado conjuntamente por la División de Derechos Civiles y la Fiscalía Federal para el Distrito Oeste de Washington.
El acuerdo forma parte de la Iniciativa del Orden Público para el Acceso Lingüístico (LELAI, por sus siglas en inglés) del Departamento, un esfuerzo nacional para ayudar a las agencias del orden público a superar las barreras lingüísticas en su trabajo diario. La iniciativa, dirigida por la División de Derechos Civiles en asociación con las Fiscalías Federales, proporciona recursos de asistencia técnica y herramientas que pueden ayudar a las fuerzas del orden público estatales y locales a proporcionar un acceso lingüístico significativo a las personas LEP, trabaja afirmativamente con las agencias de aplicación de la ley que desean revisar, actualizar o fortalecer sus políticas, planes y capacitación de acceso lingüístico y fortalece la conexión entre las agencias de aplicación de la ley y las partes interesadas de la comunidad LEP y las poblaciones LEP.
Puede encontrar información adicional sobre la División de Derechos Civiles en su sitio web en www.justice.gov/es/crt e información sobre el dominio limitado del inglés y el Título VI está disponible en www.lep.gov. Encontrará más información sobre LELAI en www.lep.gov/law-enforcement. Los miembros del público pueden denunciar posibles infracciones de los derechos civiles en civilrights.justice.gov/report/.
Developer Sentenced for Conspiring with First NBC Bank President to Defraud First NBC BankRead the Press Release
NEW ORLEANS – On February 5, 2024, United States District Judge Darrel James Papillion sentenced WARREN G. TREME (“TREME”), age 59, a resident of Metairie, announced U.S. Attorney Duane A. Evans. TREME previously pleaded guilty to bank fraud conspiracy for his role in the scheme that led to the downfall of First NBC Bank, the New Orleans-based bank that failed in April 2017.
TREME, who testified as a government witness at the January 2023 trial of former First NBC Bank President and CEO Ashton Ryan, was sentenced by Judge Papillion to 24 months in prison, followed by three years of supervised release, a $100 mandatory special assessment fee, as well as payment of $6,399,890.38 in restitution, to First NBC Bank’s successors. TREME is jointly and severally liable for the restitution amount with Ryan and William J. Burnell, the Bank’s Chief Credit Officer.
According to court documents, from in or around 2008 through April 2017, TREME had a banking relationship with First NBC Bank, individually and through various entities he controlled. TREME also co-owned several entities with Ryan. Because of this conflict of interest, Ryan should not have been involved with TREME’s loans. However, Ryan exercised authority over TREME’s loans, along with Burnell. Throughout TREME’s borrowing relationship at First NBC Bank, TREME lacked sufficient income and cash flow from his businesses to pay his loans and personal expenses. Ryan and Burnell disguised TREME’s true financial condition by making new loans to pay TREME’s existing loans.
Court documents further describe a scheme by Ryan and Burnell to take $400,000 from TREME’s business partners as part of a settlement. Rather than using the $400,000 to pay down an outstanding loan debt owed by TREME and his business partners, Ryan and Burnell gave $300,000 to TREME. TREME spent the money on gambling, a trip to the Caribbean, and expenses related to a real estate development company co-owned by TREME and Ryan. During a subsequent Board meeting, Ryan and Burnell falsely stated that the $300,000 was used to pay down the outstanding loan debt owed by TREME and his business partners.
Ryan was sentenced to 170 months in prison for his role in this scheme, while Burnell was sentenced to 48 months in prison. Both Ryan and Burnell were sentenced by U.S. District Judge Eldon E. Fallon.
U.S. Attorney Evans praised the work of the agencies that conducted this years-long investigation: the Federal Bureau of Investigation - New Orleans Field Office; the Federal Deposit Insurance Corporation, Office of Inspector General, Dallas Regional Office; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General, Miami Field Office. Assistant U.S. Attorneys Matthew R. Payne of the Financial Crimes Unit, Nicholas D. Moses, Health Care Fraud Coordinator, J. Ryan McLaren of the Appellate Unit, and Rachal Cassagne of the Narcotics Unit, are in charge of the prosecution.
Cumberland County Man Sentenced to 28 Months’ Imprisonment for Fraud and Identity Theft OffensesRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Zedan RaShwan, age 25, formerly of Camp Hill, Pennsylvania, was sentenced yesterday by United States District Judge Sylvia H. Rambo, to 28 months of imprisonment, for wire fraud conspiracy and aggravated identity theft offenses.
According to United States Attorney Gerard M. Karam, RaShwan pleaded guilty to conspiring with others to use the stolen identities and DEA registration numbers of healthcare providers to order fraudulent prescriptions at various pharmacies. RaShwan and his coconspirators obtained and distributed those prescription medications, which included the controlled substances and prescription medications Promethazine with Codeine, Oxycodone, Hydrocodone, and Clonazepam. RaShwan has been in custody since pleading guilty on March 1, 2023.
The case was investigated by the Food and Drug Administration, Office of the Inspector General, and by the Pennsylvania Attorney General’s Office. Assistant U.S. Attorney Phillip J. Caraballo prosecuted the case.
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Clinton, Indiana, Woman Charged with Murder-for-HireRead the Press Release
URBANA, Ill. – A federal grand jury returned an indictment on February 6, 2024, charging a Clinton, Indiana, woman, Davetta Cox, 31, with an alleged murder-for-hire scheme occurring from January 16, 2024, through January 26, 2024.
The indictment alleges in two counts that Cox sought to hire someone she believed to be a hitman to kill another individual. The indictment further alleges that Cox offered $6,000 for the murder of this individual.
Cox was arrested in Charleston, Illinois, on January 26, 2024, and has remained in the custody of law enforcement in Macon County, Illinois.
If convicted, the maximum statutory penalties for the alleged crimes charged are up to 20 years imprisonment; up to a $500,000 fine; and up to a six-year term of supervised release.
Agencies participating in the investigation include the Federal Bureau of Investigation, Springfield Field Office, and the Illinois State Police. Assistant U.S. Attorney Rachel Ritzer is representing the government in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Canyon Country Man Sentenced to 20 Years in Federal Prison for Producing Child Sexual Abuse MaterialRead the Press Release
LOS ANGELES – A Santa Clarita man who is a former Navy SEAL was sentenced today to 20 years in federal prison for producing child sexual abuse material (CSAM) for surreptitiously filming nude minor victims with hidden cameras in a residential setting.
Robert Quido Stella, 51, of Canyon Country, was sentenced by United States District Judge George H. Wu.
At the conclusion of a four-day trial in May 2023, a jury found Stella guilty of three counts of production of child pornography. In April 2023, prior to trial, Stella pleaded guilty to access with intent to view child pornography and two counts possession of child pornography.
In 2021, Homeland Security Investigations (HSI) received a tip that Stella had accessed a dark web child pornography website.
On July 15, 2021, agents found collections of CSAM on Stella’s computer and two external hard drives. Stella concealed some of the collections in digital folders structures bearing misleading titles such as “federal contracts” and “tax returns.”
During the investigation, HSI agents also found hidden cameras that Stella placed, including one disguised as a USB charging block. According to evidence presented at trial, Stella used that hidden camera to film his minor victims as they undressed to shower and used the bathroom.
HSI later located approximately 17 videos and over 100 screenshots from those videos of minor victims naked and partially undressed. Stella hid these images under multi-level digital folder structures on a hard drive bearing misleading titles such as “course work.”
Stella has been in custody since his arrest in July 2021.
HSI investigated this matter.
Assistant United States Attorneys Catharine A. Richmond and Lyndsi C. Allsop of the Violent and Organized Crime Section prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Justice Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
California Woman Pleads Guilty to Nationwide Marijuana Trafficking ConspiracyRead the Press Release
ALBANY, NEW YORK – Ruby Ledesma, age 25, of Fresno, California, pled guilty today to conspiring to distribute marijuana and tetrahydrocannabinols (THC).
United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; Troy Police Chief Daniel DeWolf; and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
Ledesma admitted that she was a member of a marijuana and THC trafficking organization that shipped thousands of kilograms of marijuana and THC from Fresno to locations throughout the United States, including the Capital Region, between 2016 and June 2022. The marijuana and THC was shipped through UPS and FedEx from a shipping store, Fast Pack & Ship, in Fresno.
Fast Pack & Ship was owned by Ledesma’s brother, Sammy Olague, from 2016 through June 2018, when he sold the business to Nehemiah Fane, aka “Neil.” Olague received a portion of the purchase money for Fast Pack & Ship from Dwight A. Singletary II, aka “Nutt” and “Mike Jones,” and James Tyrell Daniels, aka “Red” and “Ghost,” helped manage Fast Pack & Ship when it was owned by Fane. In April 2020, Fane transferred ownership of Fast Pack & Ship to Singletary’s partner, McKenzie Merrialice Coles, aka “Kenzie,” who operated Fast Pack & Ship through M.M.M.C. Management, Inc. The defendant worked with Olague, Fane, Daniels, Singletary and Coles to ship the packages of marijuana and THC.
Ledesma also arranged for Singletary to obtain distribution-quantities of THC “edibles,” which Singletary, in turn, sold.
Ledesma was charged in an indictment with Singletary, Coles, Olague, Fane, Daniels and 18 other people charging marijuana distribution and money laundering conspiracies, firearms offenses, and other crimes. Singletary, Coles, Fane, and Daniels have pled not guilty and are presumed innocent unless and until proven guilty. The charges in the indictment are merely accusations.
In addition to Ledesma, Olague and five other defendants, Rosemary Coles, Latrice Mumphrey, Jazell Shuler, Victor Turner, and Kristle Walker, previously pled guilty and are pending sentencing.
The ATF, DEA, Troy Police Department and HSI are investigating the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
C-Block Member Sentenced to 384 Months in Federal PrisonRead the Press Release
DES MOINES, Iowa – A Des Moines man was sentenced today to 384 months in federal prison after a jury convicted him of charges related to firearms straw purchasing and illegally possessing firearms and a machinegun.
According to public court documents and evidence presented at trial and sentencing, believing that a group of people contained a rival gang member, Dontavius Rashawn Sharkey, age 27 and a member of the C-Block gang, open-fired with two firearms into a crowd of people attending a baby shower at a Des Moines apartment complex. Three teens were struck by Sharkey’s bullets, causing serious injuries to each. All three survived. As noted in the government’s sentencing memorandum, “[h]is motive, that a rival gang member happened to be in that crowd, was unconscionable.”
Following the shooting, Sharkey, a convicted felon, recruited an individual to illegally purchase him multiple firearms from various gun stores in the Des Moines area. One of those firearms was recovered by law enforcement on November 2, 2022, during a search warrant at Sharkey’s Des Moines residence. During that search warrant, Sharkey ran from police with this loaded firearm, which he had converted to a machinegun with an auto-switch. Sharkey was captured by an ATF K-9.
Twenty-four months of his sentence resulted from the revocation of his federal supervised release. Sharkey was serving a term of federal supervised release at the time he committed these crimes. He had been released from federal prison on February 17, 2022, after serving a 60-month sentence for felon in possession of a firearm.
After completing his term of imprisonment, Sharkey will be required to serve three years of supervised release. There is no parole in the federal system.
“The Des Moines Police have enjoyed a long-standing working relationship with the ATF, FBI and the United States Attorney’s Office,” stated Des Moines Police Chief Dana Wingert. “This partnership continues to pay dividends in our community, whereas violent criminals are held accountable for their actions. The collective efforts in this particular case are certainly impressive, and we vow to continue pooling our resources in a relentless pursuit of those individuals who compromise the safety our of citizens through gun violence.”
“The ATF has no greater mission than keeping firearms out of the hands of violent criminals. This case not only demonstrates the lengths to which criminals will go to acquire firearms, but more importantly, ATF’s expertise and commitment to investigating such violations of federal law,” said Bernard Hansen, Special Agent in Charge, Kansas City Field Division, ATF. “With our law enforcement partners and the United States Attorney’s Office, we will continue to work tirelessly to bring those who disregard the safety of our communities to justice.”
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. Assistant United States Attorneys Kristin M. Herrera and Adam J. Kerndt prosecuted the case This case was investigated by the Des Moines Police Department – Intelligence Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and the Federal Bureau of Investigations. Des Moines Police Detective/ATF Task Force Officer Brian Minnehan was the lead agent in the investigation.
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 make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Brownsburg Man Sentenced to Nine Years in Federal Prison for Sharing Thousands of Child Sexual Abuse Videos and ImagesRead the Press Release
INDIANAPOLIS- Mario Parker, 22, of Brownsburg, Indiana, has been sentenced to nine years in federal prison after pleading guilty to possession of child sexual abuse material.
According to court documents, in June of 2021, investigators discovered that an individual living in California had been sharing sexually explicit images and videos via the social media application Kik with someone later identified as Mario Parker. In chats over Kik, Parker learned that the individual from California worked in a daycare and had a sexual interest in children. Knowing that, Parker asked the daycare employee to distribute sexually explicit images and videos of the children in the daycare to Parker knowing that it would result in their sexual exploitation. In one of the Kik conversations, Parker admitted that he would like to adopt a daughter with the intention of raping her.
On June 30, 2022, officers executed a federal search warrant at Parker’s residence in Brownsburg and found a Samsung Galaxy cell phone. During a search of the phone, investigators located several graphic sexual abuse videos of children as young as three years old being forcefully tied down and raped by adult men, as well as videos depicting bestiality. In total, officers recovered thousands of images and approximately 889 videos of child sexual abuse from Parker’s cell phone and accounts.
In an interview with investigators, Parker admitted to using social media applications such as Kik, Snapchat, and Telegram to communicate about and share child sexual abuse material with users who shared his sexual interest in children.
“This pedophile revictimized hundreds of children across the world, many of whom we will never know. Even more disturbing, communicated with other like-minded criminals, sharing these horrific videos and their sick desires to perpetrate these abuses on even more children,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “Sexual abuse of children is more widespread than decent people understand, especially the proliferation of abuse images online. Our federal prosecutors will continue to partner with the FBI to identify these criminals, and work to put them where they cannot harm any more of our children.”
The FBI investigated this case. The sentence was imposed by U.S. District Court Judge, Jane Magnus-Stinson. Judge Stinson also ordered that Parker be supervised by the U.S. Probation Office for ten years following his release from federal prison and pay $24,000 in restitution to victims.
U.S. Attorney Myers thanked Assistant United States Attorney Tiffany J. Preston, who prosecuted this case.
If you are a victim of child sexual exploitation, please contact your local police department. Resources for victims of child exploitation can be found on our website at https://www.justice.gov/usao-sdin/project-safe-childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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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Brothers each sentenced to more than 12 years in prison for running multi-state cocaine ringRead the Press Release
DAYTON, Ohio – Two brothers were sentenced in federal court here today for leading a long-running drug-trafficking organization that sourced bulk amounts of narcotics from Los Angeles and Houston to Dayton and Charlotte, North Carolina.
The government argued at sentencing that Roger Earl Walton, Jr., 44, of Concord, North Carolina, and Shawn Lee Walton, 50, of Charlotte, North Carolina, were sophisticated drug distributors, who, from 2014 until 2020, led a lucrative conspiracy to traffic kilogram quantities of cocaine.
Roger Earl Walton, Jr., also known as “Mike,” was sentenced to 168 months in prison. Shawn Lee Walton, also known as “Swoop,” was sentenced to 151 months in prison.
“Drug trafficking, by its very nature, is devastating to communities,” said U.S. Attorney Kenneth L. Parker. “Thanks to the work of our law enforcement partners across multiple jurisdictions, the Waltons can no longer harm our cities.”
According to court documents, the Waltons and four other defendants conspired to traffic at least 3,000 kilograms of converted drug weight. The six defendants were charged by indictment in August 2020. As part of this case, law enforcement has seized more 25 kilograms of cocaine and more than one million in cash from the drug-trafficking organization.
Over the course of the narcotics conspiracy, law enforcement in various jurisdictions conducted multiple stops, searches and seizures of the Walton drug-trafficking organization. They include at least half a dozen law enforcement interactions in North Carolina, Oklahoma, Texas and Ohio.
The coconspirators convicted and sentenced as part of this case include:
Name
Also Known As
Age
City of residence
Sentence imposed
Noah Alexander Sherrill
704 Noah
36
Dayton
48 months in prison
Rauland Pollard, III
Saki, Sockey
38
Dayton
51 months in prison
Glynn Sewell
Frezzy
42
Charlotte, NC
100 months in prison
Louis Walton
26
Charlotte, NC
24 months in prison
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 Afzal announced the sentences imposed today by U.S. District Court Judge Michael J. Newman.
U.S. Attorney Parker recognized the critical assistance of the Oklahoma COMIT Task Force, the Charlotte Mecklenburg, North Carolina, and Beaumont, Texas, police departments, the Cabarrus County, North Carolina, Sheriff’s Office and the DEA in Greensboro and Charlotte, North Carolina.
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.
Assistant United States Attorneys Amy Smith and Rob Painter and Trial Attorney Elizabeth R. Rabe, now with the Department of Justice’s Money Laundering Asset Recovery Section, represented the United States in this case.
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Brooklyn Woman Sentenced to Three Years in Prison for COVID-19 Fraud Scheme and Fraud on NYCHARead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that CHANETTE LEWIS was sentenced today to three years in prison for her role in two fraud schemes. LEWIS participated in a scheme to commit COVID-19 pandemic fraud by (i) defrauding New York City’s COVID-19 Hotel Room Isolation Program, and (ii) committing unemployment benefits fraud. LEWIS also committed a fraud in which she submitted fabricated documents to the New York City Housing Authority (“NYCHA”) — such as purported Orders of Protection bearing Judges’ names, purported letters from a District Attorney, and purported letters from healthcare professionals attesting to alleged medical issues — in order to secure public housing benefits for her customers. LEWIS’s sentence was imposed by U.S. District Judge Lewis A. Kaplan.
U.S. Attorney Damian Williams said: “Chanette Lewis exploited multiple lifelines offered to New York City residents in need during the COVID-19 pandemic. Each of her schemes misappropriated identifying information of hardworking individuals, including medical professionals whose services were vital during the pandemic. For her brazen crimes, Lewis has now been sentenced to prison.”
According to the allegations contained in the Superseding Information, court filings, and statements made during court proceedings:
LEWIS’s COVID-19 Pandemic Fraud Scheme
During 2020 and 2021, LEWIS conspired to commit COVID-19 pandemic fraud in two ways.
First, LEWIS defrauded the COVID-19 Hotel Room Isolation Program (the “Program”). In response to the COVID-19 pandemic, New York City created the Program. Funded by New York City and the Federal Emergency Management Agency, the Program provided free hotel rooms for qualifying individuals throughout New York City. In total, the Program was open to (i) healthcare workers who needed to isolate because of exposure to COVID-19; (ii) patients who had tested positive for COVID-19; (iii) individuals who believed, based on their symptoms, that they were infected with COVID-19; and (iv) individuals who lived with someone who contracted COVID-19. As stated on the City’s website describing the Program, such individuals “may qualify to self-isolate in a hotel, free of charge, for up to 14 days if you do not have a safe place to self-isolate.” Those who wished to book a hotel room through the Program could either call a phone number or use an online hotel booking platform.
LEWIS defrauded the Program in several respects. First, she secured free Program hotel rooms for herself by falsely claiming to be a healthcare worker. Second, she sold at least approximately 1,936 nights’ worth of fraudulently obtained hotel rooms to customers who were ineligible for the Program. Third, LEWIS abused her employment, which was supposed to be in service of the Program. Specifically, LEWIS worked at a call center that handled phone calls and certain reservations for the Program for several months in 2020. As a result of her employment, LEWIS had access to legitimate healthcare workers’ identifying information. LEWIS abused her position, including by misappropriating healthcare workers’ identifying information, revealing the Program’s inner workings to co-conspirators, and making unauthorized sales of Program hotel rooms to ineligible individuals. For instance, LEWIS sold a co-defendant personal identifying information of at least five healthcare professionals, as well as certain “codes” to use when booking hotel reservations through the Program, such as an employee ID number and license number. LEWIS also advertised to potential customers that when hotels asked for a healthcare worker’s identification, LEWIS would supply a purported paystub and a letter falsely asserting that the individual was a healthcare worker.
Second, during 2020 and 2021, LEWIS committed unemployment benefits fraud in New York State by fraudulently obtaining such benefits for herself and also by stealing the identity of an incarcerated individual and conspiring to obtain unemployment benefits issued for the benefit of that individual. In total, LEWIS fraudulently obtained approximately $47,000 in unemployment benefits.
LEWIS’s Fraud on NYCHA
During 2020 and 2021, LEWIS participated in a separate conspiracy to defraud NYCHA. LEWIS submitted fabricated documents to NYCHA — such as purported Orders of Protection bearing Judges’ names, purported letters from a District Attorney, and purported letters from doctors attesting to alleged medical issues — in order to secure public housing benefits for her customers, including transfers to larger NYCHA apartments. In total, LEWIS submitted fraudulent applications to NYCHA on behalf of more than approximately 30 individuals, a number of whom in fact received the public housing benefit they requested based on fraudulent documentation submitted by LEWIS.
* * *
In addition to her prison term, LEWIS, 32, of Brooklyn, New York, was sentenced to three years of supervised release and ordered to forfeit $289,536 and to pay restitution of $360,330.
LEWIS’s three co-defendants — Tatiana Benjamin, Tatiana Daniel, and Heaven West — previously pled guilty. On February 1, 2024, Benjamin was sentenced principally to one year and one day in prison, three years of supervised release, restitution of $294,624, and forfeiture of $51,088; and West was sentenced principally to time served, three years of supervised release, restitution of $59,644, and forfeiture of $23,684. Daniel’s sentencing is scheduled for March 6, 2024, at 11:30 a.m.
Mr. Williams praised the outstanding efforts of agents, investigators, and analysts from the New York City Department of Investigation, the New York Regional Office of the U.S. Department of Labor – Office of Inspector General (“DOL-OIG”), and the U.S. Attorney’s Office for the Southern District of New York. Mr. Williams also thanked the New York/New Jersey High Intensity Drug Trafficking Area Intelligence Analysts for their support and assistance in this investigation. He also expressed gratitude to the New York City Police Department, the New York State Department of Labor, and the DOL-OIG Atlanta Regional Office for their assistance.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Michael D. Neff is in charge of the prosecution.
Boone County Man Sentenced for Possession of Child PornographyRead the Press Release
COVINGTON, Ky. – A Burlington, Ky., man, David L. Mitchell, 73, was sentenced on Thursday, by U.S. District Judge David Bunning, to 48 months in prison, for possession of child pornography. He also was ordered to pay over $20,000 in victim restitution.
According to his plea agreement, on June 29, 2022, law enforcement travelled to Mitchell’s home and requested permission to enter his residence to discuss an investigation. During a consensual search of his home, law enforcement found a USB device and hard drive that Mitchell admitted contained pornographic material of minors, and he also admitted that he had accessed visual depictions of minors engaged in sexually explicit conduct in the past through the Internet. It was discovered the devices contained over 100 unique digital images and over 100 unique digital videos of minors, including minors under the age of 12, engaged in sexual conduct.
Under federal law, Mitchell must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years. Mitchell was also ordered to pay $23,000 in victim restitution.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; and Rana Saoud, Special Agent in Charge, Department of Homeland Security, Homeland Security Investigations (HSI); jointly announced the sentence.
The investigation was conducted by HSI Northern Kentucky. Assistant U.S. Attorney Andrew Spievack is prosecuting the case on behalf of the United States.
The U.S. Attorney’s Office prosecuted this case as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Billings meth, fentanyl trafficker sentenced to 10 years in prisonRead the Press Release
BILLINGS — A Billings woman who admitted to trafficking methamphetamine and fentanyl pills in the community after law enforcement found drugs, firearms and cash in a vehicle in which she was an occupant was sentenced today to 10 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
The defendant, Shaynee Renee Gibbs, 45, pleaded guilty in October 2023 to possession with intent to distribute controlled substances.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that in November 2022, Laurel Police Department officers conducted a traffic stop of a Cadillac occupied by Gibbs and co-defendant Aaron Meeks. In an initial search of the vehicle, officers located a firearm and drug paraphernalia. Later, law enforcement executed a search warrant on the vehicle and a package Gibbs and Meeks had said they were awaiting. The package contained approximately 3.8 pounds of meth and fentanyl. In the Cadillac, agents located fentanyl pills, a 9mm pistol, a 9mm rifle, multiple rounds of ammunition and $12,461 in cash. Meeks told law enforcement that he and Gibbs were picking up drug packages of meth and fentanyl coming from Arizona for co-defendant Cynthia Pruett. Gibbs told law enforcement that Pruett was distributing large quantities of meth and fentanyl and storing drugs at a storage unit. Pruett was sentenced previously to 15 years and three months in prison for her conviction in the case. Meeks and a third co-defendant, Jacob Taylor West, are pending sentencing for their convictions in the case.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case. The Drug Enforcement Administration, Billings Police Department, U.S. Border Patrol, Laurel Police Department, Yellowstone County Sheriff’s Office and Montana Highway Patrol conducted the investigation.
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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Barred Broker Dealer Sentenced to 45 Months in Prison for $1.2 Million Investment Fraud and Fraudulent $96,000 CARES Act LoanRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man was sentenced today to 45 months for defrauding 14 victims of more than $1.2 million and fraudulently obtaining a loan of approximately $96,000 meant for small businesses during the COVID-19 pandemic, U.S. Attorney Philip R. Sellinger announced.
Anthony Mastroianni Jr., 49, of Manalapan, New Jersey, pleaded guilty on Sept. 13, 2023, before U.S. District Judge Robert Kirsch to an information charging him with two counts of wire fraud. Judge Kirsch imposed sentence today in Trenton federal court.
U.S. Attorney Philip R. Sellinger“This defendant admitted defrauding investors by taking the money they entrusted to him and using it for his personal benefit, rather than investing it. He did this after already having agreed never to work as broker. Investors need to know their money is being used for their best interest, and not to line the pockets of criminals. Mastroianni is now realizing the price that must be paid for stealing from innocent victims.”
According to documents filed in this case and statements made in court:
In 2016, Mastroianni consented to being permanently barred by the Financial Industry Regulatory Authority (FINRA), which prohibited him from acting as a broker or intermediary in securities transactions. Despite that debarment, Mastroianni admitted that from January 2017 to August 2022 he defrauded victim investors, many of whom were senior citizens, by falsely and fraudulently claiming that he would generate large investment profits for them through his company, Global Business Development & Consulting Corporation. Instead of investing the money as promised, Mastroianni used victim funds on personal expenses. In total, Mastroianni defrauded 14 victims of approximately $1.2 million.
Mastroianni also exploited the ongoing global pandemic by submitting a false and fraudulent application to obtain approximately $96,300 from a federal COVID-19 emergency relief loan meant for distressed small businesses. As with his investment fraud scheme, Mastroianni misused the loan proceeds to make personal purchases and cash withdrawals.
In addition to the prison term, Judge Kirsch also sentenced Mastroianni to three years of supervised release and ordered restitution of $1.3 million.
U.S. Attorney Sellinger credited special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Carolyn Silane of the Economic Crimes Unit in Newark.
Attorney General Merrick B. Garland Honors Local Attorneys as Part of 2023 Attorney General’s AwardsRead the Press Release
SAN JOSE – Attorney General Merrick B. Garland announced the recipients of the 70th and 71st Attorney General’s Awards, honoring Justice Department employees and others for extraordinary contributions to the enforcement of our nation’s laws. Recipients from both 2022 and 2023 were selected from a group of more than 800 nominees. Four Assistant United States Attorneys serving in the Northern District of California were among the persons who received awards during the ceremony in Washington, D.C.
“Each of today’s recipients has served with distinction, and in so doing, they have enabled the Justice Department to advance its work on behalf of the American people,” said Attorney General Garland. “Their exceptional leadership, heroism, and dedication have benefited people and communities across the country.”
“I am extremely proud to see the hard work of this team recognized by Attorney General Garland,” said U.S. Attorney Ismail Ramsey. “The guilty verdicts and sentencings in the Theranos case could not have been achieved without the dedicated efforts of team members who spent many hours reviewing millions of pages of documents, organizing many skillful presentations, and delivering careful arguments in furtherance of justice for the people of the United States. The recognition is well-deserved.”
The awards presented include the John Marshall Award, named for the fourth Chief Justice of the United States. The award recognizes outstanding professional achievement by attorneys of the Justice Department. Recipients of the 2023 John Marshall Award for Trial of Litigation include Northern District of California Assistant U.S. Attorneys Robert S. Leach, Kelly I. Volkar, John C. Bostic, and Jeffrey D. Nedrow for their work in United States v. Holmes and United States v. Balwani. These prosecutions were also the product of outstanding work by former Assistant U.S. Attorney Jeff Schenk, the Federal Bureau of Investigation (in particular, Special Agent Mario Scussel and Special Agent Adelaida Hernandez), the U.S. Postal Inspections Service (in particular, Special Agent Christopher McCollow), and the U.S. Food and Drug Administration’s Office of Criminal Investigations (in particular, Special Agent in Charge George Scavdis), as well as the assistance of Madeline Wachs, Lakisha Holliman, Sara Slattery, Elise Etter, Susan Kreider, Lynette Dixon, Sahib Kaur, and Leeya Kekona. These criminal cases arose from fraud committed by defendants Elizabeth A. Holmes and Ramesh “Sunny” Balwani in connection with Theranos, Inc., a now-defunct blood testing company based in Palo Alto and Newark, Calif. Each defendant was convicted in a separate trial, after which Holmes was sentenced to 135 months (11 years, 3 months) in federal prison for defrauding investors in Theranos of hundreds of millions of dollars and Balwani was sentenced to 155 months (12 years, 11 months) in federal prison for fraud that risked patient health by misrepresenting the accuracy of Theranos blood analysis technology and that defrauded Theranos investors.
A list of all the recipients of the 70th and 71st Attorney General’s Awards can be found here.
7 February 2024
Virginia Man Sentenced to 5 Years Probation and Ordered to Pay over $1.5 Million in Restitution for Defrauding the United StatesRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Carissa Messick, Acting Special Agent in Charge, IRS Criminal Investigation, announced that Jerry Shrock was sentenced to 5 years’ probation and ordered to pay $1,542,769.70 in taxes, interest, and penalties. Shrock, 48, of Meadowview, Virginia, pleaded guilty on Nov. 28, 2022, to conspiracy to defraud the United States. Prior to sentencing, Shrock paid more than $430,000 toward his tax debt.
According to court records, beginning in January 2005, David Wellington and his business partner Stacy Underwood operated National Business Services, which promoted, sold and created Limited Liability Companies (LLCs) under New Mexico State Law. For many clients, National Business Services would open bank accounts under the names and IRS employer identification numbers (EINs) of the LLCs, and the clients – whose names were not associated with the bank accounts - would have access to the funds in those accounts. Clients received debit cards, online bank access information and pre-signed checks with Underwood’s signature, which clients could use to access the money despite the bank never associating the client with the account.
In his plea agreement, Shrock admitted that he contacted National Business Services in 2006 for help avoiding federal taxes by incorporating a business in New Mexico. Shrock spoke with Underwood and Wellington and became a client of National Business Services.
Wellington and Underwood created three LLCs in New Mexico for Shrock: White Top Enterprise LLC; Poultry Enterprises LLC; and TALC Properties LLC. Shrock was not listed on the Articles of Organization. Instead, Underwood was listed as the “Organizer,” and National Business Services was the initial registered agent for each of the three LLCs.
On May 9, 2011, Underwood opened a bank account in the business name of White Top Enterprise, LLC, utilizing the company EIN. Underwood was the sole signer on the bank account. Shrock’s name was not associated with the account. Underwood provided Shrock with online access to the bank account and a book of pre-signed checks with her signature. Between May 9, 2011, and June 30, 2015, Shrock caused approximately $4,875,940 to be deposited into the White Top Enterprise LLC bank account, and over the same time period, Shrock and his wife withdrew or caused the withdrawal of approximately $4,875,940. Among the withdrawals was a wire transfer of approximately $352,216 for the purchase of a home.
Prior to his indictment in this case on June 23, 2021, Shrock did not file a personal or business tax return with the IRS reporting the White Top Enterprises LLC income. At the time of the White Top Enterprise LLC deposits and withdrawals, Shrock had a large outstanding IRS lien of approximately $1,026,858 for unpaid taxes, penalties and interest. the White Top Enterprises LLC bank account enabled Shrock to generate and deposit income while evading the outstanding assessment and avoiding personal and business taxes on the income.
On April 24, 2023, Wellington pleaded guilty to conspiracy to defraud the United States and remains on conditions of release pending sentencing, which has not been scheduled. Under the terms of his agreement, Wellington faces up to 5 years in prison followed by up to 3 years of supervised release.
On Oct. 21, 2022, Underwood pleaded guilty to conspiracy to defraud the United States and remains on conditions of release pending sentencing, which has not been scheduled. Under the terms of her agreement, Underwood faces up to 5 years in prison followed by up to 3 years of supervised release.
IRS Criminal Investigation investigated this case. Assistant United States Attorney Jeremy Peña is prosecuting the case.
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Utica Man Sentenced to over 13 Years in Federal Prison for Armed Robbery of RestaurantRead the Press Release
SYRACUSE, NEW YORK – Nay Thar, age 25, of Utica, New York, was sentenced today to serve 157 months (13-years and one month) in federal prison for committing the armed robbery of a restaurant in Utica, and use of an unregistered short-barreled shotgun to commit the robbery, announced United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Chief Mark Williams, City of Utica Police Department, New York State Police Acting Superintendent Steven G. James, Acting Commissioner Daniel F. Martuscello III, New York State Department of Corrections and Community Supervision, and Oneida County District Attorney Todd Carville.
As part of his previous guilty plea, Thar admitted that on August 5, 2022, he used an unregistered short-barreled 12-gauge shotgun to rob the Zam Zam Restaurant in Utica. Upon entering the restaurant wearing a ski-mask, Thar pointed the sawed-off shotgun at an employee and demanded she open the cash register. After she fled to the rear of the restaurant without opening the register, Thar stole a donation box on the counter containing cash for a charity, exited the building, and fled in a car. New York State Parole officers who happened to be in the area responded with Utica Police (UPD). After a short vehicle pursuit, Thar was taken into custody by Utica Police. The ski-mask, unregistered shotgun, and stolen money were recovered from the car Thar was driving.
Thar was also sentenced today to serve a 5-year term of post-incarceration supervised release following completion of his prison sentence.
The United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Utica Police Department (UPD), the New York State Police (NYSP), and Officers of the New York State Department of Corrections and Community Supervision (Parole) investigated the case. Assistant U.S. Attorney Richard Southwick prosecuted (with assistance from the Oneida County District Attorney’s Office) the case as 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.
Utah Drug Trafficker Admits to Selling Narcotics, Sentenced to 65 Months in PrisonRead the Press Release
SALT LAKE CITY, Utah – Luis Alexander Coronado, 25, of Herriman, Utah, was sentenced to over 5 years’ imprisonment, three years’ supervised release and the forfeiture of $23,074 by a U.S. District Court Judge as a result of a guilty plea. Coronado engaged in a serious drug trafficking offense involving large quantities of heroin, methamphetamine, cocaine, and fentanyl in the District of Utah.
According to court documents and statements made at the change of plea hearing, Coronado possessed heroin that he intended to distribute. On March 7, 2023, Coronado was arrested after a search warrant was executed at his residence. In his home, agents found approximately 3500 grams of heroin, 41,000 pills containing fentanyl, methamphetamine and cocaine, all of which Coronado admitted he intended to distribute to others. Agents also seized $23,074, which Coronado admitted was obtained by selling drugs. See prior press release here.
“Community safety is a top priority,” said U.S. Attorney Trina A. Higgins of the District of Utah. “I want to thank law enforcement and my office’s prosecutors for their commitment to removing narcotics from criminals like Coronado who put our communities at risk."
“The amount of illicit drugs seized from Luis Coronado was enough to potentially kill thousands of Utahns,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “Countless lives have been destroyed by the overdose epidemic and the FBI and our partners will pursue those who fuel these addictions in our communities.”
The case was investigated by the FBI Wasatch Metro Drug Task Force.
Assistant United States Attorney, Vernon G. Stejskal 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.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Union Man on Supervised Release Sentenced to Federal Prison for Drug TraffickingRead the Press Release
SPARTANBURG, S.C. — William Michael Hall, of Union, was sentenced to 20 years in federal prison after pleading guilty to conspiracy to distribute fentanyl and methamphetamine. Hall had been released from federal prison in April of 2020, following a 10-year sentence for a previous federal drug offense, and was still on federal supervised release at the time of the incident.
Evidence presented to the court showed that in early 2021, agents with the Drug Enforcement Administration learned that Hall was receiving large shipments of drugs through the mail. Additionally, agents seized telephone messages between Hall and a drug distributor in Ohio showing that Hall had been supplying the distributor with large quantities of fentanyl and other drugs since at least August of 2020. Finally, on July 29, 2021, deputies with the Spartanburg County Sheriff’s Office intercepted a courier Hall had recruited to transport drugs from Atlanta. A search of the courier’s vehicle revealed approximately one kilogram of fentanyl and five kilograms of methamphetamine. Deputies also determined that Hall was traveling in tandem with the courier in a nearby vehicle.
United States District Judge Donald C. Coggins sentenced Hall to 210 months imprisonment, to be followed by a five-year term of court-ordered supervision. Furthermore, because Hall was on federal supervised release at the time of his offense, the court sentenced him to serve an additional 30 months in prison consecutive to the sentence imposed, bringing his total sentence to 20 years. There is no parole in the federal system.
This case was investigated by the Drug Enforcement Administration, the United States Postal Inspection Service, and the Spartanburg County Sheriff’s Office. Assistant U.S. Attorney Chris Schoen is prosecuting the case.
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U.S. Attorney’s Office collects more than $24 million in civil and criminal actions in Fiscal Year 2023Read the Press Release
Seattle- U.S. Attorney Tessa M. Gorman announced today that the Western District of Washington collected more than $24 million in criminal and civil actions in Fiscal Year 2023. Of this amount, $12,306,908 was collected in criminal actions and $11,958,411 was collected in civil actions.
Additionally, the Western District of Washington worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $41,493,471 in civil cases pursued jointly by these offices.
“Overall, our collections have increased significantly over prior years and that is a win for taxpayers and crime victims who benefit when we are able to collect restitution and settlement funds,” said U.S. Attorney Tessa M. Gorman. “Of particular note is the $40 million settlement in a False Claims Act matter involving telecommunications for health care in Alaska.”
In May 2023, the Western District of Washington recovered $40,252,546 as part of the settlement in the GCI communications False Claims Act Case. The Anchorage Alaska based corporation resolved allegations that it knowingly inflated its prices and violated Federal Communications Commission (FCC) competitive bidding regulations in connection with GCI’s participation in the FCC’s Rural Health Care Program.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the Western District of Washington working with partner agencies and divisions, collected $4,765,255 in asset forfeiture actions in FY 2023. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office Collects more than $6 million in Civil and Criminal Actions in Fiscal Year 2023Read the Press Release
BILLINGS — U.S. Attorney Jesse Laslovich announced today that the District of Montana collected $6,041,422 in criminal and civil actions in Fiscal Year 2023. Of this amount, $1,876,130 was collected in criminal actions and $4,165,292 was collected in civil actions.
Additionally, the District of Montana worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $52,813,479 in cases pursued jointly by these offices. Of this amount, the Department of Justice collected $48,185,752 from Atlantic Richfield Co. and $4,627,717 from Kalispell Regional Medical Center.
“These collections come from both criminals who owe victims money, as well as those who owe debts or civil penalties to the American taxpayer. After we obtain criminal convictions or civil judgments, our office’s financial litigation program is tasked with ensuring money is paid to victims and as these numbers reflect, they have great success. Their service is essential to executing our criminal and civil judgments, and I thank them for their tireless work and dedication to crime victims and the American people,” U.S. Attorney Laslovich said.
Funds collected from civil judgments include:
- $2,940,474 from Dr. David Bellamah and Bellamah Vein & Surgery for settlement of alleged False Claims Act violations.
Funds collected from criminal judgments include:
- $184,457 from Rodolfo “Nick” Gutierrez, Jr., who paid his victims in full, with interest. Gutierrez was convicted of bank fraud in 2010. Collected from real property in Texas which he had transferred without paying his victims.
- $178,814 from Gene Klamert, which included full restitution and a $35,000 fine for defrauding the Bureau of Land Management.
- $100,000 from U.S. Minerals, Inc., which was convicted of negligent endangerment for exposing workers to arsenic at its former Anaconda plant.
- $91,556 from Aaron Grossman, which included full payment of his restitution and a $20,000 fine for false statements to a government agency.
- $66,050 from Anna Niles, who was convicted of wire fraud. Collected in part through turnover of Niles’s non-exempt retirement account.
- $41,482 from Melissa Horner, who was convicted of failing to pay IRS employment taxes.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office for the District of Montana, working with partner agencies and divisions, collected $485,202 in asset forfeiture actions in FY 2023. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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U.S. Attorney's Office Commemorates Black History MonthRead the Press Release
CHARLOTTE, N.C. – Today, the U.S. Attorney’s Office for the Western District of North Carolina held its annual program to commemorate Black History Month, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
U.S. Attorney King opened the program with welcome remarks and an introduction of this year’s keynote speaker, Dean Patricia Timmons-Goodson of North Carolina Central University’s (NCCU) School of Law.
“For over a decade, the U.S. Attorney’s Office has observed Black History Month to celebrate the profound impact of Black heritage on our nation’s history, culture, and identity, and as a means of raising awareness about the notable contributions and achievements of African Americans in all aspects of our society,” said U.S. Attorney King, who is a graduate of NCCU’s School of Law. “As we gather each year to remember those sung and unsung African American heroes throughout history, it is equally important to recognize and honor individuals within our community, such as Dean Timmons-Goodson, who broke barriers and paved the way for others to follow. Dean Timmons-Goodson serves as an inspiration for all of us, and we are grateful for her willingness to share her memories, wisdom, and life’s journey.”
Dean Timmons-Goodson, who was selected to lead NCCU’s School of Law in 2023, has spent the entirety of her professional career in public service. Appointed to the Supreme Court of North Carolina by former Governor Michael Easley in January 2006, Dean Timmons-Goodson was the fourth woman and the first African American woman to sit on the state’s highest court. The citizens of North Carolina overwhelmingly affirmed her appointment by later electing her to the court. Her retirement from the Supreme Court in 2012, marked the conclusion of 28 years of service in the judiciary of North Carolina.
Two Iranian Nationals Charged with Conspiring to Provide Sanctioned Technology to the Government of IranRead the Press Release
An indictment was filed today in federal court in Brooklyn charging Abolfazl Bazzazi and Mohammad Resa Bazzazi, father and son respectively, with conspiring to illegally export U.S. goods and technology to end users in Iran, including the Government of Iran, in violation of the International Emergency Economic Powers Act (IEEPA), and with attempted smuggling of U.S. goods and technology to Iran. The defendants, who are citizens of Iran, remain at large.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, and Brian Dugan, Special Agent-in-Charge, Federal Bureau of Investigation, Norfolk Field Office, announced the indictment.
“As alleged, the Bazzazis devised an intricate scheme to evade U.S. export laws in obtaining U.S. equipment and technology to be exported to Iran for the Government of Iran which has been designated by the United States government as a state sponsor of terrorism. The defendants allegedly attempted to obtain commercial and military aircraft items from multiple U.S. companies that supply the military, aerospace, and firefighting industries,” stated United States Attorney Peace. “These charges demonstrate the resolve of this Office and the Department of Justice to prosecute those who seek to aid the Government of Iran, in violation of U.S. sanctions.”
“In its first year, the Disruptive Technology Strike Force has strengthened enforcement and disrupted numerous criminal schemes to smuggle highly-sensitive technology that foreign adversaries wield to advance their military and other malign agendas,” stated Assistant Attorney General Olsen. “The case announced today underscores the commitment of the Justice Department and our partners to disrupt illegal efforts to siphon off U.S. ingenuity and to safeguard American security and innovation.”
“Our foreign adversaries use many tactics to gain access to critical U.S. technologies and innovation. In this instance, it’s alleged that the Bazzazi’s illegally attempted to export U.S. goods and technology to the Iranian government. Any circumvention of U.S. export control law is simply unacceptable. The FBI will continue to work diligently with its partners across the globe to hold all accountable who jeopardize national security,” stated FBI Special Agent-in-Charge Dugan.
As set forth in the indictment, between January 2008 and August 2019, the Bazzazis and their co-conspirators sought to evade U.S. sanctions and export laws by working to procure goods and technology from U.S. companies for end users in Iran, including the Government of Iran, without obtaining required licenses or other authorization from the U.S. Department of the Treasury’s Office of Foreign Assets Control. The defendants sought to obtain components that could be used for commercial and/or military aircraft. Additionally, they disguised the final destination of U.S. goods by attempting to forward them through intermediaries in Europe and elsewhere. The Bazzazis acted on behalf of an arm of the Government of Iran, which has been designated by the United States government as acting for or on behalf of terrorist organizations.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years in prison.
The government’s case is being handled by Assistant United States Attorneys Francisco J. Navarro, Jonathan P. Lax, Nomi D. Berenson, and Adam Amir, with assistance provided by Trial Attorney Adam Small of the Justice Department’s Counterintelligence and Export Control Section.
Defendants:
ABOLFAZI BAZZAZI
Age: 79
IranMOHAMMAD RESA BAZZAZI
Age: 43
IranE.D.N.Y. Docket No.: 24-CR-60 (DG)
Travelers Rest Man Sentenced to Federal Prison for Being a Felon in Possession of a FirearmRead the Press Release
GREENVILLE, S.C. — Michael Earl Mashburn, 49, of Travelers Rest, was sentenced to more than seven years in federal prison after pleading guilty to being a felon in possession of a firearm.
Evidence presented to the court showed that in the early morning hours of July 2, 2022, the Greenville County Sheriff’s Office was called to investigate reports of a suspicious person at a residence in Travelers Rest. Greenville County deputies responded and found Mashburn sleeping in his car in the homeowner’s driveway. Mashburn woke up and told the deputies he did not know how he arrived at that location. As Mashburn stepped out of the vehicle, deputies observed the handle of a gun protruding from his pocket. Deputies recovered a loaded .38 caliber handgun as well as small amounts of methamphetamine and fentanyl, and placed Mashburn under arrest. At the time of his arrest, Mashburn had previously been convicted of multiple felony offenses, including possession with intent to distribute methamphetamine, pointing-and-presenting a firearm, possession of a firearm by a person convicted of a violent crime, failure to stop for blue lights and multiple instances of burglary, larceny, possession of a stolen vehicle, and possession of various drugs.
United States District Judge Henry M. Herlong sentenced Mashburn to 92 months imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives and the Greenville County Sheriff’s Office. Assistant U.S. Attorney Chris Schoen is prosecuting the case.
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Three Individuals Sentenced for $3.5M COVID-19 Relief Fraud SchemeRead the Press Release
BOISE – Three defendants were sentenced yesterday for fraudulently obtaining and misusing Paycheck Protection Program (PPP) loans that were issued by a Boise financial institution and that were guaranteed by the U.S. Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, U.S. Attorney Josh Hurwit announced today. The defendants’ conduct was part of larger COVID-19 fraud ring.
Khadijah X. Chapman, 59, of Atlanta, was sentenced to three years and 10 months in prison; Daniel C. Labrum, 42, of South Jordan, Utah, was sentenced to two years in prison; and Eric J. O’Neil, 58, of Bethel, Connecticut, was sentenced to two years and three months in prison.
According to court documents and evidence presented at trial, Chapman, Labrum, and O’Neil fraudulently obtained PPP loans for fictitious businesses in 2020 and 2021. The defendants worked with co‑conspirators to falsify information and submitted fraudulent documents to financial institutions in Boise and elsewhere to collectively obtain approximately $3.5 million in relief funding intended for small businesses struggling with the economic impact of COVID-19.
Chapman was convicted after a jury trial in November 2023 of bank fraud. Labrum and O’Neil pleaded guilty in 2023 to bank fraud.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Special Agent in Charge Thomas M. Fattorusso of IRS Criminal Investigation (IRS:CI) New York, Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division, Special Agent in Charge Matthew Miraglia of the FBI Buffalo Field Office, Inspector General Gail S. Ennis of the Social Security Administration Office of the Inspector General (SSA-OIG), Special Agent in Charge Sharon B. MacDermott of SSA-OIG, and Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service (USPIS) Boston Division joined U.S. Attorney Hurwit in making the announcement.
IRS:CI, the FBI, SSA-OIG, and USPIS investigated the cases.
Trial Attorneys Jennifer Bilinkas and Tamara Livshiz of the Justice Department’s Criminal Division’s Fraud Section and Assistant U.S. Attorney Sean Mazorol for the District of Idaho prosecuted the cases.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department 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 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 www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Three Gang Members Charged in Connection with MurderRead the Press Release
Memphis, TN – A federal grand jury in Memphis, Tennessee, returned a superseding indictment yesterday bringing new charges against three alleged members of the Unknown Vice Lords (UVL)– Ghost Mob, a criminal street gang, for causing the death of an individual through the use of a firearm during and in relation to a crime of violence.
The superseding indictment charges Edward Earl Allen Jr., also known as E-Money, 40, of San Bernardino, California; Vincent Grant, also known as V Slash, 40, of Memphis; and Deandre Rodgers, also known as Dre, 27, also of Memphis.
“The Unknown Vice Lords street gang engages in violent criminal activity in Memphis and throughout the Western District of Tennessee. Today, we announce charges against three defendants for allegedly committing murder in order to increase their status in the gang,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “This prosecution is the first brought in Memphis as part of the Criminal Division’s Violent Crime Initiative — a collaboration with the U.S. Attorney’s Office and our law enforcement partners to address gang-related violence. It will not be the last.”
“When we announced the Violent Crime Initiative in Memphis, we promised to double down on our commitment to ensure families can feel safe in their homes and children can play safely on our streets without the threat of gang violence,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “The crimes alleged in this indictment underscore the tireless effort our prosecutors and agents are putting into fulfilling that promise and targeting the drivers of violence in Memphis with every tool we have. We will continue to build cases like this and hold violent gang members accountable for their actions.”
According to court documents, the UVL–Ghost Mob is a subset of the Almighty Vice Lord Nation, which originated in Chicago and eventually spread to other parts of the United States. The UVL–Ghost Mob is a violent criminal street gang that operates throughout the Western District of Tennessee and elsewhere as an extensive criminal enterprise whose members engaged in racketeering activity, including acts involving murder, robbery, and drug trafficking. The indictment alleges that Allen, Grant, and Rodgers used and discharged a firearm during the premeditated killing of an individual for the purpose of gaining entrance to and maintaining and increasing their positions within the UVL–Ghost Mob.
“The criminal misuse of a firearm by convicted felons to commit a premediated homicide had a devastating impact on the Memphis community,” said Special Agent in Charge Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division. “Identifying, arresting, and presenting the perpetrators of violent firearms crimes is at the core of the ATF mission of protecting the public. Yesterday’s indictment highlights ATF’s commitment to the Memphis community through vigorous enforcement of the federal firearms laws.
Each defendant is charged with causing death by use of a firearm during and in relation to a crime of violence, which carries a maximum sentence of life. If convicted, they each face a maximum penalty of life in prison, or the death penalty.
The ATF, Tennessee Bureau of Investigation, and Memphis Police Department investigated the case, with valuable assistance from the U.S. Marshals Service.
Trial Attorney Lisa M. Thelwell of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Wendy K. Cornejo for the Western District of Tennessee are prosecuting the case.
This case is brought as part of the Criminal Division’s Memphis Violent Crime Initiative, conducted in partnership with the U.S. Attorney’s Office for the Western District of Tennessee and local, state, and federal law enforcement. The joint effort addresses violent crime by employing, where appropriate, federal laws to prosecute gang members and associates in Memphis. As part of the initiative, the Criminal Division has dedicated attorneys and other resources to prosecuting violent offenders and assisting intervention, prevention, and reentry efforts to address the root causes of violent crime.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Gang Members Charged in Connection with MurderRead the Press Release
A federal grand jury in Memphis, Tennessee, returned a superseding indictment yesterday bringing new charges against three alleged members of the Unknown Vice Lords (UVL)–Ghost Mob, a criminal street gang, for causing the death of an individual through the use of a firearm during and in relation to a crime of violence.
The superseding indictment charges Edward Earl Allen Jr., also known as E-Money, 40, of San Bernardino, California; Vincent Grant, also known as V Slash, 40, of Memphis; and Deandre Rodgers, also known as Dre, 27, also of Memphis.
“The Unknown Vice Lords street gang engages in violent criminal activity in Memphis and throughout the Western District of Tennessee. Today, we announce charges against three defendants for allegedly committing murder in order to increase their status in the gang,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “This prosecution is the first brought in Memphis as part of the Criminal Division’s Violent Crime Initiative — a collaboration with the U.S. Attorney’s Office and our law enforcement partners to address gang-related violence. It will not be the last.”
“When we announced the Violent Crime Initiative in Memphis, we promised to double down on our commitment to ensure families can feel safe in their homes and children can play safely on our streets without the threat of gang violence,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “The crimes alleged in this indictment underscore the tireless effort our prosecutors and agents are putting into fulfilling that promise and targeting the drivers of violence in Memphis with every tool we have. We will continue to build cases like this and hold violent gang members accountable for their actions.”
According to court documents, the UVL–Ghost Mob is a subset of the Almighty Vice Lord Nation, which originated in Chicago and eventually spread to other parts of the United States. The UVL–Ghost Mob is a violent criminal street gang that operates throughout the Western District of Tennessee and elsewhere as an extensive criminal enterprise whose members engaged in racketeering activity, including acts involving murder, robbery, and drug trafficking. The indictment alleges that Allen, Grant, and Rodgers used and discharged a firearm during the premeditated killing of an individual for the purpose of gaining entrance to and maintaining and increasing their positions within the UVL–Ghost Mob.
“The criminal misuse of a firearm by convicted felons to commit a premediated homicide had a devastating impact on the Memphis community,” said Special Agent in Charge Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division. “Identifying, arresting, and presenting the perpetrators of violent firearms crimes is at the core of the ATF mission of protecting the public. Yesterday’s indictment highlights ATF’s commitment to the Memphis community through vigorous enforcement of the federal firearms laws.”
Each defendant is charged with causing death by use of a firearm during and in relation to a crime of violence. If convicted, they each face a maximum penalty of life in prison, or the death penalty.
The ATF, Tennessee Bureau of Investigation, and Memphis Police Department investigated the case, with valuable assistance from the U.S. Marshals Service.
Trial Attorney Lisa M. Thelwell of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Wendy K. Cornejo for the Western District of Tennessee are prosecuting the case.
This case is brought as part of the Criminal Division’s Memphis Violent Crime Initiative, conducted in partnership with the U.S. Attorney’s Office for the Western District of Tennessee and local, state, and federal law enforcement. The joint effort addresses violent crime by employing, where appropriate, federal laws to prosecute gang members and associates in Memphis. As part of the initiative, the Criminal Division has dedicated attorneys and other resources to prosecuting violent offenders and assisting intervention, prevention, and reentry efforts to address the root causes of violent crime.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Texas Man Who Sexually Abused a Sioux City Minor Sentenced to 20 Years in Federal PrisonRead the Press Release
A Brownsville, Texas man, who coerced a minor to engage in live streaming of sexually explicit conduct was sentenced February 6, 2024, to 20 years in federal prison. Isaac Herrera, age 22, from Brownsville, Texas, received the prison term after a May 10, 2023, guilty plea to sexual exploitation of a minor.
Evidence in the case revealed that Herrera met a child online in 2019 and eventually cultivated a sexual relationship with the child. Herrera coerced the child into live streaming sexually explicit conduct, where Herrera took screenshots during the stream. Several of the images were found on Herrera’s phone when he was arrested in June 2022 after walking into a local school and claiming to be the minor’s guardian. Herrera traveled from Texas to Iowa to engage in conduct with the victim. While Herrera was in jail, pending trial, he also admitted to contacting the victim in order to influence the victim’s potential testimony, resulting in a no contact order. Up until the evening before sentencing, however, Herrera made phone calls to the victim in an effort to continue communication and further influence testimony.
Herrera was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 240 months’ imprisonment. He must also serve an 8-year term of supervised release after the prison term, during which he will be prohibited from contacting three minor victims from this case. There is no parole in the federal system.
United States Attorney for the Northern District of Iowa Timothy Duax stated, “I am proud of the efforts of the FBI and Sioux City Police Department to capture a dangerous child molester, and see him sentenced to a lengthy prison term. The citizens of our community feel safer knowing that local, state, and federal law enforcement agencies work together seamlessly to protect children from dangerous predators like Mr. Herrera.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Herrera is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The was investigated by the Federal Bureau of Investigations and the Sioux City Police Department and was prosecuted by Assistant United States Attorney Ron Timmons.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4060.
Follow us on Twitter @USAO_NDIA.
Texas Man Charged with Filing Tax Returns that Falsely Reported His Cryptocurrency GainsRead the Press Release
A federal grand jury indicted a Texas man yesterday with filing false tax returns and structuring cash deposits to avoid currency transaction reporting requirements.
According to the indictment, between 2017 and 2019, Frank Richard Ahlgren III, of Austin, filed false tax returns that underreported or did not report the sale of $4 million worth of bitcoin in which he had substantial gains. All taxpayers are required to report any sale proceeds and gains or losses from the sale of cryptocurrency, such as bitcoin, on a tax return. In 2017, Ahlgren allegedly used the proceeds from the sale of approximately $3.7 million worth of bitcoin to purchase a residence. Ahlgren allegedly filed a false 2017 tax return that inflated the price he originally paid for the bitcoin, thereby underreporting his capital gain from the sale. In 2018 and 2019, Ahlgren allegedly sold bitcoin for more than $650,000, and allegedly failed to report his sales of bitcoin on his 2018 and 2019 tax returns.
The indictment also charges that after selling some of his bitcoin to an individual in exchange for cash, Ahlgren made a series of bank deposits of the cash in amounts less than $10,000 each to avoid triggering currency transaction reporting requirements.
Ahlgren faces a maximum penalty of five years in prison for each structuring count and three years in prison for each false return count. 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 and U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
IRS Criminal Investigation and the Texas Office of Attorney General are investigating the case.
Assistant Chief Michael C. Boteler and Trial Attorney Mary Frances Richardson of the Justice Department’s Tax Division and Assistant U.S. Attorney William R. Harris for the Western District of Texas are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.