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Wednesday 20 December 2023
Man Sentenced to Federal Prison for Assault on the Warm Springs Indian ReservationRead the Press Release
PORTLAND, Ore.—On December 19, 2023, a Warm Springs, Oregon man was sentenced to federal prison for brutally assaulting a woman with a piece of firewood inside a residence on the Warm Springs Indian Reservation.
Devere Ben Charley, 24, was sentenced to 40 months in federal prison and three years’ supervised release.
According to court documents, on November 29, 2022, officers from the Warm Springs Tribal Police Department (WSPD) responded to a report of an assault that had occurred inside a residence on the Warm Springs Indian Reservation. In the residence, the officers located an adult victim lying on a couch with severe injuries to her head, face, and hand. The victim told the officers that Charley had been drinking and had assaulted her. The victim’s daughter observed her injured mother while monitoring a home security camera online away from the residence. The daughter further observed Charley throw a piece of bloody firewood into a stove.
The adult victim was transported to a local hospital where she was treated for a broken nose, fractured arm, multiple lacerations, and a concussion. The victim later required a blood transfusion due to the significant blood loss from wounds on her head and face.
On December 6, 2022, a federal grand jury in Portland returned an indictment charging Charley with one count of assault resulting in serious bodily injury. Later, on February 8, 2023, a second charge, assault with a dangerous weapon, was added by superseding indictment.
On September 29, 2023, Charley pleaded guilty to one count of assault with a dangerous weapon.
This case was investigated by the FBI with assistance from WSPD. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
Man Sentenced to 90 Months in Prison for Selling Fentanyl that Killed St. Charles Mother of ThreeRead the Press Release
ST. LOUIS – A man who supplied the fentanyl that killed a St. Charles, Missouri mother, leaving her three young children alone for over 15 hours, was sentenced Wednesday to 90 months in prison.
U.S. District Judge Audrey E. Fleissig also ordered Valentino Terez Carpenter, 39, of Maryland Heights, to pay $8,665 in funeral expenses for the victim.
The victim was found dead on the couch in her home on June 21, 2022, with a capsule containing fentanyl nearby, after the cries of her children alerted a neighbor. The woman’s children, ages 2, 4 and one month, had been alone for at least 15 hours after their mother’s death.
Carpenter pleaded guilty in September to one count of distribution of fentanyl and admitted selling two capsules containing drugs to the victim for $10. He also admitted that the victim was killed by a fentanyl overdose.
On Wednesday, Judge Fleissig said it was “beyond dispute” that Carpenter sold fentanyl to the victim, and that the sale resulted in her death. Judge Fleissig also said that Carpenter knew that fentanyl was “extremely dangerous,” as is the sale of the drug. He knew people who had died and warned the victim not to split a pill that he sold her because it was so potent.
Judge Fleissig said Carpenter left the victim alone after knowing that she was nodding off due to the effects of the drug and knowing there was no one else to care for the children. She called it an “extremely, extremely tragic case.”
The case was investigated by the Drug Enforcement Administration, the St. Charles Police Department and the St. Charles County Regional Drug Task Force.
Man Sentenced for Fentanyl Drug Trafficking ConspiracyRead the Press Release
Acting United States Attorney Susan Lehr announced that Kelvin Baez-Adames, 32, of Bronx, New York, was sentenced December 20, 2023, in federal court in Omaha, Nebraska for his participation in a fentanyl drug conspiracy. United States District Judge Brian C. Buescher sentenced Baez-Adames to 120 months’ imprisonment. There is no parole in the federal system. After Baez-Adames release from prison, he will begin a 5-year term of supervised release.
From August 2021 to May 4, 2022, Baez-Adames and co-defendant Kiara Jimenez ran an online company to sell M-30 pills utilizing Bitcoin. The M-30 pills were counterfeit and contained fentanyl. The Drug Enforcement Administration in Omaha began its undercover operation after pills were seized in Nebraska with the moniker “THEMESSIAH11.”
An undercover address was utilized to purchase pills online from THEMESSIAH11. DEA purchased 60 blue pills later identified as fraudulent M-30 pills containing fentanyl. The pills were sent in a Crunch N’ Munch box to prevent detection. The DEA set up another purchase and the tracking number for the order was from the Bronx, New York. This package contained more fentanyl pills hidden in another Crunch N’ Munch box. Surveillance was conducted in the Bronx and codefendant Kira Jimenez was observed leaving the defendant’s apartment to deliver 10 packages. The packages were intercepted by DEA and all contained fentanyl inside Crunch N’ Munch boxes. On May 4, 2022, law enforcement executed a search warrant on the defendant’s apartment in the Bronx. Law enforcement seized fentanyl pills, drug paraphernalia and several cases of Crunch N’ Munch. Baez-Adames is responsible for one kilogram of fentanyl analogue.
Kiara Jimenez pled guilty to fentanyl drug conspiracy and will be sentenced on January 24, 2024.
This case was investigated by the Drug Enforcement Administration.
Man Pleads Guilty to Aggravated Sexual AbuseRead the Press Release
HUNTSVILLE, Ala. – A man pleaded guilty today to traveling to Alabama with intent to engage in a sexual act with a child younger than 12, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton L. Peeples.
Mark Anthony Bedwell, 53, of Lowestoft, England, pleaded guilty before U.S. District Court Judge Madeline H. Haikala to aggravated sexual abuse: crossing the state line with the intent to engage in a sexual act with a child under 12. According to court documents, Bedwell travelled from the United Kingdom to Huntsville, Alabama, in May 2013 and engaged in a sex act with a child in Madison County. The maximum penalty for the charge is life in prison.
Charles Dunnavant, 37, of Huntsville, Alabama, previously pled guilty on June 16, 2015, to the same charge in a related case before U.S. District Court Judge Madeline H. Haikala. Dunnavant was sentenced to 435 months imprisonment.
If you suspect or become aware of possible sexual exploitation of a child, please contact law enforcement. To alert the FBI Birmingham Office, call 205-326-6166. Reports can also be filed with the National Center for Missing & Exploited Children (NCMEC) or online at www.cybertipline.org.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The FBI investigated the case, along with the United Kingdom’s Metropolitan Police Service and the North Rhein-Westfalia Landeskriminalamt, a German law enforcement agency. The Huntsville Police Department assisted in the investigation. Assistant U.S. Attorneys Mary Stuart Burrell and John M. Hundscheid are prosecuting the case. Assistant U.S. Attorney J.B. Ward assisted with extradition efforts.
Man Accused of Phelps County Carjacking and Gun Store BurglaryRead the Press Release
ST. LOUIS – A Missouri man appeared in U.S. District Court in St. Louis Tuesday and pleaded not guilty to charges related to a carjacking and a gun store burglary in Phelps County, Missouri.
Martavious Jones, 19, of Phelps County, was indicted September 27 on one carjacking charge and a charge of stealing a firearm from a federally licensed dealer. Jones pleaded not guilty Tuesday.
The indictment accuses Jones of stealing a 2013 Nissan Altima on March 1, 2023, in Phelps County, Missouri. It also accuses him of stealing firearms from a Rolla gun store on Sept. 11, 2022.
A motion seeking to have Jones held in jail until trial says two men took four guns, including an AR-style pistol, as well as a large quantity of ammunition and firearm accessories from the store.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The carjacking charge carries a penalty of up to 15 years in prison, a fine of up to $250,000 or both prison and a fine. The stealing charge carries a penalty of up to five years in prison, a $250,000 fine, or both.
The Rolla Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Jennifer Szczucinski is prosecuting the case.
Luzerne County Man Sentenced to 66 Months’ Imprisonment for Fentanyl TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Casey Read, age 40, of Wilkes-Barre, Luzerne County, was sentenced on December 19, 2023, by U.S. District Court Judge Robert D. Mariani, to 66 months’ imprisonment on the charge of conspiracy to distribute more than 40 grams of fentanyl.
According to United States Attorney Gerard M. Karam, Read previously pleaded guilty and admitted to obtaining between 40 grams and 160 grams of fentanyl from coconspirators Eric Hill, age 34, of Plymouth, and Candacelee Ellis, age 37, also of Plymouth, which Read then distributed in the Luzerne County area between 2019 and 2020. Hill, Ellis and Read were indicted by a grand jury in August 2020 for fentanyl trafficking.
Previously, Judge Mariani sentenced Eric Hill to serve ten years’ imprisonment and Candacelee Ellis to serve 30 months’ imprisonment for conspiring to distribute fentanyl in the Luzerne County area.
The charge against the defendants resulted from an investigation conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Kingston Police Department, the Luzerne County Drug Task Force, and the Pennsylvania State Police. Assistant United States Attorney Robert J. O’Hara 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.
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Love Park Carjacker Sentenced to Ten YearsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Michael Boyer, 31, of Philadelphia, Pennsylvania was sentenced to 10 years in prison and three years of supervised release by United States District Court Judge Timothy J. Savage for carjacking.
On May 22, 2022, the defendant used a realistic-looking BB gun with a laser sight to carjack two men sitting in a car next to Love Park in Philadelphia. Evidence introduced at trial showed the defendant told the two men to leave the keys in the car and further stated “Do you want to get shot?” when one victim tried to grab a backpack. The victim identified the defendant, in part, because he was shirtless during the carjacking and had a large “Uptown” tattoo on his chest.
Only twelve hours later, Philadelphia Police officers located the defendant and his accomplice driving the stolen car in West Philadelphia. When officers tried to stop them, the two men led police on a high-speed chase that ended when the men crashed after striking a teenager on a bicycle. The two men were arrested after a foot chase following the crash.
“Today's sentencing sends a message to would be carjackers and reaffirms our ongoing commitment to keeping our citizens safe,” said U.S. Attorney Romero. "This carjacking at Love Park garnered a great deal of attention, and equally worthy of attention is the resulting ten-year sentence that will be served by Michael Boyer in federal prison. We will continue working with our partners and proudly serving as part of the joint carjacking task force led by the Philadelphia Police Department in making sure violent individuals are held accountable when they threaten the safety of the community.”
“The crimes committed by the defendant were reckless and dangerous. The defendant not only threatened an individual with bodily harm, but he also led the Police on a vehicle pursuit in which the defendant struck an innocent teenager riding their bicycle” said ATF Special Agent in Charge Eric DeGree. “I want to thank the Philadelphia Police Department and the United States Attorney’s office for their continuing support of the Carjacking Task Force and bringing the defendant to justice.”
The case was investigated by the Philadelphia Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and is being prosecuted by Special Assistant United States Attorney Brian Doherty and Assistant United States Attorney Christopher E. Parisi.
Lincoln Man Sentenced to 14 Years for Distributing MethamphetamineRead the Press Release
Acting United States Attorney Susan Lehr announced that Scott A. Berndt, 54, of Lincoln, Nebraska, was sentenced on December 20, 2023, in federal court in Lincoln for conspiracy to distribute methamphetamine. Senior United States District Court Judge John M. Gerrard sentenced Berndt to 14 years’ imprisonment. There is no parole in the federal system. After Berndt’s release from prison, he will begin a 5-year term of supervised release.
From November 2020 to May 2021, Berndt and others arranged to have large quantities of meth sent by mail to the Lincoln, Nebraska area. Postal records show at least ten shipments delivered to Lincoln which were believed to have contained meth, and which weighed between 1.69 pounds to over 11 pounds. Berndt and others then broke those shipments down into smaller quantities and resold the meth they received to others in Lincoln. Police also uncovered money transfer records where Berndt sent money to people in Arizona during that same period. Berndt pleaded guilty to his offense on April 17, 2023.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Justice Department and Consumer Financial Protection Bureau sue Texas-based developer and lender Colony Ridge for bait-and-switch land sales and predatory financingRead the Press Release
HOUSTON – The Justice Department and Consumer Financial Protection Bureau (CFPB) have sued Colony Ridge for operating an illegal land sales scheme and targeting tens of thousands of Hispanic borrowers with false statements and predatory loans.
“Today’s complaint alleges that Colony Ridge targeted Hispanic consumers with predatory loans, misled borrowers about the water, sewer and electrical infrastructure on its lots, and exploited language barriers by conducting most of its marketing in Spanish while offering important transaction documents only in English,” said Attorney General Merrick B. Garland. “Discrimination in lending harms families and neighborhoods for generations; it is wrong and has no place in our country. That is why I launched the Department’s Combating Redlining Initiative more than two years ago and why we remain steadfast in our commitment to continue this work.”
“Using 21st century social-media applications to target and mislead consumers, Colony Ridge set out to exploit something as old as America — an immigrant’s dream of owning a home,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas (SDTX). “As alleged in the complaint, Colony Ridge’s exploitative practice began with misleading advertising on platforms like TikTok and often ended with families facing economic ruin, no home, and shattered dreams. The SDTX, joined by our partners at the Justice Department’s Civil Rights Division and the CFPB, filed the complaint as a promise to work tirelessly to bring justice for the Hispanic families who fell prey to Colony Ridge’s alleged predatory lending practices and to send out a warning to the vulnerable: beware of lenders who use promises of easy financing to steal both nest-eggs and dreams.”
The lawsuit filed in federal district court alleges Colony Ridge sells unsuspecting families flood-prone land without water, sewer or electrical infrastructure, and that the company sets borrowers up to fail with loans they cannot afford. Roughly one-in-four Colony Ridge loans ends in foreclosure, after which the company repurchases the properties and sells them to new borrowers. The Justice Department and CFPB are seeking redress for borrowers Colony Ridge harmed and an immediate end to its illegal practices.
“Colony Ridge promised the American dream, but we allege that in reality, it has delivered a nightmare for thousands of hardworking Hispanic families who hoped to build their homes in the Terrenos Houston community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This lawsuit demonstrates our commitment to holding accountable those in the housing and financial industry who intentionally target and exploit homebuyers because they are Hispanic or don’t speak English well. Through our Combating Redlining Initiative, the Justice Department will aggressively continue to dismantle predatory, deceptive, and unfair lending practices to safeguard the rights of all who seek to buy a home.”
“The lawsuit filed in federal court by the CFPB and the Justice Department charges Colony Ridge with a slew of illegal misconduct and seeks to stop this set-up-to-fail scheme that has led thousands of families to lose their dreams of homeownership,” said CFPB Director Rohit Chopra. “Our investigation uncovered that Colony Ridge is baiting borrowers with lies, saddling families with predatory loans for homesites that the company knows have repeatedly flooded with raw sewage and lacked basic utility infrastructure.”
The lawsuit names as defendants three Texas-based Colony Ridge affiliate companies as well as Loan Originator Services, a nonbank mortgage company licensed to originate loans in Texas. Colony Ridge has developed more than 40,000 lots spread across an unincorporated area of Liberty County, approximately 30 miles northeast of Houston. Colony Ridge markets these subdivisions using the names “Terrenos Houston” and “Terrenos Santa Fe.”
According to the complaint, Colony Ridge targets Spanish-speaking borrowers. It advertises almost exclusively in Spanish, often in TikTok or other social media posts featuring, for example, national flags and regional music from Latin America. In these advertisements, Colony Ridge promises consumers the dream of homeownership with its own seller financing: an easy-to-obtain loan product that requires no credit check and only a small deposit.
The complaint further alleges Colony Ridge has lured tens of thousands of vulnerable Hispanic consumers into their predatory loan products. Foreclosure and property deed records from September 2019 through September 2022 show that Colony Ridge initiated foreclosures on at least 30% of seller-financed lots within just three years of the purchase date, with most loan failures occurring even sooner. Records also confirm that Colony Ridge accounted for more than 92% of all foreclosures recorded in Liberty County between 2017 and 2022.
Specifically, the complaint filed today alleges that Colony Ridge:
- Misleads borrowers about infrastructure on the lots it sells: Colony Ridge has falsely represented that lots in the Terrenos Houston subdivisions were sold with water, sewer and electrical infrastructure already in place. The complaint cites numerous advertisements including TikTok videos where the company makes claims like “Terrenos Houston tiene todos los servicios de ciudad por cada terreno” (“Terrenos Houston has all city services for each lot”). It is only after applicants pay a non-refundable deposit that Colony Ridge discloses the properties may not provide those services and makes that disclosure only in English.
- Sells lots that flood with rain and raw sewage: The complaint alleges that Colony Ridge employees fail to inform borrowers of flood risk when lots have repeatedly flooded in the past or falsely tells them the lots have not flooded. In fact, in parts of the Terrenos Houston subdivision, rain causes significant flooding causing raw sewage to run through or around borrowers’ property and damaging their personal belongings.
- Targets Hispanic consumers with predatory loans: Through direct-to-consumer marketing on websites, social media engagement, and telemarketing, Colony Ridge targets Hispanic consumers. Colony Ridge then exploits language barriers during its sales process and uses high-pressure sales tactics to push borrowers to obtain their loan product quickly. The loans have exorbitant interest rates. Between 2017 and 2021, interest rates on Colony Ridge’s loans ranged from between 10.9% to 12.9%, while a standard 20-year fixed rate loan averaged 2.35% to 4.05% during the same timeframe. And in extending the loan, Colony Ridge and Loan Originator Services did not collect information needed to determine if applicants can afford the loan.
- Churns through borrowers in a cycle of foreclosure: When families fall behind on payments and enter foreclosure, it allows Colony Ridge to “flip” the properties by repurchasing and reselling them, often at higher prices. Foreclosure and property deed records show that Colony Ridge flipped at least 40% of all the properties it sold between September 2019 and September 2022, selling approximately 8,237 properties twice, 3,267 properties three times and 2,067 properties four or more times in three years.
- Exploits language barriers at borrowers’ expense: While Colony Ridge conducts most of its marketing activities in Spanish, when it comes to the actual transaction it offers important documents only in English. Failing to offer borrowers accurate translations of contracts, deeds and other documents in the language in which it conducts the sales and exploiting borrowers’ limited English proficiency violates federal law.
Enforcement Action
The complaint alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Fair Housing Act (FHA). Under the FHA, the Justice Department has the authority to take enforcement action against real estate companies, lending institutions and other entities whose practices discriminate in residential real estate-related transactions, the availability of housing and housing-related services. The complaint also alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Equal Credit Opportunity Act (ECOA) and its implementing regulation, Regulation B. Both the Justice Department and CFPB have the authority to enforce ECOA. Additionally, the complaint alleges defendants’ deceptive acts and practices violate the Consumer Financial Protection Act of 2010 (CFPA) and the Interstate Land Sales Full Disclosure Act (ILSA) and its implementing regulations, Regulation K and Regulation J, all of which CFPB enforced.
The complaint seeks to stop Colony Ridge’s alleged unlawful conduct, provide relief for affected consumers and impose a civil penalty payable to the CFPB victims relief fund. If the defendants are found liable, the amount of any restitution will be determined in the litigation in federal court.
Anyone who believes they have been harmed by the practices of Colony Ridge Development LLC, Colony Ridge BV LLC, Colony Ridge Land LLC and Loan Originator Services LLC should call the Justice Department’s Housing Discrimination Hotline at 1-833-591-0291, press 1 for English, then 3 for fair lending and then 1 for Colony Ridge Lawsuit to leave a message. For the Spanish Hotline, callers should press 2 for Spanish, then 3 for fair lending and then 1 for Colony Ridge Lawsuit to leave a message. Individuals can also send an email to [email protected].
This lawsuit is a part of the Justice Department’s Combating Redlining Initiative. Redlining is the illegal practice where lenders deprive communities of color from equal access to loans and lending opportunities. Reverse redlining occurs when lenders target communities of color with inflated interest rates and/or other unjust lending terms. Both practices prevent communities of color from achieving sustainable homeownership and both deny these communities the opportunity to build wealth.
The Combating Redlining Initiative is the Justice Department’s most aggressive and coordinated enforcement effort to address all forms of redlining. Since 2021, the Justice Department’s Combating Redlining Initiative has secured over $100 million and 10 settlement agreements with banks and mortgage lending institutions to provide credit opportunities to communities of color in Houston; Memphis, Tennessee; Philadelphia; Camden, New Jersey; Wilmington, Delaware; Newark, New Jersey; Los Angeles; Columbus, Ohio; Tulsa, Oklahoma; Rhode Island; and Jacksonville, Florida. The Department has partnered with U.S. Attorneys’ Offices, federal financial regulatory agencies, including the CFPB and state Attorneys General offices to enforce federal fair lending laws that prohibit redlining. This lawsuit is the first reverse redlining action under the initiative.
Read today’s complaint.
The Justice Department’s website has resources about fair lending. The Department accepts complaints of discrimination at www.civilrights.justice.gov/. Fair housing and lending discrimination complaints may also be sent to [email protected].
CFPB’s website has resources about credit discrimination and mortgages. Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372). Employees of companies who they believe their company has violated federal consumer financial laws are encouraged to send information about what they know to [email protected].
Justice Department and Consumer Financial Protection Bureau Sue Texas-Based Developer and Lender Colony Ridge for Bait-and-Switch Land Sales and Predatory FinancingRead the Press Release
The Justice Department and Consumer Financial Protection Bureau (CFPB) today sued Colony Ridge, a Texas-based developer and lender, for operating an illegal land sales scheme and targeting tens of thousands of Hispanic borrowers with false statements and predatory loans.
“Today’s complaint alleges that Colony Ridge targeted Hispanic consumers with predatory loans, misled borrowers about the water, sewer, and electrical infrastructure on its lots, and exploited language barriers by conducting most of its marketing in Spanish while offering important transaction documents only in English,” said Attorney General Merrick B. Garland. “Discrimination in lending harms families and neighborhoods for generations, it is wrong, and it has no place in our country. That is why I launched the Department’s Combating Redlining Initiative more than two years ago and why we remain steadfast in our commitment to continue this work.”
The lawsuit filed in federal district court alleges Colony Ridge sells unsuspecting families flood-prone land without water, sewer, or electrical infrastructure, and that the company sets borrowers up to fail with loans they cannot afford. Roughly one-in-four Colony Ridge loans ends in foreclosure, after which the company repurchases the properties and sells them to new borrowers. The Justice Department and CFPB are seeking redress for borrowers harmed by Colony Ridge and an immediate end to its illegal practices.
“Colony Ridge promised the American dream, but we allege that in reality, it has delivered a nightmare for thousands of hardworking Hispanic families who hoped to build their homes in the Terrenos Houston community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This lawsuit demonstrates our commitment to holding accountable those in the housing and financial industry who intentionally target and exploit homebuyers because they are Hispanic or don’t speak English well. Through our Combating Redlining Initiative, the Justice Department will aggressively continue to dismantle predatory, deceptive, and unfair lending practices to safeguard the rights of all who seek to buy a home.”
“The lawsuit filed in federal court by the CFPB and the Justice Department charges Colony Ridge with a slew of illegal misconduct and seeks to stop this set-up-to-fail scheme that has led thousands of families to lose their dreams of homeownership,” said CFPB Director Rohit Chopra. “Our investigation uncovered that Colony Ridge is baiting borrowers with lies, saddling families with predatory loans for homesites that the company knows have repeatedly flooded with raw sewage and lacked basic utility infrastructure.”
“Using 21st century social-media applications to target and mislead consumers, Colony Ridge set out to exploit something as old as America — an immigrant’s dream of owning a home,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas (SDTX). “As alleged in the complaint, Colony Ridge’s exploitative practice began with misleading advertising on platforms like TikTok and often ended with families facing economic ruin, no home, and shattered dreams. The SDTX, joined by our partners at the Justice Department’s Civil Rights Division and the CFPB, filed the complaint as a promise to work tirelessly to bring justice for the Hispanic families who fell prey to Colony Ridge’s alleged predatory lending practices and to send out a warning to the vulnerable: beware of lenders who use promises of easy financing to steal both nest-eggs and dreams.”
The lawsuit names as defendants three Texas-based Colony Ridge affiliate companies, as well as Loan Originator Services, a nonbank mortgage company licensed to originate loans in Texas. Colony Ridge has developed more than 40,000 lots spread across an unincorporated area of Liberty County, Texas, approximately 30 miles northeast of Houston. Colony Ridge markets these subdivisions using the names “Terrenos Houston” and “Terrenos Santa Fe.”
According to the complaint, Colony Ridge targets Spanish-speaking borrowers: it advertises almost exclusively in Spanish, often in TikTok or other social media posts featuring, for example, national flags and regional music from Latin America. In these advertisements, Colony Ridge promises consumers the dream of homeownership with its own seller financing: an easy-to-obtain loan product that requires no credit check and only a small deposit.
The complaint further alleges that Colony Ridge has lured tens of thousands of vulnerable Hispanic consumers into their predatory loan products. Foreclosure and property deed records from September 2019 through September 2022 show that Colony Ridge initiated foreclosures on at least 30% of seller-financed lots within just three years of the purchase date, with most loan failures occurring even sooner. Records also confirm that Colony Ridge accounted for more than 92% of all foreclosures recorded in Liberty County between 2017 and 2022.
Specifically, the complaint filed today alleges that Colony Ridge:
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Misleads borrowers about infrastructure on the lots it sells: Colony Ridge has falsely represented that lots in the Terrenos Houston subdivisions were sold with water, sewer, and electrical infrastructure already in place. The complaint cites numerous advertisements, including TikTok videos where the company makes claims like “Terrenos Houston tiene todos los servicios de ciudad por cada terreno” (“Terrenos Houston has all city services for each lot”). It is only after applicants pay a non-refundable deposit that Colony Ridge discloses the properties may not provide those services and makes that disclosure only in English.
-
Sells lots that flood with rain and raw sewage: The complaint alleges that Colony Ridge employees fail to inform borrowers of flood risk when lots have repeatedly flooded in the past, or falsely tells them the lots have not flooded. In fact, in parts of the Terrenos Houston subdivision, rain causes significant flooding, causing raw sewage to run through or around borrowers’ property, and damaging their personal belongings.
-
Targets Hispanic consumers with predatory loans: Through direct-to-consumer marketing on websites, social media engagement, and telemarketing, Colony Ridge targets Hispanic consumers. Colony Ridge then exploits language barriers during its sales process and uses high-pressure sales tactics to push borrowers to obtain their loan product quickly. The loans have exorbitant interest rates. Between 2017 and 2021, interest rates on Colony Ridge’s loans ranged from between 10.9% to 12.9%, while a standard 20-year fixed rate loan averaged 2.35% to 4.05% during the same timeframe. And in extending the loan, Colony Ridge and Loan Originator Services did not collect information needed to determine if applicants can afford the loan.
-
Churns through borrowers in a cycle of foreclosure: When families fall behind on payments and enter foreclosure, it allows Colony Ridge to “flip” the properties by repurchasing and reselling them, often at higher prices. Foreclosure and property deed records show that Colony Ridge flipped at least 40% of all the properties it sold between September 2019 and September 2022, selling approximately 8,237 properties twice, 3,267 properties three times, and 2,067 properties four or more times in three years.
-
Exploits language barriers at borrowers’ expense: While Colony Ridge conducts most of its marketing activities in Spanish, when it comes to the actual transaction it offers important documents only in English. Failing to offer borrowers accurate translations of contracts, deeds, and other documents in the language in which it conducts the sales and exploiting borrowers’ limited English proficiency violates federal law.
Enforcement Action
The complaint alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Fair Housing Act (FHA). Under the FHA, the Justice Department has the authority to take enforcement action against real estate companies, lending institutions, and other entities whose practices discriminate in residential real estate-related transactions, the availability of housing, and housing-related services. The complaint also alleges that defendants unlawfully discriminated against applicants on the basis of their race or national origin in violation of the Equal Credit Opportunity Act (ECOA), and its implementing regulation, Regulation B. Both the Justice Department and CFPB have the authority to enforce ECOA. Additionally, the complaint alleges defendants’ deceptive acts and practices violate the Consumer Financial Protection Act of 2010 (CFPA) and the Interstate Land Sales Full Disclosure Act (ILSA) and its implementing regulations, Regulation K and Regulation J, all of which is enforced by CFPB.
The complaint seeks to stop Colony Ridge’s alleged unlawful conduct, provide relief for affected consumers, and impose a civil penalty payable to the CFPB victims relief fund. If the defendants are found liable, the amount of any restitution will be determined in the litigation in federal court.
Anyone who believes they have been harmed by the practices of Colony Ridge Development LLC, Colony Ridge BV LLC, Colony Ridge Land LLC, and Loan Originator Services LLC should call the Justice Department’s Housing Discrimination Hotline at 1-833-591-0291, press 1 for English, then 3 for fair lending, and then 1 for Colony Ridge Lawsuit to leave a message. For the Spanish Hotline, callers should press 2 for Spanish, then 3 for fair lending, and then 1 for Colony Ridge Lawsuit to leave a message. Individuals can also send an email to [email protected].
This lawsuit is a part of the Justice Department’s Combating Redlining Initiative. Redlining is the illegal practice where lenders deprive communities of color from equal access to loans and lending opportunities. Reverse redlining occurs when lenders target communities of color with inflated interest rates and/or other unjust lending terms. Both practices prevent communities of color from achieving sustainable homeownership and both deny these communities the opportunity to build wealth.
The Combating Redlining Initiative is the Justice Department’s most aggressive and coordinated enforcement effort to address all forms of redlining. Since 2021, the Justice Department’s Combating Redlining Initiative has secured over $100 million and 10 settlement agreements with banks and mortgage lending institutions to provide credit opportunities to communities of color in Houston; Memphis, Tennessee; Philadelphia; Camden, New Jersey; Wilmington, Delaware; Newark, New Jersey; Los Angeles; Columbus, Ohio; Tulsa, Oklahoma; Rhode Island; and Jacksonville, Florida. The Department has partnered with U.S. Attorneys’ Offices, federal financial regulatory agencies, including the CFPB, and state Attorneys General offices to enforce federal fair lending laws that prohibit redlining. This lawsuit is the first reverse redlining action under the initiative.
The Justice Department’s website has resources about fair lending. The Department accepts complaints of discrimination at www.civilrights.justice.gov/. Fair housing and lending discrimination complaints may also be sent to [email protected].
CFPB’s website has resources about credit discrimination and mortgages. Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372). Employees of companies who they believe their company has violated federal consumer financial laws are encouraged to send information about what they know to [email protected].
colony_ridge_complaint.pdf-
Justice Department Announces Terrorism Charges Against High-Ranking Hezbollah Member Who Helped Plan 1994 Bombing in Buenos Aires, ArgentinaRead the Press Release
Samuel Salman El Reda Participated in Terrorist Operations for Hezbollah in South America, Asia and Lebanon, and Helped Plan and Execute Hezbollah’s July 18, 1994, Bombing of the Asociación Mutual Israelita Argentina Building in Buenos Aires, Killing 85 People
A Manhattan federal court today unsealed terrorism charges against Samuel Salman El Reda, aka Samuel Salman El Reda El Reda, Salman Raouf Salman, Sulayman Rammal, Salman Ramal, Salman Raouf Salman, and Hajj, 58, a dual Colombian-Lebanese citizen and member of Hezbollah’s Islamic Jihad Organization (IJO), in connection with El Reda’s alleged role leading decades of terrorist activity on behalf of Hezbollah and the IJO.
El Reda is charged with, among other offenses, conspiring to provide and providing material support to Hezbollah, a designated foreign terrorist organization. El Reda is based in Lebanon and remains at large.
“Nearly three decades ago, long-time Hezbollah terrorist operative Samuel Salman El Reda allegedly helped plan and execute the heinous attack on a Buenos Aires Jewish community center that murdered 85 innocent people and injured countless others,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “This indictment serves as a message to those who engage in acts of terror: that the Justice Department’s memory is long, and we will not relent in our efforts to bring them to justice.”
“As alleged, for decades, Samuel Salman El Reda has led terrorist operations on behalf of the Islamic Jihad Organization of Hezbollah, including a 1994 bombing in Buenos Aires that massacred 85 innocent victims,” said U.S. Attorney Damian Williams for the Southern District of New York. “The career prosecutors of this office have not forgotten the pain and suffering that El Reda has allegedly caused, and we thank the dedication of our law enforcement partners for pursuing this important case. The Southern District of New York continues to be a leader in prosecuting violent terrorists and terrorist organizations, and we will not rest until those who create chaos and destruction are brought to justice.”
“While it’s been nearly 30 years since this horrific terrorist attack, the FBI and our partners throughout the U.S. government are committed to delivering justice for the victims’ families,” said Executive Assistant Director Larissa L. Knapp of the FBI’s National Security Branch. “Our reach and our memory are long, as this investigation shows. The charges unsealed today are a result of the hard work and determination of the men and women of the FBI and Justice Department, and the assistance of our international partners in law enforcement.”
According to court documents, Hezbollah is a Lebanon-based Shia Islamic organization with political, social and terrorist components. Hezbollah was founded in the 1980s with support from Iran after the 1982 Israeli invasion of Lebanon, and its mission includes establishing a fundamentalist Islamic state in Lebanon. Since Hezbollah’s formation, the organization has been responsible for numerous terrorist attacks that have killed hundreds, including U.S. citizens and military personnel. In 1997, the Department of State designated Hezbollah as a foreign terrorist organization, pursuant to Section 219 of the Immigration and Nationality Act, and it remains so designated today. In 2001, pursuant to Executive Order 13224, the Department of the Treasury designated Hezbollah as a Specially Designated Global Terrorist entity. In 2010, State Department officials described Hezbollah as the most technically capable terrorist group in the world and a continued security threat to the United States.
The IJO, which is also known as the External Security Organization and “Unit 910,” is a component of Hezbollah responsible for the planning and coordination of intelligence, counterintelligence and terrorist activities on behalf of Hezbollah outside of Lebanon. In July 2012, an IJO operative detonated explosives on a bus transporting Israeli tourists in the vicinity of an airport in Burgas, Bulgaria, killing six people and injuring 32 others. Law enforcement authorities have disrupted several other IJO attack-planning operations around the world, including through the arrest of an IJO operative surveilling Israeli targets in Cyprus in 2012, the seizure of bomb-making precursor chemicals in Thailand in 2012, the seizure of similar chemicals in May 2015 in connection with the arrest of another IJO operative, and the seizure of approximately three tons of ammonium nitrate in London in the fall of 2015. Since June 2017, multiple IJO operatives have been arrested, charged and convicted in the Southern District of New York for terrorism-related offenses.
Beginning in at least 1993, El Reda has led terrorist operations on behalf of Hezbollah and the IJO in South America, Asia and Lebanon. El Reda was responsible for, among other things, helping to plan and execute the July 18, 1994, bombing of the Asociaión Mutual Israelita Argentina (AMIA) building in Buenos Aires, which killed 85 people and injured hundreds more. El Reda’s activities for Hezbollah in connection with the AMIA bombing included relaying information to IJO operatives that was used for planning and executing the attack. In the decades following the attack, El Reda continued to engage in terrorist activity on Hezbollah’s behalf by recruiting, training and managing IJO operatives around the world. El Reda deployed IJO operatives to Thailand, Panama and Peru, among other places, to help Hezbollah and the IJO conduct pre-operational surveillance in support of attack planning and stockpile explosive precursor chemicals, including ammonium nitrate. For example, in or about May 2009, El Reda instructed an IJO operative to travel to Thailand to help destroy a cache of ammonium nitrate and other explosive materials that the IJO believed was under law enforcement surveillance. In or about February 2011, El Reda instructed an IJO operative to travel to Panama to surveil the Panama Canal and Embassies maintained by the United States and Israel, and in or about January 2012, El Reda instructed an IJO operative to travel again to Panama to conduct additional pre-operational surveillance.
El Reda is charged with: (i) providing material support to a designated foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (ii) conspiring to provide material support to a designated foreign terrorist organization, which carries a maximum penalty of 20 years in prison; (iii) aiding and abetting the receipt of military-type training from a designated foreign terrorist organization, which carries a maximum penalty of 10 years in prison or a fine; and (iv) conspiring to receive military-type training from a designated foreign terrorist organization, which carries a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the New York Police Department, is investigating the case. The Justice Department’s Office of International Affairs provided valuable assistance.
Assistant U.S. Attorneys Jacob H. Gutwillig and Jason A. Richman for the Southern District of New York are prosecuting the case, with valuable assistance from Deputy Chief Larry Schneider of the National Security Division’s Counterterrorism Section.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
El Reda IndictmentJury Finds District Man Guilty of Second-Degree Murder in 2018 Stabbing in SoutheastRead the Press Release
WASHINGTON – Marquette Jordan, 32, of Washington, D.C., was found guilty by a jury on December 19, 2023 of second-degree murder while armed and other charges in the April 2018 fatal stabbing of 48-year-old Ivan Lynch in Southeast D.C., announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD). The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Rainey Brandt will sentence Jordan on Friday March 1, 2024.
According to the government’s evidence, on April 30, 2018, the victim, Ivan Lynch, who had just attended a birthday celebration for himself, left the party and was going to meet up with a friend at his apartment. On the way to the friend’s apartment, Mr. Lynch picked up the defendant Marquette Jordan, the defendant’s girlfriend, the girlfriend’s two young children, and a childhood friend of the defendant.
Once inside the apartment, a verbal altercation occurred between Jordan and his girlfriend in front of her two young children. Mr. Lynch intervened and reportedly told the defendant that that is not how we treat women. Jordan and Mr. Lynch then engaged in a verbal dispute resulting in a physical fight between the two men inside the apartment. During the fight, Jordan grabbed a butcher knife from the kitchen and stabbed Mr. Lynch once in the shoulder, twice in the heart, and three times in the back. After stabbing Mr. Lynch, Jordan then continued to beat on his girlfriend, threatened to kill her, too, and charged at her with a knife. The girlfriend grabbed a pillow and fled the apartment without her shoes, and leaving behind her minor children until she returned later that day.
The defendant went through the victim’s pockets before leaving the apartment. School surveillance captured Jordan on walking with the two children after the homicide. He was stopped outside by MPD officers shortly after leaving the apartment and law enforcement officers found Mr. Lynch’s keys and his blood on Jordan’s pants and shirt. The murder weapon, the butcher knife, was never recovered. Officers also found Mr. Lynch’s cell phone discarded in an area where the defendant was observed walking, according to surveillance footage in the area. Mr. Lynch’s wallet was mailed from a nearby school to the address on his driver’s license.
This case was investigated by the Metropolitan Police Department. This case was prosecuted and tried by Assistant U.S. Attorneys Natalie M. Hynum and Omeed A. Assefi of the U.S. Attorney’s Office for the District of Columbia.
Jury Convicts Serial Rapist of Two Counts of Kidnapping with Intent to Commit a Sexual AssaultRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge for the FBI Albuquerque Office, announced today that on December 15, 2023, a federal jury returned two guilty verdicts against Timothy Bachicha, 41 of Albuquerque, after two and a half hours of deliberation. The jury convicted Bachcica of two counts of Kidnapping with Intent to Commit a Sexual Assault. Judge Matthew L. Garcia presided.
A federal grand jury issued a first indictment against Bachicha with Count 1 on July 25, 2019, and added Count 2 on January 29, 2020. According to evidence presented at trial and other publicly available court records, on October 30, 2018, Bachicha observed Jane Doe 1 walking down a residential street in Northeast Albuquerque. He stopped his vehicle and asked her if she wanted a ride. When Jane Doe 1 declined, he forcibly abducted her, pulling her into his vehicle by her neck. Once in the vehicle, Bachicha drove from the area of San Mateo and Indian School to a dirt lot near the UNM Cancer Center just east of Interstate 25. There, Bachicha held Jane Doe 1 for twenty hours while he strangled and sexually assaulted her. He released her the early afternoon of October 31, 2018, after receiving alerts that the battery on his court-ordered GPS monitor was dying.
Following news coverage of this crime, Jane Doe 2 came forward to disclose that, weeks earlier, she had been held for sixteen hours by Bachicha in a semi-truck in Albuquerque near Interstate 25 and Comanche Road. During the attack, Bachicha strangled Jane Doe 2 and sexually assaulted her. Bachicha’s GPS monitor confirmed his presence at the location and time described by Jane Doe 2.
Both women fought Bachicha during their attacks, and both testified against him in trial. The jury also heard from two other women who suffered similar attacks by Bachicha in 2017 and 2018.
“Bachicha targeted vulnerable women, hoping that the public would not believe them or care,” said U.S. Attorney Uballez. “But everyone deserves to be treated with dignity. We believe survivors of sexual assault, no matter their station in life, and will fight for the safety of the least of our brothers and sisters. These four women, some of whom were targeted because they were sex workers, courageously testified against their abuser in open court, and in doing so protected others from Bachicha’s serial sexual violence. These women stood up for each other, and for all of us, and for that have earned our respect and gratitude.”
“The FBI depends on our partnerships to help us protect communities,” said FBI Special Agent in Charge Raul Bujanda. “We will continue to work with our partners at every level to take those responsible for such heinous crimes off our streets.”
Bachicha will remain in custody pending sentencing, which has not been scheduled. At sentencing, Bachicha faces up to two life sentences.
The Federal Bureau of Investigation adopted and continued the investigation of this case following extensive investigation by the Albuquerque Police Department, with assistance from the Bernalillo County District Attorney’s Office and the New Mexico State Probation and Parole Office. Assistant United States Attorneys Letitia Carroll Simms and Sarah J. Mease are prosecuting the case.
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Indictment Charges District Man with First-Degree Murder and Conspiracy in December 2022 Shooting in Northeast D.C.Read the Press Release
WASHINGTON – Jajuan Gripper, 21, of Washington, D.C., was charged by indictment on December 20, 2023, for the December 20, 2022 murder of 34-year-old Rynell Bradford, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith of the Metropolitan Police Department (MPD).
The indictment charges Gripper with conspiracy, first-degree premeditated murder while armed, possession of a firearm during a crime of violence, and carrying a pistol without a license.
According to the government’s evidence, in the evening on Tuesday, December 20, 2022, Gripper and two unindicted co-conspirators followed Bradford out of an apartment building in Northeast Washington, D.C. The three suspects then opened fire on Bradford as he ran away from them down a public street in a residential neighborhood. Gripper and his co-conspirators fired a total of at least 19 shots, striking Bradford once in the back of the head. Bradford was pronounced dead at the scene.
Gripper was arrested in March 2023 and has been detained pending trial since his arrest.
This case is being investigated by members of MPD’s Homicide Branch. The case is being prosecuted by Assistant U.S. Attorney Charles R. Jones.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indictment Charges District Man in the Murder of 31-Year-Old Tourist Inside Her Ivy City Hotel RoomRead the Press Release
WASHINGTON – George L. Sydnor, Jr., 44 of Washington, D.C., was indicted earlier today by a D.C. Superior Court Grand Jury on several felony charges stemming from the stabbing murder of 31-year-old Christy Bautista on March 31, 2023, inside her room in the Ivy City Hotel, in Northeast D.C., announced U.S. Attorney Matthew M. Graves.
A five-count indictment charges Sydnor with premeditated first degree murder while armed; burglary while armed; first degree felony murder while armed burglary); kidnapping while armed; first degree felony murder while armed (kidnapping). The indictment also charges an aggravating circumstance enhancement as to all five counts, finding that the offenses committed were “especially heinous, atrocious or cruel.” Sydnor is also charged with committing these crimes while he was on release in another criminal case.
An arraignment on the indictment is scheduled for January 4, 2024, at 9:30 am, in Courtroom 301 before the Honorable Judge Robert Okun.
This case was investigated by the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office for the District of Columbia. The case was prosecuted by Assistant United States Attorney Sarah Santiago.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
Hudson County Man Sentenced to 70 Months in Prison for Soliciting and Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 70 months in prison for soliciting victims online to send images and videos of child sexual abuse and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.
Erick Solis, 25, previously pleaded guilty before retired U.S. District Judge Kevin McNulty to an information charging him with one count of solicitation of child pornography and one count of possession of child pornography. U.S. District Judge Julien X. Neals imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
From July 2020 to February 2021, Solis used a social media application to engage victims in sexually explicit conversations. Solis requested that both minor victims take sexually explicit photographs and videos of themselves and send them to him.
In addition to the prison term, Judge Neals sentenced Solis to five years of supervised release.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy, in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Criminal Division of the United States Attorney’s Office in Newark.
Guaynabo Registered Sex Offender Arrested for Receiving and Possessing Child Exploitation MaterialsRead the Press Release
SAN JUAN, Puerto Rico – On December 18, 2023, HSI San Juan special agents assigned to the Puerto Rico Crimes Against Children Task Force (PRCACTF) arrested Marcelino Resto Colón, a 68-year-old male from Guaynabo, who was previously convicted for lascivious acts, and is a registered sex offender in Puerto Rico.
According to court documents, from June 2022 through July 2022, Resto Colón used his computer and cellular phone to receive one or more images of child pornography via the internet depicting minors engaging in sexually explicit conduct. Also, from June 2022 through May 30, 2023, the defendant possessed one or more images and videos which contained images of child pornography. The indictment also states that prior to committing the alleged offenses, Resto Colón was convicted on or about September 12, 2003, in Puerto Rico state court, for abusive sexual conduct involving a minor.
“Those who engage in child exploitation and possess child sexual abuse material will be held accountable for their heinous conduct,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. “I commend the prosecution team and our law enforcement partners who continue working tirelessly to ensure that these defendants are be held accountable for their crimes.”
HSI San Juan’s Special Agent in Charge Rebecca González-Ramos stated: “If the allegations presented in this case are true, we are facing an individual who does not demonstrate any regret for his actions. Let this case demonstrates HSI’s commitment to thoroughly investigate these crimes and assure they are sustained in court and proven beyond a reasonable doubt.”
Assistant United States Attorney Ginette L. Milanes of the Child Exploitation and Immigration Unit is prosecuting the case.
If convicted, defendant faces a sentence of at least 15 years up to 40 years of imprisonment for receipt of child exploitation material; and at least10 years up to 20 years of imprisonment for possession of child pornography. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
For more information about HSI’s efforts to protect children from sexual predators, visit https://www.ice.gov/topics/iGuardians; and to report suspicious activities call 787-729-6969.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. 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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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About Homeland Security Investigations
HSI is the principal investigative arm of the U.S. Department of Homeland Security (DHS), responsible for investigating transnational crime and threats, specifically those criminal organizations that exploit the global infrastructure through which international trade, travel, and finance move. HSI’s workforce of more than 8,700 employees consists of more than 6,000 special agents assigned to 237 cities throughout the United States, and 93 overseas locations in 56 countries. HSI’s international presence represents DHS’s largest investigative law enforcement presence abroad and one of the largest international footprints in U.S. law enforcement.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Two Florida Residents Charged with Money Laundering Conspiracy
Denise Webley, 40, Tamarac, Florida, and Julio Madruga Rosa, 51, Gulf Stream, Florida are charged with participating in a money laundering conspiracy. The indictment alleges that they conspired with others to conduct financial transactions involving the proceeds of an unlawful activity, specifically wire fraud. The indictment alleges that the defendants maintained bank accounts designed to collect and funnel cash proceeds from unlawful activities, and that Webley held Account A and Madruga Rosa held Account B. The indictment further alleges that Webley received a weekly payment for maintaining Account A, and Madruga Rosa received a percentage of the funds laundered through Account B as payment.
The indictment alleges that in November and December 2020, unknown fraud perpetrators used false pretenses to convince employees of businesses in the Western District of Wisconsin and elsewhere, to collect and deliver the businesses’ cash-on-hand to couriers who the fraud perpetrators misrepresented were authorized by the business to receive the funds. The indictment alleges that as part of the conspiracy, in December 2020 in Rib Mountain, Wisconsin, two couriers collected $242,980 in currency from an employee of a retail store. The indictment further alleges that over $233,000 of the fraud proceeds were deposited into Account A, almost immediately were electronically transferred into Account B, and then subsequently transferred out of the United States.
The money laundering charges against Webley and Madruga Rosa are the result of an investigation by the U.S. Department of Homeland Security – Homeland Security Investigations and the Federal Bureau of Investigation. The investigation of the fraud scheme was conducted by these two agencies and the Merrill, Wausau, Everest Metropolitan, Stevens Point, and West Allis Police Departments, the Marathon County Sheriff’s Office, with assistance from the Marathon County District Attorney’s Office. Assistant U.S. Attorney Meredith P. Duchemin is handling this case.
Two Face Charges Related to Contraband in Federal Prison
James Arthur Mallett, 40, formerly of Minneapolis, Minnesota, is charged with possessing a prohibited object while an inmate the Federal Correctional Institution at Oxford, Wisconsin. The indictment alleges that on August 4, 2023, Mallett possessed strips containing Buprenorphine, a narcotic drug. Imogene R. Lawson, 60, Chicago, Illinois, is charged with providing Mallett with the strips containing Buprenorphine on that day.
If convicted, Mallett and Lawson each face a maximum penalty of 20 years in federal prison. The charges against them are the result of an investigation by the Bureau of Prisons and the Federal Bureau of Investigation. Assistant U.S. Attorney William Levins is handling the prosecution.
Gibson Woman Sentenced in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that FLORENCE RANDLE (“F. RANDLE”), age 72, of Gibson, Louisiana, was sentenced on December 13, 2023 after previously pleading guilty to Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371.
According to court records, F. RANDLE recruited and directed passengers to participate in staged automobile collisions with tractor-trailers on May 17, 2017 and June 6, 2017. The passengers in these collisions filed fraudulent lawsuits that falsely claimed the tractor-trailers were at fault. F. RANDLE, and her co-conspirators, coordinated with others, including attorney, Patrick Keating, to arrange the staged collisions.
U.S. District Court Judge Jane Triche Milazzo sentenced RANDLE to serve 24 months of probation. RANDLE was ordered to pay $63,508.00 in restitution and a mandatory special assessment fee of $100.00.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, the Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria M. Carboni, Brian M. Klebba, Chief of the Financial Crimes Unit, Assistant U.S. Attorneys’ Maria M. Carboni, Edward Rivera, and former Assistant U.S. Attorney Brandon S. Long, all of the Financial Crimes Unit.
Georgian Sentenced for Armed Drug Trafficking with Machine “Ghost” GunRead the Press Release
COLUMBUS, Ga. – A Columbus resident with a criminal history was sentenced to serve more than 15 years in prison for federal gun and drug offenses, including possessing a privately-made, untraceable machine gun.
Quintavius Harrow aka “Cootie,” 31, of Columbus, Georgia, was sentenced to serve 189 months in prison to be followed by five years of supervised release by U.S. District Judge Clay Land on Dec. 19. Harrow pleaded guilty to one count of possession of a firearm by a convicted felon, one count of possession with intent to distribute methamphetamine, one count of possession of ammunition by a convicted felon and one count of illegal possession of a machine gun on Aug. 15. Harrow is not eligible for parole.
“Quintavius Harrow carried a self-made and untraceable machine gun—a so-called ‘ghost gun’—while distributing methamphetamine, a dangerous combination for the Columbus community,” said U.S. Attorney Peter D. Leary. “Combating gun violence and preventing ghost guns from hitting our streets remains a top priority for the U.S. Attorney’s Office and our law enforcement partners.”
“The FBI, in collaboration with our law enforcement partners, are committed to the safety and security of our community,” said Rich Bilson, Senior Supervisory Resident Agent of FBI Atlanta’s Columbus office. “This plea removes a dangerous career criminal from our streets and lands him in federal prison, without the opportunity for parole.”
“This violent drug trafficker can no longer distribute dangerous drugs, such as methamphetamine, as he now faces the consequences for his poor choices,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.
"Quintavius Harrow's possession of a privately-made, untraceable machine gun underscores the urgent need to address the rapid reproduction of such dangerous weapons,” said Columbus Police Chief Stoney Mathis. “This case exemplifies our commitment to public safety and collaborative efforts to combat violent crime. We remain dedicated to our partnership with federal and local agencies and community programs in reducing these threats."
“We will continue to work in collaboration with all law enforcement partners to remove these types of threats from our community for a safer Columbus,” said Muscogee County Sheriff Greg Countryman.
According to court documents, FBI and DEA conducted a controlled purchase of methamphetamine from Harrow using a confidential source (CS) on March 18, 2022. During the transaction, Harrow was filmed in possession of an AR-15 styled pistol and sold the CS two bags containing a total of 498 grams of methamphetamine. On April 26, 2022, Muscogee County Sheriff’s Office (MCSO) Drug and Gang Task force agents executed a search warrant at a trap house located at 813 Coolidge Avenue in Columbus, where Harrow was observed selling methamphetamine to the CS the month prior. Harrow was in the home along with other individuals. Law enforcement found a variety of illegal drugs and several firearms throughout the house. Notably, in a back bedroom, officers located the same AR-15 style pistol Harrow carried on March 18. With no known manufacturer or visible serial number, the AR-15 style pistol had a large capacity magazine and 30 rounds of ammunition. FBI examined the AR-15 style pistol and determined it was a “ghost gun” equipped with an auto sear, which converted the firearm to a machine gun. Ghost guns are untraceable firearms assembled by private individuals from firearm components.
Prior to these incidents, on March 6, 2020, Columbus Police Department (CPD) Special Operation’s unit officers were surveilling the area of Elizabeth Canty Apartments. Officers observed several people standing near a vehicle, including Harrow. Upon approach by officers, Harrow began walking away and then discarded a yellow container containing methamphetamine and a stolen HK 9mm, semi-automatic pistol with an extended magazine. Harrow was taken into custody with a digital scale with marijuana residue and $436 cash in his pocket.
Harrow has a criminal history for robbery by intimidation in Muscogee Co., Georgia, Superior Court and use of a gun with an altered identification mark in Chattahoochee County, Georgia, Superior Court. It is illegal for a convicted felon to possess a firearm.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by FBI, DEA, the Muscogee Co. Sheriff’s Office and the Columbus Police Department, with assistance from GBI.
Assistant U.S. Attorney Christopher Williams prosecuted the case for the Government.
Gallatin Man Convicted for December 2019 Violent Crime SpreeRead the Press Release
NASHVILLE - A federal jury convicted Lazavion Kern, 22, of Gallatin, Tennessee, of multiple armed robbery and firearms offenses yesterday, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
During a three-week span in December 2019, Kern robbed four convenience stores in Gallatin and Portland, Tennessee, taking thousands of dollars from the clerks. As part of the final robbery, Kern repeatedly pistol-whipped the clerk, seriously injuring him. Kern was charged by a federal grand jury in January of 2023 with one count of Hobbs Act robbery for each of the four robberies, and two counts of brandishing a firearm during and in relation to a crime of violence. Yesterday, a federal jury convicted him on each count.
“This defendant went on a three-week crime spree, violently attacked an innocent store clerk, and bragged about his actions on social media,” said United States Attorney Henry C. Leventis. “The jury’s verdict ensures that he will be held accountable for those actions and that he will be removed from society for at least 14 years. I commend the excellent work of the trial team, the FBI, and our local law enforcement partners that made this outcome possible.”
“This conviction should send a clear message that the FBI and our law enforcement partners make it a priority to bring to justice those who resort to armed robbery for ill-gotten financial gains,” said Special Agent in Charge Douglas DePodesta of the FBI Memphis Field Office. “Violent crimes will not be tolerated, and law enforcement will not rest, until offenders are caught, prosecuted and held accountable for their actions.”
Kern faces a mandatory minimum sentence of 14 years, and up to life, in federal prison. He will be sentenced by United States District Judge William L. Campbell, Jr.
Kern was aided in each robbery by Antonio Jones and, in the third robbery, by Michael Sanchez Fitts. Jones and Fitts have pleaded guilty to felonies.
This case was investigated by the Federal Bureau of Investigation, the Gallatin Police Department, the Sumner County Sheriff’s Office, and the Portland Police Department. Significant assistance was provided by the United States Marshals Service. Assistant U.S. Attorneys Joseph P. Montminy and Taylor J. Phillips are prosecuting the case.
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Fourteen Members of Major Drug Organization That Trafficked Hundreds of Kilograms of Cocaine and Fentanyl SentencedRead the Press Release
Fourteen members of a major drug organization that trafficked hundreds of kilograms of cocaine and fentanyl in the Charlotte, North Carolina, area and illegally possessed firearms in support of that operation, were sentenced today, following a two-year investigation led by the Drug Enforcement Administration (DEA).
“These sentences are another example of how the Justice Department is targeting the Sinaloa and CJNG cartel networks that are poisoning the American people with fentanyl and fueling violent crime in communities across the country,” said Attorney General Merrick B. Garland. “The cartels are responsible for creating the deadliest drug threat our country has ever faced — we will continue to attack every aspect of their operations, including their associated drug trafficking organizations in the United States.”
“Deadly drugs like fentanyl and the gun violence tied to the drug trade are responsible for shattering families and devastating our communities,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “The prosecution of this trafficking organization with ties to Mexican drug cartels exemplifies our ongoing efforts to disrupt drug networks, reduce drug-induced gun violence, and build strong and safe communities. I want to thank the DEA and all of our law enforcement partners for their exemplary work in this case and for joining forces to combat drug activity and violent crime.”
“Dangerous drugs continue to flow into our communities at the expense of too many lives,” said Special Agent in Charge Robert J. Murphy of the DEA Atlanta Division. “This successful operation has ensured these violent drug traffickers have been taken off our streets, ultimately making the communities safer for everyone.”
According to court documents and court proceedings, from 2017 to 2022, the defendants were members of a large drug trafficking organization (DTO) responsible for distributing hundreds of kilograms of cocaine, fentanyl, and other narcotics in and around the Charlotte area. Information presented in court shows that the DTO had ties to, and was directly supplied from, the Sinaloa and CJNG cartels.
According to court documents and statements made in court, the multi-agency investigation into the DTO included court-authorized wiretaps, controlled purchases of narcotics, extensive surveillance, and the execution of dozens of search warrants, and led to the seizure of large quantities of narcotics, including approximately 328 kilograms of cocaine, 26 kilograms of fentanyl, and a kilogram of heroin. In addition to the narcotics, law enforcement seized approximately 60 firearms, 18 high-capacity magazines and ammunition, more than $2.4 million in cash drug proceeds, over $300,000 in jewelry, two residences, ten vehicles, a boat, and two tractor-trailers with hidden compartments for smuggling narcotics.
United States District Judge Robert J. Conrad sentenced the 14 defendants as follows:
- Salvador Barrera Jr., 28, of Charlotte, was sentenced to 24 years in prison, followed by five years of supervised release.
- Ricardo Johnathan Gomez, 28, of Charlotte, was sentenced to 22.5 years in prison, followed by five years of supervised release.
- Johnny Lane Owens Sr., 46, of Albemarle, North Carolina, was sentenced to 15 years in prison, followed by five years of supervised release.
- Isaac Sandoval, 31, of Salisbury, was sentenced to 12 years in prison, followed by two years of supervised release.
- Adrian Christopher Solares, 33, of Charlotte, was sentenced to 135 months in prison, followed by five years of supervised release.
- Luis Raymundo Macias-Robles, 32, of Charlotte, was sentenced to 121 months in prison, followed by five years of supervised release.
- Norberto Macedo Jr., 29, of Charlotte, was sentenced to 95 months in prison, followed by three years of supervised release.
- Derek Duane Crump, 42, of Albemarle, was sentenced to 77 months in prison, followed by three years of supervised release.
- Christian Alexander Hernandez, 29, of Charlotte, was sentenced to 74 months in prison, followed by five years of supervised release.
- Erik Perales, 28, of Charlotte, was sentenced to 72 months in prison, followed by four years of supervised release.
- Jesus Adrian Perales, 32, of Charlotte, was sentenced to 48 months in prison, followed by three years of supervised release.
- Janquil Josselyn Jackson, 30, of Los Angeles, was sentenced to 37 months in prison, followed by two years of supervised release.
- Christok Alexander Mata, 21, of Charlotte, was sentenced to 36 months in prison, followed by two years of supervised release.
- David George Jansen, 45, of Indian Land, South Carolina, was sentenced to 14 months in prison, followed by three years of supervised release.
The DEA, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshals Service, North Carolina State Highway Patrol, Kansas Highway Patrol, Anderson County, South Carolina, Sheriff’s Office, Cabarrus County Sheriff’s Office, Catawba County Sheriff’s Office, Lincoln County Sheriff’s Office, Stanly County Sheriff’s Office, York County, South Carolina, Sheriff’s Office Drug Enforcement Unit, Albemarle Police Department, Charlotte-Mecklenburg Police Department, Cornelius Police Department, Mint Hill Police Department, Monroe Police Department, Pineville Police Department, and Salisbury Police Department investigated the case.
Assistant U.S. Attorneys Taylor G. Stout and Alfredo De La Rosa for the Western District of North Carolina prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Fourteen Members of A Major Drug Organization That Trafficked Hundreds of Kilograms of Cocaine and Fentanyl SentencedRead the Press Release
CHARLOTTE, N.C. – Fourteen members of a major drug organization that trafficked hundreds of kilograms of cocaine and fentanyl in the Charlotte area and illegally possessed firearms in support of that operation were sentenced today, following a two-year investigation led by the Drug Enforcement Administration (DEA), announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
“These sentences are another example of how the Justice Department is targeting the Sinaloa and CJNG cartel networks that are poisoning the American people with fentanyl and fueling violent crime in communities across the country,” said Attorney General Merrick B. Garland. “The cartels are responsible for creating the deadliest drug threat our country has ever faced -- we will continue to attack every aspect of their operations, including their associated drug trafficking organizations in the United States.”
“Deadly drugs like fentanyl and the gun violence tied to the drug trade are responsible for shattering families and devastating our communities,” said U.S. Attorney King. “The prosecution of this trafficking organization with ties to Mexican drug cartels exemplifies our ongoing efforts to disrupt drug networks, reduce drug-induced gun violence, and build strong and safe communities. I want to thank the DEA and all of our law enforcement partners for their exemplary work in this case and for joining forces to combat drug activity and violent crime.”
“Dangerous drugs continue to flow into our communities at the expense of too many lives. This successful operation has ensured these violent drug traffickers have been taken off our streets, ultimately making the communities safer for everyone,” said Special Agent in Charge Robert J. Murphy of the DEA Atlanta Division.
According to court documents and court proceedings, from 2017 to 2022, the defendants were members of a large drug trafficking organization (DTO) responsible for distributing hundreds of kilograms of cocaine, fentanyl, and other narcotics in and around the Charlotte area. Information presented in court shows that the DTO had ties to, and was directly supplied from, the Sinaloa and CJNG cartels.
According to court documents and statements made in court, the multi-agency investigation into the DTO included court-authorized wiretaps, controlled purchases of narcotics, extensive surveillance, and the execution of dozens of search warrants, and led to the seizure of large quantities of narcotics, including approximately 328 kilograms of cocaine, 26 kilograms of fentanyl, and a kilogram of heroin. In addition to the narcotics, law enforcement seized approximately 60 firearms, 18 high-capacity magazines and ammunition, more than $2.4 million in cash drug proceeds, over $300,000 in jewelry, two residences, ten vehicles, a boat, and two tractor-trailers with hidden compartments for smuggling narcotics.
United States District Judge Robert J. Conrad sentenced the 14 defendants as follows:
- Salvador Barrera Jr., 28, of Charlotte, was sentenced to 24 years in prison, followed by five years of supervised release.
- Ricardo Johnathan Gomez, 28, of Charlotte, was sentenced to 22.5 years in prison, followed by five years of supervised release.
- Johnny Lane Owens Sr., 46, of Albemarle, North Carolina, was sentenced to 15 years in prison, followed by five years of supervised release.
- Isaac Sandoval, 31, of Salisbury, was sentenced to 12 years in prison, followed by two years of supervised release.
- Adrian Christopher Solares, 33, of Charlotte, was sentenced to 135 months in prison, followed by five years of supervised release.
- Luis Raymundo Macias-Robles, 32, of Charlotte, was sentenced to 121 months in prison, followed by five years of supervised release.
- Norberto Macedo Jr., 29, of Charlotte, was sentenced to 95 months in prison, followed by three years of supervised release.
- Derek Duane Crump, 42, of Albemarle, was sentenced to 77 months in prison, followed by three years of supervised release.
- Christian Alexander Hernandez, 29, of Charlotte, was sentenced to 74 months in prison, followed by five years of supervised release.
- Erik Perales, 28, of Charlotte, was sentenced to 72 months in prison, followed by four years of supervised release.
- Jesus Adrian Perales, 32, of Charlotte, was sentenced to 48 months in prison, followed by three years of supervised release.
- Janquil Josselyn Jackson, 30, of Los Angeles, was sentenced to 37 months in prison, followed by two years of supervised release.
- Christok Alexander Mata, 21, of Charlotte, was sentenced to 36 months in prison, followed by two years of supervised release.
- David George Jansen, 45, of Indian Land, South Carolina, was sentenced to 14 months in prison, followed by three years of supervised release.
The DEA, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshals Service, North Carolina State Highway Patrol, Kansas Highway Patrol, Anderson County, South Carolina, Sheriff’s Office, Cabarrus County Sheriff’s Office, Catawba County Sheriff’s Office, Lincoln County Sheriff’s Office, Stanly County Sheriff’s Office, York County, South Carolina, Sheriff’s Office Drug Enforcement Unit, Albemarle Police Department, Charlotte-Mecklenburg Police Department, Cornelius Police Department, Mint Hill Police Department, Monroe Police Department, Pineville Police Department, and Salisbury Police Department investigated the case.
Assistant U.S. Attorneys Taylor G. Stout and Alfredo De La Rosa for the Western District of North Carolina prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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Former bank teller sentenced for stealing nearly $90,000 deposited by Georgia convenience storeRead the Press Release
STATESBORO, GA: A former Candler County bank teller has been sentenced to federal prison after pleading guilty to skimming money from a convenience store’s deposits.
Kayla Monroe Evans, 32, of Metter, Ga., was sentenced to two months in prison followed by two months of home confinement after pleading guilty to Bank Fraud, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Evans to pay $97,165 in restitution and to serve five years of supervised release.
“Kayla Evans violated the trust of her employer and its customer, and is being held accountable for her theft,” said U.S. Attorney Steinberg. “This sentence offers assurance that those who commit fraud will be brought to justice.”
As described in court documents and testimony, Evans worked as a teller for the Synovus Bank in Metter, where a local convenience store maintained its account. An auditor for the store began noticing discrepancies between the amount of cash presented to the bank for deposit compared to the amount credited to the store and worked with the bank to determine the cause.
A subsequent investigation found that from July 2019 through February 2021, Evans personally handled the store’s deposits, frequently skimming cash for her personal use from the amount presented and crediting a smaller deposit to the store. In total, Evans stole approximately $87,748 from the convenience store’s deposits. As part of her plea agreement, Evans agreed to pay restitution for the full loss caused by her criminal conduct, and to never seek employment in any financial institution.
“We are pleased to work with the U.S. Attorney’s Office in bringing to justice those who commit bank fraud for their own personal gain,” said Brian Tucker, Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau.
The federal investigation was led by the Office of Inspector General for the Federal Reserve Board and the Consumer Financial Protection Bureau. The investigation received support from the Candler County Sheriff’s Office, the District Attorney’s Office for the Middle Judicial Circuit, and the Georgia Bureau of Investigation. The case was prosecuted for the United States by Assistant U.S. Attorney Matthew A. Josephson.
Former Teacher Pleads Guilty to Sexually Exploiting Children in LaosRead the Press Release
A Massachusetts man pleaded guilty today engaging in sexual acts with three minors in Laos.
According to court documents, Michael Sebastian, 56, of Lynn, taught English to impoverished children in Laos. While teaching children there, Sebastian allowed certain students to live with him in his apartment, and they had to pay “dues.” Students who were unable to pay their dues performed “chores” around the house to earn credit towards their dues payments. One of the “chores” was giving Sebastian a massage while he was naked. Between May 2018 and September 2019, in the course of these massages, Sebastian engaged and attempted to engage in sexual acts with three minors who lived with him.
Sebastian pleaded guilty to three counts of engaging in illicit sexual conduct in a foreign place. He is scheduled to be sentenced on March 28, 2024, and faces a maximum penalty of 90 years in prison and lifetime supervised release. Additionally, he will be required to pay restitution to his victims and to register as a sex offender under the Sex Offender Registration and Notification Act. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Joshua S. Levy for the District of Massachusetts, Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division, and Special Agent in Charge Jodi Cohen of the FBI Boston Field Office made the announcement.
The FBI investigated the case, with assistance from the Department of State’s Diplomatic Security Service.
Trial Attorneys Nadia Prinz and Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Anne Paruti for the District of Massachusetts are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Justice Department. 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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Teacher Pleads Guilty to Exploiting Children in LaosRead the Press Release
BOSTON – A Lynn man pleaded guilty today to sexually exploiting minors to whom he taught English in Laos.
Michael Sebastian, 56, pleaded guilty to three counts of engaging in illicit sexual conduct in foreign places. U.S. District Court Judge Denise J. Casper scheduled sentencing for March 28, 2024. Sebastian was arrested and charged in July 2020 following his return to the United States and subsequently indicted by a federal grand jury in August 2020.
According to the charging documents, Sebastian taught English to impoverished children in Laos. While teaching children there, Sebastian allowed certain students to live with him in his apartment. Students who were unable to pay for their living expenses performed “chores” around the house to earn credit towards their rent payments. One of the “chores” eligible for rent credit was to give Sebastian massages, during which Sebastian would be naked. As part of these massages, Sebastian required some students to touch his genitals and masturbate him in lieu of rent payment.
Between May 2018 and March 2020, Sebastian sexually abused three minor children who lived with him.
“Mr. Sebastian ingratiated himself into a position of trust and then manipulated his relationships to exploit vulnerable minors who sought refuge and education. His horrific conduct is a parent’s worst nightmare,” said Acting United States Attorney Joshua S. Levy. “Ensuring the safety of our children from an array of threats is an absolute top priority for this office. This case should send a resounding message to Americans in Massachusetts and beyond: predators will be identified, prosecuted and held accountable.”
“Teachers like Michael Sebastian who use their access to children for their own sexual gratification are both a danger and a disgrace. Today, Mr. Sebastian finally admitted to exploiting impoverished children in a foreign country and betraying their trust,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “This case illustrates how the FBI will pursue justice beyond American borders to safeguard vulnerable victims from predators.”
The charge of engaging in illicit sexual conduct in foreign places provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes that govern the determination of a sentence in a criminal case.
Acting U.S. Attorney Levy; Nicole M. Argentieri, Acting Assistant Attorney General for the Justice Department’s Criminal Division; and FBI SAC Cohen made the announcement. This case was primarily investigated by the FBI's Legal Attache office in Bangkok, along with valuable assistance provided by the FBI's Child Exploitation Operational Unit and the Boston FBI’s Child Exploitation Human Trafficking Task Force. Assistant U.S. Attorney Anne Paruti, Project Safe Childhood Coordinator and Chief of the Office’s Major Crimes Unit, and Trial Attorneys Nadia Prinz and Eduardo Palomo of the Justice Department’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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 https://www.justice.gov/psc.
Former Correctional Sergeant Found Guilty in Retrial of Falsification of Records to Cover up Assault of a CSP Sacramento InmateRead the Press Release
SACRAMENTO, Calif. — A jury found former California state correctional officer Brenda Villa, 32, of North Highlands, guilty today of one count of conspiracy to commit falsification of records in a federal investigation and three counts of falsification of records, U.S. Attorney Phillip A. Talbert announced.
In July 2023, following a three-day trial, a jury found Villa guilty of perjury in connection with a federal grand jury investigation into the assault of an inmate by a correctional officer and the ensuing conspiracy to cover it up. The prior jury could not reach a unanimous verdict on additional conspiracy and falsification of records counts, and the United States requested a retrial. The retrial on those remaining counts finished today.
According to the court records and evidence presented at trial, Villa was a correctional sergeant supervising other officers at California State Prison – Sacramento (also known as New Folsom State Prison or CSP-Sacramento) when correctional officer Arturo Pacheco unlawfully assaulted an inmate under color of law. Several California Department of Corrections and Rehabilitation (CDCR) officers responded to the alarm after the assault. Villa was the first responding officer to the scene and immediately took charge. The inmate was transported to the hospital but died two days later. As a supervisor, Villa directed the preparation of, and later signed off on, a series of reports about the incident that she knew were false because they completely omitted the presence and involvement of a correctional officer who had witnessed the assault, and who Villa herself had observed at the scene. Villa instructed the removal of that correctional officer witness’s name from another person’s report. The correctional officer witness’s draft report describing Pacheco’s unjustified use of force was never collected, and it did not become a part of the official record of the incident.
Following the assault and the inmate’s death, CDCR initiated an internal investigation. As the CDCR internal investigation proceeded, a federal grand jury began investigating federal criminal charges in conjunction with the Federal Bureau of Investigation and the U.S. Attorney’s Office. In November 2020, Villa was called to testify in front of the grand jury about her role and the actions of her fellow officers in covering up the unlawful assault. Villa lied under oath to the federal grand jury investigating the incident.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Michael D. Anderson and Rosanne L. Rust are prosecuting the case.
Former correctional officers Arturo Pacheco and Ashley Aurich pleaded guilty and were sentenced to 12½ years and 21 months in prison, respectively.
Villa is scheduled to be sentenced on March 18, 2024. Villa faces a maximum statutory penalty of five years in prison and a $250,000 fine for the count of conspiracy and the count of perjury. She faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of falsification of records. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former City of Jackson Employee Sentenced for Wire FraudRead the Press Release
Jackson, Miss.– A former City of Jackson employee was sentenced to 5 years of probation for wire fraud and ordered to pay approximately $54,000 in restitution.
According to court documents, Keyshia Sanders, 48, the City of Jackson’s former Constituent Service Manager, pleaded guilty to engaging in a wire fraud scheme to fraudulently induce the disbursement of grant money for her own benefit. The scheme involved the use of fraudulent invoices that caused the grant’s fiscal agent to disburse funds to Sanders in clear contradiction to the terms of the grant and Sander’s role as a City of Jackson employee. The grant was intended to provide project support in the City of Jackson to invest in artists, artist collectives, and small arts organizations. In total, the fraudulent transactions caused by Sanders over the course of the scheme totaled a loss of approximately $54,000.
U.S. Attorney Todd W. Gee of the Southern District of Mississippi and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation made the announcement.
The Federal Bureau of Investigation and the Mississippi State Auditor’s Office investigated the case.
Former Chief Operating Officer of Suburban Chicago Covid-19 Testing Kit Company Charged with Embezzling at Least $1.8 Million in Company FundsRead the Press Release
CHICAGO — The former Chief Operating Officer of a suburban Chicago company that sold Covid-19 testing kits has been indicted on federal fraud charges for allegedly embezzling at least $1.8 million in company funds.
DENNIS W. HAGGERTY, JR. issued fraudulent payments from the Willowbrook, Ill.-based company’s bank account for services and goods purportedly provided by himself or the company’s main vendor, a manufacturer from whom the company purchased Covid-19 testing kits, according to an indictment returned Dec. 14, 2023, in U.S. District Court in Chicago. In reality, the services and goods had not been provided, the indictment states. The money purportedly sent to the testing-kit supplier was wired to a bank account that Haggerty controlled, and he spent the funds for his personal benefit, the indictment states.
In addition to the wire transfers, Haggerty allegedly issued checks drawn from the company’s bank account to himself, knowing that he would spend the money for his personal benefit and not the company’s benefit. Haggerty concealed his fraud by making false and misleading statements on the checks and to the company’s president, the indictment states.
In 2021 and 2022, Haggerty embezzled and fraudulently misappropriated at least approximately $1.8 million from the company, the indictment alleges.
The indictment charges Haggerty, 47, of Burr Ridge, Ill., with five counts of wire fraud. Arraignment in U.S. District Court in Chicago has not yet been scheduled. The indictment states that Haggerty committed the embezzlement while free on court-ordered release while another federal fraud case against him was pending. He was eventually convicted in that case and sentenced in December 2022 to a term of 57 months’ imprisonment.
The indictment was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services, Office of Inspector General. The government is represented by Assistant U.S. Attorney L. Heidi Manschreck.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison, to be followed by a consecutive term of up to ten years for each offense committed while under court-ordered release. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Haggerty indictmentFlorida Man Indicted for Hate Crime in Murder of Black Man in Kansas City, MissouriRead the Press Release
A Florida man was charged with a federal hate crime today for a murder he committed while staying in the Kansas City, Missouri, area.
Sean Walter Tonkin, 36, who was staying at a local motel at the time of the alleged offense, was charged in an indictment returned by a federal grand jury in Kansas City with committing a racially-motivated hate crime resulting in death.
The indictment alleges that Tonkin, armed with a knife with knuckles, approached a Black man, J.M.R., on July 4. Unprovoked, Tonkin allegedly directed racial epithets and threats toward J.M.R. and ultimately stabbed him twice in the chest and abdomen, resulting in J.M.R.’s death. The indictment alleges that Tonkin attacked J.M.R. because of his race.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Teresa A. Moore for the Western District of Missouri and Special Agent in Charge Stephen A. Cyrus of the FBI Kansas City Field Office made the announcement.
The FBI Kansas City Field Office is investigating the case.
Executive Assistant U.S. Attorney David Ketchmark for the Western District of Missouri and Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section 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.
Final Defendant Pleads Guilty in Armed Robbery of Pharmacy VanRead the Press Release
WASHINGTON D.C. – Juwuan Edward Francis Champion, 24, of Bowie, Md., pleaded guilty yesterday to his role in the felony armed robbery of a pharmaceutical van driver and a firearms charge, announced U.S. Attorney Matthew M. Graves and Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Washington Field Division.
Champion, aka “Big Money,” pleaded guilty on December 19, 2023, to conspiracy to interfere with interstate commerce by robbery (known as conspiracy to commit a Hobbs Act robbery) and unlawful possession of a machine gun. U.S. District Judge Amit P. Mehta scheduled sentencing for March 15, 2024.
Champion was part of a four-member crew participating in a drug trafficking operation in the Potomac Gardens neighborhood of Southeast Washington. The three other members included Fitzgerald Hunt, 24, of Washington, D.C., also known as “GMoney;” Joshua Johnson, 18, of Capitol Heights, Md., also known as “Lil Josh,” and Keyshawn Lavender, 20, of Washington, D.C., also known as “Key.” From January to October 2021, the crew members allegedly trafficked in Oxycodone, Alprazolam, and other illegal narcotics.
In pleading guilty, Champion, Hunt, and Johnson admitted that on March 30, 2021, they conspired to rob a pharmaceutical delivery van driver outside a pharmacy in Waldorf, Md. The driver was placed in handcuffs, hit on the head with a firearm, and then the defendants drove the van back to Washington, D.C., with its pharmaceutical contents.
Law enforcement arrested the four men on October 7, 2021.
Hunt, Johnson, and Lavender previously pleaded guilty. Hunt was sentenced on September 29, 2023, to 108 months in prison and 36 months of supervised release. Johnson, who was 17 years old at the time of the robbery, pleaded guilty to drug conspiracy and separately pled guilty to related local charges in Charles County, Maryland in a global resolution.
Lavender was not charged with the robbery and pleaded guilty to drug conspiracy and received a sentence of 30 months in prison.
This case was investigated by the ATF Washington Field Office and the Metropolitan Police Department (MPD). Critical support was provided by the Charles County Md. Sheriff’s Office and Charles County State’s Attorney’s Office, and additional assistance was provided by the U.S. Marshals Service, the Prince George’s County, Md. Police Department, and Anne Arundel County, Md. Police Department.
The case was prosecuted by Assistant U.S. Attorneys Candice Wong and Solomon Eppel of the Violence Reduction and Trafficking Offenses Section of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by former Special Assistant U.S. Attorney Allison McGuire.
Felon Pleads Guilty to Possessing Ammunition Used in Shooting in BrooklynRead the Press Release
Today in federal court in Brooklyn, Leo Oliver pleaded guilty to being a felon in possession of ammunition in connection with a non-fatal shooting of a man in East New York, Brooklyn. Today’s proceeding was held before United States District Judge Dora L. Irizarry. When sentenced, Oliver faces up to 10 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Erin Keegan, Acting Special Agent-in-Charge, Department of Homeland Security, Homeland Security Investigations, New York (HSI), and Edward A. Caban, Commissioner, New York City Police Department (NYPD) announced the guilty plea.
“With today’s plea, the community can begin to heal from the callous violence the defendant brazenly inflicted in public places,” stated United States Attorney Peace. “My Office is deeply committed to holding repeat offenders who engage in gun violence, like the defendant, fully accountable for their actions.”
“For years, Leo Oliver caused immense harm to the Brooklyn community through his reckless acts of violence and justice has finally caught up with him. I commend the efforts of HSI New York's Violent Gang Task Force for successfully identifying Oliver, a repeat offender whose rap sheet boasted seven prior felonies, as the perpetrator in multiple shootings in East New York over a two-year period,” said HSI New York Acting Special Agent in Charge Erin Keegan. “I would like to thank the NYPD and the Eastern District of New York for their collaborative efforts to reduce gun-related violence, and their commitment toward the safety of our great city.”
“While crime never rests, neither does the commitment of the men and women of the NYPD,” stated NYPD Commissioner Caban. “I commend our investigators for their dedication to this important case. And, in the ongoing effort to end the horrors of gun violence, we and our partners at HSI and the office of the U.S. Attorney for the Eastern District of New York will remain tireless in identifying, investigating, and holding fully accountable anyone responsible for driving crime and disorder in our city.”
According to court filings, the indictment, and facts presented during the plea proceeding, Oliver committed two shootings in East New York, Brooklyn in 2020 and 2021.
On the evening of July 8, 2020, the defendant shot his first victim (Victim-1) at a bodega. Victim-1 was working behind the counter when, after a dispute, Oliver brandished a black firearm from his pocket, and shot Victim-1 in the chest and hand, before fleeing in an SUV. A .380 shell casing was recovered from the scene. Victim-1 was hospitalized but survived.
Oliver committed a second shooting on September 25, 2021 following an argument with Victim-2 on the sidewalk on Van Siclen Avenue in Brooklyn. As Victim-2 and Oliver were in a verbal dispute, Oliver shot Victim-2 in his torso, before fleeing on foot. Victim-2 was hospitalized but survived. Two .380 shell casing were recovered at the scene.
As described in court filings, after the shootings the defendant took steps to destroy evidence and conceal his crimes. He deleted firearms evidence from his cell phone, and threw the firearm used in the 2020 shooting into a river.
The defendant has at least ten other prior convictions, including at least seven felony convictions.
Assistant United States Attorney Adam Amir is in charge of the prosecution.
The Defendant:
LEO OLIVER (also known as “Gam”)
Age: 43
Mechanicsburg, PennsylvaniaE.D.N.Y. Docket No. 23-CR-279 (DLI)
Federal Prosecutors Remove 300 Illegal Firearms from Eastern Virginia During Fiscal Year 2023Read the Press Release
Today Jessica D. Aber, United States Attorney for the Eastern District of Virginia (EDVA), announced that over the course of the past fiscal year, EDVA’s litigative efforts resulted in the forfeiture of at least 312 illegally owned, possessed, used, or obtained firearms, a 90% increase from last year. Firearms that are criminally forfeited are removed from the possession of a convicted criminal defendant and relinquished to the government for disposal, including potentially the return of the firearm to a rightful owner.
“Our priority is to enforce the nation’s firearm laws to keep our communities safe,” said Aber. “Our significant increase in firearm seizures is because we recognize that unlawful firearm terrorize communities. Forfeiting these firearms from convicted defendants ensures that these firearms can do no more harm.”
Since the start of 2023, EDVA has charged over 225 defendants with federal firearms offenses, including possessing a firearm in furtherance of drug trafficking, possession of a firearm as a convicted felon, and straw purchasing of a firearm. These successes are a result of close cooperation between prosecutors and partners at federal and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and Homeland Security Investigations (HSI). EDVA also partners with the state and local police and sheriffs across the district.
“Through our strong law enforcement partnerships in EDVA, ATF agents have tirelessly worked to prevent firearms from reaching the hands of violent criminals. We all see the devastation that gun violence causes in our communities. Last year our agents participated in numerous complex investigations that included armed drug traffickers, illegal possession of firearms and trafficking violations. ATF’s goal was to reduce violent crime by removing as many dangerous criminals from our streets as we could. This year we are uniquely positioned to maintain that momentum and will continue to work collectively with our partners to make our communities safer,” said Craig Kailimai, Special Agent in Charge of the ATF Washington Field Office. “ATF will remain on the frontline against violence.”
“Every day the FBI and our federal, state, and local partners work toward our shared goal of combating violent crime," said Brian Dugan, Special Agent in Charge of the FBI Norfolk Field Office. “As we continue to combat violent crime with our law enforcement partners, it is imperative that we take guns out of the hands of those who cannot legally possess them. We are successful at this due to our partnerships and our commitment to show the return on investment to our partners by holding accountable those who endanger our neighborhoods for illegally possessing and using firearms. The communities our law enforcement partners serve deserve the right to feel safe and secure in their own homes and communities.”
“By seizing firearms from individuals who illegally buy, sell, use, or possess them, law enforcement is better positioned to reduce gun violence in our neighborhoods,” said David Geist, Acting Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division. “Throughout 2023, the FBI collaborated with our federal, state, and local partners, as we do every year, to combat gun violence, and we'll continue to harness these resources for years to come to keep the communities that we serve safe.”
“The safety of those in our community is paramount to our collective efforts. Too often we see how firearms, as an added component to criminal activity, can be life-altering even fatal and shatter the lives of innocent victims, their families, and communities,” said Stanley M. Meador, Special Agent in Charge of the FBI Richmond Field Office. “As such, FBI Richmond pledges to continue working with our law enforcement and community partners to address violent crimes and hold criminals accountable.”
“The unlawful use of firearms is an enormous factor in a preponderance of the cases we investigate,” said Derek W. Gordon, Special Agent in Charge of HSI Washington, D.C. “Any time we are dealing with illegally possessed firearms, the threat to our special agents and to our residents increases exponentially. HSI Washington, D.C. will not relent in our efforts to keep all firearms out of the hands of those who are not legally allowed to own them.”
Cases prosecuted by EDVA this year include USA v. Taylor, in which Antonyo Taylor pleaded guilty to possessing a firearm connected to the homicide of a seven-year-old girl in Portsmouth; USA v. Harris, in which Deshan Harris was found carrying a firearm that had been used in two separate shootings in Richmond; USA v. Davis, et al, in which defendants Stanley Davis, Mantriel Reaves, and Jasiri Wynn pleaded guilty to a straw purchasing scheme where firearms were later recovered from individuals alleged to be involved in criminal activity; and USA v. Turner Sr., in which Anthony Gale Turner, a federally licensed dealer, was prosecuted for selling at least 49 firearms unlawfully,
EDVA’s efforts to seize and forfeit illegal firearms in 2023 was the result of multiple investigative and prosecutorial efforts, including Project Safe Neighborhoods (PSN), which seeks to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them, and the Organized Crime Drug Enforcement Task Forces (OCDETF), whose purpose is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia.
Federal Produce Inspector Indicted for False Reporting in Exchange for Bribe PaymentsRead the Press Release
A federal grand jury last week indicted a Mansfield, TX man for submitting false inspection reports in exchange for bribe payments, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Timothy Peppel, 68 years old, was a federal produce inspector with the United States Department of Agriculture (USDA) Agricultural Marketing Service (AMS). Peppel was responsible for conducting produce inspections and providing inspection reports to companies buying and selling produce.
According to prosecutors, a wholesale produce company, American Fresh Produce (AFP), began requesting produce inspections from USDA AMS in 2014 in order to rate their produce. AFP used the inspection reports to negotiate a price for the produce they purchased from produce brokers. Peppel was one of the inspectors who inspected and graded AFP’s produce and created inspection reports.
Shortly after Peppel started performing inspections of AFP produce, Peppel solicited and received weekly bribery payments of $1,000 to $1,500 from the owner of AFP. In exchange for the bribery payments, Peppel agreed to create produce inspection reports that falsely downgraded AFP’s produce, which AFP was able to use to negotiate lower prices for the produce they had purchased.
Peppel has been charged with one count of conspiracy to commit honest services wire fraud and receiving bribe by a public officer; five counts of honest services wire fraud; and one count of receiving bribe by a public official. If convicted, he faces up to five years in prison on the count of conspiracy; 20 years in prison on each count of honest services wire fraud; and 15 years in prison on the count of receiving bribe by a public; official plus restitution.
The FBI Dallas Office and U.S. Department of Agriculture - Office of Inspector General conducted the investigation, and Assistant U.S. Attorneys Marty Basu and Joshua Detzky are prosecuting the case. Assistant U.S. Attorney Marcus Busch assisted in the investigation of 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.
Federal Grand Jury B Indictments Announced - December 2023Read the Press Release
United States Attorney Clint Johnson today announced the results of the December 2023 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury.
The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.Gerardo Arenas-Torres. Unlawful Reentry of a Removed Alien. Arenas-Torres, 53, a Mexican national, is charged with
unlawfully reentering the United States after having been removed in Nov. 2013, at or near Brownville, Texas. U.S. Immigration and Customs Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Elliot Anderson is prosecuting the case. 23-CR-399Pablo Vasquez Compusano. Unlawful Reentry of a Removed Alien. Compusano, 36, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Apr. 2019, at or near Laredo, Texas. U.S. Immigration and Customs Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case. 23-CR-400
Juan Arturo Diaz-Rodriguez. Unlawful Reentry of a Removed Alien. Diaz-Rodriguez, 25, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Jun. 2022, at or near Del Rio, Texas. U.S. Immigration and Customs Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Cheryl L. Baber is prosecuting the case. 23-CR-401
Orlin Enriquez-Enriquez. Unlawful Reentry of a Removed Alien. Enriquez-Enriquez, 26, a Mexican national, is charged with unlawfully reentering the United States after having been removed in Nov. 2017, at or near San Antonio, Texas. U.S. Immigration and Customs Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Elliot Anderson is prosecuting the case. 23-CR-402
Emilio Miguel Gallardo; Dakota Samuel Johns. Malicious Damage to Federal Property; Possession of an Unregistered Destructive Device; Manufacturing an Unregistered Destructive Device. Gallardo, 20, and Johns, 22, both from Miami were charged with attempting to damage and destroy the Ottawa County Sheriff’s Office with Molotov cocktails in Nov. 2023. They are further charged with possessing and manufacturing destructive devices not registered. The Bureau of Alcohol, Tobacco, Firearms and Explosives and FBI are the investigative agencies. Assistant U.S. Attorney Nathan E. Michel and Michael Flesher are prosecuting the case. 23-CR-403
Dave Luther Kendrick. Failure to Register as a Sex Offender. Kendrick, 35, of Pawnee is charged with knowingly failing to register as a sex offender from Aug. 2023 through the date of the Indictment. The United States Marshal Service is the investigative agency. Assistant U.S. Attorney Cheryl L. Baber is prosecuting the case. 23-CR-404
Thomas Lee Knox. Second Degree Murder in Indian Country; Carrying, Using, Brandishing, and Discharging a Firearm During and in Relation to a Crime of Violence. Knox, 38, of Tulsa and a citizen of Choctaw Nation is charged with discharging a firearm and killing Paul Schultz in Nov. 2023. The FBI is the investigative agency. Assistant U.S. Attorney Alicia Hockenbury is prosecuting the case. 23-CR-405
Audrell L. Lunsford. Failure to Register as a Sex Offender. Lunsford, 66, of Tulsa is charged with knowingly failing to register as a sex offender from Jan. 2021 through the date of the Indictment. The United States Marshal Service is the investigative agency. Assistant U.S. Attorney Cheryl L. Baber is prosecuting the case. 23-CR-406
Hong Thoa Thi Nguyen; Tait Hunter Jaco; Tam Duc Nguyen; Trinh Nguyen. Drug Conspiracy; Maintaining a Drug-Involved Premises; Possession of Fentanyl with Intent to Distribute. Hong Nguyen, 44, Jaco, 32, Tam Nguyen, 56, and Trinh Nguyen, 36, of Tulsa are charged with conspiring to distribute fentanyl in Nov. 2023. Hong Nguyen and Jaco were also charged for maintaining a residence for drug distribution. Jaco was further charged for possessing fentanyl with intent to distribute. The Drug Enforcement Administration and Oklahoma Bureau of Narcotics are the investigative agencies. Assistant U.S. Attorney Adam Bailey is prosecuting the case. 23-CR-407
Serina Kaitlyn Vacin; Justin Michael Waymire. Drug Conspiracy; Possession of Fentanyl with Intent to Distribute; Possession of Methamphetamine with Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Maintaining a Drug-Involved Premises. Vacin, 25 and Waymire, 27, of Tulsa are charged conspiring to distribute fentanyl and methamphetamine while in possession of a firearm in Nov. 2023. They are further charged with maintaining a residence for drug distribution. Assistant U.S. Attorney Adam Bailey is prosecuting the case. 23-CR-408
Essex County Woman Admits Role in Three Robberies and Two Shootings in Jersey CityRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman admitted her role in a one-night crime spree involving robberies and shootings in Jersey City, New Jersey, U.S. Attorney Philip R. Sellinger announced today.
Siobhan Chandler, 21, of Newark, pleaded guilty before U.S. District Judge Brian R. Martinotti in Newark federal court to an indictment charging her with conspiracy to commit Hobbs Act robbery, conspiracy to use and carry a firearm in relation to crime of violence, attempted Hobbs Act Robbery, Hobbs Act robbery, and using and carrying a firearm in relation to crime of violence. The charges against her conspirator, Rodney Williams, are merely accusations, and he is presumed innocent unless and until proven guilty.
According to documents filed in this case and statements made in court:
On the evening of Nov. 14, 2023, Chandler and Williams robbed a gas station, where Williams pointed his gun at an attendant and demanded money. Chandler and Williams threatened force, violence, or fear of injury to two employees by demanding money while pointing a firearm at the employees. Chandler and Williams then fled.
Chandler and Williams later entered another store, and Williams again pointed his firearm at a clerk and demanded money. The clerk handed money to Williams and he and Chandler then fled.
Chandler and Williams entered a nearby restaurant and threatened force, violence or the fear of injury to a cashier. Williams pointed his gun at the cashier and demanded money. Williams discharged the firearm, shooting the cashier in the chest. The cashier handed money to Williams, after which Williams and Chandler fled.
The Hobbs Act robbery charges to which Chandler pleaded guilty each carry a maximum potential penalty of 20 years in prison; the conspiracy to use and carry a firearm in relation to crime of violence charge carries a maximum potential penalty of 20 years in prison; the using and carrying a firearm in relation to crime of violence charge carries a statutory minimum of 10 years in prison and a maximum potential penalty of life in prison. Any term of imprisonment on the charge for using and carrying a firearm in relation to crime of violence must run consecutively to any other prison term imposed on the other counts. Each count also carries a maximum fine of $250,000. Sentencing is scheduled for April 17, 2024.
U.S. Attorney Sellinger credited officers of the Jersey City Police Department, under the direction of Acting Chief Robert J. Kearns, and the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, with the investigation leading to today’s guilty plea. He also thanks the Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Economic Crimes Unit in Newark.
chandler.indictment.pdfDistrict Man Pleads Guilty to the December 2022 Hobbs Act Armed Robberies of D.C. BusinessesRead the Press Release
WASHINGTON – A District man pleaded guilty today to federal felony charges in a pair of armed robberies that targeted commercial establishments during one night in December 2022, announced U.S. Attorney Matthew Graves; FBI Acting Special Agent in Charge David Geist, of the Washington Field Office's Criminal and Cyber Division; and Chief Pamela Smith, of the Metropolitan Police Department.
Damion Byrd, 21, of Washington D.C., pleaded guilty to two counts of interference with interstate commerce by robbery (also known as a Hobbs Act robbery) in U.S. District Court in the District of Columbia.
On December 13, 2022, at 11:41 p.m. Byrd entered a convenience store on the 2300 block of Rhode Island Ave., NW, and asked an employee for juice. The employee told Byrd that the juice was in the refrigerator. Byrd retrieved a bottle of water and walked towards the counter where he tossed a $1 bill. Byrd then pointed a firearm at the employee and stated, “I need the money all the money you have.” The employee emptied the register and handed over the cash.
On December 14, 2022, at 12:43 a.m., Byrd drove a silver-colored sedan to the drive-thru window of a fast-food restaurant on the 3900 block of Minnesota Ave., NE. Byrd exited the vehicle, pointed a firearm at a cashier, and said, “Open the register and I won’t shoot.” The cashier ran away. Byrd reached in the window, grabbed the cash register, and fled in the vehicle.
Byrd was arrested on January 11, 2023, in Washington, D.C. and has been detained ever since.
U.S. District Court Judge Tanya S. Chutkan set a sentencing date for March 26, 2024. Byrd 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.
In announcing the plea, U.S. Attorney Graves, SAC Geist, and Chief Smith commended the MPD officers and FBI agents who collaborated on the investigation as members of MPD's Violent Crime Suppression Unit and FBI's Washington Field Office's Violent Crimes Task Force.
This case is being prosecuted by Assistant U.S. Attorney Shehzad Akhtar of the U.S. Attorney’s Office for the District of Columbia. Paralegal Karla Nunez provided valuable assistance.
District Court Enjoins California Food Company from Manufacturing and Distributing Adulterated Food ProductsRead the Press Release
A federal court today enjoined a California company from manufacturing and distributing adulterated food products in violation of the Federal Food, Drug and Cosmetic Act (FDCA).
In a civil complaint filed Oct. 11, 2022, the United States alleged that Cali Rice Valley Inc., along with its general manager and co-owner, Cuong T. Do, violated the FDCA at the company’s current facility in Antioch, California, and its previous facility in San Francisco by manufacturing and distributing adulterated food products. Cali Rice Valley makes and distributes food products, including ready-to-eat rice noodles, packaged in retail and bulk sizes, as well as bakery products. The complaint alleged that the defendants violated the FDCA by failing to adequately conduct a hazard analysis or establish and implement preventive controls leaving their food products at risk of contamination with disease-causing bacteria. The complaint also alleged the Food and Drug Administration (FDA) inspected the company’s facilities four times, including in 2019, 2020, 2021 and 2022, and that many of the most recent violations were repeat violations FDA had identified in earlier inspections. According to the complaint, FDA issued Cali Rice Valley several warnings, including a warning letter to the company in 2020, regarding alleged deficiencies at its facilities.
“Food manufacturers have an important duty to ensure the quality and safety of their products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work closely with the FDA and take action against manufacturers who fail to abide by laws designed to protect public health.”
“The FDA takes its responsibility seriously to ensure the foods we eat are safe and meet our rigorous standards for food safety,” said Associate Commissioner Michael Rogers for Regulatory Affairs. “It is always a firm’s responsibility to ensure the consistent safety of the products they produce, and we will seek to hold them accountable when they fail to meet those standards.”
The company and Do agreed to settle the suit filed by the government and be bound by a consent decree of permanent injunction. The negotiated consent decree entered by the court permanently enjoins the defendants from violating the FDCA, and requires, among other things, that they stop manufacturing, processing, packing, holding or distributing adulterated articles of food.
Trial Attorney David G. Crockett Jr. and Senior Trial Attorney Roger Gural of the Civil Division’s Consumer Protection Branch prosecuted this case, with assistance from Senior Counsel Claudia J. Zuckerman of the FDA’s Office of Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
The claims resolved by the consent decree announced today are allegations only, and there has been no determination of liability.
Detroit Man Sentenced to 200 Months for Armed Drug Trafficking and Money LaunderingRead the Press Release
LEXINGTON, Ky. – A Detroit man residing in Lexington, Kenneth Hinton, 43, was sentenced on Tuesday, to 200 months in federal prison, by U.S. District Judge Karen Caldwell, for possession with intent to distribute five kilograms or more of cocaine, possession of a firearm in furtherance of drug trafficking, and money laundering.
According to his plea agreement, beginning in March 2022, law enforcement began investigating Hinton. Ultimately, law enforcement executed search warrants on Hinton’s vehicle, Lexington residence, and storage unit. In these searches, law enforcement seized over five kilograms of cocaine and numerous firearms and ammunition, including an AR-15 rifle and several loaded handguns. A joint financial investigation between the IRS and DEA also established that Hinton was using proceeds from the sale of cocaine, which had been deposited into bank accounts, to then purchase several pieces of real estate in Detroit.
As part of Hinton’s plea agreement, he was required to forfeit $23,100 in drug proceeds, five firearms with assorted magazines and ammunition, as well as a Mercedes.
Hinton has a prior drug-related felony conviction from 2021, in Fayette Circuit Court.
Under federal law, Hinton 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.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by DEA, IRS, and Lexington Police Department. Assistant U.S. Attorney Roger West is prosecuting the case on behalf of the United States.
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Detox facility owner charged with health care fraudRead the Press Release
MIAMI – On Dec. 18, a detox facility owner was charged with health care fraud for allegedly defrauding the Federal Employees Health Benefits Program (FEHBP) of over $4 million.
According to the allegations in the information, Joseph Toro, 39, of Jupiter, Florida, owned and operated Reawakenings Wellness Center (RWC), a detox facility which provided substance abuse treatment to patients, including FEHBP beneficiaries. Allegedly, after RWC closed down in January 2018, Toro continued to submit insurance claims, using personal identifying information (PII) of former RWC patients, for substance abuse treatment that was never provided.
As a result of these false and fraudulent insurance claims, Toro allegedly defrauded the FEHBP, and Blue Cross Blue Shield (BCBS), which administers some FEHBP insurance plans, of more than $4 million in federal employee health benefits. As alleged, Toro used the fraud proceeds to buy properties, luxury vehicles and a luxury watch.
Toro’s initial appearance is scheduled for Dec. 22 at 11:00 a.m. in Fort Lauderdale. If convicted, Toro faces up to 10 years in federal prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Derek Holt of the U.S. Office of Personnel Management Office of the Inspector General (OPM OIG), announced the charges.
OPM OIG investigated the case. Assistant U.S. Attorney Joseph Egozi is prosecuting it. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.
An information contains mere allegations, and all defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-60237.
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Departamento de Justicia y Oficina para la Protección Financiera del Consumidor demandan al desarrollador y prestamista Colony Ridge, con sede en Texas, por ventas engañosas de tierras y financiamiento predatorioRead the Press Release
El Departamento de Justicia y la Oficina para la Protección Financiera del Consumidor (CFPB, por sus siglas en inglés) demandaron hoy a Colony Ridge, una empresa desarrolladora y prestamista con sede en Texas, por operar un esquema ilegal de ventas de tierras, y por hacer blanco de decenas de miles de prestatarios hispanos haciendo falsas declaraciones y ofreciéndoles préstamos depredadores.
“La demanda de hoy alega que Colony Ridge usó a consumidores hispanos como blanco de sus préstamos depredadores, mintió a los prestatarios acerca de la infraestructura para agua, cloacas y electricidad disponible en sus lotes, y se aprovechó de las barreras del idioma, efectuando la mayor parte de su mercadeo en español, mientras ofrecía importantes documentos transaccionales solamente en inglés”, dijo el Fiscal General Merrick B. Garland. “La discriminación crediticia afecta a familias y comunidades por generaciones, no es correcto, y no tiene cabida en nuestro país. Es por ello que, desde hace dos años, he lanzado la Iniciativa para Combatir la Exclusión Financiera en el Departamento de Justicia, y por lo que nos mantenemos determinados a continuar esta labor”.
La demanda presentada en un tribunal de distrito federal alega que Colony Ridge vende a familias desprevenidas tierras propensas a inundaciones sin agua, alcantarillado o infraestructura eléctrica, y que la empresa prepara a los prestatarios para que quiebren con préstamos que no pueden pagar. Aproximadamente uno de cada cuatro préstamos de Colony Ridge termina en ejecución hipotecaria, después de lo cual la empresa recompra las propiedades y las vende a nuevos prestatarios. El Departamento de Justicia y la CFPB buscan reparación para los prestatarios perjudicados por Colony Ridge y el fin inmediato de sus prácticas ilegales.
“Colony Ridge prometía cumplir el sueño americano, pero alegamos que en realidad solo le ha creado pesadillas a miles de familias trabajadoras hispanas, que esperaban poder construir sus hogares en la comunidad Terrenos Houston”, dijo Kristen Clarke, Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Esta demanda demuestra nuestro compromiso de hacer rendir cuentas a aquellos que, dentro de la industrias hipotecaria y financiera, busquen hacer blanco y explotar a compradores de vivienda solo por ser hispanos o no hablar bien inglés. A través de nuestra Iniciativa para Combatir la Exclusión Financiera, el Departamento de Justicia continuará agresivamente desmantelando prácticas depredadoras, engañosas e injustas en el otorgamiento de crédito, para salvaguardar los derechos de todo quienes busquen comprar una vivienda”.
“La demanda de la CFPB y el Departamento de Justicia en el tribunal federal alega un sinnúmero de cargos contra Colony Ridge de una serie de conductas ilegales y busca detener este plan preparado para fracasar que ha llevado a miles de familias a perder sus sueños de tener vivienda propia”, dijo el director de la CFPB, Rohit Chopra. “Nuestra investigación descubrió que Colony Ridge está hostigando a prestatarios con mentiras, recargando a las familias con préstamos abusivos para terrenos que la compañía sabe que se han inundado repetidamente con aguas residuales y carecían de infraestructura de servicios básicos”.
“Al usar aplicaciones de redes sociales del siglo 21 para hacer blanco de consumidores y engañarlos, Colony Ridge explotó algo que es tan antiguo como nuestro país, el sueño de un inmigrante a tener su propia vivienda”, dijo Alamdar S. Hamdani, Fiscal de los Estados Unidos para el Distrito Sur de Texas (SDTX, por sus siglas en inglés). “Como alegamos en la demanda, la práctica explotadora de Colony Ridge comenzaba con publicidad engañosa en plataformas de redes sociales, como Tik Tok, y terminaba con familias económicamente arruinadas, sin casa, cuyos sueños han sido destruidos. El SDTX, junto a la División de Derechos Civiles del Departamento de Justicia y la CFPB, ha entablado esta demanda como una promesa de trabajar incansablemente por las familias hispanas que fueron víctimas de las supuestas prácticas predatorias de otorgamiento de crédito de Colony Ridge, y como advertencia a quienes se sientan vulnerables para que no confíen en prestamistas que prometan financiamiento fácil, y luego roben sus ahorros y sueños”.
La demanda nombra como demandados a tres compañías afiliadas a Colony Ridge, así como también a Loan Originator Services, una empresa hipotecaria no bancaria, que tiene licencia del estado de Texas para otorgar préstamos. Colony Ridge ha desarrollado más de 40,000 lotes de tierras, esparcidos en un área no incorporada del condado Liberty en Texas, aproximadamente a 30 millas al noroeste de la cuidad de Houston. Colony Ridge mercadea estas subdivisiones como “Terrenos Houston” y “Terrenos Santa Fe”.
Según la demanda, Colony Ridge hace blanco de prestatarios hispanoparlantes: La compañía pública casi exclusivamente en español, frecuentemente usando Tik Tok u otros mensajes en redes sociales donde muestran, por ejemplo, banderas y música regional de países de Latino América. En sus piezas publicitarias, Colony Ridge les promete a los consumidores la posibilidad de cumplir su sueño de tener su propia vivienda, usando su propio financiamiento del vendedor; un préstamo fácil de obtener, que no requiere revisión de crédito y sólo exige un pequeño depósito.
La demanda alega que Colony Ridge ha inducido a decenas de miles de consumidores hispanos a tomar sus productos crediticios depredadores. Datos sobre ejecuciones hipotecarias y títulos de propiedad, desde septiembre del 2019 a septiembre del 2022, muestran que Colony Ridge inició ejecuciones hipotecarias en, al menos, 30% de los lotes de tierras financiados por el vendedor, en los primeros tres años después de la compra, mientras la mayoría de los préstamos fallaban incluso antes de tres años. Los datos confirman que Colony Ridge fue responsable de más del 92% de las ejecuciones hipotecarias registradas en el condado Liberty entre los años 2017 y 2022.
Específicamente, la demanda radicada hoy alega que Colony Ridge:
- Engaña a los prestatarios acerca de la infraestructura existente en los lotes que vende: Colony Ridge ha hecho creer falsamente que los lotes en las subdivisiones Terrenos de Houston, son vendidos con infraestructura ya instalada para servicios de agua, cloacas y electricidad. La demanda cita numerosos anuncios publicitarios, incluyendo videos en Tik Tok, en los cuales la compañía hace declaraciones como: “Terrenos Houston tiene todos los servicios de ciudad por cada terreno”. Solamente después que los solicitantes han pagado depósitos no reembolsables que Colony Ridge les informa que la propiedad podría no contar con dicha infraestructura, y hace esa declaración solamente en inglés.
- Vende lotes de tierra que se inundan por la lluvia o con aguas de cloaca: La demanda alega que los empleados de Colony Ridge no informan a los prestamistas de los riesgos de inundación de lotes que ya se han inundado repetidamente en el pasado, o falsamente aseguran que nunca se han inundado. De hecho, en algunas partes de la subdivisión Terrenos Houston, la lluvia provoca inundaciones severas, lo que causa que las aguas de cloaca corran a través o alrededor de las propiedades de los prestatarios, y dañen sus pertenencias.
- Hicieron blanco a consumidores hispanos con préstamos abusivos: A través del mercadeo directo al consumidor en sitios web, la participación en las redes sociales y el telemercadeo, Colony Ridge hizo blanco a consumidores hispanos. Luego Colony Ridge explota las barreras del idioma durante su proceso de ventas y utiliza tácticas de ventas de alta presión para presionar a los prestatarios para que obtengan su producto crediticio rápidamente. Los préstamos tienen tasas de interés exorbitantes. Entre 2017 y 2021, las tasas de interés de los préstamos de Colony Ridge oscilaron entre el 10,9% y el 12,9%, mientras que un préstamo estándar de tasa fija a 20 años promedió entre el 2,35% y el 4,05% durante el mismo período de tiempo. Y al otorgar el préstamo, Colony Ridge y Loan Originator Services no recopilaron la información necesaria para determinar si los solicitantes pueden pagar el préstamo.
- Exprime a los prestatarios en un ciclo que lleva a la ejecución hipotecaria: Al atrasarse las familias con sus pagos y caer en una ejecución hipotecaria, Colony Ridge puede “flip” o “voltear” las propiedades comprándolas nuevamente y revendiéndolas, muchas veces a precios más altos. Datos sobre ejecuciones hipotecarias y títulos de propiedad muestran que Colony Ridge volteó al menos, el 40 por ciento de las propiedades que vendió entre septiembre del 2019 y septiembre del 2022. En tres años, la compañía vendió aproximadamente 8,237 propiedades dos veces, vendió otras 3,267 tres veces y otras 2,067 cuatro o más veces.
- Explota las barreras del idioma que tienen los prestatarios: Mientras que Colony Ridge efectúa la mayor parte de su publicidad en español, cuando se trata de transacciones, ofrece importantes documentos solamente en inglés. Fallar en ofrecerles a los prestatarios traducciones exactas de contratos, pagarés y otros documentos, en el lenguaje en el cual habían efectuado la venta y explotar la capacidad limitada de hablar inglés de los prestatarios, viola leyes federales.
Acción de cumplimiento de ley
La demanda alega que los demandados ilegalmente discriminaron a los solicitantes basándose en su raza u origen nacional, violando la Ley de Vivienda Justa (FHA, por sus siglas en inglés). Según lo establecido en la FHA, el Departamento de Justicia tiene la autoridad de tomar acciones de ejercicio de ley contra compañías de bienes raíces, instituciones de crédito y otras entidades, cuyas prácticas discriminen en la realización de transacciones de bienes raíces, en la disponibilidad de vivienda, y en la oferta de servicios de vivienda. La demanda también alega que los demandados ilegalmente discriminaron a los solicitantes basándose en su raza u origen nacional, violando lo establecido en la Ley de Igualdad de Oportunidad de Crédito (ECOA, por sus siglas en inglés) y sus Normativa de Implementación B. Tanto el Departamento de Justicia como la CFPB tienen la autoridad para hacer cumplir la ECOA. Adicionalmente, la demanda alega que los actos y prácticas engañosas de los demandados violaron lo establecido por la Ley de Protección Financiera del Consumidor (CFPA, por sus siglas en inglés) del 2010 y la Ley de Divulgaciones Completas en Ventas de Tierras (ILSA, por sus siglas en inglés) y sus Normativas de Implementación K y J, sobre las cuales, la CFPB tiene la autoridad para ejercer su cumplimiento.
La demanda busca poner fin a la supuesta conducta ilegal de la compañía Colony Ridge, proveer reparaciones a los consumidores afectados e imponerle una multa monetaria civil que será depositada en el fondo de la CFPB para el alivio de víctimas (en inglés). Si los demandados son encontrados responsables, el monto de cualquier indemnización será determinado durante la litigación en la corte federal.
Toda persona que crea haber sido afectada por las prácticas de negocios de Colony Ridge Development LLC, Colony Ridge BV LLC, Colony Ridge Land LLC y Loan Originator Services LLC, debe llamar a la Línea de Ayuda Contra la Discriminación del Departamento de Justicia, al 1-833-591-0291, marque el 2 para hablar en español, marque el 3 para seleccionar discriminación en préstamos justos y marque el 1 para dejar un mensaje de Colony Ridge, o escriba a la dirección email [email protected].
Esta demanda forma parte de la Iniciativa para Combatir la Exclusión Financiera del Departamento de Justicia. La exclusión es una práctica ilegal, a través de la cual, los prestamistas les niegan a comunidades de color, acceso equitativo a oportunidades de préstamos y crédito. La exclusión reversa ocurre cuando los prestamistas ofrecen tasas de interés infladas y términos de crédito injustos a comunidades de color. Ambas prácticas evitan que estas comunidades alcancen una propiedad de vivienda sostenible, y les niega la oportunidad de construir riqueza.
La Iniciativa para Combatir la Exclusión Financiera es el esfuerzo de cumplimiento de ley más agresivo y coordinado del Departamento de Justicia para enfrentar toda forma de exclusión. Desde el año 2021, la misma ha obtenido más de $100 millones en 10 acuerdos de resolución alcanzados con bancos e instituciones crediticias, para proveer de oportunidades de acceso al crédito a comunidades de color en Houston, Memphis (Tennessee), Philadelphia, Camden (New Jersey), Wilmington (Delaware), Newark (New Jersey), Los Angeles, Columbus (Ohio), Tulsa (Oklahoma), Rhode Island, y Jacksonville (Florida). El Departamento de Justicia se ha asociado con las Oficinas de los Fiscales Federales, agencias federales reguladoras de la industria financiera, incluyendo a la CFPB, y las Oficinas de fiscalías estatales, para hacer cumplir las leyes federales de equidad en el crédito que prohíben la exclusión. Esta demanda, es la primera acción contra la exclusión reversa, tomada bajo la iniciativa.
La página web del Departamento de Justicia ofrece recursos sobre la equidad en el crédito. El Departamento de Justicia recibe quejas sobre discriminación en la página www.civilrights.justice.gov/. Quejas acerca de discriminación en vivienda o crediticia también pueden ser enviadas escribiendo a la dirección email [email protected].
La página web de la CFPB ofrece recursos sobre la discriminación en el crédito (en inglés) e hipotecas. Los consumidores pueden enviar quejas en la página de la CFPB, o llamando al (855) 411-CFPB (2372). Se les alienta a aquellos empleados que crean que las compañías donde trabajan han violado leyes de protección financiera al consumidor a enviar la información que tengan a la dirección [email protected].
colony_ridge_complaint.pdfDentist Sentenced to Three Years in Prison for Defrauding the NBA Players’ Health and Welfare Benefit Plan of More Than $1.1 MillionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that AAMIR WAHAB was sentenced to three years in prison for his role in a scheme to defraud the National Basketball Association (“NBA”) Players’ Health and Welfare Benefit Plan (the “Plan”). U.S. District Judge Valerie E. Caproni imposed the sentence.
U.S. Attorney Damian Williams said: “Aamir Wahab exploited his dental practice to facilitate a million-dollar health care fraud scheme. Wahab’s goals were ambitious, telling a codefendant to ‘get [him] the whole NBA,’ but the career prosecutors of this Office and our law enforcement partners were relentless in bringing Wahab and his codefendants to justice.”
According to the Information, public court filings, and statements made in court:
The NBA Players’ Health and Welfare Benefit Plan is a health care plan providing benefits to eligible active and former players of the NBA. WAHAB is a dentist licensed in California who owns and operates a dental practice (“Dental Office-1”) located in Beverly Hills, California.
From at least in or about 2018, up to and including at least in or about 2019, WAHAB participated in a scheme with several other former NBA players, including Terrence Williams and Keyon Dooling, to defraud the Plan.[1] WAHAB’s role in the scheme was to document that former NBA players or their spouses received certain dental services, when, in reality, the services were not provided.
WAHAB accomplished his role in the scheme in two ways. First, WAHAB created, and caused others to create, fraudulent invoices for former NBA players or their spouses. The former NBA players would then submit the fraudulent invoices to the Plan to request reimbursements that they were not entitled to. Second, WAHAB charged, and caused others to charge, the Plan-issued debit cards of former NBA players. The Plan-issued debit cards were intended to be used by Plan participants to pay for eligible medical services at the point of service. However, WAHAB charged the Plan-issued debit cards of former NBA players for medical services that were never actually provided. In return for his participation in the scheme, WAHAB received a portion of the fraud proceeds.
As evidenced by text messages recovered in the search of WAHAB’s cellular phone, WAHAB was eager to take part in the fraud scheme, in the hopes of making illicit profits. When Dooling wrote to WAHAB, “Let’s make this thing grow sir,” WAHAB responded “Lol I’m down bro Get me the whole NBA.” Similarly, WAHAB and Williams had explicit conversations about the creation of fraudulent invoices. In March 2019, Williams wanted WAHAB to charge co-conspirators’ Plan-issued debit cards more frequently, but WAHAB was initially reluctant. While disagreeing about whether to charge the debit cards, Williams and WAHAB also argued about whether Williams owed WAHAB approximately $12,000 in fraud proceeds. Annoyed and angry, Williams messaged WAHAB: “YOUVE MADE THOUSANDS OF F[----]ING DOLLARS TO PRINT A[N] INVOICE WITH A NAME AT THE TOP like you f[----]ing kidding me[?!] We not gonna act like you doing dental work.”
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In addition to his prison term, WAHAB, 44, of Los Angeles, California, was ordered to forfeit $458,576.50 and pay restitution of $1,192,522.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Ryan B. Finkel and Daniel G. Nessim are in charge of the prosecution.
[1] Williams and Dooling pled guilty. Williams was sentenced to 10 years in prison, and Dooling was sentenced to 30 months in prison.
Convicted Felon is Sentenced to Federal Prison for Illegally Possessing Fourteen FirearmsRead the Press Release
PROVIDENCE, R.I. – A convicted felon who leaped into the Providence River in an effort to evade arrest in February 2022, shortly after members of the East Providence Police Department Special Investigations Unit (SIU) watched him place a suitcase containing fourteen firearms in the trunk of a vehicle, was sentenced today to six-and-half years in federal prison, announced United States Attorney Zachary A. Cunha.
According to information presented to the court, on February 17, 2022, SIU surveillance observed James Darosa, 30, exit an East Providence residence and place the gun-laden suitcase in the trunk of a rideshare vehicle, and then board the vehicle as a passenger. A short time later, East Providence Police initiated a traffic stop of the vehicle.
As officers approached, Darosa got out of the rear passenger door and jumped off a bridge into the Providence River. With assistance from Providence Police and Rhode Island State Police, Darosa was located along the shoreline and arrested. The suitcase that Darosa had placed in the trunk of the vehicle was found to contain fourteen guns - thirteen handguns, four of which were reported stolen and one of which had an obliterated serial number, and one semi-automatic rifle.
On January 5, 2023, Darosa pleaded guilty to a federal charge of being a felon in possession of firearms. He was sentenced today by U.S. District Court Judge William E. Smith to a total of 78 months in federal prison, to be followed by three years of federal supervised release.
The case in U.S. District Court in Providence was prosecuted by Assistant United States Attorney G. Michael Seaman.
United States Attorney Cunha thanks the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Providence Police Department, and the Rhode Island State Police for their investigation and assistance in this matter.
This case was being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Convicted Felon from Eufaula Sentenced to 87 Months in Federal Prison for Illegally Possessing FirearmsRead the Press Release
MONTGOMERY, ALABAMA – On December 19, 2023, a federal judge sentenced 38-year-old Daniel Jermaine Parkman, a resident of Eufaula, Alabama, to 87 months in prison for possessing a firearm after being convicted of a felony offense, announced Acting United States Attorney Jonathan S. Ross. In addition, the judge ordered that Parkman serve three years of supervised release following his prison term. There is no parole in the federal system.
In his plea agreement, Parkman admitted to possessing a firearm on at least two separate occasions, despite being prohibited to do so as a convicted felon. First, in August 2018, Parkman brought a handgun to a pawn shop in Eufaula to sell. Later, in December 2021, law enforcement in Eufaula responded to a domestic dispute call that reported shots had been fired. Officers spotted Parkman near the scene in a vehicle. Parkman initially fled but was apprehended after a short foot chase. The officers later found another firearm in Parkman’s car. On September 14, 2023, Parkman pleaded guilty in federal court to two counts of being a felon in possession of a firearm.
This case was brought as a 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. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Eufaula Police Department investigated this case, which Assistant United States Attorney Russell T. Duraski prosecuted.
Convicted Felon Sentenced to Federal Prison for Unlawfully Possessing Three FirearmsRead the Press Release
POCATELLO – Robert Michael Davis, 32, formerly of Sandpoint, was sentenced to over three years in federal prison for unlawful possession of three firearms by a convicted felon, U.S. Attorney Josh Hurwit announced today.
According to court records, Davis was initially arrested on a parole warrant. Officers with the Idaho Falls Police Department attempted to contact Davis to request that he move his car that was blocking snow removal equipment. Davis ran from officers and was apprehended after a short chase. He was identified and officers learned that he was on parole with the Idaho Department of Correction. Davis told the officers that firearms would be found in his car. He admitted that he was a convicted felon and is prohibited from possessing guns. Law enforcement searched the vehicle and located drug paraphernalia, three rifles, ammunition, and a silencer.
On December 19, 2023, Chief U.S. District Judge David C. Nye sentenced Davis to 39 months in federal prison. Davis was also ordered to serve three years of supervised release after his prison sentence is complete.
“Part of our public safety mission is enforcing the law that prohibits dangerous felons from possessing firearms,” said U.S. Attorney Hurwit. “I am proud of the work that our prosecutors and law enforcement partners do every day to keep our streets safe as part of the Project Safe Neighborhoods program.”
“This sentence holds Davis accountable for his illegal weapons activity,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “We’re grateful for the collaboration with our federal, state and local law enforcement partners in Idaho to sentence convicted felons with weapons in the interest of community safety.”
U.S. Attorney Hurwit commended the cooperative efforts of the Idaho Falls Police Department and Homeland Security Investigations (HSI) in Idaho Falls, who investigated the case. Assistant U.S. Attorney Blythe McLane prosecuted this case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Convicted Armed Bank Robber Pleads Guilty to Fort Myers Armed Bank RobberyRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces that Grant Elmore Davis, Jr. (71, Mansfield, Ohio) today pleaded guilty to armed bank robbery, discharging a firearm during and in relation to a crime of violence, and possessing a firearm and ammunition as a convicted felon. Davis faces a minimum mandatory penalty of 25 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the court documents, on October 31, 2023, Davis entered a Truist Bank in Fort Myers and discharged a handgun while making verbal commands to the teller to give him money from the cash register. After obtaining money from the teller, Davis fled the bank. He was apprehended by authorities the following day. In November 2001, Davis was convicted of armed bank robbery and using and carrying a short-barreled shotgun in relation to a crime of violence. As a convicted felon he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Lee County Sheriff’s Office and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Mark Morgan.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Columbus man pleads guilty to crimes related to sexually exploiting & sextorting more than 25 identified victimsRead the Press Release
COLUMBUS, Ohio – A Columbus man pleaded guilty in U.S. District Court today to crimes related to sexually exploiting and sextorting more than 25 known victims in at least three states.
Lorenzo A. Winfield, 22, of Columbus, pleaded guilty to sexually exploiting minors, possessing child pornography and communicating interstate with the intent to extort. As part of his plea, the parties involved have recommended a sentence of 23 to 27 years in prison.
According to court documents, from at least 2016 until 2021, Winfield used extortion to solicit and collect explicit photos of underage girls at his Columbus high school, the Arts and College Preparatory Academy (ACPA), where he was known as the “ACPA Hacker”.
Winfield would contact students at ACPA and demand nude photographs of them. He would also hack into victims’ social media accounts and use the photos he obtained against them. Winfield would further tell the victims he had nude photos of them or other students that he would distribute to friends or family unless the victims complied. On numerous occasions, Winfield followed through on these threats, distributing sexually explicit photos of his victims to others to prove he was serious with his threats in a bid to contain more content. In addition, Winfield told the victims to send him sexually explicit images or videos in order to regain control of their own social media accounts.
Winfield used several social media accounts of his own to participate in the exploitation and extortion of the victims that have been identified thus far. His accounts were active across platforms such as Discord, Facebook, Instagram, Snapchat, Skype and Google Hangouts.
Winfield was separately investigated by the FBI Washington Field Office for extorting and exploiting at least four victims in Fairfax and Prince William counties in Virginia.
For example, one identified victim was approximately 11 years old at the time Winfield first made contact with her. Winfield sent nude photos of the victim to students at a Virginia middle school and eventually, as she got older, to students at her high school. The victim originally met Winfield via a social media game. Winfield threatened to harm her family if she did not comply with his requests for sexually explicit photos and videos and continued to exploit and extort her until his arrest.
Similarly, Winfield exploited at least one victim in College Station, Texas.
If you believe you were also a victim of Winfield’s crimes, or have information related to this case, please contact the FBI at (614) 849-1733.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the guilty plea offered this morning before U.S. Magistrate Judge Norah McCann King. U.S. Attorney Parker and Special Agent in Charge Rivers commended the cooperative investigation in this case with FBI divisions and state and local law enforcement agencies in Ohio, Virginia and Texas. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
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Columbia Man Sentenced to Federal Prison for Drug and Firearm ChargesRead the Press Release
COLUMBIA, S.C. — Jalon Amari Britt, 22, of Columbia, was sentenced to 100 months – more than eight years – in federal prison after pleading guilty to being a felon in possession of firearms and ammunition and possession with intent to distribute marijuana.
Evidence presented in Court revealed that on March 30, 2022, deputies with the Richland County Sheriff’s Department were conducting surveillance on Britt at his apartment to serve him with outstanding arrest warrants. During surveillance, officers observed Britt leave his apartment unit and enter a car registered in his name. A traffic stop was initiated, and when the deputy approached the vehicle, he smelled marijuana. A search was conducted of Britt and his vehicle, and law enforcement recovered a bag of marijuana, two cell phones, and a large sum of cash.
Investigators also obtained and executed a search warrant of Britt’s apartment which resulted in the recovery of approximately eight pounds of marijuana, two pistols with extended magazines, two loaded rifles, and various rounds of assorted ammunition. The investigation revealed that Britt was the sole occupant of the residence and that one of the pistols had previously been reported stolen.
Evidence was also presented that Britt was a validated member of a street gang. Federal law prohibits Britt from possessing firearms and ammunition based on prior state convictions that include two convictions for Failure to Stop for Blue Lights, Breaking into Motor Vehicle or Tanks, Pumps, Where Fuel, Lubricants Stored, Grand Larceny, Value More Than $2,000.00, but Less Than $10,000.00, and Use of Vehicle Without Owner’s Consent for Temporary Purposes.
Senior United States District Judge Terry L. Wooten sentenced Britt to 100 months imprisonment, to be followed by a two-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Richland County Sheriff’s Department, and the Lexington County Sheriff’s Department. Assistant U.S. Attorney Ariyana N. Gore is prosecuting the case.
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Columbia County Man Sentenced to 85 Months for Receiving and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Christopher Stickles, age 35, of Copake, New York, was sentenced today to 85 months in prison for receiving and possessing child pornography.
United States Attorney Carla B. Freedman and Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his previously entered guilty plea, Stickles admitted that between January 2021 and August, 2022, he accessed the Internet in order to visit file-sharing sites and websites that contained child pornography. Stickles further admitted that while on these sites, he downloaded numerous still image and video files that contained child pornography.
United States District Judge Anne M. Nardacci also sentenced Stickles to a 15-year term of supervised release to begin after he serves his term of imprisonment, and to pay a total of $6,000 in restitution to two victims of the offenses of conviction. Stickles will be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI’s Child Exploitation Task Force, which includes Special Agents of the FBI, and state and local police investigators, including from the New York State Police. Assistant U.S. Attorney Rick Belliss prosecuted the case as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
Colorado Man Arrested for Attempting to Provide Material Support to ISISRead the Press Release
DENVER – Humzah Mashkoor, 18, of Westminster, Colorado, is charged with attempting to provide material support to a designated foreign terrorist organization and made his initial appearance in federal court yesterday.
According to court documents, Mashkoor was arrested on Monday, December 18 at the Denver International Airport before he could board a flight for the first leg of an overseas trip. According to the affidavit in support of the criminal complaint, Mashkoor was traveling to the United Arab Emirates, where he intended to stay until he continued on to either Afghanistan or Syria to serve as a fighter for ISIS.
The FBI Denver Field Office is investigating this case.
Assistant U.S. Attorney Laura Cramer-Babycz for the District of Colorado is prosecuting the case, with the assistance of Jennifer Levy of the National Security Division’s Counterterrorism Section.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.