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Monday 11 December 2023
Justice Department Announces Distribution of over $158.9M to Nearly 25,000 Victims of Madoff Ponzi SchemeRead the Press Release
The Justice Department announced today that the Madoff Victim Fund (MVF) began its ninth distribution of over $158.9 million in funds forfeited to the U.S. government in connection with the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme.
In this distribution, payments will be sent to 24,875 victims across the globe, bringing their total recoveries to 91% of their fraud losses. Through its nine distributions, MVF has paid over $4.22 billion to 40,843 victims as compensation for losses they suffered from the collapse of BLMIS.
“The department’s Madoff Victim Fund has exceeded expectations in the level of recovery provided to victims of the fraud committed by Bernard Madoff, which devastated thousands of lives,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “To date, the Madoff Victim Fund has assisted more than 40,800 individual victims in recovering over 90% of victim losses. The department continues to prioritize the use of civil asset forfeiture to ensure compensation is available for victims of fraud.”
“In 2009, when the Southern District of New York charged Bernie Madoff for his $64 billion securities fraud ‘Ponzi’ scheme, it was one of the most prolific financial crimes in American history. Among Madoff’s many victims were not only wealthy and institutional investors, but charities and pension funds alike — some of which invested money with Madoff on behalf of individuals working paycheck-to-paycheck who were relying on their pension accounts for their retirements,” said U.S. Attorney Damian Williams for the Southern District of New York. “The financial toll on those who entrusted their money with Madoff was devasting, and this office’s unprecedented efforts to return money to Madoff’s victims has now resulted in clawbacks of 91% of fraud losses to their rightful owners. I commend the career prosecutors of this office for today’s distribution of over $158 million and for their relentless pursuit of justice for victims of Wall Street fraudsters, like Bernie Madoff.”
According to court documents and information presented in related proceedings, for decades, Bernard L. Madoff used his position as chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions of dollars from his clients. On March 12, 2009, Madoff pleaded guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family, and select members of his inner circle.
On June 29, 2009, Madoff was sentenced to 150 years in prison for running the largest fraudulent scheme in history. Of the over $4 billion that has been made available to victims, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased Madoff investor, Jeffry Picower. An additional $1.7 billion was collected as part of a deferred prosecution agreement with JPMorgan Chase Bank N.A. and civilly forfeited in a parallel action. The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family, and from civil and criminal forfeiture actions against Madoff, Peter B. Madoff, and their co-conspirators.
The MVF’s payouts would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section, U.S. Attorney’s Office for the Southern District of New York, and FBI in the prosecution of Madoff’s crimes and the recovery of assets supporting the forfeiture in the case.
The MVF is overseen by Richard Breeden, former chairman of the U.S. Securities and Exchange Commission, who serves as Special Master appointed by the Justice Department to assist in connection with the victim remission proceedings. Breeden and his team at MVF provided essential assistance to evaluate over 68,000 remission petitions involving billions in cash flows, and to compute each victim’s fraud losses to enable payments to be made.
More information about MVF and its compensation to victims of BLMIS is at www.madoffvictimfund.com, such as eligibility criteria, process updates, and frequently asked questions. Further questions may be directed to the MVF at 866-624-3670 or [email protected].
Jodi Lathrop Pleads Guilty to Tax Evasion and Wire FraudRead the Press Release
Burlington, Vermont – The Office of the United States Attorney announced that Jodi Lathrop, 53, of Bristol, Vermont, pleaded guilty today in United States District Court in Burlington to charges of wire fraud and tax evasion. U.S. District Judge William K. Sessions III released Lathrop on conditions pending sentencing, which is set for April 1, 2024.
On January 24, 2023, the United States Attorney filed an indictment charging Lathrop with committing a scheme to embezzle from Claire Lathrop Band Mill (CLBM) d/b/a Lathrop Forest Products, a wood-logging and wood-chipping company based in Bristol, Vermont and co-owned by Lathrop’s husband and Lathrop’s brother-in-law. Lathrop served as CLBM’s bookkeeper, handling accounts receivable, accounts payable, and payroll.
According to statements made in court, between June 2014 and April 2020, Lathrop engaged in a scheme to embezzle from CLBM. Lathrop’s scheme included Lathrop writing unauthorized checks from the CLBM bank accounts to pay her personal credit card bills and Lathrop making unauthorized charges on CLBM credit cards to pay her personal expenses. For example, in July 2018, Lathrop charged $3,466.95 worth of household appliances on a CLBM credit card, knowing the charge was unauthorized, and had the appliances shipped to her personal residence for use in her personal residence.
Lathrop concealed the embezzlement in several ways. Lathrop falsely recorded the unauthorized checks in CLBM’s books as checks for legitimate business expenses, wrote false notes on some checks so they appeared to be for legitimate business expenses, and caused CLBM to file false tax returns which falsely deducted Lathrop’s personal expenses as legitimate business expenses.
Lathrop also filed false personal tax returns for each of the years from 2014 to 2019. Lathrop failed to report as income the embezzled CLBM funds, and therefore evaded paying personal income taxes that she owed to the Internal Revenue Service.
The indictment alleges that Lathrop embezzled more than $400,000 from CLBM over the course of the scheme and evaded personal income taxes in the amount of approximately $141,000. The actual amount of Lathrop’s embezzlement and evaded taxes will be determined by the U.S. District Court at sentencing.
As part of her plea agreement, Lathrop agreed to sell approximately 270.5 acres of land she owns and to use the proceeds to pay any restitution she is ordered to pay to the victims of her crimes.
Lathrop faces up to 20 years of imprisonment and 3 years of supervised release. The actual sentence will be advised by the Federal Sentencing Guidelines and the United States Code.
United States Attorney Nikolas P. Kerest commended IRS Criminal Investigation, Homeland Security Investigations and the Bristol Police Department for their investigation of this case.
The prosecutor is Assistant U.S. Attorney Kimberly Ang. Lathrop is represented by Mark Kaplan, Esq.
Jefferson County Man Sentenced to over 19 Years for Possessing Child PornographyRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Bessemer man on child pornography charges, announced U.S. Attorney Prim F. Escalona and FBI Special Agent in Charge Carlton L. Peeples.
U.S. District Court Judge Madeline Hughes Haikala sentenced Jacquez Jarrone Conley, 24, to 235 months in prison followed by 25 years of supervised release. In August 2023, Conley pleaded guilty to one-count of possession of child pornography. This conviction will require him to register as a sex offender in accordance with the Sex Offender Registration and Notification Act (SORNA).
According to the plea agreement, in July 2019, Conley was involved in an online social media group sharing child pornography. During that same time, FBI received a CyberTipline Report from the National Center for Missing and Exploited Children (NCMEC) regarding child sexual abuse material located on his Facebook account. In August 2019, federal search warrants were obtained for Conley’s residence in Bessemer and his Facebook account. A total of 18 digital devices were seized from the residence. Forensic analysis of the digital devices and his Facebook account revealed 701 images and 741 videos of child pornography.
“There is no place in our communities for those who prey on vulnerable children,” U.S. Attorney Escalona said. “The success of cases like this come from the strong partnerships with our federal, state, and local law enforcement. We have one common goal – to pursue justice for child victims. Thanks to the collaborative efforts of our law enforcement partners in Alabama and Washington, D.C., this predator has been held accountable for his actions.”
“This sentence sends a strong message that the FBI will continue to aggressively identify, investigate, and hold accountable those who produce, possess, and distribute child pornography, SAC Peeples said.” This case highlights the importance and benefit of law enforcement partnerships and task forces. I would like to thank all our local, state, and federal partners who assisted in this case and the men and women of the FBI for their relentless efforts in protecting our children.”
FBI Birmingham's Child Exploitation Human Trafficking Task Force (CEHTTF) investigated the case, with the assistance of FBI Washington and Metropolitan Police of the District of Columbia’s CEHTTF, the Alabama Law Enforcement Agency, Jefferson County Sheriff’s Office, and Bessemer Police Department. Assistant U.S. Attorneys R. Leann White and Daniel McBrayer prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Great Falls bookkeeper sentenced to prison for defrauding two businesses of approximately $500,000Read the Press Release
GREAT FALLS — A Great Falls woman who admitted to defrauding two businesses of approximately $500,000 while working as a bookkeeper to pay her personal expenses was sentenced today to 25 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Tara Durnell, 63, pleaded guilty in July to wire fraud and to mail fraud.
Chief U.S. District Judge Brian M. Morris presided. The court also ordered $492,309 in total restitution. Durnell was remanded into custody.
In court documents, the government alleged that beginning in at least 1997, Durnell embezzled from her employer, Kronebusch Electric, Inc., (KEI) a small company in Conrad, where she worked as a bookkeeper, to fund her personal lifestyle. Durnell used her access to pre-signed company checks and company bank accounts to pay hundreds of thousands of dollars toward personal credit card debt, personal car loan payments and debts belonging to family members. To conceal her scheme, Durnell used her access to the company’s accounting software to hide her illicit transactions and make them appear like legitimate businesses expenses. In total, Durnell embezzled almost $500,000 from KEI.
Durnell left employment with KEI when the scheme was discovered and found work as a bookkeeper with Mitchell’s Crash Repair in Great Falls. In January 2022, Durnell again used her access to the business’s pre-signed checks and bank accounts and to pay tens of thousands of dollars toward personal expenses. Durnell embezzled approximately $15,491 from Mitchell’s Crash Repair.
Assistant U.S. Attorney Jeffrey K. Starnes prosecuted the case. The FBI, Montana Division of Criminal Investigation and Great Falls Police Department conducted the investigation.
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Fort Worth Drug Trafficker Sentenced to 30 Years in Federal PrisonRead the Press Release
Leader of drug trafficking organization was sentenced to 30 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Alonzo Smith, 29, was charged in May 2023 via criminal complaint. He pleaded guilty in July to conspiracy to possess of a controlled substance with intent to distribute and was sentenced Thursday by U.S. District Judge Mark Pittman.
“Violent gangs that flood our neighborhoods with illicit drugs are a true threat to public safety,“ said Homeland Security Investigations (HSI) Dallas Special Agent in Charge Lester R. Hayes, Jr. “ The lengthy sentence imposed on this defendant highlights our commitment to disrupting and dismantling these transnational criminal organizations seeking to exploit our communities for financial gain.”
According to court documents, Mr. Smith and others – most heavily armed 5x2 Hoova Crip gang members - were responsible for operating multiple drug houses in the Fort Worth area. The residences were used solely to store and distribute large amounts of methamphetamine, cocaine and heroin. During a search warrant at one of the residences, law enforcement located 800 grams of methamphetamine, 188 grams of cocaine, 496 grams of black tar heroin and 300 grams of fentanyl.
Homeland Security Investigations and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted the case.
Fort Washakie man arraigned on assault and firearm chargesRead the Press Release
Julien Antelope, age 21, of Fort Washakie, Wyoming, was arraigned on Dec. 8 for assault with a dangerous weapon with intent to do bodily harm; assault resulting in serious bodily injury; and using, carrying, or discharging a firearm during and in relation to a crime of violence. Antelope pleaded not guilty. A trial has been set for Feb. 12, 2024, before U.S. District Court Judge Alan B. Johnson.
Antelope was detained at the request of the government and remanded to the custody of the U.S. Marshals Office. If convicted, Antelope faces 10 years to life in prison, three to five years of supervised release and up to a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime is being investigated by the Bureau of Indian Affairs and the FBI. The case is being prosecuted by Assistant U.S. Attorney Michael J. Elmore.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 23-CR-00008
Former Miami-Dade Police Officer Sentenced for COVID-19 Relief FraudRead the Press Release
MIAMI – Samuel Harris, 43, who was a police officer with the Miami-Dade Police Department (“MDPD”), was sentenced today, Dec. 11, to 4 months in prison, followed by 4 months in home detention by Senior U.S. District Judge Robert N. Scola Jr., after previously pleading guilty to wire fraud in connection with his fraudulent applications for a Paycheck Protection Program (PPP) loan, an Economic Injury Disaster Loan (“EIDL”), and an EIDL advance.
According to the facts admitted at the change of plea hearing on July 3, Harris, who was a full-time MDPD police officer, also was the owner and president of Oregen Digital, Inc. (“Oregen”). Working with an associate, on June 29, 2020, Harris submitted and caused to be submitted a false and fraudulent PPP loan application falsely claiming that Oregen had 10 employees and a monthly payroll of over $50,000 per month. In support of this application, Harris submitted a fraudulent IRS Form W-3 falsely claiming that Oregen had paid 10 employees over $602,000 in wages during 2019. As a result of this false and fraudulent application, Harris obtained a $125,579 PPP loan from a Georgia-based SBA-approved PPP lender.
Harris also admitted that on June 30, 2020, he caused to be submitted to the SBA a false and fraudulent EIDL application in the name of Oregen, seeking both an EIDL and an EIDL advance. In this fraudulent application, Harris falsely claimed that for the twelve-month period prior to January 31, 2020, Oregen had gross revenues of over $859,000 and 10 employees. As a result of this fraudulent application, Oregen obtained from the SBA a $10,000 EIDL advance that did not need to be repaid and $149,900 in EIDL loan proceeds.
At sentencing, Judge Scola also ordered that Harris serve 3 years of supervised release, including 4 months in home detention, after Harris completes his prison term, and that Harris make full restitution in the amount of $285,479.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region, Miami-Dade Police Department (MDPD) Interim Director Stephanie V. Daniels of, and Inspector General Felix Jimenez of the Miami-Dade County Office of Inspector General (MDC OIG)announced the guilty plea.
The FBI’s Miami Area Corruption Task Force, which includes task force officers from the MDPD and MDC-OIG, investigated the case in conjunction with IRS-CI and SBA OIG. Assistant U.S. Attorney Edward N. Stamm prosecuted the case.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-20189.
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Former LASD Deputy Sentenced to Two Years in Federal Prison for Falsely Imprisoning a Victim and Then Trying to Cover up His CrimeRead the Press Release
LOS ANGELES – A former Los Angeles County Sheriff’s Department (LASD) deputy was sentenced today to 24 months in federal prison for depriving a 23-year-old man of his civil rights in the spring of 2020 by falsely imprisoning him and then lying and cover up his illegal actions.
Miguel Angel Vega, 33, of Corona, was sentenced by United States District Judge Percy Anderson, who also fined Vega $5,000.
At today’s hearing, Judge Anderson said Vega’s conduct had “embarrassed” the Sheriff’s Department and “every man and woman that puts on a badge every day and puts their lives at risk” and that today’s sentence sends “a clear message that there are serious consequences for law enforcement officers who abuse their power and violate their sworn oath to uphold the law.”
Vega pleaded guilty on September 6 to one count of deprivation of rights under color of law.
“When law enforcement officers abuse their power, they tear at our social fabric by undermining public trust in the equal application of the law,” said United States Attorney Martin Estrada. “By violating his sacred oath to uphold the law, Vega also betrayed his fellow deputies, the vast majority of whom sacrifice every day to keep our community safe.”
“The defendant swore an oath to protect the public he served, but instead chose to violate the civil rights of an innocent young man,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Today’s sentencing exemplifies the FBI’s commitment to protecting those who are illegally accused under the color of law, while restoring trust in the overwhelming majority of police professionals who devote themselves to serving their communities with integrity.”
“When the Sheriff’s Department became aware of allegations of misconduct against Miguel Vega, criminal and administrative investigations were initiated,” said Los Angeles County Sheriff Robert Luna. “The Department assisted federal agencies during the criminal investigation, contributing to their indictment. The Sheriff’s Department is committed to holding employees accountable for their actions and expects them to exhibit the highest moral and ethical standards when serving our communities.”
On the afternoon of April 13, 2020, Vega and his then-partner, Christopher Blair Hernandez, 38, were in uniform and on patrol in an LASD SUV near Wilson Park in Compton as part of their official duties at LASD.
Vega and Hernandez saw two young Black males outside a skateboard park enclosed by a tall wrought-iron fence within Wilson Park. Vega and Hernandez got out of the vehicle, approached the individuals, and ordered them to lift their shirts to search for firearms, which the individuals did not possess.
At this point, the victim – identified in court documents as “J.A.” – began yelling at Vega and Hernandez to leave the young Black males alone, and Vega began yelling back at the victim, challenging him to a fight. Soon afterward, to teach J.A. a lesson, Vega and Hernandez illegally detained him in their patrol vehicle without telling him that he was under arrest, handcuffing J.A., informing him of his rights, or securing his seatbelt in the LASD SUV. After driving away from the park, Vega continued to taunt and threaten J.A., including threatening to drop him off in gang territory where J.A. would be beaten. J.A. was never given a valid reason for his detention, and in fact there was no legitimate basis for the false imprisonment.
While still unlawfully confined and unsecured in the back of the patrol vehicle, J.A. sustained a cut above his eye during a subsequent police car chase when Vega crashed his LASD SUV into a wall in an alley while chasing a young male on a bicycle whom Vega believed may have possessed a firearm. After the crash, Vega told J.A. to flee despite J.A. suffering a head injury and sustaining a cut above his eye that required stitches. Vega initially lied to a supervising sergeant that no one else had been in the patrol vehicle at the time of the collision. Then, after J.A. was independently re-detained by other deputies responding to the scene, Vega lied and told the sergeant that he and Hernandez originally detained J.A. for being under the influence of a controlled substance.
As further part of the coverup, Vega and Hernandez had another deputy issue J.A. a citation for being under the influence of methamphetamine, even though Vega and Hernandez knew that this accusation was false. Vega and Hernandez later filed false incident reports to cover up their illegal conduct, repeating the same and other lies about the events of the day, including that J.A. appeared to be under the influence of a stimulant and threatened people at the park and that Vega had transferred J.A. to another patrol vehicle after the collision instead of directing J.A. to flee the scene.
Hernandez pleaded guilty on July 24 to one count of conspiracy pursuant to a cooperation plea agreement. His sentencing hearing is scheduled for January 8, 2024, at which time he will face a statutory maximum sentence of five years in federal prison.
The FBI investigated this matter. The LASD’s Internal Criminal Investigations Bureau and Internal Affairs Bureau provided substantial assistance.
Assistant United States Attorneys J. Jamari Buxton and Brian R. Faerstein of the Public Corruption and Civil Rights Section prosecuted this case.
Former Danbury Couple Sentenced to Prison for Firearm OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that two former Danbury residents were sentenced today in New Haven federal court for firearm offenses. U.S. District Judge Jeffrey A. Meyer sentenced DARNELL MACON, Sr, 46, to 18 months of imprisonment and three years of supervised release, and KHARISMA BROOKS, 24, to 12 months and one day of imprisonment, followed by three years of supervised release.
According to the evidence presented during their trial last year, on May 27, 2021, Macon and Brooks visited a federally licensed firearms dealer in Kent, Connecticut, where Macon possessed, and then Brooks purchased, a Smith & Wesson, Model SD40VE, .40 caliber semi-automatic pistol. In 2002, Macon was convicted in New York of two counts of assault in the first degree, and in 2003, he was convicted in New York of criminal possession of a weapon in the second degree.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On June 7, 2021, ATF special agents investigating the firearm purchase on May 27, and another firearm purchased by Brooks in Stratford on May 25, visited Macon’s and Brooks’ Danbury residence and recovered the two firearms, which were located in Macon’s bedroom closet.
On October 31, 2022, Macon was found guilty of one count of unlawful possession of a firearm by a felon, and Brooks was found guilty of one count of aiding and abetting the unlawful possession of a firearm by a felon. The jury found Brooks not guilty of one count of making a false statement during the purchase of a firearm.
Macon and Brooks, who are released on bond and currently residing in Springfield, Massachusetts, are required to report to prison on January 15, 2024.
This investigation was conducted by ATF, with the assistance of the Danbury Police Department. The case was prosecuted by Assistant U.S. Attorneys A. Reed Durham and David J. Sheldon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. 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.
Former Claims Adjuster Sentenced to Five Years in Federal Prison for Providing Assistance to Individuals Who Carried Out Robberies, Shootings, While Dressed as Police OfficersRead the Press Release
Tampa, Florida – U.S. District Judge Susan Bucklew has sentenced Jasmine Weber (28, Tampa) to five years in federal prison for conspiracy to commit Hobbs Act Robbery. Weber had pleaded guilty on January 20, 2023.
According to the plea agreement, between December 2020 and April 2021, Weber was aware that a group of individuals had conspired with each other to commit armed robberies throughout Pasco, Polk, Lee, and Hillsborough Counties. Weber knew that members of this conspiracy carried out their crimes by pretending to be law enforcement officers. Members of this conspiracy provided Weber with identifying information on their potential victims. Using her employment as a claims adjuster and knowing the co-conspirators’ goal, Weber researched those individuals on her Lexus Nexus account and located their home addresses. Members of this conspiracy then committed robberies at those residences, some of which resulted in victims being beaten, pistol whipped, and shot. Additionally, Weber purchased equipment for co-conspirators to use in the commission of these robberies, including Sheriff’s vests, law enforcement patches, and light bars.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Hillsborough County Sheriff’s Office, the Bartow Police Department, the Lakeland Police Department, the Dade City Police Department, the Cape Coral Police Department, the Pasco Sheriff’s Office, the Hernando County Sheriff’s Office, the Arcadia Police Department, and the Florida Highway Patrol. It was prosecuted by Assistant United States Attorney Diego F. Novaes.
Five Federal Agencies Issue Joint Advisory on Safe Business Practices and Compliant Transfer of GoodsRead the Press Release
The Department of Justice, Department of Commerce’s Bureau of Industry and Security (BIS), Department of Homeland Security’s Homeland Security Investigations (HSI), Department of State’s Directorate of Defense Trade Controls (DDTC), and Department of the Treasury’s Office of Foreign Assets Control (OFAC) today issued a joint compliance note highlighting common tactics deployed by malign actors in the maritime and other transportation industries as well as recent enforcement actions taken in response to alleged violations. Today’s note marks the first collective effort by the five agencies to inform the private sector about enforcement trends and provide guidance to the business community on compliance with U.S. sanctions and export laws. The Departments of Justice, Commerce, and the Treasury have previously issued two tri-seal compliance notes.
“Cargo shipments occur in increasingly complex geopolitical environments, and companies operating in this high-risk space must adhere vigilantly to U.S. sanctions and export control laws,” said Assistant Attorney General for National Security Matthew G. Olsen. “As today’s joint alert makes clear, we will hold accountable companies that do not maintain rigorous compliance programs and violate the law.”
“Those who move cargo play a key role in helping to prevent sensitive goods and technologies from falling into the hands of proliferators, terrorists, and other malign actors,” said Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod. “Across the federal government, we are united in our message – if you have a role in moving cargo, you have a responsibility to ensure your services are not being exploited by those who would do this country harm.”
“As Iran and other sanctioned actors increasingly use deceptive shipping practices to attempt sanctions evasion, those operating in the shipping sector need to be vigilant and employ risk-based compliance measures to counteract these threats,” said Director Brad Smith of OFAC. “Engaging with these actors not only risks civil penalties for U.S. companies, but also non-U.S. companies that cause U.S. persons to violate sanctions.”
“Training, outreach, and information sharing between the federal government and the transportation industry are the first lines of defense in preventing foreign adversaries from illegally obtaining sensitive U.S. technology for nefarious purposes,” said Executive Associate Director Katrina W. Berger of HSI. “It’s extremely important we remain vigilant and work collaboratively to ensure compliance remains at the forefront of what we do, as our nation depends on it.”
The compliance note describes various deceptive shipping and transportation tactics deployed by malign actors to facilitate the illicit transfer of cargo. In addition, the note advises companies doing business in these industries to implement and strengthen their compliance controls as necessary, especially when operating in high-risk areas or with counterparties who exhibit odd behavior. The note further identifies several compliance practices that may assist companies in identifying potential efforts to evade U.S. laws.
The compliance note also highlights criminal and civil enforcement authorities that the relevant agencies have taken to combat the illicit shipment of cargo as well as recent enforcement actions. These cases include the first-ever criminal resolution by the Department of Justice against a bareboat charter of a crude oil tanker carrying contraband Iranian oil and civil enforcement actions taken by BIS and OFAC imposing civil monetary penalties.
The note makes clear that companies engaged in the maritime or other transportation industries must be vigilant in their compliance efforts. Such vigilance includes assessing their risk profile for potential violations of U.S. sanctions and export laws, implementing rigorous compliance controls to mitigate those risks, and taking any other steps necessary to verify the true nature, origin, and destination of cargo they are involved in transporting.
Compliance noteFive Colombian Nationals Arrested for International Cocaine DistributionRead the Press Release
Today, Alexander Valencia Garcia will be arraigned before United States Magistrate Judge Marcia M. Henry at the federal courthouse in Brooklyn on an indictment charging him with two counts of international cocaine distribution. On November 7, 2023, the defendant, a Colombian citizen, was arrested in Florida on an arrest warrant issued from the Eastern District of New York. On the same day, his co-defendants—Cesar Valencia Garcia, Diego Beltran Alvarez, Oscar Valencia Florez, and Jhonatan Samboni Ruiz—were all arrested in Colombia, and their extradition is pending.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Edward A. Caban, Commissioner, New York City Police Department (NYPD), and Dominick L. Chiumento, Acting Superintendent, New York State Police (NYSP), announced the arrests and arraignment.
“As alleged, these five co-defendants were members of an international drug trafficking organization that produced and exported hundreds of kilos of cocaine from Colombia to the United States,” stated United States Attorney Peace. “We will not relent in our efforts to bring to justice those who are responsible for trafficking dangerous drugs into our communities whether here or in a foreign country.”
Mr. Peace extended his appreciation to the DEA’s office in Bogota, Colombia, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs, Narcotic and Dangerous Drug Section’s Judicial Attaché’s Office in Colombia, the Colombian National Police, and the Government of Colombia.
“Alexander Valencia Garcia has been brought to justice for his alleged role in a multi-million dollar cocaine trafficking conspiracy spanning from Colombia to New York. DEA and our law enforcement partners do not rest and continue to pursue those responsible for bringing illegal drugs into the United States. I commend the DEA New York Drug Enforcement Task Force and the United States Attorney’s Office Eastern District of New York for their tireless efforts in this investigation,” stated DEA Special Agent-in-Charge Tarentino.
“Our job is to identify, investigate, and arrest anyone responsible for distributing illegal drugs throughout New York City, wherever they are based,” stated NYPD Commissioner Caban. “I thank and commend the dedicated NYPD investigators who partner every day with our federal task force colleagues for extending their efforts beyond our borders to stop this poison from reaching our streets.”
NYSP Chiumento said, “The coordination and investigative persistence of all partners responsible for this indictment, sends a strong message that we will not tolerate dangerous drugs coming into our country or state. We will continue to work vigilantly to put dangerous individuals like Mr. Garcia behind bars. I want to thank our members and law enforcement partners for their tenacious dedication to tracking illegal drugs and intercepting them at their source before they infiltrate our communities."
According to the indictment, court filings, and statements made in Court, the defendant and his co-defendants were members of a sophisticated drug trafficking organization that operated in southwestern Colombia. The organization produced and transported thousands of kilograms of cocaine to locations along the coast of Colombia so that the cocaine could eventually be exported and smuggled into the United States. Valencia Garcia specifically helped oversee production in labs as well as transportation of finished cocaine. As part of the investigation, law enforcement authorities seized over 500 kilograms of cocaine attributable to the defendant’s drug trafficking enterprise.
The arrests of Alexander Valencia Garcia and his co-defendants are the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program 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. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The charges in the indictment allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to life in prison.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorney Andrew D. Wang is in charge of the prosecution.
The Defendants:
ALEXANDER VALENCIA GARCIA
Age: 57
ColombiaCESAR VALENCIA GARCIA
Age: 55
ColombiaDIEGO BELTRAN ALVAREZ
Age: 32
ColombiaOSCAR VALENCIA FLOREZ
Age: 24
ColombiaJHONATAN SAMBONI RUIZ
Age: 34
ColombiaE.D.N.Y. Docket No. 22-CR-513 (PKC)
Federal jury convicts Lame Deer pastor of sexually abusing children on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — A federal jury today convicted a Lame Deer pastor of sexually abusing three children while they were staying at his home, on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said.
After a six-day trial that began on Dec. 4, the jury found Dean Alan Smith, 67, guilty of aggravated sexual abuse, abusive sexual contact by force and two counts of abusive sexual contact by force and of a child. Smith faces a maximum of life in prison, a $250,000 fine and five years to a lifetime of supervised release. The jury acquitted Smith of one count of abusive sexual contact of a child.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for April 10, 2024. Smith was remanded into custody pending further proceedings.
“Pastor Dean Smith led a double life, one as a Pastor and the other as a sexual abuser of young children. I am thrilled the jury held Smith accountable for sexually abusing these victims and I hope holding him accountable will help the victims start the long road of healing from the trauma they’ve suffered. Obtaining justice is the hallmark of the work of both our office and our federal law enforcement partners and we have no greater responsibility than pursuing justice for victims of sexual abusers. Today’s verdicts validate our continued unwavering pursuit of those abusers, for which all of us, as well as the victims in this case and their families, are grateful,” U.S. Attorney Laslovich said.
The government alleged in court documents and at trial that Smith was the pastor of a local church in Lame Deer, on the Northern Cheyenne Indian Reservation, and that during his time on the reservation, he and his wife housed several foster children and temporarily hosted other children from the community. In approximately 2021 and 2022, four girls, identified as Jane Does 1, 2, 3 and 4, disclosed being sexually abused by Smith between 2017 and 2020 when they were staying or living at Smith’s home. The government alleged that Smith abused each of them, separately and in private, on multiple occasions. All of the victims were under the age of 12 at the time.
The U.S. Attorney’s Office is prosecuting the case. The FBI conducted the investigation.
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Dover Man Arrested and Charged with Threatening to Kill a Presidential CandidateRead the Press Release
CONCORD – A Dover man has been arrested and charged in connection with sending text messages that threatened a presidential candidate and attendees at a campaign event scheduled to take place in Portsmouth, New Hampshire, U.S. Attorney Jane E. Young announces.
Tyler Anderson, 30, was charged with transmitting in interstate commerce a threat to injure the person of another. Anderson will make an initial appearance in federal court in Concord today, December 11, 2023, at 2:30 p.m.
According to the charging documents, Anderson received a text message from the victim’s campaign notifying him of a political event in Portsmouth, New Hampshire. Anderson responded to the text message on December 8, 2023, stating: “Great, another opportunity for me to blow his brains out!” and “I’m going to kill everyone who attends and then f*** their corpses.”
The charge provides for a sentence of up to five years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Dover and Portsmouth Police Departments. Assistant U.S. Attorneys Jarad Hodes and Matthew Hunter are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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District Man Sentenced to 32 Years in Prison for Repeated Acts of Sexual Abuse of a ChildRead the Press Release
WASHINGTON – Charles Johnson, 30, of Washington, D.C., was sentenced today to 32 years in prison on multiple counts of first degree child sexual abuse with aggravating circumstances, multiple counts of first degree sexual abuse with aggravating circumstances, second degree child sexual abuse with aggravating circumstances, attempted first degree child sexual abuse with aggravating circumstances, and assault. U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD) announced the sentence. Johnson was convicted in July 2023 after a five-day trial in Superior Court in the District of Columbia.
According to evidence and testimony presented at trial, on multiple occasions between November 2019 and September 2021, Johnson sexually abused a child who was nine- and 10-years-old at the time of the assaults. Johnson subjected the child to sexual acts and repeatedly forced her to perform sexual acts on him. Johnson, who was an officer with the Metropolitan Police Department, resided in the home with the victim and took advantage of occasions when he was left in a position of supervision and care over her.
The Honorable Michael O’Keefe sentenced Johnson to a total of 384 months across multiple counts, to be followed by a period of supervised release. Upon his release, Johnson will be required to register as a sex offender for the remainder of his life.
In announcing the verdict, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Marco Crocetti and Kathleen Houck, and former Assistant U.S. Attorney Rachel Bohlen, who investigated and prosecuted the case.
District Court Employee Convicted at Trial in Connection with Decade-Long Bribery SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced on December 11, 2023, that a federal jury found DIONISIO FIGUEROA, a/k/a “Dionicio,” an employee of the U.S. District Court for the Southern District of New York (“the SDNY District Court”), guilty of bribery, conspiracy, and false statements charges for his participation in a scheme in which he referred criminal defendants to a criminal defense attorney and encouraged those defendants to retain the attorney, all in exchange for cash bribes. The attorney pled guilty to all counts on November 16, 2023. FIGUEROA will be sentenced by U.S. District Judge Mae A. D’Agostino on April 8, 2024.
U.S. Attorney Damian Williams said: “Figueroa, a longtime clerk at the SDNY District Court, betrayed his employer, the public, and those who rely on the court to remain impartial. His actions violated his duties as a court employee, undermined the fair administration of justice, and undermined the work of the many good people in the courthouse who serve the criminal justice system with honesty and integrity. A federal jury has now held Figueroa accountable for his crimes. This verdict should remind public servants in positions of trust that if you betray the public, my Office will not hesitate to enforce the law.”
According to the Indictment, statements made in public court proceedings and filings, and the evidence at trial:
As a clerk in the SDNY Magistrate Clerk’s Office since in or about 2002, FIGUEROA was responsible for performing duties that included, among other things, making data entries regarding official case events in criminal cases, making summary entries of documents and proceedings on case dockets, and performing inquiries and furnishing information, either in person or by correspondence, regarding the status of cases. FIGUEROA also played a role with respect to the intake of criminal cases, including by preparing appearance bonds, advising defendants and their family members about the conditions of the bonds, and ensuring that appearance bonds were signed by all parties prior to a defendant’s release.
SDNY District Court personnel policies prohibited FIGUEROA from having outside employment that would pose a conflict of interest; receiving payments, gifts, or other benefits from persons having business before the District Court; and recommending particular attorneys to members of the public. FIGUEROA was also subject to the U.S. Courts’ Code of Conduct for Judicial Employees (the “Code of Conduct”), which cautioned judicial employees that “[a] number of criminal statutes of general applicability govern federal employees’ performance of official duties. These include: 18 U.S.C. § 201 (bribery of public officials and witnesses) . . . ” The Code of Conduct likewise admonished, among other things, that “[a] judicial employee should never influence or attempt to influence the assignment of cases, or perform any discretionary or ministerial function of the court in a manner that improperly favors any litigant or attorney, nor should a judicial employee imply that he or she is in a position to do so.”
TELESFORO DEL VALLE, JR., was a private attorney who had appeared in numerous federal criminal cases pending before the SDNY District Court.
Between at least 2011 and 2022, FIGUEROA and DEL VALLE engaged in a scheme whereby FIGUEROA used his position as an employee of the SDNY District Court to encourage criminal defendants to retain DEL VALLE to represent them in pending criminal cases. In return, DEL VALLE paid FIGUEROA a portion of the fees clients paid to DEL VALLE. Over the course of more than a decade, FIGUEROA referred at least 45 SDNY criminal defendants to DEL VALLE, and DEL VALLE paid FIGUEROA tens of thousands of dollars in referral fees. DEL VALLE paid FIGUEROA directly and through an intermediary who would pick up envelopes of cash for FIGUEROA from DEL VALLE’s law office. Many of the clients who ended up retaining and paying DEL VALLE were assigned free, court-appointed counsel. Nevertheless, FIGUEROA encouraged those individuals to change counsel, including by vouching for DEL VALLE’s abilities as a lawyer.
FIGUEROA and DEL VALLE were also charged with making false statements to law enforcement during the investigation. In November 2022, federal law enforcement agents separately interviewed both FIGUEROA and DEL VALLE. After advising each that lying to federal law enforcement agents is a federal crime, FIGUEROA and DEL VALLE each made materially false, fictitious, and fraudulent statements and representations in response to the agents’ questions. In particular, FIGUEROA denied making any referrals to DEL VALLE except on a small number of occasions concerning close relations or friends. He further denied ever having received payments from DEL VALLE for referrals. DEL VALLE, upon being served with a federal grand jury subpoena requiring the production of records from his law firm, falsely denied having any records reflecting client referrals from or payments to FIGUEROA or anyone else.
DEL VALLE pled guilty to all charges on November 16, 2023, and is scheduled to be sentenced by Judge D’Agostino on March 12, 2024.
* * *
FIGUEROA, 66, of New York, New York, was convicted of one count of conspiracy to bribe a federal employee and pay illegal compensation to a judicial employee, which carries a maximum potential sentence of five years in prison; one count of federal employee bribery, which carries a maximum potential sentence of 15 years in prison; one count of receiving illegal compensation as a judicial employee, which carries a maximum potential sentence of five years in prison; and one count of making material false statements, which carries a maximum potential sentence of five years in prison.
DEL VALLE, 65, of Leonia, New Jersey, was convicted of one count of conspiracy to bribe a federal employee and pay illegal compensation to a judicial employee, which carries a maximum potential sentence of five years in prison; one count of federal employee bribery, which carries a maximum potential sentence of 15 years in prison; one count of paying illegal compensation to a judicial employee, which carries a maximum potential sentence of five years in prison; and one count of making material false statements, which carries a maximum potential sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Special Agents from the U.S. Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Frank Balsamello, Jarrod L. Schaeffer, and Stephanie Simon, with the assistance of Paralegal Specialist Christopher de Grandpre, are in charge of the prosecution.
Disgruntled Cloud Engineer Sentenced to Two Years in Prison for Intentionally Damaging His Former Employer’s Computer Network After He Was FiredRead the Press Release
SAN FRANCISCO – Miklos Daniel Brody was sentenced to 24 months in prison today for a network intrusion and for making false statements to a government agency, announced United States Attorney Ismail J. Ramsey and United States Secret Service (USSS) Special Agent in Charge Shawn M. Bradstreet. The sentence was handed down by the Hon. William. H. Orrick, Senior United States District Judge.
Brody, 38, of San Francisco, pleaded guilty in April 2023 to two charges that he violated the Computer Fraud and Abuse Act—by obtaining information from a protected computer, in violation of 18 U.S.C. § 1030(a)(2)(C) and (c)(2)(B), and by intentionally damaging a protected computer, in violation of 18 U.S.C. § 1030(a)(5)(A) and (c)(4)(B)(i)—and one charge of making false statements to a government agency, in violation of 18 U.S.C. § 1001(a)(2).
According to a superseding indictment returned by a federal grand jury in December 2022, Brody worked as a cloud engineer for a bank headquartered in San Francisco until March 11, 2020, when he was fired for violating company policy.
The superseding indictment alleges that, later that evening, and continuing into the following morning, Brody used his company-issued laptop—which he failed to return upon being fired—to access the bank’s computer network without authorization and to cause substantial damage. Among other things, Brody deleted the bank’s code repositories, ran a malicious script to delete logs, left taunts within the bank’s code for former colleagues, and impersonated other bank employees by opening sessions in their names. He also emailed himself proprietary bank code that he had worked on as an employee, which was valued at over $5,000. At the sentencing hearing, Judge Orrick determined the total cost of the damage to the bank’s systems to be at least $220,621.22.
The superseding indictment also alleges that, in the days and weeks that followed his firing, Brody engaged in a series of evasive and deceptive actions, including filing a police report in which he falsely told the San Francisco Police Department that his company-issued laptop had been stolen from his car while he was working out at the gym. Brody doubled down on that false allegation in statements he made to USSS agents during an interview following his arrest in March 2021. In his guilty plea application, Brody admitted he made a false statement about the company-issued laptop and that he knew his statement was false at the time.
In addition to sentencing Brody to prison, Judge Orrick ordered him to pay restitution totaling $529,266.37 and to serve three years of supervised release to begin after his prison term is completed.
Assistant U.S. Attorneys Lauren M. Harding and George O. Hageman are prosecuting the case, with assistance from Paralegal Specialist Mark DiCenzo. The prosecution is the result of an investigation by the U.S. Secret Service.
Davis County Man Sentenced for Animal TortureRead the Press Release
SALT LAKE CITY, Utah – Samuel J. Webster, 20, of Farmington, Utah, was sentenced today to 12 months and one day imprisonment, a fine of $5,500, and term of three years supervised release. The sentence, ordered by Federal District Court Judge David Sam, comes after Webster pleaded guilty to animal torture via animal crushing and posting multiple videos of the animal cruelty on YouTube in Oct. 2021.
According to court documents, and admissions made during his change of plea hearing in August 2023, Mr. Webster purposefully engaged in animal crushing by purchasing a male guinea pig from a pet supply store in Farmington, Utah. Webster then purposefully subjected the guinea pig to serious injury and posting videos of the abuse on YouTube. See former news release here.
“The animal torture committed by Mr. Webster was not only illegal but inhumane and cruel,” said U.S. Attorney Trina A. Higgins of the District of Utah. “Torture of any kind to an animal is unacceptable. Our office will work with law enforcement to investigate and prosecute all crimes of this nature.”
“Animals deserve to be treated humanely which is why the Preventing Animal Cruelty and Torture (PACT) Act was passed in 2019,” said Special Agent in Charge Shohini Sinha of the Salt Lake City FBI. “Evidence shows that intentional animal cruelty can also be a precursor to other violent crimes. We are grateful for the public's assistance reporting this horrific abuse so law enforcement could put a stop to it and have Mr. Webster face the consequences."
The FBI Salt Lake Field Office investigated the case with valuable assistance by the Woods Cross Police Department.
The United States Attorney’s Office of the District of Utah prosecuted the case.
If you are aware of animal cruelty, please report it to law enforcement or call 1-800-CALL-FBI or leave a tip at tips.fbi.gov.
Criminal Fine and Restitution Ordered for Company Operating Aluminum Processing Facility in the Dalles for Clean Air Act ViolationsRead the Press Release
PORTLAND, Ore.—An Illinois-based company that operates an aluminum processing facility in The Dalles, Oregon, was ordered to pay a fine and restitution today for violating the Clean Air Act by negligently releasing a hazardous air pollutant from its facility.
Hydro Extrusion USA (Hydro), a limited liability corporation based in Rosemont, Illinois, was ordered to pay a criminal fine of $550,000 and more than $213,000 in restitution to an employee sickened by the hazardous release.
According to court documents, Hydro operates a secondary aluminum processing facility in The Dalles where it melts aluminum scrap in induction furnaces to produce reusable aluminum billets. While operating, air emissions from the company’s furnaces were open to the interior of the building and did not pass through any pollution control devices before reaching employees or being vented to ambient air.
Under the Clean Air Act, secondary aluminum production facilities are only permitted to use “clean charge,” aluminum scrap free of paints, coatings or lubricants. Despite this requirement, from July 2018 through June 2019, Hydro acquired and melted scrap aluminum coated in a mineral-oil based mixture that, when combusted, produced hazardous smoke. Hydro saved approximately $466,000 purchasing the unclean charge. During this time, Hydro employees noticed excessive smoke in the facility. Despite being notified by inspectors from the U.S. Environmental Protection Agency (EPA) and the Oregon Department of Environmental Quality (Oregon DEQ), Hydro continued melting the unclean charge.
On August 23, 2022, after cooperating with the government’s investigation and agreeing to plead guilty, Hydro was charged by federal criminal information with one count of negligent endangerment by discharging a hazardous pollutant. On January 24, 2023, the company pleaded guilty.
This case was investigated by the EPA Criminal Investigation Division (EPA-CID) with assistance from Oregon DEQ. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney, and Karla Perrin, Special Assistant U.S. Attorney, for the District of Oregon.
Convicted felon going back to prison on new child pornography chargeRead the Press Release
ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Robert Bibbins, 51, of Rochester, NY, who was convicted of possession of child pornography after having previously been convicted of a child pornography offense, was sentenced to serve 78 months in prison and 10 years supervised release by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that in 2015, Bibbins was convicted of a child pornography offense in New York State Court and sentenced to a jail term and 10 years’ probation. In 2020, Bibbins violated his probation and was sentenced to serve one to three years in prison. On September 19, 2022, he was released on parole. Within three days of his release, Bibbins acquired an internet-capable cellular phone in violation of his parole conditions. On September 22, 2022, during a routine search, parole officers discovered the phone secreted in a trash can at the half-way house where Bibbins was living and discovered images of children in sexually explicit poses, as well as images of naked children. A full forensic examination of the phone by the FBI, which uncovered multiple sexually explicit images of children.
The sentencing is the result of an investigation by the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Daniel F. Martuscello III, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
Company Selling Migraine Treatment Device Agrees to Resolve Alleged False Claims Act ViolationsRead the Press Release
FAIRVIEW HEIGHTS, Ill. – Utah-based Dolor Technologies, LLC (“Dolor) has entered into a settlement agreement with the United States to resolve Dolor’s civil liability relating to a device it sold and marketed to treat migraines, the Department of Justice announced Monday. This resolution requires Dolor to make monetary payments to the U.S. based upon its ability to pay.
The government alleges that, between July 2013 through July 2017, Dolor violated the False Claims Act (FCA) by causing medical providers to submit false claims to the Medicare Program for procedures using a device called the SphenoCath.
The SphenoCath was intended to treat migraine headaches by administering nerve blocks to the sphenopalatine ganglion (SPG), a collection of nerves located deep in the midface of the skull. The government alleged the SphenoCath was not approved or authorized by the FDA for use in SPG nerve blocks for the treatment of headaches.
The government also alleged Dolor instructed, coached, and encouraged medical providers to submit improper billing codes to Medicare for reimbursement of services using the SphenoCath device.
“Device companies that evade the FDA approval process and improperly promote their products undermine the health of patients and the financial integrity of federal health care programs,” said U.S. Attorney Rachelle Aud Crowe for the Southern District of Illinois. “This settlement demonstrates the commitment of our office and investigative partners to combat health care fraud against the Medicare Program.”
In a related criminal matter, Dolor’s former chief executive officer, Mark Wright, pleaded guilty on Oct. 11, 2023, in the U.S. District Court for the District of Utah to misdemeanor charges of causing the introduction of misbranded and adulterated devices into interstate commerce. As part of his guilty plea, Wright admitted that Dolor did not seek approval or clearance from the Food and Drug Administration to distribute the SphenoCath for the intended use of treating headaches.
“U.S. consumers rely on FDA oversight to ensure that medical devices are safe and effective. Device manufacturers who disregard FDA’s oversight and misdirect the use of medical devices put consumers at risk,” said Special Agent in Charge George A. Scavdis, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to investigate and bring to justice companies that jeopardize the public health.”
Wright also admitted that, while FDA had recommended in April 2014 that Dolor proceed with investigational studies regarding the SphenoCath’s safety and effectiveness, Dolor never conducted any such study. Instead, Wright and Dolor continued to market the SphenoCath with the intention that it be used to treat migraine headaches by administering SPG nerve blocks.
“The submission of false claims to Medicare undermines the solvency of our federal health care programs and wastes valuable taxpayer dollars,” said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Our agency, working with our law enforcement partners, is committed to holding accountable those who seek to defraud federally funded health care programs.”
The civil settlement resolves claims brought under the qui tam or whistleblower provisions of the FCA by Ronald Michael, M.D. The act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. The qui tam case is captioned U.S. ex rel. Ronald Michael, M.D. v. Dolor Technologies, LLC, et al., No. 15-cv-1004 (S.D. Ill.), which also resulted in a civil settlement with device companies Jet Medical, LLC and Medical Components, Inc. Dr. Michael will receive a share of the proceeds from the FCA settlements.
The government’s resolution of this matter illustrates the government’s emphasis on combating health care fraud. The FCA is one of the most powerful tools in this effort. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 900-HHS-TIPS (800-447-8477).
The government is represented in the civil case by Assistant U.S. Attorney Laura Barke of the U.S. Attorney’s Office for the Southern District of Illinois. The investigation was conducted by the FDA’s Office of Criminal Investigations and the U.S. Department of Health and Human Services Office of Inspector General.
The claims settled by the civil agreement are allegations only and there has been no determination of civil liability.
Colombian Man Pleads Guilty to Money Laundering ConspiracyRead the Press Release
BOSTON – A Colombian man pleaded guilty today in federal court in Boston to money laundering.
Luis Fernando Galindo-Ramos, 55, pleaded guilty to money laundering conspiracy, laundering of monetary instruments and engaging in monetary transactions in criminally derived property. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for March 6, 2024. Galindo-Ramos was indicted by a federal grand jury in August 2021 and arrested in Cali, Colombia in November 2021. He was extradited to the United States on June 8, 2023.In or about August 2016, an investigation began into a sophisticated money laundering organization located primarily in Cali, Colombia that laundered approximately $1 million in drug proceeds through intermediary banks in the United States – including banks in Massachusetts – by use of the Colombian Black Market Peso Exchange (BMPE).
Galindo-Ramos arranged the domestic transfer of substantial amounts of bulk cash within the United States. He maintained the security of those funds during the transfers through the exchange of passcodes. The funds were subsequently integrated into bank accounts located in the United States and held in the names of businesses and individuals in order to repay drug suppliers in Colombia. By using the BMPE, Galindo-Ramos conspired to conceal drug trafficking activity and proceeds from law enforcement. Approximately $550,000 in laundered bulk currency was seized during the investigation.
The charges of money laundering conspiracy and laundering of monetary instruments each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. The crime of engaging in monetary transactions in criminally derived property provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000, or twice the amount involved. Sentences are imposed by a federal district court judge based upon the U.S. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Judicial Attaché’s office at the U.S. Embassy in Bogota provided critical assistance in securing the arrest and extradition of Galindo. Assistant U.S. Attorneys Jared C. Dolan and Alathea E. Porter of the Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Clifton Park Man Pleads Guilty to Attempted Online Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Michael Kirkland, age 30, of Clifton Park, New York, pled guilty today to the attempted online enticement of a minor.
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.
Kirkland admitted that on August 11, 2022, he exchanged sexually explicit text messages with someone he believed was an adult offering the sexual services of a 12-year old girl in an attempt to entice the child into engaging in sexual acts with him. Kirkland also admitted that on August 11, 2022, he travelled to a hotel in Saratoga County, New York, with the intent to engage in sexual acts with the 12-year-old girl. Kirkland was arrested by law enforcement shortly after arriving at the location.
At sentencing on April 11, 2024, before Senior United States District Judge Gary L. Sharpe, Kirkland faces at least 10 years and up to a life in prison, as well as a term of post-release supervision of at least 5 years and up to life. The court may also impose a fine, restitution, and forfeiture of the smartphone Kirkland used to commit his offense. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Kirkland will also have to register as a sex offender upon his release from prison.
The FBI’s Mid-State Child Exploitation Task Force and Capital Region Child Exploitation and Human Trafficking Task Force investigated the case. Each task force is comprised of FBI Special Agents, as well as state and local police investigators, including from the Saratoga County Sheriff’s Office.
Assistant U.S. Attorney Allen J. Vickey is prosecuting 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.
Clarkston Man Convicted of Attempted Enticement of a MinorRead the Press Release
Yakima, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that a jury returned verdicts on December 6, 2023, following the trial of David Elmo Curry, 38 of Clarkston, Washington. Curry was convicted by a jury on two counts of Attempted Enticement of a Minor.
Evidence introduced at trial established that on November 16, 2019, Curry was arrested when he arrived at a house in Yakima, Washington after having responded to an on-line ad by a woman purporting to be the mother of two daughters – ages 11 and 13. According to the ad, the mother was seeking money in exchange for sex with her minor children. The on-line ad actually was part of a sting operation conducted by the Washington State Patrol, assisted by the Yakima and Union Gap Police Departments and Homeland Security Investigations. At the time of his arrest, Curry had condoms and flavored lubricant with him. Curry was then charged in Yakima County Superior Court with Attempted First Degree Attempted Rape of a Child and Second Degree Attempted Rape of a child. He later was released on bail on these state charges.
Following Curry’s release on bail, a Homeland Security Investigations Task Force Officer, acting in an undercover capacity, responded to a separate on-line ad, which Curry placed by while on release. The undercover officer represented that he was a thirteen-year-old girl and Curry engaged the officer in sexual talk, requested nude images, and made arrangements to meet with him in person. At one point, Curry determined the purported child’s preferred candy and purchased flavored lubricant in a corresponding flavor for a planned meeting the next day, which never took place.
Chief United States District Judge Stanley A. Bastian presided over the trial, which began on December 4, 2023. Sentencing in this matter is set for March 26, 2024. Curry faces a minimum sentence of 10 years’ incarceration and a maximum possible sentence of life imprisonment, as well as no less than five years of supervised release and mandatory sex offender registration for each count.
“Mr. Curry attempted to meet, what he believed to be, a 13-year-old child for sex. When Mr. Curry did so, he had been released on bail for a similar charge,” stated U.S. Attorney Waldref. “I am thankful to our excellent law enforcement partners and the members of the Southeast Regional Internet Crimes Against Children Task Force who work to ensure our communities are protected from those that would harm the most vulnerable among us.”
“Once again, we are so proud of the teamwork and dedication displayed by the partnership with the SER-ICAC team, including the Washington State Patrol and Yakima Police Department, on this case,” stated Commander Damon Janson, Investigations Division with the Richland Police Department. “Having a dedicated, southeast regional team, focused on child internet sex crimes is both important and vital to the world we live in today.”
“This sentence serves as a poignant reminder of the vigilance required to shield our communities from those who prey on the most vulnerable. In a chilling narrative, Curry's actions, even while on bail for similar charges, lay bare the urgent need for unwavering dedication to protecting our children,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “I’m thankful for our law enforcement partnerships on the Internet Crimes Against Children Task Force that continue to demonstrate through these arrests that we will continue to patrol the shadows of the internet to bring these predators to justice.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by Homeland Security Investigations with the assistance of the Washington State Patrol, the Yakima Police Department and the Southeast Regional ICAC Task Force, consisting of the Richland and Kennewick Police Departments. This case was prosecuted and tried to a jury by Michael Murphy, Assistant United States Attorney for the Eastern District of Washington.
Charleston Woman Pleads Guilty to Straw Purchasing FirearmRead the Press Release
HUNTINGTON, W.Va. – Cassandra Lee Lovely, 34, of Charleston, pleaded guilty today to making false statements in acquisition of firearms.
According to court documents and statements made in court, on April 1, 2023, Lovely purchased a Smith & Wesson M&P 45 from a Hurricane business. Lovely admitted that she purchased the firearm for a convicted sex offender who is prohibited from possessing a firearm because of his prior felony conviction. Lovely further admitted that she falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473 that she was the buyer of the firearm when Lovely knew she was purchasing it for the individual who was prohibited from possessing a firearm.
Lovely provided the firearm to the prohibited person following the purchase, and he reimbursed her by sending her $748 through the Cash App mobile payment service. The prohibited person was unsatisfied with the firearm, and Lovely traded it in at a South Charleston business for a Smith & Wesson SD9 VE 9mm pistol on April 27, 2023. Lovely admitted that she again falsely certified on the ATF Form 4473 that she was the buyer of the firearm when Lovely knew she was purchasing it for the individual who was prohibited from possessing a firearm.
On June 21, 2023, law enforcement officers seized the firearm when they arrested the prohibited person on an active warrant in Rhode Island.
Lovely is scheduled to be sentenced on April 1, 2024, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Alexander A. Redmon is prosecuting 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-183.
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Cape Girardeau Man Sentenced to 12 Years in Prison for Gun, Methamphetamine CrimesRead the Press Release
CAPE GIRARDEAU – U.S. District Judge John A. Ross on Monday sentenced a previously-convicted felon who was caught with two stolen guns, two other guns and methamphetamine to 12 years in prison.
Daniel T. Aguilar, 39, of Cape Girardeau, pleaded guilty in September to four felonies: possession of stolen firearms, possession with intent to distribute methamphetamine and two counts of being a felon in possession of firearms.
Aguilar admitted to breaking into a storage unit in Jackson, Missouri on Sept. 30, 2022, and stealing a Maverick 12-gauge shotgun and an Anderson Manufacturing AM-15 pistol. The Southeast Missouri Drug Task Force learned on Jan. 10, 2023, that Aguilar had meth, a pistol and stolen property in his home. Detectives watched as Aguilar took license plates off his Toyota Scion and placed them on an SUV with expired plates. Aguilar then drove off in the SUV. The Missouri State Highway Patrol stopped the SUV and found 42 grams of meth inside. A court-approved search of Aguilar’s home and vehicle found 14 grams of meth hidden in a couch cushion, stolen property and bolt cutters in his bedroom and two handguns hidden in a speaker box in the trunk of his vehicle. The two stolen guns were recovered from his girlfriend’s house.
Aguilar has five prior felony convictions, including carjacking. He was on probation for state charges at the time of his federal offenses.
The Southeast Missouri Drug Task Force, the Cape Girardeau County Sheriff’s Office and the Missouri State Highway Patrol investigated the case. Assistant U.S. Attorney Christopher Shelton prosecuted the case.
Bronx Man Sentenced to 12 Months and One Day in Prison for Nationwide Credit Card Fraud Affecting Thousands of Account HoldersRead the Press Release
NEWARK, N.J. – A manager for a conspiracy that used stolen credit card information to make fraudulent retail purchases around the United States was sentenced today to 12 months and one day in prison, U.S. Attorney Philip R. Sellinger announced.
Trevor Osagie, 32, of the Bronx, New York, previously pleaded guilty before U.S. District Judge William Martini to an information charging him with one count of conspiracy to commit bank fraud. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From at least 2015 through November 2018, Osagie conspired with a network of individuals based in the New Jersey/New York area who made trips around the United States in order to use stolen credit card information to purchase gift cards, flights, hotels, rental cards, and other goods and services. Other participants in the conspiracy obtained stolen credit card information through the “dark web” and other sources. In addition to recruiting at least one individual to create the fraudulent credit cards, Osagie managed the individuals who traveled around the United States conducting the fraudulent transactions. The conspirators made over $1.5 million in fraudulent purchases using over 4,000 stolen credit card accounts.
In addition to the prison term, Judge Martini sentenced Osagie to three years of supervised release and ordered to pay $1.43 million in restitution.
U.S. Attorney Sellinger credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Aaron Hatley, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Shawn Barnes, Chief of the OCDETF/Narcotics Unit in Newark.
Bradenton Convicted Felon Sentenced to Seven Years’ Imprisonment for Possessing Ten FirearmsRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Terrence Johnson, Jr. (28, Bradenton) to seven years in federal prison for possessing a firearm as a convicted felon. Johnson had pleaded guilty on June 26, 2023.
According to court documents, deputies from the Manatee County Sheriff’s Office responded to a shooting near 31st Avenue East in Bradenton and discovered several spent cartridge casings in the roadway in front of a residence where Johnson resided. There were also several bullet holes in a window of the home facing the street. During a search of the residence, the deputies discovered spent cartridge casings on the floor in the front room of the home, narcotics, approximately $27,000 in cash, and equipment for a digital video recording (DVR) system.
The deputies also searched a sedan that was parked in the driveway of the residence. Inside the vehicle’s trunk, the deputies located 10 firearms, including an AK-style 7.62 mm caliber “MAK90 Sporter” Norinco rifle. Recovered footage from the contents of the DVR system showed that on the morning of February 19, 2023, Johnson exited the residence carrying the above-described Norinco rifle which he placed inside the trunk of his sedan. During an interview with ATF agents, Johnson confessed to possessing the rifle as a convicted felon. Johnson identified himself as holding the same rifle as depicted in a screenshot taken from the DVR on the same date.
This case was investigated by the Manatee County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys David W.A. Chee and Samantha J. Newman.
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.
Attorney General Merrick B. Garland Delivers Remarks at the Justice Department’s Violent Crime Reduction SummitRead the Press Release
BIRMINGHAM, Ala. – Attorney General Merrick B. Garland delivered remarks at the Justice Department’s Violent Crime Reduction Summit today. Before that national audience, he discussed the Northern District of Alabama’s work in Jefferson County on domestic violence matters.
U.S. Attorney Prim Escalona, AUSA Jeremy Sherer, and Kelly Klehm, Deputy Director of One Place Metro Alabama Family Justice Center (One Place), and Director of Camp Hope – Alabama, are presenting at the Summit on the Safe at Home: PSN’s Role in Reducing Domestic Violence panel.
Since 2022, the Department of Justice has committed more than $1.6 million of funding for new projects to address domestic violence within the Northern District of Alabama.
In 2022, the Department of Justice’s Office of Violence Against Women (OVW) awarded $500,000 to One Place to facilitate and implement the Domestic Violence and Firearms Technical Assistance Project (FTAP) in Jefferson County, and the Bureau of Justice Assistance awarded the Jefferson County District Attorney’s Office in Birmingham approximately $340,000 to enhance the response of local law enforcement and prosecutors in Jefferson County. Additionally, the U.S. Attorney’s Office has dedicated Project Safe Neighborhoods grant resources to enhance protections for domestic violence victims within the district.
In 2023, the OVW awarded One Place $800,000 to support its mission as the comprehensive service provider for victims of domestic and sexual violence in Jefferson County. The Hispanic Interest Coalition of Alabama (¡HICA!) and the Jefferson County Department of Health (JCDH) partnered with One Place in its application to enhance services to survivors of domestic violence in Jefferson County. The award comes to One Place through OVW’s Improving Criminal Justice Responses grant program.
Attorney General Merrick B. Garland’s Remarks Delivered:
Thanks everybody. Thanks, Amy. Thanks to everybody from the team at the Office of Justice Programs. Thanks, Karhlton, and everybody from the Bureau of Justice Assistance.
I know how hard it is to put something like this together and how much work. And I greatly appreciative everyone’s efforts.
Thank you, Mayor Hogsett, and Chief Taylor for welcoming us to Indianapolis. We are grateful to both of you for being here today and for hosting us. Mayor Hogsett, as a former U.S. Attorney, we regard you as one of our own, and we are grateful that you are here.
I also want to recognize the state and local law enforcement leaders, city and town leaders, and community partners who have traveled from across the country to be here for the next three days.
I speak for all of us at the Justice Department when I say that your perspectives and your insights are invaluable to us. We have an enormous amount of respect for the work you do every single day in your communities.
And speaking of all of us at the Justice Department, I really mean that. I am also joined here this morning by Associate Attorney General Vanita Gupta, whom you all know well.
Also here are leaders from each of the Department’s law enforcement components, the ATF, FBI, DEA, and U.S. Marshals Service; 40 of our United States Attorneys and senior leaders from U.S. Attorneys’ Offices across the country; leaders from the Office on Community Oriented Policing Services (COPS Office), the Office on Violence Against Women (OVW), the Office for Access to Justice (ATJ); and many other components.
I am very pleased that all of them are here; I am very proud of their work.
Convenings like this one, with our law enforcement and community partners, are always important to us at the Justice Department. We know that the best time to build relationships across agencies and jurisdictions is before a crisis or an incident occurs in our communities.
But this is an especially critical time in our work together to keep our communities safe.
Today, we are confronting a global threat environment that makes it particularly urgent for us to remain vigilant in the face of risks of terrorism and hate-fueled violence.
We are closely monitoring the impact that the conflict in the Middle East may have in inspiring foreign terrorist organizations, homegrown violent extremists, and domestic violent extremists both in the United States and abroad.
And all of us have seen the extremely sharp increase in the volume and frequency of threats against Jewish, Muslim, Arab, and Palestinian communities across our country since October 7. The fear that so many communities are feeling is palpable.
This comes at a time when law enforcement agencies and communities across the country have already been facing significant challenges in the form of violent crime.
We are here together today because we know that no one law enforcement agency, no one community, no one town or city can address these challenges on its own. We need each other. We need to work together.
We are also here in Indianapolis for the same reason that all of us came to public service in the first place: we believe that everyone in our country deserves to feel safe and to be safe in our communities.
Every person, in every neighborhood, deserves to feel protected. Every parent deserves to know that their children will be safe when they play outside.
Violent crime is not just a threat to people’s physical safety; it is a threat to their ability to freely go about their daily lives. Violent crime isolates people and their communities. It deepens the fractures in our public life. And when it is not addressed, it can undermine people’s trust in the government and in each other.
Combating the threat that violent crime poses to people’s safety, and to our shared future, is what motivates us at the Justice Department every day.
Shortly after I was sworn in as Attorney General, we launched our Department-wide Violent Crime Reduction Strategy aimed at addressing the spike in violent crime during the pandemic.
Central to that strategy is the importance of our partnerships.
That includes partnership among federal law enforcement agencies assisting in the fight against violent crime; partnership with the local communities harmed by that crime; and partnership with the state, local, Tribal, and territorial law enforcement agencies protecting those local communities every day.
Another element of that strategy is the recognition that the best anti-violent crime strategies are tailored to the needs of, and are developed with, individual communities.
That’s why one of the first things we did was focus on strengthening Project Safe Neighborhoods (PSN). We oriented the program around a set of principles that put community partnerships, community trust, violence prevention, and measuring results at the center of our efforts.
Since then, each of our U.S. Attorneys’ Offices has worked with its partners in state and local law enforcement to develop and implement data-driven, district-specific, anti-violent crime efforts.
Our U.S. Attorneys have brought together law enforcement, research, and community partners to develop PSN programs designed to focus on the drivers of violent crime in their communities. And I am proud of the work they have done. To give just a few examples:
Right here in Indianapolis, less than two weeks ago, a PSN case out of the U.S. Attorney’s Office for the Southern District of Indiana brought together its partners at the FBI’s Indianapolis Field Office and the Indianapolis Metropolitan Police Department to secure the conviction and sentencing of a repeat violent offender.
In the Middle District of Florida, the office’s PSN strategy has focused not only on the investigation, disruption, and prosecution of violent crime, but also on targeted outreach to members of the community, including students, community leaders, and people incarcerated in state prisons nearing their release dates. This outreach is aimed at preventing violence before it occurs.
And in the Northern District of Alabama, the office created a PSN program, the Operation Safe Families Initiative, to combat the domestic violence that is driving a significant part of the violent crime in that district. In Jefferson County, Alabama, domestic abusers annually commit more than 70% of the homicides.
The Northern District of Alabama’s PSN program brings together — in one building — federal and local prosecutors as well as law enforcement, victim service providers, and other partner agencies.
This program gives victims of domestic violence a place to go that can meet their needs — not just in terms of pursuing enforcement options against the perpetrator, but also in regaining a sense of safety and well-being.
Like PSN, the National Public Safety Partnership, or PSP, is focused on strengthening partnerships across communities to tackle violent crime.
PSP makes DOJ tools and expertise available to local law enforcement agencies as they work to address the unique challenges of their communities. Sites participating in this program are able to consult with and receive training, technical assistance, and an array of Department resources to combat violent crime.
Today I want to welcome the newest sites participating in PSP this year, all of which are represented here today.
- Knoxville, Tennessee;
- Minneapolis, Minnesota;
- Raleigh, North Carolina;
- San Antonio, Texas; and
- Vallejo, California;
You join more than 50 communities that have worked with DOJ personnel, outside experts, and each other to better understand and tackle the violent crime challenges specific to their communities. We look forward to working together with you.
In addition to PSN and PSP, the Justice Department is putting to use every resource at our disposal in the fight against violent crime.
This includes our prosecutors, who are going after the recidivists and gangs that are responsible for the greatest violence.
This includes our law enforcement components, each of which is working with its state and local law enforcement partners to seize illegal guns and deadly drugs.
And this includes our grantmaking components, which are working closely with communities across the country to provide targeted support and assistance.
We are funding evidence-based, community-centered initiatives aimed at preventing and disrupting violence. We are funding community policing efforts that build the public trust between law enforcement and the community that we know is essential to public safety.
And we are making critical investments in hiring more law enforcement officers in communities nationwide to address the crisis in recruitment and retention to support much-needed resources for law enforcement officer health and wellness.
As we work with our partners nationwide to implement community-tailored approaches to combating violent crime, we also recognize that there are universal challenges that require a comprehensive approach. That includes the epidemic of gun violence.
And that is why ATF is working with its state and local partners to trace more firearms than ever before in its history.
That is why we are operating Crime Gun Intelligence Centers in every ATF Field Division to coordinate comprehensive tracing and ballistics analysis. These centers, which are represented here today, allow state and local law enforcement agencies to harness the power of ATF’s ballistics database and firearms-tracing technologies. This information helps lead them to the repeat shooters who fuel violent crime.
In addition, all 94 of our U.S. Attorneys’ Offices are bringing gun trafficking cases under the new provisions of the Bipartisan Safer Communities Act.
Those provisions have given us new authorities to go after gun traffickers and straw purchasers responsible for flooding our communities with guns. Our prosecutors have now charged nearly 300 defendants under that Act and seized hundreds of firearms in connection with these cases.”
I have mentioned several examples of how the Justice Department is working to implement our partnership-based violent crime strategy.
In implementing that strategy, we have generated a wealth of resources shaped heavily by the feedback we have received from all of you.
But information is only as helpful as it is accessible. That is why, today we are releasing a new publication through the Office of Justice Programs, our Violent Crime Reduction Roadmap.
We have spent two and a half years using every available resource to combat the violent crime spike, and this is a guide to the programs and strategies that we have seen work.
We have seen them work in the District of New Jersey. There, federal, state, and local law enforcement have worked together to target their resources on the individuals and organizations that were primarily driving violent crime in five target cities with the worst violent crime. These efforts have paid off, as the number of shootings have decreased significantly in New Jersey, statewide.
And we have seen them work in the Eastern District of Michigan, where the U.S. Attorney’s Office has partnered with both law enforcement and the community to drive down violent crime in Detroit.
Through the One Detroit Partnership, they have aggressively prosecuted the primary drivers of violence, worked with community groups to prevent violence from occurring, and collaborated with corrections experts to support those who are returning to the community to ensure they do not return to violence.
This kind of partnership works: recent data from the Detroit Police Department indicate that this year the city is on track for the fewest homicides in Detroit in over 60 years.
It is our hope that the Violent Crime Reduction Roadmap provides a starting point for communities across the country to learn about resources available to help them replicate these efforts.
As I said at the start of my remarks, all of our communities are facing urgent and unprecedented challenges today.
But I am encouraged by the data we have been seeing indicating a recent decline in homicides. The FBI has reported that the number of homicides fell over 6% nationally between 2021 and 2022.
And earlier this year, the Major Cities Chiefs Association reported an over 10% decrease in the number of murders across 69 major cities through September of this year, compared to the same time period last year. These developments are encouraging. But this is not a time to relax our efforts. We have so much more to do.
I am even more encouraged by your presence here.
We know that the only way to replicate what is working and to bring violent crime down in every community is learning from each other and by investing in our partnerships.
I know that is what you’re going to be doing over the next three days.
Our work together is our best hope to fulfill the promise that brought us all here — that we will protect each other.
Thank you for your commitment to that work.
Arvin High School Employee Pleads Guilty to Federal Explosive Offenses and Making False Statements to FBIRead the Press Release
FRESNO, Calif. — Angelo Jackson Mendiver, 27, of Bakersfield, a campus security supervisor at Arvin High School, pleaded guilty today to conspiring to engage in manufacturing and dealing in explosive materials and mailing explosive devices, as well as making false statements to FBI agents, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Mendiver used an Instagram account to sell explosives and explosive materials and worked closely with a male juvenile Bakersfield high school student to fulfill transactions and send explosives in the mail to residents of other states. On June 1, 2023, a federal search warrant executed at Mendiver’s residence resulted in the seizure of approximately 500 pounds of explosives and explosive materials. Agents seized another 500 pounds of explosives and explosive materials from the juvenile’s residence. At both residences, agents found other items used to make explosives.
In one Instagram message to the juvenile, Mendiver sent a photo of titanium salute, an explosive device, followed by two videos he took of homemade explosive devices that he had made and the statement that “homemade kills all consumer.”
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.
Mendiver is scheduled for sentencing on April 1, 2024. He faces a maximum statutory penalty of five years in prison and a $250,00 fine for each count. 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.
Amarillo man guilty of violent crime spree from Beaumont to LufkinRead the Press Release
BEAUMONT, Texas – An Amarillo man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Jamelle Antoine Parker, 35, pleaded guilty to carjacking and Hobbs Act Robbery before U.S. District Judge Marcia A. Crone on Dec. 11, 2023.
According to information presented in court, on April 1, 2023, Parker approached a woman putting air in her tires at a gas station on Washington Boulevard in Beaumont. Parker demanded the car from the woman. While doing so, he reached in his waistband for what the woman believed to be a firearm. She ran to a nearby store as Parker fled in her vehicle. Parker drove the stolen vehicle to the Criss Cross convenience store on Martin Luther King Jr. Parkway in Beaumont. Parker entered the store, told the clerk he had a firearm, and demanded money from the register or the clerk would be killed. Parker obtained money from the clerk and fled the scene. Parker then drove the stolen vehicle to Lufkin where he crashed the vehicle into the Big's convenience store on West Frank, Avenue. Parker entered that convenience store and told the clerk he had a firearm and demanded and obtained money from the clerk. Parker fled on foot towards a nearby Whataburger. Parker approached a vehicle in the drive-through lane of the Whataburger and demanded the driver’s vehicle, while asking the driver if he “wanted to die today.” The driver exited the vehicle, and Parker grabbed him by the neck and pushed him aside. Parker began speeding away in the stolen vehicle, in the direction of a responding officer. Parker was shot by the officer in the legs with non-life threatening wounds. Parker crashed the vehicle after a brief chase and was taken into custody.
Parker was indicted by a federal grand jury on May 3, 2023. He faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Beaumont Police Department, and the Lufkin Police Department and prosecuted by Assistant U.S. Attorney Russell James.
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Albany Man Pleads Guilty to Pandemic Relief FraudRead the Press Release
ALBANY, NEW YORK – Scott Solomon, age 37, of Albany, pled guilty today to defrauding a loan program meant for businesses struggling with the financial effects of the coronavirus pandemic.
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.
Solomon admitted that in 2020, he fraudulently applied for and obtained Paycheck Protection Program (PPP) loans for two restaurants in Saratoga Springs, New York, that he had once operated. Solomon submitted false and forged tax documents as part of each loan application, and lied about each restaurant’s number of employees and payroll.
At the time Solomon applied for the loans, neither restaurant was operational, and Solomon used the loaned funds, totaling $163,993, in ways he knew were prohibited by the PPP. Solomon also fraudulently obtained forgiveness of one of the loans, in the amount of $87,500, by falsely telling the lender that he used most of the loaned funds for payroll.
PPP loans, which were issued by financial institutions in 2020 and 2021 and guaranteed by the U.S. Small Business Administration, needed to be used by the borrowing businesses only on certain, permissible expenses, such as payroll costs, interest on mortgages, rent, and utilities.
Solomon pled guilty to two counts of bank fraud. He faces up to 30 years in prison, and up to 5 years of post-imprisonment supervised release, when he is sentenced on April 30, 2024 by Senior United States District Judge Gary L. Sharpe. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Solomon has also agreed to pay $163,993 in restitution and to forfeit that same amount as proceeds of his crimes.
The FBI investigated this case and Assistant U.S. Attorney Michael Barnett is prosecuting this case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Albany County Man Pleads Guilty to Distribution and Possession of Child PornographyRead the Press Release
ALBANY, NEW YORK – Joshua White, age 46, of Albany County, pled guilty today to one count of distribution of child pornography and one count of possession of child pornography. United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
White admitted that he distributed sexually explicit images of a minor known to him to another person over text message, and that when he met with police in July 2023, he possessed child pornography on his cellular telephone depicting other victims that he obtained from the Internet and social media messaging applications.
At sentencing scheduled for April 11, 2024, before Senior United States District Judge Gary L. Sharpe, White faces a mandatory minimum imprisonment term of 5 years and a combined statutory maximum imprisonment term of 40 years for the distribution and possession offenses. Additionally, White will be required to serve a post-imprisonment term of supervised release of between 5 years and life, must register as a sex offender upon release, pay restitution to the victims of his offenses, and forfeit the device he used to commit them. A defendant’s sentence is imposed by a judge based on the statutes the defendant violated, the U.S. Sentencing Guidelines, and other factors.
HSI and the New York State Police investigated this case, and Assistant United States Attorney Michael D. Gadarian prosecuted this 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.
Activity in the U.S. Attorney's OfficeRead the Press Release
Child Pornography
Daniel Gumm, age 35, of Laramie, Wyoming, was sentenced to 36 months in federal prison for possession of child pornography. According to court documents, on Dec. 27, 2022, the National Center of Missing and Exploited Children received information that a user of Kik Messenger was in possession of suspected child pornography. An agent with the Wyoming Division of Criminal Investigation Internet Crimes Against Children Task Force traced the email and Verizon IP addresses to Gumm and subsequently found child pornography on his devices. This case was prosecuted by Assistant U.S. Attorney Z. Seth Griswold. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Nov. 30 in Casper.
Firearms Offenses
Justin Taylor Clayburn, age 48, of Laramie, Wyoming, was sentenced to 60 months in federal prison for being a felon in possession of a firearm and for making false statements to acquire a firearm. Carl Everette Holaday, age 46, of Laramie, Wyoming was sentenced to 18 months for false statements to acquire a firearm and the straw purchase of a firearm for Clayburn. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentences on Nov. 29 in Casper.
According to court documents, agents with the Wyoming Division of Criminal Investigation (DCI) discovered multiple firearms and ammunition in Clayburn’s residence during the investigation of another crime. Clayburn is a convicted felon who is prohibited from possessing firearms. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) agents traced the purchase of firearms found in Clayburn’s residence to Holaday. Clayburn and Holiday were indicted in May and each pled guilty in September. This crime was investigated by DCI and ATF. The case was prosecuted by Assistant U.S. Attorney Jonathan C. Coppom.
Drug Trafficking
Shelby Toby Girten, age 27, of Cheyenne, Wyoming, was sentenced to 60 months’ imprisonment for distribution of fentanyl. According to court documents, Cheyenne Police Department officers and a Drug Enforcement Administration (DEA) task force officer initiated an investigation of a suspected drug overdose and death on Feb. 6. Through the course of the investigation, officers tracked the purchase of fentanyl back to Girten. During an interview, Girten admitted to selling fentanyl pills to the victim. This crime was investigated by the Cheyenne Police Department and the DEA. The case was prosecuted by Assistant U.S. Attorney Timothy J. Forwood. Senior U.S. District Court Judge Nancy D. Freudenthal imposed the sentence, which included $500 in community restitution, on Nov. 30.
Domestic Violence
Anthony Flores, age 29, was sentenced to 12 months and one day in federal prison after he waived indictment and plead guilty to domestic violence. According to court documents, on May 24, Yellowstone dispatch received a call of domestic violence at the Bitterroot dorm in the Old Faithful District of Yellowstone National Park. Interviews with the victim alleged prolonged domestic violence, including bodily injury and strangulation/suffocation. The victim had wounds consistent with the reported assault. This case was prosecuted by Z. Seth Griswold. Senior U.S. District Court Judge Nancy D. Freudenthal imposed the sentence on Nov. 30 in Cheyenne.
Illegal Re-entry of a Previously Deported Alien
Jose Alonso Bedolla-Vasquez, age 32 of Wilson, Wyoming, was sentenced to eight months in federal prison for illegal re-entry of a previously deported alien into the United States. The defendant has been in federal custody for approximately six months and will be deported to Mexico. According to court documents, the defendant was born in Tlaxcala, Mexico, and is a citizen of Mexico. On Jan. 28, Bedolla-Vasquez was arrested by the Wyoming Highway Patrol in Teton County for driving under the influence of alcohol. He admitted to being a citizen of Mexico and the U.S. Immigration and Customs Enforcement verified that he had been previously deported four separate times. The case was prosecuted by Assistant U.S. Attorney Michael J. Elmore. Chief U.S. District Court Judge Scott W. Skavdahl imposed the sentence on Nov. 27.
About the United States Attorney’s Office
The United States Attorney’s Office is responsible for representing the federal government in virtually all litigation involving the United States in the District of Wyoming, including all criminal prosecutions for violations of federal law, civil lawsuits brought by or against the government, and actions to collect judgments and restitution on behalf of victims and taxpayers. The Office is involved in several programs designed to make our communities safer. They include:
Environmental Justice
The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
Project Safe Childhood
Project Safe Childhood (PSC) is a DOJ initiative that combats the proliferation of technology-facilitated sexual exploitation crimes against children. The threat of sexual predators soliciting children for sexual contact is well-known and serious.
Project Safe Neighborhoods
Project Safe Neighborhoods (PSN) is a nationwide commitment to reducing gun and gang crime in America by networking existing local programs that target gun crime and providing these programs with additional tools necessary to be successful.
Victim Witness Assistance
The Victim Witness Coordinator for the United States Attorney’s Office for the District of Wyoming is dedicated to making sure that victims of federal crimes and their family members are treated with compassion, fairness, and respect.To report a federal crime, go to: https://www.justice.gov/actioncenter/report-crime#trafficking
Saturday 9 December 2023
Three Leaders of a Violent National Gang Convicted of RICO in DetroitRead the Press Release
DETROIT – After a six-week trial in federal court, a jury convicted three high-ranking leaders of the Almighty Vice Lords Nation of RICO conspiracy, United States Attorney Dawn N. Ison announced today. Ison was joined in the announcement by James Deir, Special Agent in Charge of the Detroit Field Office of the Alcohol, Tobacco, Firearms and Explosives (ATF).
Evidence at trial proved the Almighty Vice Lords Nation (AVLN) was a sprawling criminal enterprise which committed acts of violence, drug dealing, and other crimes, across the country. The AVLN enterprise began in Chicago, which is still considered its headquarters. The AVLN are divided into different branches, each with their own leadership that answers to a “board” in Chicago. The trial involved leaders of two branches, the Mafia Insane Vice Lords, and the Insane Vice Lords. The jury convicted:
- Martin Murff, 54, of Chicago, who had the title of “Prince” and was the highest-ranked Mafia Insane Vice Lords in the country and a member of the national leadership of the AVLN;
- Kevin Fordham, 53, of Detroit, another “Prince,” who was the highest-ranked Insane Vice Lord in Michigan and a member of the national leadership of the AVLN; and,
- Eddie Reid, 39, of Detroit, a “Chief” and the highest ranked Mafia Insane Vice Lord in Michigan.
The evidence at trial showed that these leaders worked together under the umbrella of the Almighty Vice Lord Nation and agreed that they or their enterprise members would commit acts of racketeering, including murder, narcotics trafficking, and witness intimidation. In one seizure alone, law enforcement intercepted over 2.5 kilograms of pure fentanyl destined for Detroit.
“The Almighty Vice Lords Nation is a criminal enterprise that followed its own laws rather than the laws of the United States. Through the hard work of this investigation and trial, we have said no more; we will not tolerate the violence and criminality the Vice Lords stand for and perpetuate,” United States Attorney Dawn N. Ison said. “With this verdict, we have dismantled the leadership of multiple branches of this criminal organization and disrupted their ability to operate in our neighborhoods.”
“The Almighty Vice Lord Nation is a shell of what it was. Today’s verdict against Martin Murff, Eddie Reid, and Kevin Fordham sends a strong message to gangs across the Detroit - Chicago metropolitan areas….cease and desist with poisoning and terrorizing our communities with senseless gun violence and drug trafficking. If you do not, serious consequences will come,” said, ATF Special Agent in Charge James Deir “These defendants posed as legitimate community members while overseeing an interstate criminal enterprise that killed and maimed people in both Michigan and Illinois. Their flagrant assault on our way of life ends today with this just verdict.”
The jury acquitted Kenneth Johnson, who will be returned to the Michigan Department of Corrections to serve a lengthy sentence for an unrelated conviction.
More than 20 other members of the AVLN were indicted as a result of this investigation and await trial in federal court.
Omaha Sentenced for Methamphetamine ConspiracyRead the Press Release
Acting United States Attorney Susan Lehr announced that James Lee Pokorny, 53, of Omaha, Nebraska was sentenced on December 8, 2023, in federal court in Omaha, Nebraska, for his participation in a methamphetamine drug conspiracy. Chief United States District Judge Robert F. Rossiter Jr., sentenced Pokorny to 82 months imprisonment. There is no parole in the federal system. After Pokorny’s release from prison, he will begin a 3-year term of supervised release.
On September 13, 2021, Pokorny sold a confidential source 25.02 grams of actual meth. Then, on October 4, 2021, and October 8, 2021, Pokorny met with his source of supply and then sold a confidential source 51.57 and 50.19 grams of actual meth.
Pokorny agreed with at least one other person to distribute 126 grams of actual meth in Omaha between September 13, 2021, and October 8, 2021.
This case was investigated by the Omaha Police Department.
Omaha Man Sentenced to 10 Years’ Imprisonment for Methamphetamine ChargeRead the Press Release
Acting United States Attorney Susan Lehr announced that Gabriel Ramirez, 43, of Omaha, Nebraska, was sentenced December 8, 2023, in federal court in Omaha for conspiracy to distribute methamphetamine. Chief United States District Court Judge Robert F. Rossiter Jr., sentenced Ramirez to 120 months’ imprisonment. There is no parole in the federal system. After Ramirez’s release from prison, he will begin a 3-year term of supervised release. Ramirez also gave up any right or claim he may have had in $9,140 in currency seized during the investigation.
On March 18, 2022, law enforcement conducted a controlled narcotics buy from Ramirez utilizing a confidential informant who purchased 217 grams of meth from Ramirez in the Omaha area.
On April 14, 2022, law enforcement executed a search warrant on Ramirez’s South Omaha residence and vehicle and seized 3271 grams of meth, 21 grams of cocaine, and US Currency. During a post-Miranda interview, Ramirez admitted to being a drug courier for the Sinaloa Cartel and had been receiving and selling meth for the Cartel since approximately September of 2021. Ramirez estimated that over the past he had picked up and sold between 300 and 400 pounds of meth for the Cartel.
This case was investigated by the Federal Bureau of Investigation.
Leader of Seven Mile Bloods Street Gang Convicted of Racketeering, Murder, and Other Related OffensesRead the Press Release
DETROIT – On Friday afternoon, following a six-week trial, a federal jury in the Eastern District of Michigan convicted a leader of the Seven Mile Bloods Street Gang of 22 counts, including racketeering conspiracy, murder, attempted murder, and related firearms offenses, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Cheyvoryea Gibson, Special Agent in Charge of the FBI’s Detroit Division.
Billy Arnold, age 37, was convicted of RICO Conspiracy, two counts of Murder in Aid of Racketeering, 10 counts of Attempted Murder in Aid of Racketeering, and multiple firearm counts.
According to evidence presented during the trial, the Seven Mile Bloods operated on the east side of Detroit, between Gratiot Avenue and Kelly Road and between Seven and Eight Mile Roads. Seven Mile Bloods or “SMB” members claimed this area as their territory and referred to it as the “Red Zone.” The area is in zip code 48205, which SMB members referred to as “4-8-2-0-Die.”
Evidence presented at trial showed an ongoing gang war between the Seven Mile Bloods and an alliance of other gangs operating on Detroit’s east side stemming from a murder that Arnold committed in July 2014. Arnold, who was on parole at the time, encountered two rival gang members during a meeting at a parole office in Detroit. After the meeting, Arnold waited outside the parole office until the rival gang member left. Arnold followed the rival gang members and their two companions a short distance before opening fire, killing one of the victims and seriously injuring another. Following the murder, the Seven Mile Bloods and rival gangs began violently attacking one another and posted respective “hit lists” on social media. The violence reached a boiling point in 2015 when during a one-month span, Arnold murdered one rival gang member, and shot numerous others. One of Arnold’s victims, who was shot while taking his two young daughters for a walk, was paralyzed as a result of the shooting. Arnold shot another victim, who was only 15 years old at the time of the shooting, while the victim was at his first day of work at a banquet hall in Roseville. Arnold shot the victim while attempting to murder a rival gang member who was standing near the victim in a parking lot. The 15-year-old victim and the rival gang member survived the shooting. On September 26, 2015, Arnold and another Seven Mile Blood member were arrested following a high-speed chase in Detroit. Following the chase, law enforcement recovered an assault rifle from the vehicle that was used in one murder and several other shootings.
The investigation further resulted in the seizure of more than 20 firearms, including several high-powered assault rifles.
Arnold is the 20th member or associate of the Seven Mile Bloods to have been convicted as a result of the investigation.
This case was the result of a collaborative effort by multiple law enforcement agencies. Investigators were able to bring together separate probes into various members of this organization and its criminal activities into one encompassing investigation. Partners include the Detroit Police Department Gang Intelligence Unit, the FBI Violent Gang Task Force, which consists of representatives of Detroit Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, Michigan Department of Corrections and Michigan State Police, with the cooperation of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Drug Enforcement Administration (DEA). Also assisting in the investigation were the Charleston and South Charleston Police Departments in West Virginia.
“This guilty verdict is the final chapter in the case of the Seven Mile Bloods - a gang who for years terrorized the residents living on the east of Detroit,” said U.S. Attorney Ison. “The case against SMB, and against Billy Arnold in particular, is an example of what can happen when we focus on those few responsible for so much violence. With today’s verdict, and with the sentence required by law for Billy Arnold, the men and women in our community who were victimized by this group will receive some measure of justice. And with today’s verdict, and with the help of the vast majority of the residents of this neighborhood who want peace, we can once and for all put the terrible carnage of the “Red Zone” behind us.”
“While the damage and violence caused by Mr. Arnold and members of SMB cannot be undone, our hope is that this final sentence brings a sense of justice to all those impacted,” said Special Agent in Charge Cheyvoryea Gibson of the FBI in Michigan. "We would like to commend our law enforcement partners on the Detroit Violent Gang Task Force (VGTF) for their relentless efforts in working this case for nearly a decade. No matter how long it takes, the FBI remains committed to dismantling gang networks and removing violent offenders from our streets to ensure a safe environment for all Michigan residents."
Judge Sean F. Cox presided over the trial and will sentence Arnold on April 10, 2024. Arnold faces mandatory life imprisonment.
Friday 8 December 2023
West New York Financial Advisor Convicted on 11 Counts at Trial in Multimillion-Dollar Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A West New York financial advisor was found guilty on 11 counts of defrauding public health insurance plans out of more than $4 million and transacting in the criminal proceeds, U.S. Attorney Philip R. Sellinger announced today.
Kaival Patel, 54, of West New York, New Jersey, was convicted on Dec. 7, 2023, of one count of conspiracy to commit wire fraud and health care fraud, four counts of health care fraud, one count of conspiracy to commit money laundering by transacting in criminal proceeds, and five counts of money laundering by transacting in criminal proceeds following an 11-day trial before U.S. District Judge Robert B. Kugler.
U.S. Attorney Philip R. Sellinger“This defendant lined his own pockets by taking advantage of health insurance plans for New Jersey state and local government employees, defrauding them of millions of dollars by conspiring to obtain reimbursements for medically unnecessary compound prescription medications. Together with our law enforcement partners, we will continue to investigate and prosecute those who abuse and defraud the health care system.”
“Filing false compound medication claims and pocketing the reimbursements isn't a new scheme,” FBI – Newark Special Agent in Charge James E. Dennehy said. “For years now, the FBI Newark and our law enforcement partners have doggedly investigated and brought to justice dozens of others who defrauded healthcare companies, state and federal government agencies, and taxpayers. Yet, these criminals don't seem to learn the lessons of those who tried to steal what isn't theirs and get rich off the backs of the hardworking public. Our hope is anyone thinking of using a similar plan realizes they will get caught, and they will go to federal prison along with Patel.”
“The defendant enriched himself by defrauding the New Jersey public health insurance plans out of more than $4 million,” Tammy L. Tomlins, Special Agent in Charge of IRS – Criminal Investigation, Newark Field Office, said. “Today’s conviction is the result of the great investigative work of IRS-CI Special Agents and our law enforcement partners and their commitment to protect the integrity of our health care systems.”
According to documents filed in this case and the evidence at trial:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Compounded medications require a prescription from a physician.
Patel created and operated a company called ABC Healthy Living LLC to market compound prescription medications. Patel and his conspirators learned that certain state and local government employees had insurance that would reimburse up to thousands of dollars for a one-month supply of certain compound medications such as vitamins, scar creams, pain creams, libido creams, and acid reflux medications. Patel and a conspirator approached Patel’s family member, a medical doctor who owns and operates a clinic in Newark, New Jersey, and convinced him to authorize prescriptions for the compound medications for patients who had no medical need for the prescriptions. Patel received commissions for the compound medication prescriptions.
Patel and his conspirators paid a group of corrections officers to go to Patel’s family member’s medical practice for the purpose of receiving fraudulent prescriptions. Patel conspired with a compounding pharmacist to add unnecessary ingredients to the compound medications to further increase their cost and augment his illicit profits. Patel engaged in a series of financial transactions to receive proceeds from the health care fraud and wire fraud conspiracy.
To date, approximately 47 people have been convicted or pleaded guilty in the overarching conspiracy.
On the count of conspiracy to commit wire fraud and health care fraud, Patel faces a maximum penalty of 20 years in prison and a fine of $250,000 fine, or twice the gross pecuniary loss from the offense, whichever is greatest. On each of the remaining 10 counts, he faces a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross pecuniary gain or loss from the offense, whichever is greatest. Sentencing is scheduled for April 10, 2024.
U.S. Attorney Sellinger credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins in Newark; and the U.S. Department of Labor, Office of Inspector General, Northeast Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to the conviction.
The government is represented by Assistant U.S. Attorneys Daniel A. Friedman of the Criminal Division in Camden and DeNae M. Thomas of the Health Care Fraud Unit.
U.S. Postal Inspector Charged with Mail Theft, Obstruction of Justice, and Money LaunderingRead the Press Release
A federal grand jury in the Eastern District of Louisiana returned an indictment yesterday charging a U.S. Postal Inspector with mail theft, obstruction of justice, and money laundering.
According to the indictment, Michael Morse, 52, of Madisonville, Louisiana, served as a Postal Inspector in the U.S. Postal Inspection Service. In this role, Morse was responsible for investigating and preventing crime that involved the mail, including mail and package theft. Despite this duty, on Nov. 12, 2020, Morse allegedly stole a Priority Mail Express package from a U.S. Postal Service processing and distribution center and removed from the package cash and a global positioning system (GPS) tracking device. Further, Morse allegedly obstructed justice when he knowingly attempted to mislead other law enforcement officers about the package and the GPS device. Morse also allegedly engaged in money laundering when he deposited cash and pre-paid cards constituting proceeds of the mail theft in various cryptocurrency and precious metal accounts.
Morse is charged with one count of mail theft, one count of obstruction of justice, and nine counts of money laundering. If convicted, he faces a maximum penalty of five years in prison on the mail theft count and 20 years in prison on the obstruction of justice and each of the money laundering counts.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and Acting Executive Special Agent in Charge Dimitriana Nikolov of the USPS Office of Inspector General’s (USPS-OIG) Special Inquiries Division made the announcement.
The USPS-OIG is investigating the case.
Trial Attorneys Trevor Wilmot and Jacob Steiner of the Criminal Divion’s Public Integrity Section (PIN) are prosecuting the case, with valuable assistance from former PIN Trial Attorney Jolee Porter.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two McLean Companies and CEO Ordered to Pay $1.1 Million for Defrauding the Paycheck Protection ProgramRead the Press Release
ALEXANDRIA, Va. – The U.S. District Court for the Eastern District of Virginia ordered IT Services Now LLC and O@sis Group LLC, located in McLean, and their CEO, Mustafa Khabir, 51, of Haymarket, to pay $1,052,227 for submitting fraudulent applications to obtain federally guaranteed loans through the Small Business Administration’s (SBA) Paycheck Protection Program (PPP).
The PPP offered loans to small businesses for economic relief during the COVID-19 pandemic. Each PPP loan was calculated based on the applicant’s payroll and number of employees. Applicants were required to submit supporting documents so PPP lenders and the SBA could verify the applicant’s payroll and employee count.
The government filed a complaint for violations of the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), alleging that the defendants fraudulently obtained $460,300 by submitting four PPP applications to SBA-approved lenders. In each of the applications, the companies and Khabir misrepresented their payroll and employee counts. They also submitted fabricated payroll and tax documents in support of each application. The lenders ultimately issued two PPP loans to IT Services Now and one PPP loan to O@sis Group.
After the loans were issued, Khabir used the PPP funds to invest in cryptocurrency and his companies defaulted on all three loans. The court entered judgment in favor of the United States on all counts.
The outcome in this case was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia; the U.S. Small Business Administration’s Office of General Counsel, Litigation Unit; and the U.S. Small Business Administration, Office of Inspector General.
The case was prosecuted by Assistant U.S. Attorney William Hochul III and assisted by Forensic Auditor Peter Melaragni. The scheme was uncovered by the U.S. Attorney’s Office using PPP data analytics.
The case caption is United States v. IT Services Now LLC et al., 1:23-cv-00738-LMB-WEF
(E.D. Va.). This case follows litigation to enforce a Civil Investigative Demand, which may be found at United Sates v. Khabir, No. 1:22-mc-00004-AJT-TCB (E.D. Va.).
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Two Former Nurses Indicted in Connection to the Diversion of Dangerous Narcotics by Medical ProfessionalsRead the Press Release
CONCORD – A Newbury woman and Northfield woman, two former nurses, were indicted in connection to the diversion of dangerous narcotics by medical professionals, U.S. Attorney Jane E. Young announces.
Robin Nichols, 63, of Newbury, was indicted on one count of Tampering with Consumer Products and one count of Obtaining a Controlled Drug by Misrepresentation, Fraud, Deception, or Subterfuge. Nichols will appear in federal court in Concord on December 8, 2023.
Lisa Richardson, 47, of Northfield, was indicted on one count of Tampering with Consumer Products and one count of Obtaining a Controlled Drug by Misrepresentation, Fraud, Deception, or Subterfuge. Richardson will appear in federal court in Concord on December 8, 2023.
According to the charging documents related to Robin Nichols, on April 15, 2023, while working as a nurse at Catholic Medical Center, Nichols removed a quantity of fentanyl, a narcotic painkiller drug in liquid form, from a syringe intended for an operating room patient and which she knew was intended for that patient and replaced the fentanyl with a quantity of saline.
According to the charging documents related to Lisa Richardson, on December 30, 2022, while working as a nurse at Concord Hospital, Richardson entered the room of a patient in the Intensive Care Unit (“ICU”) and removed a quantity of fentanyl, a narcotic painkiller drug in liquid form, from an intravenous line bag attached to the patient and which she knew was being dispensed to that patient, and replaced the fentanyl with a quantity of saline.
Nichols and Richardson’s charges of tampering with a consumer product provides for a sentence of up to 10 years in prison, up to three years of supervised release, and a fine of up to $250,000. The charge of obtaining a controlled drug by misrepresentation, fraud, deception, or subterfuge provides for a sentence of up to 4 years in prison, up to one year of supervised release and a fine of up to $250,000.
Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Food & Drug Administration Office of Criminal Investigations and the Drug Enforcement Administration jointly led these investigations. Assistant U.S. Attorney Geoffrey Ward is prosecuting the cases.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Law enforcement in the District of New Hampshire has utilized resources to enforce federal laws in connection to the diversion of dangerous narcotics by medical professionals. In June 2023, the U.S. Attorney’s Office settled a $2 million civil action with Cheshire Medical Center for their failure to fulfill obligations under the Controlled Substances Act, which enabled a nurse to steal twenty-three intravenous bags of fentanyl solution from an automatic medication dispensing machine. Also in June 2023, the U.S. Attorney’s Office settled a $300,000 civil action with PillPack by Amazon, a pharmacy, to resolve allegations that they violated the Controlled Substances Act, which risked the division of drugs that are often abused in our communities.
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Three Norteño Gang Members Who Murdered Victims in San Francisco Sentenced to Decades in Prison Following Their Convictions on Racketeering Conspiracy ChargesRead the Press Release
SAN FRANCISCO – Three San Francisco Mission District (SFMD) Norteño gang members who murdered and attempted to murder four victims in San Francisco between January 2018 and July 2019 were sentenced today to prison terms ranging from 21 to 33 years following their convictions on racketeering conspiracy charges, announced First Assistant United States Attorney Patrick D. Robbins and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. The sentences were handed down by the Hon. William H. Orrick, Senior United States District Judge.
Fernando Madrigal, AKA “Nando,” 25; Alvaro Reina Cordero, AKA “G-Boy,” 26; and Oscar Guadron Diaz, AKA “Cutty,” 24, all of San Francisco, each pleaded guilty in February 2023 to one count of racketeering conspiracy, in violation of 18 U.S.C. § 1962(d), in connection with their roles in the murders and attempted murder of four victims, including a 15-year-old innocent bystander who was mistaken for a rival gang member.
In his plea agreement, Madrigal—who was sentenced today to 33 years in prison—admitted that, on July 12, 2018, he lured a victim to a parking lot near Candlestick Park in San Francisco on the pretense of purchasing marijuana from the victim. In fact, however, Madrigal admitted that he planned to rob the victim and that he and an accomplice were both armed when they arrived at the parking lot near Candlestick Park, where they met the victim around 6:20 p.m. Madrigal admitted he shot and killed the victim, disposed of the victim’s cell phone on or near the San Mateo Bridge, and dumped the victim’s body in the Oakland Hills, where it was found more than a year later.
Madrigal also admitted that, on July 8, 2019, he was in the Mission District in San Francisco when he used an AR-style firearm to shoot and kill a 15-year-old boy whom Madrigal mistakenly believed was a member of a rival gang. Madrigal admitted he committed these two murders in part to earn respect from other SFMD Norteños and to enhance his status in the gang. Finally, Madrigal admitted that he regularly traveled between California and Iowa to engage in drug trafficking; that he possessed two firearms, dozens of bullets, and nearly $7,000 in cash when he was arrested on August 14, 2020; and that he was on probation following a prior carjacking conviction when he committed the murders in July 2018 and July 2019.
In their plea agreements, Cordero and Guadron Diaz—who were sentenced today to 26 and 21 years in prison, respectively—admitted that, on January 23, 2018, they were driving around the Holly Park neighborhood of San Francisco when they saw a suspected rival Sureño gang member standing with a female companion at a bus stop near the intersection of Leese Street and Richland Avenue. They also admitted that, upon confirming the man’s identity in another drive-by, Guadron Diaz (who was driving) parked about two blocks away from the bus stop, where he idled while Cordero—who was, and who Guadron Diaz knew to be, armed with a loaded gun—put on a black and white skeleton mask and got out of the car.
Cordero admitted he then ran to the bus stop, approached the man and his female companion, and fired approximately nine shots, hitting the man (who died) in the body and the woman (who survived) in the face. Cordero then ran back to the parked car and he and Guadron Diaz—who admitted in his plea agreement that he knew Cordero planned to shoot the man and that he knowingly assisted Cordero commit the shooting—drove away from the scene. Guadron Diaz also admitted that law enforcement officers found ammunition consistent with the type used in the murder and attempted murder, as well as a fully automatic machine gun, in a search of his home in San Francisco two days after the shooting. Finally, both Cordero and Guadron Diaz admitted they committed and participated in the murder and attempted murder to earn respect and prestige among other SFMD Norteño gang members.
“Norteño criminal street gangs have terrorized San Francisco’s Mission District for years through a relentless campaign of shootings, robberies, gun trafficking, drug dealing, and extortion,” said First Assistant United States Attorney Patrick D. Robbins. “Today’s sentences send a clear message that gang members who inflict wanton violence and harm our community will be arrested, prosecuted federally, and sentenced to lengthy prison terms.”
“The brazen acts of violence committed by these men deprived local residents of their sense of security,” said FBI San Francisco Special Agent in Charge Robert K. Tripp. “The sentences handed down today cannot undo the harm inflicted on the victims or their families, but the defendants have been held accountable. The FBI and its partners will continue to work to eradicate violent gangs from our streets.”
In addition to the custodial sentences, Judge Orrick ordered all three defendants to spend five years on supervised release, beginning after their prison terms are completed.
Assistant U.S. Attorney Leif Dautch is prosecuting the case with the assistance of Paralegal Specialist Kevin Costello. The prosecution is the result of a multi-year investigation by the FBI, with assistance from the San Francisco Police Department’s Community Violence Reduction Team and Homicide Detail.
The United States Settles with Borough of Bellefonte to Make Public Meetings Accessible to Those with Hearing DisabilitiesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that the Borough of Bellefonte has agreed under Title II of the Americans with Disabilities Act (ADA) to ensure that proper auxiliary aides and services, including qualified sign-language interpreters are made available to those with hearing disabilities at all its public meetings. When the Borough records or broadcasts its meetings, the Borough will ensure that those meetings will have an “in frame’ American Sign Language interpreter. The Borough will also identify an ADA Coordinator, provide notice to those with disabilities on how to contact the ADA Coordinator, and establish an ADA grievance procedure.
According to United States Attorney Gerard M. Karam, the United States Attorney’s Office received a complaint from an individual with a hearing disability that the Borough did not provide her with an auxiliary device during in-person council meeting or have an interpreter for the taped broadcast. The Borough also did not have a process by which the disabled could request accommodations or file complaints of inaccessibility, nor did it have an ADA coordinator. After an investigation, with the Borough’s cooperation, the United States Attorney’s Office found that the complaint had merit.
“The right to participate, attend, or watch public local government meetings is a fundamental right in a democracy, and those with hearing disabilities cannot be excluded” said U.S. Attorney Karam. “This agreement ensures that individuals with disabilities in the Borough will now have an ADA Coordinator who can answer questions, accept accommodations requests like auxiliary aides for council meetings, and receive disability complaints.”
This investigation was handled by Assistant United States Attorney Michael J. Butler, the Civil Rights Coordinator. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/. Anyone in the Middle District of Pennsylvania may also report civil rights violations to the Civil Rights Coordinator of the U.S. Attorney’s Office for the Middle District of Pennsylvania by calling 717-614-4911 or emailing [email protected].
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Texas Mother and Son Sentenced for Sex Trafficking of a MinorRead the Press Release
A Mexican woman who legally resided in Mission, Texas, and her son, who is a U.S. citizen, were sentenced today for sex trafficking a young girl.
Rita Martinez, 65, was sentenced to 360 months in prison, ordered to pay over $840,000 in restitution and surrender her house and bar to the government. Genaro Fuentes, 41, Martinez’s son and co-defendant, was sentenced to 72 months in prison and ordered to pay $20,000 in restitution.
“The Justice Department is committed to identifying and prosecuting parasitic commercial sex traffickers, like the defendants here, who use the promise of America to lure vulnerable women and children into the United States and then coerce them into commercial sex acts,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will focus the full force of our legal authority on preventing and punishing human trafficking and seeking restitution for the victims of these heinous crimes.”
“Martinez’s decades-long business model was simple yet evil: travel to Mexico, entice poor, young girls across the border with false promises of a better life and then force those girls to engage in sexual acts with her bar’s male patrons,” said U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas. “Martinez treated the victims like chattel, while physically and psychologically imprisoning them. Today’s sentence ensures the only person left imprisoned, for decades to come, is Martinez and sends a strong message to human traffickers moonlighting as bar owners: you’re next.”
“Today’s sentence will ensure that people like Rita Martinez are no longer able to victimize anyone in vulnerable or desperate circumstances,” said Acting Special Agent in Charge Doug Olson for the FBI San Antonio Division. “We want to thank our partners in the Texas Alcoholic Beverage Commission (TABC) for their continued assistance in bringing predators like this to justice.”
According to court documents, Martinez operated a bar known at various times as Perez Lounge, Rita’s Lounge and Rita’s Sports Bar. From the spring of 2005 to the fall of 2006, the 16-year-old young girl lived with Martinez and worked at the bar. Martinez arranged for the young girl to engage in commercial sex acts with men who were customers at the bar. Martinez also accepted money from these clients before allowing them to take the young girl out of the bar to engage in commercial sex. Martinez applied the money she received from commercial sex buyers to the smuggling debt that she imposed upon the minor victim to transport her from Mexico into the United States.
The FBI San Antonio Field Office, McAllen Resident Agency investigated the case, with the assistance of the Texas Alcoholic Beverage Commission.
Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit and Assistant U.S. Attorneys Laura Garcia and Sherri Zack for the Southern District of Texas prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
St. Petersburg Man Charged with Making Threats of A Mass ShootingRead the Press Release
Tampa, Florida –United States Attorney Roger B. Handberg announces the unsealing of a criminal complaint charging Robert Trout III (19, St. Petersburg) with knowingly transmitting in interstate commerce a true threat. If convicted, Trout faces a maximum penalty of five years in federal prison.
According to the complaint, Trout posted a video on Instagram making threats to go to New York City and “cause havoc on the subway” by shooting “anybody” that Trout sees. Trout further threatened that this shooting would occur on the evening of Thanksgiving, November 23, 2023, and stated “if you’re from New York City, do not take the train on Thursday evening.” While making these threats, Trout displayed multiple firearms, including two semi-automatic firearms with extended clips containing a total of 60 bullets while stating “that’s sixty shots - that’s sixty people dead.” Several recent postings on Trout’s Instagram account in conjunction with witness statements allowed law enforcement to identify Trout as the person responsible for making the threats.
Trout made his initial appearance in federal court, in Tampa, Florida on December 7, 2023, and was ordered detained pending further proceedings.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Pinellas Park Police Department and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Brooke Padgett.
Springfield, Illinois, Man Sentenced to Nine Years in Prison for Firearm Possession and Covid-19 FraudRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Demetrius S. Washington, 27, was sentenced on December 6, 2023, to a total of 108 months imprisonment: 96 months for possession of a weapon by a felon and a consecutive 12 months for wire fraud. In addition to the sentence of imprisonment, Washington was ordered to serve three years of supervised release and pay $10,843.84 in restitution to the Small Business Administration.
At the sentencing hearing before U.S. District Judge Colleen R. Lawless, the government presented evidence that Washington, a convicted felon, was found in possession of a loaded Glock firearm with a 50 round drum magazine when he was arrested in connection with an unrelated case in March 2022. The government presented evidence that the recovered Glock firearm was test-fired and shell casings were entered into the National Integrated Ballistic Information Network (NIBIN). The NIBIN system reported a connection between the recovered firearm and an October 2021 shooting in Springfield. That connection was confirmed by the ATF’s Forensic Science Laboratory. Additional evidence showed that during the October 2021 crime, Washington gave the firearm to a juvenile who, moments later, fired multiple shots at an occupied sedan in the parking lot of a gas station. No one was injured in the shooting. Further evidence indicated Washington was actively trying to obtain additional firearms during the six months between the shooting and his arrest on unrelated state charges. Additional evidence showed that Washington fraudulently obtained over $10,000 from the Small Business Administration Economic Injury Disaster Loan program.
During the hearing, Judge Lawless noted that, as a result of Washington’s conduct, innocent citizens of Springfield had to flee for safety. Judge Lawless further remarked that the sentence was necessary to protect the public and deter others from similar crimes.
Washington remains in the custody of the United States Marshal Service, where he has been since his federal arrest on April 26, 2022. The defendant pleaded guilty to possession of a weapon by a felon and three counts of wire fraud on April 14, 2023, before United States Magistrate Judge Karen L. McNaught.
The statutory penalties for possession of a firearm by a prohibited person at the time of Washington’s offense were up to 10 years’ imprisonment, up to a $250,000 fine, and up to three years of supervised release. The statutory penalties for wire fraud are up to 20 years’ imprisonment, up to a $250,000 fine, and up to three years of supervised release.
“The ready availability of guns has caused an unacceptable spike of violence in our communities,” said U.S. Attorney Gregory K. Harris. “For the protection of our community, we warn individuals contributing to such violence that federal, state, and local government agencies are working together to hold you accountable. We also will continue to prosecute COVID fraudsters and work to recover pandemic relief funds that were fraudulently obtained.”
“This case illustrates how Crime Gun Intelligence such as NIBIN helps law enforcement prioritize offenders who illegally possess firearms that were used in shootings,” said ATF Special Agent in Charge Christopher Amon of the Chicago Field Division. “I commend the Central District of Illinois United States Attorney for prosecuting these felon in possession cases, holding accountable those who create such havoc in our community.”
“The Springfield Police Department is committed to preventing gun violence and holding those accountable who choose to break the law,” said Springfield Police Department Deputy Chief of Criminal Investigations Sara Pickford. “This successful prosecution is another example of the flourishing partnership that has developed between the Springfield Police Department, ATF, and the United States Attorney’s Office.”
“The U.S. Secret Service and our law enforcement partners remain committed to identifying, investigating, and pursuing those who attempt to enrich themselves through fraudulent means,” said Stephen S. Webster, United States Secret Service Resident Agent in Charge, Springfield Resident Office. “We are proud of our partnerships with the federal, state, and local agencies who work collectively to hold these individuals accountable for their actions.”
The Springfield Police Department investigated the firearms case with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case against Washington is part of a committed effort to combat gun violence in Sangamon County, Illinois, by law enforcement including the Springfield Police Department, Sangamon County State’s Attorney’s Office, the ATF, and the U.S. Attorney’s Office. The United States Secret Service investigated the wire fraud case, with assistance from the Springfield Police Department. Assistant U.S. Attorney Sarah E. Seberger represented the government in the prosecution.
The firearms case against Washington 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.
COVID-19 disaster relief benefits are intended to help people and businesses suffering as a result of the pandemic. If members of the public suspect that anyone fraudulently obtained or misused benefits, they should contact the National Center for Disaster Fraud (NDCF) Hotline at 1-866-720-5721 or submit the NCDF Web Complaint Form. The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division dedicated to improving the detection, prevention, investigation, and prosecution of criminal conduct related to natural and man-made disasters and other emergencies, such as the coronavirus (COVID-19). Hotline staff will obtain information regarding complaints, which will then be reviewed by law enforcement officials. More information is available at https://www.justice.gov/disaster-fraud.
Smith County man sentenced for using stolen valor to defraud investorsRead the Press Release
TYLER, Texas – A Tyler man has been sentenced to more than 11 years in federal prison for multiple violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Derek Robert Hamm, 39, pleaded guilty to wire fraud, money laundering, violating the Stolen Valor Act, using a fraudulent military discharge certificate, and being a felon in possession of firearms and ammunition. Hamm was sentenced to 135 months in federal prison on Dec. 7, 2023, by U.S. District Judge J. Campbell Barker. Hamm’s sentence was the largest ever imposed in relation to a fraud scheme involving the Stolen Valor Act.
The Stolen Valor Act of 2013 makes it illegal to fraudulently wear medals, embellish rank, or make false claims of military service to obtain money, employment, property, or some other tangible benefit. As part of his sentence Hamm agreed to pay restitution of at least $2.3 million and forfeiture of the proceeds of his criminal conduct, including jewelry, automobiles, and cash proceeds in the amount of $1,675,000.
According to court documents, Hamm invented a persona of being a wealthy and successful war hero. Hamm held himself out to be a former member of the Army Special Forces who had served multiple tours of duty in Iraq, Afghanistan, and other countries. He claimed to have been awarded a Purple Heart, Bronze Star, Silver Star, and Distinguished Service Cross for his service. Hamm also represented that he was related to Harold Hamm, the billionaire oilman in Oklahoma, which he claimed gave him access to financial resources and oil industry expertise. Through this larger-than-life persona, Hamm created an extensive network of friends who introduced him to potential investors. Those investors believed Hamm’s claims and invested in what they expected to be worthwhile ventures spearheaded by a trustworthy and capable entrepreneur.
In reality, Derek Hamm was nothing of the sort. Hamm was not a decorated war hero. He was no oil industry tycoon. He was not related to Harold Hamm. He did not spend investors’ funds on the latest oil industry technology or new oil wells. Within hours of receiving investors’ funds, Hamm spent their money on himself and his family, including expensive jewelry, vehicles, and vacations to expensive resorts on private charter planes. All the while, Hamm represented to investors that he had invested their money in successful oil industry projects. He continued to pump investors to keep sending him money even as their investments failed to produce any returns.
“As the son of a veteran, I have a deep appreciation for the importance of military service and recognizing the valor of our servicemen and women,” said U.S. Attorney Damien M. Diggs. “The Stolen Valor Act protects and honors veterans and the sacrifices they’ve made to our country. When people make false claims of military heroism, they diminish the true acts of bravery and heroism that Americans celebrate and tribute. Stolen valor is an insult to all those who stood in harm’s way and earned their decorations. By using stolen valor to steal from people, Hamm preyed on the victims’ love of this country and their reverence for American heroes who earned such real military awards through their sacrifices to this country.”
“The defendant invented a successful and noble persona to disguise his failed business and dishonest intentions in order to steal millions of dollars from unsuspecting investors. In addition to pretending to be an American hero, he was found to be in possession of dozens of firearms which was prohibited due to his criminal background. Mr. Hamm could not stop breaking the law,” said Dallas FBI Special Agent in Charge Chad Yarbrough. “I am proud that we can work with our partners at the U.S. Attorney’s Office to uphold the Stolen Valor Act and ensure that courageous attribution stays with our nation’s bravest defenders.”
Hamm also pleaded guilty to being a prohibited person in possession of firearms and ammunition. Hamm was convicted in Smith County in 2020 for theft of property, a state felony. As a felon, Hamm is prohibited by federal law from owning or possessing firearms or ammunition. According to court documents, Hamm was in possession of dozens of firearms, including several rifles with high-capacity magazines, and ammunition for those firearms. Because of his arsenal of weapons and his trained-warrior persona, Hamm scared any investors from pressing him on his failed investments.
Through its investigation, the government learned that this was not the first time that Hamm had used stolen valor for his own personal benefit. In 2020, Hamm presented falsified military records to a Smith County, Texas District Court, which he successfully leveraged into a more lenient sentence. Hamm had used those same false documents to obtain Bronze Star license plates from the Texas Department of Motor Vehicles.
After Hamm was indicted in January 2022, more than $350,000 worth of assets, including cash, vehicles, and jewelry, were seized pursuant to the Justice Department’s asset forfeiture procedures. Those assets were sold prior to sentencing and were forfeited to the government. Because Hamm did not have enough other assets to pay anything towards the $2.3 million restitution judgment, the U.S. Attorney requested for the Justice Department’s Money Laundering and Asset Recovery Section (MLARS) to approve application of the forfeited assets to the restitution debt so that the forfeited funds could be paid to the victims. MLARS expedited the U.S. Attorney’s request and approved it in a matter of days.
If you or someone you know has been a victim of Derek Robert Hamm, please contact the Federal Bureau of Investigation at 903-594-3503. Derek Robert Hamm is also known as D. Wayne Hamm II, Wayne Hamm, D. Wayne H., DW Hamm, and RD Hamm.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.
This case was investigated by the Federal Bureau of Investigation’s Tyler Field Office, with assistance from the Tyler Police Department, the Smith County Sheriff’s Office, the Phoenix Arizona Police Department, Smith County Adult Probation, the Texas Railroad Commission-Enforcement Division, Department of Veteran’s Affairs-Office of Inspector General, Texas Comptroller of Public Accounts-Criminal Investigation Division, and the United States Army Special Operations Command. This case was prosecuted by Assistant U.S. Attorneys Robert Austin Wells and Ryan Locker.
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Seven More Defendants Charged in Prosecution of Central Indiana Dog Fighting and Drug Trafficking ConspiraciesRead the Press Release
INDIANAPOLIS- In September of this year, 21 individuals were charged in a federal indictment alleging trafficking of fentanyl, methamphetamine, and cocaine; money laundering; illegally possessing firearms; and dog fighting.
On December 6th, 2023, execution of additional search warrants in Indianapolis and Anderson resulted in seven additional arrests related to the September indictment. Federal agents also seized 12 firearms; significant quantities of controlled substances; over $42,075 in cash; dog fighting paraphernalia; and approximately 75 dogs. The following Indianapolis/Anderson men were each charged with Conspiracy to engage in an Animal Fighting Venture:
- Ryan Hicks, 37
- Willie Lee, 47
- Marven Carswell, 71
- Ernest Young, 49
- Brent Hutchinson, 43
- Robert Hamer, 41
- Daymond Mason, 49
If convicted, each defendant charged with conspiracy to engage in an animal fighting venture faces up to 5 years in federal prison. The following investigative agencies collaborated to make this investigation and the recent warrant executions possible:
- Federal Bureau of Investigation- Indianapolis
- U.S. Department of Agriculture-Office of Inspector General
- Bureau of Alcohol, Tobacco, Firearms and Explosives
- Drug Enforcement Administration
- Internal Revenue Service- Criminal Investigation
- Indiana Gaming Commission
- Indianapolis Metropolitan Police Department
Zachary A. Myers, United States Attorney for the Southern District of Indiana, thanked Assistant United States Attorneys Michelle P. Brady and Adam J. Eakman, who are prosecuting this case.
An indictment or criminal complaint are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Schenectady Man Charged in Connection with Shots Fired Outside of Temple IsraelRead the Press Release
ALBANY, NEW YORK – Mufid Fawaz Alkhader, age 28, of Schenectady, New York, appeared in federal court this morning on a charge of unlawfully possessing a firearm. Alkhader was arrested yesterday afternoon after he twice fired a shotgun into the air outside of Temple Israel, a synagogue in Albany.
The announcement was made by United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Albany Police Chief Eric Hawkins.
According to the criminal complaint, at approximately 2 p.m. on December 7, 2023, Alkhader stood outside of Temple Israel while possessing a Kel-Tec KS7 12-gauge pump-action shotgun. Alkhader twice fired the shotgun into the air. Albany Police Officers responded to the scene and arrested Alkhader. As an unlawful user of a controlled substance (marijuana), Alkhader was prohibited under federal law from possessing the shotgun. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Alkhader appeared today before United States Magistrate Judge Christian F. Hummel, who ordered Alkhader detained pending trial after Alkhader waived his right to a detention hearing.
If convicted of the charge alleged in the complaint, Alkhader faces up to 15 years in prison, up to 3 years of post-imprisonment supervised release, and a maximum fine of $250,000. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the ATF, the FBI’s Joint Terrorism Task Force, and the Albany Police Department. Assistant U.S. Attorneys Rick Belliss and Alexander Wentworth-Ping are prosecuting this case.