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11 January 2024
Justice Department Observes National Human Trafficking Prevention MonthRead the Press Release
WASHINGTON – The Justice Department today commemorates National Human Trafficking Prevention Month and renews its commitment to prosecuting human traffickers, protecting victims, empowering survivors, and preventing the proliferation of these abhorrent crimes.
In recognition of Human Trafficking Prevention Month, the Justice Department reaffirms that vindicating the rights of human trafficking victims and other vulnerable persons ranks among its highest priorities. The Department remains resolute in its commitment to bringing the full force of the Department to the fight against human trafficking.
“The Department launched our National Strategy to Combat Human Trafficking to bring the full force of the Department to the fight against human trafficking,” said Attorney General Merrick B. Garland. “Since then, we’ve taken sustained steps forward to make our anti-trafficking efforts stronger than ever. We have brought human traffickers to justice, dismantled trafficking enterprises, and empowered survivors to rebuild their lives. I am proud of the progress the Department has made. But there is still much more work left to do.”
“Human trafficking is a vicious crime, one where the traffickers reap the profits and the victims bear the scars,” said Deputy Attorney General Lisa O. Monaco. “While we recognize Human Trafficking Prevention Month as an annual reminder of the importance of this fight, the women and men of the Justice Department are working 365 days a year to dismantle trafficking organizations, bring traffickers to justice, and empower survivors.”
“Human trafficking deprives exceptionally vulnerable people of their rights to freedom, dignity, and equal protection of the law. Too often, human trafficking crimes go undetected because victims are afraid to come forward, so they remain in the shadows, fearful of defying their traffickers’ demands,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division remains relentless in our pursuit of justice for victims and survivors of these intolerable offenses. We must continue to build trust in vulnerable communities so those who are endangered, exploited, compelled, or coerced can safely come forward and share their personal testimonies. We will continue to honor and empower survivors and amplify their voices as we work to detect hidden trafficking crimes, hold human traffickers accountable, vindicate the rights of vulnerable victims, and secure justice for survivors.”
The Justice Department’s National Strategy to Combat Human Trafficking sets forth a comprehensive, multi-year strategy to enhance Department-wide efforts to combat all forms of human trafficking. Actions in 2023 to implement this National Strategy and to advance all aspects of the Department’s broad-based anti-trafficking mission include:
- Designation by the Attorney General of a National Human Trafficking Coordinator and a National Child Exploitation Coordinator to coordinate Department-wide and interagency implementation of strategies for countering human trafficking and child exploitation threats, respectively.
- Establishment of a Human Trafficking Working Group of U.S. Attorneys through the Attorney General's Advisory Committee of U.S. Attorneys and its Civil Rights Subcommittee.
- Formation of a specialized Human Trafficking Program Management Team within the FBI’s Crimes Against Children and Human Trafficking Unit to develop and disseminate expertise and training on victim-centered, trauma-informed anti-trafficking strategies to FBI Field Offices nationwide and enhance coordination of human trafficking investigations, prosecutions, and victim services.
- Implementation of the revised Attorney General Guidelines for Victim and Witness Assistance, including delivery of survivor-informed training to all relevant Department personnel on enhanced protections for vulnerable victims and specialized issues impacting human trafficking victims.
- Training of all Department Immigration Judges on detecting human trafficking victims and indicators in immigration-related proceedings through the Executive Office for Immigration Review.
- Expanded efforts to combat forced child labor, including:
- Leadership of the interagency Forced Labor Initiative Steering Group in conducting strategic assessments of forced child labor threats and guiding criminal forced labor investigations and prosecutions in relevant jurisdictions;
- Participation in the interagency Child Labor Exploitation Task Force and issuance of guidance to all Office for Victims of Crime grantees, in collaboration with the Department of Labor, on identifying, assisting, and referring victims of forced child labor and child labor exploitation; and
- Introduction of resolutions on combating forced child labor to the United Nations Convention on Transnational Organized Crime Working Group on Trafficking in Persons
- Sustained efforts to combat child sex trafficking, including through:
- Release of the Department’s 2023 National Strategy for Child Exploitation Prevention and Interdiction;
- Operations conducted by the FBI and federal, state, local, and Tribal partners over a two-week period that identified and located 59 missing children and 59 victims of potential federal or state sex trafficking, sexual exploitation, or related offenses, as well as 126 suspects and 141 potential adult victims of such offenses; and
- Issuance of an Office on Violence Against Women Training and Technical Assistance grant to implement the Building Capacity to Serve Youth Survivors of Sex Trafficking Project; youth sex trafficking grantees and service providers; deliver youth-centered, survivor-informed expertise; and enhance outreach to traditionally underserved youth populations including BIPOC, LGBTQI+, migrant youth, and youth with disabilities.
- Enhanced responses to human trafficking impacting Tribal communities through training, technical assistance, and coordination among Tribal, territorial, federal, state, local, and non-governmental partners, including through the Tribal Consultation on Violence Against American Indian and Alaska Native Women; Not Invisible Act Commission; National Indian Country Training Initiative; and Strengthening Sovereign Responses to Sex Trafficking in Indian Country and Alaska program.
- Issuance of over $95 million in grant funding through the Department’s Office for Victims of Crime, as the largest federal funder of services for human trafficking victims and survivors, including grant funding for direct services and legal services and training and technical assistance to enhance grantees’ capacity to provide services to labor trafficking victims.
- National Institute of Justice-funded research and evaluation studies to inform evidence-based best practices involving multidisciplinary task forces, victim services, and responses to emerging forced labor and forced criminality threats.
- Continued collaboration among U.S. Attorneys’ Offices, the Civil Rights Division’s Human Trafficking Prosecution Unit, and the Criminal Division’s Child Exploitation and Obscenity and Money Laundering and Asset Recovery Sections to secure convictions, substantial sentences, and significant restitution awards in a wide range of human trafficking prosecutions nationwide.
Anyone who has information about a potential human trafficking situation or a person who may be experiencing human trafficking should contact the National Human Trafficking Hotline at 1-888-373-7888 or text 233733.
Information on the Justice Department’s work to combat human trafficking can be found at www.justice.gov/humantrafficking.
human_trafficking_prevention_month_recent_accomplishments.pdfJustice Department Files Civil Rights Lawsuit Against Oklahoma Landlord for Sexually Harassing TenantsRead the Press Release
OKLAHOMA CITY – The Justice Department filed a lawsuit today against Shevis “Don” Petties of Moore, Oklahoma, for sexually harassing female tenants in violation of the Fair Housing Act (FHA). Petties has owned, operated or managed residential rental properties in Oklahoma City, Forest Park, and Moore, Oklahoma, since at least 2016.
“These women lived in fear every day that their landlord would enter their bedroom unannounced, film them in the bathroom, make lewd comments about their bodies and appearance and grope them,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to enforcing federal civil rights laws to ensure landlords are held accountable for unlawful and predatory behavior.”
“Tenants have the right under federal fair housing laws to be free from unwanted sexual harassment and intimidation by their landlord in order to obtain or maintain housing,” said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. “Today’s civil complaint represents a significant step in the Justice Department’s efforts to pursue justice and compensation for vulnerable female victims who have been subjected to civil rights violations.”
The lawsuit alleges that Petties subjected female tenants to unwelcome sexual contact and comments about their physical appearances; physically assaulted tenants; entered tenants’ bedrooms without consent; photographed and filmed female tenants in their bedrooms and bathrooms without their knowledge and permission and demanded that female tenants engage in sexual acts with him under threat of losing their housing. The lawsuit also names the current owners of the rental properties, TMH Group Inc, The Monarch House LLC, also known as Monarch House LLC, and Exceptional Service Company LLC as defendants.
The lawsuit seeks money damages to compensate women harmed by the alleged harassment, a fine for the United States, and a court order prohibiting future acts of discrimination and harassment.
The FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. It also prohibits sexual harassment, a form of sex discrimination. Individuals who believe that they may have been victims of sexual harassment at rental properties owned or operated by Petties, or who have other information that may be relevant to this case, may contact the Justice Department by calling its Sexual Harassment in Housing Initiative at 1-844-380-6178, or by calling the U.S. Attorney’s Office at 405-553-8700.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance works, loan officers and other people who have control over housing. Since launching the initiative in October 2017, the department has filed 38 lawsuits alleging sexual harassment in housing and recovered nearly $11 million for victims of such harassment. The Civil Rights Division is committed to protecting people from sexual misconduct.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals may report discrimination in housing that violates the Fair Housing Act by calling the Justice Department at 1-833-591-0291, or submitting a report online.
Justice Department Files Civil Rights Lawsuit Against Oklahoma Landlord for Sexually Harassing TenantsRead the Press Release
The Justice Department filed a lawsuit today against Shevis “Don” Petties of Moore, Oklahoma, for sexually harassing female tenants in violation of the Fair Housing Act (FHA). Petties has owned, operated or managed residential rental properties in Oklahoma City, Forest Park, and Moore, Oklahoma, since at least 2016.
“These women lived in fear every day that their landlord would enter their bedroom unannounced, film them in the bathroom, make lewd comments about their bodies and appearance and grope them,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to enforcing federal civil rights laws to ensure landlords are held accountable for unlawful and predatory behavior.”
“Tenants have the right under federal fair housing laws to be free from unwanted sexual harassment and intimidation by their landlord in order to obtain or maintain housing,” said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. “Today’s civil complaint represents a significant step in the Justice Department’s efforts to pursue justice and compensation for vulnerable female victims who have been subjected to civil rights violations.”
The lawsuit alleges that Petties subjected female tenants to unwelcome sexual contact and comments about their physical appearances; physically assaulted tenants; entered tenants’ bedrooms without consent; photographed and filmed female tenants in their bedrooms and bathrooms without their knowledge and permission and demanded that female tenants engage in sexual acts with him under threat of losing their housing. The lawsuit also names the current owners of the rental properties, TMH Group Inc, The Monarch House LLC, also known as Monarch House LLC, and Exceptional Service Company LLC as defendants.
The lawsuit seeks money damages to compensate women harmed by the alleged harassment, a fine for the United States and a court order prohibiting future acts of discrimination and harassment.
The FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. It also prohibits sexual harassment, a form of sex discrimination. Individuals who believe that they may have been victims of sexual harassment at rental properties owned or operated by Petties, or who have other information that may be relevant to this case, may contact the Justice Department by calling its Sexual Harassment in Housing Initiative at 1-844-380-6178, or by calling the U.S. Attorney’s Office at 405-553-8700.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance works, loan officers and other people who have control over housing. Since launching the initiative in October 2017, the department has filed 38 lawsuits alleging sexual harassment in housing and recovered nearly $11 million for victims of such harassment. The Civil Rights Division is committed to protecting people from sexual misconduct.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals may report discrimination in housing that violates the Fair Housing Act by calling the Justice Department at 1-833-591-0291, or submitting a report online.
View the complaint here.
Jury Convicts Springfield Man of Drug Trafficking, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man has been convicted in federal court of his role in a conspiracy to distribute valeryl fentanyl, which is an analogue of fentanyl, and illegally possessing several firearms.
Darrell L. Smith, 34, was found guilty at trial of one count of conspiracy to distribute a fentanyl analogue known as valeryl fentanyl, one count of possessing a fentanyl analogue with the intent to distribute, and one count of possessing firearms in furtherance of a drug-trafficking crime.
Co-defendant Eugene C. Saunders, 50, of Springfield, pleaded guilty to his role in the drug-trafficking conspiracy and was sentenced on Aug. 1, 2023, to three years in federal prison without parole.
In August 2019, law enforcement learned that Smith and Saunders were selling “heroin” (later determined to be valeryl fentanyl) together in Springfield and that Saunders stored his “heroin” at Smith’s residence. Smith and Saunders often packaged “heroin” together at Smith’s residence.
On Aug. 15, 2019, law enforcement officers executed a search warrant at Smith’s residence. Officers seized a large plastic bag that contained valeryl fentanyl and 30 individually packaged sandwich bags of valeryl fentanyl.
In plain view on a table in the living room near the bags of valeryl fentanyl, officers found a loaded magazine for a 9mm pistol. Officers found body armor and seven loaded firearms – including a Smith & Wesson .22-caliber semi-automatic pistol, a Glock 9mm semi-automatic pistol, a Taurus 9mm semi-automatic pistol, a North American Arms .22-caliber revolver, a Mossberg 20-gauge pump shotgun, a Smith & Wesson .45-caliber semi-automatic pistol, and a Winchester 12-gauge shotgun – in an upstairs bedroom. Three of these firearms were located in plain view on a dresser and two shotguns were leaned up against a wall. An eighth firearm was found in a secondary bedroom, where Smith had been located when the warrant was executed. This firearm, a Smith & Wesson 9mm semi-automatic pistol, was located underneath a couch cushion on a child’s bed.
Following the presentation of evidence, the jury in the U.S. District Court in Springfield deliberated for less than four hours on Wednesday, Jan. 10, before returning guilty verdicts to U.S. District Judge M. Douglas Harpool, ending a trial that began Monday, Jan. 8.
Under federal statutes, Smith is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Jessica R. Eatmon and John D. Hatcher. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Indiana Woman Sentenced to Federal Prison for Victimizing 96-Year-Old Rhode Islander Through an Online Romance ScamRead the Press Release
PROVIDENCE, RI – An Indiana woman who perpetrated an online romance scam that defrauded a 96-year-old Rhode Island widower out of nearly $80,000 has been sentenced to three years in federal prison, announced United States Attorney Zachary A. Cunha.
Brittany Rakia Shawnai Lasley, 34, of Anderson, IN, previously admitted to a federal judge that she created a social media account containing fake profile information on the dating site “Plenty of Fish.” When contacted by the Rhode Island widower, she promptly began a campaign to persuade the victim to provide her with money, credit cards, gift cards, and his personal identifying information. She led the victim to believe that providing her with these items would facilitate meetings between the two and foster a romantic relationship. During the scheme, Lasley fraudulently obtained access to the victim’s checking account and credit cards and made numerous unauthorized purchases.
During Wednesday’s sentencing hearing, a federal prosecutor quoted from a victim impact statement submitted to the court by the 96-year-old victim, who wrote that he “ was in shock and disbelief. It took me a few days to comprehend what had happened. I was embarrassed, horrified, and distressed about my financial situation, fearing that I could lose the house I had lived in since 1970.
“This defendant preyed on a vulnerable, elderly Rhode Islander, dangling the promise of love and companionship in an attempt to help herself to her victim’s hard-earned savings,” remarked U.S. Attorney Cunha. “With this sentence, it is Ms. Lasley who will deservedly pay the price for her appalling conduct. I commend the exceptional work of this team of law enforcement professionals- state, federal, and local, for bringing this defendant to justice.”
“There is no worse predator than one who preys on the vulnerable. In this case, Ms. Lasley targeted lonely seniors to satisfy her own greed. The U.S. Postal Inspection Service is proud to stand with our federal, state, and local law enforcement partners to protect the vulnerable members of our community and to bring to justice those who would victimize them.” Inspector in Charge Ketty D. Larco-Ward, United States Postal Inspection Service, Boston Division.
Lasley pleaded guilty on September 6, 2023, to a charge of wire fraud. She was sentenced on Wednesday by U.S. District Court Judge William E. Smith to 36 months of incarceration to be followed by three years of federal supervised release, the first six months to be served in a residential reentry facility.
The case was prosecuted by Assistant United States Attorneys Paul F. Daly, Jr., and Peter I Roklan.
The matter was investigated by the United States Postal Inspection Service.
United States Attorney Cunha thanks the Coventry, RI, Police Department; Anderson, IN, Police Department; Indiana State Police; United States Marshals Service; and the U.S. Postal Service Office of Inspector General for their assistance in the investigation of this matter.
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Human Trafficking Awareness MonthRead the Press Release
HAMMOND – Every year since 2010, the President of the United States has proclaimed January “National Human Trafficking Prevention Month” and reaffirmed the United States Government’s commitment to combatting human trafficking in all its forms.
The United States Attorney’s Office for the Northern District of Indiana joins in this commitment and will continue to prioritize combatting forced labor, domestic servitude, and sex trafficking of children and adults throughout the District.
“A crucial and necessary step in combatting Human Trafficking is recognizing potential trafficking situations and taking the further step of reporting these activities to law enforcement,” said United States Attorney Clifford D. Johnson. “My office is committed to working with its state and local partners both in law enforcement and through non-governmental organizations, advocacy groups, trauma-informed service providers and community leaders to support victims, prevent trafficking where possible, and prosecute those who are engaging in human trafficking. We are most effective in addressing these situations when the community joins with us to recognize and report ‘red flags’ that may indicate a trafficking situation. We encourage the public to join us in rooting out these crimes, not only during this month of recognition, but each and every day.”
Below are a few questions that can help identify whether a potential sex trafficking or labor trafficking situation is occurring.
- Has the victim been forced or coerced into performing commercial sex acts?
- Is the victim under the age of 18 and engaged in commercial sex?
- Is the victim free to contact friends or family without being coached or monitored?
- Is someone severely limiting the victim’s freedom of movement?
- Has the victim or their family been threatened with harm if they attempt to leave?
- Has the victim been harmed, deprived of food, water, sleep, medical care, or other life necessities?
- Is the victim in possession of their own travel/identification documents?
- Are the victim’s wages being unlawfully garnished to pay off a debt or fee?
- Is the victim allowed to socialize or attend religious services?
- Has the victim been threatened with deportation or criminal charges?
If a situation arises where the answer to one or more of the above questions is “Yes”, the U.S. Attorney’s Office asks that you to join in the effort to combat human trafficking and report the information.
If you are a victim of human trafficking, suspect you know one, or have seen a situation you think may involve trafficking please contact the FBI at 1-800-CALL-FBI, the National Human Trafficking Hotline at 1-888-373-7888 or text HELP or INFO to BeFree (233733), or your local law enforcement. If you or someone you know is in immediate danger, please call 911. If you believe a child is involved in a trafficking situation, submit a tip through the National Center for Missing & Exploited Children’s Call Center at 1-800-THE-LOST (1-800-843-5678).
Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Howard County Man Sentenced to Two Years in Federal Prison for Threatening an LGBTQI+ Advocacy GroupRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III today sentenced Adam Michael Nettina, age 34, of West Friendship, Maryland, to two years in federal prison, followed by three years of supervised release, for using the telephone to make death threats and other calls for violence against a group that advocates for LGBTQI+ people. According to the evidence presented by the government at today’s sentencing hearing, Nettina also sent threatening messages to Maryland and Virginia state delegates due to their support of transgender people.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; and Acting Special Agent in Charge R. Joseph Rothrock of the Federal Bureau of Investigation, Baltimore Field Office.
“You have the right to your own opinions, but you don’t have the right to threaten the lives of those who disagree with you. As this case demonstrates, free speech does not include violent threats against others,” said United States Attorney for the District of Maryland, Erek L. Barron. “We’ll continue prosecuting these threats to the fullest extent of the law.”
“This defendant targeted and threatened members of the LGBTQI+ community and their allies, instilling fear and promoting violence toward a heavily targeted community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence underscores the Justice Department’s commitment to combating threats against public officials and protected communities. We will work tirelessly to expunge the growing threat posed by bias-motivated acts of violence directed at the LGBTQI+ community and their allies.”
“Threats of violence made against people and organizations to instill fear will not be tolerated,” said Acting Special Agent in Charge R. Joseph Rothrock of the FBI Baltimore Field Office. “The FBI will continue to work diligently to ensure the civil rights of all Americans are protected.”
According to court documents, on the evening of March 28, 2023, the victim organization received a threatening voicemail from a phone number, which investigators identified as belonging to Adam Michael Nettina. The message referenced the March 27, 2023, mass shooting at a school in Nashville, Tennessee, involving multiple shooting fatalities, where police identified the perpetrator as a transgender woman. During the call, numerous threats were made including, “ . . . We’ll cut your throats. We’ll put a bullet in your head . . . . You’re going to kill us? We’re going to kill you ten times more in full.”
Nettina admitted that he left this voicemail for the purpose of issuing a threat and with the knowledge that the voicemail would be viewed as a threat. Further, Nettina intentionally selected the advocacy organization as a target of his message because of the actual and perceived gender, gender identity, and sexual orientation of the people who work at and are assisted by the organization.
As detailed in his plea agreement, on March 31, 2022, a Maryland State Delegate posted a message of support on social media in honor of Trans Day of Visibility. Nettina responded on social media later that same day, which stated, among other things, that he had “begun the formal process of getting you excommunicated . . . ” from the Catholic Church. On November 8, 2022, the delegate was reelected. Nettina sent the delegate another message on social media, stating: “ . . . Baby killing terrroist. Enjoy hell You’re going sooner than you think.”
Finally, as outlined in the court documents, on October 13, 2022, an online news story was published about an interview a Virginia State Delegate gave in which she advocated for the prevention of abuse towards transgender children. Two days later, on October 15, 2022, Nettina used the internet to send an email to the delegate’s press email account, stating: “The delegate is a terrorist. You are a terrorist. You deserve to be shot and hung in the streets. You want to come after people? Let’s go b**ch.” Nettina also sent a similar message to another email address of the delegate two minutes later. Nettina intentionally selected the delegate and her campaign staff as the recipient of his email because of the actual and perceived gender, gender identity, and sexual orientation of the people and constituents for whom the delegate had expressed support.
United States Attorney Erek L. Barron and Assistant Attorney General Kristen Clarke commended the FBI for its work in the investigation. Mr. Barron and Ms. Clarke thanked Assistant U.S. Paul E. Budlow and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division, who prosecuted the federal case.
Earlier this year, the U.S. Attorney’s Office for the District of Maryland (USAO-MD) launched the national Department of Justice initiative, United Against Hate. Together with our local partners, USAO-MD’s United Against Hate campaign will empower local residents and communities to combat unlawful acts of hate, stand against racism and discrimination and alter the course of growing intolerance.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Houstonian imprisoned for attempting to import enough fentanyl to kill 2 million peopleRead the Press Release
LAREDO, Texas - A 49-year-old Houston woman has been ordered to federal prison for conspiring to import fentanyl, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury deliberated for less than an hour before convicting Monica Mata Vasquez Aug. 25, 2023, following a two-day trial.
U.S. District Judge Diana Saldana has now ordered Vasquez to serve 136 months in federal prison to be immediately followed by five years of supervised release. At the hearing, the court emphasized the significance of this case noting that fentanyl is destroying our community and killing people across the country.
“It takes only a tiny amount of fentanyl to kill a loved one. Vasquez brought in 4.6 kilos of that dangerous drug from Mexico--enough to kill approximately 2 million people,” said Hamdani. “She routinely travelled to Monterrey, Mexico, to pick up narcotics and did it all for money. She prioritized her greed over the well-being of our community. Today’s sentence takes a callous drug transporter off the streets and away from the border and guarantees that Vasquez will no longer profit from the pervasive destruction of fentanyl.”
“Illicit fentanyl is one of the greatest dangers we’re facing as a country,” said Special Agent in Charge Craig Larrabee of Homeland Security Investigations (HSI) San Antonio. “The conviction and sentencing of Vasquez highlights the strength of our law enforcement partnerships who spend countless hours combating a poison that is harmful to many communities and families. HSI is steadfast in its efforts to disrupt and dismantle transnational criminal organizations and combat the flow of illicit opioids into the United States.”
On March 10, 2023, Vasquez arrived at the Juarez-Lincoln Port of Entry in Laredo and attempted to enter the United States. She had a suspicious travel itinerary which caused authorities to refer her to secondary inspection. There, authorities noticed anomalies in the battery of her car. Law enforcement removed the battery and found four bundles of fentanyl hidden inside it.
The total weight of the fentanyl was 4.6 kilograms, an amount with the approximate strength to kill more than two million people.
The jury also saw text messages from Vasquez’s phone which showed she had been coordinating “trips” with co-conspirators to and from Monterrey, Mexico, into the United States as far back as July 2022. The evidence showed Vasquez had driven to such locations as Alabama and had conversations about the purchase and installation of car batteries.
Further testimony indicated these messages showed Vasquez was part of an agreement to import and traffic narcotics.
The defense attempted to convince the jury that Vasquez did not know the drugs were inside the car. The jury did not believe those claims and found her guilty of engaging in a conspiracy to import fentanyl.
Vasquez has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI conducted the investigation with the assistance of Customs and Border Protection and the Drug Enforcement Administration. Assistant U.S. Attorneys Leslie Cortez and Brian Bajew prosecuted the case.
#OnePillCanKill
Honduran National Sentenced for Being and Illegal Alien in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA –MELVIN DANIEL VARGAS-REYES, 21, was sentenced on January 10, 2024 for being an illegal alien in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(5)(A), announced U.S. Attorney Duane A. Evans.
According to court documents, VARGAS-REYES admitted to possessing a Hi-Point, nine-millimeter pistol as an illegal alien. VARGAS-REYES was sentenced by U.S. District Judge Sarah S. Vance to (24) twenty-four months in federal prison. He was also ordered to pay a $100 mandatory special assessment fee.
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.
U.S. Attorney Evans praised the work of the Department of Homeland Security. Assistant United States Attorney Spiro G. Latsis of the General Crimes Unit is in charge of the prosecution.
Hibbing Felon Indicted for Drug Trafficking and Firearms ViolationsRead the Press Release
ST. PAUL, Minn. – A Hibbing man has been indicted for possession with intent to distribute fentanyl, methamphetamine, and cocaine, and illegal possession of firearms, announced U.S. Attorney Andrew M. Luger.
According to court documents, in November 2022, Phillip Lamount Davis, 53, was found to be in possession of fentanyl, cocaine, and methamphetamine. Law enforcement also discovered evidence of drug distribution and a firearm; a second firearm was found in Davis’s possession in June 2023.
Because Davis has multiple prior felony convictions in Illinois, he is prohibited under federal law from possessing firearms or ammunition at any time.
The indictment charges Davis with one count of distribution of methamphetamine, one count of possession with intent to distribute fentanyl, one count of possession with intent to distribute methamphetamine and cocaine, two counts of possessing a firearm as a felon, and possessing a firearm during and in relation to a drug trafficking crime. He made his initial appearance in U.S. District Court yesterday before Magistrate Judge Leo I. Brisbois, and a detention hearing has been scheduled for January 16, 2024, in Duluth.
This case is the result of an investigation conducted by the Lake Superior Violent Offenders Task Force, in coordination with the St. Louis County Attorney’s Office.
Assistant U.S. Attorney Carla J. Baumel is prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Hampshire County man sentenced to 9 years for methamphetamine traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timmey Leo Lambert, Sr., age 59, of Augusta, West Virginia, was sentenced to 108 months in federal prison for drug trafficking.
According to court documents and statements made in court, Timmey Lambert, Sr., was selling methamphetamine in Hampshire County. Investigators searched Lambert’s home and found methamphetamine, 16 firearms, $4100 in counterfeit money, and a bulletproof vest.
Assistant U.S. Attorney Kyle Kane prosecuted the case on behalf of the government.
The Potomac Highlands Drug Task Force, a HIDTA-funding initiative, investigated.
U.S. District Judge Gina M. Groh presided.
Hammond Woman Sentenced for Theft of More than $44,000 in Social Security FundsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that MELISSA KING (“KING”), age 54, of Hammond, Louisiana was sentenced on January 9, 2024 by United States District Judge Greg G. Guidry after previously pleading guilty to Theft of Government Funds, a violation of Title 18, United States Code, Section 641. Judge Guidry sentenced KING to three (3) years of probation, payment of restitution in the amount of $44,696.00 to the Social Security Administration as well as payment of a $100 mandatory special assessment fee.
According to court records, beginning in or around December 2016, and continuing until in or around March 2020, KING collected approximately $44,696.00 in Social Security Administration funds to which she was not entitled.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni of the Financial Crimes Unit.
Former Seattle resident convicted of bank fraud for false COVID-19 Paycheck Protection Program filingsRead the Press Release
Seattle – A 30-year-old New York City man was convicted today in U.S. District Court in Seattle of three counts of wire fraud and two counts of bank fraud related to his abuse of the COVID-19 Pandemic Paycheck Protection Program (PPP), announced Acting U.S. Attorney Tessa M. Gorman. Donte Jamal McClellon was a resident of Seattle when he submitted falsified documents to obtain $500,948 in loan proceeds from three different financial institutions in May and June 2020. The jury deliberated about two hours following the three-day trial. U.S. District Judge Lauren King scheduled sentencing for April 10, 2024.
According to records filed in the case, McClellon used the names of three limited liability corporations he had once registered in the State of Washington to make his claims. Each of the entities, ‘Frostlake,’ ‘Cannonlake,’ and ‘Skylake’ LLC, had been inactive and showed no signs of business activity in any state or federal registries in the years leading up to the pandemic. Nevertheless, in May and June 2020, McClellon submitted Paycheck Protection program applications claiming the entities each had as many as 13 employees and, in one case, gross receipts of more than $1.6 million. McClellon forged multiple Internal Revenue Service forms to make it appear the three companies were operating real estate, wholesale, or retail businesses, with employees who would benefit from the Paycheck Protection Program loans. McClellon claimed the businesses operated out of his home address in Seattle. The investigation revealed there was no business activity at that address.
The loan funds were disbursed to bank accounts that McClellon had set up just days before he made the loan applications. The proceeds were then moved to a personal bank account controlled by McClellon. McClellon used the money to pay his rent on a Manhattan apartment, for travel and gym memberships, and some $20,000 on Uber rides among other personal, non-business expenses.
The case was investigated by The FBI Seattle Field Division with assistance from FBI New York and the Small Business Administration Office of Inspector General (SBA-OIG).
The case was prosecuted by Assistant United States Attorney Lauren Watts Staniar, Jessica Murphy Manca, and Sok Tea Jiang.
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 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 via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former San Francisco Resident Sentenced to Four Years in Prison for Crimes Related to “Ichioka Ventures” Cryptocurrency Fraud SchemeRead the Press Release
SAN FRANCISCO – William Koo Ichioka was sentenced to serve four years in prison and ordered to pay a $5 million fine for committing multiple felonies in connection with an investment fraud scheme involving cryptocurrencies and other investment vehicles. The sentence was handed down by the Hon. Vince Chhabria, United States District Judge.
Ichioka, 30, formerly of San Francisco and New York, pleaded guilty to five charges—wire fraud, two counts of aiding and assisting in the preparation of a false or fraudulent tax return, committing fraud in connection with the purchase and sale of securities, and engaging in commodities fraud—on July 12, 2023. According to his plea agreement, beginning in 2018, Ichioka operated a scheme in which he fraudulently raised tens of millions of dollars from over 100 persons and entities. Court documents describe how Ichioka held himself out as “self-made investor” with a “multimillion fortune” as he solicited investors by promising that their funds would be invested in various securities and/or commodities, including cryptocurrency, and cryptocurrency arbitrage, futures, and derivatives, and foreign exchange currency transactions. Ichioka began doing business under the name “Ichioka Ventures” in 2019 and represented to prospective investors that they would earn 10% returns every 30 business days, and that his investment and trading activities actually had been generating or had the ability to generate returns in excess of these amounts. Further, Ichioka created a website for Ichioka Ventures that allowed investors to create and login to accounts to invest, view balances and investments, and view transaction history.
Ichioka admitted that, rather than invest his victims’ money as he promised, he instead commingled investor money with his own funds and used investor money to make purchases of luxury items (including luxury vehicles, watches, and other jewelry) and to fund his own personal expenses. Such personal expenses included his personal residence, restaurants and bars, grocery stores, taxi and car share rides, retail stores, gym membership fees, and online purchases. Moreover, Ichioka admitted that he and Ichioka Ventures did not actually earn 10% returns every 30 business days for his investors throughout the time that he represented that it did. Rather, he and Ichioka Ventures sustained losses from portions of funds that he did invest. Court documents describe that by the end of 2019—unbeknownst to investors—Ichioka had privately acknowledged that the “[c]ompany hasn’t made any money since we started.”
“Ichioka lured his victims by falsely promising they would receive huge returns quickly on their investments,” said First Assistant United States Attorney Patrick Robbins. “During the years that he ran his cryptocurrency-based Ponzi scheme, Ichioka managed to defraud more than 100 investors of tens of millions of dollars. Today’s sentence illustrates that lengthy prison terms await all those who seek to swindle investors in this district.”
“Ichioka convinced unsuspecting investors to pour money into his bogus venture with false promises of legitimate profits. His deceitful financial scheme victimized more than 100 people, including his friends and family. I hope that today's sentence brings them some measure of justice,” said FBI Special Agent in Charge Robert Tripp. “The FBI and our law enforcement partners will continue to pursue criminals who choose to commit financial fraud and hold them accountable for their crimes.”
“Predatory financial schemes like Ichioka’s are not victimless, nor do they escape justice as evidenced by today’s sentencing,” said IRS Criminal Investigation Acting Special Agent in Charge Michael Mosley of the Oakland Field Office. “IRS CI Oakland Field Office Special Agents and investigative staff in conjunction with our federal law enforcement partners follow the money, and as a result, deliver cases that lead to just outcomes.”
Ichioka admitted that he repaid existing investors with new investor funds to further perpetuate the fraud. Further, Ichioka agreed that he owes non-family investors in “Ichioka Ventures” at least $21 million as a result of the scheme, and additionally owes his family members over $40 million.
Ichioka also admitted that he concealed and hid the scheme by doctoring financial documents to falsely overstate the value of assets (including bank, brokerage, and cryptocurrency exchange materials) and providing doctored documents to prospective investors, according to court filings describing Ichioka’s agreement to plead guilty. Ichioka also presented false statements of account to investors via the Ichioka Ventures website, failed to provide tax documentation to investors, and willfully failed to report income to the Internal Revenue Service in this scheme.
On June 22, 2023, Ichioka was charged in an Information with one count of wire fraud, in violation of 18 U.S.C. § 1343; two counts of aiding or assisting in the preparation of a false or fraudulent tax return, in violation of 26 U.S.C. § 7206(2); one count of securities fraud, in violation of 15 U.S.C. §§ 78j(b), 78ff; 17 C.F.R. § 240.10b-5; and one count of commodities fraud, in violation of 18 U.S.C. § 1348. Ichioka pleaded guilty to all five counts.
In addition to the prison term and fine, Judge Chhabria also ordered Ichioka to serve five years of supervised release to begin after his prison term. A hearing is scheduled for February 20, 2024, before Judge Chhabria to determine issues related to restitution.
The case is being prosecuted by Assistant United States Attorneys Eric Cheng and Benjamin Kingsley with assistance from Megan Pagaduan. The prosecution is the result of an investigation by the FBI and IRS-Criminal Investigation. The U.S. Attorney’s Office and the federal law enforcement agencies also thank the San Francisco Regional Office of the Securities and Exchange Commission and the Commodity Futures Trading Commission, both of whom conducted separate parallel investigations into the defendant’s conduct.
Former Nonprofit Leaders Sentenced in San Antonio for FraudRead the Press Release
SAN ANTONIO – A California man and his San Antonio co-conspirator were sentenced in a federal court in San Antonio for conspiracy to commit wire fraud.
Hector Barreto, 62, of San Juan Capistrano, was sentenced to 20 months in prison and ordered to pay $944,693.51 in restitution and a $100,000 fine. Miguel Gutierrez, 49, was sentenced to 10 months in prison as a condition of five year probation. He was also ordered to pay a $100,000 fine and restitution of $1,194,439.51. A restraining order was entered against both defendants to ensure government oversight of their assets until the victims are made whole.
According to Court documents, Barreto, who served as the Small Business Administrator under President George W. Bush, and Gutierrez operated a charity called the Latino Coalition Foundation. Barreto controlled the charity's bank accounts and had operational control. Barreto and Gutierrez solicited donations into that charity to be used to establish an apprenticeship program to help low income youth get critical job training and skills. Instead of using the charitable funds for charity, Barreto and Gutierrez stole much of the funds for themselves through direct and indirect payments to themselves, using the charity's credit cards for personal expenses, and payments to friends and family members. To help hide the diversion of charitable funds, Barreto and Gutierrez falsified the IRS Form 990s for the charity to make it falsely appear they had not received payments from the charity when in reality, they had received hundreds of thousands of dollars.
Gutierrez pleaded guilty in July 2022 to one count of conspiracy to commit wire fraud and one count of filing a false tax return. Barreto pleaded guilty in April 2023 to conspiracy to commit wire fraud and conspiracy to defraud the United States.
“Our nations charity system is based upon trust,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Donors trust that those who run the charities are using their money for charity and not to line their own pockets. The defendants today were sentenced for betraying that trust. Our office will vigorously prosecute anyone who steals charitable donations to feed their own greed.”
“Many Americans want to help their communities by supporting charities and causes that they care about. They trust that their support will be used to help those in need,” said Acting Special Agent in Charge Doug Olson for the FBI San Antonio Division. “Hector Barreto and Miguel Gutierrez abused that trust, and this sentence reflects the seriousness of their crimes. We want to thank our partners in IRS Criminal Investigation for their continued work in protecting our nation’s citizens.”
“The tax-exempt status offered by the IRS helps citizens to know that an organization is operated to promote social welfare. Barreto and Gutierrez stole a significant portion of tax-exempt funds and eroded the trust citizens have in these organizations,” said Assistant Special Agent in Charge Rodrick Benton for IRS Criminal Investigation’s Houston Field Office. “CI special agents helped unravel this scheme and will continue working to protect the public’s interest by stopping these schemes cold.”
The FBI and CI investigated the case.
Assistant U.S. Attorneys Joseph Blackwell and Bill Harris prosecuted the case.
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Former NOPD Sergeant Charged with Wire Fraud for Double Billing and Billing for Time Not WorkedRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that TODD F. MORRELL, age 56, a resident of New Orleans, was charged today with twelve (12) counts of wire fraud, in violation of Title 18, United States Code, Section 1343, for perpetrating a multi-year scheme to defraud the New Orleans Police Department (NOPD) and the New Orleans Fair Grounds, an entity for which he was paid to provide off-duty police details.
According to the charging document, MORRELL was a NOPD Sergeant with NOPD’s Special Operations Division and served both on a Tactical Platoon and the Bomb Disposal Unit. He supplemented his NOPD income with security-oriented secondary employment (i.e., “police details”) while off-duty, including the New Orleans Fair Grounds Neighborhood Patrol (“Fair Grounds Patrol”). The Fair Grounds Patrol was created by city ordinance to supplement and enhance police service around the New Orleans Fair Grounds Racecourse, in New Orleans. The Fair Grounds Patrol consisted of two patrol cars operating 24 hours per day, 7 days a week, with one off-duty NOPD officer per car. MORRELL signed annual certifications attesting to his understanding of NOPD policies, including, secondary employment, and acknowledging that he would “actively monitor my hours.”
Notwithstanding these annual certifications, on numerous occasions between January 2017 and November 30, 2021, MORRELL submitted and certified timecards to NOPD and time sheets to the Fair Grounds Patrol falsely claiming to have been on duty (for NOPD) and on detail (for the Fair Grounds Patrol) when, in actuality, MORRELL was not present for duty. Often, MORRELL was engaged in recreational race car driving in Avondale, Louisiana, and Austin, Texas, while claiming to be on duty and on detail. Additionally, MORRELL frequently “double billed” NOPD and the Fair Grounds Patrol by submitting time sheets to both entities reflecting that he was working for both entities simultaneously.
Further, MORRELL regularly certified and submitted timecards to NOPD and time sheets to other entities, reflecting that he provided police details not only for a significant number of consecutive days but also, in effect, for the vast majority of days each year. For example, MORRELL certified and submitted timecards and time sheets reflecting that he worked every day between March 26, 2017, and July 23, 2017, except one. MORRELL claimed to have worked between thirteen (13) and twenty and one-half (20.5) hours per day for more than thirty (30) of those days. Similarly, MORRELL certified and submitted timecards and time sheets in 2020, reflecting that he worked approximately 356 days out of the 365-day calendar year. MORRELL also reported—and was paid for—working a massive number of hours annually, including more than 4,600 hours in 2020 alone.
In Fall 2021, including on or about November 16, 2021, local New Orleans media outlets published and broadcast reports concerning MORRELL’s employment with NOPD and the Fair Grounds Patrol. On November 17, 2021, MORRELL submitted payroll adjustment forms for several dates between December 2017 and April 2021 seeking to correct “clerical errors” that misstated the hours he had been on duty for NOPD, to NOPD. On about November 30, 2021, MORRELL resigned from NOPD.
“While an indictment is merely a charge, not a full presentation of evidence, today’s indictment emphasizes this office’s dedication to ensuring the integrity and honesty of public officials and holding responsible those who betray that sacred public duty,” announced U.S. Attorney Evans. “Official misconduct erodes trust in public institutions and deprives local governments of precious resources. When the public official is a member of law enforcement, who has sworn to protect and serve its citizens and maintain the highest standards of the community, such behavior is even more egregious, especially in communities whose police departments are already enduring critical staffing shortages.”
For each count, MORRELL faces up to twenty (20) years in prison, up to three years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
Former MPD Officer Found Guilty of Bribery in Scheme to Sell Personal Identifying Information of Traffic Crash VictimsRead the Press Release
WASHINGTON – Vincent Forrest, 35, a former patrol officer with the Metropolitan Police Department (MPD), was found guilty today for his role in a bribery scheme in which he unlawfully provided information contained in non-public police documents in exchange for cash payments, announced U.S. Attorney Matthew M. Graves and FBI Acting Special Agent in Charge David Geist of the Washington Field Office Criminal and Cyber Division.
Forrest, of Washington, D.C., and Raquel DePaula, 43, of Beltsville, Maryland, were indicted by a grand jury in June 2021.
A federal jury in U.S. District Court today found Forrest guilty of conspiracy, bribery, and making false statements. The Honorable Randolph D. Moss set sentencing for June 7, 2024.
According to the government’s evidence, beginning in April 2019, Forrest accessed confidential information from MPD Traffic Accident Reports, or “PD Form 10s.” Forrest, in violation of his official duties, used his official access to MPD’s law enforcement sensitive database to review and record victim contact information from Traffic Accident Reports. The reports contained the names and contact information of individuals involved in traffic accidents.
Forrest sent the victim contact information to DePaula using WhatsApp Messenger, an encrypted communications application. DePaula, who owned RD Legal Solutions, LLC, acted as a “runner,” using victim contact information to solicit for local attorneys in exchange for referral fees. DePaula reached out to the accident victims within days of their traffic accidents in violation of 22 D.C. Code Section 3225.14.
Forrest met up with DePaula at various locations in the District and Maryland to receive cash bribes from her. Forrest and DePaula concealed their bribery scheme by, among other methods, communicating by encrypted application, meeting in person, and exchanging bribes in cash.
DePaula pleaded guilty on October 6, 2021, in U.S. District Court for the District of Columbia, to one count of bribery of a public official. She is scheduled to be sentenced on March 15, 2024. DePaula has admitted paying Forrest between approximately $600 and $1,300 per week in exchange for the victim contact information. The evidence at trial showed that over the course of the scheme, she paid Forrest over $15,000 and receiving contact information for 2,316 traffic crash victims.
DePaula and Forrest are the sixth and seventh defendants to be convicted in connection with the illegal sale of traffic crash reports by MPD officers. Previously, MPD Officer Walter Lee, MPD employees Kendra Coles and Aaron Willis, runners Marvin Parker and Michelle Cage pleaded guilty to related charges.
This investigation was conducted by the FBI’s Washington Field Office and MPD’s Internal Affairs Division. The case is being prosecuted by Assistant U.S. Attorneys Joshua S. Rothstein and Madhu Chugh of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
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Former Federal Bureau of Prisons Corrections Officer Pleads Guilty to Sexually Abusing Inmate in His CustodyRead the Press Release
A former Federal Bureau of Prisons (FBOP) Corrections Officer, Robert D. Smith, 38, pleaded guilty today in federal court to one count of sexual abuse of a ward.
“Today, Robert Smith pleaded guilty to sexually abusing a woman in his custody, in violation of the law and his sworn duty as a Federal Bureau of Prisons officer,” said Deputy Attorney General Lisa O. Monaco. “This prosecution is the latest example of the Justice Department holding to account those who exploit their positions of authority within the Federal Bureau of Prisons and working to eliminate sexual assault from our prison systems.”
“When officials inside our jails and prisons carry out acts of sexual violence against vulnerable women in their custody, they will be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “There is zero tolerance for corrections officers who misuse their authority to commit egregious sex crimes, and that rule applies equally to those who work at federal prisons. The Justice Department will continue to aggressively prosecute sexual predators in correctional settings, while standing up for the civil rights of the survivors of these heinous crimes.”
“As today’s guilty plea demonstrates, the Office of the Inspector General is committed to ensuring that Federal Bureau of Prisons employees who exploit their power and authority to sexually abuse inmates are brought to justice and held accountable for their heinous acts,” said Inspector General Michael E. Horowitz of the Justice Department’s Office of the Inspector General (DOJ-OIG).
“Sexual abuse of prison inmates by federal corrections officers is intolerable,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “My office will continue to aggressively prosecute and bring to justice those who abuse their authority and prey on vulnerable people they are sworn to protect and keep safe.”
According to court documents, Smith worked as a corrections officer at the Federal Correctional Institution in Aliceville (FCI-Aliceville), Alabama. As part of his duties, Smith was to ensure the safety and security of inmates housed at FCI-Aliceville and to uphold the U.S. Constitution.
While acting in his capacity as an officer, in or around February 2019, Smith knowingly engaged in a sexual act with T.M., a female inmate in official detention, who was under Smith’s custodial, supervisory, or disciplinary authority. Smith also admitted to sexually abusing another inmate on a different occasion. Also while acting in his capacity as an officer, between on or about July 6, 2018, and Nov. 15, 2018, Smith knowingly engaged in a sexual act with R.R-L., a female inmate in official detention, who was under Smith’s custodial, supervisory, or disciplinary authority.
A sentencing hearing is scheduled for May 29. Smith faces a maximum penalty of 15 years in prison, three years of supervised release, and a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
DOJ-OIG investigated the case.
Assistant U.S. Attorney Michael Royster for the Northern District of Alabama and Trial Attorney Anna Gotfryd of the Civil Rights Division’s Criminal Section are prosecuting the case.
FBOP is committed to rooting out misconduct within its ranks and working with law enforcement partners to prosecute violations of federal law. The numerous FBOP employees working diligently to ensure justice for the victims of misconduct are critical to the Department’s reform efforts.
Former Employee of Two Leading Global Financial Institutions and His Associate Plead Guilty to Insider TradingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the guilty pleas of ANTHONY VIGGIANO and his co-conspirator, STEPHEN FORLANO, Jr., in connection with their participation in a scheme to commit insider trading securities fraud based on information that VIGGIANO misappropriated from two leading global financial firms while VIGGIANO was employed at the firms. VIGGIANO and FORLANO were arrested in May 2023 and pled guilty to securities fraud based on insider trading before U.S. District Judge Valerie E. Caproni. CHRISTOPHER SALAMONE previously pled guilty for his role in the scheme.
U.S. Attorney Damian Williams said: “Anthony Viggiano was placed in trusted positions by not one, but two leading global financial institutions. Viggiano broke that trust repeatedly, illegally tipping Stephen Forlano, Jr., with material, confidential information. Viggiano and Forlano knew their conduct was wrong but sought to cheat the system anyway. Protecting the sanctity and integrity of the financial markets continues to be a cornerstone initiative for this Office, and we will continue to bring anyone attempting to illicitly disclose non-public information to justice.”
According to the allegations contained in the Indictment, other public court documents, and statements made during court proceedings:
ANTHONY VIGGIANO was employed at two different, leading global financial institutions located in New York, New York, specifically an investment management firm (“Firm-1”) and an investment bank (“Firm-2,” and together with Firm-1, the “Firms”). VIGGIANO worked as an analyst in Firm-1’s New York, New York, office between in or about April 2021 and in or about October 2021 and then worked at Firm-2 in New York, New York, as an associate in the asset management department. While working at the Firms, VIGGIANO received confidential internal communications that contained detailed information about non-public potential strategic partnerships involving Firm-1 and acquisitions involving Firm-2.
VIGGIANO attended college with FORLANO and was a childhood friend of SALAMONE. In violation of the duties that he owed to each of the Firms, VIGGIANO tipped FORLANO and SALAMONE with material, non-public information (“MNPI”) relating to the names of potential counterparties for Firm-1’s strategic partnerships and, later, information that VIGGIANO learned during his employment at Firm-2 about companies that were potential acquisition targets. After VIGGIANO started working at Firm-2, he continued tipping STEPHEN FORLANO, Jr., with MNPI that VIGGIANO obtained through his employer. In total, VIGGIANO tipped FORLANO and/or SALAMONE with inside information in advance of at least eight different transactions involving publicly traded companies.
FORLANO and SALAMONE each used MNPI provided by VIGGIANO to purchase shares in companies and to trade call options, including short-dated, out-of-the-money call options. VIGGIANO and SALAMONE agreed to split the profits from their illegal trading, which yielded total illegal profits of over approximately $300,000. FORLANO further provided this MNPI to friends and family through, among other means, a video game console’s audio chat function in order to evade detection by law enforcement. FORLANO himself illegally profited at least approximately $100,000 from the scheme.
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VIGGIANO, 26, of Baldwin, New York, and FORLANO, 27, of Tampa, Florida, each pled guilty to one count of securities fraud under Title 15, which carries a maximum sentence of 20 years in prison.
The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI. He also expressed appreciation for the SEC, which separately initiated civil proceedings against the defendants.
This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Peter J. Davis and Jared Lenow are in charge of the prosecution.
Former Albany County Employee Pleads Guilty to Stealing Government FundsRead the Press Release
ALBANY, NEW YORK – John T. Cox, age 61, of Schenectady, New York, pled guilty today to mail fraud and stealing money from a federally funded governmental agency.
United States Attorney Carla B. Freedman; Craig L. Tremaroli, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Ryan T. Geach, Special Agent in Charge of the Department of Justice Office of the Inspector General (DOJ OIG) Northeast Region, made the announcement.
Cox admitted that between June 2017 and February 2023, while employed as a Budget Analyst in the Albany County Sheriff’s Office (ACSO), he stole $122,251.25 by issuing 16 fraudulent checks drawn on funds in the care of the ACSO, an agency that received more than $10,000 in federal funding each year during this time period.
Cox used the checks to pay himself directly or to pay down his line of credit. Cox then tried to cover up his fraud by falsifying ACSO records to suggest that the funds were being used for legitimate purposes such as vehicle and equipment purchases. Cox stole some of the money from a Department of Justice program in which the federal government shares the proceeds of federal asset forfeitures with state and local law enforcement agencies.
Cox is scheduled to be sentenced on May 9, 2024 by United States District Judge Mae A. D’Agostino. The mail fraud conviction carries a maximum term of 20 years in prison and the federal program theft conviction carries a maximum term of 10 years in prison. Both charges carry a fine of up to $250,000 and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Cox has also agreed to pay $122,251.25 in restitution to the ACSO, and to a forfeiture money judgment in the amount of $113,301.25.
The FBI, DOJ OIG, and ACSO investigated the case with valuable assistance from the Money Laundering and Asset Recovery Section of the Department of Justice’s Criminal Division. Assistant U.S. Attorney Joshua R. Rosenthal is prosecuting the case.
Foreign National Is Sentenced to Prison for Trafficking FirearmsRead the Press Release
CHARLOTTE, N.C. – Arturo Sanchez-Delgadillo, 34, of Mexico, was sentenced today to 48 months in prison followed by one year of supervised release for unlawful possession of a firearm by an illegal alien, after he attempted to trade 12 illegal firearms for half a kilogram of cocaine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Interim Chief Roy Sisk of the Matthews Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, on December 2, 2021, Sanchez-Delgadillo knowingly possessed 12 illegal firearms which he attempted to trade for half a kilogram of cocaine with an individual working with law enforcement (CI). Court documents show that, over the course of the negotiations about the trade, Sanchez-Delgadillo sent the CI photographs of multiple firearms he possessed. On December 2, 2021, Sanchez-Delgadillo and the CI arranged to meet and make the trade. Law enforcement conducted a traffic stop of Sanchez-Delgadillo’s vehicle while he was on his way to meet with the CI. Law enforcement searched Sanchez-Delgadillo’s vehicle and seized 12 firearms, including pistols and semiautomatic assault rifles, four pistol magazines, and two high capacity rifle magazines.
On June 21, 2023, Sanchez-Delgadillo pleaded guilty to possession of a firearm by an alien illegally and unlawfully in the United States. He is in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the ATF and the Matthews Police Department for their investigation of the case.
Assistant U.S. Attorneys Taylor G. Stout and Shavonn N. Bennette of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Five Individuals Indicted for Long-Running Pump-and-Dump SchemesRead the Press Release
BOSTON – Four Canadian nationals and one former California attorney, who is believed to be residing in Mexico, were indicted on Jan. 9, 2024 in connection with long-running international securities fraud schemes in which they sold millions of shares in multiple microcap—or “penny”—stock companies during pump-and-dumps, generating at least tens of millions of dollars in illicit proceeds.
The indictment charged Frederick L. Sharp, 71, and Courtney M. Kelln, 43, both of British Columbia, with two counts each of securities fraud and conspiracy to commit securities fraud. The indictment further charged Luis Carrillo, 50, previously of California, and Mike K.G. Veldhuis, 43, and Paul Sexton, 55, both of British Columbia, with one count each of securities fraud and conspiracy to commit securities fraud. Sharp, Carrillo, Veldhuis and Kelln were previously charged in a criminal complaint. Also among the named co-conspirators was Roger Knox, who founded and ran the Swiss asset management firm Wintercap SA and who was sentenced for securities fraud and conspiracy to commit securities fraud in October 2023.
According to the charging documents, a pump-and-dump typically involves an effort to artificially inflate the stock price or trading volume of a publicly traded company (the “pump”) so that individuals who control a substantial portion of the company’s float can sell their shares at artificially high prices, or in a more liquid market, to other investors (the “dump”).
Sharp—who used the codename “Bond”—allegedly operated a sophisticated platform for at least six years that provided a variety of services to individuals seeking to conceal their identities in contravention of the securities laws when selling penny stock shares during pump-and-dumps. Sharp’s alleged services included: providing offshore nominee entities to hold shares for clients; providing and administering encrypted communications networks for use by clients and other co-conspirators (known as “xphone” and “xmail”); facilitating the deposit of stock through Wintercap in the names of the nominee entities; administering a proprietary web-based accounting system that tracked clients’ total stock holdings, sales and proceeds (known as “Q”); and facilitating the payment of illegal stock sale proceeds to accounts around the world at his clients’ direction.
Kelln, who worked for Sharp, allegedly facilitated the breakdown and transfer of Sharp’s clients’ shares to Sharp’s offshore nominees, as well as the shares’ subsequent deposit with Wintercap to facilitate their sale to unsuspecting investors.
Carrillo, Veldhuis and Sexton are alleged to have been “undisclosed control persons” who orchestrated pump-and-dumps using Sharp’s platform and through Wintercap. The steps in the alleged schemes generally involved: acquiring control over a significant portion, if not all, of a penny-stock issuer’s outstanding shares and a majority, if not all, of the issuer’s float, while simultaneously failing to file public disclosures when required by the securities laws; transferring the shares to nominee entities in blocks of less than five percent of the total outstanding shares of the issuer in order to evade and circumvent the securities laws and to evade scrutiny by brokers; transferring the shares held by the nominee entities to Wintercap, which in turn deposited the shares for trading at brokerages around the world; directing Wintercap to dump—i.e., sell—the shares during multifaceted promotional campaigns funded and organized by the undisclosed control persons, which campaigns at times included “boiler rooms” cold-calling unsuspecting U.S. investors in Massachusetts and elsewhere touting the stocks and soliciting purchases; and distributing the illicit proceeds from Wintercap at the undisclosed control persons’ direction.
The indictment identifies three issuers whose shares were sold during pump-and-dumps allegedly led by Carrillo:
- OneLife Technologies Corp. (ticker OLMM), millions of shares of which were sold between November 2017 and October 2018 through Wintercap, generating proceeds of approximately $5.2 million;
- Garmatex Holdings, Ltd. (ticker GRMX), millions of shares of which were sold between March and May 2017 through Wintercap, generating proceeds of approximately $5 million; and
- Pure Snax International, Inc. (ticker PSNX), millions of shares of which were sold between November 2015 and September 2016 through Wintercap, generating proceeds of approximately $1.6 million.
The indictment also identifies one issuer whose shares were sold during a pump-and-dump allegedly led by Veldhuis and Sexton:
- Vitality BioPharma, Inc., formerly known as Stevia First Corp. (tickers VBIO & STVF), millions of shares of which were sold between May 2016 and September 2018 through Wintercap, generating proceeds over $17 million.
The charges of securities fraud each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $5 million. The charges of conspiracy to commit securities fraud each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney James R. Drabick of the Securities, Financial & Cyber Fraud Unit is prosecuting the case.
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.
Felon Admits Robbing St. Louis Pizza Delivery DriverRead the Press Release
ST. LOUIS – A convicted felon on Thursday admitted robbing a pizza delivery driver at gunpoint in St. Louis last year.
Antione L. Shockley, 26, pleaded guilty in U.S. District Court to robbery and possession of a firearm as a convicted felon.
Shockley admitted arranging to have Domino’s Buffalo wings and two pizzas delivered to a vacant home in the Central West End neighborhood of St. Louis on April 13, 2023. When the driver arrived, Shockley stepped out of a gangway and demanded the food at gunpoint.
Shockley also admitted firing a handgun into the air in a school zone on June 24, 2023. After St. Louis Metropolitan Police Department officers arrived, Shockley gave the handgun he was holding to a woman. He then pulled a stolen Ruger from his waistband and a rifle from inside his pants and dropped them on the ground. Shockley is a convicted felon and is thus barred from possessing firearms. After he was arrested and while he was being booked by police, Shockley struck an officer, injuring the officer’s head. As part of his plea agreement, Shockley has agreed to plead guilty to a gun charge and resisting arrest in St. Louis Circuit Court.
Shockley is scheduled to be sentenced April 9. Both sides have agreed to recommend 10 years in prison.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Zachary Bluestone is prosecuting the case.
Federal Jury Finds Minneapolis Felon Guilty of Illegal Possession of a FirearmRead the Press Release
ST. PAUL, Minn. – A federal jury found a Minneapolis man guilty of possessing a firearm as a felon, announced U.S. Attorney Andrew M. Luger.
According to the evidence presented at trial, in the early morning hours of October 25, 2022, officers with the Minneapolis Police Department responded to an apartment building on Hiawatha Avenue following reports of a possible domestic incident involving a person with a gun. Officers went to the apartment unit and, as they approached the door, could hear a male voice yelling loudly. Officers ultimately opened the door using a key from apartment security and located Devon Lamont Holt, 33, and a woman inside. Officers obtained a search warrant for the apartment and recovered a loaded Taurus model G2C nine-millimeter pistol. Subsequent testing revealed Holt’s DNA on the firearm.
Because Holt has prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time.
Following a three-day trial before Judge Katherine M. Menendez in U.S. District Court, Holt was found guilty yesterday on one count of possession of a firearm as a felon. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorneys Ruth S. Shnider and Bradley M. Endicott tried the case.Federal Inmate Sentenced to Seven Months for Possession of Contraband Cell PhoneRead the Press Release
WILMINGTON, N.C. – A federal inmate pled guilty to possession of a contraband cell phone at the Low Security Correctional Institution in Butner, North Carolina (“LSCI Butner”) and was sentenced to seven months in prison for the charge. The seven-month term of imprisonment is in addition to, and consecutive to, his current term of imprisonment.
According to court documents, Antoine Stanfield, 42, an inmate previously housed at LSCI Butner at the time of the offense, was found in possession of a cell phone during a visual search by Federal Bureau of Prisons staff. The officer ordered Stanfield to turn over the contraband cell phone, at which time Stanfield attempted to destroy it. Inmates inside federal prisons are not permitted to possess cell phones, as they can compromise the safety and security of the institution by allowing inmates to have unmonitored communications with the outside community, which could provide inmates the opportunity to conduct further criminal activity.
Stanfield’s conviction for possession of a contraband cell phone also makes him ineligible to earn time credits under the First Step Act, which allows federal inmates to earn up to 365 days off of their sentence for participating in eligible programming while incarcerated.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement following sentencing by U.S. Chief District Court Judge Richard E. Myers II. The Federal Bureau of Prisons investigated the case and Special Assistant U.S. Attorney Mallory Brooks Storus prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-00122-M-KS.
Federal Inmate Sentenced to Life in Prison for Murder and Attempted Murder of Fellow Inmates at the Terre Haute Federal PenitentiaryRead the Press Release
TERRE HAUTE- Rodney Curtis Hamrick, 58, a federal inmate formerly housed at the United States Penitentiary, in the Terre Haute Federal Correctional Complex, has been sentenced to life in federal prison after pleading guilty to first degree murder and assault with intent to commit murder.
According to court documents, Rodney Hamrick, Richard Warren, and Robert Neal were all inmates housed within the Communications Management Unit of the U.S. Penitentiary at the Terre Haute, Indiana, Federal Correctional Complex. On November 10, 2018, Warren notified a prison officer that he had been stabbed and assaulted in his cell by Hamrick. Officers secured Hamrick and confiscated a homemade weapon resembling an icepick used to stab Warren.
Inside Hamrick’s cell, Officers also found inmate Robert Neal covered in a sheet with a pillowcase tied over his face and neck, his hands bound behind his back, and multiple puncture wounds in his chest. Neal had no pulse and was later confirmed by medical staff to be dead. The official autopsy noted eleven stab wounds to Neal’s chest, but the ultimate cause of death was strangulation.
In an interview with FBI agents, Hamrick admitted to planning to attack Neal and Warren in advance. Hamrick lured Neal into his cell to help with legal paperwork, then binding him and strangling him with a cord. When the cord broke, Hamrick strangled Neal to death with his bare hands. Hamrick then stabbed Neal multiple times to ensure he was dead. Neal was 68-years-old when Hamrick murdered him.
Hamrick then entered Warren’s cell and immediately attacked him, grabbing Warren from behind and stabbing him in the neck. Warren was able to escape Hamrick’s grasp and protect himself from further stabs until another inmate arrived and Hamrick left Warren’s cell.
At the time he committed these crimes, Hamrick was serving a life sentence imposed in 2007 by the Eastern District of Virginia for using a destructive device in an attempted crime of violence. This sentence was imposed following seven prior federal convictions for offenses including violent threats against public officials and federal buildings, attempted escape, and multiple offenses involving manufacturing and mailing destructive devices—some of which detonated and injured others. After Hamrick murdered Neal and attempted to murder Warren, the Bureau of Prisons transferred Hamrick from Terre Haute to the ADMAX administrative security U.S. Penitentiary in Florence, Colorado.
“It is clear from Rodney Hamrick’s lifelong pattern of violent crime, culminating the horrific attacks he perpetrated in the Terre Haute prison, that he should never live another day outside of federal prison,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “I commend the diligent work of the FBI and our federal prosecutors to hold this defendant accountable. I sincerely hope that the completion of this prosecution brings some measure of closure and peace to Mr. Neal’s family and the surviving victim.”
FBI investigated this case. The sentence was imposed by U.S. District Court Judge James P. Hanlon.
U.S. Attorney Myers thanked Assistant United States Attorneys Jayson W. McGrath and William L. McCoskey, who prosecuted this case.
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Fairfield County man sentenced to more than 13 years in prison for armed bank robberies in Athens, MariettaRead the Press Release
COLUMBUS, Ohio – A career bank robber was sentenced in U.S. District Court today to 162 months in prison for armed robberies he committed in Athens and Marietta in 2020.
William E. Johnson, 58, of Lancaster, committed armed robberies in August 2020 in Athens and October 2020 in Marietta. As part of his sentence, he will pay more than $50,000 in restitution.
According to court documents, on Aug. 17, 2020, Johnson brandished a firearm at Hocking Valley Bank on East State Street in Athens. Johnson wore a prosthetic forehead and nose, skin-toned arm sleeves/gloves, makeup and a COVID mask, all designed to disguise his appearance.
Johnson ordered employees to get on the floor and then emptied several drawers of cash. In total, he took more than $25,000. After stealing the cash, he tied the employees’ hands with zip ties. Johnson ordered the bank manager to give him the keys to the bank manager’s car and the manager complied. Johnson fled the bank in the stolen vehicle.
On Oct. 22, 2020, Johnson robbed the Citizens Bank on North Second Street in Marietta. Johnson was wearing a full-length Halloween-style mask that made him appear to be an old man and wore a red hood pulled up around his face.
Johnson possessed a gun and forced his way behind the tellers’ counter. He emptied several drawers, stealing $11,390.
At the time, Johnson had a warrant out for his arrest for a pending indictment for a bank robbery in Williamstown, West Virginia.
Law enforcement officers spotted Johnson driving in West Virginia on the evening of the Marietta bank robbery and pulled him over. Johnson attempted to flee on foot, telling officers they would have to kill him to take him into custody again. Officers tased Johnson and placed him under arrest.
Officers searched Johnson’s vehicle and located more than $9,000 in cash, a loaded handgun, zip ties and his disguises.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge for the Federal Bureau of Investigation (FBI) Cincinnati Division; the Athens, Marietta, Williamstown, W.Va. and Parkersburg, W.Va. police departments; the Washington County and Wood County, W.Va. sheriff’s offices; and the West Virginia State Police announced the sentence imposed today by U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorneys Noah R. Litton and S. Courter Shimeall are representing the United States in this case.
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Ex-Federal Correction Officer Pleads Guilty to Taking Bribes in Exchange for Smuggling Contraband into Federal Jail in BrooklynRead the Press Release
Earlier today, in federal court in Brooklyn, former federal correction officer Quandelle Joseph, formerly employed by the United States Bureau of Prisons (BOP), pleaded guilty to receiving bribes in exchange for providing contraband to individuals detained at the Metropolitan Detention Center (MDC) in Brooklyn. Today’s proceeding was held before United States District Judge Dora L. Irizarry. When sentenced, Joseph faces up to 15 years in prison. Joseph resigned from the BOP during the pendency of the case.
Breon Peace, United States Attorney for the Eastern District of New York, and Ryan T. Geach, Special Agent-in-Charge, Department of Justice, Office of the Inspector General, Northeast Region, announced the guilty plea.
According to court documents and facts presented at the guilty plea proceeding, Joseph became a correction officer at the MDC in May 2020. During his employment, Joseph accepted tens of thousands of dollars from inmates in exchange for smuggling narcotics, cigarettes, and cell phones into the MDC. In one instance, Joseph entered a unit he was not guarding during a lockdown, opened an inmate’s cell and provided him with contraband. Several hours later, MDC staff smelled marijuana in that inmate’s cell and recovered a contraband cell phone during a search of the cell; Joseph was to be paid $12,000 from this inmate for bringing in contraband. Joseph also accepted bribes to smuggle contraband into the MDC to another inmate, who then sold the contraband widely throughout his unit. Joseph also warned the inmate about upcoming contraband searches at the MDC. For example, on January 26, 2021, Joseph texted an inmate from whom he was taking bribes: “Tighten up search comin clean phones out call logs n text n try to stash it.” The next day, Joseph texted the inmate: “keep your phones cleannnnnnnnnn erase texts and call logs every night.”
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Philip Pilmar and Sara K. Winik are in charge of the prosecution.
The Defendant:
QUANDELLE JOSEPH
Age: 33
Brooklyn, New YorkE.D.N.Y. Docket No. 23-CR-306 (DLI)
Eleven Members and Associates of Marion Gardens Jersey City Gang Indicted for Racketeering for Roles in Three Murders, Drug Trafficking Activities, and Other CrimesRead the Press Release
NEWARK, N.J. – Eleven members of the Jersey City gang associated with the Marion Gardens Housing Complex were indicted today for their roles in a violent racketeering conspiracy and a drug trafficking conspiracy, U.S. Attorney Philip R. Sellinger announced.
The indictment charges Myron Williams, aka “Money,” aka “Tunchi,” 30, of Newark; Khalil Kelley, aka “Billski,” 24, of Jersey City; Herbert Thomas, 48, of Jersey City; Roger Pickett, aka “Zy Gz,” 23, of Jersey City; Andre Alomar, aka “Dre8,” 22, of Newark; Anthony Rogers, aka “MG,” 23, of Jersey City; Naim Richardson, aka “Ninicks,” 30, of Jersey City; Quaseame Wilson, aka “Qua Gz,” 27, of Jersey City; Javon Williams, aka “J45,” 26, of Jersey City; Jawaad Davis, 21, of Jersey City; and Keith Anderson, aka “Beef3,” 21, of Jersey City.
U.S. Attorney Philip R. Sellinger“These charges are the most recent example of this office’s commitment to stopping violent crime in Jersey City and elsewhere in New Jersey. As we continue to demonstrate, we are tirelessly committed to working with our federal, state and local partners to bring to justice those who wreak havoc in our communities by allegedly committing senseless acts of violence. We commend the work of the Hudson County Prosecutor’s Office’s Gang Intelligence Unit and the Bureau of Alcohol, Tobacco, Firearms and Explosives.”
“The Hudson County Prosecutor’s Office is committed to utilizing all resources necessary to curb violent crime within our jurisdiction,” Hudson County Prosecutor Esther Suarez said. “These indictments underscore the importance of working collaboratively with law enforcement at all levels to ensure our communities are safe for everyone. We appreciate our local, state, and federal partners for their efforts in seeing that justice is served in these matters.”
“Acts of gang violence are a grim reminder of why investigating and combatting violent crime is a top priority for ATF and our law enforcement partners,” Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Bryan Miller said. “These charges demonstrate our continued commitment to protecting the public, and that alleged actions like this will not be tolerated. We are dedicated to working with our local and state partners to hold violent offenders accountable and secure the safety of our communities.”
According to documents filed in this case and statements made in court:
Myron Williams, Kelley, Pickett, Alomar, Rogers, Richardson, Wilson, Javon Williams, Davis, and Anderson are all members and associates of the neighborhood street gang associated with the Marion Gardens Housing Complex. Since 2020, they have committed numerous acts of violence, including three separate murders, on March 29, 2021, Nov. 20, 2021, and Nov. 1, 2022.
On March 29, 2021, Kelley, Alomar, and other gang members lured a rival gang member outside by sending him Instagram messages pretending to be the victim’s fellow gang member. When the victim opened the door to his residence, Kelley and Alomar brandished firearms and Kelley shot the victim multiple times in the chest, killing him. Pickett and another gang member then picked up Kelley, Alomar, and the driver of the murder vehicle after they abandoned the murder vehicle in Newark.
On Nov. 20, 2021, Myron Williams, Pickett, and other gang members lured a rival gang member outside by sending him Instagram messages pretending to be the second victim’s fellow gang member. Myron Williams and another gang member shot the victim when he opened the door to his residence.
On Nov. 21, 2022, Davis facilitated the murder of the third victim by coordinating a narcotics transaction with the victim and an associate of the victim. When the victim and his associate arrived at the Marion Gardens Housing Complex to complete the narcotics transaction, Davis robbed the victim’s narcotics supply while Pickett and Wilson held the victim and his associate at gunpoint. After a struggle ensued, Pickett shot and killed the victim while his associate fled. Pickett and Wilson then fled the Marion Gardens Housing Complex in Pickett’s vehicle.
Investigators observed and documented hundreds of narcotics transactions in and around the Marion Gardens Housing Complex during the months-long investigation.
The investigation revealed that Thomas was the primary supplier of narcotics to the Marion Gardens drug trafficking organization. When Thomas, Myron Williams, Richardson, and Rogers, were arrested on March 17, 2023, they all possessed controlled substances packaged for distribution; Thomas also possessed a loaded firearm and both Myron Williams and Richardson possessed ammunition.
In June 2021, eight other members and associates of the Marion Gardens neighborhood street gang were indicted on racketeering charges, violent crimes in aid of racketeering, drug trafficking, and firearms offenses.
U.S. Attorney Sellinger credited investigators of the Gang Intelligence Unit of the Major Case Division of Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez and Chief of Detectives James A. Parker, and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Bryan Miller, with the investigation leading to the charges. He also thanked investigators of the Jersey City Police Department, under the direction of Director James Shea, for their assistance.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Desiree Grace, Deputy Chief of the Criminal Division in Newark.
The charges and allegations contained in the superseding indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Count
Defendant
Offense
Maximum Penalties
1
Myron Williams
Roger Pickett
Khalil Kelley
Quaseame Wilson
Javon Williams
Naim Richardson
Andre Alomar
Jawaad Davis
Anthony Rogers
Keith Anderson
RICO Conspiracy
Life imprisonment;
$250,000 fine
2
Roger Pickett
Quaseame Wilson
Jawaad Davis
Hobbs Act Robbery
20 years’ imprisonment;
$250,000 fine
3
Roger Pickett
Quaseame Wilson
Jawaad Davis
Discharging a Firearm During and in Relation to a Crime of Violence
Life imprisonment;
10-year mandatory minimum;
$250,000 fine
4
Roger Pickett
Quaseame Wilson
Jawaad Davis
Causing Death with Use of a Firearm
Life imprisonment;
$250,000 fine
5
Myron Williams
Roger Pickett
Khalil Kelley
Quaseame Wilson
Javon Williams
Naim Richardson
Andre Alomar
Jawaad Davis
Anthony Rogers
Keith Anderson
Herbert Thomas
Drug Conspiracy
Life imprisonment;
10-year mandatory minimum;
$10 million fine
6
Myron Williams
Unlawful Possession of Ammunition
15 years’ imprisonment;
$250,000 fine
7
Myron Williams
Possession with Intent to Distribute Controlled Substances
20 years’ imprisonment;
$1 million fine
8
Herbert Thomas
Unlawful Possession of a Firearm and Ammunition
15 years’ imprisonment;
$250,000 fine
9
Herbert Thomas
Possession with Intent to Distribute Controlled Substances
20 years’ imprisonment;
$1 million fine
10
Herbert Thomas
Possession of a Firearm in Furtherance of Drug Trafficking
Life imprisonment;
5-year mandatory minimum;
$250,000 fine
11
Naim Richardson
Unlawful Possession of Ammunition
15 years’ imprisonment;
$250,000 fine
12
Naim Richardson
Possession with Intent to Distribute Controlled Substances
20 years’ imprisonment;
$1,000,000 fine
24-014
mariongardens.sincidtment.pdfEl Paso Man Pleads Guilty to Cyberstalking Ex-GirlfriendRead the Press Release
EL PASO, Texas – An El Paso man pleaded guilty in federal court today to one count of cyberstalking.
According to court documents, Rashad Marquise Ray, 24, engaged in a course of conduct in which he sent numerous harassing messages to an out-of-state ex-girlfriend and her immediate family using several social media applications between Jan. 1, 2022 and July 26, 2023. On two occasions, FBI agents interviewed Ray and advised him to stop communicating with the victim. Following an interview with the agents in June 2023, in which he claimed he would voluntarily cease communications efforts with the victim, Ray sent approximately 200 more emails to the victim in less than one month. Ray was arrested Aug. 2, 2023 and has remained in federal custody.
Ray faces up to five years in prison with a maximum fine of $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorney Sarah Valenzuela is prosecuting the case.
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East Glacier man sentenced to 41 months in prison for two separate assaults on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — An East Glacier man who admitted to beating one victim and stabbing another victim in two separate assaults on the Blackfeet Indian Reservation was sentenced on Jan. 10 to a total of 41 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said today.
Frank David Francis Boy, 25, pleaded guilty in 2023 to assault with a dangerous weapon and to assault resulting in serious bodily injury for separate incidents.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that in the first assault, Boy was drinking alcohol with friends in East Glacier on Sept. 18, 2022. The group then went for a drive and ended up in Browning at a house party, where the victim, identified as John Doe lived. Boy and Doe arm-wrestled and then got into a wrestling match, which led to a disagreement. Boy and his companions were told to leave, but Boy refused. Boy’s companions pulled Boy from the residence, and as they were walking away, Boy turned around and began to engage with Doe. Boy walked toward Doe, who was backing up, and stabbed Doe several times in the shoulder and back areas. Doe was flown to a Great Falls hospital for treatment of injuries.
In the second assault, the government alleged that on March 22, 2023, Boy and others were drinking alcohol and driving around when they drove toward East Glacier. The victim, identified as John Doe 2, was reclined in the front passenger seat and fell asleep. Another passenger told Boy that Doe 2 would assault her later and this may have initiated the assault on the victim. Boy stopped the vehicle in the middle of an intersection and began assaulting Doe 2, striking him repeatedly in the face and causing serious injuries. Doe 2 ultimately was flown to a Great Falls hospital for treatment of injuries.
Assistant U.S. Attorney Kalah A. Paisley prosecuted the cases. The Bureau of Indian Affairs, FBI and Blackfeet Law Enforcement Services conducted the investigations.
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Drug Trafficker Sentenced to More than 6 Years in PrisonRead the Press Release
Spokane, Washington - Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced that Jaime Alberto Garza, 52, of Othello, Washington, was sentenced after pleading guilty to Possession with Intent to Distribute 40 Grams or More of a Mixture or Substance Containing a Detectable Amount of Fentanyl. United States District Judge Thomas O. Rice imposed a sentence of 78 months in prison to be followed by 5 years of supervised release.
According to court documents and information provided at sentencing, in October of 2022, the Adams County Sheriff’s Office received information that Garza was distributing large amounts of fentanyl and methamphetamine in the community of Othello. A short time later, a search warrant was executed at Garza’s trailer. Law enforcement sized approximately 5,000 fentanyl pills, several ounces of methamphetamine, digital scales, 2 firearms, and a volume of ammunition.
Law enforcement arrested Garza during a high-risk vehicle stop and executed a search warrant on his jeep. Investigators located a loaded Colt .45 firearm that was determined to be stolen, .45 caliber ammunition, 50 fentanyl-laced pills, two plastic bags containing methamphetamine, and a bag of marijuana. Garza has a significant criminal history which included prior acts violence and drug trafficking offenses.
“Mr. Garza was trafficking a large amount of deadly fentanyl and other illegal narcotics in this small community. By partnering with state law enforcement, we were able to apprehend a dangerous and habitual offender, successfully pursue federal charges, and help make that community safer and stronger today,” stated U.S. Attorney Waldref. “My office is committed to working with federal, state and local law enforcement to put a stop to anyone who pumps this poison into Eastern Washington.”
“The Drug Enforcement Administration is committed to confronting fentanyl traffickers wherever they may try to sell their misery and death,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “Mr. Garza chose to prey on his small community and this sentence holds him accountable for these actions. We appreciate our partnership with the Adams County Sheriff’s Office and the U.S. Attorney as we work together to make our community safer.”
This case was investigated by The Drug Enforcement Administration and the Adams County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Stephanie Van Marter.
District Woman Sentenced to 20 Years in Prison for Sexual Abuse of a Minor and Distribution of Child PornographyRead the Press Release
WASHINGTON – Tanisha Sadulski, 41, was sentenced in federal court on January 9 to 20 years in prison for the sexual exploitation of children and sentenced to five years for the sexual abuse of children. The announcement was made by U.S. Attorney Matthew Graves, Acting Special Agent in Charge David Geist of the FBI’s Washington Field Office Criminal and Cyber Division.
U.S. District Court Judge John D. Bates also sentenced Sadulski to a lifetime of supervised release plus an additional ten years, to run concurrently, for the child sexual abuse charges.
According to the government’s evidence, between October 25, 2021, and April 28, 2022, Sadulski repeatedly uploaded graphic images and videos depicting the sexual abuse of infants and toddlers to her Google account. Sadulski also took pictures of a child when the victim was undressed. Additionally, she filmed herself sexually assaulting a toddler. Sadulski communicated with other sex offenders via the internet with the intent to send and receive child pornography.
She uploaded child sexual abuse material, including videos which documented the sexual abuse and exploitation of young children.
Sadulski pleaded guilty on September 13, 2023, in the U.S. District Court for the District of Columbia.
In announcing the sentence, U.S. Attorney Graves and Acting Special Agent in Charge Geist commended the work of those who investigated the case from FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. This case is being prosecuted by Assistant U.S. Attorney Jocelyn Bond of the Federal Major Crimes Section of the U.S. Attorney’s Office.
Craven County Bloods Gang Member Sentenced to More than 24 Years for Fentanyl and Firearms PossessionRead the Press Release
NEW BERN , N.C. – A Havelock man was sentenced today to 295 months in prison for possession of fentanyl with intent to distribute and possession of firearms in furtherance of a drug trafficking crime. On October 18, 2023, Xzavier Tylon Morris pled guilty to the charges.
According to court documents and other information presented in court, Morris, 27, was stopped by deputies with the Craven County Sheriff’s Office (CCSO) on February 1, 2022, to serve him with outstanding warrants for breaking and entering. During the traffic stop, deputies observed Morris and his passenger throw a bag out the window of their vehicle. The bag was recovered, and its contents were determined to be fentanyl. Morris was arrested for trafficking fentanyl and placed in the Craven County Detention Center.
CCSO detectives began to monitor Morris’ outgoing jail calls and discovered that he was directing co-defendants Kimberly Smith and Kayakenee Oliver to move a safe containing drugs to Oliver’s residence in Havelock. In these recorded calls, Morris, Smith, and Oliver conspired to package the drugs for re-sale to a third party in order to try to raise bond money for Morris.
CCSO detectives were able to secure a search warrant for Oliver’s residence and executed it just after midnight on February 3, 2022. During the search, detectives located a safe containing 139 grams of cocaine, 62 grams of fentanyl, 617 grams of methamphetamine, two 9mm pistols, and a digital scale.
Morris, a validated 9-3 Bloods gang member, was later interviewed and admitted that the guns and firearms in the safe belonged to him and that he had been instructing Oliver and Smith how to package the drugs for sale.
Michael Easley, Jr., U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Craven County Sheriff’s Office and Bureau of Alcohol, Tobacco, and Firearms investigated the case and Assistant U.S. Attorney Caroline Webb prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:22-CR-61-FL-1.
Convicted Ocala Felon Makes Interstate Threat to Kill and Lies in an Attempt to Purchase A FirearmRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Michael Guy Dambrosia (61, Ocala) with interstate transmission of a threat to injure and making a false statement in connection with the attempted purchase of a firearm. If convicted on both counts, Dambrosia faces a maximum penalty of 10 years in federal prison.
According to the indictment, on August 30, 2021, Dambrosia attempted to purchase a firearm from a local federally licensed firearms dealer. In completing the necessary paperwork to purchase the firearm, Dambrosia indicated that he was not a convicted felon even though he knew this to be false. Later, on January 30, 2023, Dambrosia made an interstate telephone call to the victim and left an obscenity-laden, threatening voicemail stating several times that he would kill the victim.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Capitol Police - Threat Assessment Section. It will be prosecuted by Special Assistant United States Attorney Joe Wheeler, III and Assistant United States Attorney Tyrie Boyer.
Colorado Woman Sentenced to more than 11 Years’ Imprisonment for Methamphetamine ChargeRead the Press Release
Acting United States Attorney Susan Lehr announced that Melanie Margaret McDonald, 38, of Denver, Colorado, was sentenced January 11, 2024, in federal court in Omaha, Nebraska for conspiracy to distribute methamphetamine. United States District Court Judge Brian C. Buescher sentenced McDonald to 135 months’ imprisonment. There is no parole in the federal system. After McDonald’s release from prison, she will begin a 5-year term of supervised release.
On August 26, 2021, an Omaha traffic stop of two men resulted in the discovery of five pounds of meth and two firearms. Both men were arrested, indicted, and have since cooperated with law enforcement. Both men identified McDonald as one of the men's sources for pound quantities of methamphetamine dating back to October of 2020.
The investigation revealed Facebook messages where McDonald discussed the arrest of her co-conspirators, and all of their involvement in the drug conspiracy.
This case was investigated by the Omaha Police Department and the Drug Enforcement Administration.
Chicago Rapper "G Herbo" Sentenced for Role in Nationwide Fraud Conspiracy and Making False StatementsRead the Press Release
BOSTON – A Chicago-area rap artist was sentenced today in federal court in Springfield, Mass. for participating in a nationwide wire fraud conspiracy that victimized businesses across the United States and for making a false statement to a federal agent to conceal his involvement.
Herbert Wright, 25, a/k/a “G Herbo,” was sentenced by U.S. District Court Judge Mark G. Mastroianni to three years’ probation. Wright was also ordered to pay restitution and forfeiture of $139,968 each, as well as a $5,500 fine.
In July 2023, Wright pleaded guilty to one count of conspiracy to commit wire fraud and one count of making a false statement to a federal official.
Wright was initially indicted by a federal grand jury in December 2020 along with five co-defendants, including rap promoter Antonio Strong, in connection with the alleged fraud conspiracy. Wright was subsequently charged with making false statements in May 2021.
“On social media, Mr. Wright boasted an extravagant lifestyle. He gave the impression that his use of private jets, luxury cars and tropical villas were the legitimate fruits of his booming rap career as “G Herbo.” However, his lavish lifestyle was shamelessly built on deceit and fraud using stolen account information that inflicted substantial harm on numerous businesses, leaving a wake of victims burdened with financial losses.” said Acting United States Attorney Joshua S. Levy. “This case should serve as a stark reminder that breaking the law leads to prosecution and accountability, regardless of who you are, how many likes you rack up or how many followers you have.”
Beginning in at least March 2017 through November 2018, Wright and, allegedly, his co-defendants, conspired to defraud numerous businesses and individuals throughout the United States by using unauthorized and stolen payment card account information of real individuals – including the actual cardholders’ names, addresses, security codes and account expiration dates. Generally, because the payment card information was authentic, the defrauded businesses and individuals successfully processed the fraudulent transactions and provided the goods and services to Wright and his alleged co-conspirators. The actual cardholders discovered these transactions on their accounts and disputed the charges with their card companies, who then charged back the transactions to the businesses and individuals, which consequently suffered losses in the amounts of the unauthorized transactions.
According to court documents, Wright frequently asked Strong for a number of luxury goods or services, such as flights, vehicles (“whips”), or accommodation (“cribs”), which Strong allegedly often procured by fraud using the stolen payment card account information. This included: four private jet charters for a total cost of over $80,000; over $34,000 in exotic car rentals including a Mercedes Benz 5560 and a Cadillac Escalade; and over $14,500 for a villa rental in Jamaica for which Wright also requested that Strong provide vehicles and an additional credit card account for his incidentals.
Wright also used fraud proceeds to travel to various concert venues and to advance his career by posting photographs and/or videos of himself on the private jets, in exotic cars and at the Jamaican villa on social media and in music videos.
Additionally, according to court documents in November 2018, Wright falsely told a federal agent that he never worked with or was assisted by Strong; he never provided Strong any money; he never received anything of value from Strong; and he had no direct relationship with Strong. In fact, since at least 2016 it is alleged that Strong worked with and assisted Wright; Wright allegedly provided Strong money; Wright allegedly received valuable goods from Strong, including private jet charters, luxury accommodations and exotic car rentals; and Wright allegedly had frequent direct contact with Strong, including phone conversations, text messages and Instagram messages.
Wright admitted, as part his guilty plea, that he was responsible for $139,878 in victim losses. Strong has pleaded not guilty.
Acting U.S. Attorney Levy and Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement. Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office and Trial Attorneys Andrew Tyler and Kyle Crawford of the Justice Department’s Criminal Division’s Fraud Section prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Charleston Man Sentenced to Prison for Defrauding Nonprofit CharityRead the Press Release
CHARLESTON, W.Va. – Benjamin Cisco, 31, of Charleston, was sentenced today to three years and five months in prison, to be followed by three years of supervised release, and ordered to pay $871,288.34 in restitution for two counts of wire fraud. Cisco admitted to defrauding a disaster relief charity of $871,288.34 intended for suffering West Virginians.
According to court documents and statements made in court, from about March 19, 2020, through about September 28, 2022, Cisco devised and executed his scheme to defraud the charitable nonprofit organization while employed as its finance and operations manager in Belle and Charleston. Through his position, Cisco had control over the victim charity’s finances and access to its debit cards and regularly worked with its accountant. Cisco’s duties included preparing the victim charity’s biweekly payroll, depositing payments into its bank accounts, and providing its board of directors with updates regarding its finances.
Cisco admitted that his fraud scheme followed a two-step process. First, Cisco electronically transferred money from the victim charity’s debit cards to its account with the Flipcause crowd-funding platform, which recorded those transfers as donations. Second, Cisco electronically transferred money from the victim charity’s Flipcause account to his personal bank account, which he had falsely labeled as belonging to the victim charity.
Cisco admitted to executing the fraudulent two-step process more than 100 times. These fraudulent transactions included electronic transfers from the victim charity’s Flipcause account to his personal bank account in the amounts of $4,724 on January 28, 2022, and $2,874 on May 6, 2022. Both transfers traveled in interstate commerce between Charleston, West Virginia, and California.
Well-meaning individuals, seeking to assist the disaster relief charity, used the Flipcause portal to donate $3,861.94 to the victim charity. Cisco pocketed nearly all of those donated funds. The Court found that Cisco misrepresented acting on behalf of a charity during his scheme, citing that as a factor in today’s sentence.
Cisco’s fraudulent scheme specifically caused at least $518,101.70 of loss to the victim charity. Cisco also admitted to defrauding the victim charity of an additional $285,626.64 in travel reimbursements he was not authorized to receive and $67,560 by purchasing gift cards with victim charity funds without authorization. The loss totaled $871,288.34.
Cisco’s criminal conduct besmirched the reputation of the disaster relief charity, threatening to erode public trust and discourage potential donors. The discovery of Cisco’s scheme prompted the victim charity to put its operations on hold, pausing the replacement of eight bridges destroyed by flooding in southern West Virginia that provided families access to their homes.
“After spending six years with the victim charity, Mr. Cisco knew the real-life consequences of disaster but still chose to misspend the victim charity’s money on personal expenses, household items, Lowe’s gift cards, and luxurious vacations to Disney World,” said United States Attorney Will Thompson. “Mr. Cisco’s actions personified greed and the Court acknowledged that by giving him a sentence at the upper limit of the sentencing guidelines.”
Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI).
“Today Mr. Cisco faced the consequences of his illegal actions,” said FBI Pittsburgh Acting Special Agent in Charge Mike Shanahan. “Mr. Cisco diverted hundreds of thousands of dollars meant to help struggling West Virginians impacted by disaster for his own personal gain. Today's sentence sends the message that he can't escape accountability for his actions.”
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorneys Holly Wilson, and Erik S. Goes, and Kathleen Robeson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-25.
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Chaparral Man Sentenced to 90 months in Prison for Hostage TakingRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, John Morales, Special Agent in Charge of the Federal Bureau of Investigation’s El Paso Field Office, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced that Ricardo Arce, III was sentenced to 90 months in prison. Arce, 44, of Chaparral, New Mexico, pled guilty in federal court on Sept. 22, 2021, to conspiracy to take a hostage and two counts of hostage taking.
In his plea agreement, Arce admitted to conspiring with his co-defendants, Jonathan Matthew Gonzalez and Vicki Sowell, to take two foreign nationals’ hostage. Gonzalez transported the hostages to Arce’s residence in Chaparral, took their phones and wallets, and told them they were not allowed to leave unless their families paid money to secure their release. While held against their will, Gonzalez assaulted both of the hostages. Arce recorded videos of Gonzalez assaulting one of the hostages while Sowell turned up music to cover the sounds of the beating. Gonzalez sent the videos to the hostage’s family along with a demand for money. Gonzalez threatened to kill the hostages if they did not pay the ransom.
Family and friends of the hostages paid nearly $20,000 in an attempt to secure their release. Gonzales paid Arce and Sowell to house and watch the hostages.
Upon his release from prison, Arce will be subject to 5 years of supervised release.
Gonzalez pled guilty to conspiracy to take a hostage and two counts of hostage taking on March 18, 2022, and was sentenced to 15 years in prison. Sowell was convicted of conspiracy to take a hostage and two counts of hostage taking and sentenced to 32 months in prison.
The FBI El Paso Field Office investigated this case with assistance from the FBI Las Cruces Resident Agency, El Paso Police Department, Las Cruces Police Department, Otero County Sheriff's Office, Doña Ana County Sheriff's Office, U.S. Border Patrol El Paso Sector and Border Patrol El Paso Sector Special Operations Detachment BORTAC. Assistant U.S. Attorney Matthew Ramirez is prosecuting the case.
View the Indictment View the Plea Agreement# # #
24-16
Canal Winchester man convicted at trial of drug, gun, fraud crimesRead the Press Release
COLUMBUS, Ohio – A federal jury has convicted Thomas O. Crowell, 35, of Canal Winchester, with narcotics, firearms and fraud crimes.
The verdict was announced today following a trial that began on Jan. 8 before U.S. District Judge Michael H. Watson.
According to court documents and trial testimony, Crowell, who is also known as “T-Mack,” possessed with the intent to distribute fentanyl, cocaine and marijuana in June 2021. He illegally possessed firearms at the time, namely, a rifle and a Glock. Crowell is a previously convicted felon and prohibited from possessing firearms and ammunition.
Crowell was also convicted of wire fraud for fraudulently obtaining COVID-relief Paycheck Protection Program (PPP) funding by falsely claiming to own a trucking business called “Thomas Crowell.” In April 2021, Crowell applied for the PPP loan and received nearly $20,000.
Possessing with intent to distribute 40 grams or more of fentanyl, cocaine and marijuana carries a potential punishment of at least five years and up to life in prison. Illegally possessing a firearm as a convicted felon is punishable by up to 10 years in prison, and wire fraud is punishable by up to 20 years in prison.
Congress sets the minimum and maximum statutory sentences. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Columbus Police Chief Elaine Bryant; and Hilliard Police Chief Michael Woods announced today’s verdict. Assistant United States Attorneys Nicole Pakiz and Damoun Delaviz are representing the United States in this case.
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California Man Caught at Tampa International Airport Pleads Guilty to Transporting 60 Kilograms of MethamphetamineRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that Hernan Cruz-Moreno (24, Earlimart, California) has pleaded guilty to conspiracy to distribute and to possess with the intent to distribute methamphetamine. Cruz-Moreno faces a minimum mandatory penalty of 10 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on May 2, 2023, Cruz-Moreno and Agustin Ortiz-Sanchez (22, Thermal, CA) flew from Los Angeles, California to Tampa International Airport with four suitcases containing a total of 60 kilograms of methamphetamine. Special agents from Homeland Security Investigations (HSI) and officers from the Tampa International Airport Police Department examined the luggage in a secure area of the airport, and a narcotics detection dog indicated there were drugs in the bags. Cruz-Moreno and Sanchez-Ortiz later retrieved the bags and were arrested by officers conducting surveillance. Cruz-Moreno admitted that he had been paid $2,000 by another individual to transport the luggage and stated at the time that he didn’t know what was in the bags, but he knew it was something illegal.
In November 2023, Ortiz-Sanchez pleaded guilty to same offense. His sentencing hearing is scheduled for February 27, 2024.
This case was investigated by Homeland Security Investigations (HSI) with assistance from the Tampa International Airport Police Department. It is being prosecuted by Assistant United States Attorney E. Jackson Boggs Jr.
Brooklyn Woman Charged with Trafficking 18 Firearms into BrooklynRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, a five-count indictment was unsealed charging Ariana Charles with conspiring to illegally traffic 18 firearms to Brooklyn. The defendant is charged under the gun trafficking provisions of the Bipartisan Safer Communities Act, which Congress and the President enacted in June 2022. The Act is the first federal statute specifically designed to target gun trafficking. Charles is also charged with three narcotics-related charges, including distribution of fentanyl and cocaine base, and a conspiracy to do the same. The defendant was arrested this morning and is scheduled to be arraigned this afternoon before United States Magistrate Judge Joseph A. Marutollo.
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), and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the charges.
“As alleged, the defendant brazenly trafficked firearms and deadly drugs to the streets of Brooklyn, feeding the cycle of gun violence and drug abuse endangering our community,” stated United States Attorney Peace. “This Office will not relent in its efforts to keep the community safe by investigating and prosecuting those who seek to profit from the proliferation of guns and fentanyl which have destroyed so many lives.”
“DEA and our law enforcement partners work to stop the invasion of guns, drugs and violence that invade our neighborhoods causing unimaginable casualties along the way,” stated DEA Special Agent-in-Charge Taremtino. “This indictment reinforces our commitment to saving lives through comprehensive investigations at the behest of public safety and health. I commend the DEA New York Division, New York City Police Department and the U.S. Attorney’s Office Eastern District of New York for their work throughout this investigation.”
“Today’s indictment underscores the destructive threat that illegal guns and drugs continue to pose on the streets of New York City, as well as our unwavering commitment to delivering public safety and improving quality of life in every community,” stated NYPD Commissioner Caban. “Together with our partners at the DEA and the office of the U.S. Attorney for the Eastern District of New York, NYPD investigators remain dedicated to this critical mission.”
According to the indictment and court documents, Charles personally conducted firearms sales to an undercover member of law enforcement (the UC) in and around New York City Housing Authority’s Breukelen Houses which is located in Canarsie, Brooklyn. Transactions also took place outside apartment buildings and in shopping center parking lots in broad daylight. Several guns were purchased in Virginia and Georgia and transported to New York. The UC told Charles and her co-conspirators that he was a drug dealer who needed guns and that he was going to resell some of the guns and drugs that were provided to him. For example, messages between the UC and Charles show that the UC told Charles that he intended to “flip” the firearms Charles sold him so that he could resell them to others. One firearm sold had a defaced serial number, making it hard for law enforcement to trace. Charles also sold semi-automatic rifles.
In addition to firearm sales, Charles sold drugs, including crack cocaine and fentanyl. The fentanyl allegedly sold by the defendant was disguised as Oxycodone pills.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges, Charles faces up to 20 years in prison.
Assistant United States Attorneys Adam Amir, Irisa Chen, and James Simmons are in charge of the prosecution.
The Defendants:
ARIANA CHARLES
Age: 28
Brooklyn, New YorkE.D.N.Y. Docket No. 24-CR-8
Brevard County Man Indicted for Possessing Cocaine with Intent to DistributeRead the Press Release
Orlando, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Jackie Jamal Hines (46, Melbourne) with possession with the intent to distribute 5 kilograms or more of cocaine. If convicted, Hines faces a minimum mandatory penalty of 10 years, up to life, in federal prison. The indictment also notifies Hines that the United States intends to forfeit any assets which are alleged to be traceable to proceeds of the offense.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Drug Enforcement Administration and the Melbourne Police Department. It will be prosecuted by Assistant United States Attorney Megan Testerman.
Bemidji Man Charged with Sexual Assault on Red Lake ReservationRead the Press Release
ST. PAUL, Minn. – A Bemidji man has been charged with sexual assault on the Red Lake Reservation, announced United States Attorney Andrew M. Luger.
According to court documents, Brent Lee Sigana, Jr., 25, knowingly engaged in a sexual act with a victim who at the time was physically incapable of declining participation in the act or communicating unwillingness to engage in the act.
The indictment charges Sigana with one count of sexual abuse of a person incapable of consenting. Federal courts have recognized that this law includes sex acts with individuals who are “physically incapable” of declining or communicating unwillingness due to being asleep or as a result of intoxication. Sigana made his initial appearance in U.S. District Court on January 5, 2024, before Magistrate Judge Jon T. Huseby.
Investigators believe there may be other victims relevant to this investigation. If you have any information about other potential victims, please contact the FBI’s Tip Line at 1-800-CALL-FBI (1-800-225-5324) or tips.fbi.gov.
This case is the result of an investigation conducted by the FBI and the Red Lake Tribal Police Department.
Assistant U.S. Attorney Lindsey E. Middlecamp is prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bay Area Men Plead Guilty to Bribing a Vallejo City OfficialRead the Press Release
SACRAMENTO, Calif. — Steven Chu, 41, of San Bruno, and Ben Guan, 36, of San Francisco, pleaded guilty today to conspiracy to commit federal program bribery, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Chu and Guan ran an illegal marijuana cultivation operation in Vallejo. In July 2020, Chu and Guan were notified that the building in which they maintained the operation was in violation of multiple laws, including city codes related to illegal drug activity, and that the city would take legal or administrative action if the violations were not corrected. Subsequently, Chu and Guan offered to pay and then paid a Vallejo building inspector to clear the violations and ensure the city would not interfere with their operation. Chu and Guan paid the building inspector on at least six occasions. The payments totaled approximately $27,000. Unbeknownst to Chu and Guan, the building inspector was working with law enforcement to record meetings with them.
This case is a product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge Daniel J. Calabretta is scheduled to sentence Chu and Guan on May 2, 2024. They face a sentence of up to five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the court’s discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Ardmore Resident Sentenced for Abusive Sexual Contact of A ChildRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Dustin Wayne Hayes, age 41, of Ardmore, Oklahoma, was sentenced for sexually abusing four children under the age of 12. Hayes was sentenced to 20 years in prison for one count of Abusive Sexual Contact in Indian Country, in violation of 18 U.S.C. §§ 2244(a)(5), 2246(3), 1151, and 1152. Following his term of imprisonment, Hayes will be placed on a life-time term of supervised release and required to register as a sex offender.
The charges arose from investigations by the Federal Bureau of Investigation’s Oklahoma City and Ardmore Field Offices, the Ardmore Police Department, Sara’s Project, and the Carter County District Attorney’s Office.
On November 22, 2022, Hayes pleaded guilty to knowingly engaging and causing sexual contact with a child under the age of 12. According to court documents, Hayes repeatedly sexually abused four young children beginning as early as 2009 and continuing through 2014. The child victims, who were as young as five and six years old when the abuse began, came forward and provided critical evidence and information to law enforcement regarding the sexual abuse.
The crime occurred in Carter County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Hayes will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Special Assistant United States Attorneys Jenna Rudoff (Dallas, TX) and Callie Woolam (Lubbock, TX) represented the United States.
10 January 2024
Waterloo Methamphetamine Dealer Sentenced to 30 Years in Federal PrisonRead the Press Release
A Waterloo man who distributed significant quantities of methamphetamine was sentenced on January 5, 2024, to 30 years in federal prison.
Jeffery Turner, age 48, from Waterloo, Iowa, received the prison term after a June 28, 2023 jury verdict finding him guilty of one count of conspiracy to distribute methamphetamine and two counts of distribution of methamphetamine.
Evidence at trial showed that, between 2020 and 2022, Turner obtained approximately twenty pounds of methamphetamine from three different sources — a source in Waterloo, who in turn was obtaining methamphetamine from a Mexican source; a source in Cedar Rapids, Iowa; and a source in California. On two occasions in 2022, law enforcement conduced controlled purchases of methamphetamine from Turner.
Turner was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Turner was sentenced to 360 months’ imprisonment, and he must also serve a five‑year term of supervised release after the prison term. There is no parole in the federal system.
Turner is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Adam J. Vander Stoep, Patrick J. Reinert, and Dillan Edwards and investigated by Tri-County Drug Enforcement Task Force consisting of the Waterloo Police Department, Cedar Falls Police Department, Black Hawk County Sheriff’s Department, Evansdale Police Department, Waverly Police Department, Hudson Police Department, La Porte City Police Department, and the Bremer County Sheriff’s Department; the Iowa Division of Narcotics Enforcement; and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22‑CR‑02059‑CJW.
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Waterbury Man Sentenced to 4 Years in Federal Prison for Theft of Pandemic Unemployment BenefitsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that OLAJUWON HARRINGTON, also known as “OJ Harrington,” 31, of Waterbury, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 48 months of imprisonment, followed by two years of supervised release, for his theft of pandemic unemployment benefits.
According to court documents and statements made in court, in March 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The CARES Act created a new temporary federal unemployment insurance program for pandemic unemployment assistance (“Pandemic Unemployment Assistance”). Pandemic Unemployment Assistance provided unemployment insurance (“UI”) benefits for employed individuals who are not eligible for other types of UI due to their employment status. The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Compensation (“FPUC”) that provided additional weekly benefits to those eligible for Pandemic Unemployment Assistance or regular UI. The Connecticut Department of Labor (CT-DOL) administers UI benefits for residents of Connecticut.
Numerous fraudulent applications for Pandemic Unemployment Assistance, which used identifying information of real persons (“victims”) without their knowledge, were submitted to CT-DOL. Relying on the applications, CT-DOL awarded unemployment assistance in the form of debit cards in the names of approximately 43 victims and mailed the debit cards to addresses provided in the applications. Over an approximately 20-month period, Harrington obtained those debit cards issued in victims’ names and unlawfully used the cards for his own benefit.
Judge Williams ordered Harrington to pay restitution of $793,254.
Harrington was arrested on a criminal complaint on November 30, 2022. On May 10, 2023, he pleaded guilty to access device fraud.
This investigation was conducted by the U.S. Department of Labor – Office of Inspector General; the U.S. Department of Homeland Security – Office of Inspector General; the U.S. Postal Inspection Service; Social Security Administration – Office of Inspector General; and the Connecticut Department of Labor. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Individuals with information about allegations of attempted fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Washington Parish Man Pleads Guilty to Federal Narcotics and Firearm ChargesRead the Press Release
NEW ORLEANS, LOUISIANA –TYLAR REDDITT, age 22, a resident of Bogalusa, Louisiana, pled guilty on January 9, 2024, to a two-count indictment charging him with violations of the Federal Gun Control and the Federal Controlled Substances Acts, announced U.S. Attorney Duane A. Evans.
According to court records, REDDITT conspired to distribute heroin and to use and possess firearms in furtherance of his drug trafficking activities. Both counts carry a sentence of up to twenty (20) years in prison, up to three (3) years of supervised release, and a mandatory $100 special assessment fee. Additionally, the drug violation carries a possible fine of up to $1,000,000 and the gun violation carries a possible fine of up to $250,000.00.
According to public records, agents were able to obtain numerous social media photographs of REDDITT posing with firearms, drugs and cash. REDDITT also participated in a non-fatal retaliatory shooting on July 27, 2022, shortly after Javorious Scott, a local rapper, was murdered in Bogalusa.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Washington Parish Sheriff’s Office, and the Bogalusa Police Department. The prosecution is being handled by Assistant United States Attorney Maurice E. Landrieu, Jr of the Narcotics Unit.
United States and California Announce Diesel Engine Manufacturer Cummins Inc. Agrees to Pay a Record $1.675 Billion Civil Penalty in Vehicle Test Cheating SettlementRead the Press Release
The Justice Department, Environmental Protection Agency (EPA), California Air Resources Board (CARB) and California Attorney General’s Office today released the details of a proposed settlement with diesel engine maker Cummins Inc. for alleged violations of the Clean Air Act and California law. Beyond agreeing to pay a $1.675 billion civil penalty – the largest ever assessed in a Clean Air Act case – Cummins has agreed to spend more than $325 million to remedy the violations, which included the use of software “defeat devices” that circumvented emissions testing and certification requirements.
Under the settlement, Cummins must complete a nationwide vehicle recall to repair and replace the engine control software in more than 600,000 RAM 2500 and RAM 3500 pickup trucks equipped with the company’s diesel engines. Cummins will also extend the warranty period for certain parts in the repaired vehicles, fund and perform projects to mitigate excess ozone-creating nitrogen oxides (NOx) emitted from the vehicles and employ new internal procedures designed to prevent future emissions cheating. In total, the settlement is valued at more than $2 billion.
NOx pollution contributes to the formation of harmful smog and fine particulate matter in air. Children, older adults, people who are active outdoors and people with heart or lung diseases are particularly at risk for health effects related to smog or particulate matter exposure. Nitrogen dioxide formed by NOx emissions can aggravate respiratory diseases, particularly asthma, and may also contribute to asthma development in children.
“The Justice Department is committed to vigorously enforcing environmental laws that protect the American people from harmful pollutants,” said Attorney General Merrick B. Garland. “The types of devices we allege that Cummins installed in its engines to cheat federal environmental laws have a significant and harmful impact on people’s health and safety. This historic agreement makes clear that the Justice Department will be aggressive in its efforts to hold accountable those who seek to profit at the expense of people’s health and safety.”
“Today’s agreement, which includes the largest-ever Clean Air Act civil penalty, stands as notice to manufacturers that they must comply with our nation’s laws, which protect human health and the health of our environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We appreciate the work of our partners, the EPA and the State of California, in helping us reach this significant settlement.”
“Today’s landmark settlement is another example of the Biden-Harris administration working to ensure communities across the United States, especially those that have long been overburdened by pollution, are breathing cleaner air,” said EPA Administrator Michael Regan. “Today we‘ve reaffirmed that EPA’s enforcement program will hold companies accountable for cheating to evade laws that protect public health.”
“Cummins installed illegal defeat devices on more than 600,000 RAM pickup trucks, which exposed overburdened communities across America to harmful air pollution,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “This record-breaking Clean Air Act penalty demonstrates that EPA is committed to holding polluters accountable and ensuring that companies pay a steep price when they break the law.”
“Cummins knowingly harmed people’s health and our environment when they skirted state emissions tests and requirements,” said California Attorney General Rob Bonta. “Today’s settlement sends a clear message: If you break the law, we will hold you accountable. I want to thank our federal and state partners for their collective work on this settlement that will safeguard public health and protect consumers across the country.”
“The collaboration between California and its federal partners makes it clear that companies will be held accountable for violating essential environmental laws that are in place to provide the clean air that communities across California and the nation want and deserve,” said CARB Executive Officer Dr. Steven Cliff. “California’s air quality regulations protect public health and are backed by a world-class emissions testing laboratory that ensures CARB’s enforcement efforts are rigorously supported with data and science, which CARB was pleased to contribute to this landmark case.”
Background
As in prior cases against other manufacturers, EPA discovered defeat devices in Cummins engines used in RAM pickup trucks through testing at the agency’s National Vehicle and Fuel Emissions Laboratory. That testing of RAM trucks was done as follow-up on a 2015 EPA warning to manufacturers that the agency planned to conduct special testing to identify defeat devices using driving cycles and conditions that were non-standard, but still reflected normal vehicle operation and use.
The terms of the proposed settlement with Cummins are spelled out in two consent decrees that the United States and California filed today with the U.S. District Court for the District of Columbia. In a related set of complaints filed today, the United States and California allege that nearly a million model year 2013-2023 RAM 2500 and RAM 3500 pickup trucks with Cummins diesel engines utilized undisclosed engine control software features, and more than 630,000 of those trucks made in model years 2013-2019 had illegal emissions control software defeat device features. Those software defeat devices helped the trucks pass standard EPA emissions tests, but they artificially reduced the effectiveness of the emission controls – and increased NOx emissions – during normal driving outside of the standard test conditions.
Recall and Repair Program
Cummins sought all EPA and CARB emission certifications for the RAM trucks equipped with its engines, even though the trucks were sold by the RAM truck division of Fiat Chrysler and its dealers. The settlement requires Cummins to work with Fiat Chrysler and its dealers on a vehicle recall and repair program that will remove all defeat devices from the affected 2013-2019 RAM trucks free of charge and bring the vehicles into compliance with applicable emissions standards under the Clean Air Act. The repair only involves software updates. Cummins has already started the recall and repair program required by the settlement.
Cummins must repair at least 85% of the 2013-2019 RAM trucks equipped with defeat devices within three years. The company must offer a special extended warranty covering emission control system parts on 2013-2019 RAM trucks that receive the replacement software. Cummins also must test some of the repaired trucks over a number of years to ensure that the trucks continue to meet emissions standards over time.
Mitigation Programs
As another requirement of the settlement, Cummins must fully offset the excess NOx emissions from the 2013-2019 RAM trucks that were equipped with defeat devices. For California, Cummins will make a lump sum payment to CARB of slightly more than $175 million to fund mitigation actions or projects that reduce NOx emissions in California through CARB mitigation programs. For the rest of the country, Cummins will secure offsetting NOx reductions by working with railroad locomotive owners on two types of locomotive emission reduction projects. First, Cummins will finance and ensure the replacement of 27 old, high-emitting diesel locomotive engines with new, low-emitting diesel or electric engines. Second, Cummins will fund and complete 50 projects that will reduce idling time for diesel-powered switch locomotives to reduce fuel usage and emissions of NOx, particulate matter, volatile organic compounds and carbon dioxide.
Public Information and Public Comment
This EPA website offers additional information concerning the settlement:
https://www.epa.gov/enforcement/2024-cummins-inc-vehicle-emission-control-violations-settlement
The complaints and the proposed consent decrees in the related cases filed by the Justice Department’s Environment Enforcement Section and the State of California can be viewed on the Justice Department’s website at www.justice.gov/enrd/consent-decrees. The proposed consent decree in the case filed by the United States is subject to a 30-day public comment period.