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Monday 20 November 2023
Former co-owners of Matanuska Diesel charged with Clean Air Act violationsRead the Press Release
ANCHORAGE, Alaska – A federal grand jury in Alaska returned an indictment charging two Wasilla men and their auto shop with conspiring to violate the Clean Air Act.
According to court documents, Mackenzie Spurlock, 28, and Brendan Trevors, 26, through their business Matanuska Diesel LLC, conspired to remove required air pollution control equipment and tamper with federally mandated monitoring devices on diesel vehicles in violation of the Clean Air Act from July 2020 to June 2022.
The indictment explains that Spurlock and Trevors performed illegal “deleting” and “tuning” as part of the conspiracy. The act of removing emission control systems is known as “deleting” and the act of reprogramming the on-board diagnostic systems is known as “tuning.” These unlawful modifications result in a significant increase in pollutants emitted by the vehicle.
Spurlock, Trevors and Matanuska Diesel LLC are charged with one count of conspiracy to violate the Clean Air Act, in violation of 18 U.S.C. § 371, and nine counts of tampering with a Clean Air Act monitoring device, in violation of 42 U.S.C. § 7413(c)(2)(C). The defendants will make their initial court appearance before U.S. Magistrate Judge Kyle F. Reardon of the U.S. District Court for the District of Alaska. If convicted, they face a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The EPA Criminal Investigation Alaska Division are investigating the case.
Assistant U.S. Attorney Jennifer Ivers and EPA Regional Criminal Enforcement Counsel Karla Perrin are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
UPDATE: A previous version of the story stated the grand jury returned the indictment "today" on Nov. 20, 2023. That is inaccurate and the word "today" has been deleted.
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Former San Mateo Resident Pleads Guilty to Embezzling More Than $1.1 Million from San Francisco Law FirmRead the Press Release
SAN FRANCISCO – Jairo Tomas Santos pleaded guilty in San Francisco federal court today to bank fraud, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The plea was accepted by the Honorable William Alsup, U.S. District Judge.
In pleading guilty, Santos, 42, formerly of San Mateo, Calif., admitted to embezzling more than $1.1 million from his employer, a San Francisco-based law firm, where Santos worked as the office manager. According to his plea agreement, Santos began embezzling from his employer in March of 2016 and continued with his scheme through February 2023. As part of the scheme, Santos obtained checks from the victim law firm, filled out the payee line of those checks, addressing them to “Jairo Santos,” and signed each check with the signature of the law firm’s senior partner even though Santos was not authorized to do so. Santos then deposited these checks into his personal checking accounts at Wells Fargo Bank. Santos admitted to depositing approximately 806 fraudulent and unauthorized checks from the victim law firm made payable to Santos into his personal checking accounts. The total value of these unauthorized deposits was approximately $1,191,683. Santos deposited these checks from the victim law firm knowing that the payments were not authorized by the firm or its senior partner.
A federal grand jury indicted Santos on July 25, 2023, charging him with three counts of bank fraud, in violation of 18 U.S.C. § 1344. Under the plea agreement, Santos pleaded guilty to one count. If Santos complies with the plea agreement, the remaining counts of bank fraud will be dismissed at sentencing.
Santos is currently free on bond. Judge Alsup scheduled Santos’s sentencing hearing for March 12, 2024, at 11:00 a.m. The maximum statutory penalty for the 18 U.S.C. § 1344 violation is 30 years in prison and a fine of $1,000,000. The court may also ordered Santos to serve an additional term of supervised release and may order restitution, if appropriate. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Christiaan Highsmith is prosecuting the case with the assistance of Aarian Beiti. The prosecution is the result of an investigation by the FBI.
Former Bangor Man Sentenced to 4 Years for Role in Penobscot and Aroostook County Drug TraffickingRead the Press Release
BANGOR, Maine: A former Bangor man was sentenced today in U.S. District Court in Bangor for his role in a conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl.
U.S. District Judge Lance E. Walker sentenced Christopher Coty, 43, to 48 months in prison followed by three years of supervised release.
According to court records, between January 2018 and December 2021, Coty and others trafficked methamphetamine and fentanyl in Penobscot and Aroostook counties and elsewhere. Coty knowingly and intentionally joined and participated in the conspiracy.
Coty is the ninth participant involved in the northern Maine conspiracy to be sentenced. Eight of the remaining 12 defendants have pleaded guilty:
BANGOR, Maine: A former Bangor man was sentenced today in U.S. District Court in Bangor for his role in a conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl.
U.S. District Judge Lance E. Walker sentenced Christopher Coty, 43, to 48 months in prison followed by three years of supervised release.
According to court records, between January 2018 and December 2021, Coty and others trafficked methamphetamine and fentanyl in Penobscot and Aroostook counties and elsewhere. Coty knowingly and intentionally joined and participated in the conspiracy.
Coty is the ninth participant involved in the northern Maine conspiracy to be sentenced. Eight of the remaining 12 defendants have pleaded guilty:
Sentenced:
- Andrew Adams (32, Aroostook County) – 10 years
- Wayne Smith (33, Bangor) – 85 months
- Danielle McBreairty (33, Glenburn) – 20 years
- Blaine Footman (37, Bangor) – 5 years
- Nicole Footman (40, Holden) – 3 years
- Dwight Gary, Jr. (53, Medway) – Time served
- Matthew Catalano (37, Penobscot County) – 165 months
- Thomas Hammond (25, Charleston) – 84 months
- Christopher Coty (43, Bangor) – 4 years
Pleaded Guilty:
- Sarah McBreairty (35, Dixmont)
- John Miller (22, Caribou)
- Shelby Loring (28, Bangor)
- Joshua Young (48, Presque Isle)
- Joshua Jerrell (29, Orrington)
- Carol Gordon (53, Bangor)
- Jason Cunrod (42, Caribou)
- James King (54, Caribou)
The U.S. Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Maine Drug Enforcement Agency investigated the case. Assistance was provided by the police departments in Orono, Bangor, Brewer, Caribou, Presque Isle and Houlton. U.S. Attorney Darcie McElwee also recognized the cooperation and coordination provided by the Maine State Attorney General’s Office and the Aroostook County District Attorney’s Office.
Organized Crime Drug Enforcement Task Forces: This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Five Sentenced to Prison for Trafficking Methamphetamine from California to Southern MinnesotaRead the Press Release
MINNEAPOLIS – Five individuals have been sentenced to prison for trafficking methamphetamine that was shipped through the mail from California to Austin, Minnesota, announced United States Attorney Andrew M. Luger.
According to court documents, between the fall of 2021 and the summer of 2022, Michael Anthony Ortiz, 44, of San Jose, California, Esteban Ambriz, Jr., 22, of Austin, Lori Beth Luna, 32, of Austin, Angela Dawn Martin, 26, of Austin, and Kyria Idarmis Bautista Roldan, 34, of Albert Lea, engaged in a conspiracy to traffic methamphetamine from California to Austin, Minnesota. Ortiz, who was based in California, would send packages of high purity methamphetamine to Ambriz, Luna, Martin, Roldan, and other members involved in the conspiracy, to distribute throughout the Austin area.
All five defendants pleaded guilty to one count of conspiracy to distribute methamphetamine. Roldan was sentenced on November 16, 2023, to 100 months in prison followed by five years of supervised release. Ortiz was sentenced on October 18, 2023, to 180 months in prison followed by five years of supervised release. Martin was sentenced on September 27, 2023, to 96 months in prison followed by three years of supervised release. Ambriz and Luna were sentenced on August 22, 2023, to 120 months in prison followed by five years of supervised release and 108 months in prison followed by three years of supervised release, respectively. U.S. District Judge Ann D. Montgomery imposed the sentences.
This case was the result of an investigation conducted by the Drug Enforcement Administration, Southeast Minnesota Violent Crime Enforcement Team, South Central Drug Task Force, Cannon River Drug Task Force, U.S. Postal Inspection Service, U.S Marshals Service, Minnesota Bureau of Criminal Apprehension, Freeborn County Sheriff’s Office, Austin Police Department, and San Jose Police Department.
Assistant U.S. Attorney Thomas M. Hollenhorst prosecuted the case.
Felon Sentenced to More Than 6 Years in Federal Prison for Possessing Heroin, Fentanyl, Firearms, and AmmunitionRead the Press Release
CONCORD – A Lebanon man was sentenced in federal court today for possessing with intent to distribute controlled substances, namely, heroin and fentanyl, as well as two firearms charges, United States Attorney Jane E. Young announces.
Marshall Dimick, 32, was sentenced by U.S. District Court Chief Judge Landya McCafferty to 78 months in prison and 3 years of supervised release. On July 17, 2023, the defendant pleaded guilty to one count of possession with intent to distribute heroin and fentanyl, one count of being a felon in possession of a firearm and ammunition, and one count of carrying a firearm during a drug trafficking crime.
“The defendant was prohibited from having firearms and ammunition as a previously convicted felon, yet he continued to carry a loaded gun while also in possession of dangerous drugs he intended to traffic into our communities,” said U.S. Attorney Jane E. Young. “New Hampshire law enforcement is committed to pursuing and incarcerating individuals like the defendant that use gun violence to distribute drugs.”
"ATF will continue to work with our federal, state and local law enforcement counterparts to vigorously combat drug traffickers and the threat they pose to the citizens of New Hampshire by illegally possessing firearms in furtherance of their illegal drug trade,” said James M. Ferguson, Special Agent in Charge, ATF Boston Field Division.
On July 9, 2020, an officer of the Lebanon Police Department conducted a traffic stop of a vehicle being driven by the defendant. A search of the vehicle revealed a handgun in the center console with a loaded magazine, 540 small bags containing 10 grams of a mixture containing heroin and fentanyl, over $2,000 in cash, and a cell phone. The phone contained texts of drug activity between the defendant and others, as well as a conversation between the defendant and his mother referencing the gun in the car.
The Lebanon Police Department and the Bureau of Alcohol Tobacco and Firearms led the investigation. The case was prosecuted by Assistant U.S. Attorney Aaron Gingrande.
Federal Grand Jury Indictments - November 2023Read the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that a federal grand jury returned the following unsealed indictments for November 2023.
Beard, Steven DeWayne - Murder in Indian Country - 18 U.S.C. §§ 1111(a), 1151 & 1153; Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence - 18 U.S.C. §§ 924(c)(1)(A)(i), (ii) & (iii); Causing the Death of a Person in the Course of a Violation of Title 18 U.S.C. § 924(c) - 18 U.S.C. § 924(j); Forfeiture Allegation - 18 U.S.C. § 924(d) & 28 U.S.C. § 2461(c).
Coleman, Warren Allen, a/k/a Warren Antonio Coleman - Felon in Possession of Firearm - 18 U.S.C. §§ 922(g)(1) & 924(a)(8); Forfeiture Allegation - 18 U.S.C. § 924(d) & 28 U.S.C. § 2461(c).
Fincher, Russell Richard - Engaging in the Business of Dealing Firearms without a License - 18 U.S.C. §§ 922(a)(1)(A), 923(a), & 924(a)(1)(D); Selling Ammunition to a Prohibited Person - 18 U.S.C. §§ 922(d)(1) & 924(a)(8); Making False Entry in Records by Federal Firearms Dealer - 18 U.S.C. §§ 922(m) & 924(a)(3)(B); Forfeiture Allegation - 18 U.S.C. § 924(d) & 28 U.S.C. § 2461(c).
Hunter, Wesley Wayne - Aggravated Sexual Abuse in Indian Country - 18 U.S.C. §§ 2241(a), 2246(2)(A), 1151 & 1153.
Knight, Christopher Joe - Possession with Intent to Distribute Methamphetamine - 21 U.S.C. §§ 841(a)(1) & 841(b)(1)(C); Possession with Intent to Distribute Fentanyl - 21 U.S.C. §§ 841(a)(1) & 841(b)(1)(C); Possession of a Firearm in Furtherance of Drug Trafficking Crime - 18 U.S.C. § 924(c); Felon in Possession of Firearm - 18 U.S.C. §§ 922(g)(1) & 924(a)(8); Forfeiture Allegation - 18 U.S.C. § 924(d), 21 U.S.C. § 853 & 28 U.S.C. § 2461(c).
Scarborough, Nicholas Lapez - Murder in Indian Country - 18 U.S.C. §§ 1111(a), 1151 & 1153; Murder in Indian Country - 18 U.S.C. §§ 1111(a), 1151 & 1153.
Walker, Raheem Travon - Felon in Possession of Firearm and Ammunition - 18 U.S.C. §§ 922(g)(1) & 924(a)(8); Felon in Possession of Firearm and Ammunition - 18 U.S.C. §§ 922(g)(1) & 924(a)(8); Forfeiture Allegation - 18 U.S.C. § 924(d) & 28 U.S.C. § 2461(c).
An indictment is merely an allegation; all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Charges Filed After "Fentanyl Press" Found in Gladstone ApartmentRead the Press Release
PORTLAND, Ore.—An 18-year-old drug trafficker with ties to a recent fatal overdose is facing federal charges after he was caught transporting several packages of powdered fentanyl and a 20-ton shop press used to manufacture fentanyl bricks was found in his apartment.
Cristhian Martinez, 18, of Gladstone, Oregon, has been charged by criminal complaint with possessing with intent to distribute fentanyl and possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, in September 2023, members of the Clackamas County Interagency Task Force (CCITF) were called to investigate a fatal overdose in Clackamas County. While processing the scene, investigators discovered numerous counterfeit M30 Oxycodone pills believed to be manufactured with fentanyl. Martinez was soon identified as the person who sold fentanyl to the deceased victim’s dealer.
On November 16, 2023, investigators located Martinez traveling north from California into Oregon, followed his vehicle and conducted a traffic stop in Gladstone. During a K-9 sweep of Martinez’s vehicle, investigators found multiple concealed packages containing more than 1,000 grams of compressed fentanyl.
Later the same day, investigators executed a federal search warrant on Martinez’s Gladstone apartment where they located a fentanyl manufacturing and distribution operation. They seized additional quantities of fentanyl, a 20-ton shop press used to produce bricks of fentanyl powder, ten handguns, an AR-15 style assault rifle, ammunition, and other materials consistent with drug trafficking.
Martinez made his first appearance in federal court today before a U.S. Magistrate Judge. He was ordered detained pending further court proceedings.
This case was investigated by the FBI, CCITF, and Westside Interagency Narcotics team (WIN). It is being prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
CCITF, led by the Clackamas County Sheriff’s Office, works to disrupt and dismantle drug trafficking organizations operating in and around Clackamas County, and reduce illegal drugs and related crimes throughout the community. The task force is comprised of members of the Clackamas County Sheriff’s Office, Canby Police Department, Oregon State Police, FBI, and Homeland Security Investigations (HSI).
WIN is a Washington County-based interagency drug interdiction task force that includes members from the Washington County Sheriff’s Office, Beaverton and Hillsboro Police Departments, Oregon National Guard Counter Drug Program, FBI, U.S. Drug Enforcement Administration (DEA), and HSI.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Drug Trafficker Sentenced to 12 Years in PrisonRead the Press Release
Tampa, FL – U.S. District Judge Kathryn Kimball Mizelle has sentenced Joseph Paul (30, Cordele, Georgia) to 12 years in federal prison, followed by 5 years of supervised release, for possession with intent to distribute methamphetamine. Paul had pleaded guilty on July 31, 2023.
According to court documents, on January 17, 2022, Pasco County Sheriff’s deputies conducted a traffic stop and subsequent search on a car being driven and occupied by Paul. During the search, deputies found a scale, 187.2 grams of pure methamphetamine, and 19.72 grams of fentanyl.
This case was investigated by the Federal Bureau of Investigation and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Samantha E. Beckman.
District Man Pleads Guilty to Federal Firearms OffenseRead the Press Release
WASHINGTON – Maurice Devonte Beckham, 22, of Washington, D.C., pleaded guilty today to a federal firearms offense stemming from his possession of a loaded firearm on Jan. 30, 2023, while driving a stolen vehicle in Northeast Washington, announced U.S. Attorney Matthew M. Graves and Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Beckham pleaded guilty in the U.S. District Court for the District of Columbia to one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. The Honorable Reggie B. Walton scheduled sentencing for Feb. 26, 2024.
According to plea documents, shortly after 2 a.m. on Jan. 30, 2023, MPD officers were on patrol in the 1100 block of Raum St. Northeast when they observed Beckham walk quickly toward a running Honda CR-V and enter its driver’s seat. The officers recognized Beckham from prior interactions and knew him to have outstanding arrest warrants.
An officer approached the Honda—which was later determined to have been stolen—and Beckham accelerated, nearly striking the officer, and crashing into an occupied, marked police cruiser and a citizen’s parked vehicle. Officers opened the driver’s door and removed Beckham. Beckham attempted to flee on foot. Officers apprehended Beckham and detained him in handcuffs. They then observed in plain view on the driver’s seat floorboard—the same area from which they had just removed Beckham—a semi-automatic firearm. The recovered weapon was a Micro Draco 7.62x39mm caliber firearm, with one round in the chamber and 20 rounds in its 30-round capacity magazine.
Beckham was arrested on Jan. 30, 2023, and has remained in custody since.
Federal law prohibits Beckham from possessing a firearm because he has a prior conviction in the Superior Court of the District of Columbia for unauthorized use of a vehicle, which is a crime punishable by imprisonment for a term exceeding one year.
Beckham faces a maximum sentence of 15 years in prison and up to a $250,000 fine. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentence imposed in this case will be determined by the court after considering the U.S. Sentencing Guidelines and other statutory factors.
In announcing the plea, U.S. Attorney Graves and Chief Smith commended the work of the officers of the Metropolitan Police Department. Valuable assistance was provided by the Federal Bureau of Investigation’s Washington Field Office.
The case was investigated and prosecuted by Assistant United States Attorney Paul V. Courtney.
Deming Man Sentenced to 10 Years in Prison for Federal Firearms OffensesRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced that Manuel Lucero III was sentenced to the statutory maximum of 120 months in prison. Lucero, 42, of Deming, pled guilty to being a felon in possession of a firearm and ammunition on March 21, 2023.
According to court records, on Jan. 31, 2022, Lucero came to the attention of law enforcement when his former romantic partner reported him for harassment. The woman stated that she had been driving down a road earlier that day with her mother and two children in the vehicle when she noticed that another vehicle was following her. The woman pulled over and recognized Lucero as the driver. Lucero approached the car and pulled a firearm from his waistband and pointed it at the woman. Lucero then moved to the passenger side of the vehicle and pointed the gun at the woman’s mother. The woman fled the scene, but Lucero continued to follow her until she pulled into the parking lot of a local police station. The woman was able to describe the firearm Lucero threatened her with to law enforcement as a 9mm Beretta.
Early the following morning, Lucero contacted law enforcement and stated he was feeling depressed and upset and wanted to speak to an officer. When law enforcement arrived at his home, Lucero was holding a loaded magazine. When officers asked Lucero if he had a weapon, Lucero stated it was not on the property. Officers left the home and returned the next day, Feb. 2, with a search warrant for Lucero’s residence. During the resulting search, officers located the 9mm Beretta, a loaded magazine, a pistol holster and one round of .45 ammunition.
Lucero had multiple prior felony convictions, mostly related to incidents of domestic violence, and was most recently convicted of aggravated assault with a deadly weapon, resulting in great bodily harm in 2016. As a previously convicted felon, Lucero could not possess a firearm or ammunition.
Based on the circumstances of the incident on Jan. 31, the United States requested a sentencing enhancement from a range of 57 to 71 months to 84 months. On Nov. 16, 2023, the sentencing judge sentenced Lucero to the statutory maximum of 120 months.
Upon his release from prison, Lucero will be subject to 3 years of supervise release.
The Las Cruces Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Deming Police Department. The Las Cruces Bureau Office of the District of New Mexico is prosecuting the case.
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Colorado Man Pleads Guilty to Charges in Wire Fraud and Money Laundering SchemeRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, the Department of the Interior (DOI) Office of Inspector General, and the Environmental Protection Agency (EPA) Office of Inspector General announced today that James Matison pled guilty to conspiracy to commit wire fraud and money laundering. Matison, 46, of Pueblo, Colorado, will remain on conditions of release pending sentencing, which has not been scheduled.
According to the plea agreement, Matison was the Program Director for Restoration Programs at WildEarth Guardians, a not-for-profit which relies on funding from federal agencies, the State of New Mexico and other not-for-profit organizations. As Program Director, Matison was responsible for approving all Restoration Program project invoices submitted by contractors for payment. One such contractor was Timberline Environmental, LLC, a Colorado based environmental company owned and operated by Matison’s co-defendant, Jeffrey Ham. In 2015, Matison was experiencing financial difficulties and asked Ham for help with a fraudulent scheme to obtain money from WildEarth Guardians. Ham agreed to allow Matison to generate fraudulent invoices from Timberline for submission to and payment from WildEarth Guardians, which Matison would approve for payment. Matison would collect the checks and deposit them into Timberline’s bank account. Ham provided Matison with pre-signed blank Timberline checks which Matison would use to write checks to an entity called Euro-American Development, an Arizona company under Matison’s control. In this manner, Matison obtained $242,210 from WildEarth guardians between Feb. 2015 and Feb. 2019 when Ham put a stop to the scheme.
By the terms of his plea agreement, Matison faces up to twenty years in prison and up to $250,000 in fines.
Jeffrey Ham pled guilty to conspiracy to commit wire fraud on July 17, 2023. At sentencing, Ham faces up to twenty years in prison and up to $250,000 in fines.
The Environmental Protection Agency Office of Inspector General and the Department of the Interior Office of Inspector General investigated this case. Assistant United States Attorney Jeremy Peña is prosecuting the case.
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Coffeyville Resources Refining & Marketing Will Pay More Than $23 Million to Address Clean Air Act Violations and Offset Environmental Harm Related to Its Kansas RefineryRead the Press Release
The Justice Department and U.S. Environmental Protection Agency (EPA) today announced a settlement with Coffeyville Resources Refining & Marketing LLC and its affiliated companies (CRRM) for violations of the Clean Air Act and a previous consent decree related to operation of its petroleum refinery in Coffeyville, Kansas. These violations resulted in illegal emissions of various pollutants including an EPA estimate of over 2,300 excess tons of sulfur dioxide (SO2), a pollutant that can make breathing more difficult, from the refinery’s flares from 2015 to 2017.
The United States and the State of Kansas allege that CRRM violated numerous provisions of a 2012 consent decree and the Clean Air Act. Under the settlement, CRRM will spend at least $1 million on a project to benefit the public and environment of Kansas and implement measures costing up to $9 million to prevent future violations and redress the environmental harm caused by their unlawful conduct. The company will also pay more than $13 million in penalties to the United States and Kansas.
“This settlement demonstrates that the United States will take decisive action to address Clean Air Act violations, to enforce the terms of consent decrees and to promote environmental justice,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “The emissions reductions achieved under this settlement will result in healthier air for a community disproportionately affected by air pollution.”
“The settlement with Coffeyville delivers on the promise of EPA’s new climate enforcement strategy by reducing greenhouse gas emissions in amounts equal to taking 10,000 cars off the road every year,” said Assistant Administrator David M. Uhlmann for EPA’s Office of Enforcement and Compliance Assurance. “In addition, the actions we are taking alongside our state partners in Kansas will reduce harmful air pollution that makes breathing more difficult and causes smog, acid rain and tree and plant damage.”
“We are committed to protecting people and families in the communities where they live,” said EPA Region 7 Administrator Meg McCollister. “In addition to the emission controls provided in the settlement, this order requires CRRM to invest $1 million in an environmental project to be approved by the state of Kansas, which will directly benefit the citizens of the state.”
Since the United States and Kansas began investigating CRRM’s alleged non-compliance in 2016, CRRM’s efforts to come into compliance with Clean Air Act requirements have already eliminated more than 39,000 tons per year of carbon dioxide (CO2) emissions from excessive flaring of waste gas, equivalent to using nearly 4 million fewer gallons of gasoline per year. In addition, EPA estimates that the flare gas recovery system required by the consent decree lodged today will further reduce yearly emissions of greenhouse gases by 12,888 tons, equivalent to using 1.3 million fewer gallons of gasoline annually, and will also reduce yearly emissions of SO2 by 1.7 tons and nitrogen oxide (NOx) by 9.57 tons. NOx is a primary contributor to the formation of smog.
In 2020, the United States and Kansas sought more than $6.8 million in stipulated penalties from CRRM because of the company’s alleged violations of the 2012 consent decree – primarily regarding its failure to properly monitor SO2 emissions from flaring. Various refinery processes lead to flaring or burning of waste gases which emit various pollutants into the atmosphere, including carbon dioxide, methane, and SO2. The U.S. District Court for the District of Kansas held CRRM liable for the stipulated penalties and the company appealed the decision.
Also in 2020, the United States and Kansas alleged additional Clean Air Act violations at the refinery, resulting in excess emissions of SO2 in a community already disproportionately impacted by air pollution. Exposure to SO2 can harm breathing and particularly affects those with asthma, children, and older adults. High concentrations of SO2 can lead to formation of other sulfur oxides and ultimately small particles, which can contribute to particulate matter pollution, acid rain and tree and plant damage.
The consent decree, which the United States filed today, resolves the stipulated penalties demand and violations identified in the complaint. CRRM must:
- Pay more than $6.8 million in stipulated penalties awarded by the court and $183,000 in stipulated penalties for additional violations of the 2012 consent decree;
- Pay more than $6.2 million in additional penalties for Clean Air Act violations alleged in the complaint;
- Spend at least $1 million on an environmentally beneficial project to be approved by the State of Kansas;
- Undertake various measures to facilitate future compliance with the Clean Air Act;
- Reduce NOx emissions from refinery heaters; and
- Build an approximately $9 million flare gas recovery system to reduce the refinery’s flaring.
EPA Region 7, EPA’s Office of Enforcement and Compliance Assurance and the Kansas Department of Health and Environment investigated the case.
Attorneys from ENRD’s Environmental Enforcement Section and the State of Kansas prosecuted the case.
The consent decree, lodged in the U.S. District Court for the District of Kansas, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at www.justice.gov/enrd/consent-decrees.
Chandler Man Sentenced to over 7 Years for Voluntary ManslaughterRead the Press Release
PHOENIX, Ariz. – Walter Lee Riggins, Jr., 28, of Chandler, Arizona, was sentenced last week by United States District Judge Michael T. Liburdi to 87 months in prison, to be followed by three years of supervised release. The defendant pleaded guilty on August 21, 2023, to Voluntary Manslaughter.
On December 27, 2020, Riggins, a member of the Gila River Indian Community, shot the victim, killing him.
The investigation in this case was conducted by the Gila River Police Department and the Federal Bureau of Investigation. The prosecution was handled by Assistant United States Attorneys Raynette Logan and Vinnie Lichvar, District of Arizona, Phoenix.
CASE NUMBER: CR-21-00553-PHX-MTL
RELEASE NUMBER: 2023-183_Riggins# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.British Reinsurance Brokers Resolve Bribery InvestigationsRead the Press Release
Tysers Insurance Brokers Limited (Tysers) and H.W. Wood Limited (H.W. Wood), two U.K.-based reinsurance brokers, have agreed to resolve investigations by the Justice Department into violations of the Foreign Corrupt Practices Act (FCPA) arising from Tysers’ and H.W. Wood’s participation in a corrupt scheme to pay bribes to Ecuadorian government officials.
Tysers and H.W. Wood each entered into a three-year deferred prosecution agreement (DPA) with the department in connection with a criminal information filed in the Southern District of Florida charging both companies with conspiracy to violate the anti-bribery provisions of the FCPA.
“Tysers and H.W. Wood have admitted to engaging in a scheme to bribe multiple Ecuadorian government officials to earn tens of millions of dollars in illicit profits for themselves and their co-conspirators,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “Today’s resolutions, along with the numerous related individual cases, demonstrate the department’s steadfast commitment to hold both corporate and individual wrongdoers accountable for their crimes.”
According to court documents, between 2013 and 2017, Tysers (known and doing business during the relevant period as Integro Insurance Brokers Limited) and H.W. Wood, through their employees and third-party agents, agreed to pay bribes totaling approximately $2.8 million to the then-chairman of two Ecuadorian state-owned insurance companies, Seguros Sucre S.A. and Seguros Rocafuerte S.A., and three other Ecuadorian officials to secure improper advantages in order to obtain and retain reinsurance business with the state-owned insurance companies. The bribes were paid to accounts held in Florida and elsewhere and effectuated through, among other things, emails sent from and meetings held in Florida. In furtherance of the scheme, Tysers paid approximately $20.3 million in commissions and H.W. Wood paid approximately $7.9 million in commissions and premium payments to the intermediary company that paid the bribes. Tysers retained commissions of approximately $10.5 million and H.W. Wood retained commissions of approximately $2.3 million.
“Not only have Tysers and H.W. Wood broken any trust held in them by their clients and the market, they have eroded the process of fair and open competition when they paid bribes to foreign officials in exchange for securing lucrative contracts, and kickback for themselves,” said Chief Jim Lee of IRS Criminal Investigation (IRS-CI). “We will continue to work with our partners to investigate FCPA violations to ensure honest corporations that playing by the rules pays better in the end.”
“The defendants engaged in a multimillion-dollar bribery scheme to influence Ecuadorian government officials into doing business with their companies,” said Assistant Director Luis Quesada of FBI’s Criminal Investigative Division. “Today’s resolution shows the FBI will seek justice for violations of the FCPA to keep marketplaces and governments free from corruption worldwide.”
Pursuant to the DPAs, Tysers and H.W. Wood have each agreed to continue to cooperate with the department in any ongoing or future criminal investigations relating to this conduct. In addition, Tysers and H.W. Wood have each agreed to continue to enhance their compliance programs and provide reports to the department regarding remediation and the implementation of compliance measures for the three-year term of the DPAs.
Tysers
Pursuant to its DPA, Tysers will pay a $36 million criminal penalty and administrative forfeiture of approximately $10.5 million. The department reached this resolution with Tysers based on a number of factors, including, among others, the nature and seriousness of the offense. Tysers received credit for its cooperation with the department’s investigation, which included (i) meeting the government’s requests promptly; (ii) making foreign-based employees available for interviews; (iii) collecting and producing voluminous relevant documents to the government, including documents located outside the United States; (iv) making several detailed factual presentations to the government and conducting and producing financial analyses of voluminous transactions; and (v) timely accepting responsibility and reaching a prompt resolution.
Tysers engaged in timely remedial measures, which included, among other things, (i) placing employees involved in the misconduct on paid administrative leave; (ii) terminating all business and affiliations with the intermediary company involved in the misconduct; and (iii) comprehensively reviewing and enhancing its compliance program, including engaging additional resources with appropriate expertise to assist in evaluating and strengthening its compliance program, making enhancements to the governance and oversight of its compliance program, adding new compliance resources and personnel, updating and enhancing its antibribery and anticorruption policies, enhancing procedures related to onboarding and making payments to third-parties, and enhancing training programs. In light of these considerations, Tysers’ criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 25% reduction off the bottom of the applicable guidelines fine range.
H.W. Wood
Pursuant to its DPA, H.W. Wood agreed, based on the application of the U.S. Sentencing Guidelines, that the appropriate criminal penalty is $22.5 million and approximately $2.3 million is forfeitable to the United States. However, due to H.W. Wood’s financial condition and demonstrated inability to pay the penalty calculated under the U.S. Sentencing Guidelines, H.W. Wood and the department agreed, consistent with the department’s inability to pay guidance, that the appropriate criminal penalty is $508,000 and that H.W. Wood is unable to pay the forfeiture amount. The department reached this resolution with H.W. Wood based on a number of factors, including, among others, the nature and seriousness of the offense. H.W. Wood received credit for its cooperation with the department’s investigation, which included (i) meeting the government’s requests promptly; (ii) endeavoring to make foreign-based employees available for interviews; (iii) collecting and producing voluminous relevant documents to the government, including documents located outside the United States; (iv) making several detailed factual presentations to the government and conducting and producing financial analyses of voluminous transactions; and (v) timely accepting responsibility and reaching a prompt resolution.
H.W. Wood engaged in timely remedial measures, which included, among other things, (i) terminating an employee involved in the misconduct; and (ii) enhancing its compliance program, including creating new compliance positions and compliance control improvements, implementing a process to ensure continuous monitoring and review of third-party relationships, and updating and enhancing its policies and procedures, as well as its compliance training and communications. In light of these considerations, H.W. Wood’s criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 25% reduction off the bottom of the applicable guidelines fine range.
The department has, to date, charged eight individuals in related matters:
- Juan Ribas Domenech, the former chairman of Seguros Sucre and Seguros Rocafuerte, pleaded guilty in the Southern District of Florida on Sept. 16, 2020, to money laundering conspiracy for his role in this and another scheme.
- Fernando Martinez Gomez, a financial advisor, pleaded guilty in the Eastern District of New York on March 24, 2022, to two counts, including conspiracy to commit money laundering for on his role in this and another scheme.
- Esteban Merlo Hidalgo, a co-conspirator and agent of Tysers and H.W. Wood, pleaded guilty in the Southern District of Florida on March 28 to four counts of engaging in transactions in criminally derived property obtained through his participation in this scheme.
- A federal grand jury in the Southern District of Florida returned a seven-count indictment against two other defendants, Cristian Patricio Pintado Garcia and Luis Lenin Maldonado Matute, both of whom remain fugitives, on July 14, 2022, for their alleged roles in this scheme.
- Related to this investigation, on March 18, 2022, the department issued an FCPA Corporate Enforcement Policy declination to another U.K.-based reinsurance broker, Jardine Lloyd Thompson Group Holdings Ltd. (JLT), relating to bribes paid through a Florida-based intermediary to Ecuadorian government officials to obtain and retain contracts with Seguros Sucre. In connection with the FCPA Corporate Enforcement Policy declination, JLT disgorged approximately $29 million.
- Separately, the former CEO of JLT’s Colombian subsidiary, Felipe Moncaleano Botero, and two intermediaries, Jose Vicente Gomez Aviles and Roberto Heinert, each pleaded guilty in the Southern District of Florida to one count of money laundering conspiracy, on, respectively, Aug. 4, 2020, June 11, 2020, and Oct. 2, 2020.
The IRS-CI Global Illicit Financial Team and the FBI’s International Corruption Squad in Miami are investigating the case.
Trial Attorneys Katherine Raut and Anthony Scarpelli and Assistant Chief Alexander Kramer of the Criminal Division’s Fraud Section are prosecuting the case.
The Justice Department’s Office of International Affairs and authorities in the United Kingdom, Panama, Ecuador, and Switzerland provided assistance in the matter.
The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Tysers & HW Wood Information
Tysers DPA
HW Wood DPABridgeport Gun Trafficker Sentenced to Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DAQUAN LAMONT WRIGHT, 26, of Bridgeport, was sentenced today by U.S. District Judge Victor A. Bolden in New Haven to 30 months of imprisonment, followed by three years of supervised release, for illegally possessing and selling firearms.
According to court documents and statements made in court, an investigation determined that Wright was illegally selling firearms without a license. In January and February 2023, investigators made three controlled purchases of handguns from Wright. One of the handguns had been reported stolen in North Carolina. During the investigation, Wright indicated that he possessed, and had access to, other firearms and firearm parts.
Wright was arrested on March 13, 2023. On that date, a search of his Bridgeport residence revealed a Glock Model 43 handgun, ammunition, and various gun parts.
Wright was previously convicted in state court of theft of a firearm, and possession with intent to sell narcotics. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Wright has been detained since his arrest. On July 5, 2023, he pleaded guilty to unlawful possession of a firearm by a felon.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Connecticut State Police, and the Bridgeport, Fairfield, and Stamford Police Departments. The case was prosecuted by Assistant U.S. Attorney Jocelyn Courtney Kaoutzanis through the Project Safe Neighborhoods (PSN) program. PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Armed Carjacker Sentenced to 15 Years in Federal PrisonRead the Press Release
A Dallas man who carjacked a woman at gunpoint was sentenced last week to 15 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Randy Hordge, 22, pleaded guilty in January 2023 to carjacking. He was sentenced Friday by U.S. District Judge Sam A. Lindsay.
“This is another example of the ATF’s and our U.S. Attorney’s Office’s commitment to aggressively pursuing those who commit violent crimes in Dallas,” said U.S. Attorney Simonton. “Reducing violent crime is not enough—we will not rest as long as any citizen is victimized in this way. I am proud that this case serves as an example of that commitment.”
“ATF remains vigilant and steadfast in our fight against violent crime in North Texas. ATF is grateful to the United States Attorney’s Office and our law enforcement partners who work tirelessly to pursue the worst of the worst lawbreakers who commit these heinous crimes. Mr. Hordge now has 15 years to think about and regret his actions,” said ATF Special Agent in Charge Jeffrey C. Boshek II.
According to plea papers, on October 7, 2020 Mr. Hordge – two hours after committing another armed carjacking where he pulled a victim out of her vehicle by her hair – pointed a firearm at a female in a residential driveway and forced her into her car. Mr. Hordge drove off with the individual in the car begging for her life. Mr. Hordge eventually pulled the car over and told the individual that she had five seconds to run or that she would be shot.
The carjacking was reported to police and Mr. Hordge was later arrested and identified.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorney Gary Tromblay prosecuted the case.
Appleton Sex Offender Sentenced to 15 Years in Federal Prison for Child Pornography PossessionRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on November 17, 2023, William B. Bowers (age: 42) of Appleton, Wisconsin, was sentenced to 180 months in federal prison by Senior United States District Judge William C. Griesbach.
According to court records, in 1999, Bowers was convicted of two counts of Second-Degree Sexual Assault of a Child in Waukesha County, Wisconsin. Bowers was sentenced to 20 years in state prison and ordered to register as a sex offender for the remainder of his life.
On February 5, 2020, after being released onto supervision, Wisconsin Probation and Parole Agents were contacted by a concerned individual who observed sexually suggestive websites bookmarked on Bowers’ computer. The following day, a search of Bowers’ electronic devices revealed that Bowers was active on numerous illicit websites and social media applications, in violation of the terms of his state supervision and his rules as a lifetime sex offender registrant. Further investigation revealed that several of Bowers’ devices contained child sexual abuse material.
On May 9, 2023, following a series of legal motions and medical evaluations, Bowers entered a guilty plea to one count of Possession of Child Pornography, in violation of Title 18, United States Code, Sections 2252A(a)(5)(B) and (b)(2).
At sentencing, Judge Griesbach noted the serious nature of the crime, especially in light of Bowers’ history of child sexual abuse. Judge Griesbach determined that a sentence of 180 months’ imprisonment was a fair and just sentence under federal law. Upon the completion of his federal prison sentence, Bowers will spend the remainder of his life on supervised release. He also must continue to register as a sex offender under state and federal law.
This case was investigated by the Wisconsin Department of Corrections, Division of Community Corrections and the City of Menasha Police Department. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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25 Charged in Drug Trafficking ConspiracyRead the Press Release
GREENSBORO, N.C. - A federal indictment was unsealed yesterday charging 25 defendants in a narcotics trafficking conspiracy, announced Middle District of North Carolina United States Attorney Sandra J. Hairston.
The indictment, which followed a two-year investigation, charges the following individuals with conspiracy to distribute methamphetamine, fentanyl, and cocaine hydrochloride in the Counties of Guilford, Randolph, Durham, and Montgomery, in the Middle District of North Carolina, and elsewhere:
- FELIPE AGUILAR-RIOS, also known as “Gallo,”
- ADOLFO MEDRANO-VARGAS,
- ALAN CHRISTOPHER LITTLE, also known as “Rick Ross,”
- ALEX VILLAFUENTE, also known as Alex Villafuerte,
- TRAVIS LAQUAN HEADEN,
- ANA OCHOA-IBARRA, also known as Anna Maria Guada Morales-Iriqui,
- ANGEL YAHIR QUINTERO-ARRENDONDO, also known as Angel Yahir Quintero,
- ANTHONY JAMES BUTLER, also known as “Ant,”
- LORETTA MCCOY LITTLE, also known as Arivette Little and Loretta Arivette Little,
- CAMERINO ATANACIO-HERNANDEZ,
- CESAR AYON GAMBOA,
- CESAR NOE LOPEZ,
- DAMIEN TERRELL CLYBURN, also known as Damian Clyburn and “Rell,”
- EDUARDO JOSUE HERNANDEZ,
- JARED MARCUS MOORE,
- J-KARI CHRISTYLE COLLINS, also known as “J,”
- MERISSA COLLINS WALL, also known as Merissa Faye Collins, Merissa Faye Wall, and “Rissa,”
- MICHAEL JAMES BUTLER,
- NAYELI PEREZ,
- MARY OJEDA,
- OMAR MEZA,
- RASHAD LEQUAN SHIPP, also known as “Green Mile,”
- RODRICK EUGENE LITTLE, also known as “Fruit,”
- RONALD LEE JOHNSON, and
- WESLEY QUEZNEK COLLINS, also known as “Quez.”
Additional counts in the indictment charge some defendants named above with distribution of narcotics, possession with intent to distribute narcotics, possession of a firearm in furtherance of a drug trafficking crime, felon in possession of a firearm, and money laundering.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted, individual defendants face penalties ranging from up to 20 years, 5 years to 40 years, or 10 years to life, for narcotics conspiracy, distribution, and possession with intent to distribute, depending on the drug amounts involved in the offenses; 5 years to life for possession of a firearm in furtherance of a drug trafficking crime; up to 10 years or up to 15 years for felon in possession of a firearm, depending on the date of the offense; and up to 20 years for money laundering. In the event of conviction, a federal district court judge would determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The United States Postal Inspection Service, Drug Enforcement Administration, United States Marshals Service, North Carolina State Bureau of Investigation, Montgomery County Sheriff’s Office, Moore County Sheriff’s Office, and Stanly County Sheriff’s Office are investigating the case. The case is being prosecuted by Assistant United States Attorneys Terry M. Meinecke and Craig M. Principe.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Saturday 18 November 2023
Sigourney Man Sentenced to Mail Fraud and Defrauding the IRSRead the Press Release
DES MOINES, Iowa – A Sigourney man was sentenced today to 33 months in prison for committing fraud by selling grain as organic, which in fact was grown in violation of the United States Department of Agriculture (USDA) National Organic Program (NOP). NOP is a federal regulatory program governing organic agricultural products.
In April 2023, Mark Lynn Haines, 48, pleaded guilty to mail fraud and conspiracy to defraud the United States. According to public court documents, key among Haines’ NOP violations were the use of treated seed, which is prohibited by NOP. Haines concealed his NOP violations from the Iowa Department of Agriculture and Land Stewardship (IDALS), the organic certifier. The grain was then sold by Haines to a number of unwitting purchasers at a total sale price of over $6.5 million.
Haines also conspired to impede and obstruct the Internal Revenue Service (IRS) in the assessment and collection of income taxes. Between April 2017 and April 2019, Haines obtained false invoices, backdated checks, and exchanged checks to give the appearance of an expense that was not in fact incurred. In total, Haines concealed over $1.3 million in income. Restitution was ordered to the IRS in the amount of $408,107 and $25,233.44 to a purchaser of the purported organic crops.
Following his prison term, Haines must serve a two-year term of supervised release. There is no parole in the federal system.
“Consumers trust when they see the USDA Organic Seal, they are purchasing organically produced agricultural products. Haines’ fraudulent activity compromised the integrity of the program and harmed USDA’s ability to protect American agriculture. This investigation and prosecution should serve as warning to all farmers participating in the USDA National Organic Program that organic agriculture fraud will be vigorously investigated by the USDA-OIG, the U.S. Attorney’s Office, and its stakeholders,” said USDA OIG Special Agent-in-Charge Shantel R. Robinson.
After the sentencing, FBI Omaha Special Agent in Charge Eugene Kowel said, “Mark Haines’ deception and greed not only defrauded the American government, it compromised the trust and confidence of consumers who purchase organically grown products. Today’s sentence should serve as a warning to others who ignore regulations and use deceptive practices to make a profit.”
“Mr. Haines took steps to falsify documents and obstruct the IRS’ efforts to assess and collect his correct tax obligation,” said IRS Criminal Investigation (CI) Special Agent in Charge Thomas F. Murdock. “This investigation shows our commitment to upholding the integrity of the nation’s tax system and holding those who try to cheat the system accountable.”
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The United States Department of Agriculture – Office of Inspector General, the Internal Revenue Service, and the Federal Bureau of Investigation investigated the case. The Iowa Department of Agriculture and Land Stewardship (IDALS) revoked Haines’ organic certificate in 2018 due to several NOP violations and assisted the federal agents in the investigation and the prosecution of the case.
If you witness or have knowledge of any violations of laws and regulations related to USDA programs, contact the OIG Hotline by telephone at (800) 424-9121 or TDD (202) 690-1202.
Ames Man Sentenced for False Presentation and Preparation of Federal Tax ReturnsRead the Press Release
DES MOINES, Iowa – An Ames man was sentenced today to 18 months in prison for preparing, presenting, and making false tax returns.
According to public court documents, Bakou Kees Vonty, 41, also known as Bob Vonty, prepared and filed hundreds of federal individual income tax returns on behalf of individual taxpayers, from approximately 2011 to 2022. On a 2019 tax return, Vonty, on behalf of an individual, falsely reported business losses and qualified education expenses. As part of his plea agreement, Vonty agreed to not prepare, file, or assist in any way with the preparation of federal or state tax returns for any third parties. Further, in at least 2016, Vonty falsely reported business losses and qualified education expenses on his own tax return. Vonty’s false returns resulted in a combined tax loss exceeding $400,000.
Following his prison term, Vonty must serve a one-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Internal Revenue Service Criminal Investigation Division investigated the case.
Friday 17 November 2023
Worcester Psychiatrist Convicted of Unlawful Distribution of Controlled SubstancesRead the Press Release
BOSTON – A Worcester psychiatrist was convicted by a federal jury today of illegally prescribing controlled substances.
Mohamad Och, 67, was convicted following an 11-day jury trial of three counts of unlawful distribution of a controlled substance. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for Feb. 16, 2024. Och was arrested and charged in July 2021.
“Dr. Och deliberately and recklessly jeopardized patient safety by repeatedly prescribing dangerous combinations of benzodiazepines and stimulants,” said Acting United States Attorney Joshua S. Levy. “This case underscores our office’s unwavering commitment to justice, patient safety and the responsible management of healthcare resources. Ensuring the well-being of patients is paramount.”
“The DEA is committed to ensuring that all registrants are in compliance with the required regulations, which are enforceable through the Controlled Substances Act,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division. “Failure to do so increases the potential for diversion and jeopardizes public health and public safety. DEA pledges to work with our law enforcement and regulatory partners to ensure these rules and regulations are followed.”
“Handing out controlled substances as casually as Halloween candy is a clear-cut crime, in which Dr. Och abrogated his professional ethics. Going forward, this experienced psychiatrist will have plenty of time to analyze his incredibly poor decisions that led to today’s conviction,” said Jodi Cohen, Special Agent in Charge of the FBI Boston Division. “The FBI, meanwhile, will continue to pursue investigations involving psychiatrists like Dr. Och.”
“Dr. Och disregarded the wellbeing of his patients by illegally prescribing controlled substances,” said Special Agent in Charge Roberto Coviello of the U.S. Department of Health and Human Services, Office of Inspector General. “We will continue working tirelessly alongside our law enforcement partners to ensure that corrupt medical practitioners who unlawfully overprescribe addictive drugs are brought to justice.”
Och was a licensed psychiatrist who owned and operated Island Counseling Center (ICC), in Worcester, Mass., and has practiced psychiatry elsewhere in Massachusetts, including Nantucket. Among other services, Och was authorized to prescribe Schedule II-IV controlled substances to patients.
Och repeatedly prescribed a combination of benzodiazepines and stimulants outside of the usual course of professional practice and not for a legitimate medical purpose. Specifically, on multiple occasions between August 2016 and February 2017, Och knowingly issued prescriptions for Adderall (a Schedule II amphetamine) and Xanax (a Schedule IV benzodiazepine) to undercover agents working for the DEA. Evidence at trial showed that amphetamines have a high potential for abuse and present serious cardiovascular risks. Evidence also showed the risks presented by mixing Xanax, a depressant, with a stimulant like Adderall.
Evidence at trial established that the defendant prescribed such highly-addictive medications without doing proper psychiatric examinations, without obtaining prior medical records, and without administering diagnostic tests (including urinalyses or blood tests) – even when faced with facts that the undercover patients may have been participating in drug diversion. Furthermore, the defendant did not discuss or review medication side effects, their conditions’ symptoms, or the risks and benefits of taking drugs like Adderall and Xanax with the undercover agents – despite documenting in medical records that he had done so.
The charge of illegal prescription of a Schedule II controlled substance provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $1 million. The charge of illegal prescription of a Schedule IV controlled substance provides for a sentence of up to five years in prison, three years of supervised release and a fine of $1 million. 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 U.S. Attorney Levy, DEA SAC Boyle, FBI SAC Cohen and HHS-OIG SAC Coviello made the announcement today. Assistant U.S. Attorneys John T. Mulcahy and Kaitlin R. O’Donnell of the Criminal Division are prosecuting the case.
Urbana, Illinois, Man Sentenced to 27 Years in Prison for Methamphetamine ConspiracyRead the Press Release
URBANA, Ill. – An Urbana, Illinois, man, Phoutasone Champanine, 37, was sentenced today to an aggregate 27 years in prison following his convictions for conspiracy to possess fifty grams or more of methamphetamine (actual) with intent to distribute, maintaining a drug-involved premises, and possessing a firearm as a felon. He was also ordered to serve an aggregate five years of supervised release.
At the sentencing hearing in front of U.S. District Judge Colin S. Bruce, the government sought to hold Champanine accountable for eight pounds of methamphetamine found on his person when he was arrested during a Champaign County Street Crimes Task Force operation and for additional methamphetamine and several firearms found in places that Champanine controlled in connection with the conspiracy. Judge Bruce included that relevant conduct in determining Champanine’s advisory sentencing guidelines.
The statutory penalties for conspiracy to possess fifty grams or more of methamphetamine (actual) with intent to distribute are ten years to life imprisonment, up to a $10,000,000 fine, and a maximum life term of supervised release. Champanine also faced up to twenty years of imprisonment, up to a $500,000 fine, and up to three years of supervised release for maintaining a drug-involved premises. Finally, he faced up to ten years of imprisonment, up to a $250,000 fine, and up to three years of supervised release for possessing a firearm as a felon.
The case investigation was conducted by the Champaign County Street Crimes Task Force, a multi-jurisdictional group composed of officers from the Champaign County Sheriff’s Office, the Champaign Police Department, the Urbana Police Department, and the University of Illinois Police Department, with assistance provided by the Federal Bureau of Investigation, Springfield Field Office; Drug Enforcement Administration; and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Timothy Sullivan and William J. Lynch represented the government at both trial and sentencing.
The case against Champanine 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 and First Judicial District Attorney Sign Agreement to Support Federal Investigations and Prosecutions in Santa Fe, Rio Arriba, and Los Alamos CountiesRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Mary Carmack-Altwies, the First Judicial District Attorney, signed a memorandum of understanding today whereby Assistant District Attorneys from the First Judicial District Attorney’s Office may be designated Special Assistant United States Attorneys (SAUSAs) in the United States Attorney’s Office. Through this agreement, cross-designated state prosecutors will support federal investigations and prosecutions of criminal offenses committed in Santa Fe, Rio Arriba, and Los Alamos counties involving firearms, controlled substances, acts of violence, and child exploitation.
“Crime knows no jurisdictional boundaries,” said U.S. Attorney Uballez. “With this agreement, we will work hand-in-hand with our state and local partners in pursuit of public safety. Together, we will bring federal resources and sentences to bear against the most pernicious and violent offenders in the communities of Santa Fe, Rio Arriba, and Los Alamos.”
"We are proud to partner with the U.S Attorney's Office in this agreement to ensure the worst offenders throughout the First Judicial District are exposed to the full force of the law," Carmack-Altwies said. "The agreement signed today will bring welcome additions to our office's efforts to secure justice for everyone affected by criminal elements in our communities."
The United States Attorney’s Office and the First Judicial District Attorney’s Office share an interest in ensuring public safety, securing justice for victims, enhancing cooperation between law enforcement agencies.
The United States Attorney’s Office has similar agreements with the New Mexico Attorney General’s office and the Second Judicial District Attorney’s Office. SAUSAs from the Second Judicial District Attorney’s Office currently screen every single felony criminal complaint filed in Bernalillo County for federal criminal offenses, prioritizing federal charges against those who drive violence in the Albuquerque metropolitan area. Since 2020, the United States Attorney’s Office has charged over 300 criminal cases pursuant to this program.
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Two Texans Found Guilty of Conspiracy to Sell Sanctioned Iranian PetroleumRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Zhenyu (“Bill”) Wang, 42, of Dallas, Texas, and Daniel Ray Lane, 42, of McKinney, Texas, were convicted at trial on charges of attempting to violate the International Emergency Economic Powers Act (“IEEPA”), conspiracy to violate IEEPA, and conspiracy to commit money laundering based on their attempt to transact in sanctioned Iranian petroleum and launder the proceeds.
At trial, the evidence showed that in 2019 and early 2020, the defendants engaged in a conspiracy to purchase petroleum from Iran, in violation of economic sanctions imposed by the United States under IEEPA. They then planned to mask the origins of the petroleum and sell it to a refinery in China. The defendants also attempted to conceal their illegal transactions by obtaining foreign passports, engaging in sham contractual agreements, and conspiring to launder the proceeds of the sale through shell entities and offshore financial accounts. For example, Lane offered to use the mineral rights that his company sold to launder proceeds for the Iranian sellers. In addition, Wang arranged for bribe payments to be paid the Chinese officials and bankers.
“As shown at trial, the defendants schemed to buy Iranian oil, hide its origins, and sell it to a refinery in China in clear disregard for U.S. sanctions against the Teheran regime,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “We will not tolerate anyone who violates our sanctions laws and imperils national security for personal profit. Like the defendants today, those who try will be held to account.”
“The defendants in this case flouted the national security interests of the United States by directly violating economic sanctions,” said U.S. Attorney Romero. “Conspiring to violate sanctions and commit money laundering in the process is a serious offense, and will not be tolerated.”
“For financial gain, these co-conspirators sought to evade sanctions put in place to protect the United States’ national security,” said Richard Langham, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “A criminally bad idea, as this verdict clearly shows. The FBI will bring all our investigative resources to the table to halt such harmful acts.”
Wang and Lane face each a maximum statutory penalty of 45 years in prison total, five years for conspiracy to violate IEEPA and twenty years for each for attempting to violate the IEEPA and conspiracy to commit money laundering. The defendants are scheduled to be sentenced on February 29, 2024.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Patrick Murray and Mary Crawley with valuable assistance provided by Beau Barnes and David Recker of the National Security Division’s Counterintelligence and Export Control Section.
Two North Dakota Women Sentenced for Conspiracy to Distribute a Controlled SubstanceRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a West Fargo, North Dakota, woman and a Raleigh, North Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance. The sentencings took place on November 14, 2023.
Kerstyn Lanz, age 31, was sentenced to two years in federal prison, followed by four years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Monica Yellow Bird, age 40, was sentenced to 18 months in federal prison, followed by three years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
The convictions stemmed from a drug conspiracy in December of 2022 wherein Lanz and Yellow Bird knowingly and intentionally agreed with others to distribute 500 grams or more of methamphetamine. Lanz, Yellow Bird, and their two co-defendants were arrested while at a gas station in Oacoma, South Dakota. Their vehicles were searched and approximately 10 pounds of methamphetamine was found in vacuum sealed bags wrapped as Christmas presents. The defendants were transporting the methamphetamine from a source in Las Vegas, Nevada, to North Dakota for further distribution. Methamphetamine is a Schedule II controlled substance.
Co-defendant Abdul Vann was previously sentenced to thirteen years in prison, and co-defendant Samuel Vann was previously sentenced to one year in prison.
This case was investigated by the South Dakota Highway Patrol and the Northern Plains Safe Trains Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Lanz and Yellow Bird were allowed to self-report on November 27, 2023.
Two Men Found Guilty of Conspiracy to Sell Sanctioned Iranian PetroleumRead the Press Release
Zhenyu “Bill” Wang, 42, of Dallas, and Daniel Ray Lane, 42, of McKinney, Texas, were convicted at trial on Nov. 15 on charges of attempting to violate the International Emergency Economic Powers Act (IEEPA), conspiracy to violate IEEPA, and conspiracy to commit money laundering in connection with their attempt to transact in sanctioned Iranian petroleum and launder the proceeds.
According to evidence presented at trial, in 2019 and early 2020, the defendants engaged in a conspiracy to purchase petroleum from Iran, in violation of economic sanctions imposed by the United States under IEEPA. They then planned to mask the origins of the petroleum and sell it to a refinery in China. The defendants also attempted to conceal their illegal transactions by obtaining foreign passports, engaging in sham contractual agreements, and conspiring to launder the proceeds of the sale through shell entities and offshore financial accounts. For example, Lane offered to use the mineral rights that his company sold to launder proceeds for the Iranian sellers. In addition, Wang arranged for bribe payments to be paid the Chinese officials and bankers.
“These defendants schemed to buy Iranian oil, hide its origins, and sell it to a refinery in China in disregard of U.S. sanctions against Iran,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will not tolerate those who would violate U.S. sanctions and imperil our national security for personal profit.”
“The defendants in this case flouted the national security interests of the United States by directly violating economic sanctions,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “Conspiring to violate sanctions and commit money laundering in the process is a serious offense and will not be tolerated.”
“For financial gain, these co-conspirators sought to evade sanctions put in place to protect the United States’ national security,” said Acting Special Agent in Charge Richard Langham of the FBI Philadelphia Field Office. “A criminally bad idea, as this verdict clearly shows. The FBI will bring all our investigative resources to the table to halt such harmful acts.”
Wang and Lane, as well as three co-conspirators, were originally charged by complaint in February 2020, and the defendants and two co-conspirators were indicted on the above charges in August 2020. Wang and Lane face each a maximum penalty of 45 years in prison: five years for conspiracy to violate IEEPA and 20 years for each attempting to violate the IEEPA and conspiracy to commit money laundering counts. The defendants are scheduled to be sentenced on Feb. 29, 2024.
The FBI investigated the case.
Assistant U.S. Attorneys Patrick Murray and Mary Crawley for the Eastern District of Pennsylvania are prosecuting the case, with valuable assistance provided by Trial Attorney Beau Barnes of the National Security Division’s Counterintelligence and Export Control Section.
Two Eagle Butte Men and One Dupree Man Sentenced for Theft of Firearms and Third-Degree BurglaryRead the Press Release
PIERRE- United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced three South Dakota men convicted of Theft of Firearms from Federal Firearm Licensee and Third-Degree Burglary. The sentencings took place on October 10, 2023, and November 15, 2023, respectively.
Jaylen Bleu Ducheneaux, a/k/a Jaylen Red Bear, age 24, of Eagle Butte, South Dakota, was sentenced to 12 years in federal prison, followed by three years of supervised release, restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Weston Reid Clausen, age 24, of Dupree, South Dakota, was sentenced to 10 years in federal prison, followed by three years of supervised release, restitution, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Ford Whitley Traversie, age 23, of Eagle Butte, was sentenced to three years and four months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
All three defendants were ordered to pay restitution in the amount of $20,188 to the victim of this matter, and the restitution was ordered to be paid joint and several between the co-defendants.
Clausen, Ducheneaux, and Traversie were indicted by a federal grand jury in January of 2023. Traversie pleaded guilty on June 14, 2023; Ducheneaux pleaded guilty on August 3, 2023; and Clausen pleaded guilty on August 21, 2023.
The convictions stemmed from an incident that occurred during the weekend of August 13 to 15, 2022, when the defendants burglarized Reloaders Corner, a licensed federal firearm retailer in Isabel, South Dakota. Ducheneaux and Clausen planned the burglary while Traversie served as a lookout during the burglary. The three men stole 105 firearms. Some of the firearms were then illegally trafficked to other individuals. The stolen firearms have been recovered in various communities in South Dakota and throughout the Midwest.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, the Cheyenne River Sioux Tribe Law Enforcement Services, and the Dewey County Sheriff’s Office. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Clausen, Ducheneaux, and Traversie were immediately remanded to the custody of the U.S. Marshals Service.
Two Corporate Executives Found Guilty in First-Ever Criminal Prosecution for Failure to Report Under Consumer Product Safety ActRead the Press Release
LOS ANGELES – A jury has found two corporate executives guilty of federal criminal charges related to the distribution and sale of defective residential dehumidifiers linked to multiple fires in the first corporate criminal enforcement action ever brought under the Consumer Product Safety Act (CPSA), the Justice Department announced today.
Simon Chu, 68, of Chino Hills, and Charley Loh, 65, of Arcadia, were found guilty on Thursday afternoon of one count of conspiracy to defraud the United States Consumer Product Safety Commission (CPSC) and one count of failure to furnish information as required by the CPSA.
The defective dehumidifiers sold by Chu’s and Loh’s two corporations were included in multiple recalls of a larger number of defective dehumidifiers manufactured by Gree Electric Appliances Inc. of Zhuhai (Gree Zhuhai) in China. Recall notes stated that more than 450 reported fires and millions of dollars in property damage have been linked to the recalled Gree Zhuhai dehumidifiers. The most recent recall announcements for the Gree Zhuhai dehumidifiers can be found here.
According to evidence presented at a six-day trial, Chu was part owner and chief administrative officer of Gree USA Inc. and another corporation in the City of Industry, that distributed and sold to retailers for consumer purchase dehumidifiers that were made by Gree Zhuhai in China. Loh was part owner and CEO of the same two corporations.
The CPSA requires manufacturers, importers and distributors of consumer products to report “immediately” to the CPSC information that reasonably supports the conclusion that a product contains a defect that could create a substantial product hazard or creates an unreasonable risk of serious injury or death. This duty also applies to the individual directors, officers, and agents of those companies.
As early as September 2012, Chu, Loh and their companies received multiple reports that their Chinese dehumidifiers were defective, dangerous and could catch fire. They also knew that they were required to report this product safety information to the CPSC immediately. Despite their knowledge of consumer complaints of dehumidifier fires and test results showing defects in the dehumidifiers, Chu and Loh failed to disclose their dehumidifiers’ defects and hazards for at least six months while they continued to sell their products to retailers, for resale to consumers.
“It is critical to hold corporate executives accountable for misconduct,” said U.S. Attorney Martin Estrada. “The importation and sale of defective consumer products can lead to injury and death, and this verdict sends a clear message that putting profits over safety will not be tolerated.”
“Companies and their employees should immediately report known dangerous consumer products to the Consumer Product Safety Commission so the products can be recalled as soon as possible,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will prosecute companies and their employees when they willfully put the public in harm’s way by failing to report known dangerous products.”
“The safety of the American public is the top priority for HSI, and products like these can turn an ordinary purchase into deadly consequences.” said Special Agent in Charge Eddy Wang for Homeland Security Investigations Los Angeles. “HSI Los Angeles will continue to work diligently to ensure our supply chain is safe from products that can harm consumers.”
The jury acquitted both defendants of one count of wire fraud.
United States District Judge Dale S. Fischer scheduled a March 11, 2024 sentencing hearing, at which time Chu and Loh will face a statutory maximum sentence of five years in federal prison for each of the conspiracy and the failure to furnish information counts.
Gree USA was sentenced on April 24 to pay a $500,000 criminal fine after pleading guilty to failing to notify the CPSC about the problems with the dehumidifiers. The fine, along with provisions to pay restitution to victims, was part of a $91 million criminal resolution with Gree USA, Gree Zhuhai and another related Gree company, Hong Kong Gree Electric Appliances Sales Co. Ltd.
Homeland Security Investigations investigated this matter.
Assistant United States Attorney Joseph O. Johns of the Environmental Crimes and Consumer Protection Section and Trial Attorneys Speare Hodges, Natalie Sanders and Stephen Gripkey of the Civil Division’s Consumer Protection Branch are prosecuting this case, with the assistance of Patricia Vieira of the CPSC’s Office of General Counsel.
Two Corporate Executives Convicted in First-Ever Criminal Prosecution for Failure to Report Under Consumer Product Safety ActRead the Press Release
On Nov. 16, a Los Angeles jury convicted two corporate executives of conspiracy and failure to report information related to defective residential dehumidifiers that had been linked to multiple fires.
Simon Chu, 68, of Chino Hills, California, and Charley Loh, 65, of Arcadia, California, were convicted of conspiracy to defraud the U.S. Consumer Product Safety Commission (CPSC) and failure to furnish information as required by the Consumer Product Safety Act (CPSA).
The defective dehumidifiers sold by Chu and Loh’s two corporations were included in multiple recalls of a larger number of defective dehumidifiers manufactured by Gree Electric Appliances Inc. of Zhuhai (Gree Zhuhai) in China. According to the recall notices, more than 450 reported fires and millions of dollars in property damage have been linked to the recalled Gree Zhuhai dehumidifiers. The most recent recall announcements for the Gree Zhuhai dehumidifiers can be found here: www.cpsc.gov/Recalls/2017/Gree-Reannounces-Dehumidifier-Recall-Following-450-Fires-and-19-Million-in-Property-Damage-0 and here: https://www.cpsc.gov/Recalls/2023/Gree-Recalls-1-56-Million-Dehumidifiers-Due-to-Fire-and-Burn-Hazards-Reports-of-At-Least-23-Fires. The CPSC’s most recent warning about the recalled Gree Zhuhai dehumidifiers can be found here: www.cpsc.gov/Newsroom/News-Releases/2023/CPSC-Warning-Stop-Using-Recalled-Gree-Dehumidifiers-Due-to-Fire-Hazard-4-Deaths-May-be-Tied-to-Recalled-Units.
According to the indictment of Chu and Loh, Chu was part owner and chief administrative officer of Gree USA Inc. and another corporation in City of Industry, California, that distributed and sold to retailers for consumer purchase dehumidifiers that were made by Gree Zhuhai in China. Loh was part owner and chief executive officer of the same two corporations.
The CPSA requires manufacturers, importers and distributors of consumer products to report “immediately” to the CPSC information that reasonably supports the conclusion that a product contains a defect that could create a substantial product hazard or creates an unreasonable risk of serious injury or death. This duty also applies to the individual directors, officers and agents of those companies. The indictment alleged that as early as September 2012, Chu, Loh and their companies received multiple reports that their Chinese dehumidifiers were defective, dangerous and could catch fire. They also allegedly knew that they were required to report this product safety information to the CPSC immediately. Despite their knowledge of consumer complaints of dehumidifier fires and test results showing defects in the dehumidifiers, the indictment alleged that Chu and Loh failed to disclose their dehumidifiers’ defects and hazards for at least six months while they continued to sell their products to retailers, for resale to consumers.
“Companies and their employees should immediately report known dangerous consumer products to the Consumer Product Safety Commission so the products can be recalled as soon as possible,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will prosecute companies and their employees when they willfully put the public in harm’s way by failing to report known dangerous products.”
“It is critical to hold corporate executives accountable for misconduct,” said U.S. Attorney Martin Estrada for the Central District of California. “The importation and sale of defective consumer products can lead to injury and death, and this verdict sends a clear message that putting profits over safety will not be tolerated.”
“The safety of the American public is the top priority for HSI, and products like these can turn an ordinary purchase into deadly consequences.” said Special Agent in Charge Eddy Wang for Homeland Security Investigations (HSI) Los Angeles. “HSI Los Angeles will continue to work diligently to ensure our supply chain is safe from products that can harm consumers.”
The jury acquitted both defendants on one count of wire fraud.
Gree USA was sentenced in April to pay a $500,000 criminal fine after pleading guilty to failing to notify the CPSC about the problems with the dehumidifiers. The fine, along with provisions to pay restitution to victims, was part of a $91 million criminal resolution with Gree USA, Gree Zhuhai and another related Gree company, Hong Kong Gree Electric Appliances Sales Co. Ltd. This resolution is the first corporate criminal enforcement action ever brought under the CPSA.
HSI investigated the case.
Trial Attorneys Speare Hodges, Natalie Sanders and Stephen Gripkey of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Johns for the Central District of California prosecuted the case, with the assistance of Patricia Vieira of the CPSC’s Office of General Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Central District of California, visit www.justice.gov/usao-cdca.
Turtle Creek Man Sentenced to Prison for Escape from Federal Custody at Residential Reentry CenterRead the Press Release
PITTSBURGH, PA -- A resident of Turtle Creek Pennsylvania, has been sentenced in federal court to 18 months imprisonment and supervised release for 2 years on his conviction of violating federal laws regarding escape from imprisonment, United States Attorney Eric G. Olshan announced today.
United States District Judge Marilyn J. Horan imposed the sentence on Sean Johnson Jr., age 29, formerly of Turtle Creek, Pennsylvania.
According to information presented to the court, Johnson was serving the last portion of his 37-month federal prison sentence at the Renewal House, a half-way house designed to assist inmates’ re-integrate into society. Johnson received a work pass on July 20, 2022, but he did not return to the Renewal Center. He absconded from custody and eluded capture until October 19, 2022, when he was arrested by the McKeesport Police Department in connection with an unrelated matter.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Marshal Service for the investigation leading to the successful prosecution of Johnson Jr.
Todd County Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Todd County, South Dakota man convicted of Failure to Register as a Sex Offender. The sentencing took place on November 14, 2023.
Julian One Star, age 36, was sentenced to six months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
One Star was indicted for Failure to Register as a Sex Offender by a federal grand jury in June of 2023. He pleaded guilty on August 10, 2023.
In October of 2022, One Star was convicted of Abusive Sexual Contact in Rosebud Sioux Tribal Court. This conviction requires One Star to comply with the requirements of the Sex Offender Registration and Notification Act, including updating his registration within three business days of a change in residence address, employment status, or student status. Prior to One Star completing his jail sentence, Rosebud Sioux Tribe Sex Offender and Notification Act Compliance Officers met with One Star to complete his initial registration. One Star failed to update his registration after being released from custody on November 18, 2022, and his whereabouts were unknown until he was arrested on June 30, 2023.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Abby Roesler prosecuted the case.
One Star was immediately remanded to the custody of the U.S. Marshals Service.
Three Individuals Plead Guilty to Violating Federal Gun Control Act and Possessing Cars from Norfolk Southern RailyardRead the Press Release
NEW ORLEANS, LOUISIANA – QUINTRELL BROWN, age 19, NICKIE WHITLEY, age 35, and ERIN MURTHIL, age 21, all residents of New Orleans, pleaded guilty before U.S. District Judge Jay C. Zainey to charges in a 20-count indictment.
BROWN pleaded guilty on November 14, 2023, to conspiracy to possess cars stolen from the Norfolk Southern Automotive Distribution Facility (“Facility”), in violation of Title 18, United States Code, Section 371; possession of a car stolen from the Facility, in violation of Title 18, United States Code, Section 659; possession with intent to distribute tapentadol, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C); and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i).
According to court documents, BROWN was arrested in the French Quarter section of New Orleans on February 11, 2023. When NOPD officers attempted to stop him, he fled and threw a loaded Glock Model 19 handgun into a dumpster. When BROWN was apprehended, he had 60 tapentadol pills and over $2,500 cash in his pockets. Text messages from BROWN’s cell phone evidenced him selling tapentadol.
On March 27, 2023, several Ford vehicles were stolen from the Facility. That same day, BROWN performed internet searches for the exact models of Ford vehicles that were stolen. Although BROWN does not own a Ford vehicle, his cell phone connected to a “Ford Explorer” over 200 times between March 21 and April 3, 2023. BROWN was captured on surveillance video occupying a Ford Explorer Timberline on multiple occasions between March 27 and April 3, 2023.
WHITLEY and MURTHIL pleaded guilty on November 16, 2023. WHITLEY pleaded guilty to four counts, and MURTHIL pleaded guilty to two counts, of possessing a car stolen from the Facility in violation of Title 18, United States Code, Section 659. WHITLEY additionally pleaded guilty to being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). MURTHIL additionally pleaded guilty to possession of a machinegun, in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2).
According to court documents, law enforcement tracked a vehicle stolen from the Facility to a residence in the Seventh Ward section of New Orleans. On March 29, 2023, a Real Time Crime Center (RTCC) camera captured WHITLEY, MURTHIL, and three others leaving the residence dressed in dark clothing with hoods. That morning, a number of vehicles were stolen from the Norfolk Southern Automotive Distribution Facility, including a 2023 Ford F-150 Raptor, a 2023 Ford Bronco Sport Outer Banks, and a 2023 Lincoln Aviator. Later on, WHITLEY returned to the residence driving the Ford F-150 Raptor stolen from the Facility only 35 minutes earlier. Thereafter, MURTHIL arrived at the residence driving the stolen Lincoln Aviator, that already had a stolen Louisiana military honors license plate affixed to it. That same day, a window-tinting company tinted the windows of all three stolen vehicles in front of the residence. Over the next six days, WHITLEY and MURTHIL were captured on RTCC camera driving or occupying several of vehicles stolen from the Facility.
Further, WHITLEY was also seen on camera possessing a stolen Glock Model 19x handgun. MURTHIL’s cell phone was seized and searched pursuant to a search warrant. The phone contained a picture of MURTHIL holding a Glock Model 17 handgun with a machinegun conversion device and drum magazine attached to it while sitting in the driver’s seat of the stolen Lincoln Aviator. The stolen Glock 19x handgun, the Glock Model 17 with the machinegun conversion device, and the drum magazine were all recovered from the Seventh Ward residence. The Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted a function test of the Glock Model 17, with the machinegun conversion device, and confirmed that it functioned as a machinegun.
BROWN faces a maximum term of imprisonment of five years, up to a $250,000 fine, and up to three years of supervised release on the conspiracy count.
BROWN faces a maximum term of imprisonment of 20 years, up to a $1,000,000 fine, and a minimum of three years of supervised release, for possession with the intent to distribute tapentadol.
BROWN faces a mandatory minimum sentence of five years up to life imprisonment, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release, for possessing a firearm in furtherance of a drug trafficking crime.
BROWN, WHITLEY, and MURTHIL each face a maximum term of imprisonment of 10 years, up to a $250,000 fine, and up to three years of supervised release, on each count of possessing a vehicle stolen from the Facility.
WHITLEY faces a maximum term of imprisonment of 15 years, up to a $250,000 fine, and up to three years of supervised release, for being a felon in possession of a firearm.
MURTHIL faces a maximum term of imprisonment of 10 years, up to a $250,000 fine, and up to three years of supervised release, for possessing a machinegun.
Each count also carries 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.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Louisiana State Police, and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Berman of the Violent Crime Unit.
Tahlequah Resident Sentenced for Assault with Intent to Murder Law Enforcement and Federal Firearm OffenseRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bradley Joe Mouse, age 38, of Tahlequah, Oklahoma, was sentenced to 120 months in prison on four counts of assault with intent to commit murder. The terms will be served concurrently. Mouse was also sentenced to a consecutive term of 120 months in prison for one count of discharging a firearm during and in relation to a crime of violence.
The charges arose from investigations by the Cherokee Nation Marshal Service, the Cherokee County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Federal Bureau of Investigation.
On November 9, 2022, Mouse pleaded guilty to the offenses. According to investigators, on July 27, 2022, Mouse fired on tribal and county law enforcement officers who went to his residence to arrest him for an assault and battery allegedly committed the night before. The officers returned fire. Mouse fled on foot and was apprehended a few yards away hiding in a wooded area. The shotgun Mouse used in the shooting was recovered inside the house. The crimes occurred in Cherokee County, within the boundaries of the Cherokee Nation Reservation, in the Eastern District of Oklahoma.
“Law enforcement officers have a dangerous job, and when violent people use firearms the danger grows exponentially,” said United States Attorney Christopher J. Wilson. “Fortunately, in this instance, the officers were able to avoid injury and the defendant was apprehended. Combatting gun violence remains a priority of the Department of Justice, and the United States Attorney’s Office will continue to aggressively prosecute these type cases.”
The Honorable Ronald A. White, Chief Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Mouse will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Kevin Gross represented the United States.
Summerville Men Sentenced to Federal Prison for Trafficking Counterfeit GoodsRead the Press Release
CHARLESTON, S.C. — Raynard Smith, 42, and Lanard Smith, 42, of Summerville, were each sentenced to one year and one day in federal prison after pleading guilty to crimes involving the selling of counterfeit goods.
Evidence presented to the Court showed that both men operated store fronts and sold merchandise, to include sports jerseys, that had been imported from countries such as China, Hong Kong, Malaysia, Germany, Italy, and Taiwan. Both men knew that the goods they were purchasing and importing from these countries were counterfeit. Both men each had a prior felony conviction from 2008, which also stemmed from the trafficking of counterfeit goods.
“I commend the hard work of the special agents and officers in pursuing this case and bringing these fraudsters to justice,” said Ronnie Martinez, Special Agent in Charge for HSI Charlotte, which covers North and South Carolina. “HSI Charlotte is committed to working with our law enforcement and private industry partners to aggressively investigate trademark counterfeiting to protect consumers and ensure a level playing field for legitimate businesses.”
“Counterfeit goods pose a serious threat not only to businesses but also to consumer safety,” said U.S. Attorney for the District of South Carolina Adair F. Boroughs. “Our office along with our federal partners take these crimes seriously and will go after those who commit illicit activities that impact our marketplace. “
United States District Judge David C. Norton sentenced both Raynard Smith and Lanard Smith to one year and one day imprisonment, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. Lanard Smith was ordered to pay $130,341.99 in restitution and Raynard Smith was ordered to pay $14,992.17 in restitution.
This case was investigated by the Homeland Security Investigations. Assistant U.S. Attorney Amy Bower is prosecuting the case.
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St. Paul Man Sentenced to 14.5 Years in Prison for Multiple Armed Robberies of University Avenue Grocery StoresRead the Press Release
MINNEAPOLIS – A St. Paul man has been sentenced to 175 months in prison followed by five years of supervised release for three armed robberies of grocery stores located in St. Paul along University Avenue, announced U.S. Attorney Andrew M. Luger.
According to court documents, on three separate occasions between May 27 and June 5, 2022, Nicholas Antwain Dancy, 39, robbed three grocery stores located on University Avenue in St. Paul: Towfiq Grocery, Midway Grocery and Deli, and Global Food and Mid Market. During the robberies, Dancy used a firearm to threaten the employees and demand cash.
Dancy pleaded guilty on July 14, 2023, to three counts of Hobbs Act robbery and one count of brandishing a firearm during and in relation to a crime of violence. He was sentenced yesterday by Judge John R. Tunheim.
This case was the result of an investigation conducted by FBI and the St. Paul Police Department.
Assistant U.S. Attorneys Ruth S. Shnider and Jordan L. Sing prosecuted the case.
St. Augustine Serial Child Molester Convicted of Hacking Jumbotron, Child Exploitation Offenses, Sex Offender Registration Violations, and Firearm PossessionRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that a federal jury today found Samuel Arthur Thompson (53, St. Augustine) guilty of producing, receiving, and possessing child sex abuse material (CSAM), producing CSAM while required to register as a sex offender, violating the Sex Offender Registration and Notification Act (SORNA), sending unauthorized damaging commands to a protected computer, and possessing a firearm as a convicted felon. Thompson faces a minimum mandatory term of 35 years’ imprisonment. His sentencing hearing is scheduled for March 25, 2024. Thompson was first charged by criminal complaint in 2019.
According to evidence presented at trial, Thompson was convicted of sodomizing of a 14-year-old male child in 1998, in Alabama, and was therefore a convicted felon required to register as a sex offender, including reporting his international travel.
Thompson was hired as a contractor by the Jacksonville Jaguars around 2013 to consult on the design and installation of the Jaguars’ new video board network, referred to as a jumbotron, and later to operate the jumbotron on gamedays. Thompson’s contract with the Jaguars required him to report his conviction, but he did not. In January 2018, the Jaguars determined not to renew Thompson’s contract after learning of his conviction and status as a registered sex offender. Before the expiration of Thompson’s contract in March 2018, Thompson installed remote access software on a spare server in the Jaguars’ server room. He then remotely accessed computers that control the jumbotron during three 2018 season NFL games, causing the video boards repeatedly to malfunction, as shown below:
After conducting an investigation, the Jaguars determined that the outages were being caused by a malicious actor sending commands via the spare server. On December 16, 2018, the Jaguars set up a “honeypot” by putting the server on its own network and removing its access to the other computers that controlled the jumbotron. During the next NFL game, the spare server was again remotely accessed and attempted to be used to send commands to computers controlling the jumbotron. The Jaguars were able to capture the internet protocol (IP) address of the intruder – which the FBI traced to Thompson’s residence.
In July 2019, the FBI executed a federal search warrant at Thompson’s residence and seized a number of his computers. The FBI also seized a firearm from Thompson’s nightstand, which he was prohibited from possessing as a convicted felon.
Log files from Thompson’s iPhone, iPad, and two laptops showed that all those devices had been used to remotely access the spare server. Additionally, the FBI found thousands of images and hundreds of videos on Thompson’s personal devices depicting CSAM. This CSAM included images and videos depicting the sexual abuse of young children, bondage and torture of children, and bestiality. The CSAM also included a video and series of photos that Thompson produced in June 2019 depicting children that had been in his care and custody. Thompson’s voice could be heard speaking to the children at the beginning of the video, and the video was taken in Thompson’s living room.
Subsequent interviews of three male children that had been in Thompson’s care in 2019 revealed that Thompson had molested two of the children, exposed himself to two of the children, exposed children to CSAM, spoken to the children about sex and masturbation, and had encouraged the children to play a “game” wherein the children were required to take off their clothes and run around Thompson’s house. It was while the children (7, 8, and 10 years old at the time) were playing the “game” that Thompson produced CSAM. A review of Thompson’s iPad further revealed that he had been searching the dark web for CSAM at the time the FBI knocked on his door with the search warrant.
Thompson traveled to the Bahamas on a work trip from July 6 - 14, 2019. The next day, on July 15, 2019, Thompson registered as a sex offender and failed to report this travel as required by the Sex Offender Registration and Notification Act (SORNA). The same day, Thompson also received CSAM via the dark web.
On July 27, 2019, Thompson fled to the Philippines – once again failing to report his travel. Thompson’s passport was revoked, and he was deported from the Philippines on January 31, 2020. He was arrested by the FBI upon arrival in the United States and later ordered detained pending trial.
The evidence presented at trial also proved that certain assets the United States is forfeiting from the defendant, specifically, a Smith & Wesson firearm, an iPhone 7, an iPad, two laptop computers, and a custom-built desktop computer, were used in the offenses.
This case was investigated by the Federal Bureau of Investigation, the United States Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the St. Johns County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Laura Cofer Taylor, Brenna Falzetta, and Adam Duso. The asset forfeiture is being handled by Assistant United States Attorneys Mai Tran and Jennifer Harrington.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Southall Drug Distributor Sentenced in Federal CourtRead the Press Release
MOBILE, AL – A Mobile man was sentenced in federal court on November 9, 2023, for his participation in the Darrin Southall drug distribution organization. Lawrence Williams, 50, was initially arrested in a round-up of Southall’s organization in May of 2021. Williams pled guilty to the charge of conspiracy to possess with intent to distribute cocaine and heroin in August of 2021.
According to court documents, law enforcement officers were monitoring Southall’s phones pursuant to a court order. Calls between Southall and Williams were monitored and recorded as the conspirators planned for multiple deliveries of cocaine and arranged with other local distributors to pass it out to them. Williams was accountable for the distribution of 73 kilograms of cocaine and 3 kilograms of heroin.
United States District Court Judge Kristi K. Dubose imposed a sentence of 10 years in Williams’ case, to be followed by five years on supervised release after his release from custody. As conditions of supervision, Williams will undergo testing and treatment for drug and/or alcohol abuse, and he will be subject to a search of his person and premises upon reasonable suspicion. No fine was imposed but the judge ordered that the defendant pay $100 in special assessments. The judge ordered the forfeiture of a long list of property seized during the investigation.
The case was investigated by the Mobile Police Department, the Mobile County Sheriff’s Office, the Department of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Baldwin County Sheriff’s Office, the Alabama Law Enforcement Agency, the Saraland Police Department, the St. Tammany Parish, Louisiana, Sheriff’s Office, and the Drug Enforcement Administration. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.Six Indicted in COVID-19 HOPE Fraud Scheme that Allegedly Defrauded North Carolina Rental Assistance ProgramRead the Press Release
RALEIGH, N.C. – A federal grand jury in Greenville returned an indictment charging six individuals with mail fraud and conspiracy to commit mail fraud for their roles in an alleged scheme to obtain emergency rental assistance designated for households affected by the COVID-19 pandemic by filing at least 44 fraudulent North Carolina HOPE program applications, resulting in the disbursement of more than $279,000 in proceeds in connection with the scheme. The indictment was returned on September 14, 2023, and the final defendant was arrested and made his initial appearance today.
“The North Carolina HOPE program was meant to help struggling North Carolinians stay in their homes during an unprecedented public health emergency,” said U.S. Attorney Michael Easley. “Those who took advantage of our nation’s generosity to defraud this and other relief programs will face criminal prosecution.”
According to the indictment, between June 2021 and February 2022, it is alleged that the six defendants, and others they recruited, falsely claimed to be landlords on properties that they neither owned nor served as a landlord for to apply for rental assistance from the North Carolina HOPE program. The North Carolina HOPE program utilized federal funding to assist renters who faced housing insecurity due to the COVID-19 pandemic. Tenants applied for the program and eligible applicants and their landlords were provided an agreement certifying the accuracy of the application. Landlords participating in the program had to agree not to evict a tenant for a certain amount of time and were paid directly by the state.
The six defendants charged in the indictment are listed below. If convicted, defendants face up to thirty years for each count.
- Joe Lewis Jefferson, age 50, of Nashville is charged with 22 counts of mail fraud and one count of conspiracy to commit mail fraud.
- Danyael Davis Jefferson, age 50, of Nashville is charged with three counts of mail fraud and one count of conspiracy to commit mail fraud.
- Arkino Montrillis Williams, age 51, of Enfield is charged with four counts of mail fraud and one count of conspiracy to commit mail fraud.
- John Lee Bass, age 49, of Rocky Mount is charged with eight counts of mail fraud and one count of conspiracy to commit mail fraud.
- Timothy Kelvin Harvey, age 41, of Roanoke Rapids is charged with eight counts of mail fraud and one count of conspiracy to commit mail fraud.
- Douglas Roberson, age 34, of Rocky Mount is charged with four counts of mail fraud and one count of conspiracy to commit mail fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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-00293-D.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sioux Falls Man Sentenced to Federal Prison for Prohibited Possession of a FirearmRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on November 13, 2023, in Sioux Falls.
Elijah Darrell Lane, age 21, was sentenced to one year and six months federal prison, followed by three years of supervised release. He was also ordered to pay $100 as a statutorily required special assessment to the Federal Crime Victims Fund.
Lane was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in June of 2023. He pleaded guilty to Possession of a Firearm by a Prohibited Person on August 30, 2023.
According to court documents, on November 29, 2022, Lane, a convicted felon, knowingly had possession of a firearm.
This case was investigated by Homeland Security Investigations. Assistant U.S. Elizabeth Ebert prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Lane was remanded to the custody of the U.S. Marshals Service to continue serving his sentence.
Sinaloa Cartel Associate Sentenced to More Than Eleven Years in Prison for Conspiring to Traffic Cocaine in Chicago AreaRead the Press Release
CHICAGO — An associate of the Sinaloa drug cartel has been sentenced to more than eleven years in federal prison for conspiring to traffic at least 40 kilograms of cocaine in the Chicago area.
ROBERTO VELAZQUEZ MARTINEZ, 39, of Santiago Papasquiaro, Mexico, conspired with several individuals to import and distribute the cocaine into the United States on behalf of drug traffickers in Mexico. Velazquez traveled to Chicago in the fall of 2018 to arrange a multi-kilogram cocaine shipment with co-conspirators and two other individuals posing as Columbian drug traffickers who were actually working confidentially with U.S. law enforcement. Velazquez fled the U.S. after a failed cocaine deal in Stickney, Ill., on Dec. 4, 2018. He was arrested in 2019 in Peru and extradited to the U.S. in 2020.
Velazquez pleaded guilty earlier this year to a drug conspiracy charge. U.S. District Judge Joan Humphrey Lefkow imposed the 136-month prison sentence Tuesday after a hearing in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Sheila G. Lyons, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration. Valuable assistance was provided by the Justice Department’s Office of International Affairs, U.S. Customs and Border Protection, U.S. Marshals Service, and INTERPOL. The government was represented by Assistant U.S. Attorney Aaron R. Bond.
The investigation was conducted with the support of the Chicago HIDTA and OCDETF Task Forces, which are comprised of federal, state, and local law enforcement agencies working together to identify, disrupt, and dismantle the most serious drug trafficking organizations.
Velazquez was originally charged with four alleged co-conspirators. Three of the alleged co-conspirators are considered fugitives and warrants have been issued for their arrests, while the fourth, LOUIS REYES VELEZ, of Stickney, Ill., has pleaded not guilty to the charges and is awaiting trial.
Simon City Royals gang member sentenced to 30 years for racketeering conspiracyRead the Press Release
Oxford, MS - A Chattanooga, Tennessee man has been sentenced to more than 30 years in prison for a racketeering (RICO) conspiracy involving him and other members of the Simon City Royals gang.
On Thursday afternoon, U. S. District Judge Michael P. Mills sentenced Jonathan Davis, 39, to 365 months in prison, to be followed by five years of supervised release.
According to court documents, Davis was a leader and organizer of the Simon City Royals, a violent prison gang operating primarily in the Mississippi Department of Corrections, but with members and associates acting on their behalf outside of prisons throughout Mississippi, Louisiana, and elsewhere. Through an alliance with the violent Gangster Disciples gang and with a sophisticated structure, the Simon City Royals engaged in a host of criminal activities, including murder, attempted murder, assault, kidnapping, robbery, extortion, witness tampering, money laundering, interstate travel in aid of racketeering, large-scale drug trafficking, and fraud. Court records reflect that Davis personally ordered two murders, which were attempted at his request, and was involved in drug trafficking and money laundering.
The Simon City Royals engaged in widespread drug trafficking, including smuggling large quantities of methamphetamine, marijuana and synthetic marijuana, heroin, and benzodiazepines into dozens of Mississippi state prison facilities. The gang distributed these dangerous substances, including nearly 100% pure crystal methamphetamine, to inmates throughout the prison system.
“Our citizens have every right to expect that criminal gangs will be held accountable for their crimes,” said U.S. Attorney Clay Joyner for the Northern District of Mississippi. “The sentence imposed on Thursday on one of the leaders of the Simon City Royals is one step towards making our communities safer. Our office will continue to work with local, state and federal partners to see that violent gang members pay for their crimes.”
“ATF and its federal and local partners are dedicated to pursuing and combating those career criminals whose violent criminal activities threaten and severely detract from the welfare of our communities,” said ATF New Orleans Special Agent in Charge Joshua Jackson. “This is another example of our commitment to work tirelessly to protect our communities and hold accountable those who threaten our safety.”
This case has been investigated by ATF, DEA, U.S. Marshals Service, U.S. Secret Service, FBI Jackson Field Office, Mississippi Department of Corrections, and dozens of local law enforcement agencies across multiple states. The Tupelo Police Department, Marshall County Sheriff's Department, Benton County Sheriff's Department, and Tippah County Sheriff’s Department provided valuable assistance.
The case was prosecuted by Assistant U.S. Attorney Sam Stringfellow from the Northern District of Mississippi and Trial Attorney Ben Tonkin of the DOJ’s Violent Crime and Racketeering Section.
Sextortion of Maine Child Leads to 20 Years in Prison for Florida ManRead the Press Release
BANGOR, Maine: A Florida man was sentenced today in U.S. District Court in Bangor for sexually exploiting a child and distributing child sexual abuse material (“child pornography”).
U.S. District Judge Lance E. Walker sentenced Wesley Deal (aka “Wesley Troy Harris”), 43, to 20 years in federal prison followed by five years of supervised release. Deal pleaded guilty on April 7, 2023.
According to court records, beginning in August 2020, Deal posed as a teenage boy to engage with an 11-year-old from Maine through Instagram. Deal convinced the child to send him sexually explicit images and videos then threatened to post the child sexual abuse material on Snapchat and Instagram if the victim did not send more. During the investigation, law enforcement seized Deal’s cell phone. A forensic examination of the phone uncovered more than 700 child sexual abuse images as well as evidence of Google Hangouts chats similar to those Deal had with the Maine victim.
In sentencing Deal, Judge Walker said, "That type of terrorism would have left the victim in an ocean of despair. The trauma you imposed on this girl is something that she and her family will have to unpack for years.”
The U.S. Department of Homeland Security, Homeland Security Investigations (HSI) investigated the case with assistance of multiple local law enforcement agencies in Maine and Florida. U.S. Attorney Darcie McElwee also recognized the invaluable computer crimes expertise of forensics examiner Holly Huntington and Lieutenant Brent Beaulieu of the Bangor Police Department.
“It is far too easy for predators like Mr. Deal to hide behind fake profiles online to engage with and exploit children like this young victim,” McElwee said. “The internet makes children from across Maine accessible targets. It is so important for parents and guardians of children accessing the internet – whether it’s playing Roblox, Minecraft or simply believed to be engaging with their friends on social media – to talk to them regularly and warn them never to engage with anyone they haven’t met in real life and to never share intimate images, videos, or livestreams with anyone, even someone they know, love and trust.”
Reports of child sexual exploitation are increasing: In 2022, The National Center for Missing & Exploited Children (NCMEC) CyberTipline received 32 million reports of suspected child sexual exploitation. That included more than 80,000 reports of online enticement of children for sexual acts, an increase of 82% from 2021 to 2022, and more than 31 million reports of child sexual abuse materials. Victimization can take place across every platform, including social media, messaging apps, gaming platforms, etc. To make a CyberTipline Report, visit https://report.cybertip.org/. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
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Settlement with Purdue University for False Claims in Research Grant Applications to Federal AgenciesRead the Press Release
HAMMOND - United States Attorney Clifford D. Johnson and Purdue University announced a pre-suit settlement resolving allegations that an associate professor of Cancer Biology and Pharmacology in Purdue’s College of Veterinary Medicine falsified documentation provided to the National Institutes of Health and Department of the Army. The university will pay the government $737,391, to resolve allegations under the False Claims Act, which includes restitution and punitive damages.
Between February 2014 and June 2020, Dr. Alice C. Chang (formerly named Chun-Ju Chang) of West Lafayette, Indiana, formerly an Associate Professor of Basic Medical Sciences at Purdue University, falsified and fabricated data in two (2) published papers and in multiple (17) grant applications submitted to the National Institutes of Health and Department of the Army.
When the university received evidence from the U.S. Department of Health and Human Services calling into question the authenticity of research that Dr. Chang had included in submissions to federal agencies, Purdue University cooperated and thoroughly investigated the alleged misconduct. Purdue, based on its findings, agreed with the federal government that the funding was not deserved and should be returned.
“Academic integrity is the cornerstone of scientific research, and we take our commitment to protect U.S.-funded research grants seriously,” said U.S. Attorney Clifford D. Johnson. “Failure to be truthful on an application for U.S.-funded grants is a violation of the law and my office will continue to make it a priority to pursue cases to recover grant funds awarded through fraud.”
The U.S. Department of Health and Human Services Office of Research Integrity has also entered into a Voluntary Exclusion Agreement with Dr. Chang banning her from any contracting or subcontracting with any agency of the United States for ten years. As part of this agreement, she will also request that her published papers be corrected.
The settlement was reached as a result of an investigation by United States Attorney’s Office for the Northern District of Indiana with assistance from the Department of the Army Criminal Investigation Division and U.S. Department of Health and Human Services Office of Inspector General. The case was handled by Assistant United States Attorney Dirk D. De Lor.
Serial Sex Offender Sentenced to 5 Years in Prison for Possessing Child Sexual Abuse MaterialRead the Press Release
Burlington, Vermont - The United States Attorney’s Office stated that on November 17, 2023, Kenneth Bishop, 38, of Alburgh, Vermont was sentenced to a 5-year term of imprisonment, following his guilty plea to possessing child pornography, also referred to as child sexual abuse material. United States District Judge Christina Reiss also ordered Bishop to serve a 15-year term of supervised release following his release from prison.
According to court records, on September 29, 2022, while Bishop was on furlough status with the Vermont Department of Corrections, Vermont Probation and Parole Officers learned of complaints by an employee of a local spa regarding Bishop’s lewd behavior during a spa treatment. Vermont Probation and Parole confiscated Bishop’s phone, discovered evidence consistent with the complaint of the spa employee, and reincarcerated Bishop for violating the conditions of his furlough. A subsequent search of Bishop’s phone pursuant to a search warrant revealed an encrypted application on the phone. A forensic examination of the phone revealed images and videos depicting child sexual abuse which Bishop had stored within the encrypted application.
Bishop has prior State of Vermont convictions for lewd and lascivious conduct related to him intentionally exposing his penis to young children. The first instance occurred in February 2017 when Bishop victimized a 9-year-old girl in the toy aisle of a store in Morristown, and the second instance occurred in May 2017 when Bishop victimized a 10-year-old girl in the doll aisle of a toy store in Williston. Bishop also has a prior conviction in 2013 for engaging in prohibited acts stemming from a sexual relationship with a 15-year-old girl when he was 28 years old.
U.S. Attorney Nikolas P. Kerest commended the investigatory efforts of detectives of the Vermont Attorney General’s Office’s Criminal Division, agents of Homeland Security Investigations, and members of the Vermont Internet Crimes Against Children Task Force.
The prosecutor was Assistant United States Attorney Jonathan Ophardt. Bishop was represented by Jordana Levine, Esq.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and Child Exploitation Obscenity Section, Criminal Division (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Rutland Man Sentenced for Stolen Firearm OffenseRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont announced that Nicholas Karov, 40, of Rutland, Vermont was sentenced today to a 33-month term of imprisonment following his guilty plea to possession of a stolen firearm. Chief United States District Judge Geoffrey W. Crawford also ordered Karov to serve a three-year term of supervised release following his release from prison.
According to court records, on October 28, 2022, Karov reached into the open window of a Ford F-250 parked on Wales Street in Rutland, Vermont and removed a CMMG Banshee .45 caliber AR-style pistol with extended magazine from inside the truck. The owner of the vehicle and pistol approached and yelled to Karov, at which point Karov fled with the pistol on foot. The owner of the pistol tackled Karov, disarmed him of the stolen pistol, and detained him until law enforcement arrived at the scene. Karov had over 30 pending state court criminal cases at the time of the offense.
U.S. Attorney Nikolas P. Kerest commended the investigatory and collaborative efforts of Homeland Security Investigations, the Rutland City Police Department, and the Rutland County State’s Attorney’s Office.
Assistant United States Attorneys Jonathan Ophardt and Ray Sun prosecuted the case. Karov is represented by Federal Public Defender Michael Desautels.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
Robeson County Murder Suspect Accused of Shooting Sheriff Deputies Faces Federal Carjacking ChargesRead the Press Release
RALEIGH, N.C. – A Robeson County murder suspect accused of shooting two Robeson County Sheriff’s deputies now faces federal carjacking charges. A criminal complaint filed today alleges that Shawn Tobin Locklear, Jr., carjacked a vehicle with the intent to cause serious bodily injury. If convicted, Locklear faces up to 25 years in prison.
“The brave men and women of law enforcement put their lives on the line every day to keep our communities safe,” said U.S. Attorney Michael Easley. “Our office will bring swift prosecution against individuals who intentionally try to bring harm to those who have taken an oath to protect their communities. We are proud to partner with Sheriff Wilkins and District Attorney Matt Scott to address violent crime in Robeson County.”
“This is yet another example of the importance of working alongside our federal partners in such a way to bring violent offenders to justice,” says Robeson County Sheriff Burnis Wilkins. “The criminal complaint filed today by the U.S. Attorney’s Office is the first step in ensuring that this suspect is held accountable for his violent actions that have plagued this county for years.”
According to the complaint, Locklear is alleged to have shot and injured two Robeson County Sheriff’s deputies who were attempting to serve an arrest warrant on him. After being struck by gunfire, both deputies took cover behind their patrol car. Locklear is then alleged to have entered the driver’s side of the patrol car and put the car into reverse as one deputy was located on the ground behind the patrol vehicle. The deputy was able to push himself partially out of the way before Locklear reversed over his leg with the car. Locklear was able to drive away with the patrol vehicle and fled the scene. The incident was captured on the deputies’ body cameras.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement. The Robeson County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives are investigating the case, and Assistant U.S. Attorney Ashley Foxx is prosecuting the case.
A copy of this press release is located on our website. 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.7:23-CR-01286-RJ.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty.
Readout of the Justice Department’s Servicemembers and Veterans Initiative Program Honoring the Life and Legacy of Sgt. Isaac WoodardRead the Press Release
The Justice Department’s Servicemembers and Veterans Initiative (SVI), in partnership with the Department of Veterans Affairs’ Center for Minority Veterans, convened a program yesterday to honor our nation’s servicemembers for their sacrifices and contributions to our country.
In his opening remarks, Attorney General Merrick B. Garland welcomed attendees and recognized the significant achievements of our nation’s servicemembers and veterans to keep us safe, and highlighted the Justice Department’s efforts to safeguard the rights of members of the armed forces and their families. The Attorney General’s remarks focused attention on the many significant contributions of Sergeant Isaac Woodard, including his military service, and the civil rights advancements, including integration of the armed forces and federal government, sparked in reaction to the abhorrent abuse inflicted upon him.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division moderated a fireside chat with featured guest U.S. District Court Judge Richard Gergel for the District of South Carolina. In addition to his judicial service, Judge Gergel is the author of Unexampled Courage: The Blinding of Sgt. Isaac Woodard and the Awakening of America.
Sgt. Woodard was a decorated Black soldier who was honorably discharged after serving more than three years in the Pacific during World War II. On his journey home to North Carolina, he asked the bus driver to stop so that he could use the restroom. Instead of honoring Sgt. Woodard’s request, the bus driver launched a verbal tirade at him using racial slurs. Sgt. Woodard stood up for himself and asked to be treated with dignity and respect. The bus driver called the local police, and while still in uniform, Sgt. Woodard was arrested, brutally beaten, and blinded while in police custody in Batesburg, South Carolina.
During the fireside chat, Assistant Attorney General Clarke and Judge Gergel discussed this tragic story that served as a catalyst for significant advancements during the Civil Rights Movement. Specifically, Judge Gergel discussed the direct link between Sgt. Woodard’s story and President Harry S. Truman’s issuance of Executive Order 9981 banning segregation in the military, among other actions.
The program was moderated by SVI Director Nicole Siegel. It concluded with remarks from the Center for Minority Veterans Director James Albino. He discussed the center’s work to ensure all veterans receive equal service regardless of race, origin, religion, or gender.
Attendees included over 300 employees, including many veterans, from across the federal government, including the Departments of Justice, Veterans Affairs, Defense, Education, Labor, Housing and Urban Development, and many others.
The Servicemember and Veterans Initiative, housed in the Justice Department’s Civil Rights Division, works to ensure that the rights of the brave men and women of our nation’s armed forces, and the veterans who have served in the past, are safeguarded from discrimination and unfair treatment. To learn more about the Justice Department’s Servicemember and Veterans Initiative, please visit Servicemembers and Veterans Initiative.
Attorney General Garland delivers opening remarks at the program. Assistant Attorney General Clarke delivers remarks at the program. Assistant Attorney General Clarke and Judge Gergel participate in a fireside chat.Rapid City Man Convicted at Jury Trial of Conspiring to Sell Methamphetamine and Illegal Possession of a Firearm and AmmunitionRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a jury has convicted Sam Boyd, age 35, of Rapid City, South Dakota, of Conspiracy to Distribute 500 grams or more of methamphetamine, Felon in Possession of a Firearm, and Felon in Possession of Ammunition following a four-day jury trial in federal district court in Rapid City. The verdict was returned on November 2, 2023.
The charges carry a mandatory minimum penalty of 10 years in custody and a maximum penalty of life in custody and a $10,000,000 fine, five years up to life of supervised release, and a $300 special assessment to the Federal Crime Victims Fund.
Boyd was indicted by a federal grand jury in February of 2022.
In the fall of 2020, Boyd began obtaining methamphetamine from a co-conspirator in Colorado Springs, Colorado. The methamphetamine was either mailed or transported to western South Dakota on multiple occasions. Boyd then distributed the methamphetamine to others for use and to further sell. Throughout the conspiracy, Boyd routinely possessed multiple firearms and ammunition, despite being legally prohibited from doing so due to a prior felony conviction.
This case was investigated by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Unified Narcotics Enforcement Team, which is local drug task force comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
A presentence investigation was ordered and a sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshals Service.
Quincy Man Sentenced to Five Years in Prison for Child Pornography OffenseRead the Press Release
BOSTON – A Quincy man was sentenced in federal court in Boston yesterday for receiving child pornography.
Matthew Ormon, 51, was sentenced by U.S. District Court Judge Denise J. Casper to five years in prison followed by five years of supervised release. In July 2023, Ormon pleaded guilty to one count of receipt of child pornography.
During a search of Ormon’s residence on April 5, 2022, multiple electronic devices, including two custom built computers and a network drive device were seized. At least one device was found to contain a folder with numerous videos depicting child pornography. Some of these files involved minor females performing sex acts on adult males.
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. Special assistance was provided by the Quincy Police Department. Assistant U.S. Attorney Charles Dell’Anno of the Criminal Division prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Priest Sentenced to Life in Prison for Sex Trafficking Three Victims in Northern OhioRead the Press Release
A priest was sentenced today to life in prison for sex trafficking in northern Ohio.
A federal jury in Toledo, Ohio, previously found defendant Michael Zacharias, 56, guilty of five counts of sex trafficking following a two-week trial in May. Evidence presented at trial showed that Zacharias met the victims through his affiliation with a Catholic school. The evidence showed that he used his affiliation and position of authority to groom the boys and grow close with their families before ultimately coercing the victims into engaging in commercial sex acts and manipulating the opioid addictions they developed.
“Michael Zacharias used his position as a trusted spiritual leader and role model for young boys and their families to exploit them in the most insidious ways, coercing his victims from childhood and beyond to engage in commercial sex with him,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence sends a very clear message that those who abuse their positions of power and authority to sexually assault and exploit children will be held accountable. The Justice Department stands ready to fully enforce our federal human trafficking statutes while seeking justice for the survivors of these treacherous crimes.”
“Michael Zacharias’ victims trusted him, as a spiritual advisor, a confidant, a community leader and someone in a position of authority. He exploited his position and that trust to target and victimize young boys and their families, causing lasting damage to both,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Zacharias was held accountable because of the courageous testimony of these young men, who gave voice to his betrayal and abuse, relieved this unimaginable horror and withstood Zacharias’ predictable attempts at trial to attack their veracity. I applaud the bravery of these young men, the people who supported them and the dogged efforts of the assigned FBI agent, who together exposed this predator, masquerading as a man of faith. Although no amount of time can ever wholly repair the damage that Zacharias inflicted on his victims, the life sentence that he received today is a significant step toward finding justice and protecting our community. It sends a message to others who consider similar conduct that the U.S. Attorney’s Office will aggressively pursue charges against those who target our children.”
“For more than two decades, Michael Zacharias used his position as a priest to groom and abuse young boys,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Zacharias met his victims when they were as young as five and began exploiting them for commercial sex acts and enabling their resulting opioid addictions. We are profoundly thankful to the victims and families who reported Zacharias and helped the FBI and our partners put an end to further abuse.”
“Using a position of trust while deviously preying on one’s vulnerabilities, especially juveniles, is reprehensible,” said Special Agent in Charge Greg Nelsen of the FBI Cleveland Field Office. “The FBI has zero tolerance for sexual predators and those who commit crimes against children. We will continue to find and investigate individuals and their network who exploit and traffic children and seek justice for the victims and their families.”
Evidence presented at trial, including the testimony of victims and family members, established that the defendant met the victims when they were minor parochial school students through his affiliation with their school. The evidence showed that the defendant served as a respected member of the clergy for more than 20 years, while exploiting his victims over extended periods as they developed opioid addictions and criminal records.
According to testimony and other evidence presented at trial, including financial and phone records, the defendant manipulated the victims’ fears of opioid withdrawal and homelessness to exploit them for commercial sex acts he directed them to perform in exchange for money.
The FBI Cleveland Field Office, Lima and Toledo Resident Agencies investigated the case.
Assistant U.S. Attorney Tracey Tangeman for the Northern District of Ohio and Trial Attorney Lindsey Roberson of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.