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Thursday 16 November 2023
Leader of Machine Gun Switch Distribution Conspiracy Sentenced to 70 Months in Federal PrisonRead the Press Release
U.S. Attorney Mark Totten commits to prioritize cases involving the distribution of switches, which are fueling the national gun violence epidemic
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Torez Burnett, 21, of Benton Harbor, was sentenced to 70 months in federal prison. Burnett imported machine gun conversion devices, or “switches,” from China and distributed them to members of his street gang, My Brother’s Keeper (MBK), and others in Benton Harbor and Grand Rapids. When installed, switches convert semiautomatic handguns into fully automatic machine guns that can fire a thousand rounds of ammunition per minute.
“Switches pose an extremely dangerous risk to our communities, our children, our law enforcement officers, and anyone who stands in the way of their indiscriminate spray,” said U.S. Attorney Mark Totten. “A year ago, switches were seldom seen. Now they’re everywhere. My office will use every resource we have to disrupt the gun trafficking rings bringing these lethal devices into our communities.”
On December 15, 2022, the U.S. Attorney’s Office for the Western District of Michigan announced charges against 10 defendants, including Burnett. On May 11, 2023, Burnett pleaded guilty to the charge of conspiracy to possess and transfer machine guns and the charge of possession and transfer of a machine gun. Burnett distributed switches to buyers in at least Benton Harbor and Grand Rapids. Some of his buyers included fellow members of MBK. The previous press release can be viewed by visiting the following link: Eleven Men Face Drug And Firearm Charges, Including For Sale Of “Switches” That Turn Semi-Automatic Pistols Into Fully Automatic Machineguns.
The nine other defendants have also pleaded guilty. The court has sentenced six of them:
Defendant
Sentence
Jayvon Anthony
84 months
Demarcus Greely
38 months
Nicholas Hallo
46 months
Demitrius Seuell
33 months
Omarion Branch
38 months
Eric Williams
24 months
Sentencing hearings for Timothy Thomas and Quincy Bowman are scheduled for November 29, 2023. The Court has not yet scheduled sentencing for Armando Villanueva.
“Holding those accountable who flood our streets with illegal weapons is a huge step forward in curtailing the violence in our community,” said Benton Harbor Director of Public Safety Daniel McGinnis. “We thank our local, state, and federal partners for their dedication and commitment to working together to ensure the safety of Benton Harbor residents."
“Mr. Burnett and other defendants from the My Brother’s Keeper (MBK) gang are rightfully facing appropriate consequences for their violent and reckless behavior in importing machine gun conversion devices into our community,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “Thanks to the efforts of the Benton Harbor Safe Streets Task Force and our law enforcement partners, a dangerous criminal enterprise that directly threatened Michigan residents was disrupted. The FBI is committed to removing dangerous criminals from our communities and will continue to work with our partners to achieve the goal of a safer Michigan."
“Machine gun conversion devices are a threat to our community and public safety. They are not toys and cannot be imported illegally from China,” said ATF Detroit Special Agent in Charge James Deir. “Mr. Burnett chose to illegally import these devices from China and through his excessive greed, he chose to arm known gang members with fully automatic machine guns. In the end, Mr. Burnett will have a considerable amount of time in prison to reflect on his poor decision making.”
This case was investigated by the Federal Bureau of Investigation, Benton Harbor Department of Public Safety, Berrien County Sherriff’s Department, Homeland Security Investigations, Michigan State Police, Benton Charter Township Police Department, Pokagon Band Tribal Police Department, Grand Rapids Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Michigan Department of Corrections and the U.S. Postal Inspection Service.
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Lancaster County Woman Convicted of Conspiracy to Distribute CocaineRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Moniqua Ramirez, age 44, of Lancaster, Pennsylvania, was convicted of conspiracy to distribute cocaine following a three-day jury trial before U.S. District Court Judge Jennifer P. Wilson that concluded on November 15, 2023.
According to United States Attorney Gerard M. Karam, Ramirez conspired with others to smuggle kilograms of cocaine into Central Pennsylvania through the U.S. Mail. The cocaine was shipped in Puerto Rico and mailed to various drop locations in Lancaster, where the parcels were retrieved by conspirators for further distribution. They also engaged in street level drug trafficking, including selling heroin and fentanyl to customers. The conspirators transported cash back to Puerto Rico in furtherance of the trafficking.
Ramirez’s coconspirators, Ricardo Soto, Jonathan Lopez Arizmendi, Ricky Sanchez, Angel Leon-Rivera, Omar Carmenaty Morales, and Lucas Doel Gonzalez-Alvarado, pleaded guilty. On January 19, 2023, Ricardo Soto was sentenced to 46 months in prison. Jonathan Arizmendi, Ricky Sanchez, Angel Leon-Rivera, Omar Carmenaty Morales, and Lucas Doel Gonzalez-Alvarado are awaiting sentencing.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the U.S. Drug Enforcement Administration (DEA), the Pennsylvania State Police, the United States Postal Inspection Service, Lancaster County Drug Task Force and York County Drug Task Force. Assistant U.S. Attorneys Michael Consiglio and Christian Haugsby are prosecuting the case.
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Lakeland Man Sentenced to Federal Prison for Role in Construction-Related Wire Fraud ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Steven D. Merryday has sentenced Ramon Paz (53, Lakeland) to 33 months in federal prison for conspiracy to commit wire fraud. The court also entered an order of forfeiture in the amount of $500,731, the proceeds of the wire-fraud conspiracy. Paz had pleaded guilty on February 8, 2023.
According to court documents, Paz owned and managed a construction company which purported to supply construction services and labor for construction contractors and subcontractors. In order to comply with Florida law, Paz’s company was required to secure and maintain adequate worker’s compensation insurance coverage. Paz’s company had agreements with contractors and subcontractors to use workers purported to be Paz’s employees at construction sites, and these workers were often undocumented aliens who were actually working for and under the daily supervision and direction of the contractors. Paz or others would then regularly receive “payroll checks” from contractors that were cashed at various financial institutions to pay Paz’s purported “employees” and other related expenses.
During the time period charged, Paz falsely and fraudulently represented in insurance applications that his company had a very limited payroll and a very limited number of employees who worked on construction jobsites. Paz also falsely and fraudulently sent wire communications to numerous contractors representing that his company’s “employees” had full worker’s compensation coverage.
In reality, Paz’s company received and cashed more than $21 million in checks from various construction contractors for these purported “employees.” These payroll figures far exceeded the very limited payroll figures that Paz had reported to his worker’s compensation insurance company. As a result, these employees, in reality the employees of other entities, performed work on jobsites without adequate insurance coverage. In addition, the insurers lost premiums they would have charged had they been aware of the true number of workers their policies were thus being manipulated to cover.
As a result of these misrepresentations, Paz’s company also disclaimed responsibility for ensuring that jobsite workers were legally authorized to work in the United States and that required state and federal payroll taxes were being paid for these workers. The contractors who actually paid these workers’ wages and used their services were thus also able to avoid responsibility for those duties as well.
This case was investigated by Homeland Security Investigations (HSI) and the Florida Department of Financial Services. It is part of a lengthy investigation by those agencies into the use of shell companies and “ghost” employees in the construction industry. It was prosecuted by Assistant United States Attorney Jay L. Hoffer.
Kilogram Drug Trafficker in Robeson County Sentenced to 25 YearsRead the Press Release
RALEIGH, N.C. – A Maxton man was sentenced yesterday to 300 months in prison for his role in a drug trafficking conspiracy responsible for moving kilograms of methamphetamine, cocaine, and heroin from Mexico to Robeson County. Antonio Lavonne Locklear pled guilty to conspiracy to distribute methamphetamine, cocaine, and heroin, and possession of methamphetamine, cocaine, and heroin with intent to distribute.
“Our ongoing partnership with the Robeson County Sheriff’s Office has secured this 25-year sentence for a large-scale drug trafficker bringing kilogram quantities of narcotics from Mexico into Robeson County,” said U.S. Attorney Michael Easley. “Narco-traffickers should be warned. The partnership between local law enforcement and federal agencies has never been stronger or more focused on dismantling drug trafficking organizations.”
“The sentencing of Locklear will have a huge positive impact within the Prospect community of Robeson County and beyond,” said Robeson County Sheriff Burnis Wilkins. “The punishment Locklear received should be an eye opener to others that continue to wreak havoc on our county. Thank you to the U.S. Attorney’s Office and ATF for the partnership as we continue to try and make our county safer.”
According to court documents and other information presented in court, Locklear, age 38, was identified during a multi-year investigation into a group of Robeson County-based individuals who were trafficking kilograms of controlled substances from Mexico into the Brownsville, Texas, area. Investigators learned that members of this drug trafficking organization would travel to Texas, cross the border to meet with suppliers, and then personally transport kilograms of drugs across the border and ultimately back to Robeson County, where the drugs would be sold. During the investigation Robeson County Sheriff’s Office deputies conducted a March 2020 search warrant at one of Locklear’s stash houses and collected over 400 grams of cocaine.
On October 14, 2020, the Robeson County Sheriff’s Office conducted a traffic stop on a rental vehicle occupied by Locklear and two other individuals as they returned from Texas. Investigators located 2.3 kilograms of methamphetamine, 2.98 kilograms of cocaine, 967.7 grams of heroin, and more than $58,000 in U.S. currency inside the spare tire of the vehicle.
In the spring of 2021, investigators began to receive information that members of the drug trafficking organization had resumed traveling to Texas to pick up controlled substances from the same suppliers. Through coordination with the Drug Enforcement Administration and Customs and Border Patrol, co-defendant Jeremiah Eli Lowery was stopped at a border checkpoint near Brownsville, Texas on the way back into the United States from Mexico on April 8, 2021. After a canine alerted to the presence of narcotics within the vehicle, officers recovered 2.8 kilograms of cocaine and 1.8 kilograms of methamphetamine from the spare tire. Lowery has previously been sentenced to 252 months imprisonment for his role in the conspiracy.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Robeson County Sheriff’s Office, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case and Assistant U.S. Attorney Caroline Webb prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-59-D-2.
Justice Department and Department of Education Announce Successful First Year of New Student-Loan Bankruptcy Discharge ProcessRead the Press Release
WASHINGTON – The Justice Department, in close coordination with the Department of Education, announced today a successful first year of the new process for handling cases in which individuals seek to discharge their federal student loans in bankruptcy. One year after Associate Attorney General Vanita Gupta announced the process in November 2022, data and information show that the process is achieving its goals of ensuring consistency and equity in the evaluation of student loan discharge requests, and that the process has translated into increasing numbers of eligible federal student loan borrowers seeking and obtaining debt relief under the Bankruptcy Code.
The departments finalized new guidance in November 2022 that outlined a fairer, more accessible process to ensure consistent treatment of the discharge of federal student loans, reduce the burden on borrowers of pursuing such proceedings, and facilitate identifying cases where discharge is appropriate. At the time, both the departments committed to assessing the guidance after the first year of implementation. To do so, the Justice Department surveyed all 94 U.S. Attorneys’ Offices and consulted closely with the Department of Education to gather data and comments on the process. A dedicated group of experts within the Civil Division also collected input on the new process from consumer law groups, including the National Association of Consumer Bankruptcy Attorneys. Finally, the Civil Division has conducted large-scale trainings for Department attorneys, as well as public training events supported by regional bar associations and the courts, including most recently a training session hosted by the American Bankruptcy Institute that was attended by over 300 consumer bankruptcy attorneys. The Department of Education also participated in training events hosted by regional bar associations, as well as at the annual meeting of the National Association of Chapter 13 Trustees (NACTT), which included private attorneys as well as Chapter 13 trustees.
The information that the departments have collected indicates that the new process is making it easier for eligible debtors to achieve bankruptcy discharge of their federal student loan debts. Since the process was announced one year ago:
- 632 cases were filed in the first 10 months of the new process (November 2022 through September 2023), a significant increase from recent years. The departments anticipate that this trend will continue.
- 97% of all borrowers in the cases filed are voluntarily using the new streamlined process.
- The vast majority of borrowers seeking discharge have received full or partial discharges. In 99% of cases where courts have entered orders or judgments to date, the government recommended, and the court agreed to, a full discharge or partial discharge.
- Two bankruptcy courts — the Northern and Central Districts of California — have adopted procedures recognizing the utility of the new process, aimed at further streamlining the procedures debtors must follow to obtain discharges.
“One year ago, we set out to simplify and improve the process for student loan borrowers in bankruptcy,” said Associate Attorney General Gupta. “I am thrilled that our one-year review indicates that our efforts have made a real difference in borrowers’ lives by ensuring student-loan discharges are more accessible to eligible borrowers. We will continue working with our partners at the Department of Education to ensure the process continues to be a success.”
“It is clear that this improved process is helping struggling borrowers,” said Chief Operating Officer Rich Cordray of the Department of Education's Office of Federal Student Aid. “This guidance is an important piece of our overall efforts to create a student loan system that is more humane, with affordable payments and programs that work as intended. In partnership with the Justice Department, we will continue working to streamline this process and to provide student loan borrowers a pathway to obtaining much-needed relief in bankruptcy.”
Because the new process is working well, the Justice Department is not making any changes to the guidance at this time. The departments will continue to meet regularly to ensure that the guidance is appropriately implemented and to consider adjustments as warranted. Subject-matter experts in the Civil Division plan to continue to promote awareness of and provide training on the guidance both within and outside the government. The departments will also continue to conduct outreach to the broader community potentially affected by the process.
Justice Department Secures Agreement with New York City Health Care System to Resolve Allegations of Employment DiscriminationRead the Press Release
The Justice Department announced today that it has secured a settlement agreement with New York City Health and Hospitals Corporation (NYCHH), which provides health care services to more than one million New Yorkers. The agreement resolves the department’s determination that NYCHH violated the anti-discrimination provision of the Immigration and Nationality Act (INA) when it rejected a worker’s valid work authorization document based on the worker’s national origin.
“Employers cannot reject valid documents showing someone’s permission to work based on the country the person was born in,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Federal civil rights law protects workers from discrimination that can occur when employers are checking their permission to work. The Justice Department will continue to hold accountable employers that treat workers differently because of where they were born or their national origin.”
The department’s investigation determined that NYCHH unlawfully rejected a worker’s valid employment authorization document (EAD), which was automatically extended through a notice in the Federal Register applicable to those with Temporary Protected Status (TPS). The department determined that NYCHH rejected the valid document and delayed the onboarding of the worker based on its incorrect assumption that the worker’s country of birth listed on her EAD had to be the same as the country designated for TPS.
TPS is a temporary immigration benefit that allows qualified individuals from designated countries to stay in the United States for a limited time period due to conditions in the designated country, such as on-going armed conflict, environmental disaster or other extraordinary and temporary conditions. Workers with TPS, like all workers, have the right to provide their choice of valid documentation to demonstrate their permission to work. Federal Register notices that automatically extend a TPS worker’s permission to work explain that the worker does not have to show additional documentation or prove their citizenship status, and that the country of birth listed on the worker’s documentation does not have to match the TPS-designated country.
Under the terms of the agreement, NYCHH will pay back pay to the affected worker to compensate for lost wages that the department determined the worker was eligible for due to the discrimination. It will also pay a civil penalty to the United States, train its staff on the anti-discrimination provision of the INA, review and revise its employment policies and training materials and be subject to departmental monitoring for three years.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee, unfair documentary practices and retaliation and intimidation.
Find more information on how employers can avoid discrimination when verifying someone’s permission to work on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Individuals with TPS who have questions about their rights can find more information on IER’s website. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify), or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a live webinar or watch an on-demand presentation or visit IER’s English and Spanish websites. Subscribe for email updates from IER.
nychh_settlementagreement_05.01.pdfJustice Department Secures Agreement with Arizona Prison System Resolving Discrimination Against Incarcerated People with Vision DisabilitiesRead the Press Release
The Justice Department announced today that the Arizona Department of Corrections, Rehabilitation, and Reentry (ADCRR) has agreed to adopt systemwide reforms to correct and prevent discrimination against incarcerated people with vision disabilities.
The agreement resolves the Justice Department’s findings that ADCRR violated Title II of the Americans with Disabilities Act (ADA) by discriminating against incarcerated individuals with vision disabilities, including those who are blind or have low vision. The department found that ADCRR failed to reasonably modify its policies or provide auxiliary aids and services, such as Braille materials and displays, audio recordings and screen reader software, to ensure that people with vision disabilities could communicate effectively while incarcerated. ADCRR failed to provide accessible processes to request accommodations or file disability-related complaints. ADCRR also over-relied on other incarcerated people to help individuals with vision disabilities without properly training or supervising those providing help.
“People with vision disabilities held in jails and prisons should not be subjected to a higher risk of harm or exposed to greater restrictions than their sighted peers,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “They should not be denied trained aides, or accessible technology and materials that allow them to participate in work, education and recreation programs. This agreement embodies the Justice Department’s commitment to ensuring that prisons and jails throughout the country, respect and protect the rights of all people detained inside these facilities, including those with vision disabilities.”
“This agreement is a critical step towards giving Arizonans with vision disabilities an equal chance to benefit from prison programs and to successfully reenter society,” said U.S. Attorney Gary Restaino for the District of Arizona. “We appreciate Director Thornell’s leadership and ADCRR’s willingness to proactively work with the Justice Department to address our concerns. We look forward to continuing to collaborate to make the Arizona prison system more just, more equal and more genuinely rehabilitative for Arizonans with disabilities.”
Under the three-year agreement, ADCRR will retain an expert third-party consultant to help revise its policies and practices, train its personnel and provide necessary modifications, aids and services and assistive technology to people with vision disabilities in ADCRR custody. ADCRR will regularly report to the department and adopt robust screening and documentation procedures to ensure people with vision disabilities are provided with any aids and services they need throughout their incarceration. ADCRR will also designate a systemwide ADA Administrator and facility ADA coordinators to ensure consistent implementation of the agreement across all state facilities.
The Civil Rights Division’s Disability Rights Section handled this matter in collaboration with the U.S. Attorney’s Office for the District of Arizona.
The Justice Department plays a central role in advancing the ADA’s goals of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities, including people who are incarcerated. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.
Justice Department Launches New Interagency Language Access Working GroupRead the Press Release
The Justice Department announced today the launch of the Federal Language Access Working Group, a new interagency effort that will coordinate language access across the federal government. Along with the creation of this working group, the Department also announced the release of updated federal agency language access plans on its website, www.LEP.gov, on the one-year anniversary of the Attorney General Merrick B. Garland’s language access memorandum to federal agencies.
In November 2022, Attorney General Garland directed federal agencies to revise their language access plans, share best practices, and exchange information about language access initiatives and efforts in compliance with Executive Order 13166, “Improving Access to Services for Persons with Limited English Proficiency.” Today marks the release of the first batch of those updated plans with additional federal agencies posting updated plans in the coming months.
“Our government serves all Americans better when we ensure that language barriers do not stand in the way of participation in civic life,” said Attorney General Garland. “Today, I’m pleased to share that more than a dozen federal agencies have answered my call to re-examine the ways in which they are addressing these barriers through the release of updated language access plans and policies aimed at ensuring that government programs remain accessible to all. The Justice Department will continue to support agencies in implementing their language access plans and their broader efforts to close the language gap across federal programs and services.”
“Everyone in the country should be able to exercise their rights, obtain critical information and access benefits and services that they are eligible for, regardless of the language they speak, read or write,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The updated language access plans released today lay out the steps that federal employees are taking to ensure that people with limited English proficiency are provided real and meaningful access to federal programs and activities. These plans also equip federal employees with the information they need to communicate accurately and effectively with all communities.”
The Federal Language Access Working Group will serve as a central resource for providing support and technical assistance to federal agencies as they work to implement their updated language access plans. The working group will also directly engage with community groups, individuals with limited English proficiency, and other stakeholders to ensure adherence with Executive Order 13166 and other federal language access obligations. The working group will also focus on ensuring that recipients of federal funds comply with their language access obligations under federal law. The Attorney General’s memorandum called upon agencies to consider additional ways in which agencies can ensure that federal financial assistance recipients understand and comply with their obligations to provide meaningful language access under the requirements of Title VI of the Civil Rights Act of 1964 and its implementing regulations.
Today’s announcement builds on the Justice Department’s longstanding commitment to advancing language access. The Civil Rights Division recently issued a fact sheet on courts language access in coordination with a webinar for state courts. The division also launched the Law Enforcement Language Access Initiative, a nationwide effort to assist law enforcement agencies in meeting their obligations to provide meaningful language access.
Pursuant to the Attorney General’s November 2022 memorandum, the Justice Department issued its revised Language Access Plan in August, which can be found here. Spanish, Simplified Chinese, Traditional Chinese, Vietnamese, Korean, Tagalog, Arabic, and French translations are also available. The Office for Access to Justice’s Language Access Program coordinates implementation of the Department’s revised plan, provides training and technical assistance to Department components, expands language access resources, and promotes improved language access policies and practices in compliance with the Department’s plan. The program’s Language Access Coordinator chairs the Department’s Language Access Working Group, a Department-wide effort to implement the Department’s plan.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt and information about limited English proficiency and Executive Order 13166 is available at www.LEP.gov.
Justice Department Finds Oklahoma Mobile App Inaccessible to People with Vision DisabilitiesRead the Press Release
The Justice Department announced today its findings that Service Oklahoma violated Title II of the Americans with Disabilities Act (ADA) by maintaining a mobile application that is inaccessible to individuals with vision disabilities.
In a letter issued to Service Oklahoma, the department detailed its findings following its investigation of a complaint filed by an Oklahoma resident who is blind and could not access the Oklahoma Mobile ID Application (OK Mobile ID App).
Service Oklahoma’s OK Mobile ID App allows users to store their identification on a smartphone and use it in many contexts where a person would normally use a physical driver’s license or other state-issued ID. This includes applying for unemployment benefits and paying for purchases at retail stores. It can also be used to start an application for a REAL ID, which will be required in the future for such things as boarding domestic flights, visiting military bases or entering specific federal buildings.
“Public entities, like Service Oklahoma, are increasingly using mobile apps to offer a wide range of critical government services, yet people with disabilities often face significant barriers accessing them,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “In Oklahoma, the OK Mobile ID App provides users with important benefits such as additional convenience, security and privacy. We will fully enforce the law to ensure that when public services are made available through technology such as mobile apps, those services are equally accessible to people with disabilities.”
The department found that the OK Mobile ID App imposes critical accessibility barriers for people with vision disabilities. To use the OK Mobile ID App, people must scan or take photos of their identification cards and take pictures of themselves by connecting the dots that appear on the screen using only head and eye movements. Both tasks are difficult or impossible for individuals who are blind to do without receiving any verbal feedback. Thus, Service Oklahoma violates the ADA by denying people with vision disabilities equal access to the OK Mobile ID App and by failing to ensure that communications with them are as effective as communications with others.
This letter is part of the Civil Rights Division’s Tech Equity Initiative to combat disability discrimination that occurs through technology, such as in websites and mobile apps. For more information on the ADA, please call the department’s toll-free ADA information line at 800-514-0301 (TTY 833-610-1264) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt. Complaints may be filed online at www.civilrights.justice.gov/.
Justice Department Files Civil Rights Lawsuit Against Maine Landlord for Sexually Harassing TenantsRead the Press Release
The Justice Department filed a lawsuit today against Fred Wheeler, of Manchester, Maine, for sexually harassing female tenants and housing applicants in violation of the Fair Housing Act (FHA). Wheeler has managed residential rental properties in Lewiston, Maine, and other central Maine municipalities since at least 2016.
The lawsuit, filed in the U.S. District Court for the District of Maine, alleges that since at least 2016, Wheeler subjected female tenants to unwelcome sexual contact and comments about their physical appearances; entered rental units without consent; conditioned a tenant’s rental agreement on a romantic relationship; and offered to forgive unpaid rent in exchange for sex acts. The lawsuit also names Landscape Center of Maine Inc., the property owner, as a defendant.
The lawsuit seeks monetary damages to compensate persons harmed by the alleged harassment, civil penalties to vindicate the public interest and a court order barring future discrimination.
“No one should live in fear in their home because of their landlord’s sexual harassment and predatory conduct,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “No one should be denied access to housing because of their refusal to accept a landlord’s sexual demands. The Justice Department stands ready to hold accountable any landlord who preys upon vulnerable tenants and those seeking housing.”
“I urge any other tenants alleging discrimination by Mr. Wheeler to contact my office,” said U.S. Attorney Darcie N. McElwee for the District of Maine. “A home should be a sanctuary. No one should be subjected to sexual harassment under any conditions, but particularly not by the person responsible for providing safe and secure housing. The Justice Department and my office will hold accountable any property owners who engage in sexual harassment and will enforce fair housing laws designed to protect against this and other discriminatory conduct.”
The FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. It also prohibits sexual harassment, a form of sex discrimination. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental properties owned or managed by Fred Wheeler, or who have other information that may be relevant to this case, may contact the Justice Department by calling the U.S. Attorney’s Office for the District of Maine at 207-780-3257 or emailing [email protected].
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative in October 2017, the department has filed 37 lawsuits alleging sexual harassment in housing and recovered over $10.8 million for victims of such harassment. The Civil Rights Division is committed to protecting people from sexual misconduct.
wheeler_complaint_november_16.pdfIsraeli Hacker-For-Hire Sentenced to 80 Months in Prison for Involvement in Massive Spearphishing CampaignRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that AVIRAM AZARI was sentenced today to 80 months in prison for computer intrusion, wire fraud, and aggravated identity theft in connection with his involvement in a massive computer-hacking campaign targeting companies and individuals in the U.S. and around the world. AZARI was arrested on these charges in September 2019 while traveling to the U. S. from abroad and has been detained since his arrest. U.S. District Judge John G. Koeltl imposed today’s sentence.
U.S. Attorney Damian Williams said: “From his home in Israel, Aviram Azari played a major role in orchestrating and facilitating an international hacking-for-hire spearphishing campaign. The conspiracy targeted individuals and companies in the U.S. and abroad, resulting in the theft of data and netting Azari over $4.8 million in criminal proceeds. Today’s sentencing sends an unmistakable message about my Office’s firm commitment to prosecuting hackers, domestic and foreign alike.”
According to the allegations contained in the Indictment to which AZARI pled guilty, public court filings, and statements made during court proceedings:
From approximately November 2014 to September 2019, AZARI engaged in an extensive spearphishing campaign that targeted individuals and companies in the U. S. and around the globe. AZARI owned and operated an Israeli intelligence firm. Clients hired AZARI to manage “Projects” that were described as intelligence gathering efforts but were, in fact, hacking campaigns specifically targeting certain groups of victims, including climate change activists and individuals and financial firms that had been a critical part of the German payment processing company Wirecard A.G. AZARI paid different hacking groups, including a particular group located in India, to send spearphishing emails to victims of the various Projects. The hacking groups updated AZARI on their progress, including sending him lists that tracked their hacking efforts against specific victims. The hackers also sent AZARI reports, advising when they were successful in accessing victims’ accounts and stealing information.
One of AZARI’s hacking Projects was focused on targeting individuals and organizations involved with climate change advocacy. Some of the hacked documents that were stolen from various of the victims’ online accounts were leaked to the press, resulting in articles relating to the New York and Massachusetts Attorneys Generals’ investigations into Exxon Mobil Corporation’s knowledge about climate change and potential misstatements made by Exxon regarding what it knew about the risks of climate change.
Clients of AZARI’s Israeli private intelligence company paid AZARI more than approximately $4.8 million over a nearly five-year period for managing the intelligence gathering and spearphishing campaign. AZARI executed his crimes deliberately and over an extended period primarily for his own self-enrichment. Some of AZARI’s thousands of victims have described the devastating personal, financial, and reputational impact AZARI’s crimes had on them. Victims have described the persistent and relentless targeting of them and their associates, as well as the theft of their identities and personal data, as “psychological assault” that has caused them “anxiety, paranoia, depression, sleeplessness, and fear,” and the victims have expressed continued concerns for their personal safety.
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AZARI, 52, of Kiryat Yam, Israel, pled guilty to one count of conspiracy to commit computer hacking, one count of wire fraud, and one count of aggravated identity theft. In addition to his prison term, AZARI was sentenced to three years of supervised release and was ordered to pay forfeiture of $4,844,968.
Mr. Williams praised the outstanding investigative efforts of the Federal Bureau of Investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Juliana N. Murray and Olga Zverovich are in charge of the prosecution.
Indianapolis Man Sentenced to Five Years in Federal Prison for Manufacturing Counterfeit CurrencyRead the Press Release
INDIANAPOLIS- Jacob Seyfried, 47, of Indianapolis, has been sentenced to five years in federal prison after pleading guilty to manufacturing counterfeit currency.
According to court documents, on November 13, 2021, a Carmel Police Department Officer initiated a traffic stop on a Cadillac with stolen license plates near 96th street. The driver was Jacob Seyfried. Seyfried stated that he had been released from jail about six days prior and had been staying at the nearby Clarion Hotel. He claimed that he borrowed the Cadillac and just finished shopping at Kohls.
The Carmel officer searched the vehicle and found a $100 bill under the console that appeared brighter in color than normal. The officer also found several receipts on the floorboard of the vehicle, a paper shredder in the trunk, and a Kohl’s shopping bag containing a Nike coat and backpack.
The officers searched Seyfried’s person and removed a wad of fifty-dollar bills. Seyfried told officers he had about $400 in cash on him at the time. Officers examined the money and noticed that most of the bills had the exact same serial number. Officers recovered a total of $300 in counterfeit $100 and $50 bills. Officers went to Kohl’s and recovered the bills that Seyfried used to pay for his purchases, which were also counterfeit. A $50 bill Seyfried used at Kohls had the same serial number as the counterfeit bills police later found on his person.
At the Clarion Hotel, law enforcement officers searched the room Seyfried checked out of that morning. During their search, they located items used to manufacture counterfeit bills, including gel pens, double-sided tape, a water proofer, a printing paper booklet, several articles of ink and paint, and two printers. Officers also recovered eight pages of printed, counterfeit $100 bills, and four pages of printed counterfeit $50 bills.
Seyfried has a lengthy criminal history including convictions for forgery, possessing a handgun as a convicted felon, and a prior federal conviction for mail fraud. He was caught with a counterfeit title for a stolen, $50,000 Dodge Charger while on pretrial release in this case.
“Undeterred by multiple convictions and jail time, Mr. Seyfried continued to use fraud and deceit to line his pockets,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Creating counterfeit currency is not a victimless crime, it harms everyone in our economy-stealing income from businesses and raising prices for consumers. The serious prison sentence here demonstrates that fraudsters and forgers will face serious punishment for economic crimes. I commend the Carmel Police Department and the U.S. Secret Service, along with our federal prosecutor, for their diligent work to ensure that this criminal is held accountable.”
“The sentencing in this case is a testament to the outstanding work of the Carmel Police Department,” said Jeffrey R. Adams, Special Agent in Charge of the U.S. Secret Service Indianapolis Field Office. “We would like to thank the U.S. Attorney’s Office and the Carmel Police Department for their partnership in this investigation.”
The Carmel Police Department and U.S. Secret Service investigated this case. The sentence was imposed by U.S. District Court Judge James P. Hanlon. Judge Hanlon also ordered that Seyfried be supervised by the U.S. Probation Office for 3 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Adam J. Eakman, who prosecuted this case.
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Health Insurance Fraudster Pleads Guilty in El Paso Federal CourtRead the Press Release
EL PASO, Texas – An El Paso man pleaded guilty in a federal court in El Paso to one count of wire fraud.
According to court documents, Daniel Steadley, 68, operated two companies in El Paso which marketed and sold a healthcare insurance plan known as the Unique Healthcare MEC Plan. Steadley sold the insurance plan under false claims that it complied with the requirements of the Patient Protection and Affordable Care Act (ACA). He also falsely claimed that he was a lawyer who had previously overseen an elite team of lawyers while working for a U.S. Senator at the White House, and that he had been a commander in the Navy, as well as a SEAL team member.
Several purchasers of Steadley’s fraudulent Unique Plan suffered injuries or had diseases that required hospitalization or other medical attention. When these individuals attempted to use their Unique Plan card, hospitals and other providers did not recognize the plan and there was no coverage of their medical bills. Several Unique Plan members received medical bills that were significant, ranging from hundreds of dollars to more than $100,000. Approximately 2,600 individuals in the El Paso area purchased the Unique Plan between Dec. 1, 2014 and Aug. 31, 2020. The investigation identified $974,193.68 in victim losses.
Steadley faces up to 20 years in prison for one count of wire fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The FBI and Texas Department of Insurance are investigating the case.
Assistant U.S. Attorney Chris Skillern and Michael Osterberg are prosecuting the case.
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Hammond Woman Pleads Guilty to Cares Act FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that TRACIE L. MIXON, age 42, of Hammond, LA, pleaded guilty before U.S. District Court Judge Susie Morgan to a bill of information for making false statements related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
On March 27, 2020, The CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans backed by the U.S. Small Business Administration (SBA) to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
According to court documents, MIXON made false statements on an SBA form to an approved lender on or about February 23, 2021, to fraudulently obtain a PPP loan. MIXON affirmed that she had not been previously convicted of federal program financial assistance fraud when, in truth, she pled guilty, in the Eastern District of Virginia, to conspiracy to commit federal student loan fraud and mail fraud in a scheme that involved stolen identities.
Sentencing will be on March 12, 2023. At that time, MIXON faces a sentence of up to five years in prison, up to $250,000 in fines, and up to three years of supervised release for her false statements. MIXON must also pay a $100 mandatory special assessment fee after conviction.
For more information on the Department of Justice’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.
U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit is in charge of the prosecution.
Grand jury indicts 4 Ecuadorian nationals with running national theft ringRead the Press Release
DAYTON, Ohio -- A federal grand jury has indicted four Ecuadorian nationals with crimes related to stealing jewelry and Apple products at retail centers in multiple states to then resell the items on the black market.
Those charged include Alexander Wilson Diaz-Remache, 39; Jonathan Eduardo Remache-Diaz, 33; Alvaro Oswaldo Loaiza-Alvarez, 27; and Gustavo Daniel Vinueaza-Bueno, 36. The defendants are scheduled to appear in federal court today.
“This office will seek to hold accountable anyone stealing from and endangering the hard-working men and women who deliver our goods and mail. Whether it be UPS, FedEx, the U.S. Postal Service, or any other deliverer, we will not tolerate attacks against individuals simply doing their jobs,” said U.S. Attorney Kenneth L. Parker.
According to the indictment, between January and September 2023, the defendants conspired to steal interstate shipments and transported stolen goods in interstate commerce.
It is alleged three of the defendants entered the United States on travel visas and established California as a base of their illegal activities with Diaz-Remache. From their California base, the coconspirators would allegedly travel by plane and car to other states, including Ohio, Virginia and Maryland, in search of malls and retail centers housing Apple stores, jewelry stores and other businesses.
The defendants would allegedly establish surveillance at these retail centers and track deliveries from UPS, FedEx and other common carriers to learn their delivery patterns. The men then allegedly stole the goods on the delivery vehicles, repackaged them, and mailed them back to California to eventually resell them on the international black market. After saturating an area with thefts of interstate shipments, the coconspirators relocated their efforts, often moving from state to state.
In the Southern District of Ohio, the men allegedly performed surveillance of a FedEx delivery truck at the Greene Town Center in Beavercreek on Sept. 19. One defendant allegedly attempted to distract the delivery driver in a hallway while the other three forced entry into the delivery truck, stealing 300 Apple watches.
A few days later, on Sept. 22, the four defendants allegedly began surveillance of a UPS truck at the Mall at Fairfield Commons in Beavercreek with the intent to steal the interstate shipment within it.
Other thefts alleged in the indictment include approximately $300,000 in diamonds and other jewelry from a UPS truck in Rockville, Maryland, and thousands of dollars in jewelry from a UPS truck in Fairfax, Virginia.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Beavercreek Police Chief Jeff Fiorita. Deputy Criminal Chief Brent G. Tabacchi is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Grand Jury Indicts Bakersfield Man for Firearms TraffickingRead the Press Release
FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Joshua Ruic Kimball, 40, of Bakersfield, charging him with trafficking in firearms, unlawful transfer of firearms in violation of the National Firearms Act, and unlawful transfer of firearms in violation of state law, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Kimball was the owner of Show Off Sports LLC, a licensed firearms dealer in Bakersfield. Through his shop, Kimball sold firearms illegally, including short-barrel rifles and silencers. He did not require background checks, firearms registration, or any paperwork for the firearms sales. More than 100 firearms traced back to Kimball have been recovered in connection to crimes in California, Nevada, Arizona, and Mexico.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorneys Robert L. Veneman-Hughes and Stephanie M. Stokman are prosecuting the case.
If convicted, Kimball faces a maximum statutory penalty of 15 years in prison for trafficking in firearms, 10 years in prison for unlawfully transferring firearms in violation of the National Firearms Act and five years in prison for unlawfully transferring firearms in violation of state law, and a fine up to $250,000 for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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 U.S. Department of Justice 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.
Fourteen Defendants Indicted in $5 Million California State Unemployment Fraud SchemeRead the Press Release
NEWS RELEASE SUMMARY – November 16, 2023
SAN DIEGO – An indictment partially unsealed today charges 14 defendants with fraud and money laundering offenses for a scheme centered around fraudulent unemployment applications submitted to the California Employment Development Department during the pandemic. The indictment alleges the fraud netted the defendants almost $5.2 million in funds from the state of California.
According to the indictment, David Constantin and Constantin Bobi Sandu, who was arrested and charged separately in March 2023, helped hundreds of applicants apply for EDD benefits using fraudulent documents. Constantin and Sandu recruited potential applicants through Facebook and met applicants at parks throughout Southern California to complete the application process. Applicants paid Constantin or Sandu a partial fee up front for assisting with fraudulent applications and another fee after applicants received EDD payments.
The indictment alleges that from July 2020 to August 2022, Constantin transmitted more than $128,000 in fraud proceeds to associates in Romania. Another defendant who fraudulently obtained EDD benefits with Constantin’s help, Eduard Buse, transmitted almost $129,000 to Romania in the same period. Buse also purchased a 2020 BMW X6 with over $105,000 in cash fraud proceeds in December 2022 and shipped the vehicle to Romania. Several other defendants also transmitted fraud proceeds to accounts in Romania.
David Constantin was arrested in Romania at the request of the United States on November 13th by Romanian authorities who also served search warrants and seized, among other things, the BMW with California license plates. The Department of Justice will seek Constantin’s extradition to the United States. Buse and defendants Leonard Miclescu, Constantin Iosif Constantin and Florentina Sima were arrested in California and Texas. Nine other defendants remain at large.
This case is being prosecuted by Assistant U.S. Attorneys Jessica Adeline Schulberg and Valerie Chu with assistance from the Department of Justice’s Office of International Affairs, FBI's Legal Attaché in Bucharest, and Romanian authorities including the Directorate for Combating Organized Crime (DCCO) Service for Countering of Organized Criminal Groups, Brigade for Combating Organized Crime (BCCO) – Pitești, County Service for Countering Organized Crime – Teleorman, Romanian Gendarmerie Battalion, Romanian Ministry of Justice, and Romanian Criminal Investigative Directorate - Fugitive Unit.
DEFENDANTS Case Number 23CR2090-LAB
David Constantin Age: 27 Arges County, Romania
aka Vlad Alexandru
Eduard Buse Age: 30 Transient, Romanian
Leonard Miclescu Age: 49 Transient, Romanian
Constantin Iosif Constantin Age: 30 Transient, Romanian
Florentina Sima Age: 29 Transient, Romanian
*Additional defendants are not in custody and their names are redacted
SUMMARY OF CHARGES
Title 18, U.S.C. § 1349 — Conspiracy to Commit Wire Fraud
Title 18, U.S.C. § 1343 — Wire Fraud
Maximum penalty: Thirty years in prison, $1 million fine
Title 18 U.S.C. § 1956(h) — Conspiracy to Launder Monetary Instruments
Title 18 U.S.C. § 1956(a)(2)(A) — Laundering of Monetary Instruments
Title 18 U.S.C. § 1956(a)(2)(B)(i) — Laundering of Monetary Instruments
Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater
AGENCY
Federal Bureau of Investigation
San Diego Police Department Economic Crimes Unit
IRS Criminal Investigation
California Employment Development Department Investigative Division
Department of Labor Office of Inspector General
U.S. Department of Homeland Security
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Four Inmates Sentenced to Prison for Possessing Weapons at FCI BeckleyRead the Press Release
BECKLEY, W.Va. – Today, inmates Rico Salguero, 40, Jamal Brooks, 26, and Jarvis Burl, 26, were each sentenced to one year and one day in prison and inmate John Durant, 34, was sentenced to one year and three months in prison for possession of a weapon by an inmate at a federal prison. Today’s sentences will run consecutive to the prison terms the inmates are currently serving, and will be followed by three years of supervised release.
According to court documents and statements made in court, each inmate admitted to possessing a handcrafted weapon commonly known as a “shank,” at the Federal Correctional Institution (FCI) Beckley in separate incidents on the following dates: Salguero on December 9, 2022; Brooks on January 7, 2023; Burl on February 22, 2023; and Durant on April 10, 2023.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 5:23-cr-105 (Salguero), 5:23-cr-103 (Brooks), 5:23-cr-101 (Burl), and 5:23-cr-102 (Durant).
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Four Indicted on Federal Charges for Fraudulent Vehicle Sale SchemeRead the Press Release
EAST ST. LOUIS, Ill. – Four St. Louis men are facing multiple federal charges for their alleged actions in a scheme to use fake cashier’s checks to buy vehicles from private sellers online, to then resell for profit.
The 11-count indictment charges Alen Saric, 35, Valentino Colic, 32, Emad Hasanbegovic, 33, and Almir Palic, 24, with multiple felonies including conspiracy to commit wire fraud and aggravated identity theft.
“Many people use the internet to sell personal property, but unfortunately, scammers also use the internet as a tool to defraud and steal,” said U.S. Attorney Rachelle Aud Crowe.
According to court documents, the codefendants participated in a scheme to defraud vehicle sellers on Facebook and Craigslist with fake cashier’s checks from 2018 until August 2023. Once the fraudsters possessed a vehicle, they would then resell the vehicle to another individual for cash before the original victim could try to cash the check and realize it was worthless.
“The conspiracy as outlined in the indictment is yet another example of criminals using fake checks to defraud victims,” said FBI Springfield Field Office Special Agent in Charge David Nanz. “The FBI advises the public to not assume checks are genuine when received from individuals not previously known. Such caution should be exercised whether the check appears to be cashier’s, official, or certified. Criminals are skilled at creating fake checks that look real, so protect yourself by either going to the bank that issued the check to confirm its authenticity or waiting until the check clears your bank before turning over property or otherwise transferring funds.”
To keep their names out of the chain of title, the indictment alleges the codefendants used the names of prior victims to buy and sell the vehicles and to complete documents such as titles and bills of sale. When posing as the victims, they often used victims’ photo IDs.
The fraudsters bought vehicles from victims in Madison, Jasper, Bond and Fayette counties within the Southern District of Illinois. The indictment alleges the co-conspirators issued more than $1 million in fake cashier’s checks.
For allegedly transferring the vehicles from Illinois to Missouri, Colic and Saric are also charged with interstate transportation of stolen goods.
An indictment is merely a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Conspiracy to commit wire fraud is punishable by up to 20 years’ imprisonment, and interstate transportation of stolen goods is punishable by up to 10 years’ imprisonment.
FBI Springfield Field Office, the Metro East Auto Theft Task Force, Missouri State Highway Patrol, Illinois State Police, Illinois Secretary of State Police, Jefferson County (Missouri) Sheriff’s Department and several local police departments contributed to the investigation. Assistant U.S. Attorney Peter T. Reed is prosecuting the case.
Former San Francisco Venture Capitalist Convicted of Multiple Fraud and Money Laundering ChargesRead the Press Release
OAKLAND – Michael Brent Rothenberg, a former San Francisco venture capitalist once described in Bloomberg as “Silicon Valley’s Party Animal,” was convicted today of wire fraud, money laundering, bank fraud, and making false statements to a bank by a federal jury, announced Criminal Division Chief Thomas C. Colthurst, Federal Bureau of Investigation Special Agent in Charge Robert Tripp, and Acting Special Agent in Charge of Internal Revenue Service- Criminal Investigation Mark Silva. The guilty verdicts followed a seven-week jury trial before the Hon. Jon S. Tigar, U.S. District Judge. All told, the evidence introduced at trial established that Rothenberg’s schemes resulted in approximately $18.8 million in missing money.
The jury found that Rothenberg, 39, committed wire fraud with respect to a number of investments from investors in two of the venture capital funds that he managed in 2015 and 2016. In addition, the jury found that Rothenberg committed wire fraud in February 2016 with respect to a $2 million investment made in a company he owned named Bend Reality LLC (which did business as River Studios), and that he thereafter committed money laundering by transferring a large portion of those proceeds through various bank accounts. Finally, the jury found the defendant guilty of committing bank fraud and making false statements to a bank in relation to a line of credit that Rothenberg obtained for his venture capital management company from Silicon Valley Bank in late 2015.
Evidence at trial showed that Rothenberg founded a venture capital management company, Rothenberg Ventures Management Company, LLC (“RVMC”), that he used between 2012 and 2018 to raise and manage four annual venture capital funds. The purpose of the funds was to invest in Silicon Valley start-up companies, and particularly companies in the field of virtual reality technologies. The evidence also showed that in approximately 2015, Rothenberg founded River Studios for the purpose of producing content to be used in virtual reality headsets. The evidence presented at trial showed that, throughout 2015 and 2016, Rothenberg told his employees, fund investors, and the investor into River Studios that River Studios had been “self-funded” by him and that no venture capital funds had been used to fund the operations of that company. The evidence showed, however, that Rothenberg misappropriated a large amount of venture capital fund money to pay for River Studios’ operations during that period. In addition to using venture capital funds to pay for River Studios’ operations, the evidence also showed that Rothenberg routinely took excess fees from the venture capital funds that he managed throughout 2015 and 2016 and that investors’ funds were routinely used for purposes other than as represented to fund investors, such as to pay for RVMC’s operating expenses and to secure a line of credit taken out from Silicon Valley Bank by RVMC in late 2015.
In addition to defrauding investors in two of the venture capital funds that he managed, the jury also found Rothenberg guilty of defrauding an investor with respect to a $2 million investment that the investor made into River Studios in February 2016. The evidence at trial showed that Rothenberg falsely told that investor that he had “self-funded” River Studios and that he falsely told that investor that its investment would be used for particular purposes, when, in fact, Rothenberg knew that he needed a large portion of that investor’s investment to pay back money he had misappropriated at the end of 2015 from two of the venture capital funds that he managed. The evidence showed that those repayments, in addition to other transactions, constituted instances of money laundering.
With respect to the line of credit RVMC obtained from Silicon Valley Bank, the evidence at trial showed that, because of the excess money he took from one of the venture capital funds, Rothenberg faced a shortfall at the end of 2015 that he did not wish to report to his investors. The evidence presented at trial showed that, accordingly, Rothenberg engaged in a scheme to defraud Silicon Valley Bank by making false statements and misrepresentations to the bank to obtain a $4 million line of credit to pay back the fund from which he had taken excess fees.
A federal grand jury indicted Rothenberg in August 2020. He was charged with bank fraud, in violation of 18 U.S.C. § 1344; making false statements to a bank, in violation of 18 U.S.C. § 1014; wire fraud, in violation of 18 U.S.C. § 1343; and money laundering, in violation of 18 U.S.C. § 1957.
Rothenberg is currently on pretrial release pursuant to an unsecured bond. Judge Tigar scheduled Rothenberg’s sentencing hearing for March 1, 2024. The maximum statutory penalty for each count in violation of 18 U.S.C. § 1344 and 18 U.S.C. § 1014 is 30 years of imprisonment and a fine of $1,000,000. The maximum penalty for each count in violation of 18 U.S.C. § 1343 is 20 years of imprisonment and a fine of $250,000. The maximum penalty for each count in violation of 18 U.S.C. § 1957 is 10 years and a fine of $250,000. However, any sentence will be imposed by the court 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. Attorneys Kyle F. Waldinger, Nicholas J. Walsh, and Benjamin K. Kleinman are prosecuting the case with the assistance of Beth Margen, Megan Pagaduan, and Isabel Trevizo. The prosecution is the result of a lengthy investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation.
Former Potosi Police Officer Pleads Guilty to Child Sex Trafficking, Other ChargesRead the Press Release
ST. LOUIS – A former Potosi, Missouri police officer on Thursday admitted providing cash, vape cartridges and other items to three male minors for nude pictures or after performing sex acts on the victims.
Matthew N. Skaggs, 40, pleaded guilty in front of U.S. District Judge Matthew T. Schelp to three felony charges: sex trafficking, solicitation of child pornography and coercion and enticement of a minor.
In Thursday’s plea hearing, Skaggs admitted that between Jan. 1, 2022 and Aug. 10, 2022, he provided vape cartridges, alcohol, CBD and THC to a 13-year-old boy in exchange for nude pictures of the boy. Skaggs also gave the victim vape cartridges after groping him in a police vehicle at a kindergarten center while Skaggs was wearing his police uniform. Skaggs also gave the boy vape cartridges in a middle school boys’ bathroom.
Skaggs repeatedly offered money to another boy when he was between the ages of 14 and 16 for sex, and asked for a received a picture of the boys’ genitals, his plea agreement says.
Skaggs also admitted performing a sex act on a third victim, aged 17, twice, and then providing money and alcohol to the minor. Between June 13, 202 and July 14, 2022, Skaggs paid the boy amounts ranging from $5 to $75 via Cash App. Skaggs also gave the boy cigarettes and vape pods.
At the time of his arrest, Skaggs was attending training to become a school resource officer.
Skaggs is scheduled to be sentenced Feb. 14, 2024.
As part of the plea agreement, prosecutors have agreed to recommend a sentence of no more than 300 months in prison. The sex trafficking and coercion charges are each punishable by a minimum of 10 years in prison and a maximum of life. The solicitation of child pornography charge carries a minimum five-year term and a maximum of life in prison. All also are punishable by a fine of up to $250,000.
Skaggs has also agreed to forfeit electronic devices including an iPad, two cell phones and storage devices.
The Missouri State Highway Patrol investigated the case. Assistant U.S. Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Needham Police Officer Sentenced for Insider Trading ConspiracyRead the Press Release
BOSTON – A former Needham police officer was sentenced yesterday for conspiring to trade on inside information about a Massachusetts company’s planned acquisition of a California semiconductor company.
David Forte, 60, of Acton, was sentenced by U.S. District Court Judge Allison D. Burroughs to one year of supervised release, with the first six months to be served in home confinement. Judge Burroughs also imposed a $25,000 fine. Forte was charged in January 2022 along with co-conspirators John Younis and Gregory Manning. In June 2023, Forte was convicted by a federal jury of one count of conspiracy to commit securities fraud and one count of securities fraud.
Beginning in or around June 2016, Forte obtained material non-public information from his brother, who was a senior executive at Analog Devices, Inc. (Analog), a Massachusetts-based semiconductor company, about Analog’s planned acquisition of Linear Technology Corp. (Linear), a semiconductor company based in Milpitas, Calif. Forte passed the information to Younis and Manning and proposed that the two purchase Linear securities and share their trading profits with him. To avoid detection, Forte did not trade Linear securities in his own name, and he advised Younis not to buy Analog securities because of his brother’s role at the company.
Over the course of the week leading up to the public announcement of the acquisition on July 26, 2016, Forte exchanged numerous phone calls with Younis and Manning, and Younis and Manning amassed Linear securities – sometimes trading within minutes of phone calls with Forte. After the announcement of the deal, which caused Linear’s share price to increase by 30 percent, Younis and Manning sold their Linear securities for a profit and later paid Forte a share of the money they made from trading on Forte’s stock tip.
In June 2022, Younis was sentenced by U.S. Senior District Court Judge Rya W. Zobel to one month of home detention and two years of probation after pleading guilty to his role in the conspiracy. Manning pleaded guilty in October 2023 and is scheduled to be sentenced on Jan. 3, 2024.
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. The Securities & Exchange Commission provided valuable assistance. Assistant U.S. Attorneys David M. Holcomb and Leslie A. Wright of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Former General Motors Manager Found Guilty of Conspiring to Receive Bribe from Foreign Parts Supplier Seeking ContractRead the Press Release
LOS ANGELES – A former manager at General Motors was found guilty by a jury today of conspiring to solicit and receive a $5 million bribe from a South Korean company in return for a promise to deliver a contract in excess of $100 million for various car parts.
Hyoung Nam So, 48, a.k.a. “Brian So,” of Irvine, was found guilty of one count of conspiracy to commit bribery.
According to evidence presented at a seven-day trial, in 2015 a foreign parts supplier paid So a total of $3.45 million in cash. As a manager and team leader at General Motors (GM), So oversaw the supply of parts used to build interiors for GM automobiles in North America. In October 2015, So promised the contract – which was to be awarded through a competitive bidding process – to the owner of the South Korean parts company – Wookyung MIT – in exchange for $5 million, which So demanded in cash.
The following month, the owner of Wookyung MIT arranged to have $1 million in cash transferred from South Korea to Los Angeles through money brokers, which an accomplice then drove to Troy, Michigan, where So was then living. The owner of Wookyung MIT flew to Detroit in late November 2015 and personally delivered the cash to So during a meeting at a hotel in Troy.
By the time So received the first $1 million installment of the bribe payment, he had already learned that Wookyung MIT was not the lowest bidder on the contract. So arranged for information to be provided to Wookyung MIT that would allow it to revise its bid. On December 8, 2015, So recommended to GM executives that the contract be awarded to Wookyung MIT, and the contract was awarded to Wookyung MIT on the same day.
So refrained from notifying Wookyung MIT that it had won the contract and continued to withhold that information until Wookyung MIT’s owner paid the remaining portion of the bribe. That occurred on December 20, 2015, when the owner of Wookyung MIT paid So $2.45 million in cash at a restaurant in Detroit – cash that also had been driven from Los Angeles to Michigan. The following day, So arranged for Wookyung MIT to be informed that it had won the contract.
Homeland Security Investigations seized $3.19 million believed to be proceeds from the bribery scheme from a private vault in Los Altos in 2017, and HSI subsequently returned the money to South Korean authorities.
The owner of Wookyung MIT was prosecuted in South Korea for offenses related to the bribery scheme.
United States District Judge André Birotte Jr. scheduled a May 24, 2024 sentencing hearing, at which time So will face a statutory maximum sentence of five years in federal prison.
The investigation into the bribery scheme was conducted by HSI’s Los Angeles El Camino Real Financial Crimes Task Force, a multi-agency task force comprised of federal and state investigators who are focused on financial crimes in Southern California. The Justice Department’s Office of International Affairs provided substantial assistance during the investigation.
Assistant United States Attorneys Jeff Mitchell and David Y. Pi of the Major Frauds Section are prosecuting this case.
Florida Man Sentenced to Prison for Embezzling from Missouri CompanyRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Thursday sentenced a man who embezzled about $280,000 from his employer to buy a boat and make other personal purchases to a year and a day in prison.
Matthew Olinger, 40, of Florida, pleaded guilty to a felony wire fraud charge in July and admitted embezzling from his employer in two ways. Olinger worked for a seed company as an area business manager, managing field sales representatives and occasionally purchasing agricultural equipment for the seedsmen, employees who sold seeds to regional customers.
Olinger fraudulently misused his company credit card to make at least $180,000 worth of personal purchases on hundreds of occasions, including family meals, vacations, clothing, boating expenses and personal entertainment, his plea agreement says. Olinger covered up the personal purchases by submitting fake or altered receipts to the company.
Olinger also stole company funds to help a seedman buy a 2022 Cobalt R35 boat and a trailer. Olinger authorized an employee to sign a contract with a seedman that would have misappropriated $75,000 in company funds each year for a decade, or a total of $750,000, to buy the Cobalt boat and the trailer and pay associated boating expenses. Olinger stole $100,000 in company funds by submitting three fraudulent funding requests to his employer for a “seed tender” and “seed equipment” before his scheme was discovered by the company.
The money has been repaid to the company.
The FBI investigated the case. Assistant U.S. Attorney Derek Wiseman prosecuted the case.
Federal Jury Finds Waukesha Man Guilty of Sex TraffickingRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on November 15, 2023, a jury found Cornelius Jackson (age 34) of Waukesha guilty of all counts with which he was charged, including four counts of Sex Trafficking by Force, Fraud, or Coercion, and Conspiracy to Engage in Sex Trafficking.
The evidence presented at trial established that between 2014 and 2020, Jackson used force, threats of force, fraud, and coercion to compel female victims to engage in commercial sex acts in cities and states across the country, including in Waukesha, Green Bay, Milwaukee, Minnesota, North Dakota, and Ohio.
The evidence showed that Jackson recruited his victims through dating apps and social media. The victims all testified that Jackson kept and controlled all of the money they made, using violence to ensure they all continued to comply with his demands. The victims testified that Jackson strangled them and that they each saw him strangle other female victims.
Jackson faces a maximum sentence of life in prison and a mandatory minimum of 15 years of imprisonment. Further, he will be required to register as a Sex Offender for life.
This case was investigated by the Federal Bureau of Investigation and Wisconsin Department of Justice, Division of Criminal Investigation with the assistance of the Waukesha Police Department, Milwaukee Police Department, Ashwaubenon Public Safety Department, and Oneida Police Department.
This case was prosecuted by Assistant United States Attorneys Erica J. Lounsberry and Abbey M. Marzick.
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Federal Indictment Returned for Obstruction of Justice and Witness TamperingRead the Press Release
GREENVILLE, S.C. — A federal grand jury in Greenville returned a two-count indictment against Da’Ron Jerome Collins, 47, of Boiling Springs for obstruction of justice and witness tampering.
The indictment alleges that Collins knowingly obstructed the investigation of a matter within the jurisdiction of the Department of Justice, that is, kidnapping, a possible violation of Title 18, United States Code, Section 1201(a); and that Collins knowingly engaged in misleading conduct towards another person with the intent to hinder, delay, and prevent the communication of information relating to the commission and possible commission of a federal offense to a law enforcement officer and a judge of the United States.
Collins faces a maximum penalty of 20 years imprisonment as to each count and is currently being held in the Spartanburg County Detention Center. A detention hearing is scheduled for Nov. 21 at 10:00 a.m. before U.S. Magistrate Judge Kevin F. McDonald.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Spartanburg County Sheriff’s Office. Assistant U.S. Attorney Leesa Washington is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Federal Correctional Officer Sentenced to 96 Months for Sexually Abusing Multiple Female InmatesRead the Press Release
OAKLAND – A former Federal Bureau of Prisons (FBOP) correctional officer was sentenced today to 96 months for sexually abusing multiple female inmates and making false statements while he was a correctional officer at the Federal Correctional Institution (FCI) at Dublin, California.
Andrew Jones, 36, of Clovis, California, pleaded guilty to the charges on Aug. 17. Today’s sentence was handed down by U.S. District Court Judge Yvonne Gonzalez Rogers.
“The egregious sexual abuse that took place at FCI Dublin was disgraceful and tragic, and the Justice Department will not rest until we have eliminated such misconduct from the Federal Bureau of Prisons,” said Deputy Attorney General Lisa O. Monaco. “As the defendant’s guilty plea and today’s sentencing demonstrate, FBOP employees who abuse their positions of authority and assault those in their custody will be held to account.”
“This ongoing investigation has unearthed evidence regarding the criminal activities of numerous employees at the Federal Correctional Institution at Dublin,” said U.S. Attorney Ismail Ramsey for the Northern District of California. “So far, seven correctional officers have been convicted of felony conduct involving sexual abuse of female inmates and an eighth employee has been charged with similar conduct. To be clear, this investigation is not over – correctional officers at FCI Dublin are trusted to secure the safety of inmates at the institution; the Department of Justice will continue to hold accountable any correctional officer who violates that solemn responsibility.”
“Jones participated in a culture of sexual abuse of female inmates at FCI Dublin that included the Warden, the Chaplain, and other employees, and he like them has now been held to account for his heinous acts,” said Inspector General Michael E. Horowitz. “The DOJ Office of the Inspector General will continue to aggressively investigate this type of egregious criminal conduct, and we will do everything within our authority to pursue justice for victims of sexual abuse.”
“The defendant's conduct, sexually abusing inmates and threatening violence to keep them silent, is sick and reprehensible,” said FBI Deputy Director Paul Abbate. “Today’s sentencing comes amid relentless efforts to prevent abuse and misconduct by corrections personnel entrusted with the care and protection of others. The FBI will continue to work with partners to ensure the physical safety and civil rights of all individuals and hold accountable any public servant who abuses a position of trust.”
"Andrew Jones' record of abuse is abhorrent," said FBI San Francisco Division Special Agent in Charge Robert Tripp. "The FBI always stands in support of victims of abuse, and incarcerated individuals are no exception. Our dedication to protecting those who are most venerable is unwavering, and the FBI will continue to investigate allegations of such abuse."
According to his plea agreement, Jones was employed as a correctional officer at FCI Dublin where he supervised prisoners who worked in the Food Services Department. Jones admitted that, between July 2020 and June 2021, while he had supervisory and disciplinary authority over all the female prisoners, he received oral sex from, and/or had sexual intercourse with, three female prisoners who worked for him in the FCI Dublin kitchen. Jones admitted that he sexually abused these prisoners in multiple places near the FCI Dublin kitchen, including a staff bathroom, a warehouse, and a room where kitchen utensils were kept.
In a memorandum filed in connection with Jones’ sentencing, the government argued that Jones “enforced silence and obedience” from the prisoners by using “violence and threats of violence.” The memorandum stated that “intimidation and insults on the one hand, and the flattery on the other, was aimed at cultivating pliant prisoners who Jones could abuse for his own sexual pleasure, while he remained safe in the belief that his misconduct would go unreported.”
In sum, Jones pleaded guilty to six counts of sexual abuse of a ward involving three inmates and one count of false statements to the Justice Department’s Office of Inspector General (DOJ-OIG). In addition to the prison term, Judge Gonzalez Rogers also ordered Jones to serve ten years of supervised release, to begin after the prison term. Judge Gonzalez also scheduled a hearing for February 8, 2024, to consider issues related to restitution.
Jones is one of eight correctional officers to have been charged with federal crimes involving sexual misconduct at FCI Dublin in the past three years and the fourth to have been sentenced. To date, all the recent sentences for FCI Dublin guards convicted of sexual abuse of a ward and/or abusive sexual contact of a prisoner have resulted in sentences that are above the U.S Sentencing Guidelines.
DOJ-OIG and FBI investigated the case.
Assistant U.S. Attorneys Molly K. Priedeman and Andrew Paulson for the Northern District of California prosecuted the cases, with the assistance of Madeline Wachs, Sara Slattery, Christine Tian, Claudia Hyslop, Leeya Kekona, and Kay Konopaske.
FBOP is committed to rooting out misconduct within its ranks and working with law enforcement partners to prosecute violations of federal law. The numerous FBOP employees working diligently to ensure justice for the victims of misconduct are critical to the Department’s reform efforts.
Federal Convicted Felon and Alleged Accomplice Charged for Jail EscapeRead the Press Release
MACON, Ga. – A recently convicted felon and a Central Georgia woman are facing federal charges alleging their participation in a Bibb County, Georgia, jailbreak on Oct. 16.
A federal grand jury returned an indictment on Nov. 14 charging Johnifer Dernard Barnwell aka “Whoop” aka “Malixe,” 37, of Macon, with one count of escape from custody and Janecia Green, 30, of Macon, with one count of aiding and abetting Barnwell’s escape from custody and one count of assisting escape of a person committed to custody. Each charge carries a maximum sentence of five years in prison.
According to the indictment, Barnwell was being held in the Bibb County Jail on behalf of the U.S. Marshals Service (USMS) after he was convicted by a federal jury on Oct. 2 of conspiracy to possess with intent to distribute fentanyl, methamphetamine and heroin; and possession with intent to distribute fentanyl, methamphetamine, heroin, cocaine and cocaine base for which Barnwell faces a maximum sentence of life in prison and a $10,000,000 fine. A sentencing date has not been scheduled by the Court. In the indictment, Barnwell is alleged to have escaped the custody of the Bibb County Sheriff’s Office with the assistance of Green.
Green had her initial appearance in Macon on Nov. 15 before U.S. Magistrate Judge Charles Weigle of the U.S. Court for the Middle District of Georgia. She was held without bond and is scheduled to have a detention hearing on Nov. 21 to determine future bond status.
Barnwell had his initial appearance in Augusta, Georgia, on Nov. 13 before U.S. Magistrate Judge Brian Epps of the U.S. Court for the Southern District of Georgia and was remanded to the custody of the USMS. The USMS will transport Barnwell back to the Middle District of Georgia for further court proceedings.
The case is being investigated by the FBI, the U.S. Marshals Service and the Bibb County Sheriff’s Office. Assistant U.S. Attorney Joy Odom is prosecuting the case.
Federal Charges Filed After Southern Oregon Traffic Stop Nets More than 100 Pounds of FentanylRead the Press Release
PORTLAND, Ore.—A suspected drug trafficker is facing federal charges after he was caught by southern Oregon law enforcement transporting more than 100 pounds of fentanyl on U.S. Route 97 near Collier Memorial State Park.
Jothan Paul Barrios-Chable, 20, of Portland, has been charged by criminal complaint with possession with intent to distribute fentanyl.
According to court documents, on November 8, 2023, investigators from the Medford Area Drug and Gang Enforcement Team (MADGE) and Homeland Security Investigations, Medford, located Barrios-Chable traveling north on Highway 97 through Klamath Falls, Oregon, and a Medford Police Department canine officer stopped his vehicle just south of Collier Memorial State Park.
Detectives searched Barrios-Chable’s vehicle and located two suitcases, a backpack, and a small satchel. Each suitcase contained approximately twenty heat-sealed kilogram bricks of a narcotic later confirmed to be fentanyl. The backpack contained seven additional kilogram bricks of fentanyl and the satchel contained a loaded semi-automatic pistol. Further analysis determined that together the heat-sealed bricks contained approximately 117 pounds of fentanyl, including packaging.
Barrios-Chable 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 MADGE, Homeland Security Investigations (HSI), and the Oregon State Police (OSP). It is being prosecuted by Marco A. Boccato, Assistant U.S. Attorney for the District of Oregon.
MADGE is a gang and narcotics enforcement team comprised of local, state, and federal investigators that work together to dismantle drug trafficking and other criminal organizations operating in and around Jackson County, Oregon. MADGE member agencies include the Medford Police Department, Jackson County Sheriff and District Attorney’s Offices, Jackson County Community Corrections, HSI, and FBI.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Fabens Woman Sentenced to 16 years for Transporting an Illegal Alien Who Died in Vehicle CrashRead the Press Release
A Fabens, Texas woman who was responsible for a car crash that killed a Mexican citizen she was transporting within the U.S. illegally was sentenced today to 16 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
In July, Raquel Delgado Chavez, 39, pleaded guilty to transportation of an illegal alien resulting in death. She was sentenced today before U.S. District Judge James Wesley Hendrix.
According to court documents, on November 25, 2022 a Texas Department of Public Safety trooper responded to a single-vehicle rollover crash in Lynn County. A Mexican citizen was found deceased at the scene. A medical examiner determined the individual died after being ejected from the vehicle during the rollover accident. He had blunt force injuries of the head, neck, torso, and extremities, as well as multiple rib fractures.
On November 26, 2022, the Lynn County Sheriff's Office received a 911 call regarding two individuals walking on US 380. A deputy responded and found a Hispanic male and Ms. Chavez with injuries, they were suspected of being involved in the rollover crash and were transported to the Lynn County Hospital.
Ms. Chavez was interviewed and admitted that she called a Mexican phone number and was given directions to the location of a truck in El Paso. Ms. Chavez said when she arrived at the location of the truck, the passengers were already inside. She did not know the passengers, but knew she was supposed to drive them to Dallas. She also admitted she knew the passengers were illegal aliens.
Ms. Chavez was driving the truck and moved over on the highway to let a vehicle pass her, then the vehicle flipped. She said she and the other passengers fled the vehicle. Ms. Chavez said she ran because she was scared and that she saw a man pinned under the vehicle.
This investigation was conducted by Homeland Security Investigations, Texas Department of Public Safety (Highway Patrol and Texas Rangers), and Lynn County Sheriff’s Office. Assistant U.S. Attorney Ryan Redd prosecuted this case.
El Departamento de Justicia llega a un acuerdo con un sistema de atención médica de la ciudad de New York para resolver las alegaciones de discriminación en el empleoRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con New York City Health and Hospitals Corporation (NYCHH), que proporciona servicios de atención médica a más de un millón de neoyorquinos. El acuerdo resuelve la determinación del Departamento que NYCHH infringió la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) cuando rechazó el documento válido de autorización para trabajar de un trabajador con base en la nacionalidad de origen del trabajador.
«Los empleadores no pueden rechazar documentos válidos que demuestran el permiso de alguien para trabajar en función del país en el que esa persona nació», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Las leyes federales de derechos civiles protegen a los trabajadores de la discriminación que puede ocurrir cuando los empleadores verifican su permiso para trabajar. El Departamento de Justicia seguirá responsabilizando a aquellos empleadores que traten a los trabajadores de forma diferente debido al lugar donde nacieron o a su nacionalidad de origen».
La investigación del departamento determinó que NYCHH rechazó, de manera ilegal, un documento de autorización para trabajar («EAD», por sus siglas en inglés) válido de un trabajador, que se había prorrogado automáticamente a través de una notificación en el Registro Federal aplicable a aquellos que son beneficiarios del Estatus de Protección Temporal (TPS). El Departamento determinó que NYCHH rechazó el documento válido y retrasó la incorporación del trabajador, basándose en su suposición incorrecta que el país de nacimiento del trabajador indicado en su EAD tenía que ser el mismo que el país designado para el TPS.
El TPS es un beneficio migratorio temporal que permite que las personas calificadas de países designados permanezcan en los Estados Unidos durante un período de tiempo limitado debido a las condiciones en el país designado, como un conflicto armado en curso, un desastre ambiental u otras condiciones extraordinarias y temporales. Los trabajadores con el TPS, al igual que cualquier otro trabajador, tienen derecho a elegir los documentos válidos que desean presentar para demostrar su permiso para trabajar. Los avisos del Registro Federal que prorrogan automáticamente el permiso de trabajo de un trabajador con el TPS explican que el trabajador no tiene que mostrar documentación adicional ni demostrar su estatus de ciudadanía, y que el país de nacimiento indicado en la documentación del trabajador no tiene que coincidir con el país designado por el TPS.
En virtud de los términos del acuerdo, NYCHH reembolsará el pago al trabajador afectado para compensar los salarios perdidos para los cuales el Departamento determinó que el trabajador era elegible, debido a la discriminación. Por otra parte, pagará una sanción civil a los Estados Unidos, capacitará a su personal sobre la disposición antidiscriminatoria de la INA, revisará sus políticas de empleo y materiales de capacitación y se someterá a la supervisión por parte del Departamento durante tres años.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminar al verificar el permiso para trabajar de alguien en el sitio web de la IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Los individuos con el TPS que tengan preguntas sobre sus derechos pueden encontrar más información en el sitio web de IER. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito o visualizar una presentación a la carta; o visitar los sitios web de la IER en inglés y español . Suscríbase para recibir actualizaciones por correo electrónico de la IER.
nychh_settlementagreement_05.01.pdfEl Departamento de Justicia lanza un nuevo Grupo Interagencial de Trabajo de Acceso al LenguajeRead the Press Release
Hoy el Departamento de Justicia anunció el lanzamiento del Grupo de Trabajo Federal de Acceso al Lenguaje, el cual constituye un nuevo esfuerzo interagencial en el que coordinarán el acceso al lenguaje a través del gobierno federal. Junto con la creación de este Grupo de Trabajo, el Departamento de Justicia también anunció en su sitio web, www.LEP.gov, el lanzamiento de planes actualizados de acceso al lenguaje por parte de agencias federales, tras marcar el primer aniversario en que el Fiscal General Merrick B. Garland emitió el memorándum de acceso al lenguaje a agencias federales.
En noviembre de 2022, el Fiscal General Garland ordenó a las agencias federales que revisaran sus planes de acceso al lenguaje, compartieran sus mejores prácticas e intercambiaran información sobre iniciativas y esfuerzos de acceso al lenguaje en cumplimiento de la Orden Ejecutiva 13166, “Mejorar el acceso a los servicios para las personas con dominio limitado del inglés”. Hoy marca el lanzamiento del primer lote de esos planes actualizados y en los próximos meses más agencias federales publicarán sus planes actualizados.
“Nuestro gobierno sirve mejor a todos los estadounidenses cuando garantizamos que las barreras de idioma no obstaculizan la participación en la vida cívica”, dijo el Fiscal General Merrick B. Garland. “Hoy, me complace compartir que más de una docena de agencias federales han respondido a mi llamado para reexaminar las formas en que están abordando estas barreras mediante la publicación de planes y políticas actualizados de acceso al lenguaje destinados a garantizar que los programas gubernamentales sigan siendo accesible a todos. El Departamento de Justicia seguirá apoyando a las agencias en la implementación de sus planes de acceso lingüístico y sus esfuerzos más amplios para cerrar la brecha lingüística en todos los programas y servicios federales”.
“Toda persona en el país debe poder ejercer sus derechos, obtener información crítica y tener acceso a beneficios y servicios a los cuales es elegible, independientemente del idioma que hable, lea o escriba”, señaló Kristen Clarke, Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Los planes actualizados de acceso al lenguaje que se difunden hoy establecen los pasos que el personal federal debe tomar para garantizar que las personas con dominio limitado del inglés se les provea acceso significativo a los programas y actividades federales. De igual manera, equipan al personal federal con la información que necesita para comunicarse con todas las comunidades de manera precisa y efectiva”.
El Grupo de Trabajo Federal de Acceso al Lenguaje funcionará como un recurso central que proporcionará apoyo y asistencia técnica a las agencias federales mientras que ellas trabajen en la implementación de sus planes actualizados de acceso al lenguaje. El Grupo de Trabajo también colaborará directamente con grupos comunitarios, personas con dominio limitado del inglés y otras partes interesadas en garantizar el cumplimiento de la Orden Ejecutiva 13166 y otras obligaciones relacionadas con el acceso al lenguaje a nivel federal. El Grupo de Trabajo también se enfocará en garantizar que las agencias que reciban fondos federales cumplan en conformidad con la ley federal con sus obligaciones de acceso al lenguaje. En el memorándum del fiscal general se pidió a las agencias que consideraran otras formas en que las agencias puedan cerciorarse de que los beneficiarios de asistencia financiera federal comprendan y cumplan con sus obligaciones de proveer un acceso lingüístico significativo en virtud de los requisitos del Título VI de la Ley de Derechos Civiles de 1964 y sus reglamentos de aplicación.
El comunicado de hoy se construye sobre el compromiso desde hace tiempo del Departamento de Justicia de promover el acceso al lenguaje. La División de Derechos Civiles publicó recientemente una hoja informativa sobre el acceso al lenguaje en los tribunales en coordinación con un seminario web para los tribunales estatales. La división también lanzó la Iniciativa del Orden Público Para el Acceso Lingüístico, la cual es una iniciativa nacional que ayuda a las agencias del orden público a cumplir sus obligaciones de proporcionar un acceso lingüístico significativo.
De acuerdo con el memorándum del fiscal general de noviembre de 2022, el Departamento de Justicia emitió su Plan de Acceso al Lenguaje el cual fue revisado en agosto de 2023. Este plan se puede encontrar aquí. También se encuentran disponibles traducciones al español, chino simplificado, chino tradicional, vietnamita, coreano, tagalo, árabe y francés. El Programa de Acceso al Lenguaje de la Oficina de Acceso a la Justicia coordina la implementación del plan actualizado del Departamento, proporciona capacitación y asistencia técnica a los componentes del Departamento, amplía los recursos de acceso al lenguaje y promueve mejores políticas y prácticas de acceso al lenguaje en conformidad con el plan del Departamento de Justicia. La Coordinadora de Acceso al Lenguaje que dirige el Programa también preside sobre el Grupo de Trabajo de Acceso al Lenguaje del Departamento de Justicia, el cual es un esfuerzo por parte del Departamento de Justicia para llevar a cabo el Plan del Departamento de Justicia.
Puede obtener más información sobre la División de Derechos Civiles en su sitio web en la dirección http://www.justice.gov/crt. Igualmente, puede obtener información sobre el dominio limitado del inglés y la Orden Ejecutiva 13166 en la dirección www.LEP.gov.
Effingham, Illinois, Man Sentenced to 48 Months for Bank RobberyRead the Press Release
SPRINGFIELD, Ill. – An Effingham, Illinois, man, Dillon Rensner, 22, was sentenced on November 14, 2023, by U.S. District Judge Colleen R. Lawless to 48 months in prison, to be followed by a 3-year term of supervised release, for bank robbery. Judge Lawless also ordered restitution in the amount of $1,476.00 and a $200 special assessment.
Rensner was indicted in May 2023 and pleaded guilty that same month.
At the sentencing hearing, Judge Lawless found that Rensner entered the Regions Bank at 111 South Durkin Drive in Springfield, Illinois, carrying what appeared to be a firearm and demanded money from bank employees. During the robbery, Rensner pointed the firearm at various people inside the bank and threatened them. Judge Lawless stated that, even though the firearm was later proven to be a blank gun, the fear and terror that the victims of Rensner’s crime felt was very real and very traumatic.
The statutory penalties for bank robbery are up to 25 years in prison, up to a $250,000 fine, and up to three years supervised release.
This case was investigated by the Federal Bureau of Investigation, Springfield Field Office, with assistance from the Springfield Police Department, the Illinois State Police, the Indiana State Police, and the Terre Haute Police Department.
The case against Rensner 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.
DuBois City Manager and Employee Charged with Stealing Hundreds of Thousands of Dollars in City FundsRead the Press Release
PITTSBURGH, PA- Two residents of Clearfield County, PA, have been indicted by a federal grand jury in Pittsburgh on charges of conspiracy and federal program fraud, United States Attorney Eric G. Olshan announced today.
The five-count Indictment named John “Herm” Suplizio, 63, and Roberta Shaffer, 58, both of DuBois, PA, as the defendants. The Indictment was unsealed after the defendants were arrested today.
According to the Indictment, from 2014 to 2022, Suplizio, the City Manager of DuBois, and Shaffer, a city employee, conspired to divert and steal hundreds of thousands of dollars in city funds. As the full-time, salaried City Manager, Suplizio maintained substantial authority in DuBois, where he ran the city’s day-to-day operations. As alleged, beginning as early as 2008, Suplizio and Shaffer used the city’s tax identification number to establish secret bank accounts into which they diverted city money, including approximately $60,000 in annual administrative fees from the city’s waste management contract. During the alleged conspiracy, Suplizio and Shaffer made large cash withdrawals from these unaudited accounts, wrote checks to themselves and others, and obtained cashier’s checks with themselves listed as payees—totaling more than $350,000. The defendants also allegedly spent more than $450,000 from the accounts toward payments on Suplizio’s personal credit card, which he used to pay for personal vacations, utility bills for his residence, department store purchases, and jewelry store purchases, among other personal expenses.
“Herm Suplizio allegedly funneled city money into secret bank accounts that he and Shaffer controlled and that he could use for his personal benefit, including hundreds of thousands of dollars in personal credit card payments,” United States Attorney Eric G. Olshan said. “Our communities entrust public officials like Suplizio with tremendous authority, and when that trust is violated—as is alleged here—this office and our federal and state law enforcement partners will hold them accountable to the fullest extent of the law.”
“As alleged, the suspects abused their public positions and betrayed the public’s trust all while lining their own pockets with hundreds of thousands of dollars,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “The FBI will always root out any and all forms of public corruption. We remain committed to ensuring those who violate the public’s sacred trust are held accountable.”
“I wish to thank our federal partners, who have adopted this prosecution and will work with an attorney from our office who is cross designated as a Special Assistant U.S. Attorney,” Attorney General Michelle Henry said. “This federal indictment further validates our joint efforts to hold public officials accountable to the constituents they serve.”
The law provides for a total sentence of not more than 45 years’ imprisonment, a fine of not more than $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorneys Nicole Vasquez Schmitt and Robert S. Cessar and Special Assistant United States Attorney Summer F. Carroll are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania Office of the Attorney General, the Pennsylvania State Police, and the Internal Revenue Service – Criminal Investigation conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Doctor and Clinic Owner Sentenced for $5M Pill Mill SchemeRead the Press Release
A doctor and a clinic owner were sentenced yesterday for their roles in a pill mill scheme.
Jonathan Rosenfield, M.D., 40, of Atlanta, and Elmer Taylor, 44, of Houston, were sentenced to 10 and 12 years in prison, respectively, following their guilty pleas to conspiracy to unlawfully distribute and dispense controlled substances.
According to court documents, Rosenfield owned, operated, and was a physician at the two Sunnyside Medical pill-mill clinics, which did business as Sunnyside Wellness, and Elmer Taylor co-owned and co-operated the clinics. Rosenfield, Taylor, and their co-conspirators issued prescriptions for opioids, including approximately 752,000 pills of oxycodone and 419,000 pills of hydrocodone, under Rosenfield’s name, outside the usual course of professional practice, and not for a legitimate medical purpose. The prescriptions often were issued to individuals paid by drug dealers to pose as patients, and the pills ultimately were diverted to the illegal market. From May 2018 to August 2019, the Sunnyside Medical clinics grossed approximately $5,478,000 from the sale of these prescription drugs.
Co-defendants Sokari “Momma” Bobmanuel and Alantha Stewart were previously sentenced to 14 years and 10 years in prison, respectively, for their roles in the scheme.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Administrator Anne Milgram of the Drug Enforcement Administration (DEA), Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Acting Special Agent in Charge David Martinez of the FBI Houston Field Office made the announcement.
The DEA Houston Division and FBI Houston Field Office investigated the case.
Trial Attorneys Monica Cooper, Ariel Glasner, and Courtney Chester of the Criminal Division’s Fraud Section and Emily Petro, formerly of the Fraud Section and currently an Assistant U.S. Attorney for the Middle District of Tennessee, prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24.7 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
District Man Sentenced to Prison for Assaulting Member of Congress and Two Police OfficersRead the Press Release
WASHINGTON – Kendrid Khalil Hamlin, 26, of Washington, D.C., was sentenced today by U.S. District Court Chief Judge James E. Boasberg to 27 months in prison, followed by 36 months of supervised release for an assault on a member of Congress and two counts of assault on a law enforcement officer stemming from a series of incidents on Feb. 9, 2023, in the District of Columbia.
The announcement was made by U.S. Attorney for the District of Columbia Matthew M. Graves, Chief Pamela Smith of the Metropolitan Police Department, and Chief J. Thomas Manger of the United States Capitol Police.
According to the government’s evidence, at approximately 7:10 a.m., on Feb. 9, a United States Congressperson was in the lobby of an apartment complex in Washington, D.C., when they were assaulted by an individual, later identified as Hamlin. As a result of the assault, the Congressperson sustained personal injuries.
Authorities later located Hamlin, and as they attempted an arrest, Hamlin also assaulted the officers. Hamlin has remained in custody since the arrest.
This case was investigated by the U.S. Capitol Police and the Metropolitan Police Department. The case is being prosecuted by Assistant U.S. Attorney Josh Gold and Special Assistant U.S. Attorney Alexander Schneider.
Crow Agency woman sentenced to seven years in prison for role in large-scale, meth trafficking investigationRead the Press Release
BILLINGS — A Crow Agency woman who admitted to trafficking methamphetamine in a large-scale, multi-state drug operation that was centered on the Crow Indian Reservation was sentenced today to seven years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Carly Joy James, 42, pleaded guilty in July to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that federal law enforcement, in a collaborative effort with local and tribal law enforcement, investigated a large-scale, multi-state drug trafficking operation centered on the distribution of meth involving multiple properties on the Crow Indian Reservation. The properties, including one known as Spear Siding, were a source of supply of meth for both the Crow and Northern Cheyenne Indian Reservations. James was one of the individuals affiliated with the investigation. The government further alleged that James was involved in selling meth obtained from Spear Siding and distributing it in the Billings area in 2022. In January, James was pulled over for a traffic violation, and a search of her vehicle revealed a firearm and approximately eight grams of meth.
The U.S. Attorney’s Office prosecuted the case. The Bureau of Indian Affairs, Drug Enforcement Administration and FBI conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Criminal Defense Attorney Pleads Guilty to Decade-Long Federal Court Bribery SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that TELESFORO DEL VALLE, JR., a/k/a “Ted,” a criminal defense attorney who has appeared in cases in the U.S. District Court for the Southern District of New York (“SDNY District Court”) and elsewhere for more than 20 years, pled guilty to charges of conspiracy, bribery, paying illegal compensation to a court employee, and making material false statements to law enforcement to conceal his crimes.
U.S. Attorney Damian Williams said: “Practicing law, particularly criminal law, demands integrity and honesty. The public relies on attorneys and court employees to maintain and validate its faith in our criminal justice system. As he admitted today, Del Valle Jr. betrayed that trust by engaging in a scheme that spanned more than a decade and corrupted the fair administration of justice for personal gain. My Office will always pursue corrupt actors without fear or favor. The people in our District and this country deserve nothing less.”
According to the allegations in the Indictment:[1]
DEL VALLE is a private attorney who has appeared in numerous federal criminal cases pending before the SDNY District Court. DIONISIO FIGUEROA, a/k/a “Dionicio,” a clerk in the SDNY Magistrate Clerk’s Office since in or about 2002, was responsible for performing duties that included, among other things, making data entries regarding official case events in criminal cases, making summary entries of documents and proceedings on case dockets, and performing inquiries and furnishing information, either in person or by correspondence, regarding the status of cases. FIGUEROA also played a role with respect to the intake of criminal cases, including by preparing appearance bonds, advising defendants and their family members about the conditions of the bonds, and ensuring that appearance bonds were signed by all parties prior to a defendant’s release.
SDNY District Court personnel policies prohibited FIGUEROA from, among other things, having outside employment that would pose a conflict of interest; receiving payments, gifts, or other benefits from persons having business before the District Court; and recommending particular attorneys to members of the public. FIGUEROA was also subject to the U. S. Courts’ Code of Conduct for Judicial Employees (the “Code of Conduct”), which cautioned judicial employees that “[a] number of criminal statutes of general applicability govern federal employees’ performance of official duties. These include: 18 U.S.C. § 201 (bribery of public officials and witnesses) . . .” The Code of Conduct likewise admonished, among other things, that “[a] judicial employee should never influence or attempt to influence the assignment of cases, or perform any discretionary or ministerial function of the court in a manner that improperly favors any litigant or attorney, nor should a judicial employee imply that he or she is in a position to do so.”
Between at least 2011 and 2022, DEL VALLE and FIGUEROA engaged in a scheme whereby FIGUEROA used his position as an employee of the SDNY District Court to encourage criminal defendants to retain DEL VALLE to represent them in pending criminal cases. In return, DEL VALLE paid FIGUEROA a portion of the fees referred clients paid to DEL VALLE. Over the course of more than a decade, FIGUEROA referred at least 45 SDNY criminal defendants to DEL VALLE, and DEL VALLE paid FIGUEROA tens of thousands of dollars in referral fees. DEL VALLE paid FIGUEROA directly and through an intermediary who would pick up envelopes of cash for FIGUEROA from DEL VALLE’s law office. Many of the clients who ended up retaining and paying DEL VALLE previously had been assigned court-appointed counsel at no cost to them.
In November 2022, federal law enforcement agents separately interviewed both DEL VALLE and FIGUEROA after advising each that lying to federal law enforcement agents is a federal crime. DEL VALLE and FIGUEROA each made materially false, fictitious, and fraudulent statements and representations in response to the agents’ questions. In particular, DEL VALLE, upon being served with a federal grand jury subpoena requiring the production of records from his law firm, falsely denied having any records reflecting client referrals from or payments to FIGUEROA or anyone else. FIGUEROA falsely denied making any referrals to DEL VALLE, except on a small number of occasions concerning close relations or friends, and further falsely denied ever having received payments from DEL VALLE for referrals.
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DEL VALLE, 65, of Leonia, New Jersey, pled guilty to one count of conspiracy to bribe a federal employee and pay illegal compensation to a judicial employee, which carries a maximum potential sentence of five years in prison; one count of bribery of a federal employee, which carries a maximum potential sentence of 15 years in prison; one count of paying illegal compensation to a judicial employee, which carries a maximum potential sentence of five years in prison; and one count of making material false statements, which carries a maximum potential sentence of five years in prison. Sentencing is scheduled for March 12, 2024, before the Hon. Mae A. D’Agostino, U. S. District Judge for the Northern District of New York, sitting by designation.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
FIGUEROA has pled not guilty to the charges contained in the Indictment, which are merely accusations, and the trial in his case is scheduled to begin on December 4, 2023. FIGUEROA is presumed innocent unless and until proven guilty.
Mr. Williams praised the outstanding investigative work of the Special Agents from the U.S. Attorney’s Office for the Southern District of New York.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Frank Balsamello, Jarrod L. Schaeffer, and Stephanie Simon have charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Court Enjoins Two Utah Companies from Distributing and Manufacturing Adulterated and Misbranded Dietary SupplementsRead the Press Release
A federal court on Nov. 15 enjoined two Utah-based companies from distributing and manufacturing adulterated and misbranded dietary supplements, the Justice Department announced.
In a complaint filed on Oct. 11 in the U.S. District Court for the District of Utah at the request of the U.S. Food and Drug Administration, the United States alleged that Evig LLC and the company’s CEO, David Lex Howard, violated the federal Food, Drug and Cosmetic Act (FDCA) by distributing adulterated and misbranded dietary supplements. In a separate complaint filed the same day, the United States alleged that Premium Productions LLC and the company manager's, Ryan Petersen, violated the FDCA by manufacturing adulterated dietary supplements. According to the complaints, the dietary supplements involved are marketed throughout the United States under the brand name Balance of Nature.
The complaint against Evig LLC and Howard alleges that the defendants claimed their dietary supplements can cure, treat and prevent a variety of diseases and health conditions, including cancer, heart disease, diabetes and coronavirus. According to the complaint, the supplements were neither approved by FDA nor exempt from approval, making them unapproved new drugs and misbranded under the terms of the FDCA. The complaint further alleges that FDA inspections showed the defendants had no system in place to handle customer complaints, despite receiving reports asserting that their products may have caused allergic reactions from ingredients not identified on the label.
The complaint against Premium Productions LLC and Petersen alleges that the defendants’ operation did not follow required current good manufacturing practices and failed to develop good operating procedures and adequate quality controls, making their products adulterated under the FDCA.
FDA sent both companies warning letters in August 2019 explaining that their conduct did not comply with the FDCA. According to the government’s complaints, the defendants failed to take appropriate steps to come into compliance after receiving those letters.
“Products intended to treat or cure diseases require FDA approval,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Dietary supplement makers also must abide by federal health and safety requirements. The department will continue to work closely with FDA to stop the distribution of unapproved, adulterated and misbranded dietary supplements.”
“This FDA action ensures that dietary supplements distributed to American consumers are appropriately labeled, lawfully manufactured and prevents products that potentially put people’s health at risk with unproven claims to cure, treat or prevent a serious illness,” said Acting Associate Commissioner Michael C. Rogers of the FDA’s Office of Regulatory Affairs. “We previously warned Evig LLC and Premium Production LLC, but they have demonstrated repeated violations of manufacturing requirements, and the public cannot have confidence that their products are what they purport to be. The FDA will continue to protect the U.S. public health by taking appropriate actions when companies violate the law.”
In both cases, the defendants agreed to settle the suits and be bound by consent decrees of permanent injunction. The orders entered by the court permanently enjoin the defendants from violating the FDCA and require manufacturing process improvements.
Senior Trial Attorney Sarah Williams of the Civil Division’s Consumer Protection Branch is handling the case, with assistance from Assistant U.S. Attorney Amanda Berndt for the District of Utah and Assistant Chief Counsel Todd Miller of the FDA’s Office of the Chief Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.
The claims resolved by the injunctions announced today are allegations only. There has been no determination of liability.
Premium Production Consent Decree Evig Consent DecreeConvicted Felon Sentenced to 63 Months in PrisonRead the Press Release
ANNISTON, Ala. – A convicted felon was sentenced to over five years in prison on gun charges, announced U.S. Attorney Prim F. Escalona and Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Court Judge R. David Proctor sentenced Matthew Hal McRraney, 49, of Ohatchee, to 63 months in prison for being a felon in possession of a firearm. McRraney pleaded guilty to the charge in August.
According to the plea agreement, on September 15, 2022, McRraney got into verbal altercation with his girlfriend, retrieved a short-barreled shotgun, and chased her down the street. The Anniston Police Department received a call reporting that McRaney was chasing a woman with a gun. An Anniston Police Department officer pursued McRraney and apprehended him after he slid down an embankment into a fence. Officers recovered a short-barreled, 12-gauge shotgun in some bushes. McRaney admitted he had possessed a short-barreled shotgun around the time he was in an argument with his girlfriend.
McRraney is prohibited from possessing a firearm because of multiple prior felony convictions, including felony battery and battery on a law officer or firefighter.
ATF investigated the case, along with the Anniston Police Department. Assistant U.S. Attorneys Daniel S. McBrayer and Darius C. Greene prosecuted the case.
Convicted Armed Bank Robber Indicted Again for Armed Bank RobberyRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Grant Elmore Davis, Jr. (71, Mansfield, OH) with armed bank robbery, discharging a firearm during and in relation to a crime of violence, and possessing a firearm and ammunition as a convicted felon. If convicted on all counts, Davis faces a minimum mandatory penalty of 25 years, up to life, in federal prison. The indictment also notifies Davis that the United States intends to forfeit the firearm and ammunition used to facilitate the offense.
According to court documents, Davis entered Truist Bank branch in Fort Myers and discharged a handgun while making verbal commands for the teller to give him money from the cash register. After obtaining money from the teller, Davis fled the bank.
In November 2001, Davis was convicted of armed bank robbery and using and carrying a short-barreled shotgun in relation to a crime of violence. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Lee County Sheriff’s Office and the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Mark Morgan.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make out neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in first place, setting focused and strategic enforcement priorities, and measuring the results.
Columbia Man Pleads Guilty to Possessing a Firearm While Out on Bond for Possessing a FirearmRead the Press Release
COLUMBIA, S.C. —Nicholas Vanover, 26, of Columbia, has pleaded guilty to being a felon in possession of a firearm and ammunition.
Evidence obtained in the investigation revealed that Vanover had been charged with being a felon in possession of a firearm in a 2022 federal case. After he pled guilty to that felon in possession charge, he was allowed to stay out on bond while awaiting sentencing. While awaiting sentencing, agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives learned that Vanover was continuing to sell marijuana from his apartment.
While on bond and awaiting sentencing for his prior firearm guilty plea, he violated the conditions of his bond by having multiple positive drug tests. Probation officers obtained an arrest warrant for his bond violations and U.S. Marshals served the warrant at Vanover’s apartment. When they entered the apartment, they saw a digital scale with marijuana with several large capacity ammunition magazines. They obtained a search warrant and found a .40 caliber Glock handgun with a drum magazine capable of accepting 50 rounds of ammunition, several extended magazines capable of accepting more than 15 rounds of ammunition, an AK-47 style 7.62x39 mm Century Arms rifle, four large bags containing more than 500 grams of marijuana, approximately $16,000.00 in U.S. currency, a money counter, and a pharmacist-sized (one pint) bottle of codeine cough syrup which had been stolen during a pharmacy robbery in Kershaw County.
Vanover faces a maximum penalty of 15 years in federal prison. He also faces a fine of up to $250,000, restitution, and five years of supervision to follow the term of imprisonment. United States District Judge Cameron McGowan Currie accepted the guilty plea and will sentence Vanover after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by United States Marshals Service, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the City of Columbia Police Department. Assistant U.S. Attorney William K. Witherspoon is prosecuting the case.
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Colombian Man Sentenced to 15 Years in Prison for Leading International Cocaine Trafficking Ring with Corrupt Air Traffic ControllersRead the Press Release
LOS ANGELES – The lead defendant in an indictment targeting an international drug trafficking organization was sentenced today to 180 months in federal prison for conspiring to smuggle tens of millions of dollars’ worth of cocaine by aircraft from Colombia to Mexico for distribution in the United States via the maintenance of secret airstrips and the bribery of air traffic controllers.
Jaison Dávila Amador, 57, a.k.a. “Costeño” and “María Angélica,” of Bogotá, Colombia, was sentenced by United States District Judge George H. Wu.
Dávila pleaded guilty on April 20 to one count of conspiracy to distribute cocaine for the purpose of unlawful importation. Dávila has been in federal custody since September 2021 after his extradition from Colombia.
Dávila participated in the cocaine trafficking conspiracy from at least 2017 through May 2019. Dávila and his accomplices carried out their plan by maintaining clandestine airstrips in Colombia where aircraft from Mexico would land to retrieve bulk quantities of cocaine. To facilitate the scheme, members of the conspiracy bribed air traffic controllers and law enforcement officials to ensure the flights from Mexico could enter Colombian airspace undisturbed.
The conspiracy involved at least two cocaine shipments by aircraft. The first flight successfully departed Colombia in the spring of 2017 with approximately 480 kilograms (1,058 pounds) of cocaine, though the airplane crashed in Central America, killing the pilots on board.
On November 5, 2017, an aircraft bound from Mexico entered Colombian airspace for the purpose of receiving a second cocaine shipment, but it was intercepted and forced down by the Colombian air force and then destroyed it with machine gun fire. Near a clandestine airstrip and near the airplane’s wreckage, law enforcement found approximately 515 kilograms (1,135 pounds) of cocaine, which Dávila and his co-conspirators intended to traffic by aircraft. Investigators estimate that the two cocaine shipments, if sold in the United States, would have been valued collectively at nearly $30 million.
Dávila coordinated various aspects of the conspiracy, including bribe payments to air traffic controllers, financing for the cocaine shipment, and logistical support for the aircraft that would transport the cocaine from Colombia to Mexico.
“[Dávila] was the ringleader, the principal organizer of the criminal venture,” prosecutors argued in a sentencing memorandum. “He called the shots, he directed the bribe payments, and, even after two pilots died, he pushed forward with another enormous drug shipment. Such a role speaks not only to the seriousness of [Dávila’s] conduct, but his experience. One does not accidentally find oneself leading a transnational criminal organization.”
All 13 defendants arrested and extradited to the United States in this case have pleaded guilty to participating in the international drug trafficking conspiracy.
The investigation into this drug trafficking organization was conducted by special agents with the Drug Enforcement Administration, which received substantial assistance from the Colombia National Police’s Dirección de Investigación Criminal e Interpol (DIJIN) and Colombia’s Fiscalía General de La Nación. This investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force. The Justice Department’s Office of International Affairs provided substantial assistance in securing the defendants’ extradition from Colombia and Canada.
Assistant United States Attorneys Alexander B. Schwab of the Corporate and Securities Fraud Strike Force, Chelsea Norell of the Violent and Organized Crime Section, and Elia Herrera of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Clearfield Resident Sentenced to 20 Months in Prison on Drug Trafficking ConvictionRead the Press Release
PITTSBURGH, PA – A resident of Clearfield, Pennsylvania, has been sentenced in federal court to 20 months of imprisonment followed by two years of supervised release on her conviction for violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Amy Bortot, age 53.
According to information presented to the court, Bortot was a United States Postal Service mail carrier who used her position to identify multiple addresses on her mail route that she provided to Derek Hillebrand, who instructed his Oregon-based supplier to send parcels containing methamphetamine and marijuana to those addresses. Bortot then either delivered the parcels directly to Hillebrand or to one of his associates rather than to the listed mailing address. In total, Bortot delivered at least one parcel containing approximately 4.5 kilograms of methamphetamine and multiple parcels containing approximately 80 kilograms of marijuana to Hillebrand or his associates.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department for the investigation leading to the successful prosecution of Bortot.
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.
Cincinnati woman arrested for identity theft, Social Security fraud crimesRead the Press Release
CINCINNATI -- A Cincinnati woman was arrested today on federal charges alleging she stole the identity of a deceased child and used it to avoid a pending criminal prosecution and to obtain thousands of dollars in government benefits.
Christina Vaskovsky, 56, is charged with wire fraud, misusing a Social Security Number and aggravated identity theft.
According to an affidavit filed in support of the criminal complaint, Vaskovsky was indicted in Hamilton County in July 2008 for allegedly stealing $14,500 from her employer. Vaskovsky failed to appear at her trial scheduled in December 2008. A nationwide warrant was issued for her arrest.
In 2010, Vaskovsky allegedly obtained a new Ohio driver’s license using the name, date of birth and Social Security number of a child who was born the same year as Vaskovsky but who died in 1977.
It is alleged that the defendant then began using the child’s identity in a variety of contexts over a span of 13 years, including:
- Receiving $19,570 in food stamp benefits;
- Filing bankruptcy to discharge nearly $128,000 in debt;
- Obtaining Social Security disability benefits totaling nearly $36,000;
- Providing the false identity upon being arrested for shoplifting in Kentucky;
- Applying on five separate occasions for Economic Injury Disaster Loans;
- Receiving more than $11,600 in unemployment benefits; and
- Obtaining Supplemental Security Income disability benefits totaling $4,300.
Vaskovsky is scheduled to appear in federal court in Cincinnati at 1:30pm today.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the charges. This case is being investigated by the Social Security Administration’s Office of Inspector General with assistance from the USDA Office of Inspector General, Ohio BMV Investigations, Department of Labor Office of Inspector General, United States Postal Inspection Service and U.S. Marshals Service. Special Assistant United States Attorney Timothy Landry is representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Chief Compliance Officer Sentenced for $50M Medicare Fraud SchemeRead the Press Release
A Florida man was sentenced today to four years and six months in prison and ordered to pay $21.7 million in restitution for his role in a health care fraud and wire fraud conspiracy that resulted in over $50 million in false and fraudulent claims being submitted to Medicare.
According to court documents and evidence presented at trial, Steven King, 45, of Miramar, was the chief compliance officer of a pharmacy holding company that fraudulently billed Medicare for dispensing lidocaine and diabetic testing supplies that Medicare beneficiaries did not need or want. King, along with his co-conspirators, operated A1C Holdings LLC, a holding company for a number of pharmacies in various states, including All American Medical Pharmacy in Warren, Michigan. The pharmacies operated by A1C Holdings LLC secured prescriptions and refills for medically unnecessary prescriptions for lidocaine and diabetic testing supplies, in violation of Medicare’s rules and regulations, as well as the pharmacy benefit managers’ rules and regulations with which the pharmacies had contracts.
The evidence presented at trial also showed that King and his co-conspirators took several steps to conceal their scheme, including enrolling their mail order pharmacies as brick-and-mortar retail pharmacies to evade more rigorous oversight, shipping prescription refills for high-reimbursing medications and supplies without patient consent, concealing the ownership of A1C Holdings LLC and its pharmacies, and transferring patients between these pharmacies without patient consent. Each of these steps was taken to ensure that profitable medications and supplies, like lidocaine and diabetic testing supplies, continued to be billed to Medicare.
In June, King was convicted of conspiracy to commit health care fraud and wire fraud.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG), and Special Agent in Charge Cheyvoryea Gibson of the FBI Detroit Field Office made the announcement.
HHS-OIG and the FBI investigated the case.
Trial Attorney Shankar Ramamurthy of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.
Charleston Woman Pleads Guilty to Wire Fraud and Aggravated Identity TheftRead the Press Release
BLUEFIELD, W.Va. – Tabatha Deavers, 30, of Charleston, pleaded guilty today to wire fraud and aggravated identity theft. Deavers admitted that she obtained $176,118.73 through a fraudulent scheme that began with her roommate’s employment with an office cleaning business.
According to court documents and statements made in court, Deavers and her roommate, Brittany King, unlawfully obtained the personal identification information of numerous individuals by using King’s access to local business offices as a cleaning service worker. Deavers and King rerouted the mail of their identity theft victims and opened lines of credit and bank accounts and obtained loans and credit cards in their names.
From approximately December 2020 through at least December 1, 2022, Deavers and King stole money and property from individuals, companies, lenders, financial institutions and car dealerships with their scheme. Deavers admitted that she and King submitted a fraudulent change of address form to the United States Postal Service to reroute one victim’s mail to their Bridge Road apartment in Charleston on June 7, 2022. Deavers further admitted that she attempted to purchase a vehicle from a Charleston area car dealership using the personal identification information of another victim on January 15, 2022.
Deavers is scheduled to be sentenced on March 5, 2024, and faces a maximum penalty of 22 years in prison, three years of supervised release, and a $500,000 fine. Deavers also owes $176,118.73 in restitution.
King, 35, of East Bank, pleaded guilty to wire fraud and aggravated identity theft on October 3, 2023, and awaits sentencing. Co-defendant Amy Deavers, 50, of Glasgow, pleaded guilty to conspiracy to commit wire fraud on October 17, 2023, and awaits sentencing.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Postal Inspection Service, the United States Secret Service, the United States Department of Homeland Security-Homeland Security Investigations (HSI), the U.S. Department of Veterans Affairs Office of Inspector General, and the Kanawha County Sheriff’s Office.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Andrew D. Isabell and Jonathan T. Storage are prosecuting the case, and Assistant United States Attorney Kathleen Robeson provided substantial assistance.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-14.
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Carter Lake Man Sentenced for Conspiracy to Distribute CocaineRead the Press Release
COUNCIL BLUFFS, Iowa – A Carter Lake man was sentenced on Tuesday, November 14, 2023, to 114 months in prison following his plea of guilty to conspiracy to distribute 500 grams or more of cocaine.
Jeremy Allen Bothwell, 35, conspired with other individuals in the sale and distribution of cocaine in Omaha, Nebraska and Carter Lake, Iowa between June 2021 and March 2022. Bothwell stored and distributed cocaine from his Carter Lake residence. Bothwell also instructed others to conceal cocaine in an attempt to avoid law enforcement detection.
Following his prison sentence, Bothwell must serve a five-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 Drug Enforcement Administration, Southwest Iowa Narcotics Task Force, Council Bluffs Police Department, and Omaha, Nebraska Police Department investigated the case.
COVID-19 Relief Fraudster Convicted of Bank FraudRead the Press Release
BOISE – A federal jury in Boise convicted a Georgia woman today for fraudulently obtaining and misusing a $338,958 Paycheck Protection Program loan that the Small Business Administration (SBA) guaranteed under the Coronavirus Relief Aid, Relief, and Economic Security Act.
According to court documents and evidence presented at trial, Khadijah X. Chapman, 59, of Atlanta, worked with co-conspirators to falsify financial information and submit several fraudulent applications to financial institutions in Boise and elsewhere to steal relief funding. Chapman stole $338,958 from a financial institution in Boise, and submitted several other false and fraudulent applications to the SBA and financial institutions around the country in hopes of stealing more funding. Chapman used the stolen funds for personal expenses, such as purchasing jewelry and paying off credit card bills for herself and family members.
The jury convicted Chapman of bank fraud. She is scheduled to be sentenced on Feb. 6, 2024, and faces a maximum penalty of 30 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Earlier this year, Daniel Labrum, 42, of South Jordan, Utah, and Eric O’Neil, 58, of Bethel, Connecticut, who were both involved in the same COVID-19 fraud ring as Chapman, pleaded guilty before a federal district judge in Boise. O’Neil is scheduled to be sentenced on Dec. 7, 2023 and Labrum is scheduled to be sentenced on Dec. 14, 2023.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Josh Hurwit for the District of Idaho, Special Agent in Charge Thomas M. Fattorusso of IRS Criminal Investigation (IRS-CI) New York, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Special Agent in Charge Matthew Miraglia of the FBI Buffalo Field Office, Inspector General Gail S. Ennis of the Social Security Administration Office of the Inspector General (SSA-OIG), Special Agent in Charge Sharon B. MacDermott of SSA-OIG, and Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service (USPIS) Boston Division made the announcement.
IRS-CI, the FBI, SSA-OIG, and USPIS investigated the case.
Trial Attorneys Jennifer Bilinkas and Tamara Livshiz of the Criminal Division’s Fraud Section are prosecuting the case, with assistance from Assistant U.S. Attorney Sean M. Mazorol of the U.S. Attorney’s Office for the District of Idaho.
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COVID-19 Relief Fraudster Convicted of Bank FraudRead the Press Release
A federal jury in Boise, Idaho, convicted a Georgia woman today for fraudulently obtaining and misusing a $338,958 Paycheck Protection Program loan that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents and evidence presented at trial, Khadijah X. Chapman, 59, of Atlanta, worked with co-conspirators to falsify financial information and submit several fraudulent applications to financial institutions in Boise and elsewhere to steal relief funding. Chapman stole $338,958 from a financial institution in Boise and submitted several other false and fraudulent applications to the SBA and financial institutions around the country in hopes of stealing more funding. Chapman used the stolen funds for personal expenses, such as purchasing jewelry and paying off credit card bills for herself and family members.
The jury convicted Chapman of bank fraud. She is scheduled to be sentenced on Feb. 6, 2024, and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Earlier this year, Daniel Labrum and Eric O’Neil, who were both involved in the same COVID-19 fraud ring as Chapman, pleaded guilty before a federal district judge in Boise. They are scheduled to be sentenced later this year.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Josh Hurwit for the District of Idaho, Special Agent in Charge Thomas M. Fattorusso of IRS Criminal Investigation (IRS-CI) New York, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Special Agent in Charge Matthew Miraglia of the FBI Buffalo Field Office, Inspector General Gail S. Ennis of the Social Security Administration Office of the Inspector General (SSA-OIG), Special Agent in Charge Sharon B. MacDermott of SSA-OIG, and Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service (USPIS) Boston Division made the announcement.
IRS-CI, the FBI, SSA-OIG, and USPIS investigated the case.
Trial Attorneys Jennifer Bilinkas and Tamara Livshiz of the Criminal Division’s Fraud Section are prosecuting the case, with invaluable assistance from Assistant U.S. Attorney Sean M. Mazorol and the U.S. Attorney’s Office for the District of Idaho.