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Monday 30 October 2023
U.S. Attorney Jane E. Young Announces the Appointment of a Domestic Terrorism and Violent Crime Assistant U.S. AttorneyRead the Press Release
CONCORD – U.S. Attorney Jane E. Young announces the appointment of Tiffany Scanlon as an Assistant U.S. Attorney. AUSA Scanlon will handle domestic terrorism and other violent crimes in the District of New Hampshire.
Since 2012, AUSA Tiffany Scanlon served as an Assistant District Attorney in the Worcester County District Attorney’s Office in the Major Felony Unit, the Motor Vehicle Homicide Unit, Gang Unit, and the District Court and Juvenile Court Units. Over the last decade, AUSA Scanlon prosecuted numerous criminal cases, including homicides, armed robberies, non-fatal shootings, firearm offenses, and aggravated assaults.
“Assistant U.S. Attorney Scanlon is a veteran violent crime prosecutor,” said U.S. Attorney Jane E. Young. “The District of New Hampshire is fortunate to have gained an attorney with the breadth of Tiffany’s experience in prosecuting violent crimes coupled with her outlook and tenacious approach to investigating and prosecuting complex cases.”
In May 2023, the U.S. Attorney’s Office in the District of New Hampshire was allocated two new attorney positions to address civil rights, domestic terrorism, and violent crime. The U.S. Attorney’s Office is still in the hiring process for an Assistant U.S. Attorney that will focus on Civil Rights.
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Two Russian Nationals Charged for Conspiring to Hack the Taxi Dispatch System at JFK AirportRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and John Gay, the Inspector General of the Port Authority of New York and New Jersey (the “Port Authority”), announced the unsealing of an Indictment charging ALEKSANDR DEREBENETC, a/k/a “Sasha Novgorod,” and KIRILL SHIPULIN, a/k/a “Kirill Russia,” with two counts of conspiracy to commit computer intrusions. The Indictment charges that DEREBENETC and SHIPULIN hacked the electronic taxi dispatch system (the “Dispatch System”) at John F. Kennedy International Airport (“JFK”). Taxi drivers are required to wait in a holding lot at JFK before they are dispatched to pick up a fare. A computer system ensures that taxis are dispatched in the order in which they arrived. DEREBENETC and SHIPULIN conspired with DANIEL ABAYEV and PETER LEYMAN to hack the Dispatch System and move certain taxis to the front of the line in exchange for payment. ABAYEV pled guilty today to one count of conspiracy to commit computer intrusions, and LEYMAN pled guilty to one count of conspiracy to commit computer intrusions on October 4, 2023.
U.S. Attorney Damian Williams said: “As alleged in the indictment, these four defendants conspired to hack into the taxi dispatch system at JFK airport. Cyber hacking can pose grave threats to infrastructure systems that we rely on every day, and our Office is dedicated to pursuing criminal hackers, whether they be in Russia or here in New York.”
Port Authority Inspector General John Gay said: “The significant charges in this alleged hacking conspiracy show that the Port Authority takes seriously our obligation to safe and equitable operations across our facilities. As alleged, this brazen scheme corrupted a system that hard-working taxi drivers rely on to earn a living, all so the defendants could make some extra cash. We are grateful for our partnership with the U.S. Attorney’s Office for the Southern District of New York.”
As alleged in the Indictment:[1]
From at least September 2019 through September 2021, DEREBENETC and SHIPULIN, who are Russian nationals residing in Russia, and ABAYEV and LEYMAN, who are U.S. citizens residing in Queens, New York, engaged in a scheme (the “Hacking Scheme”) to hack the Dispatch System at JFK.
At all relevant times, taxi drivers who sought to pick up a fare at JFK were required to wait in a holding lot at JFK before being dispatched to a specific terminal by the Dispatch System. Taxi drivers were frequently required to wait several hours in the lot before being dispatched to a terminal and were dispatched in approximately the order in which they arrived at the holding lot.
Beginning in 2019, DEREBENETC, SHIPULIN, ABAYEV, and LEYMAN explored and attempted various mechanisms to access the Dispatch System, including bribing someone to insert a flash drive containing malware into computers connected to the Dispatch System, obtaining unauthorized access to the Dispatch System via a Wi-Fi connection, and stealing computer tablets connected to the Dispatch System. The members of the Hacking Scheme also sent messages to each other in which they explicitly discussed their intention to hack the Dispatch System. For example, on or about November 10, 2019, ABAYEV messaged the following to DEREBENETC in Russian: “I know that the Pentagon is being hacked[.]. So, can’t we hack the taxi industry[?]”
At various times between November 2019 and November 2020, DEREBENETC, SHIPULIN, ABAYEV, and LEYMAN successfully hacked the Dispatch System. They used their unauthorized access to alter the Dispatch System and move specific taxis to the front of the line, thereby allowing drivers of those taxis to skip other taxi drivers waiting in the line. ABAYEV and LEYMAN charged taxi drivers $10 each time they were advanced to the front of the line and transferred part of their profits to SHIPULIN and DEREBENETC.
ABAYEV and LEYMAN’s scheme resulted in large numbers of taxi drivers skipping the taxi line. Over the course of the scheme, they enabled as many as 1,000 fraudulently expedited taxi trips a day.
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DEREBENETC, 30, of Nizhniy Novgorod, Russia, and SHIPULIN, 30, of Moscow, Russia, are each charged with two counts of conspiracy to commit computer intrusion. The charges carry a maximum sentence of 10 years in prison.
ABAYEV, 47, and LEYMAN, 49, both of Queens, New York, each pled guilty to one count of conspiracy to commit computer intrusion, which carries a maximum sentence of five years in prison.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge. LEYMAN is scheduled to be sentenced by Judge Crotty on January 11, 2024, at 2:30 p.m., and ABAYEV is scheduled to be sentenced by Judge Crotty on February 12, 2024, at 3:00 p.m. DEREBENETC and SHIPULIN remain at large.
Mr. Williams praised the outstanding work of the Port Authority Office of the Inspector General. Mr. Williams also thanked Homeland Security Investigations for their assistance in the investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Kevin Mead and Steven J. Kochevar are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitutes only allegations, and every fact described therein should be treated as an allegation.
Two District Men Plead Guilty to 2021 Murder of Kerry Odoms in Southeast WashingtonRead the Press Release
WASHINGTON –Andre Smith, 27, and Malachi McFarland, 25, of Washington, D.C., pleaded guilty today in the Superior Court of the District of Columbia to second degree murder while armed in the April 2021 shooting death of Kerry Odoms, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
Sentencing is scheduled for Jan. 12, 2024, before the Honorable Robert Okun.
According to the government’s evidence, just prior to the homicide, Kerry Odoms, 29, of Washington, D.C., was socializing on Apr. 15, 2021 with a group of people that included McFarland, in the parking lot of 3319 10th Place SE, in the Congress Heights neighborhood.
Smith approached the group and moments later, at 9:54 p.m., lunged toward Odoms while firing multiple gunshots. As Smith began shooting at Odoms, McFarland ran a short distance away, returned, and fired a second round of gunshots directly at Odoms. The gunfire from both defendants killed Odoms, who suffered eight gunshot wounds.
In announcing the plea, U.S. Attorney Graves and Acting Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also commended the work of Assistant U.S. Attorneys Andrea Antonelli, Jin Park, and former AUSA Steven Rickard, who investigated and prosecuted the case.
Tucson Man Arrested for Making Multiple Violent Threats Including a Threat to Place Pipe Bombs on School Buses in IndianaRead the Press Release
TUCSON, Ariz. – Amir Safavi Farokhi, 28, of Tucson, was arrested last week on a federal complaint and arrest warrant by the Federal Bureau of Investigation’s Southern Arizona Violent Crime and Gang Task Force for using his telephone in Tucson to make a threat to place pipe bombs on school buses in the Castleton area of Indianapolis, Indiana. Farokhi was also charged with making an interstate threat to rape and murder a female employee of the Bloomington, Indiana Police Department.
The complaint alleges that Farokhi used his telephone in Arizona to call the Indianapolis Police Department, and told police officers they should send officers to a specific location in the Castleton area of Indianapolis because Farokhi planned to place pipe bombs on school buses and shoot any responding police officers. Farokhi also used his telephone in Arizona to transmit a threat to rape and murder an employee of the Bloomington, Indiana Police Department, telling the victim he would wait outside for her at the end of her shift.
The complaint further alleges that Farokhi’s course of threatening behavior extended to two Tucson-area hospitals as well. On October 21, Farokhi is alleged to have called Tucson ER Hospital and threatened to shoot hospital staff and patients. On October 22 and 23, he is alleged to have made similar threats to Northwest Hospital in Tucson.
A complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt. The United States will have up to 30 days from arrest to seek an indictment of Farokhi.
The Federal Bureau of Investigation and the Pima County Sheriff’s Department, as part of the FBI’s Southern Arizona Violent Crime and Gang Task Force, conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, is handling the prosecution.
CASE NUMBER: 23-07725MJ
RELEASE NUMBER: 2023-166_Farohki# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Tennessee Men Sentenced for Illegal Harvest of Crappie in MississippiRead the Press Release
Oxford, MS – Two Tennessee men were sentenced today to a total of $10,550 in fines and restitution for the illegal harvest of crappie from the Enid Lake Spillway.
According to court documents, Jian Wu Huang, 50, and Qiu M Huang, 44, both of Lakeland, Tennessee, pled guilty to one count of taking more than the daily bag limit of crappie from the Enid Lake Spillway on January 1, 2023. While fishing together, the two men caught a total of 171 crappie, which is 141 more fish than the allowed creel limit of 15 crappie each. The men were also using over-sized hooks and in excess of the maximum number of hooks allowed per line.
U.S. Magistrate Judge David A. Sanders ordered each defendant to pay a fine of $1,000 as well as restitution to the Mississippi Department of Wildlife, Fisheries, and Parks in the amount of $4,275. In addition to the fine and restitution, each defendant was placed on probation for a period of one year, during which time each defendant will be prohibited from fishing anywhere in the world and banned from all Corps of Engineers property in the Northern District of Mississippi as a condition of their probation.
U.S. Fish & Wildlife Service Office of Law Enforcement Special Agent in Charge Stephen Clark stated, “We are committed to working collaboratively with the Mississippi Department of Wildlife, Fisheries and Parks, to conserve, protect, and enhance fish, wildlife, plants, and their habitats. The illegal take and interstate transport of a state trust species is a violation of federal law and will be investigated and prosecuted. We will continue to work closely with our state partners to conduct these criminal investigations.”
MDWFP Colonel Jerry Carter remarked, “We appreciate the collaborative investigative efforts of the U.S. Fish & Wildlife Service and prosecution of this case by the U.S. Attorney’s Office. We will continue to work with our federal partners to conserve and protect Mississippi’s natural resources by utilizing all investigative tools available to ensure that those who choose to violate the laws of this state are investigated and prosecuted accordingly.”
This case was investigated by the U.S. Fish and Wildlife Service and the Mississippi Department of Wildlife, Fisheries and Parks. The case was prosecuted by AUSA Robert Mims.
The U.S. Fish and Wildlife Service encourages members of the public to report allegations of wildlife crimes to the Service’s Office of Law Enforcement via the Wildlife Crime Tips page at https://www.fws.gov/wildlife-crime-tips or via phone at 1-844-FWS-TIPS (1-844-397-8477).
St. Louis County Man Admits Financially Exploiting Two Elderly VictimsRead the Press Release
ST. LOUIS – A St. Louis County, Missouri man on Monday admitted stealing a home from one elderly woman and fraudulently accepting hundreds of thousands of dollars from another.
Gino Rives, 36, of Edmundson, pleaded guilty in U.S. District Court in St. Louis to one count of access device fraud and one count of fraudulently effecting transactions. Rives admitted exploiting two elderly victims, M.P. and A.B., from Jan. 1, 2017 through Oct. 17, 2023.
Rives admitted during his guilty plea that he approached M.P., an 87-year-old widow, sometime in 2017, and offered to clean her gutters. He then began to perform various repairs for her and shop for her. M.P. gave Rives her husband’s car in gratitude for his help but denied otherwise compensating him. In July of 2017, a quit claim deed was executed, transferring M.P.’s home to Rives for $1. He moved her into his mother’s home. Rives put M.P. in a nursing home in January of 2023, then began renting her home to his mother. He falsely claimed to nursing home staff that he had power of attorney for M.P. to manage her financial affairs, Rives’ plea says.
Rives’ other victim, 80-year-old A.B., hired Rives sometime before Jan. 17, 2021 to repair her roof for $7,500. After Rives falsely claimed to be a licensed contractor, A.B. hired him to renovate the interior of her house. The one-bedroom, one-bath, 1,100 square-foot home was worth no more than $135,000 in 2021. From March 2018 through 2022, however, Rives received checks totaling $387,600 that were purportedly for home repair. He received another $112,300 through 2023 via checks that were designated for purposes other than home repair or did not list a purpose. Another roughly $151,500 went to four people who were also purportedly doing home repairs. One of those people told investigators that he’d performed some kitchen repairs and then cashed eight of A.B.’s checks, giving the proceeds to Rives who then gave a portion back to the worker.
A St. Louis building inspector estimated the value of repairs at no more than $50,000. There was no indication that promised structural work had been done.
Rives also obtained four vehicles that had been purchased by his elderly victim: a 2020 Dodge Challenger, a 2016 Ford Mustang, a 2017 GMC Sierra and a 2016 Mercedes 350, the plea says.
Rives obtained and used the victim’s debit card to make purchases for himself and relatives, including $2,147.85 in airline tickets for a trip to Phoenix between April 2, 2023 and April 4, 2023. A.B. died in April.
In the plea agreement, Rives has agreed to the forfeiture of the four vehicles that once belonged to A.B., as well as M.P.’s house, a 1978 Ford Fairmont and a 2006 Corvette.
Each charge is punishable up to 10 years in prison, a $250,000 fine, or both. Rives will also be ordered to repay the money.
The Social Security Administration Office of Inspector General and the U.S. Secret Service investigated the case. Assistant U.S. Attorney Tracy Berry is prosecuting the case.
Anyone with concerns about suspected abuse or neglect of the elderly or disabled should contact Missouri’s Adult Abuse and Neglect Hotline at 800-392-0210.
Shrewsbury Man Arrested for Child Pornography OffensesRead the Press Release
BOSTON – A mentor for the Shrewsbury High School Robotics Team was arrested today for allegedly possessing and transporting child pornography.
Brian Lingard, 60, of Shrewsbury was charged with transportation of and possession of child pornography. He was arrested this morning and will appear in federal court in Worcester at 3:45 p.m. today before U.S. District Court Magistrate Judge David H. Hennessy.
According to the complaint affidavit, on Oct. 19, 2023, Lingard flew from Paris to Boston. During a customs screening, it is alleged that Lingard was found to possess images depicting child sexual abuse material (CSAM) on his phone. A subsequent search of devices stored at Lingard’s residence revealed an additional collection of alleged CSAM.Data extracted from the SD card of Lingard’s phone allegedly revealed approximately 23 images of CSAM depicting minors who appear to be under 10 years old. At least two of the images depict minors who have previously been identified by the National Center for Missing and Exploited Children as child sexual abuse victims.
It is further alleged that the SD card also contained multiple images of fully clothed minor females who appear to be in a school setting. The images appear to have been taken surreptitiously and are focused on the buttocks of the minor females. A review of the metadata associated with these photos allegedly revealed that some were taken at Shrewsbury High School.
The charge of transportation of child pornography provides for a sentence of not less than five years and up to 20 years in prison, up to a lifetime of supervised release and a fine of $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison and up to a lifetime of supervised release and a fine of $250,000.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England; and Michael McCarthy, Acting Director of Field Operations for U.S. Customs and Border Protection, Boston Field Office made the announcement today. Assistant U.S. Attorney Kristen Noto of the Worcester Branch Office is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Real Estate Company Executive Arrested on Charges Alleging He Bribed San Luis Obispo County Supervisor Then Concealed CrimesRead the Press Release
INDICTMENTLOS ANGELES – An executive at a San Luis Obispo-based real estate development company was arrested today on a federal grand jury indictment alleging he paid a local politician more than $95,000 in bribes and gifts in exchange for official acts benefiting the company’s development projects and then covered up the bribery scheme by forging documents.
Ryan Wright, 37, a.k.a. “Ryan Petetit,” of Grover Beach, was arrested this morning on a three-count indictment charging him with conspiracy, falsification of records, and obstruction of justice. The indictment was returned on October 4 and was unsealed today.
Wright is expected to make his initial appearance and be arraigned this afternoon in United States District Court in downtown Los Angeles.
According to the indictment, from at least June 2014 to May 2017, Wright conspired with his business partner, identified in court documents as “Co-Conspirator 1,” to bribe an elected official identified as “County Supervisor 1” with financial benefits, including money and gifts totaling more than $95,000. In exchange, County Supervisor 1 advocated for Wright’s real estate development company’s projects and prospective projects with City of San Luis Obispo officials and voted for Wright’s company’s projects on the San Luis Obispo County Board of Supervisors.
Wright, Co-Conspirator 1, and County Supervisor 1 then covered up the bribes by using County Supervisor 1’s consulting company to funnel and conceal bribe payments to County Supervisor 1. County Supervisor 1 then provided false information on his 2015 and 2016 annual state conflict of interest disclosure forms requiring him to report income he had received. Through the consulting company, Wright allegedly paid bribes to County Supervisor 1 and flew him on a jet to watch a Major League Baseball playoff game hosted by the San Francisco Giants, the supervisor’s favorite team.
To conceal the scheme, in response to a federal grand jury subpoena served on his development company, Wright allegedly caused the company to produce falsified records to the FBI.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
If convicted of all charges, Wright would face a statutory maximum sentence of five years in federal prison for the conspiracy count, a statutory maximum sentence of 10 years in federal prison for the obstruction of justice count, and up to 20 years in federal prison for the falsification of records count.
The FBI and IRS Criminal Investigation are investigating this matter.
Assistant United States Attorneys Thomas F. Rybarczyk and Daniel J. O’Brien of the Public Corruption and Civil Rights Section are prosecuting this case.
Raceland Man Pleads Guilty to Violations of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – JAMYREN RICHARD, age 23, of Raceland, Louisiana, pled guilty on October 26, 2023, before United States District Judge Barry W. Ashe to two counts of possession of firearms by a convicted felon, in violation of Title 18, United States Code, Sections 922(g)(1), and 924(a)(2), announced U.S. Attorney Duane A. Evans.
According to court records, on March 26, 2021, RICHARD was a passenger in a vehicle that was stopped by the Harahan Police Department. During the stop, officers located two loaded firearms inside the vehicle and RICHARD admitted to possessing both firearms. On June 15, 2021, RICHARD fled from a car that was being pursued by the Lafourche Parish Sheriff’s Office. RICHARD carried a semiautomatic rifle while fleeing. He then entered a female’s home, and hid the rifle under the master bed mattress. RICHARD later admitted possessing all three firearms knowing he had a prior felony conviction that prohibited him from possessing any firearm.
RICHARD is scheduled to be sentenced on February 29, 2024. As to each count, RICHARD faces up to ten (10) years imprisonment, a fine of up to $10,000,000.00, up to three (3) years of supervised release following any term of imprisonment and a $100 mandatory special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Harahan Police Department, and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Project Manager Admits to Submitting Fake Permit for Fill of WetlandsRead the Press Release
NEWS RELEASE SUMMARY – October 30, 2023
SAN DIEGO – Fiona Skye McKenna, a project manager for a firm developing properties in the Otay Mesa area, pleaded guilty in federal court today, admitting that she falsified permits that led to the illegal discharge of pollutants in connection with a project known as the International Industrial Park.
In pleading guilty, McKenna admitted that she forged permits purportedly issued by the California Regional Water Quality Control Board and the U.S. Army Corps of Engineers to place fill dirt, rock and sand into Johnson Canyon Creek at the International Industrial Park site. McKenna falsified the permits by cutting and pasting from permits the firm had obtained for work at another site.
On October 26, 2022, McKenna submitted the forged permits to the San Diego County Land Development Office to obtain a grading permit. After receiving the grading permit, the firm discharged fill dirt, rock and sand into portions of Johnson Canyon Creek, utilizing dump trucks and heavy duty powered shovels. The wetlands area of Johnson Creek flows into the Otay River, which flows into San Diego Bay.
According to the EPA, wetlands are important because, in addition to providing food and habitat for a diverse array of plants and animals, they act as buffers to flooding and erosion and serve as key links in the global water cycle. Because of their sponge-like ability to absorb water, wetlands can slow the momentum of flood waters or a coastal storm surge. Wetlands’ highly developed root systems also hold soil in place and filter pollutants, naturally improving water quality.
Sentencing is set for January 19, 2024, at 9:00 a.m., before U.S. District Judge Ruth B. Montenegro.
This case is being prosecuted by Assistant U.S. Attorney Melanie K. Pierson.
DEFENDANT Case Number 23cr2249-RBM
Fiona Skye McKenna Age: 37 San Diego, CA
SUMMARY OF CHARGES
Illegal Discharge of Pollutants – Title 33, U.S.C., Sections 1311(a) and 1319(c)(2)(A)
Maximum penalty: Three years in prison and fine of not less than $5,000 or more than $50,000 per day of violation
AGENCY
U.S. Environmental Protection Agency, Criminal Investigations Division; U.S. Army Corps of Engineers; California State Water Board Office of Enforcement
Poplar woman sentenced to more than five years in prison for trafficking meth on Fort Peck Indian Reservation; customer died after taking the drugRead the Press Release
GREAT FALLS — A Poplar woman was sentenced today to five years and four months in prison, to be followed by three years of supervised release, after she admitted to a methamphetamine trafficking crime in which a customer died shortly after taking the drug, U.S. Attorney Jesse Laslovich said.
Danyell Rose Black Dog, 23, pleaded guilty in May to possession with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that on Aug. 27, 2021, Fort Peck Tribes law enforcement officers responded to a 911 medical call regarding a woman identified as Jane Doe. Doe was unresponsive and officers began CPR. Family members told officers at the scene that Doe had used meth prior to the 911 call. Emergency medical responders arrived and transported Doe to the hospital, where she was pronounced dead.
The government further alleged the investigation determined that Doe would buy $5 or $10 worth of meth from Black Dog on a regular basis, and that Black Dog had sold to Doe two to three times a week. Black Dog sent text information to another individual in which she said she was on her way to sell Doe meth approximately 30 minutes before the incident and how she sold and delivered it to Doe. An autopsy of Doe conducted by the Montana state medical examiner listed the cause of death as methamphetamine toxicity.
The U.S. Attorney’s Office prosecuted the case. The FBI and Fort Peck Tribes Department of Law and Justice conducted the investigation.
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Perry County Woman Sentenced for Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky.— A Hazard, Ky., woman, Sherry L. Spencer, 46, was sentenced to 190 months in federal prison on Monday, by U.S. District Judge Robert Wier, for possession with intent to distribute 500 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to Spencer’s plea agreement, on July 26, 2022, law enforcement conducted a search of her residence and located over 1,344 grams of methamphetamine and a loaded handgun in proximity to the methamphetamine. Additionally, law enforcement found another loaded handgun and an AR-15 style rifle. Spencer admitted that she possessed these firearms for protection in furtherance of her drug trafficking.
Under federal law, Spencer must serve 85 percent of her prison sentence. Upon her release from prison, she will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Michael E. Stansbury, Special Agent in Charge, FBI, Louisville Field Office; and Phillip J. Burnett, Commissioner of the Kentucky State Police (KSP, jointly announced the sentence.
The investigation was conducted by the FBI and KSP. Assistant U.S. Attorney Andrew Trimble prosecuted the case on behalf of the United States.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Orange County Man Pleads Guilty to Running Investment Scams That Raised More Than $17 Million via False Promises of House Flipping ProfitsRead the Press Release
LOS ANGELES – A Costa Mesa man pleaded guilty today to federal criminal charges for running fraudulent investment schemes that raised more than $17 million by promising investors – several of them elderly – returns of up to 10% that would be generated through real estate deals that turned out to be bogus, and for disobeying a court order to go to jail for violating the terms of his pretrial release.
Brett Barber, 44, a former co-owner of the Newport Beach-based BNZ Capital One LLC and National American Capital, pleaded guilty to two counts of wire fraud and one count of criminal contempt.
According to his plea agreement, from May 2019 to October 2021, Barber participated in two schemes to defraud victim investors out of their money and property.
In the first scheme, BNZ Capital, its principals and several marketers raised money by falsely representing that the firm bought and sold real estate projects and “flipped” real estate. Barber, co-conspirator Louis Zimmerle, 64, of Sacramento, and the marketers falsely promised investors a “guaranteed” return of between 8% and 10%, as well as potential bonuses based on successful deals. According to court documents, Barber told investors that their funds were “safe” and “FDIC insured.”
In fact, while BNZ Capital did purchase some real estate, it did not take any substantial steps to develop parcels, nor did BNZ flip real estate for a profit. Rather, BNZ primarily used investor funds to pay Barber, Zimmerle and others associated with the scheme, including purchasing residences where Barber and Zimmerle lived. Some of the investors’ money was used to repay earlier investors.
During this scheme, Barber, Zimmerle, and the marketers solicited or caused to be transferred to BNZ Capital approximately $13.8 million from victim investors. Investigators estimate that actual losses resulting from this scheme are at least $7 million.
Barber admitted in his plea agreement that he received and kept approximately $2,933,970 of investor money for his personal gain. At least five BNZ Capital investors were elderly, vulnerable victims who suffered substantial hardship because of the fraud committed against them.
After Barber learned that federal officials were investigating BNZ Capital, he began a second fraudulent scheme, this time involving a company he formed in January 2021 called National American Capital (NAC). The NAC scheme operated, in substance, the same way as the BNZ Capital fraud. That is, Barber and marketers working at his direction lied to investors by saying their money would be used to fund real estate development projects. In fact, there were no such projects, and the only way NAC could repay earlier investors was by soliciting money from new investors.
Specifically, in October 2021, Barber met with a person he believed was a prospective investor, but who in fact was an undercover law enforcement official. During this meeting, Barber told several lies: that NAC had been in business for 20 years, that it owned 10 parcels of land in Laguna Beach, and that it had purchased property in Newport Beach and turned in into a four-plex. None of these statements was true.
Barber admitted in his plea agreement that this scheme caused a loss of at least $3.5 million. He further admitted to receiving and keeping at least $388,669 of investor money for his personal gain.
During the BNZ Capital and NAC schemes, Barber failed to disclose to investors that he previously was barred from acting as or associating with a broker-dealer by the Financial Industry Regulatory Authority (FINRA).
Finally, after a federal grand jury indicted Barber in October 2021, he was released on bond. In January 2023, a court found that Barber violated the terms of his pretrial release and ordered him to surrender to the United States Marshals Service by January 13. Barber willfully disobeyed the court’s order and failed to surrender. In March 2023, Barber was arrested in Santa Cruz County, California. He eventually was transferred to federal custody in Los Angeles, where he remains.
United States District Judge Otis D. Wright II scheduled a March 4, 2024 sentencing hearing, at which time Barber will face a statutory maximum sentence of 20 years in federal prison for each wire fraud count, and a statutory maximum sentence of life imprisonment for the criminal contempt count.
Zimmerle pleaded guilty in January 2022 to one count of wire fraud. In his plea agreement, Zimmerle admitted to participating in the BNZ Capital scam and that he received and kept approximately $582,815 of victim investor money. His sentencing hearing is scheduled for January 22, 2024.
In October 2021, the United States Securities and Exchange Commission (SEC) filed a civil lawsuit against Barber, Zimmerle and BNZ Capital for fraudulently raising more than $13 million from over 100 retail investors.
The FBI is investigating this matter. The SEC provided substantial assistance.
Assistant United States Attorney Bradley E. Marrett of the Santa Ana Branch Office is prosecuting this case.
Orange County Businessman Sentenced to More Than 5 Years in Federal Prison for Scamming Investors Out of Nearly $6.2 MillionRead the Press Release
LOS ANGELES – The owner of an Orange County real estate finance business was sentenced today to 63 months in federal prison for fraudulently obtaining nearly $6.2 million, most of which he took by making false promises to an investor that shares of his private company were about to be publicly traded on the Nasdaq stock exchange.
Jacques Poujade, 63, of Irvine, was sentenced by United States District Judge Mark C. Scarsi, who also ordered him to pay $6,170,600 in restitution.
Poujade pleaded guilty on July 24 to one count of securities fraud.
Poujade is the owner and chief financial officer of Tri-Emerald Financial Group, a Lake Forest-based realty services company that operated as a residential mortgage lender. Tri-Emerald funded loans as a mortgage banker, with the intent to hold the funded loans for immediate resale to financial institutions that purchased the loans for investments. Neither Tri-Emerald nor its securities were ever registered with the United States Securities and Exchange Commission.
From February 2015 to May 2020, Poujade sold unregistered securities to a victim investor by telling the victim a series of lies, including about the timing and likelihood of Tri-Emerald’s initial public offering (IPO) and the resulting share price. The victim purchased shares in Tri-Emerald at $10 per share, after Poujade represented they were “securities” under federal law and would exceed the price of $100 per share once the company went public.
Poujade falsely promised the victim that Tri-Emerald was a pre-IPO opportunity that would provide high returns when the company soon went public on Nasdaq. In fact, Tri-Emerald had not completed the necessary steps to undertake an IPO, including filling out the required SEC paperwork or formally engaging the investment banks Poujade falsely told the victim he had engaged as underwriters.
He further lied to the victim by saying one investment bank “was super excited about moving forward” and estimated that Tri-Emerald would “be a billion dollar company in under 16 months,” according to his plea agreement.
He also said Tri-Emerald was using the victim’s investment to cover IPO costs when, in fact, Poujade used a substantial portion of the funds for general Tri-Emerald operating expenses and to make lulling payments and litigation settlement payments to previous Tri-Emerald investors. Poujade also used a portion of the funds for personal expenditures in lieu of taking a salary.
“Particularly troubling is that in executing his scheme to defraud, [Poujade] ruthlessly preyed upon [the victim] to drain her of her entire life savings,” prosecutors argued in a sentencing memorandum. “[Poujade] not only conned [the victim] out of her money but he did so by betraying her trust after forging an intimate and faith-based relationship with her.”
In total, Poujade fraudulently obtained approximately $5,255,600 from the victim.
Poujade also defrauded another victim and that victim’s investment group in July 2016 by convincing them to purchase 30-day promissory notes issued by LendPlus Holdings, another one of Poujade’s companies. These notes purportedly were to be used to increase Tri-Emerald’s warehouse line of credit, which would allow Tri-Emerald to fund a larger volume of mortgages.
At the end of the term of the 30-day promissory notes, instead of repaying victim investors, Poujade continuously rolled victim investors’ funds over into the next month. On numerous occasions, Poujade lulled the victims by falsely claiming their money was safe in a reserve account and LendPlus was using their funds to improve Tri-Emerald’s loan production and line of credit.
In fact, Poujade used a substantial portion of these funds to make lulling payments to previous Tri-Emerald investors, to pay Tri-Emerald’s operating expenses, and for his own personal use, including paying rent on his residence.
Poujade defrauded these investors out of approximately $915,000.
The FBI and the United States Department of Housing and Urban Development Office of Inspector General investigated this matter.
Special Assistant United States Attorney Ryan G. Adams of the Corporate and Securities Fraud Strike Force prosecuted this case.
Operation Smoke and Mirrors Update: Charleston Man Sentenced to Prison for Role in Methamphetamine Trafficking OrganizationRead the Press Release
CHARLESTON, W.Va. – Charles Norman Pannell, 44, of Charleston, was sentenced today to four years and nine months in prison, to be followed by three years of supervised release, for conspiracy to distribute cocaine. Pannell admitted to his role in a drug trafficking organization (DTO) that operated in the Charleston area.
According to court documents and statements made in court, from about December 2022 to around March 2023, Pannell conspired with other individuals to distribute approximately 35 pounds of cocaine in the Charleston area. Pannell regularly obtained cocaine from a co-conspirator, sometimes multiple times per day, and would typically obtain one-half to one ounce of cocaine at a time. Pannell often had a third-party customer waiting to purchase the cocaine before he obtained it.
On March 20, 2023, law enforcement officers watched Pannell meet with his co-conspirator to obtain cocaine. Shortly after the meeting, officers conducted a traffic stop of Pannell’s vehicle and found approximately 1 ounce of cocaine in his possession.
Pannell is among 32 individuals indicted as a result of Operation Smoke and Mirrors, a major drug trafficking investigation that has yielded the largest methamphetamine seizure in West Virginia history. Law enforcement seized well over 400 pounds of methamphetamine as well as 40 pounds of cocaine, 3 pounds of fentanyl, 19 firearms and $935,000 in cash.
Pannell and 20 other defendants have pleaded guilty. Indictments against the remaining defendants are pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Postal Inspection Service, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the West Virginia National Guard Counter Drug program, the Kanawha County Sheriff’s Office, the Charleston Police Department, the Putnam County Sheriff’s Office and the Raleigh County Sheriff's Office. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.
Chief United States District Judge Thomas E. Johnston imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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-31.
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Omaha Man Sentenced to more than 12 Years’ Imprisonment for Conspiring to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Susan Lehr announced that Baldemar Rodriguez Baldwin, 47, of Omaha, Nebraska, was sentenced in Omaha on October 27, 2023, in federal court for Conspiracy to Distribute and Possession with Intent to Distribute more than 50 grams of Methamphetamine (actual). Chief United States District Court Judge Robert F. Rossiter Jr. sentenced Baldwin to 147 months’ imprisonment. There is no parole in the federal system. After Baldwin’s release from prison, he will begin a 5-year term of supervised release.
On August 25, 2021, law enforcement utilized a cooperating witness who purchased 104 grams of actual methamphetamine from Baldwin inside of his Omaha apartment.
On September 2, 2021, law enforcement along with Baldemar’s Probation Officer contacted Baldemar at his Omaha apartment to conduct a probation search. Baldemar was advised of his rights and the reason for the search. Baldemar admitted to purchasing a ½ pound of methamphetamine approximately one month prior and selling it to make some quick money. When told that no meth was found during the search, Baldemar said he must have gotten rid of it. The search did reveal a drug scale with residue that Baldemar said would be dirty as he had used it. At the time he sold the meth to the cooperating witness, Baldemar was on supervised release for a 2012 drug conviction in which he was sentenced to more than 10 years’ imprisonment.
This case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.
Oldsmar Man Indicted for Producing, Distributing, and Possessing Child Sexual Abuse MaterialRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Justin Ryan Culmo, (39, Oldsmar) with three counts of production of child sex abuse material, one count of distribution, and one count of possession of child sexual abuse material. If convicted, Culmo faces a minimum mandatory penalty of 15 years, up to 30 years, in federal prison for each production count, a minimum mandatory 5 years, up to 20 years, for the distribution count, and up to 20 years in federal prison for the possession offense. The indictment also notifies Culmo that the United States intends to forfeit personal property that was used to facilitate the offenses.
According to a previously filed complaint affidavit and the indictment, Culmo has been linked to an online community of individuals who regularly produce, distribute, and receive child sexual abuse material via hidden service websites also known as dark web sites. The websites Culmo accessed are exclusively dedicated to the sexual abuse of children. Culmo allegedly produced and distributed child sexual abuse material on these sites.
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 Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Stacie B. Harris.
Any person who was, or knows of someone who may have been, a possible victim of Culmo is urged to contact HSI at 1-866-347-2423 or http://www.ice.gov/webform/hsi-tip-form.
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. Attorney’s Offices and the 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.
If you see something, say something. HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free Tip Line at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators. From outside the U.S. and Canada, callers should dial 802-872-6199. Hearing impaired users can call TTY 802-872-6196.
Suspected child sexual exploitation or missing children may also be reported to the National Center for Missing & Exploited Children, an Operation Predator partner, via its toll-free 24-hour hotline, 1-800-THE-LOST (800-843-5678).
Download IndictmentNew Orleans Man Pleads Guilty to Violations of the Federal Gun Control and Federal Controlled Substances ActsRead the Press Release
NEW ORLEANS, LOUISIANA -- U.S. Attorney Duane A. Evans announced today that BURNEAL CARNEY, age 28, of New Orleans, plead guilty to three counts of violating the Federal Gun Control and Federal Controlled Substances Acts. Specifically, he is charged with possession with intent to distribute controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(C), and 841(b)(1)(D); possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A)(i); and being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1).
According to court documents, on January 31, 2023, in response to complaints of gun violence and drug trafficking, NOPD officers were monitoring the 1500 block of South Liberty Street when they observed CARNEY engaging in drug trafficking while possessing a firearm. The officers stopped CARNEY and, after obtaining a search warrant for his vehicle, found a loaded Glock Model 17, 9milli-meter handgun, and additional ammunition. Officers also recovered 102.92 grams of marijuana in a jar and in plastic baggies, 3.08 grams of cocaine, 0.09 grams of methamphetamine, and 2 digital scales.
Sentencing in this case is scheduled for February 15, 2024. CARNEY faces a maximum sentence of twenty (20) years imprisonment, up to a $1,000,000.00 fine and at least three (3) years of supervised release for possession with intent to distribute controlled substances; a maximum of five (5) years to life to run consecutively, up to a $250,000 fine, and up to five (5) years of supervised release for possession of a firearm in furtherance of a drug trafficking crime; and a maximum statutory sentence of fifteen (15) years, up to a $250,000 fine, and up to 3 years of supervised release for being a felon in possession of a firearm. Each charge also carries a $100.00 mandatory special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of the New Orleans Police Department and the Federal Bureau of Investigation in investigating this matter. Assistant U.S. Attorney M. Irene González of the General Crimes Unit, is in charge of the prosecution.
New Jersey Couple Resentenced for Child AbuseRead the Press Release
NEWARK, N.J. – A former U.S. Army major and his wife were sentenced today for a fourth time for their respective roles in abusing their adopted children – who all were less than 4 years old and developmentally delayed – through neglectful and cruel acts, including breaking their bones, denying them medical attention, withholding water and force-feeding them hot sauce, U.S. Attorney Philip R. Sellinger announced.
Carolyn Jackson, 46, was sentenced to 140 months in prison and her husband, John E. Jackson, 48, formerly a major in the Army at the Picatinny Arsenal Installation in Morris County, New Jersey, was sentenced to 108 months in prison.
U.S. Attorney Philip R. Sellinger“Carolyn Jackson and John Jackson inflicted cruel and devastating abuse on three child victims over five years. The defendants’ systematic abuse was horrifying, and included physical assaults, withholding of food, water, and medical care, and forcing them to ingest hot sauce, among other inhumane treatment. Their victims were innocent and vulnerable children placed in their care, but who were treated with unimaginable cruelty. For over a decade, this Office has pursued justice for these victims whose childhoods and lives were irretrievably damaged by the defendants’ abuse. The prison sentences imposed today hold Carolyn Jackson and John Jackson accountable for their horrific crimes, and bring a measure of justice for their victims.”
“We work tirelessly to seek justice for victims of the cases we investigate,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Many times, the punishments do not fit the crime. This couple abused developmentally challenged toddlers in ways that seem unimaginable and unbelievably inhumane. They are now facing the justice they deserve – and their victims deserve.”
The Jacksons were each found guilty in July 2015 following a four-month trial in Newark federal court of one count of conspiracy to endanger the welfare of a child; Carolyn Jackson was found guilty of 11 substantive counts of endangering the welfare of a child and John Jackson was found guilty of nine substantive counts of endangering the welfare of a child.
At the first sentencing in December 2015, Carolyn Jackson received 24 months in prison and John Jackson received probation and 400 hours of community service. The government appealed their sentences to the U.S. Court of Appeals for the Third Circuit, which in July 2017 found several errors in the sentencing process. The defendants were resentenced on April 11, 2018, at which time Carolyn Jackson received a sentence of 40 months in prison, with credit for time served, and John Jackson received the same probationary sentence. The government appealed for a second time and the U.S. Court of Appeals vacated and remanded for another resentencing after finding errors again.
At the third sentencing hearing, Carolyn Jackson received a time-served sentence with an additional year of supervised release. John Jackson received an 18-month term of home confinement. The government appealed for a third time and the U.S. Court of Appeals vacated and remanded for a third resentencing after finding additional errors. The Court of Appeals also ordered that the case be reassigned. In April 2023, it was reassigned to U.S. District Judge Susan D. Wigenton, who imposed the sentences today.
The case falls under federal jurisdiction because the crimes were committed on a military base. John Jackson was discharged from the Army in May 2015.
According to documents filed in this case and the evidence at trial:
From August 2005 until April 23, 2010, Carolyn and John Jackson conspired to engage in a constant course of neglect and cruelty towards three children they fostered and then adopted. The Jacksons told their biological children not to report the physical assaults to others, saying that the punishments and disciplinary techniques were justified, as they were “training” the adopted children how to behave.
After John Jackson was informed by a family friend that the oldest biological child had revealed the abuse in the Jackson household, John Jackson reported the breach to Carolyn Jackson, who retaliated against that biological child by beating the child 30 times with a belt.
As part of the conspiracy, the Jacksons physically assaulted their adopted children with various objects, causing two children to sustain fractured bones (including a fractured spine, fractured skull and fractured upper arms); failed to seek prompt medical attention for their injuries, leading to the partial amputation of one child’s finger and the near-death of another; withheld sufficient nourishment and food from their adopted children; withheld adequate water from two of their children and, at times, prohibited them from drinking water altogether; forced two of the children to consume foods intended to cause them pain and suffering, such as red pepper flakes and hot sauce, and caused one child to ingest excessive sodium or sodium-laden substances while being deprived of water, leading to a life-threatening condition on two separate occasions in two states. The Jacksons even punished one adopted child, who had to resort to sneaking food and drinking from the toilet, by hitting the child, making the child ingest hot sauce, and forcing the child to eat a raw onion like an apple.
In addition to the prison terms, Judge Wigenton sentenced each of the defendants to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Dennehy in Newark, with the investigation leading to today’s sentencings. He also thanked the Department of the Army Criminal Investigation Division, Northeast Field Office, under the direction of Special Agent in Charge Joel Kirch; and the Morris County Prosecutor’s Office, under the direction of Prosecutor Robert J. Carroll.
The government is represented by Assistant U.S. Attorneys Desiree L. Grace and John F. Romano of the U.S. Attorney’s Office in Newark.
Nevada Man Arrested and Charged for Making Threats to United States SenatorRead the Press Release
LAS VEGAS – A Las Vegas man made his initial appearance in federal court on October 27, 2023, for making threatening communications to a United States Senator from Nevada.
According to allegations contained in a criminal complaint, between October 11, 2023 and October 19, 2023, John Anthony Miller, 43, left numerous threatening voicemails at the office of a United States Senator. On October 17, 2023, Miller threatened to assault, kidnap, or murder the United States Senator with intent to impede, intimidate, or interfere with the United States Senator while engaged in the performance of official duties, or with intent to retaliate against the United States Senator on account of the performance of official duties.
Additionally, on October 18, 2023, at the Lloyd D. George Courthouse in Las Vegas, Miller stated that he was going to see the United States Senator. He refused to fully cooperate with a Court Security Officer and was denied entry into the courthouse. After being refused entry, he became agitated and started yelling and shouting profanities.
Miller was arrested on October 26, 2023. He is charged with one count of threatening a Federal official. A preliminary hearing has been scheduled for November 13, 2023, before United States Magistrate Judge Elayna J. Youchah.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI Las Vegas Division made the announcement.
This case was investigated by the FBI Las Vegas Division with valuable assistance provided by the Las Vegas Metropolitan Police Department, the U.S. Marshals Service, and the U.S. Capitol Police. Assistant United States Attorney Jacob Operskalski is prosecuting the case.
To report suspected threats or violent acts, contact the FBI at 1-800-CALL-FBI (225-5324) or file an online complaint at www.tips.fbi.gov. If someone is in imminent danger or risk of harm, contact 911 or your local police immediately.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Missouri Man Pleads Guilty to Assault with a Dangerous WeaponRead the Press Release
TULSA, Okla. – A Carthage, Missouri man pleaded guilty today to assault with a dangerous weapon with intent to do bodily harm in Indian Country in federal court, announced U.S. Attorney Clint Johnson.
According to the plea agreement, Koby Caiden Stark, 22, admitted to discharging a firearm at vehicle that contained 3 other people. Stark admits that he was not acting in self-defense. The incident occurred within the boundaries of the Ottawa reservation. All 3 victims are tribal members. One victim is a member of the Cherokee Nation, the second is a member of the Choctaw Nation, and the third is a member of the Chickasaw Nation.
Stark has been in custody and will remain until he is sentenced at a later date. He faces a penalty of up to 10 years in prison.
A federal district court judge will determine any sentence or fine after considering the U.S. Sentencing Guidelines and other statutory factors.The Bureau of Indian Affairs and Miami Police Department conducted the investigation. Assistant U.S. Attorney Stephanie N. Ihler is prosecuting the case.
Minnesota Fentanyl Dealer Sentenced to Federal PrisonRead the Press Release
A Minnesota man who intended to distribute pills containing fentanyl was sentenced on October 27, 2023, to more than four years in federal prison.
Khalil Petroske, age 22, from St. Paul, Minnesota, received the prison term after a June 13, 2023 guilty plea to one count of possession with intent to distribute a controlled substance.
Information disclosed at sentencing showed that, on July 23, 2022, law enforcement officers stopped the vehicle Petroske was driving. During the traffic stop, officers seized a baggie of blue pills containing fentanyl from an air vent. Petroske was arrested and, while in the back of a patrol car, Petroske removed a baggie of marijuana and a baggie containing more blue pills containing fentanyl from his pants and dropped them in the back of the patrol car. In total, Petroske possessed 30.73 grams of fentanyl with the intent to distribute it.
Petroske was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Petroske was sentenced to 51 months’ imprisonment, and he must also serve a three‑year term of supervised release after the prison term. There is no parole in the federal system.
Petroske is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Adam Vander Stoep and was investigated by the Urbana Police Department and the Drug Enforcement Administration.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-00028-CJW. Follow us on Twitter @USAO_NDIA.
Mexican national sentenced to two years in prison for trafficking meth, fentanyl on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Mexican national was sentenced today to two years in prison, to be followed by three years of supervised release, for trafficking methamphetamine and fentanyl on the Rocky Boy’s Indian Reservation, U.S. Attorney Jesse Laslovich said.
Evirso Real Ampude, aka Poncho, 48, pleaded guilty in May, to possession with intent to distribute controlled substances.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that in the fall of 2021, law enforcement learned that a Mexican national, known as Poncho and later identified as Ampude, was distributing meth and fentanyl on the Rocky Boy’s Indian Reservation. Several witnesses reported receiving meth, fentanyl or both from Ampude, and multiple witnesses reported working with Ampude to distribute drugs. In August 2022, Ampude was arrested during a traffic stop and was found in possession of a fentanyl pill and a half a gram of meth. In the vehicle was approximately $8,000 in cash and three cell phones.
Assistant U.S. Attorneys Ethan R. Plaut and Wendy A. Johnson prosecuted the case. The FBI, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives, Border Patrol, Tri-Agency Task Force and Montana Highway Patrol 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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Martinsville Man Pleads Guilty to Methamphetamine and Gun ChargeRead the Press Release
ROANOKE, Va. – A Martinsville, Virginia man pled guilty last week in United States District Court to one count of possession with intent to distribute five grams or more of methamphetamine and one count of being a felon in possession of a firearm.
Donald Edward Ponder, III, 36, will be sentenced on February 29, 2024.
According to court documents, on May 4, 2022, officers with the Martinsville Police Department encountered Ponder walking towards Fidelity Bank in Martinsville, Virginia. Ponder had an outstanding warrant for his arrest and was known to local police.
As Ponder approached the entrance of the bank, officers placed him under arrest for the outstanding warrant and escorted him away from bank customers and into the parking lot. During a subsequent search of Ponder, officers discovered a Jennings .22 caliber pistol in his right hip pocket and observed a black zip container hanging from his front belt loop. A search of that container revealed 17 individually packaged jewelry baggies containing approximately 11 grams of methamphetamine. Ponder told officers there was another firearm in his backpack. A search of the backpack revealed a Taurus G2C 9mm pistol, an additional G2C magazine, a baggie of jewelry bags, and a working electronic digital scale. Both pistols were fully loaded with one bullet in each chamber. Further investigation revealed the defendant had been previously convicted of a felony and was prohibited from possessing a firearm.
At sentencing, Ponder faces a minimum sentence of five years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Christopher R. Kavanaugh and Craig B. Kailimai, Special Agent in Charge of the Washington Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives, made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Martinsville Police Department investigated the case.
Special Assistant United States Attorney J. Parker Gochenour, an Assistant Attorney General with the Virginia Attorney General’s Major Crimes and Emerging Threats Section is prosecuting the case.
Martinsburg woman sentenced to 40 years for trafficking a teenagerRead the Press Release
MARTINSBURG, WEST VIRGINIA – Destiny Rebecca Somersall, age 41, of Martinsburg, West Virginia, was sentenced today to 40 years in federal prison for sex trafficking of a child.
According to court documents and statements made in court, Somersall befriended a Florida man, 76-year-old John Balch, who requested photos and videos of a minor in exchange for money and gifts. Somersall sent sexual photographs and videos of the minor. One of the videos included a second victim. Somersall later agreed to drive the teen to a hotel in Maryland for sexual contact with Balch for money on multiple occasions. Investigators found at least 60 cash transactions between Balch and Somersall over a period of two years totaling $13,725.
Balch was indicted in the District of Maryland and pled guilty to related charges.
Assistant U.S. Attorney Kimberley Crockett prosecuted the case on behalf of the government.
The Federal Bureau of Investigation and Homeland Security Investigations investigated. The U.S. Attorney’s Office, District of Maryland assisted.
U.S. District Judge Gina M. Groh presided.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
For more information on human trafficking, go to www.stophumantraffickingwv.org. To report a potential human trafficking crime, email [email protected] or call 304-234-0100.
Malcolm Torres Sentenced to 35 Years in Prison for the Death of His StepdaughterRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that, per the terms of his plea agreement, Malcom Torres was sentenced to 35 years in prison. Torres, 30, of Española, New Mexico, pled guilty to second degree murder on April 10, 2023.
According to court records, on Sept. 7, 2019, Torres was home with his five-year-old stepdaughter, Renezmae Calzada, and eighteen-month-old son. Torres had been drinking excessive amounts of alcohol that day and during the preceding week and was not fit to supervise the children. On the afternoon of Sept. 8, 2019, Renezmae’s grandparents returned home and were informed by Torres that Renezmae had been missing since that morning. Renezmae’s grandmother immediately alerted Renezmaes mother, who contacted law enforcement. Over the next three days, Torres refused to assist in and impeded first-responding officers’ efforts to locate his stepdaughter by providing false and misleading information to police and campaigning against the truthful efforts others made to assist police. Torres’ deceitful efforts lengthen the wide-spread and vigorous efforts of law enforcement and the Santa Clara Pueblo community to locate Renezmae
On Sept. 11, 2019, law enforcement located Renezmae’s body in the Rio Grande River on the Santa Clara Pueblo. It was determined that Renezmae died from blunt-force trauma to her head, torso, and extremities on Sept. 7 and that Torres had driven to the area 5.5 miles from his home and left Renezmae’s body there on Sept. 8. After he was arrested, Torres insisted that Renezmae had sustained the injuries when she fell out of her bed or that a house guest killed Renezmae and that person was still at large. Torres refused to take responsibility for what happened to Renezmae for almost four years.
“Renezmae’s legacy is bringing together community, fighting for life, and protecting our children,” said United States Attorney Alexander Uballez. “Today we received a first apology, a final justice, and an opportunity to more forward together. All children are all of our children. When someone brings harm to one, we will respond together to deliver certain justice.”
“Four years ago, a precious young life was taken in an act of senseless violence by the person who was supposed to protect five-year-old Renezmae, leaving a community in anguish,” said Special Agent in Charge Raul Bujanda. “Although the defendant tried to cover his tracks and lead investigators astray, the unified efforts of federal, state, local and tribal law enforcement officials resulted in justice being served. Today’s sentencing reaffirms the commitment of the FBI and partner agencies to seek justice for victims of violent crime on Native American tribal lands.”
Torres’ sentencing guidelines were calculated at 360-365 months, however Torres agreed to the sentence of 420 months in exchange for the United States agreeing to forgo a charge of first-degree felony murder, which carried a potential penalty of life imprisonment or death. Upon his release from prison, Torres will be subject to five years of supervised release.
The Santa Fe Resident Agency of the FBI investigated this case with assistance from the Pueblo of Santa Clara, Rio Arriba County Sheriff’s Office, New Mexico State Police, Espanola Police Department, U.S. Marshals Service, Pueblo of Pojoaque Police Department, Pueblo of Ohkay Owingeh Police Department, Santa Fe County Sheriff’s Office, Bernalillo County Sheriff’s Office, Albuquerque Police Department, New Mexico Game & Fish, and the Bureau of Land Management. Assistant United States Attorneys Jack Burkhead, Brittany DuChaussee and Zachary Jones are prosecuting the case.
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Long Island Man Charged in Bronx ShootingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a Complaint charging TERRENCE ALLEN with illegally possessing ammunition in connection with a shooting by ALLEN in the courtyard of the Melrose housing complex in the Bronx on the evening of September 21, 2023. ALLEN was arrested today and will be presented this afternoon before U.S. Magistrate Judge Katharine H. Parker.
U.S. Attorney Damian Williams said: “As alleged, Terrence Allen brazenly fired 13 shots from a handgun as he casually strolled down a walkway in the courtyard of a residential building in the Bronx. New Yorkers deserve to be safe from gun violence. Thanks to our partners at the NYPD and the FBI, the defendant has now been apprehended.”
FBI Assistant Director in Charge James Smith said: “As we allege, in the shadow of a housing complex’s playground, Allen senselessly fired a gun, threatening the community’s right to live in safety. Along with our law enforcement partners, the FBI will hold anyone who endangers innocent lives accountable in the criminal justice system.”
NYPD Commissioner Edward A Caban said: “Today’s arrest is the result of a thorough, intelligence-led investigation by the NYPD and our law enforcement partners that is just one layer of our continuing work to eradicate gun violence in New York City. We are relentless in these efforts because the lives and quality of life of all New Yorkers depend on it.”
According to the allegations in the Complaint:[1]
On or about September 21, 2023, at approximately 8:28 p.m., TERRENCE ALLEN walked through the courtyard of the Melrose housing complex. As he walked, ALLEN discharged a firearm multiple times by shooting to his right. This still image from surveillance camera footage shows ALLEN firing one of those shots, as well as an individual seated on a park bench just a few yards to ALLEN’s left.
Upon canvassing the scene of the shooting, NYPD officers recovered 13 9mm shell casings.
ALLEN was not permitted to possess ammunition because of prior felony convictions.
* * *
TERRENCE ALLEN, 41, of Freeport, New York, is charged with one count of possession of ammunition after a felony conviction, which carries a maximum sentence of 15 years in prison.
The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI and NYPD. Mr. Williams also thanked the Bronx County District Attorney’s Office for its assistance in this matter.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Joseph H. Rosenberg is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Lincoln Woman Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Susan Lehr announced that Sarah N. Baldwin, 31, of Lincoln, Nebraska, was sentenced on October 27, 2023, in federal court in Lincoln for possession with intent to distribute 50 grams or more of methamphetamine actual (pure). Senior United States District Court Judge M. John Gerrard sentenced Baldwin to 120 months’ imprisonment. There is no parole in the federal system. After Baldwin’s release from prison, she will begin a five-year term of supervised release.
On February 10, 2022, Baldwin was a passenger in an SUV which was stopped on the shoulder of Interstate 80 in Lancaster County due to a mechanical issue. A Lancaster County Sheriff’s deputy stopped to assist and during the contact learned the SUV had been reported stolen by Baldwin and that Baldwin had an active warrant for her arrest. Baldwin was arrested on the warrant and taken to the Lancaster County Jail.
After Baldwin was lodged in the Lancaster County Jail, investigators listened to phone calls she made from the jail in which she asked her mother to get the SUV and to get her son’s bookbag and another bag out of the SUV. Investigators obtained consent to search the SUV from the registered owner and found a Nike fanny pack containing methamphetamine. Baldwin made additional calls from the jail in which she asked a friend to get the fanny pack out of the SUV. Testing of the contents of the fanny pack at the Nebraska State Patrol Crime lab showed it contained at least 100 grams, (approximately 3 ½ ounces), of actual (pure) methamphetamine.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Lawrence Man Pleads Guilty to Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man pleaded guilty on Oct. 27, 2023 to his role in a trafficking fentanyl conspiracy.
Francis Manuel Santos Arias, 24, pleaded guilty to a superseding information charging him with one count of conspiracy to distribute and to possess with intent to distribute fentanyl and two counts of distribution and possession with intent to distribute fentanyl. U.S. District Judge Nathaniel M. Gorton scheduled sentencing for Jan. 31, 2024.
Arias was indicted by a federal grand jury along with Eddy Reyes Tejada in December 2022.
In January 2022, law enforcement received information that Arias and Tejada were looking for customers to whom they could distribute cocaine and fentanyl in the greater Boston and Lawrence areas. Over the course of the investigation, Arias sold fentanyl to cooperating witnesses on three separate occasions: 55 grams of fentanyl on Jan. 28, 2022; nearly 100 grams of fentanyl on March 7, 2022; and 460 grams of fentanyl on March 28, 2022.
On July 20, 2023, Tejada pleaded guilty to his role in the fentanyl trafficking conspiracy and is scheduled to be sentenced on Nov. 21, 2023.
The charges of conspiracy to distribute fentanyl and of distribution of fentanyl each provide for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and John E. Mawn, Jr. Interim Colonel of the Massachusetts State Police, made the announcement today. The Fitchburg and Lunenburg Police Departments, U.S. Postal Inspection Service and Massachusetts State Police provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division is prosecuting the case.This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Las Vegas Resident Sentenced to Prison for Possession and Distribution of Thousands of Child Sexual Abuse MaterialRead the Press Release
LAS VEGAS – A Las Vegas man who committed an additional felony offense while on release was sentenced today by United States District Judge Jennifer A. Dorsey to 111 months in prison followed by a 20 year term of supervised release for collecting and sharing thousands of child sexual abuse materials depicting children as young as infants to other people — including people who did not want to view the images.
Colby Matthew Olen (36) pleaded guilty in July 2023 to distribution of child pornography and possession of child pornography. In addition to imprisonment, under the Sex Offender Registration and Notification Act, Olen must register as a sex offender and keep the registration current.
According to court documents, the Las Vegas Metropolitan Police Department received CyberTips from the National Center for Missing and Exploited Children (NCMEC) about Olen’s involvement with child sexual abuse materials. In September 2020, a search warrant was executed at Olen’s residence. A forensic examination of electronic devices belonging to Olen found images and videos of child sexual abuse materials.
On November 25, 2020, a criminal complaint charged Olen with distribution of child pornography. Although the government moved for detention, Olen was released on a personal recognizance bond with conditions and was advised of potential enhanced penalties for committing another felony offense while on release. In June 2021, a second search warrant was executed at Olen’s residence after a report to the Las Vegas Metropolitan Police Department. A forensic examination of Olen’s electronic devices revealed child sexual abuse materials to include videos of children as young as infants. Olen was arrested and a federal grand jury returned a superseding indictment charging Olen with an additional felony offense committed while on release.
Olen admitted he distributed child sexual abuse materials depicting children as young as infants being sexually abused to others through an online cloud storage and file hosting service. In total, he distributed 2,716 videos and 5,203 images of child sexual abuse materials.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant United States Attorney Supriya Prasad prosecuted the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the 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 and for information about internet safety education, please visit www.justice.gov/psc.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or https://report.cybertip.org.
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Kern County Man Trafficking Fentanyl Sentenced to over 17 YearsRead the Press Release
FRESNO, Calif. — Jose Santana, 47, of Shafter, was sentenced to 17 years and six months in prison for possession with intent to distribute fentanyl and heroin, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Nov. 16, 2021, law enforcement executed a federal search warrant on Santana’s motel room in Bakersfield, and also searched Santana’s vehicle with his consent. As a result, law enforcement seized about 2.5 kilograms of fentanyl, 2.5 kilograms of heroin, two firearms, and approximately $5,000 in cash.
This case is the product of an investigation by the Drug Enforcement Administration and the Bakersfield Police Department. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Kansas Man Sentenced to 30 Years for Soliciting Child Pornography from Two Boone County VictimsRead the Press Release
JEFFERSON CITY, Mo. – A Lawrence, Kansas, man has been sentenced in federal court for soliciting pornographic images from two Boone County, Mo., child victims.
Kyle G. Gibler, 30, was sentenced by U.S. District Judge Roseann Ketchmark on Friday, Oct. 27, to 30 years in federal prison without parole. The court also sentenced Gibler to 10 years of supervised release following incarceration. Gibler will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On Aug. 25, 2022, Gibler pleaded guilty to attempting to produce child pornography. Gibler admitted that he received pornographic photos of an 11-year-old victim and a 2-year-old victim. Gibler solicited the photos while communicating with the 11-year-old victim on a dating website. The victim told investigators she lied about her age in order to get on the site, but told Gibler she was 11 years old. According to court documents, Gibler used a fake name and persona online, portraying himself as an 18-year-old male in Florida.
According to court documents, evidence from this case shows Gibler has been engaged in online activity involving the sexual exploitation of minors since at least January 2015 through April 2017. FBI agents identified six female victims under the age of 18 who produced child pornography at Gibler’s direction. Gibler distributed images of at least three of these child victims. Officers also located thousands of files depicting child pornography on Gibler’s electronic devices.
This case was prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Boone County, Mo., Sheriff’s Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department Secures Agreement with Florida School District to Protect the Civil Rights of English Learner StudentsRead the Press Release
The Justice Department announced today a settlement agreement with the Clay County School District in Florida to resolve the department’s findings about the district’s program for English learner students.
The department’s investigation found that the district did not provide English learner students with the language instruction needed to become fluent in English and failed to provide non-English speaking parents with important school information in a language they could understand. The department also found that English learner students could not meaningfully participate in core content classes, like math, science and social studies and did not receive individualized academic and behavioral supports that are available to their peers. In the face of these shortcomings, the district failed to take timely corrective action to ensure equal access.
“Students who are learning English have the right to engage in coursework alongside their peers, and schools must take action necessary to make that right a reality,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold schools accountable when they fail to deliver on our collective promise of equality. This agreement will help ensure that English learner students in Clay County are given the tools necessary to succeed and strive in the classroom.”
“School districts must provide English learner students with appropriate services to overcome language barriers,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We are pleased that the Clay County School District has agreed to embrace its obligation to meet the language needs of its English learners so that students can learn English and fully participate in the district’s educational experience. Equal access to educational opportunities is at the heart of civil rights protections for our youth and students are entitled to equal access despite any language barriers they may have.”
The district cooperated fully with the department’s investigation and, after receiving the results of the investigation, committed to improving its services for English learner students. As part of the settlement agreement, the district has agreed to revise its policies and improve its services so that students can learn English and fully participate in the district’s educational experience.
Under the agreement, the district will modify its practices so that English learner students are properly assessed and identified shortly after their enrollment, promptly provided with language services if they qualify and have the opportunity to equally benefit from the academic and behavioral supports provided to their peers. The district will also make certain that all teachers are qualified, trained and provided enough support and resources to help English learner students become fluent in English and understand their core-content courses. The district will also provide language translation and interpretation of important school information to parents who are not fluent in English. The Justice Department will oversee the district’s implementation of the settlement agreement over the next four school years.
The department’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Florida jointly investigated under the Equal Educational Opportunities Act of 1974.
The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at civilrights.justice.gov/report/.
View the Spanish translation of the press release here.
View the Haitian Creole translation of the press release here.
View the letter of findings here.
View the English settlement agreement here.
View the Spanish settlement agreement here.
View the Haitian Creole settlement agreement here.
View the English agreement summary here.
View the Spanish agreement summary here.
View the Haitian Creole agreement summary here.
Justice Department Secures Agreement with Florida School District to Protect the Civil Rights of English Learner StudentsRead the Press Release
The Justice Department announced today a settlement agreement with the Clay County School District in Florida to resolve the department’s findings about the district’s program for English learner students.
The department’s investigation found that the district did not provide English learner students with the language instruction needed to become fluent in English and failed to provide non-English speaking parents with important school information in a language they could understand. The department also found that English learner students could not meaningfully participate in core content classes, like math, science and social studies and did not receive individualized academic and behavioral supports that are available to their peers. In the face of these shortcomings, the district failed to take timely corrective action to ensure equal access.
“Students who are learning English have the right to engage in coursework alongside their peers, and schools must take action necessary to make that right a reality,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold schools accountable when they fail to deliver on our collective promise of equality. This agreement will help ensure that English learner students in Clay County are given the tools necessary to succeed and strive in the classroom.”
“School districts must provide English learner students with appropriate services to overcome language barriers,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We are pleased that the Clay County School District has agreed to embrace its obligation to meet the language needs of its English learners so that students can learn English and fully participate in the district’s educational experience. Equal access to educational opportunities is at the heart of civil rights protections for our youth and students are entitled to equal access despite any language barriers they may have.”
The district cooperated fully with the department’s investigation and, after receiving the results of the investigation, committed to improving its services for English learner students. As part of the settlement agreement, the district has agreed to revise its policies and improve its services so that students can learn English and fully participate in the district’s educational experience.
Under the agreement, the district will modify its practices so that English learner students are properly assessed and identified shortly after their enrollment, promptly provided with language services if they qualify and have the opportunity to equally benefit from the academic and behavioral supports provided to their peers. The district will also make certain that all teachers are qualified, trained and provided enough support and resources to help English learner students become fluent in English and understand their core-content courses. The district will also provide language translation and interpretation of important school information to parents who are not fluent in English. The Justice Department will oversee the district’s implementation of the settlement agreement over the next four school years.
The department’s Civil Rights Division and the U.S. Attorney’s Office for the Middle District of Florida jointly investigated under the Equal Educational Opportunities Act of 1974.
The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at civilrights.justice.gov/report/.
View the letter of findings here.
View the settlement agreement here.
View the agreement summary here.
Justice Department Officials in Mexico Provide Capacity Building to Mexican Prosecutors to Counter Fentanyl Trafficking and Organized CrimeRead the Press Release
To further the Bicentennial Framework between the United States and Mexico, the U.S. Department of Justice’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT), with the support of the U.S. Embassy in Mexico City and the Department of State’s Bureau of International Narcotics and Law Enforcement Assistance (INL), organized consecutive workshops with Mexico’s Attorney General’s Office (FGR) prosecutors to improve binational coordination, investigations and prosecutions of fentanyl cases.
“We must do everything we can to stop violent cartels from manufacturing and trafficking fentanyl,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “These workshops with our FGR partners strengthen our abilities to target and hold accountable those who threaten the lives of our citizens through the deadly effects of fentanyl.”
During the week of October 23, in Tijuana, Mexico, OPDAT and INL, with the support of presenters from the U.S. Department of Justice’s Criminal Division, U.S. Drug Enforcement Administration, Federal Bureau of Investigation, U.S. Customs and Border Protection, Homeland Security Investigations, FGR, and the Mexican Federal Judiciary, strengthened the capabilities and skills of more than 100 Mexican federal prosecutors to investigate and prosecute fentanyl cases through two 2-day workshops.
Fentanyl Workshop Presenters and Representatives from DEA, FBI, CBP, HSI, DOJ, U.S. Embassy, Mexican Attorney General's Office, and Mexican Federal Judiciary.
The workshops highlighted and promoted good practices to investigate fentanyl trafficking networks, provided an understanding of global trafficking trends and the fentanyl criminal market worldwide, and explained how precursors from China arrive to the Americas and are eventually used to make fentanyl that is trafficked throughout the United States.
At the workshop, OPDAT Senior Resident Legal Advisor in Mexico René Valle, Justice Department Counselor for Narcotics and Transnational Organized Crime Arthur Wyatt, the Deputy Consul General of the U.S. Embassy in Tijuana William Swaney, and the FGR Delegate in Tijuana Victorino Porcayo Domínguez, provided opening remarks in which they emphasized the importance of binational coordination and collaboration to jointly combat fentanyl trafficking.
Justice Department representative provides opening remarks to FGR prosecutors.
This bilateral effort was coordinated to address fentanyl trafficking at the border of both countries and strengthen the justice system, all with the goal to ensure safe and prosperous communities.
Jury Finds Metro Attacker Guilty of Assault with Significant Bodily InjuryRead the Press Release
WASHINGTON – A jury, today, found Neal Pitt, 36, of Washington, D.C., guilty of assault with significant bodily injury in an attack that took place on the L’Enfant Plaza Metro Station platform on March 9, 2021, announced U.S. Attorney Matthew M. Graves and Chief Michael Anzallo, of the Metro Transit Police Department (MTPD).
The verdict followed a trial in the Superior Court of the District of Columbia. The Honorable Erik Christian scheduled sentencing for February 14, 2024. Holman faces a maximum sentence of three years in prison for the crimes.
According to the government’s evidence, at approximately 7:45 a.m. on March 9, 2021, Daniel Olsen was traveling to work when, without provocation, the defendant followed Olsen on the Branch Avenue-bound platform, grabbed Olsen by the throat, and slammed Olsen to the ground. Mr. Olsen landed on his right shoulder, resulting in a broken humerus that required surgery and months of physical therapy to repair. Pitt fled the scene but was identified based on CCTV footage, SmarTrip records, and his own statements that placed him at the scene of the crime.
In announcing the verdict, U.S. Attorney Graves and Chief Anzallo commended the work of those who investigated the case from the Metro Transit Police Department. They also thanked Assistant U.S. Attorneys Caroline Coates Huether, Travis Wolf, Bonnie Lindemann, Sandra Braschi, and Benjamin Bleiberg, who initially investigated the case. Finally, they commended Assistant U.S. Attorneys Kraig Ahalt and Shaniqua Butler, who investigated and prosecuted the case.
Huntington Man Sentenced to Prison for Child Pornography CrimeRead the Press Release
HUNTINGTON, W.Va. – Craig Alexander Halstead, 36, of Huntington, was sentenced today to seven years and six months in prison, to be followed by 20 years of supervised release, for receipt of child pornography. Halstead must also pay $15,000 in restitution and register as a sex offender.
According to court documents and statements made in court, Halstead admitted to receiving 87,993 digital media files of child pornography via peer-to-peer file sharing programs from about August 2, 2019, until about August 18, 2022. Many of the digital media files depict prepubescent minors, including infants and toddlers, subjected to sexually explicit conduct including sadistic conduct. Halstead admitted that one of the digital media files is a video of an adult male sexually assaulting a prepubescent female.
On May 20, 2021, Halstead possessed 3,970 images and 443 videos on his laptop and external hard drive depicting minor children subjected to sexually explicit conduct. Halstead admitted that many of the images and videos depict prepubescent minors and that several of the images and videos depict known child victims.
On or about August 30, 2022, Halstead possessed 3,188 images and videos of child pornography in Huntington. Over 400 of those images and videos depict known child victims. Halstead admitted that the images included infants subjected to sadistic or masochistic conduct. Halstead further admitted to accessing and receiving digital media files of child pornography using peer-to-peer programs on November 29, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Julie M. White and Erik S. Goes prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-231.
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Holdrege Woman Sentenced for Possession of MethamphetamineRead the Press Release
Acting United States Attorney Susan Lehr announced that Jade Wondercheck, 44, of Holdrege, Nebraska, was sentenced October 27, 2023, in federal court in Lincoln, Nebraska for possession of methamphetamine with intent to distribute. Senior United States District Judge John M. Gerrard sentenced Wondercheck to 140 months’ imprisonment. There is no parole in the federal system. After Wondercheck’s release from prison, she will begin a 5-year term of supervised release.
In December of, 2022, an officer with the Omaha Police Department was on patrol and observing a house, which he knew to be involved in drug trafficking. Officers had previously conducted three traffic stops of vehicles leaving this residence, each resulting in a pound of methamphetamine or cocaine being seized. On this occasion the officer observed a black Chrysler 300 leave the residence. The vehicle failed to signal a turn a few blocks down and a traffic stop was conducted.
Wondercheck was a backseat passenger in the vehicle, with two other occupants. While speaking with another passenger of the vehicle, the officer could see open beer bottles and smell marijuana. Based on these observations, the officer decided to conduct a probable cause search. Wondercheck was searched and two baggies of methamphetamine were located concealed in her pants. A lab confirmed the drugs were 91 grams of pure methamphetamine.
This case was investigated by the Omaha Police Department.
Glendale Man Sentenced to 6½ Years in Prison for Laundering at Least $3 Million in Fraudulently Obtained Jobless BenefitsRead the Press Release
LOS ANGELES – A Glendale man was sentenced today to 78 months in federal prison for laundering at least $3 million in fraudulently obtained unemployment insurance (UI) benefits that his accomplices fraudulently obtained during the COVID-19 pandemic.
Arman Nikogosyan, 45, was sentenced by United States District Judge John F. Walter, who also ordered him to pay $3 million in restitution.
Nikogosyan pleaded guilty on March 27 to one count of conspiracy to launder money.
Starting in 2020 and continuing until December of that year, Nikogosyan became a member of a conspiracy to launder fraudulently obtained jobless benefits. In furtherance of the conspiracy, Nikogosyan arranged to receive the cash proceeds of the unemployment fraud scheme in which his co-conspirators applied for UI benefits in the names of other people and then used debit cards issued by a major bank to withdraw the fraudulently obtained funds.
In 2020, Congress expanded UI benefit amounts and duration and expanded UI eligibility to more workers in response to the economic fallout from the COVID-19 pandemic. The Employment Development Department (EDD) is the agency that administers UI benefits in California.
Nikogosyan knew the cash was proceeds from the jobless benefits fraud and had some of it deposited under assumed names, including those of shell companies. Nikogosyan then had the illicitly obtained funds sent abroad and used to purchase gold in order to conceal their source, ownership and location.
During this conspiracy, Nikogosyan laundered at least $3 million in fraudulently obtained proceeds that his co-conspirators brought to him in cash.
In December 2020, law enforcement seized $194,497 in cash from Nikogosyan’s residence that was proceeds of the fraudulent scheme.
“When confronted with the COVID pandemic that has claimed the lives of almost seven million persons worldwide to date, [Nikogosyan] instead saw an opportunity to bilk taxpayers out of the emergency funds their government generously made available to protect those who lost their jobs,” prosecutors argued in a sentencing memorandum. “Such criminal opportunism during a global health and economic emergency is egregious.”
In separate cases, some of Nikogosyan’s co-conspirators received prison sentences for their crimes:
- Arman Aghasinyan, 23, of Glendale, is serving a 46-month federal prison sentence for withdrawing for accomplices $2.9 million in bogus unemployment insurance benefits from ATMs; and
- Arayik Avetisyan, 23, of Glendale, is serving a federal prison sentence of 36 months for withdrawing from ATMs $1.4 million in fraudulent EDD benefits and delivering the cash to his co-conspirators.
The FBI and the Eurasian Organized Crime Task Force investigated this matter.
Assistant United States Attorney Andrew Brown of the Major Frauds Section prosecuted this case.
Anyone with information about allegations of fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
- Gangster Disciples Member Sentenced to 17+ Years in Prison for Gun Charge
Fort Worth Man Pleads Guilty to Smuggling Firearms into MexicoRead the Press Release
DEL RIO, Texas – A Fort Worth man pleaded guilty in a federal court in Del Rio to smuggling firearms from the U.S. into Mexico.
According to court documents, Humberto Limon Olivares, 57, attempted to leave the U.S. through the Eagle Pass Port of Entry on July 29. During inspection, Customs and Border Protection Officers discovered two pistols and a box of 40mm ammunition hidden under a blanket in the vehicle’s third row. Additionally, CBPOs found five pistols, one rifle, 14 magazines, and 343 rounds of assorted ammunition in the trunk of the vehicle.
Olivares pleaded guilty to smuggling goods from the U.S. and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Acting Special Agent in Charge Noel Rangel for the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
CBP and the ATF are investigating the case.
Assistant U.S. Attorney Zachary Bird is prosecuting the case.
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Former Tulsa Public Schools’ Employee Pleads GuiltyRead the Press Release
A former Chief Learning and Talent Officer for Tulsa Public Schools (TPS) pleaded guilty today, announced U.S. Attorney Clint Johnson. Devin Darel Fletcher, 39, formerly of Tulsa, pleaded guilty to conspiracy to commit wire fraud.
According to court documents, Fletcher was hired in August of 2016 to be the District’s Chief Academic Officer. He was further promoted to be the District’s Chief Learning and Talent Officer prior to his resignation in June 2022. Fletcher was responsible for human resources and educational performance issues throughout TPS. Among other things, Fletcher was entrusted with limited hiring and firing authority for certain personnel, including consultants where he had limited expenditure approval authority.
While working for TPS, Fletcher, admitted to working with another person to create, alter, and fabricate fraudulent invoices, purchase orders and supporting documents to defraud TPS and the Foundation for Tulsa Schools (Foundation). The Foundation is a public charity recognized as a 501(c)(3) organization with a mission to build a better community through the support of TPS by providing education resources via donated funds. In total, Fletcher’s fraudulent actions caused a loss of at least $603,992.32 to TPS and the Foundation.
Devin Darel Fletcher was permitted to remain on bond pending sentencing and will be sentenced at a later date. He faces a maximum sentence of 20 years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Tulsa Police Department conducted the investigation. Assistant U.S. Attorney David D. Whipple is prosecuting the case.
Former Miami-Dade corrections sergeant sentenced to 18 months in prison for COVID-19 relief fraudRead the Press Release
MIAMI – On Oct. 27, a former corrections sergeant with the Miami-Dade Corrections and Rehabilitation Department (MDCRD), was sentenced to 18 months in prison for COVID-19 relief fraud, followed by three years of supervised release and was ordered to pay $432,051 in restitution.
Arashio Harris, 49, of Miami-Dade County, Florida, had previously pleaded guilty to wire fraud in connection with his fraudulent applications for two Paycheck Protection Program (PPP) loans, two Economic Injury Disaster Loans (EIDL) and an EIDL advance.
Harris, along with being a MDCRD sergeant at the time of the crimes, was the owner and president of The Good Family Property Solutions Inc. (“Good Family”) and Flying Lions LLC (“Flying Lions”). Harris, with the help of an associate, submitted to the U.S. Small Business Administration (SBA) a false and fraudulent EIDL application in the name of Good Family, seeking both an EIDL and an EIDL advance. As a result of this fraudulent application, Good Family obtained from the SBA a $9,000 EIDL advance that did not need to be repaid and $14,500 in EIDL loan proceeds. Harris also submitted a false and fraudulent EIDL application to the SBA for Flying Lions grossly overstating the company’s gross revenues and number of employees, allowing him to fraudulently obtain $150,000 in EIDL proceeds from the SBA.
Harris continued his fraud scheme by obtaining two PPP loans in the name of Good Family. In July 2020, Harris submitted a PPP loan application grossly overstating Good Family’s payroll. In support of this fraudulent application, Harris submitted several false and fabricated 2019 IRS documents claiming that Good Family had a total income of over $1,000,000 and had paid wages and salaries that year of over $768,000. These documents included false IRS Form W-2s and Good Family payroll records for these supposed employees. As a result of this false and fraudulent application, Harris obtained a $129,275 PPP loan from an SBA-approved PPP lender.
In February 2021, Harris began the process of seeking a Second Draw PPP loan for Good Family to take advantage of the additional PPP relief being offered to businesses that had suffered revenue losses in 2020 because of the COVID-19 pandemic. Again, the Second Draw application relied on the fraudulent income and payroll numbers used to obtain the first PPP loan, and the application package included fraudulent 2019 IRS forms and fabricated Good Family payroll records for those supposed employees. As a result of this Second Draw application, Good Family obtained a Second Draw PPP loan of $129,276 from a different SBA-approved PPP lender.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida; Special Agent in Charge Jeffrey B. Veltri of FBI, Miami Field Office; Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office; SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite, U.S. Small Business Administration Office of Inspector General (SBA OIG), Investigations Division’s Eastern Region, and Inspector General Felix Jimenez of the Miami-Dade County Office of Inspector General (MDC OIG), announced the sentence imposed by Chief U.S. District Judge Cecilia M. Altonaga.
U.S. Attorney Lapointe commended the investigative efforts of FBI’s Miami Area Corruption Task Force, which includes task force officers from MDC OIG, working in conjunction with IRS-CI and SBA OIG, in the case. Assistant U.S. Attorney Edward N. Stamm prosecuted the case. Assistant U.S. Attorney G. Raemy Charest-Turken handled asset forfeiture.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted. It was designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. Among other sources of relief, the CARES Act authorized and provided funding to the SBA to provide Economic Injury Disaster Loans (“EIDLs”) to eligible small businesses, including sole proprietorships and independent contractors, experiencing substantial financial disruptions due to the COVID-19 pandemic to allow them to meet financial obligations and operating expenses that could otherwise have been met had the disaster not occurred. EIDL applications were submitted directly to the SBA via the SBA’s on-line application website, and the applications were processed and the loans funded for qualifying applicants directly by the SBA.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 23-cr-20295.
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- Former Housing Authority Payroll Clerk Admits to Stealing $575K
Former Federal Law Enforcement Officer Sentenced to Five Years' Probation After Pleading Guilty to Violating Airport Security RequirementsRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced former Customs and Border Protection (“CBP”) officer Supreme Jones, age 32, of Atlanta, Georgia and formerly of Maryland, today to five years’ probation after Jones pleaded guilty to two counts of entering an aircraft or airport security area in violation of security requirements. As a result of his federal conviction, at least during his five year term of probation, Jones will not be able to be employed in law enforcement.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; Stephen T. Maloney, Director of Field Operations for U.S. Customs and Border Protection Baltimore Field Office; and Special Agent in Charge Craig Miles of the U.S. Department of Transportation Office of Inspector General Mid-Atlantic Region (“DOT-OIG”).
According to court documents, from 2018 through 2022, Jones was an armed CBP officer assigned as a uniformed officer at the Baltimore Washington International/Thurgood Marshall Airport (“BWI”). As a result of his duties, Jones was issued credentials authorizing him to go into any area of BWI, including the areas beyond the Transportation Security Administration (“TSA”) security checkpoints, for the performance of his official duties.
In June 2021, the FBI began an investigation into complaints that Jones was abusing his authority by using his credential to enter secure areas when not performing official duties, specifically when flying for personal travel. According to the statement of facts, during a 14-month period Jones made more than 60 flights, either going from or returning to BWI. Upon review of surveillance imagery corresponding to the entry point hits, the FBI discovered that Jones was often entering the sterile area of BWI via the controlled exit portals when in civilian clothing by displaying his badge to the TSA Officer or TSO on duty at the exit portal.
Although a number of trips raised suspicions about Jones’ conduct, two itineraries in particular drew close scrutiny. On February 21, 2022, Jones flew from BWI to Atlanta, GA. He did not declare himself to be armed on this flight. Nonetheless, while in civilian clothes, he used his badge to access the security area to proceed to his departure gate within. When he arrived at the gate, he engaged in a conversation with the airline personnel, appeared to display a previously unseen limp and obtained a special needs boarding pass from the airline, thus enabling him priority boarding of the aircraft. During this same travel period, Jones flew round-trip from Atlanta to Miami, then Miami to St. Martin. To justify a flight change and/or late arrival on the return flight, without incurring a flight change fee, Jones falsely represented that a military unit to which he was assigned had been involved in an accident; falsely identified his military superior; and provided a fictitious phone number.
On April 5, 2022, FBI agents conducted surveillance of Jones in BWI. They saw Jones, while still on duty and in his uniform, jump a long line of passengers in line at an airline ticket counter to check-in for a flight he was taking later that day in his personal capacity. About 30 to 45 minutes before the departure time of his flight, FBI Special Agents saw Jones entering the terminal through the exit point, rather than through the TSA security checkpoint. When the agents confronted Jones, he denied having a flight that day and stated that he was “…working…trailing somebody,” or words to the effect. A short while later, Jones was seen in the departure gate area for his Atlanta-bound flight.
Jones was arrested on June 26, 2022, as he was about to board a flight from BWI to Boston, Massachusetts, with a scheduled return the following day.
United States Attorney Erek L. Barron praised the FBI, HSI, CBP and DOT-OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney P. Michael Cunningham, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Former Detention Officer Sentenced to Serve One Year of Probation for Deprivation of RightsRead the Press Release
OKLAHOMA CITY – Last week, KYLE TECUMSEH, 26, a former detention officer with the McClain County Jail, was sentenced to serve one year of probation for deprivation of rights under color of law, announced U. S. Attorney Robert J. Troester.
On March 22, 2023, Tecumseh was charged in a one-count information, to which he pleaded guilty the following day. According to court documents and admissions Tecumseh made during his change of plea hearing, on April 21, 2019, Tecumseh was involved with moving a pretrial detainee, B.B., into a jail cell with a senior United Aryan Brotherhood (UAB) gang member whom Tecumseh knew was angry at and posed a danger to B.B. Thereafter, Tecumseh allowed another detention officer to move several more UAB gang members into the cell with B.B. and the senior UAB gang member. The UAB gang members then, as Tecumseh knew was likely to occur, physically attacked B.B.
At the sentencing hearing on October 27, 2023, U. S. District Judge Patrick R. Wyrick sentenced Tecumseh to one year of probation, and a fine of $1,000. In announcing the sentence, the court noted Tecumseh’s duty as a detention officer to protect inmates under his supervision, but also noted his lack of prior criminal history.
This case is the result of an investigation by the FBI Oklahoma City Field Office and the Oklahoma State Bureau of Investigation. Assistant U. S. Attorney Julia E. Barry for the Western District of Oklahoma and Trial Attorney Laura Gilson of the Civil Rights Division prosecuted the case.
Former Bureau of Prisons Employee Sentenced to Prison for Workers’ Compensation FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ELIZABETH TORRES was sentenced to one year and one day in prison today for a decade-long workers’ compensation fraud scheme. TORRES duped the U.S. Department of Labor (“DOL”) into paying her more than $600,000 in federal disability benefits by falsely claiming that she had a debilitating knee injury and therefore essentially could not work when in fact TORRES was not disabled and was even employed full-time for several years during her scheme. TORRES’s sentence was imposed by U. S. District Judge Sidney H. Stein before whom she previously pleaded guilty.
U.S. Attorney Damian Williams said: “The federal workers’ compensation program protects qualifying employees who suffer legitimate work injuries or illness. But some individuals, like Elizabeth Torres, take advantage of this disability benefit program. For 10 years, Torres lied to the DOL in order to steal more than $600,000 in disability benefits. For her criminal conduct, Torres has now been sentenced to prison.”
According to the allegations in the Information, court filings, and statements made in court:
From approximately late 2009 until early 2020, ELIZABETH TORRES sought and received compensation under the Federal Employees’ Compensation Act (“FECA”). FECA provides benefits to civilian federal employees who sustain an injury or illness as a result of their employment. FECA benefits are administered by the DOL’s Office of Workers’ Compensation Programs (“OWCP”). To receive FECA benefits, a claimant must prove that she is disabled by furnishing medical documentation and other evidence with her claim.
Until approximately 2006, TORRES worked as a Corrections Officer for the Bureau of Prisons (“BOP”). BOP employees are eligible to receive FECA benefits. For several years, TORRES submitted annual forms to OWCP seeking such benefits. In these forms, TORRES lied in various respects, including by claiming that: (i) she was significantly disabled; (ii) she was not working or performing volunteer work; (iii) she was not receiving any pay for various years; (iv) she was not involved in any business enterprise; and (v) a dependent was living with her for various years. More specifically, and among other things, TORRES claimed that she had a debilitating knee injury and therefore was essentially incapable of performing any work because she experienced pain and swelling within 30 minutes of sitting or standing. But in fact, TORRES was not so disabled, and she had an array of volunteer and paid work from at least approximately 2010 through 2019. Among other roles, TORRES was employed full-time from approximately 2015 through 2019 at a drug and alcohol addiction treatment center (the “Clinic”) in New York City, where she served as the Program Director for several years. On one occasion in 2019, TORRES was caught on video dancing with ease in high-heeled boots on the sidewalk outside of the Clinic. To conceal her Clinic employment from OWCP, TORRES was paid indirectly through an entity, and her salary payments were disguised as “rent.”
On the basis of TORRES’s false representations to OWCP, TORRES received benefit payments of more than approximately $4,000 per month for 10 straight years, totaling over $600,000.
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In addition to her prison sentence, TORRES, 57, of Brooklyn, New York, was sentenced to two years of supervised release and ordered to pay restitution of $603,372.92.
Mr. Williams praised the outstanding investigative efforts of DOL’s Office of Inspector General and the Federal Bureau of Investigation.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Michael D. Neff and Danielle M. Kudla are in charge of the prosecution.
El Departamento de Justicia llega a un acuerdo con un Distrito Escolar de Florida para proteger los derechos civiles de los estudiantes que están aprendiendo inglésRead the Press Release
El Departamento de Justicia anunció hoy un acuerdo de conciliación con el Distrito Escolar del Condado de Clay en Florida que resuelve los hallazgos del Departamento sobre el programa del distrito para estudiantes que están aprendiendo inglés.
La investigación del Departamento descubrió que el distrito no proporcionó a los estudiantes que están aprendiendo inglés la instrucción lingüística necesaria para dominar el inglés y no proporcionó a los padres que no hablan inglés información escolar importante en un idioma que pudieran entender. Por otra parte, el Departamento también descubrió que los estudiantes que están aprendiendo inglés no podían participar de forma significativa en clases de contenido básico, como matemáticas, ciencias y estudios sociales, y no recibieron los tipos de apoyo académico y conductual individualizado que están disponibles para sus compañeros. Ante estas deficiencias, el distrito no tomó medidas correctivas oportunas para garantizar el acceso igualitario.
«Los estudiantes que están aprendiendo inglés tienen derecho a participar en los trabajos del curso junto a sus compañeros, y las escuelas deben tomar las acciones necesarias para convertir eso en realidad», afirmó la Fiscal General Auxiliar, Kristen Clarke, de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá responsabilizando a las escuelas cuando no cumplen nuestra promesa colectiva de igualdad. El acuerdo ayudará a garantizar que los estudiantes que están aprendiendo inglés en el Condado de Clay, reciban las herramientas necesarias para ser exitosos y esforzarse en el salón de clases. ».
«Los distritos escolares deben proporcionar a los estudiantes de inglés servicios adecuados para superar las barreras lingüísticas», declaró Roger Handberg, el Fiscal Federal para el Distrito Centro de Florida. «Nos complace que el Distrito Escolar del Condado de Clay haya aceptado asumir su obligación de satisfacer las necesidades lingüísticas de sus estudiantes que están aprendiendo inglés para que puedan aprender inglés y participar plenamente en la experiencia educativa del distrito. La igualdad de acceso a las oportunidades educativas es la base de las protecciones de los derechos civiles de nuestros jóvenes y los estudiantes tienen derecho a la igualdad de acceso a pesar de cualquier barrera lingüística que puedan tener».
El distrito cooperó plenamente con la investigación del departamento y, después de recibir los resultados de la investigación, se comprometió a mejorar sus servicios para los estudiantes que están aprendiendo inglés. Como parte del acuerdo de conciliación, el distrito ha acordado revisar sus políticas y mejorar sus servicios para que los estudiantes puedan aprender inglés y participar plenamente en la experiencia educativa del distrito.
En virtud del acuerdo, el distrito modificará sus prácticas para que los estudiantes que están aprendiendo inglés sean evaluados e identificados adecuadamente poco después de su inscripción, para que se les proporcionen servicios lingüísticos de inmediato si califican y para que tengan la oportunidad de beneficiarse por igual de los apoyos académicos y conductuales proporcionados a sus compañeros. Asimismo, el distrito también se asegurará de que todos los maestros estén calificados, capacitados y cuenten con suficientes recursos y apoyo para ayudar a los estudiantes que están aprendiendo inglés a dominar el inglés y comprender sus cursos de contenido básico. El distrito también proporcionará traducción e interpretación del idioma de información escolar importante a los padres que no dominen el inglés. El Departamento de Justicia supervisará la implementación del acuerdo de conciliación por parte del distrito durante los próximos cuatro años escolares.
La División de Derechos Civiles del Departamento y Fiscalía Federal para el Distrito Centro de Florida investigaron conjuntamente en virtud de la ley de Igualdad de Oportunidades Educativas de 1974.
La aplicación de la ley de Igualdad de Oportunidades Educativas de 1974 es una de las principales prioridades de la División de Derechos Civiles. Puede encontrar información adicional sobre la División de Derechos Civiles en su sitio web en www.justice.gov/crt, e información adicional sobre el trabajo de la Sección de Oportunidades Educativas está disponible en www.justice.gov/crt/educational-opportunities-section.
Los miembros del público pueden denunciar posibles violaciones de los derechos civiles en civilrights.justice.gov/report/.
Acuerdo de conciliación.
Resumen del acuerdo.
Drugmaker Nostrum and Its CEO Agree to Pay up to $50 Million to Settle False Claims Act Claims for Underpaying Rebates Owed Under Medicaid Drug Rebate ProgramRead the Press Release
Nostrum Laboratories Inc. (Nostrum), located in Missouri and New Jersey, and its founder and CEO, Nirmal Mulye, Ph.D. (Mulye), have agreed to pay a minimum of $3,825,000, and up to $50 million if certain financial contingencies are met, to resolve allegations that they violated the False Claims Act by knowingly underpaying Medicaid rebates due for Nostrum’s drug Nitrofurantoin Oral Suspension (Nitro OS). The settlement is based on Nostrum’s and Mulye’s financial condition.
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The statute requires manufacturers to pay inflation-based rebates for drugs, which are designed to insulate the Medicaid program from drug price increases that outpace inflation. These rebates are calculated by comparing the drug’s current price to the drug’s price on the date that the “dosage form and strength” of the drug was first marketed or 1990, whichever is later.
As part of the settlement, Nostrum and Mulye admitted that:
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Nostrum acquired Nitro OS from another manufacturer in December 2015 and continued to market the product pursuant to its preexisting FDA approval.
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In January 2018, Nostrum temporarily ceased manufacturing Nitro OS because the amount of lead in the product did not comply with updated 2018 FDA guidance. After modifying quantities of two inactive ingredients to reduce overall lead levels, Nostrum resumed manufacturing and marketing Nitro OS in August 2018. Nostrum characterized the relaunched version of Nitro OS as a “reformulation,” but Nostrum did not add or subtract any ingredients and the active ingredients remain unchanged. Nitro OS also remained in the same dosage form and strength as it did prior to 2018. Nostrum continues to market this version of Nitro OS under the same FDA Approval as the pre-2018 version and maintains that it is legal to do so because no major changes have been made to the drug.
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After relaunching Nitro OS in August 2018, Nostrum increased its price from $474.75 to $2,392.32 per bottle, which triggered significantly higher Medicaid Drug Rebate invoices from State Medicaid programs on account of the inflation-based rebate.
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Beginning with the fourth quarter of 2018 through the first quarter of 2020 (when Nostrum withdrew from the Medicaid Drug Rebate Program), Nostrum and Mulye did not pay these entire invoiced amounts, despite learning that the larger rebate invoices were tied to the price increase and inflation based rebate and being notified by Centers for Medicare & Medicaid Services (CMS) that it should pay the higher calculated amounts. Instead, and despite prior communications to FDA that no “major changes” had been made to Nitro OS, Nostrum wrote CMS arguing that, because this version of Nitro OS is actually a “new” drug, Nostrum should not have to pay rebates based upon the prior version’s applicable price.
The United States contends that, as a result of these actions, it has certain civil claims against Nostrum and Mulye from Oct. 1, 2018, through March 31, 2020, for knowingly failing to pay the required rebate amounts owed for Nitro OS as required by the Rebate Statute and Rebate Agreement and as invoiced by State Medicaid programs.
“The department is committed to ensuring that pharmaceutical manufacturers meet their obligations to taxpayer funded health care programs, which support elderly and vulnerable populations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “As this settlement demonstrates, the department will hold accountable those who knowingly fail to satisfy these obligations.”
“The Medicaid program is a valuable safety net, providing health care to some of the most vulnerable Americans,” said Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts. “By deliberately failing to pay appropriate rebates to Medicaid, Nostrum used that program to divert resources from those Americans in the hopes of generating profits. This office will not turn a blind eye to such flagrant abuse.”
“The Medicaid program provides medical treatment for some of our most vulnerable citizens, and when a drug company improperly circumvents rules designed to protect the Medicaid program from overpaying for prescription drugs, the American taxpayer pays the price,” said Special Agent in Charge Roberto Coviello of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “As illustrated by this settlement, pharmaceutical companies that disregard their obligation to play by the rules for financial gain will be held accountable for those actions.”
“Nostrum Laboratories reduced the amount that it paid to the Medicaid program by improperly calculating the rebates it owed, even after hiking the cost of one of their drugs by over 400%,” said Special Agent in Charge Jodi Cohen of the FBI Boston Field Office. “Today’s settlement is a win for taxpayers by ensuring that this pharmaceutical company cannot boost its bottom line at the expense of the Medicaid program and the vulnerable population it serves.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from HHS-OIG and the FBI.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The matter was investigated by Fraud Section Attorneys Augie Ripa and Michael Hoffman, and Assistant U.S. Attorney Evan Panich for the District of Massachusetts.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Settlement-
Drugmaker Nostrum and CEO Agree to Pay up to $50 Million to Resolve Claims of Underpaying Rebates Owed Under Medicaid Drug Rebate ProgramRead the Press Release
BOSTON – Nostrum Laboratories, Inc. (Nostrum), located in Missouri and New Jersey, and its founder and CEO Nirmal Mulye, Ph.D. (Mulye), have agreed to pay a minimum of $3,825,000 and up to $50 million if certain financial contingencies are met, to resolve allegations that they violated the False Claims Act by knowingly underpaying Medicaid rebates due for Nostrum’s drug Nitrofurantoin Oral Suspension (Nitro OS). The variable amount of the settlement is based on Nostrum’s and Mulye’s financial condition.
Pursuant to the Medicaid Drug Rebate Program, drug manufacturers are required to pay quarterly rebates to state Medicaid programs in exchange for Medicaid’s coverage of the manufacturers’ drugs. The statute requires manufacturers to pay inflation-based rebates for drugs, which are designed to insulate the Medicaid program from drug price increases that outpace inflation. These rebates are calculated by comparing the drug’s current price to the drug’s price on the date that the “dosage form and strength” of the drug was first marketed or 1990, whichever is later.
As part of the settlement, Nostrum and Mulye admitted that:
- Nostrum acquired Nitro OS from another manufacturer in December 2015 and continued to market the product pursuant its preexisting FDA approval;
- In January 2018, Nostrum temporarily ceased manufacturing Nitro OS because the amount of lead in the product did not comply with updated 2018 FDA guidance. After modifying quantities of two inactive ingredients to reduce overall lead levels, Nostrum resumed manufacturing and marketing Nitro OS in August 2018. Nostrum characterized the relaunched version of Nitro OS as a “reformulation” but Nostrum did not add or subtract any ingredients and the active ingredients remain unchanged. Nitro OS also remained in the same dosage form and strength as it did prior to 2018. Nostrum continues to market this version of Nitro OS under the same FDA Approval as the pre-2018 version and maintains that it is legal to do so because no major changes have been made to the drug;
- After relaunching Nitro OS in August 2018, Nostrum increased its price from $474.75 to $2,392.32 per bottle, which triggered significantly higher Medicaid Drug Rebate invoices from the States on account of the inflation-based rebate and;
- Beginning with the fourth quarter of 2018 through the first quarter of 2020 (when Nostrum withdrew from the Medicaid Drug Rebate Program), Nostrum and Mulye did not pay these entire invoiced amounts, despite learning that the larger rebate invoices were tied to the price increase and inflation-based rebate and being notified by CMS that it should pay the higher calculated amounts. Instead, and despite prior communications to FDA that no “major changes” had been made to the drug, Nostrum wrote CMS arguing that it should not have to pay the inflation-based rebate because this version of Nitro OS is actually a “new” drug and therefore Nostrum should not have to pay rebates based upon the prior version’s applicable price.
The United States contends that, as a result of these actions, it has certain civil claims against Nostrum and Mulye from Oct. 1, 2018 through March 31, 2020 for failing to pay the required rebate amounts owed for Nitro OS as required by the Rebate Statute and Rebate Agreement and as invoiced by state Medicaid programs.
“The Medicaid program is a critical safety net, providing health care to some of the most vulnerable Americans. By deliberately failing to pay required rebates to Medicaid, Nostrum diverted resources from needy patients to generate more profits. This office will not turn a blind eye to such flagrant abuse and greed, especially when it involves patients and taxpayers,” said Acting United States Attorney Joshua S. Levy.
“The department is committed to ensuring that pharmaceutical manufacturers meet their obligations to taxpayer funded health care programs, which support elderly and vulnerable populations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “As this settlement demonstrates, the department will hold accountable those who knowingly fail to satisfy these obligations.”
“The Medicaid program provides medical treatment for some of our most vulnerable citizens, and when a drug company improperly circumvents rules designed to protect the Medicaid program from overpaying for prescription drugs, the American taxpayer pays the price,” said Roberto Coviello, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “As illustrated by this settlement, pharmaceutical companies that disregard their obligation to play by the rules for financial gain will be held accountable for those actions.”
“Nostrum Laboratories reduced the amount it paid to the Medicaid program by improperly calculating the rebates it owed, even after hiking the cost of one of their drugs by over 400%,” said Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s settlement is a win for taxpayers by ensuring that that this pharmaceutical company cannot boost its bottom line at the expense of the Medicaid program and the vulnerable population it serves.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the United States Attorney’s Office for the District of Massachusetts with assistance from HHS OIG and the FBI.
Tips and complaints about potential fraud, waste, abuse and
mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).Acting U.S. Attorney Levy; Principal Deputy AAG Boynton; HHS-OIG SAC Coviello; and FBI SAC Cohen made the announcement today. Assistant U.S. Attorney Evan Panich of the Affirmative Civil Enforcement Unit and Trial Attorneys Augustine Ripa and Michael Hoffman of the Justice Department’s Civil Division handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.