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Thursday 19 October 2023
Lawrence Man Sentenced for Disaster Fund Fraud SchemeRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for using stolen identities to fraudulently obtain over $450,000 in Economic Injury Disaster Loan funds from the Small Business Administration (SBA) and to launder the funds.
Darwyn Joseph, 26, was sentenced by U.S. District Court Judge Richard G. Stearns to two years and one day in prison and three years of supervised release. On July 12, 2023, Joseph pleaded guilty to one count of conspiracy to commit wire fraud and four counts of wire fraud and aiding and abetting. Joseph was arrested and charged by criminal complaint in December 2020 along with co-conspirator Ramon Joseph Cruz, Jr. The defendants were subsequently indicted by a federal grand jury in January 2021.Between approximately April and December 2020, Joseph and Cruz were involved in a conspiracy to use stolen identity information of United States citizens to apply for SBA Economic Injury Disaster Loans. Specifically, Joseph and Cruz used stolen identity information of U.S. citizens with high credit scores to open fraudulent bank accounts which were then linked to other fraudulent bank accounts set up to receive the SBA funds. Joseph and Cruz also received some of the debit cards associated with fraudulent bank accounts into which SBA funds were deposited, and then laundered those funds by using them to purchase large numbers of iPhones for re-sale. Joseph and Cruz also wired a portion of the funds to the Dominican Republic in furtherance of the scheme.
Over $452,000 in SBA funds were fraudulently obtained in connection with this scheme. Approximately $250,000 of this money was used to purchase iPhones in Massachusetts and New Hampshire.On Aug. 30, 2023, Cruz was sentenced to two years and one day in prison and three years of supervised release after previously pleading guilty to his role in the conspiracy.
Acting United States Attorney Joshua S. Levy and Michael J. Krol, Special Agent in Charge of Homeland Security Investigations in New England made the announcement. Assistant U.S. Attorneys Elianna Nuzum and Adam Deitch of the Criminal Division prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.Lakeland Man Sentenced to More Than 15 Years for Production, Distribution, and Possession of Child Sexual Abuse MaterialRead the Press Release
Tampa, Florida – U.S. District Judge Mary Scriven has sentenced Illya Frederick Plavljanich II (36, Lakeland) to 15 years and 6 months in federal prison, followed by a lifetime of supervised release, for production, distribution, and possession of child sexual abuse material. He is also required to register as a sex offender. Plavljanich had pleaded guilty on July 26, 2023.
According to court documents, in August 2018, using a social media application, Plavljanich distributed two videos of children being sexually abused. In May 2022, Plavljanich coerced and enticed a minor into producing an image of child sexual abuse material, which he then shared over the internet. Law enforcement searched Plavljanich’s cellphone and found approximately 1,271 images and 536 videos of child sexual abuse material.
“Arresting predators like Plavljianich and holding them accountable for victimizing children will always be a focus of our HSI special agents,” said HSI Tampa Assistant Special Agent in Charge Kristopher Pagitt. “Alongside our partners at the U.S. Attorney’s Office for the Middle District of Florida, we vow to continue protecting our most vulnerable from becoming lifetime victims.”
This case was investigated by Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Ilyssa M. Spergel.
This is another case 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.justice.gov/psc.
Lafayette Man Sentenced to 240 Months in PrisonRead the Press Release
HAMMOND – Richard Allan Joesph Crowley, 32 years old, of Lafayette, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to Production, Receipt and Possession of Child Pornography, announced United States Attorney Clifford D. Johnson.
Crowley was sentenced to 240 months in prison, 15 years of supervised release, and ordered to pay a $15,000 assessment for victims of these crimes.
According to documents in the case, on or about May 16 through May 17, 2021, Crowley produced sexually explicit content of a minor by persuading, inducing and enticing the minor to photograph their genitals and send those images to Crowley through the internet. Crowley further distributed at least one of these images through a group chat. On multiple occasions between May 1 and June 30, 2021, Crowley received child sexual abuse material of another minor through the internet. And finally, on or about June 8, 2022, Crowley possessed child sexual abuse material of an additional minor that was produced using a cell phone.
This case was investigated by the Federal Bureau of Investigation, Indianapolis Field Office/Lafayette Resident Agency, with assistance from the FBI Criminal Investigation Division/Child Exploitation Operational Unit, the FBI Boston Field Office/Portland Resident Agency, the City of Sioux Falls Police Department, the West Virginia State Police, the Indiana State Police Digital Forensic Unit, the Tippecanoe County High Tech Crime Unit, the Lafayette Police Department, and the Tippecanoe County Prosecutor’s Office. The case was prosecuted by Assistant United States Attorney Emily Morgan.
The case was 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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Justice Department Reaches Significant Milestone in Combating Redlining Initiative After Securing over $107 Million in Relief for Communities of Color NationwideRead the Press Release
The Justice Department announced today that its Combating Redlining Initiative has secured over $107 million in relief for communities of color nationwide that have experienced lending discrimination by banks or other mortgage lending businesses. As a part of the $107 million, the Department also announced a $9 million agreement with Ameris Bank to resolve allegations that Ameris engaged in a pattern or practice of redlining predominately Black and Hispanic neighborhoods in Jacksonville, Florida. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in or seeking to live in, communities of color because of the race, color, or national origin of the residents in those communities.
“As today’s case makes clear, redlining is not just a relic of the past,” said Attorney General Merrick B. Garland. “That is why, two years ago this month, the Justice Department launched our Combating Redlining Initiative, and once today’s settlement is approved, that Initiative will have secured more than $100 million for communities across the country that have been harmed by discriminatory lending practices. This work is just the beginning – the Justice Department currently has over two dozen active investigations into redlining, spanning neighborhoods across the country.”
In October 2021, Attorney General Garland announced the Combating Redlining Initiative, the Department’s most aggressive coordinated enforcement effort to address redlining. The Department has partnered with U.S. Attorneys’ Offices, federal financial regulatory agencies, including the Consumer Financial Protection Bureau, and state Attorneys General offices to enforce federal fair lending laws that prohibit redlining, including the Fair Housing Act and the Equal Credit Opportunity Act. Since 2021, the Department has secured 10 settlement agreements with banks and mortgage lending institutions to provide credit opportunities to communities of color in Houston, Memphis, Philadelphia, Camden, Wilmington, Newark, Los Angeles, Columbus, Tulsa, Rhode Island, and now Jacksonville. These agreements have provided millions of dollars to redlined communities and have helped to make homeownership a reality for families of color who have been unfairly denied access to credit.
Ameris Bank Settlement
The resolution with Ameris Bank was filed today in the U.S. District Court for the Middle District of Florida, along with the Department’s complaint, and is subject to court approval. The Department’s complaint alleges that, from 2016 through 2021, Ameris Bank avoided providing mortgage services to majority-Black and Hispanic neighborhoods in Jacksonville and discouraged people seeking credit in those communities from obtaining home loans. Ameris’ home mortgage lending was focused disproportionately on white areas of Jacksonville while other lenders generated applications in majority-Black and Hispanic neighborhoods at three times the rate of Ameris. Although Ameris operates 18 branches in Jacksonville, Ameris has never operated a branch in a majority-Black and Hispanic neighborhood in the city.
The neighborhoods that the Department alleges Ameris redlined in Jacksonville are some of the same neighborhoods that were first redlined by Home Ownership Loan Corporation maps in the 1930s.
“Combating modern day redlining is one of the most important strategies for ensuring equal economic opportunity today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “By taking on the discriminatory lending practices of banks and mortgage companies, we are helping to ensure that more Black, Hispanic, and other communities of color are able to buy a home, generate wealth, and fulfill the American Dream. This settlement marks a new pinnacle in our efforts to bring an end to redlining and provides tangible relief to communities that have been starved of access to credit for far too long.”
“For far too long, redlining has negatively impacted communities of color across our country,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Today’s agreement with Ameris Bank represents the first redlining case brought by the Department of Justice in the state of Florida and signals a step forward for Black and Hispanic communities in Jacksonville that were previously denied access to economic resources for generations. This settlement means that Ameris Bank will provide financial remedies to Jacksonville’s underserved communities, and it demonstrates our commitment to guaranteeing equal access to housing and credit resources for all Americans.”
Under the proposed consent order, which is subject to court approval, Ameris Bank will invest $9 million to increase credit opportunities for communities of color in Jacksonville. Specifically, Ameris will:
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Invest $7.5 million in a loan subsidy fund that will be made available to residents of majority-Black and Hispanic neighborhoods and those seeking credit in those communities.
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Invest $900,000 for advertising and outreach targeted toward the residents of these neighborhoods.
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Invest $600,000 to develop community partnerships to provide services that increase access to residential mortgage credit.
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Open a new branch in a majority-Black and Hispanic neighborhood in Jacksonville.
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Ensure that at least three mortgage loan officers are dedicated to serving majority-Black and Hispanic neighborhoods.
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Retain a consultant to assess the bank’s compliance management system as it pertains to redlining risk.
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Employ a full-time Director of Community Lending who will oversee the continued development of lending in majority-Black and Hispanic neighborhoods in Jacksonville.
Ameris is working cooperatively with the Department to address the credit needs of residents in majority-Black and Hispanic neighborhoods in Jacksonville. Beyond the agreement, Ameris has committed to expanding its lending services across its markets to underserved communities.
Additional information about the Department’s fair lending enforcement can be found at www.justice.gov/crt/fair-lending-program-0. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291, or submitting a report online.
View the complaint here.
View the consent order here.-
Justice Department Reaches Significant Milestone in Combating Redlining Initiative After Securing over $107 Million in Relief for Communities of Color NationwideRead the Press Release
The Justice Department announced today that its Combating Redlining Initiative has secured over $107 million in relief for communities of color nationwide that have experienced lending discrimination by banks or other mortgage lending businesses. As a part of the $107 million, the Department also announced a $9 million agreement with Ameris Bank to resolve allegations that Ameris engaged in a pattern or practice of redlining predominately Black and Hispanic neighborhoods in Jacksonville, Florida. Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in or seeking to live in, communities of color because of the race, color, or national origin of the residents in those communities.
“As today’s case makes clear, redlining is not just a relic of the past,” said Attorney General Merrick B. Garland. “That is why, two years ago this month, the Justice Department launched our Combating Redlining Initiative, and once today’s settlement is approved, that Initiative will have secured more than $100 million for communities across the country that have been harmed by discriminatory lending practices. This work is just the beginning – the Justice Department currently has over two dozen active investigations into redlining, spanning neighborhoods across the country.”
In October 2021, Attorney General Garland announced the Combating Redlining Initiative, the Department’s most aggressive coordinated enforcement effort to address redlining. The Department has partnered with U.S. Attorneys’ Offices, federal financial regulatory agencies, including the Consumer Financial Protection Bureau, and state Attorneys General offices to enforce federal fair lending laws that prohibit redlining, including the Fair Housing Act and the Equal Credit Opportunity Act. Since 2021, the Department has secured 10 settlement agreements with banks and mortgage lending institutions to provide credit opportunities to communities of color in Houston, Memphis, Philadelphia, Camden, Wilmington, Newark, Los Angeles, Columbus, Tulsa, Rhode Island, and now Jacksonville. These agreements have provided millions of dollars to redlined communities and have helped to make homeownership a reality for families of color who have been unfairly denied access to credit.
Ameris Bank Settlement
The resolution with Ameris Bank was filed today in the U.S. District Court for the Middle District of Florida, along with the Department’s complaint, and is subject to court approval. The Department’s complaint alleges that, from 2016 through 2021, Ameris Bank avoided providing mortgage services to majority-Black and Hispanic neighborhoods in Jacksonville and discouraged people seeking credit in those communities from obtaining home loans. Ameris’ home mortgage lending was focused disproportionately on white areas of Jacksonville while other lenders generated applications in majority-Black and Hispanic neighborhoods at three times the rate of Ameris. Although Ameris operates 18 branches in Jacksonville, Ameris has never operated a branch in a majority-Black and Hispanic neighborhood in the city.
The neighborhoods that the Department alleges Ameris redlined in Jacksonville are some of the same neighborhoods that were first redlined by Home Ownership Loan Corporation maps in the 1930s.
“Combating modern day redlining is one of the most important strategies for ensuring equal economic opportunity today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “By taking on the discriminatory lending practices of banks and mortgage companies, we are helping to ensure that more Black, Hispanic, and other communities of color are able to buy a home, generate wealth, and fulfill the American Dream. This settlement marks a new pinnacle in our efforts to bring an end to redlining and provides tangible relief to communities that have been starved of access to credit for far too long.”
“For far too long, redlining has negatively impacted communities of color across our country,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Today’s agreement with Ameris Bank represents the first redlining case brought by the Department of Justice in the state of Florida and signals a step forward for Black and Hispanic communities in Jacksonville that were previously denied access to economic resources for generations. This settlement means that Ameris Bank will provide financial remedies to Jacksonville’s underserved communities, and it demonstrates our commitment to guaranteeing equal access to housing and credit resources for all Americans.”
Under the proposed consent order, which is subject to court approval, Ameris Bank will invest $9 million to increase credit opportunities for communities of color in Jacksonville. Specifically, Ameris will:
-
Invest $7.5 million in a loan subsidy fund that will be made available to residents of majority-Black and Hispanic neighborhoods and those seeking credit in those communities.
-
Invest $900,000 for advertising and outreach targeted toward the residents of these neighborhoods.
-
Invest $600,000 to develop community partnerships to provide services that increase access to residential mortgage credit.
-
Open a new branch in a majority-Black and Hispanic neighborhood in Jacksonville.
-
Ensure that at least three mortgage loan officers are dedicated to serving majority-Black and Hispanic neighborhoods.
-
Retain a consultant to assess the bank’s compliance management system as it pertains to redlining risk.
-
Employ a full-time Director of Community Lending who will oversee the continued development of lending in majority-Black and Hispanic neighborhoods in Jacksonville.
Ameris is working cooperatively with the Department to address the credit needs of residents in majority-Black and Hispanic neighborhoods in Jacksonville. Beyond the agreement, Ameris has committed to expanding its lending services across its markets to underserved communities.
Additional information about the Department’s fair lending enforcement can be found at www.justice.gov/crt/fair-lending-program-0. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291, or submitting a report online.
View the complaint here.
View the consent order here.
View Exhibit A here.
View Exhibit B here.
View Exhibit C here.
View Exhibit D here.
View Exhibit E here.
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Jamaican National Indicted for Sweepstakes Scheme Targeting Elderly VictimsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, today announced that a federal grand jury in New Haven has returned a seven-count indictment charging HOWARD CHAMBERS, 32, a citizen of Jamaica residing in Waterbury, with fraud and money laundering offenses stemming from his alleged participation in a sweepstakes scam that defrauded primarily elderly victims across the country of millions of dollars.
The indictment was returned on October 17, and Chambers was arrested this morning. He appeared before U.S. Magistrate Judge Maria E. Garcia in New Haven, entered pleas of not guilty to the charges, and was released on a $150,000 bond into home detention, with electronic monitoring, pending trial.
The indictment alleges that, since at least 2018, Chambers and others used a sweepstakes scheme to induce primarily elderly victims to provide them with money. As part of this scheme, scammers notified victims, typically by telephone, that they won a Publishers Clearing House sweepstakes. The victims were told that in order to collect their winnings, they must pay fees and taxes. Following the initial phone call, Chambers and others mailed the victims fake documents, including a “winning notification” letter from Publishers Clearing House and a letter from the Internal Revenue Service stating that the victims were required by law to pay taxes on their winnings. Victims sent cash, money orders or checks through the mail to various addresses in Connecticut, including an address in East Hartford, and throughout the U.S.
The indictment also alleges that Chambers and others moved money received from victims through various accounts in different companies’ names, including a limited liability company registered in Connecticut with Chambers as its managing member and agent. Conspirators sometimes used victims as intermediaries to receive money from other victims and then move that money to members of this scheme. For example, at least one victim received checks and cash in the mail from people she believed were “sponsors” who were helping her pay the fees to receive her winnings, but actually were other victims. The victim deposited the checks into her bank account, withdrew cash, and mailed the cash to various addresses as directed by the conspirators.
The indictment charges Chambers with one count of conspiracy to commit mail fraud and wire fraud, five counts of mail fraud, and one count of conspiracy to commit money laundering. Each of these offenses carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Heather L. Cherry.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
Read more about the Justice Department’s efforts to combat elder fraud and abuse here.
Jackson Gang Member Admits to Conspiracy to Traffic Unique Form of FentanylRead the Press Release
DETROIT –Lansing resident and member of the violent Jackson street gang the “Thorough Bred Family,” Dominque Faulkner, 32, pleaded guilty today to conspiracy to distribute over 400 grams of fentanyl, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James Deir, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Detroit Field Division, Colonel James F. Grady, II, Michigan State Police, Director Elmer J. Hitt, Jackson Police and Fire Services, and Sheriff Gary Schuette, Jackson County Sheriff’s Department.
In his plea, Faulkner admitted that he and his co-conspirators distributed large amounts of fentanyl in Jackson. According to court documents, the fentanyl sold by the gang had a unique texture and coloring. Unlike most fentanyl, typically sold in powder form, TBF’s fentanyl was sold in a rock-like crystalline form, and was often colored yellow, purple, or blue, rather than the usual white. Court records also show that Faulkner and his fellow gang members possessed firearms in furtherance of the fentanyl trafficking conspiracy.
Following a coordinated crackdown on violent crime and fentanyl trafficking in Jackson County, including the investigation, arrest, incarceration, and prosecution of many TBF gang members and associates, Jackson County saw an approximately 48% reduction in non-fatal shootings, 43% reduction in fatal shootings, and 50% reduction in overdose deaths.
Four other co-conspirators have already pleaded guilty and/or been sentenced as follows:
- Zaire Faulkner, age 24 of Jackson was sentenced to 10 years in federal prison.
- Tommy Owens, age 32 of Jackson: was sentenced to 7 years and 3 months in federal prison.
- Mario Murguia, age 23 of Jackson: was sentenced to 5 years in federal prison.
- Demarquan Smith, age 21 of Jackson will be sentenced on January 30, 2023, and faces a 10-year mandatory/minimum prison term.
Charges remain pending against other co-conspirators, including Tamarious Faulkner, age 27 of Houston, Texas; Demond Johns, age 26 of Jackson; Brittany Bartkowiak, age 30 of Jackson; and Heather Dolan, age 37 of Jackson. They are set for jury trial on March 5, 2024. An indictment is only a formal charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
“The intersection of drugs and gangs almost inevitably results in violence in our communities. My office, in coordination with our federal, state, and local partners, will aggressively investigate and prosecute individuals or groups who sell poison to our communities .” U.S. Attorney Ison said.
“The Thorough Bred gang and Dominque Faulkner have terrorized the Jackson community for some time selling poison to the most vulnerable and through acts of gun violence,” said James Deir ATF Special Agent in Charge of the Detroit Field Division. “Two things are certain from this case: First, Jackson is a much safer community without Mr. Faulkner in it. Second, Dominique is better off in prison where he can reflect and seek redemption for all the lives he ruined.”
“We know it is a small number of individuals that wreak havoc in our community. Through our continued strong partnership with the Bureau of Alcohol, Tobacco, Firearms and Explosives, it is a priority to identify these individuals and build solid criminal cases should they choose to engage in continued reckless and violent behavior,” said Director Hitt.
“Our community is a safer place today because of all the dedicated law enforcement professionals who worked together to address the violence and drug dealing of the “Thorough Bread Family” street gang. The positive outcome of the case of Dominque Faulkner underscores the value of strong partnerships between local, state and federal agencies. I applaud the courage and resilience of the Jackson Community, and pledge to maintain our relentless pursuit of safety and justice for all,” stated Sheriff Gary R. Schuette, Jackson County Sheriff.
Dominque Faulkner is scheduled to be sentenced on February 1, 2024, before Judge Stephen J. Murphy, III. Faulkner faces a mandatory minimum sentence of 10 years in prison with a maximum sentence of life imprisonment.
This case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives with the Michigan State Police, Jackson Police Department, and the Jackson County Sheriff's Office. The case is being prosecuted by Assistant U.S. Attorneys Andrew R. Picek, Matthew Roth and Craig Welkener.
Iowa Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Thomas Alan Newman, age 59, from Swaledale, Iowa, pled guilty in federal court on October 18, 2023, to Possession of Child Pornography.
At the plea hearing, Newman admitted knowingly possessing child pornography, including depictions involving prepubescent minors or minors who had not attained 12 years of age. Newman further admitted he knowingly possessed material that portrayed sadistic or masochistic conduct or the sexual abuse and exploitation of an infant or toddler. Newman admitted that he used Facebook to trade child pornography and shared approximately 50 videos of such content.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Newman was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Newman faces a possible maximum sentence of 20 years’ imprisonment without the possibility of parole, a fine of up to $250,000, a special assessment of $100, and a term of supervised release of 5 years to life following any imprisonment. There is no parole in the federal system.
The case is being prosecuted by Assistant United States Attorney Kraig R. Hamit and was investigated by the Iowa Division of Criminal Investigation and the Cerro Gordo County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-3016.
Follow us on Twitter @USAO_NDIA.
Illegal Alien Sentenced to Prison for Unlawful Possession of a FirearmRead the Press Release
Louisville, KY – An illegal alien from Mexico was sentenced yesterday for the illegal possession of a firearm.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Rana Saoud of the Homeland Security Investigations Nashville, and Chief Sue Mudd of the Springfield Police Department made the announcement.
According to court document, Javier Michael Vega, 30, was sentenced to 4 years in prison, followed by 2 years of supervised release, for possession of a firearm by an illegal alien. On June 29, 2021, in Washington County, Kentucky, Vega kidnapped a woman at gunpoint and ordered her into his vehicle by threatening to shoot her. At some point while Vega and the victim were driving around in Vega’s vehicle, Vega became angry and fired a round from one of the firearms. The Springfield Police Department, who had been given a description of Vega’s vehicle, initiated a traffic stop. During a search of the vehicle, police recovered two handguns. Vega was prohibited from possessing a firearm because he was an alien illegally and unlawfully in the United States.
There is no parole in the federal system.
The case was investigated by the United States Department of Homeland Security and the Springfield Police Department and with assistance from the ATF.
Assistant U.S. Attorney Christopher Tieke prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Friend of Pfizer Employee Pleads Guilty to Insider Trading Based on Non-Public Drug Trial Results for COVID-19 TreatmentRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the guilty plea today of ATUL BHIWAPURKAR in connection with an insider trading scheme to reap illicit profits from inside information about the results of clinical trials of Paxlovid, a medicine used to treat COVID-19. BHIWAPURKAR was arrested in June 2023 and pled guilty to securities fraud based on insider trading before U.S. Magistrate Judge James L. Cott.
U.S. Attorney Damian Williams said: “Bhiwapurkar admitted in court that he received sensitive, non-public information about a confidential drug trial from his friend, an employee at Pfizer, so he could profit on that information. The prosecution of those who steal and misuse confidential information to profit at the expense of other market participants continues to be a top priority of our Office, and people who engage in insider trading will be caught and held accountable.”
According to the allegations in the Indictment and statements made during court proceedings:
In November 2021, BHIWAPURKAR participated in an insider trading scheme to reap illicit profits from options trading based on inside information about the results of clinical trials of Paxlovid, a medicine used to treat COVID-19. BHIWAPURKAR was provided material, non-public information about the Paxlovid trial by an employee of Pfizer who assisted in managing the data analysis in certain clinical drug trials.
On November 4, 2021, prior to the public announcement that a Pfizer trial of the drug Paxlovid, a medicine designed to treat mild to severe COVID‑19 infection, had produced positive results, BHIWAPURKAR received a tip from a Pfizer insider with confidential information about the positive results and the timing of the upcoming press release. On that same day, BHIWAPURKAR purchased short-dated, out-of-the-money Pfizer call options that expired days and weeks later. BHIWAPURKAR also tipped another friend (“Individual-1”), who similarly purchased short-dated, out-of-the-money Pfizer call options that expired approximately three weeks later.
The following day, on November 5, 2021, and before the market opened, Pfizer publicly released results of its Paxlovid study. That same day, following the publication of the positive results, Pfizer’s stock price increased substantially, opening — and eventually closing — more than 10% higher than the prior day’s closing price. In the following weeks, BHIWAPURKAR and Individual-1 sold their Pfizer call options at significant profits.
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BHIWAPURKAR, 45, of Milpitas, California, pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. BHIWAPURKAR will be sentenced by U.S. District Judge Andrew Carter.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Alex Rossmiller and Justin Rodriguez are in charge of the prosecution.
Fresno Hairstylist Pleads Guilty to Committing Multimillion-Dollar Caregiver Fraud Against Malibu Doctor Suffering from Mental IllnessRead the Press Release
PLEA AGREEMENTLOS ANGELES – A Fresno hairstylist pleaded guilty today to nine felonies for defrauding a vulnerable physician out of more than $2.7 million before his death and then attempting to defraud his estate out of an additional amount exceeding $20 million.
Anthony David Flores, 47, a.k.a. “Anton David,” pleaded guilty to one count of conspiracy to commit mail fraud, two counts of wire fraud, two counts of mail fraud, one count of conspiracy to engage in money laundering, two counts of money laundering, and one count of engaging in monetary transactions in property derived from specified unlawful activity.
His co-defendant and former girlfriend, Anna Rene Moore, 40, an actress and former yoga studio owner who resided in Monterrey, Mexico at the time of her January 31 arrest at a Houston airport, pleaded guilty on August 28 to seven felonies in this case: one count of conspiracy to commit mail fraud, two counts of mail fraud, one count of conspiracy to engage in money laundering, two counts of money laundering, and one count of engaging in monetary transaction in property derived from specified unlawful activity.
Flores and Moore have been in federal custody since January of this year.
According to Flores’ plea agreement, beginning in June 2017, Flores used false promises and representations to befriend the victim — a physician and successful investor worth more than $60 million, but who suffered from a mental illness and lost the ability to care for himself after multiple hospitalizations. Within days of meeting the victim, Flores and Moore moved into the victim’s beachfront Malibu home – rent free – and slowly took control of his life by pretending to be his new “best friends” and caregivers.
In September 2017, after the victim suffered a severe mental breakdown resulting in his arrest and detention in Los Angeles County jail, Flores fraudulently induced the victim to sign powers of attorney granting Flores control over the victim’s finances.
Flores represented that he would only use these powers to access the victim’s finances to post bail for release, and that the victim could immediately rescind them once the victim was free from jail. But after the victim was released from custody, the powers of attorney were never rescinded. Within days, Flores used these powers to open bank accounts in the victim’s name with Flores listed as the power of attorney, giving himself and Moore access to the victim’s wealth.
From September 2017 to May 2018, Flores and Moore lived with the victim, diverted the victim’s funds to their own bank accounts, isolated the victim from his family and longtime friends, and provided the victim with drugs, including marijuana and LSD.
In the final days of the victim’s life in May 2018, Flores and Moore gave the victim LSD, which caused his mental state to severely deteriorate. While the victim was under the influence of LSD, Flores caused the two-step authentication feature on the victim’s $60-million online brokerage account to be changed after previously having changed the phone number listed on the account from the victim’s phone number to his own phone number.
Then, while the victim was still under the influence of LSD that Flores had provided to him and without the victim’s knowledge or consent, Flores initiated two $1-million wires from the victim’s brokerage account to the power-of-attorney accounts that Flores controlled, then to Flores’ personal bank account. Flores and Moore then left the victim, who by this time was in mental distress. From a luxury hotel paid with the victim’s funds, Flores and Moore remotely watched the victim’s deteriorating mental condition on the video cameras installed throughout the Malibu beach house and directed staff they had hired to work at the house to watch the victim.
In May 2018, the victim died in his Malibu home at the age of 57 years old. Following the victim’s death, Flores and Moore moved back into the victim’s Malibu beachfront home and withdrew large sums of money from his accounts. They also concealed information about the victim’s finances from his mother and sister, both of whom resided in Florida. This prompted the victim’s family to file a lawsuit, which resulted in the fraud being uncovered.
In the ensuing lawsuit in Los Angeles Superior Court, Flores and Moore violated multiple court orders ordering them to return the funds stolen from the victim. They attempted to launder the fraudulent proceeds by funneling the money through multiple different accounts to thwart the victim’s estate and court-appointed receiver from recouping the money.
Six months after the victim’s death, Flores and Moore then came forward and falsely claimed that the victim had “promised” them one-third of his estate – amounting to $20 million – and his Malibu beach house, and that the victim was on the verge of his changing his will to name both Flores and Moore in his will before the victim’s untimely death. Flores and Moore filed false creditor’s claims against the victim’s estate, fraudulently claiming they were entitled to $20 million and the beach house, and falsely listing incidents when the victim supposedly promised Flores and Moore $20 million and his beach house, despite knowing that these claims were untrue.
After extensive litigation with the victim’s estate, the lawsuit was settled with Flores and Moore withdrawing their false creditor’s claims and agreeing to repay the victim’s estate $1 million, which they have so far failed to do.
United States District Judge Percy Anderson scheduled a February 26, 2024 sentencing hearing, at which time Flores will face a statutory maximum sentence of 20 years in federal prison for each fraud count, up to 20 years on the conspiracy to commit money laundering and laundering of monetary instruments counts, and up to 10 years on transactional money laundering count.
Moore’s sentencing hearing is scheduled for January 22, 2024.
The FBI and IRS Criminal Investigation investigated this matter.
Assistant United States Attorney Andrew M. Roach of the Cyber and Intellectual Property Crimes Section is prosecuting this case. Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section is handling asset forfeiture matters in this case.
Four South Carolina Prosecutors Receive Awards for Excellence from the United States Attorney for the District of South Carolina Adair F. BoroughsRead the Press Release
MYRTLE BEACH, SOUTH CAROLINA – United States Attorney for the District of South Carolina, Adair F. Boroughs, recognized four South Carolina Prosecutors for their distinguished achievements during the opening night of the 2023 South Carolina Solicitors’ Annual Conference, which took place in October 8-11, 2023, in Myrtle Beach, South Carolina.
U.S. Attorney Boroughs presented four categories of awards: the 2023 General Sessions Ernest F. Hollings Award for Excellence in State Prosecution to Eleventh Circuit Deputy Solicitor Rhonda W. Patterson; the 2023 South Carolina Attorney General’s Office Ernest F. Hollings Award for Excellence in State Prosecution to Senior Assistant Attorney General Tracy Meyers; the 2023 Family Court Ernest F. Hollings Award for Excellence in State Prosecution to Twelfth Circuit Assistant Solicitor Stephen Hill; and the 2023 John R. Justice Community Leadership Award to Fifth Circuit Assistant Solicitor, and the late Prosecutor John R. Justice’s daughter, Ivy Justice.
The Ernest F. Hollings Awards for Excellence in State Prosecution were conceived in 1996 and begun in 1997 as a means for federal prosecutors to take the lead in publicly recognizing their state court colleagues who generally have to do much more with much less. As Chairman of the Law Enforcement Coordinating Committee, then United States Attorney J. René Josey enlisted the support of United States Senator Ernest F. Hollings to make the awards a reality. As a former Charleston prosecutor and longtime legislative supporter of law enforcement, Senator Hollings was more than willing to lend his aid. The Senator Hollings awards are presented annually to recognize an Assistant Solicitor in each of the following categories: (1) excellence in prosecution in the Court of General Sessions; and/or (2) excellence in prosecution in the Family Courts. In 2006, a third category was added to recognize an Assistant Attorney General.
Established in 2012, the John R. Justice Community Leadership Award is presented annually by the U.S. Attorney. Nominations are received from the U.S. Attorney, elected Solicitors, the Executive Director of the S.C. Commission on Prosecution Coordination, past elected Solicitors, or past recipients of the award. The award is presented at the annual Solicitor’s conference to an Assistant Solicitor who has exhibited exemplary citizenship and/or implementation of innovative solutions to advance public safety and improve the quality of the lives of members of his or her community. The award was named for Solicitor John R. Justice who over a period of decades honored and served both the criminal justice system and his community. The John R. Justice Community Leadership Award recognizes that community involvement, citizenship, and innovative ideas serve to advance public safety and the criminal justice system.
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Four Members of Queens-Based Family Prostitution Business Convicted of Sex Trafficking and Other OffensesRead the Press Release
A federal jury in Brooklyn today returned guilty verdicts on all counts of an indictment charging Luz Elvira Cardona, Roberto Cesar Cid Dominguez, Blanca Hernandez Morales, and Jose Facundo Zarate Morales, who were members of the Queens-based Cid-Hernandez Sex Trafficking Organization, with transportation of minors, sex trafficking, conspiracy to commit Hobbs Act extortion, promotion of prostitution, use of interstate facilities to commit bribery and related conspiracy counts. The verdict followed a four-week, trial before United States District Judge LaShann DeArcy Hall. When sentenced, the defendants each face up to life in prison, except for Cid Dominguez, who faces up to 40 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“Today’s verdict is a milestone in the dismantling of a sex trafficking organization that exploited young women and minors, it is justice for the vulnerable victims who suffered so much pain and suffering, and it is a reckoning for the perpetrators who will soon learn the consequences for their deplorable crimes,” stated United States Attorney Peace. “It is my hope that the convictions bring some measure of solace to the victims on their paths to healing.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, Homeland Security Investigations, New York, the New York City Police Department, and the Putnam County Sherriff’s Office for their outstanding work on the case.
As proven at trial, since approximately 2002, the defendants, all of whom are related by blood or common-law marriage, used force, threats of force, fraud and coercion to cause young women and minor girls from Mexico to engage in prostitution in the United States. Members of the organization pressured the victims, including two minor victims, to travel to the United States with false promises of employment and a better life. When the young girls arrived in New York, they were forced by the defendants to work in prostitution.
During the trial, a victim testified that she was 15 years-old and living in Mexico in 2007 when Cardona, her aunt, offered to pay travel expenses to New York City where the teen could work as a cleaner. The victim did not know that Cardona, along with her partner Zarate Morales, his mother Hernandez Morales, and her partner Cid Dominguez, were operating a prostitution business. After the victim arrived in Queens, Cardona and Zarate Morales brokered a deal with a client to sell her virginity and thereafter she was forced to engage in commercial sex with 20 or more men daily.
Although the Cid-Hernandez Sex Trafficking Organization was based in Queens, young women and minor girls were transported to prostitution clients throughout New York State and Connecticut. The organization controlled “routes,” which were comprised of contact lists of potential clients in specific areas and employed individuals who served as drivers.
Cid Dominguez also bribed Village of Brewster Police Officer Wayne Peiffer with free sexual services to ensure the organization’s protection from law enforcement in his jurisdiction. Peiffer pleaded guilty in April 2022 to conspiracy to commit Hobbs Act extortion and conspiracy to commit bribery. Peiffer is awaiting sentencing.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Lauren Elbert, Gillian Kassner, Rachel A. Bennek and Nicholas Moscow are in charge of the prosecution with the assistance of Paralegal Specialist Ryan Costley.
The Defendants:
LUZ ELVIRA CARDONA (also known as “Lucy”)
Age: 35
Queens, New YorkROBERTO CESAR CID DOMINGUEZ
Age: 60
Queens, New YorkBLANCA HERNANDEZ MORALES (also known as “Nancy,” “Maria Elena,” and “Malena”)
Age: 53
Queens, New YorkJOSE FACUNDO ZARATE MORALES (also known as “El Guero”)
Age: 34
Queens, New YorkE.D.N.Y. Docket No. 21-CR-622 (LDH)
Former Penn Hills Man Pleads Guilty to Child Exploitation ChargesRead the Press Release
PITTSBURGH, PA - A former resident of Penn Hills, Pennsylvania, pleaded guilty in federal court to charges of Coercion and Enticement of a Minor to Engage in Illegal Sexual Activity, Production of Material Depicting the Sexual Exploitation of a Minor, and Distribution of Material Depicting the Sexual Exploitation of a Minor, United States Attorney Eric G. Olshan announced today.
Kuang Myat Kyaw (23), formerly of Pittsburgh, PA, pleaded guilty to seven counts before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that Kyaw, during various periods between August 9, 2020 and September 2021, using a computer and the Internet, enticed and coerced five minor, female victims to produce photographs and videos depicting their sexual exploitation and engaging in sadistic sexual acts. Kyaw initially tricked the minors into providing him with photographs depicting themselves naked, and then used the threat of disseminating those images to their family and friends to extort, or attempt to extort, the minors to engage in what he referred to as a “seven-day challenge”, during which he would demand that they produce increasingly depraved sexual imagery.
Judge Colville scheduled sentencing for February 24, 2024, at 11:00 a.m. The law provides for a total sentence of not less than 15 years and up to life in prison, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that Kyaw remain in custody.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Fairfax County, Virginia Police Department, the Wright County, Minnesota Sheriff’s Office, and other local police departments conducted the investigation that led to the prosecution of Kyaw.
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.justice.gov/psc.
Former Orange County Education Official Arrested on Complaint Alleging He Embezzled More Than $14 Million from School DistrictRead the Press Release
COMPLAINT and AFFIDAVIT (redacted)SANTA ANA, California – The former senior director of fiscal services at an Orange County public school district was arrested today on a federal criminal complaint alleging he embezzled more than $14 million from the district over a seven-year period and used the illicitly obtained funds to finance a house, buy luxury items, and obtain cosmetic treatment from a dermatologist.
Jorge Armando Contreras, 52, of Yorba Linda, is charged with embezzlement concerning programs receiving federal funds, a felony punishable by up to 10 years in federal prison. He made his initial appearance this afternoon in United States District Court in Santa Ana and a federal magistrate judge ordered him jailed without bond. Contreras’ arraignment is scheduled for November 27.
Contreras was the senior director of fiscal services at Magnolia School District, which serves students in Anaheim and Stanton. In this role, Contreras, whom the school district hired in 2006, managed the district’s fiscal operations. The schools in this district educate children from preschool through sixth grade – 81% of whom are classified as socio-economically disadvantaged. Each year, since 2009, Magnolia School District has received millions of dollars in federal funds.
According to an affidavit filed with the complaint last week and unsealed today, from August 2016 to July 2023, Contreras embezzled more than $14 million from Magnolia School District by making unauthorized payments to himself from district funds – payments that came from more than 250 checks from the district that were deposited into Contreras’ personal bank account. The checks ranged from approximately $11,000 to approximately $95,000 and listed fictitious persons as the payee, the affidavit alleges.
From August 2022 to July 2023 alone, Contreras allegedly embezzled more than $4.1 million from Magnolia School District. During this time, Contreras used the embezzled funds to pay more than $1.9 million to American Express, withdraw $325,000 in cash from ATMs, and transfer more than $130,000 to his partner, whom he married in August 2023. Contreras allegedly also used the illicitly obtained funds to purchase his residence in Yorba Linda for approximately $1.5 million as well as a BMW SUV for approximately $127,000, which he used to deposit embezzled funds into his personal bank account via drive-thru ATMs.
Contreras purchased the Yorba Linda residence in 2020 and paid for more than $1 million of it via a wire transfer from his personal bank account. Contreras also allegedly altered bank statements submitted as part of the loan application for this property to hide funds he embezzled from the school district.
The affidavit further alleges that Contreras altered documents over the years to hide his embezzlement, and that he used some of the funds to pay $190,000 to a West Hollywood dermatologist and surgeon for cosmetic treatments. He also allegedly used the embezzled funds to purchase luxury items sold by Versace and Louis Vuitton.
Contreras allegedly also transferred some of the embezzled funds to bank accounts in Mexico.
The school district placed Contreras on administrative leave in August 2023 and has filed a lawsuit against him in Orange County Superior Court.
A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI, IRS Criminal Investigation, and the United States Department of Education – Office of Inspector General are investigating this case.
Assistant United States Attorneys Billy Joe McLain of the Public Corruption and Civil Rights Section, Brett A. Sagel of the Corporate and Securities Fraud Strike Force, and James E. Dochterman of the Asset Forfeiture and Recovery Section are prosecuting this case.
Former Grain Valley Police Officer Indicted for Child Sexual ExploitationRead the Press Release
KANSAS CITY, Mo. – A former Grain Valley, Mo., police officer has been indicted by a federal grand jury on charges related to the sexual exploitation of a child.
August Price Gildehaus, 27, currently a resident of Blue Springs, Mo., was charged in a three-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Oct. 17. That indictment was unsealed and made public today upon Gildehaus’s arrest and initial court appearance.
Gildehaus was a Grain Valley police officer at the time of the alleged offenses but is no longer employed by the city. Gildehaus was originally charged by the Jackson County Prosecutor’s Office.
The federal indictment charges Gildehaus with one count of enticing a minor to engage in illegal sexual activity between Aug. 1, 2022, and March 6, 2023; one count of producing child pornography on Aug. 19, 2022; and one count of attempting to distribute child pornography on Sept. 6, 2022.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the Grain Valley, Mo., Police Department and the Missouri State Highway Patrol.
Former Florida State Representative Sentenced to Federal Prison for Wire Fraud, Money Laundering, and Making False Statements in Connection with COVID-19 Relief FraudRead the Press Release
GAINESVILLE, FLORIDA – Joseph Harding, 36, of Williston, Florida, was sentenced to 4 months in federal prison for wire fraud, money laundering, and making false statements in connection with COVID-19 relief fraud. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“The theft of any amount of taxpayer funds is inexcusable,” said U.S. Attorney Coody. “However, the defendant’s deceptive acts of diverting emergency financial assistance from small businesses during the pandemic is simply beyond the pale. Today’s sentence both punishes the defendant’s criminal conduct and should serve as a significant deterrent to others who would selfishly steal from their fellow citizens to unlawfully enrich themselves. With our law enforcement partners, we remain committed to investigating and prosecuting those who engage in acts of COVID-19 related fraud.”
Court documents reflect Harding participated in a scheme to defraud the Small Business Administration (SBA) and obtained a coronavirus-related small business loan by means of materially false and fraudulent pretenses, representations, and promises, and while executing such scheme, caused wire communications to be transmitted in interstate commerce. Harding also made a false and fraudulent SBA Economic Injury Disaster Loan (EIDL) application, in the name of one of his dormant business entities, that he submitted to the SBA. By this conduct, Harding fraudulently obtained $150,000 in COVID-19 relief funds from the SBA to which he was not entitled. After obtaining the EIDL proceeds, Harding conducted three monetary transactions each involving more than $10,000 in fraudulently obtained funds: a transfer to his joint bank account, a payment to his credit card, and a transfer into a bank account of a third-party business entity.
"Mr. Harding egregiously betrayed the public trust by stealing from COVID relief funds meant to help the very people who elected him.,” said Special Agent in Charge Brian J. Payne, IRS Criminal Investigation, Tampa Field Office. “Greed and public service should never meet, but when they do, we stand ready to ensure bad actors are held responsible for their actions.”
“Today, Mr. Harding was held accountable for swindling money out of COVID-19 relief programs created to help small businesses, including Mr. Harding’s own constituents, recover from the economic hardships of the pandemic,” said Special Agent in Charge Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). “The FDIC OIG will continue to work with our law enforcement partners to bring to justice anyone who steals from such programs and threatens to undermine the integrity of our Nation’s financial institutions.”
Harding’s imprisonment will be followed by two years of supervised release.
“SBA OIG will follow the evidence to root out fraud in SBA’s pandemic response programs and bring wrongdoers to justice,” said SBA OIG’s Eastern Region Special Agent-in-Charge Amaleka McCall-Brathwaite. “This sentence demonstrates there is significant consequence for fraudulently accessing SBA programs to steal from taxpayers. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”
“Mr. Harding abused a program that was designed to ease the suffering of the constituents who elected him to serve in their best interests,” says Sherri E. Onks, Special Agent in Charge of the FBI Jacksonville Division. “Instead of using thousands of dollars in federal funds to help keep struggling businesses afloat and honest workers employed, he selfishly diverted it for his own personal gain. The FBI will hold accountable anyone who takes advantage of those in need, and we remain committed to working with our partners to ensure fraudsters are brought to justice.”
The conviction jointly conducted by the Internal Revenue Service-Criminal Investigation, the Federal Deposit Insurance Corporation (FDIC) Office of Inspector General, the Small Business Administration (SBA) Office of Inspector General, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Justin M. Keen and David P. Byron.
The PPP, administered by the U.S. Small Business Administration (“SBA”), was designed to provide low-interest, forgivable loans to applicants to help fund certain permissible expenses for qualifying businesses amidst the COVID-19 pandemic, which included payroll costs, interest on mortgages, rent, and utilities. The EIDL program, also administered by the SBA, was designed to provide low-interest loans to small businesses in regions affected by declared disasters. The CARES Act authorized the SBA to provide EIDLs, up to $2 million, to eligible small businesses experiencing substantial financial disruption due to the COVID-19 pandemic.
This case was prosecuted as part the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act relief programs. The CARES Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One of the two programs that were developed through CARES Act is the PPP. It provides funding to businesses through PPP loans for payroll costs, interest on mortgages, rent and utilities. PPP allows the interest and principal on loans to be forgiven if the business spends proceeds on certain expense items within a designated time and uses a certain percentage of the loan on payroll expenses. The Department of Justice remains vigilant in detecting, investigating, and prosecuting wrongdoing related to the crisis.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Florida Man Sentenced for Racially-Motivated Attack Against Six Black Men Near 1923 Rosewood Massacre SiteRead the Press Release
A Florida man was sentenced today in federal court for his racially-motivated attack on a group of Black men who were surveying land along a public road in Rosewood, Florida.
David Emanuel, 63, of Cedar Key, was sentenced to one year and a day in prison followed by two years of supervised release for his bias-motivated attack on six men who were surveying land owned by one of the victims at the time of the offenses.
“Racially-motivated hate crimes run contrary to our values as Americans and simply have no place in our society today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant violently and callously sought to strike a group of Black men with his truck because of their race. As we mark 100 years since the horrific 1923 Rosewood Massacre, the Justice Department stands resolute in its commitment to holding accountable those who commit violent racially-motivated hate crimes in our country.”
“This sentencing sends a clear message that committing hate crimes has serious consequences,” said U.S. Attorney Jason R. Coody for the Northern District of Florida. “Despicable, hate-fueled crimes such as these have no place in our state or country. The violence directed toward these victims, based solely on their race, is abhorrent and will not be tolerated. With the dedicated assistance of our law enforcement partners, we will continue to aggressively investigate and prosecute civil rights violations to ensure justice for those victimized by hate.”
“There is no place for hate and racism in this community,” said Special Agent in Charge Sherri E. Onks of the FBI Jacksonville Field Office. “No one should ever fear they could be targeted in an act of violence based on how they look, where they’re from or any part of their identity. Hate crimes are not only an attack on the victim; they are meant to threaten and intimidate an entire community, and because of their wide-ranging impact, investigating hate crimes is among the FBI’s highest priorities. We will continue to work with our law enforcement partners to seek justice for victims and their communities.”
On July 26, after a two-day trial, a jury in Gainesville convicted Emanuel for driving his truck toward the group of six elderly or adult Black men because of their race, and because they were using a public road.
Evidence at trial proved that on Sept. 6, 2022, Emanuel found the victims surveying land adjacent to a public roadway near the location of the 1923 Rosewood Massacre. When the defendant came upon the victims, who were on the public roadway, he shouted racial slurs and expletives at them, including “[racial slur] get out of these woods” before driving a pickup truck directly at the group, nearly striking one of them. At trial, one witness testified that Emanuel admitted that he “came at those [expletives],” and that he “would have [expletive]d up all those Black [expletive].” Video evidence showed that after he was arrested, Emanuel complained that he was “getting treated like this [expletive] over a [expletive] [racial slur].” One witness testified that the defendant came “within inches” of striking one of the victims and that one victim, “nearly lost his life that day.” No victims suffered physical injury as a result of the Emanuel’s racially-motivated attack.
The FBI Jacksonville Field Office and Gainesville Resident Agency investigated the case, with assistance from the Levy County Sheriff’s Office.
Assistant U.S. Attorneys Kaitlin Weiss and Frank Williams for the Northern District of Florida and Trial Attorney Laura-Kate Bernstein of the Civil Rights Division’s Criminal Section prosecuted the case.
Florida Couple Pleads Guilty to Scheme to Evade $42 Million in Duties for Illegally Importing and Selling PlywoodRead the Press Release
A Florida husband and wife, Noel and Kelsy Hernandez Quintana, pleaded guilty today to conspiring to import plywood contrary to the Lacey Act and customs laws, and to selling plywood products that were illegally imported and sold. Noel Quintana also pleaded guilty to one count of smuggling and one count of violation the Lacey Act. Kelsy Quintana also pleaded guilty to two counts of violating the Lacey Act. The total loss of duties owed on the illegally imported wood products was approximately $42 million. The plywood’s market value was between $25 million and $65 million.
According to court filings, the Quintanas incorporated seven companies in the United States – naming relatives or friends as corporate officers and agents – and these shell companies imported hundreds of shipments of plywood products into the United States between February 2016 and December 2020. The Quintanas also incorporated a financial shell company through which they accepted payments from purchasers for the plywood they imported in violation of laws, including the Lacey Act and customs laws.
Before April 2017, the Quintana’s importing shell companies imported containers of plywood into the United States and almost exclusively declared them to be hardwood plywood imported from China. But after April 2017, the companies evaded applicable duties by falsely declaring their hardwood plywood imports from China to be either the product of another country or to be made with a species of wood not subject to duties.
“Today we hold defendants accountable for their intentional circumvention of customs laws: to avoid paying duties, defendants repeatedly violated the law, refining their schemes each time one was exposed,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This is not simply a financial crime – accurate import declarations protect U.S. markets from dumping by foreign countries and deter illegal harvesting of plants.”
“Homeland Security Investigations (HSI) is committed to pursuing individuals or entities that attempt to defraud the government of millions of dollars, violate U.S. customs laws and keep a fair marketplace for businesses,” said Special Agent in Charge Anthony Salisbury of the HSI Miami Field Office. “These types of criminal activities only serve to negatively impact the U.S. economy and we will continue to work with our federal law enforcement partners to combat this illicit activity.”
When importing plant products, the Lacey Act requires filing a declaration which contains, among other things, the plant’s scientific name and its country of origin. Under the Lacey Act, it is unlawful to transport or sell a plant product knowing it or the plant it was made from was transported in violation of any plant-related law. Customs laws prohibit false statements in any import declaration without reasonable cause to believe the truth of such statement. It is also illegal to import merchandise contrary to law, including the Lacey Act.
According to the plea agreement, softwood plywood – regardless of country of export – carried a general duty of 8%, with a few duty-free exceptions, such as if the outer ply was made from Parana pine. Antidumping and countervailing duties of more than 200% applied to hardwood plywood manufactured in China after approximately April 2017.
To avoid paying duties, the Quintana’s shell companies falsified import declarations for hardwood and softwood plywood. For example, a declaration from July 2018 said plywood in three containers was manufactured in Russia. But the containers were manufactured and loaded in Qingdao, China, and transported to Port Everglades, Florida, through the Panama Canal, without ever stopping in Russia. After federal authorities stopped such a shipment through Panama, the Quintanas used a different tactic to evade duties by shipping Chinese-produced hardwood plywood to Malaysia, then transferring the wood to new containers to be shipped onward to the United States. This change of containers was intended to better conceal that the plywood originated from China.
The Quintanas also falsely declared some shipments of softwood plywood to be duty-free Parana pine, which allowed them to evade the 8% general duty on these imports.
Additional court filings reflect that, after being alerted to the possibility of prosecution for their illegal acts, the Quintanas fled the United States initially to Panama and then to Montenegro, where they were the subject of extradition proceedings.
The couple pleaded guilty to conspiring to import plywood in violation of the Lacey Act and customs laws and conspiring to sell the illegally imported plywood. Noel Quintana also pleaded guilty to one count of smuggling and one count of importing plant products without filing a declaration including the scientific name and name of the country from which the plants were taken. Kelsy Quintana also pleaded guilty to two counts of importing plant products without filing a declaration including the scientific name and name of the country where the plant was harvested.
Noel Quintana faces a maximum penalty of 20 years in prison and a $250,000 fine for count three as well as five years in prison and a $250,000 fine for each of counts one and six. Kelsy Quintana faces a maximum penalty of five years in prison and a $250,000 fine for each of counts one, five and six. Both face forfeitures up to $42 million. Sentencing is scheduled for Jan. 12, 2024.
HSI investigated the case, with support from Customs and Border Protection, U.S. Fish and Wildlife Service and the Animal and Plant Health Investigation Service.
Attorneys from the Environment and Natural Resources Division’s Environmental Crimes Section and the U.S. Attorney’s Office for the Southern District of Florida prosecuted the case.
Federal Jury Convicts Four Taos County, New Mexico Compound Defendants in Connection with Kidnapping and Terrorism PlotRead the Press Release
ALBUQUERQUE – A federal jury returned guilty verdicts against Siraj Ibn Wahhaj, his sisters Hujrah Wahhaj and Subhanah Wahhaj, and Subhanah’s husband, Lucas Morton, following a three week jury trial. The jury convicted Siraj Wahhaj and Lucas Morton of conspiracy to provide material support to terrorists, providing material support to terrorists and conspiracy to murder an officer or employee of the United States. Hujrah Wahhaj, Subhanah Wahhaj and Lucas Morton were additionally convicted of conspiracy to commit kidnapping resulting in death and kidnapping resulting in death.
In a plea agreement which was unsealed today, the fifth defendant, Jany Leveille, pled guilty to conspiracy to provide material support to terrorists and being in possession of a firearm while unlawfully in the United States.
According to evidence presented at trial and other publicly available court records, in December 2017, Siraj Wahhaj unlawfully abducted his three-year-old son, Abdul Ghani, from his wife in Georgia. Leveille and the defendants had formed the belief that Abdul Ghani was her son and was possessed by demons. The group took Abdul Ghani to New Mexico, depriving him of his anti-seizure medication and the loving care of his mother, and subjected him to an exhausting regimen of daily spiritual exorcisms.
Abdul Ghani died less than two weeks after arriving in New Mexico, before investigators had any knowledge of a suspected location to search for him.
Under Leveille’s direction, Siraj and the others established a community centered on the belief that Abdul Ghani would return as Jesus Christ to pass judgment on corrupt institutions, including the FBI, the military and other government and financial institutions. To this end, they established a fortified base and a firing range. Armed with 11 firearms, including an AR-15 Bushmaster assault rifle, high-capacity magazines, and hundreds of rounds of ammunition, the group conducted weapons and tactical training and required some of the children to do so as well. The group conducted the training with the intent to “face the nation” and kill those who refused to believe as they did. They spoke of waging jihad and becoming martyrs.
On Aug. 3, 2018, the Taos County Sheriff’s Office Tactical SRT Unit executed warrants on the compound. Siraj Wahhaj armed himself and prepared to defend the compound before ultimately being taken into custody without shots fired. During a search of the compound, law enforcement located the remains of Abdul Ghani in an underground tunnel.
In her plea agreement, Leveille admitted that she and her co-conspirators entered into an agreement to provide material support and resources to prepare for, and to carry out, the killing of federal officers or employees when they came to the compound. Leveille also admitted that she knew she was no longer legally and lawfully in the United States and that she was not allowed by law to possess the firearms or ammunition.
“When a mother loses her child, we all lose a child,” said United States Attorney Alexander Uballez. “It is our collective responsibility to protect our children from danger and, when we lose a child, it is our solemn duty in law enforcement to ensure that those who are responsible receive justice. My thanks go out to the many local, state, and federal law enforcement officers who worked tirelessly to deliver that justice, and my heart goes out to the mother of Abdul Ghani.”
“The FBI takes its mission of protecting the American public seriously, and we are dedicated to conducting fair and thorough investigations,” said FBI Special Agent in Charge Raul Bujanda. “The nefarious activities and subsequent conviction of these four depraved criminals underscore the continued interest of some US-based violent extremists in self-initiated attack plotting, independent of any guidance or support from a foreign terrorist organization. This investigation highlighted their interest in the preparation for and possible desire to conduct attacks in the Homeland against innocent people.”
“In addition to this preparation for terror, the senseless kidnapping resulting in the death of a juvenile these criminals conducted is inexcusable and have no place in our society,” Bujanda continued. "Their despicable actions shattered a community and a family who will forever be impacted by these traumatic events. The convictions rendered in this case show those who participate in these types of criminal activities will be held accountable for their actions. The FBI would like to thank the Taos County Sheriff Office and the U.S. Attorney’s Office for the District of New Mexico for their partnership and diligent work on this case.”
All four defendants will remain in custody pending sentencing, which has not yet been scheduled. At sentencing, Siraj, Hujrah and Subhanah Wahhaj, and Lucas Morton each face up to life in prison. Per the terms of her plea agreement, Leveille faces up to 17 years in prison.
The FBI Albuquerque Field Office investigated this case with assistance from the U.S. Department of Homeland Security, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Taos County Sheriff’s Office, NM Office of the Superintendent of Insurance, and the 8th Judicial District Attorney’s Office.
Assistant U.S. Attorneys Kimberly Brawley and Tavo Hall for the District of New Mexico and Trial Attorneys Jessica Joyce and George Kraehe of the National Security Division’s Counterterrorism Section are prosecuting the case.
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Essex County Man Sentenced to Two Years in Prison for Bribing Mail Carriers to Steal Postal Arrow KeysRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 24 months in prison for his role in a scheme to bribe mail carriers to steal postal arrow keys used to unlock mail receptacles and to use stolen items from the mail to fraudulently obtain funds from banks, U.S. Attorney Philip R. Sellinger announced.
Amin C. Jones, 29, of Orange, New Jersey, previously pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count each of bribery of U.S. Postal Service mail carriers and conspiracy to commit bank fraud. Judge Wigenton imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Jones schemed to bribe mail carriers in East Orange and Newark, New Jersey, by offering them cash, typically $5,000, in exchange for the mail carriers giving Jones a postal arrow key, which could be used to access a variety of postal service mail receptacles. Jones and others sought USPS arrow keys so that they could steal mail. From June to July 2021, Jones and another individual drove to various locations in East Orange and Newark, where they stopped over four different mail carriers, including an undercover postal inspector, who Jones believed was a mail carrier, and handed them a note indicating they would give $5,000 to the mail carrier in exchange for an arrow key.
From January to July 2021, Jones conspired with others to obtain funds fraudulently from banks by stealing mail and using stolen checks and bank cards to draw funds from bank accounts linked to the stolen items and using the identification of others to fraudulently obtain funds.
In addition to the prison term, Judge Wigenton sentenced Jones to three years of supervised release and ordered restitution of $6,361.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jihee G. Suh of the Special Prosecutions Division in Newark.
El Departamento de Justicia alcanza un hito importante en su Iniciativa para Combatir la Exclusión Financiera después de conseguir más de $107 millones en ayuda para comunidades de color por todo el paísRead the Press Release
El Departamento de Justicia anunció hoy que su Iniciativa para Combatir la Exclusión Financiera ha obtenido más de $107 millones de ayuda para comunidades de color por todo el país que han sido discriminadas por parte de bancos u otras empresas de préstamos hipotecarios. Como parte de los $107 millones, el Departamento también anunció un acuerdo de $9 millones con Ameris Bank para resolver las alegaciones de que Ameris incurrió en un patrón o una práctica de exclusión financiera en barrios predominantemente negros e hispanos en Jacksonville, Florida. La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios crediticios a individuos que viven en comunidades de color por motivos de la raza, el color de piel o el origen nacional de los residentes de esas comunidades.
“Como deja claro el caso de hoy, la exclusión financiera no es solo una reliquia del pasado”, comentó el Fiscal General Merrick B. Garland. “Por eso, este mes celebramos el segundo aniversario del lanzamiento por parte del Departamento de Justicia de la Iniciativa para Combatir la Exclusión Financiera y, una vez que se apruebe el acuerdo de hoy, esa Iniciativa habrá obtenido más de $100 millones para comunidades por todo el país que han sido perjudicadas por prácticas de préstamos discriminatorias. Este trabajo es solo el principio: el Departamento de Justicia actualmente tiene más de veinte investigaciones activas sobre la exclusión financiera que abarcan barrios por todo el país”.
En octubre del 2021, el Fiscal General Garland anunció la Iniciativa para Combatir la Exclusión Financiera, el esfuerzo de ejecución coordinado más agresivo del Departamento para abordar la exclusión financiera. El Departamento ha colaborado con Fiscalías Federales, agencias reguladoras financieras federales, incluida la Oficina para la Protección Financiera del Consumidor, y fiscales generales estatales para hacer cumplir las leyes federales de préstamos justos que prohíben la exclusión financiera, incluyendo la ley de Vivienda Justa y la ley de Igualdad de Oportunidades Crediticios. Desde el año 2021, el Departamento ha logrado 10 acuerdos conciliatorios con bancos e instituciones de préstamos hipotecarios para proporcionar oportunidades crediticios a comunidades de color en Houston, Memphis, Philadelphia, Camden, Wilmington, Newark, Los Angeles, Columbus, Tulsa, Rhode Island y ahora Jacksonville. Estos acuerdos han proporcionado millones de dólares a comunidades que han sido víctimas de la exclusión financiera y han ayudado a hacer que el sueño de ser propietario de una casa sea una realidad para las familias de color a las que se les ha denegado, de forma injusta, el acceso al crédito.
Acuerdo con Ameris Bank
La resolución con Ameris Bank se presentó hoy en el Tribunal Federal de Distrito para el Distrito Centro de Florida, junto con la queja del Departamento, y queda sujeta a la aprobación del tribunal. La queja del Departamento alega que, del 2016 hasta el 2021, Ameris Bank evitó la provisión de servicios hipotecarios en barrios de mayoría negra e hispana en Jacksonville y desalentaba a las personas que buscaban crédito en esas comunidades de obtener préstamos hipotecarios. Los préstamos hipotecarios de Ameris se centraron, de manera desproporcionada, en áreas blancas de Jacksonville, mientras que otros prestamistas generaron solicitudes en barrios de mayoría negra e hispana a un ritmo tres veces superior a Ameris. Aunque Ameris opera 18 sucursales en Jacksonville, Ameris nunca ha operado una sucursal en un barrio de mayoría negra e hispana en la ciudad.
Los barrios en los que el Departamento alega que Ameris practicó la exclusión financiera en Jacksonville son algunos de los mismos barrios que fueron víctimas de la exclusión financiera por primera vez en los mapas de la Home Ownership Loan Corporation [Corporación de Préstamos para Propietarios] en los años 1930.
“La lucha contra la exclusión financiera contemporánea es una de las estrategias más importantes para garantizar la igualdad de oportunidades económicas hoy en día”, comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Al enfrentarse a las prácticas discriminatorias de préstamos de bancos y compañías hipotecarias, estamos ayudando a asegurar que más comunidades negras, hispanas y otras comunidades de color puedan comprar una casa, generar riqueza y alcanzar el sueño americano. Este acuerdo marca una nueva cumbre en nuestros esfuerzos por poner fin a la exclusión financiera y proporciona un alivio tangible a las comunidades que han estado privadas de acceso al crédito durante demasiado tiempo”.
“Durante demasiado tiempo, la exclusión financiera ha tenido un impacto negativo en las comunidades de color por todo nuestro país”, dijo el Fiscal Federal Roger B. Handberg para el Distrito Centro de Florida. “El acuerdo de hoy con Ameris Bank representa el primer caso de exclusión financiera presentado por el Departamento de Justicia en el estado de Florida y señala un paso adelante para las comunidades negras e hispanas en Jacksonville a las que, durante generaciones, se les había denegado el acceso a recursos económicos. Este acuerdo significa que Ameris Bank proporcionará recursos financieros a las comunidades desatendidas de Jacksonville y demuestra nuestro compromiso de garantizar un acceso igualitario a la vivienda y los recursos crediticios para todos los estadounidenses”.
En virtud de la orden de consentimiento propuesta, que queda sujeta a la aprobación del tribunal, Ameris Bank invertirá $9 millones para aumentar las oportunidades crediticias para las comunidades de color en Jacksonville. En concreto, Ameris:
- Invertirá $7.5 millones en un fondo de subsidios para préstamos que se pondrá a disposición de los residentes de barrios de mayoría negra e hispana y de aquellos que buscan crédito en esas comunidades.
- Invertirá $900,000 en publicidad y proyección dirigidas a los residentes de estos barrios.
- Invertirá $600,000 para desarrollar asociaciones comunitarias para proporcionar servicios que aumenten el acceso al crédito hipotecario residencial.
- Abrirá una nueva sucursal en un barrio de mayoría negra e hispana en Jacksonville.
- Asegurará que al menos tres agentes de crédito hipotecario estén dedicados a servir a barrios de mayoría negra e hispana.
- Contratará a un asesor para que evalúe el sistema de gestión de cumplimiento del banco en lo que se refiere al riesgo de la exclusión financiera.
- Empleará a un Director de Préstamos Comunitarios a tiempo completo que supervisará el desarrollo continuo de préstamos en barrios de mayoría negra e hispana en Jacksonville.
Ameris está trabajando en cooperación con el Departamento para abordar las necesidades crediticias de los residentes de barrios de mayoría negra e hispana en Jacksonville. Más allá del acuerdo, Ameris se ha comprometido a expandir sus servicios crediticios en todos sus mercados a comunidades desatendidas.
Puede encontrar información adicional sobre la aplicación de las leyes de préstamos justos del Departamento en www.justice.gov/crt/fair-lending-program-0. Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1‑833‑591‑0291 o entregue un informe en línea.
Vea la queja aquí.
Vea la orden de consentimiento aquí.
Eight Indicted in Central Texas on Federal Drug and Gun ChargesRead the Press Release
WACO, Texas – A group of eight Texas men were indicted in Waco on criminal charges related to their alleged drug and gun activity.
Federal grand jury indictments charge Jeremiah Pittman, 21; Shamall McDonald, 21; Juan Christian Rodriguez-Luhan, 20; Raeshawn Demond Roberts, 21; Jacob Deshaun Raglin, 24; Javion Lavelle Cooper, 19; Tyson Charae Hawthorne, 21; and Dantawn Richardson, 20, with possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime.
Raglin was arrested in Arlington Tuesday, while the remaining defendants were arrested in Waco. Richardson was already in Waco Police custody on unrelated charges. During the arrests, law enforcement officers recovered four firearms, 13 ounces of methamphetamine and more than four pounds of marijuana.
If convicted, each of the eight defendants faces a maximum penalty of five years in prison for the marijuana charge and a mandatory minimum of five years in federal prison consecutive to any other prison term for the firearm charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
Members of the Texas Anti-Gang Taskforce, including the FBI, Department of Homeland Security Investigations (HSI), Waco Police Department, U.S. Marshals Service, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Texas Department of Public Safety (DPS), McLennan County Sherriff’s Department and McLennan County District Attorney’s Office are investigating the case.
Assistant U.S. Attorney Christopher Blanton is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. The Texas Anti-Gang Taskforce is a group of law enforcement agencies and prosecutors focused on reducing gang violence and dismantling gangs in the Central Texas area.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Drug kingpin gets 4 life sentencesRead the Press Release
TULSA, Okla. - A California drug kingpin gets life for directing a continuing criminal enterprise by organizing and directing at least three separate meth conspiracies in Oklahoma and Missouri, announced U.S. Attorney Clint Johnson.
U.S. District Judge John C. Coughenour sentenced Luis Alfredo Jacobo, 32, of Bakersfield, California, to four life sentences in federal prison, one each for a count of continuing criminal enterprise and three counts of drug conspiracy. Judge Coughenour further sentenced Jacobo to four years each on 21 counts of unlawful use of a communication facility. All sentences are to run concurrently.
“Luis Alfredo Jacobo led a drug enterprise responsible for bringing countless amounts of meth into the state of Oklahoma from California,” said U.S. Attorney Clint Johnson. “The life sentences handed down today should put those who pedal poison in our communities on notice. The U.S. Department of Justice together with our law enforcement partners are organized and will prosecute to the full extent of the law.”
“Drug trafficking affects countless lives, whether it’s in our Oklahoma neighborhoods or 1,500 miles away in California. It impacts the safety and security of all our lives,” said Eduardo A. Chavez, Special Agent in Charge of the DEA Dallas Field Division, that covers DEA operations in Oklahoma. “This sentence reflects our continued resolve to partner with all our law-enforcement counterparts to fight greed, violence, and drug addiction.”
“The weight of this successful investigation and prosecution cannot be overestimated. Luis Alfredo Jacobo is responsible for putting hundreds of pounds of meth onto the streets of Oklahoma. For nearly three decades, meth has remained one of the biggest drug threats impacting Oklahoma, including links to violent crime, theft, addiction and more than 700 overdose deaths in 2022, alone. My agency is committed to continue working with our federal partners to target and dismantle these criminal trafficking organizations who put the health and safety of our citizens at risk.” ----Oklahoma Bureau of Narcotics Director, Donnie Anderson
Using his Mexican sources of supply and Bakersfield, California, as a base of operations, Jacobo managed, supervised, and organized more than a dozen individuals in California, Northeast Oklahoma, and Southwest Missouri in an enterprise that spanned over five years and involved at least three drug conspiracies operating in and around the Northern District of Oklahoma.
Through countless communications between the conspirators, Jacobo set prices, determined methods of delivery and payment, and approved any suggestions made about the groups’ operations.
From May 2016 to Sept. 2021, Jacobo received bulk shipments of meth to his home base in Bakersfield, California. From there, Jacobo directed that the meth be sent via U.S. mail or driven in vehicles to the groups in Oklahoma and Missouri, sometimes in quantities of up to 200 pounds at a time. Coconspirators would drive large amounts of cash back to California, send money through money remitters, or mail cash payments back to Jacobo and to others at Jacobo’s direction. The coconspirators sometimes mailed as much as $100,000 cash at a time from Oklahoma to California.
The three conspiracies were run by Jacobo’s regional managers in northeastern Oklahoma. The managers employed, with Jacobo’s knowledge, distributors and sub distributors to help sell Jacobo’s drugs. Jacobo even met and gave direction to many of the distributors and sub distributors.
From May 2016 to Dec. 2018, one drug conspiracy operated in Bakersfield and later in and around Grove, Oklahoma. A second drug conspiracy also worked out of Grove from Sept. 2018 to Aug. 2019. Finally, a third drug conspiracy operated from Sept. 2018 to March 2021 in and around Grove and southwestern Missouri.
During trial, federal prosecutors presented evidence that included numerous communications and countless money exchanges related to the conspiracies as well as evidence collected when law enforcement executed search warrants.
For example, on Oct. 12, 2020, agents and officers with the Oklahoma Bureau of Narcotics and Dangerous Drugs and Grove Police Department opened a storage unit in Grove and discovered 231 pounds of methamphetamine and more than $465,000 in U.S. currency. The storage unit was rented for defendant Johnson to store meth for redistribution. That same weekend in 2020, law enforcement also executed search warrants on houses in Grove where codefendants stored drugs and drug proceeds.
Three days after the 231 pounds of meth was located, officers arrested codefendant Tony Garcia driving in Oklahoma City with 30 pounds of meth and a loaded 9 mm handgun. Text messages in Garcia’s phone show that he received instructions from Jacobo just prior to the trip about where and when to distribute the meth to Johnson and others in Oklahoma.
During the trial the government highlighted the sheer number of Jacobo’s coconspirators who testified against Jacobo and repeated many of the same details about how Jacobo’s extensive drug business operated, including that Jacobo directed members of his organization to send cars packed full of meth to Northeast Oklahoma and cars packed full of money back to him in Bakersfield.
Jacobo’s conviction resulted from the Organized Crime Drug Enforcement Task Force Operation “Pullin Chains,” led by the U.S. Attorney’s Office and the Drug Enforcement Administration. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage
Jacobo will remain in the custody of the Federal Marshal Service pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, Oklahoma Bureau of Narcotics and Dangerous Drugs, Bureau of Indian Affairs, City of Miami Police Department, Grove Police Department, Quapaw Tribal Marshals Service, Bakersfield Police Department, Kern County Sheriff’s Office, the United States Postal Inspection Service, and the Oklahoma District 13 Drug and Violent Crime Task Force conducted the investigation.
Assistant U.S. Attorneys Thomas E. Duncombe, Nathan E. Michel, and Melody N. Nelson prosecuted the case.
Drug Trafficker Sentenced for Cocaine TraffickingRead the Press Release
BOSTON – A drug trafficker operating in the Boston area was sentenced yesterday for his role in a cocaine trafficking conspiracy.
Maurice Coates, 46, of Randolph, was sentenced by U.S. District Court Judge Richard G. Stearns to eight years in prison to be followed by four years of supervised release. On April 18, 2023, Coats pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine.In June 2020, Coates was charged along with 23 others as part of Operation Snowfall. According to the charging documents, beginning in November 2018, law enforcement conducted an investigation into drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown. Coates is the 16th defendant to plead guilty in that case.Coates was identified as a significant drug supplier and distributor within the drug conspiracy, during which it is estimated he distributed over 500 grams of cocaine. During intercepted calls with co-defendant Kenji Drayton, Coates used drug-coded language to discuss their drug supply needs and to coordinate drug deal meetups. Coates was one of Drayton’s main cocaine suppliers, including during the pandemic. At times, Drayton and Coates’s coded communications were corroborated by surveillance, including a surveilled meetup between Coates and Drayton for a suspected drug deal. After their suspected deal, law enforcement intercepted communications of co-defendants Drayton and Jarmina Kallon coordinating a meeting. Following their meeting, law enforcement stopped Kallon and recovered approximately 62 grams of cocaine.
One remaining defendant in the case has pleaded not guilty and is pending trial. Another defendant, Derek Hart, remains at large. On Sept. 28, 2022, Drayton was sentenced to five years in prison and four years of supervised release.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Brian Kyes, U.S. Marshal for the District of Massachusetts; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; and Boston Police Commissioner Michael Cox made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Drug Trafficker Found Guilty of Conspiracy and Attempted Possession of MethamphetamineRead the Press Release
HONOLULU – After a four-day jury trial before Senior United States District Judge Susan Oki Mollway, a federal jury yesterday found Luis Miguel Castro Alavez, 31, of Mexico, guilty of conspiracy and attempted possession with intent to distribute 500 grams or more of methamphetamine. Sentencing is scheduled for February 7, 2024.
According to the evidence presented at trial, during at least June 15, 2023 to June 28, 2023, Castro Alavez conspired with persons in Hawaii, California, and Mexico to distribute methamphetamine in Hawaii. Castro Alavez flew from California to Hilo, stayed in a vacation rental, and waited for a shipment of methamphetamine to arrive in the mail from his co-conspirators in California. On June 28, the landlord of the vacation rental, upon partially opening the parcel after its arrival, discovered suspected drugs and contacted Hawaii County Police, who arrested Castro Alavez later that day. Prior to the arrival of the parcel, Castro Alavez wired payments from Hilo to his co-conspirators in Mexico and mailed cash packed into chocolate boxes to his co-conspirators in California.
Both counts carry a mandatory minimum sentence of ten years and a maximum of life in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
This conviction is the result of an investigation conducted by Homeland Security Investigations and the Hawaii County Police Department. Assistant U.S.
Attorneys Michael F. Albanese and Gregg Paris Yates prosecuted the case.
Dallas brothers sentenced for fraud scheme in the Eastern District of TexasRead the Press Release
PLANO, Texas – Two Dallas brothers have been sentenced for federal violations related to a fraud scheme in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Thomas Hughes Page, 47 and Jon Phillip Page, Jr., 55, were convicted at trial of conspiracy to commit bank fraud and conspiracy to commit money laundering and sentenced on Oct. 18, 2023, by U.S. District Judge Sean D. Jordan. Thomas Page was sentenced to 71 months in federal prison and Phillip Page was sentenced to 63 months in federal prison. The defendants were ordered to pay restitution of $3.2 million.
According to information presented at trial, between 2010 and 2017, the defendants used their company, Page Capital Group, to obtain multiple loans from PlainsCapital Bank (PCB), representing that the loans would be secured by a brokerage account worth at least $2 million. However, neither Thomas Page nor Phillip Page had access to such funds, as the brokerage account was never actually funded. Thomas Page and Phillip Page directed and paid a third individual, Clayton Wertz, to create and submit to PCB fraudulent brokerage statements for the brokerage account reflecting significant value. Once Thomas Page and Phillip Page received the money from PCB, they used the funds on various business and personal expenses. In addition, Thomas Page and Phillip Page took affirmative steps, such as providing occasional payments on the loan, to conceal and disguise their activity. As a result of the fraudulent conduct, the bank loaned Page Capital approximately $3.6 million and eventually lost approximately $3.25 million over the course of the scheme.
“The U.S. Attorney’s Office takes bank fraud seriously,” said U.S. Attorney Damien M. Diggs. “This type of crime can affect the security and soundness of FDIC-insured banks, and we all pay the price when banks lose money due to fraud. Along with the FBI, this office will investigate and prosecute bank fraud and related crimes to protect the financial system and prevent losses to our banking institutions.”
“Financial Institution Fraud is not a victimless crime. It hurts lending institutions and negatively impacts borrowers who are seeking genuine loans for their businesses,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “The defendants used their ill-gotten gains for their personal benefit without regard for the consequences. Today’s sentence demonstrates that the FBI will pursue anyone that attempts to defraud financial institutions, investors, or the public.”
This case was investigated by the FBI – Frisco Resident Agency and prosecuted by Assistant U.S. Attorneys in the Plano office.
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Columbia Sex Offender Sentenced for ObscenityRead the Press Release
JEFFERSON CITY, Mo. – A Columbia, Mo., man has been sentenced in federal court for uploading an obscene bestiality video to his online Google account.
Brian Joe Gravatt, 48, was sentenced by U.S. District Judge Brian C. Wimes on Wednesday, Oct. 18, to five years in federal prison without parole.
Gravatt was required to register as a sex offender due to his prior convictions of statutory rape and statutory sodomy against 14- and 15-year-old victims He was on probation at the time of this offense for failing to register as a sex offender.
On April 4, 2023, Gravatt pleaded guilty to one count of transporting obscene material. Gravatt admitted that on Oct. 28, 2020, he uploaded a 33-minute video to his Google Photos account that depicts an adult woman performing a series of graphic sex acts with a large dog. Gravatt acknowledged the video is intended to appeal to prurient interests and that, judged by contemporary, adult, community standards of the community, depicts sex acts in a patently offensive way and lacks serious literary, artistic, political, and scientific value.
The video was discovered by law enforcement while investigating a CyberTip from the National Center for Missing and Exploited Children regarding a complaint of suspected child pornography stored in Gravatt’s Google Photos account.
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.
Child Pornography Distributor Sentenced to 24 Years in PrisonRead the Press Release
TUCSON, Ariz. – Jeremy Carson Lamb, 39, of Mesa, was sentenced last week by United States District Judge Jennifer G. Zipps to 288 months in prison, for attempted production of sex abuse material. Lamb pleaded guilty on June 13, 2023, to one count of Attempted Production of Child Pornography.
In late 2019, Lamb traveled from Phoenix to Sierra Vista to meet and engage in sexual conduct with a person he believed to be a 14-year-old minor and had attempted to obtain sexually explicit images of the minor. Lamb was found with a large quantity of videos and images depicting children as young as one-year-old being sexually abused. The investigation confirmed that Lamb had distributed many child exploitation files to others. When Lamb is released from prison, he will be on supervised release for the remainder of his life and will be required to register as a sex offender.
“This defendant has no respect for laws and boundaries,” said United States Attorney Gary Restaino. “When an undercover law enforcement officer posted an online profile pretending to be a young girl, the defendant engaged in a two-week effort to entice, induce, and lure. We appreciate the investigative efforts by Homeland Security Investigations to protect the community from defendant.”
“Predatory behavior will not be tolerated by HSI,” said Scott Brown, Special Agent in Charge for HSI Arizona. “The defendant in this case will spend the next 24 years in prison giving him ample opportunity to think about his actions. Let this case demonstrate HSI’s unwavering commitment to protect children and apprehend predators to then face justice.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Homeland Security Investigations (HSI), Douglas, Arizona, conducted the investigation in this case. Assistant U.S. Attorney Carin C. Duryee, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR 19-3408-TUC-JGZ
RELEASE NUMBER: 2023-156_Lamb# # #
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.Carmichael Man Indicted for Sexual Exploitation of a Minor and Child Pornography OffensesRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Sam Moss Kerfoot, 27, of Carmichael, charging him with sexual exploitation of a minor, distribution of child pornography, and possession of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in April and May 2022, Kerfoot sexually abused a minor and produced visual depictions of the minor engaged in sexually explicit conduct. In addition, Kerfoot is alleged to have distributed child pornography in April 2022 and possessed child pornography in June 2023.
This case is the product of an investigation by the Sacramento Valley Hi-Tech Crimes Task Force Internet Crimes Against Children unit including the Sacramento County Sheriff’s Office, with assistance from the Federal Bureau of Investigation and Homeland Security Investigations. Assistant U.S. Attorneys Emily Sauvageau and Alstyn Bennett are prosecuting the case.
If convicted of the charges as alleged, Kerfoot faces a minimum statutory penalty of 25 years in prison, a maximum of 50 years in prison, and a $250,000 fine for sexual exploitation of a minor; a minimum statutory penalty of 15 years in prison, a maximum of 40 years in prison, and a $250,000 fine for distribution of child pornography; and a minimum of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine for possession of child pornography. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
California Man Fined $50,000 for Illegally Importing Carvings Made from Sperm Whale Teeth and a Walrus TuskRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Pedro Huertas, 69, of Pasadena, California, pleaded guilty to a misdemeanor charge of unlawfully importing wildlife parts (carvings from sperm whale teeth and a walrus tusk). On October 17, 2023, Chief Judge Geoffrey Crawford accepted the plea agreement and sentenced Huertas to a criminal penalty of $50,000 and no term of imprisonment. The Court also ordered the forfeiture of the four ivory carvings involved in the offense. This Lacey Act offense is punishable with up to a $100,000 fine and one year of imprisonment.
According to court documents, on July 25, 2021, Huertas arrived at the Highgate Springs, Vermont Port-of-Entry with his wife after purchasing nine Inuit carvings from an art gallery in Montreal, Quebec. When asked by the U.S. Customs and Border Protection (CBP) Officer what he was bringing back from Quebec, Huertas replied “one stone statue.” After inspecting the trunk of Huertas’ vehicle, the CBP Officer discovered nine statues, four of which were made of ivory. Huertas admitted that they were made from walrus tusk. The CBP seized these four carvings and released Huertas. Huertas resided in Cambridge, Massachusetts at this time.
The U.S. Fish and Wildlife Service later determined that three of the carvings were made of sperm whale teeth. These carvings are called “Tupilaks.” In Inuit mythology Tupilaks are considered a physical representation of supernatural spirits. The three seized Tupilaks are depicted below:
The U.S. Fish and Wildlife confirmed that the fourth statue, called “Kayakers,” was made of a walrus tusk. This carving is depicted below:
Sperm whales are an endangered species and are protected under the Endangered Species Act, Marine Mammal Protection Act (MMPA), and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Walrus, while not an endangered species, is still a protected species under the MMPA and CITES. In order to import parts from these protected mammals into the United States, Huertas was required to obtain certain import and export permits. Huertas did not apply or obtain any such permits.
U.S. Attorney Nikolas Kerest praised the investigative work of the U.S. Fish and Wildlife Service and the United States Customs and Border Protection. U.S. Attorney Kerest also emphasized the importance of vigorously enforcing federal wildlife laws in order to reduce the illegal trade in the parts of protected wildlife species.
This matter was investigated by the U.S. Fish and Wildlife Service and the United States Customs and Border Protection. The United States is represented by Assistant U.S. Attorney Joseph Perella. Pedro Huertas is represented by Mark Kaplan, Esq. of Burlington, Vermont.
Brothers Admit to Conspiracy to Traffic Firearms They Believed Were Bound for MexicoRead the Press Release
NEWS RELEASE SUMMARY – October 19, 2023
SAN DIEGO – Homero Cervantes Rosales and Mauricio Cervantes Rosales – brothers from Perris, California - pleaded guilty in federal court today to conspiring to traffic firearms they believed were bound for Mexico and dealing firearms without a license.
They entered their guilty pleas before U.S. Magistrate Judge Karen S. Crawford. The defendants admitted that they and others exchanged marijuana with co-conspirators in Texas for firearms, which they sold to individuals they believed were drug traffickers. The defendants also used other sources to obtain firearms for the conspiracy.
According to the plea agreements, from February through April of this year, Homero and Mauricio Cervantes Rosales sold more than 30 firearms, including many Privately Made Firearms, also known as ghost guns; short-barrel rifles; silencers; and machine guns, for an estimated value of $60,000, to a cooperating individual and undercover agents who were posing as international drug traffickers. During one sale, Homero Cervantes Rosales said that with advance notice, he could get any kind of firearms or ammunition. According to plea agreements, undercover agents told the defendants the “firearms were destined for Mexico.”
“Trafficking guns into Mexico arms criminal organizations which then funnel drugs back into the United States,” said U.S. Attorney Tara K. McGrath. “In this case, ATF was able to seize an arsenal. And, without their intervention those guns would have put lives at risk on both sides of the border.”
“This is an excellent example of the use of new criminal firearms trafficking offense, 18 U.S.C. § 933,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge of Los Angeles Field Division Christopher Bombardiere. “Firearms traffickers are responsible for the violence committed with those guns. As a society we have to make firearms trafficking as socially reprehensible as the crimes committed with those guns. These defendants were well aware these guns were destined for Mexico but kept making the firearm sales.”
This case is being prosecuted by Assistant U.S. Attorney Matthew Brehm.
DEFENDANTS Case Number 23cr0956-JO
Homero Cervantes Rosales Age: 38 Perris, CA
Mauricio Cervantes Rosales Age: 28 Perris, CA
SUMMARY OF CHARGES
Conspiracy to Traffic Firearms – Title 18, U.S.C., Section 933(a)
Maximum penalty: Fifteen years in prison and $250,000 fine
Dealing Firearms Without a License - Title 18, U.S.C., Section 922(a)(1)(A)
Maximum penalty: Five years in prison and $250,000 fine
AGENCY
Bureau of Alcohol, Tobacco, Firearms and Explosives
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Bronx Man Pleads Guilty to Distribution of Fentanyl in Connection with Death of 19-Year-Old Victim and Sex Trafficking of A MinorRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that VIRGIL WARDLOW pled guilty today to one count of distributing fentanyl. In connection with his guilty plea, WARDLOW stipulated that he paid for commercial sex with a minor using fentanyl-laced pills that caused the death of a 19-year-old victim. WARDLOW pled guilty before U.S. District Judge Mary Kay Vyskocil and is scheduled to be sentenced on March 13, 2024.
U.S. Attorney Damian Williams said: “The consequences of the defendant’s conduct are heart-wrenching: The defendant paid for sex with a 16-year-old victim using fentanyl-laced pills, which the victim’s 19-year-old friend then ingested, poisoning her and causing her death. Today’s guilty plea demonstrates that this Office will seek justice for families facing the horrific tragedy of losing a loved one to fentanyl poisoning and for victims of child sexual exploitation.”
According to court filings and statements made in court proceedings:
WARDLOW engaged in a pattern of paying for commercial sex with black market pills that contained fentanyl. On or about March 25, 2023, at a hotel room in the Bronx, New York, WARDLOW provided two of those pills to a 16-year-old female (“Victim-1”) in exchange for sex with Victim-1. After Victim-1 had sex with WARDLOW and WARDLOW left the hotel room, Victim-1 and her 19-year-old female friend (“Victim-2”) ingested the pills provided by WARDLOW. Thereafter, Victim-1 became ill, and Victim-2 became unconscious and died of a drug poisoning.
Between at least on or about February 8, 2023, and on or about April 7, 2023, WARDLOW exchanged several messages with other individuals in which WARDLOW offered to provide pills in exchange for sex or money. WARDLOW sent these messages using an anonymized cellphone number that masked his identity from his intended victims.
* * *
WARDLOW, 31, of the Bronx, New York, pled guilty to distribution and possession with intent to distribute mixtures and substances containing a detectable amount of fentanyl and oxycodone, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the New York State Police, the New York City Police Department, and Special Agents from the U.S. Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s General Crimes Unit and Narcotics Unit. Assistant U.S. Attorney Jeffrey W. Coyle is in charge of the prosecution.
Baton Rouge Man Pleads Guilty in Federal Court to Drug and Gun ChargesRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Mitchell Robinson, Jr., age 33, of Baton Rouge, Louisiana, pled guilty before U.S. Chief Judge Shelly D. Dick to possession with intent to distribute 50 grams or more of methamphetamine, 40 grams or more of fentanyl, heroin, and tramadol, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon.
According to admissions made during his plea, on May 11, 2022, EBRSO deputies executed a “knock” search warrant at Robinson’s residence in Baton Rouge, Louisiana. In the kitchen, deputies found 2.17 grams of fentanyl, 218.3 grams of methamphetamine, 22.89 grams of methamphetamine, 56 suboxone 8mg/2mg prescription strips, manitol (narcotics cutting agent), 390 tramadol pills, a digital scale, a Glock, model 17, 9mm handgun modified to be fully automatic, a Glock style 9mm handgun, a Glock style 30 round magazine, 9mm ammunition, and 4.01 pounds of marijuana. In the attic, deputies found 884.1 grams of methamphetamine, 439.7 grams of methamphetamine, 194.46 grams of fentanyl, 3.12 pounds of marijuana, $25,960.00, and 55.59 grams of heroin.
Prior to Robinson’s possession of the Glock, model 17, 9mm handgun, he had been convicted of simple burglary and carnal knowledge of a juvenile in September 2010 in East Baton Rouge Parish, and burglary of a dwelling and aggravated burglary in January 2011 in Ascension Parish.
This matter was investigated by the Drug Enforcement Administration and East Baton Rouge Parish Sheriff’s Office and is being prosecuted by Assistant United States Attorney Jeremy S. Johnson.
Attorney General Merrick B. Garland Delivers Remarks at the U.S. Attorney's Office for the Southern District of FloridaRead the Press Release
Remarks as Prepared for Delivery
Good afternoon. In just a few minutes, U.S. Attorney Lapointe and I will meet with the law enforcement officers gathered around this table.
I am grateful to each of them for being here, and look forward to our discussion.
At the top of our agenda will be our shared efforts to help keep our communities safe from violent crime.
As always, but especially right now, that includes remaining vigilant in the face of the potential threats of hate-fueled violence and terrorism.
Hamas's terrorist attacks on Israel have created understandable fear among communities across the country.
As the FBI has noted, we are seeing an increase in reported threats against faith communities, particularly Jewish, Muslim, and Arab communities and institutions.
Last week, I directed all 94 of our U.S. Attorneys' Offices and the FBI to be in close touch with our federal, state, and local law enforcement partners in their districts.
Yesterday I met with, and today and tomorrow I will continue to meet with, our U.S. Attorneys and federal, state, and local law enforcement officials here in Florida.
I have also directed our U.S. Attorneys to reach out to religious and other community leaders in their districts to reaffirm our commitment to them and assess what additional support they may need.
Our partnerships with federal, state, and local law enforcement, and with the communities they serve, are at the center of our efforts to keep our country and our communities safe.
That strategy also guides our work to attack every aspect of the trafficking of fentanyl, the deadliest drug threat our country has ever faced.
Earlier this month, we announced charges in the Southern and Middle Districts of Florida against eight chemical companies based in China, and 12 of their executives for crimes related to the production, distribution, and importation of fentanyl, other synthetic opioids, methamphetamines, and their precursor chemicals.
That same day, the Treasury Department imposed sanctions on a set of individuals and entities involved in fentanyl trafficking. That included all of the China-based companies charged here in the Southern District of Florida.
That case is just one example of how we are going after every link in the cartel-driven fentanyl trafficking networks. That includes the cartels' chemical suppliers often based in China, their clandestine lab operators, their security forces, their weapons suppliers, their drug traffickers, and their money launderers.
It also includes the cartels' leaders. Last month, we extradited Ovidio Guzman Lopez, a leader of the Sinaloa Cartel and one of EI Chapo's sons, from Mexico to the United States.
I am proud of the work the extraordinary public servants of this office are doing every single day on multiple fronts - from violent crime, drug trafficking, and human smuggling to hate crimes and the threat of foreign and foreign-incited terrorism acts.
Every day, the dedicated men and women of this Office work to fulfill our mission: to uphold the rule of law, to keep our country safe, and to protect civil rights.
But we cannot do that work without the law enforcement partners in this room today. The entire Department is grateful for that partnership.
I am grateful for that partnership.
We are now going to begin our meeting.
Arrest Made in Central California Bio-Lab InvestigationRead the Press Release
FRESNO, Calif. — Jia Bei Zhu, aka Jesse Zhu, aka Qiang He, aka David He, 62, a citizen of China who formerly resided in Clovis, was arrested today on a criminal complaint for manufacturing and distributing misbranded medical devices in violation of the federal Food, Drug, and Cosmetic Act (FDCA) and for making false statements to the Food and Drug Administration (FDA), U.S. Attorney Phillip A. Talbert announced.
“As part of his scheme, the defendant changed his name, the names of his companies, and their locations,” U.S. Attorney Talbert said. “The disarray at the Reedley lab led to the glare of publicity he was trying to avoid, and the ensuing investigation unraveled his efforts to circumvent the requirements that are designed to ensure that medical devices are safe and effective.”
“Providing materially false information to FDA inspectors regarding medical device manufacturing and distribution impedes the agency’s ability to protect public health, especially when those false statements relate to unauthorized and misbranded COVID-19 tests. Consumers who unknowingly use these misbranded COVID tests run the risk of incorrect results about their COVID status, which can lead to further spread of the virus,” said Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations Los Angeles Field Office. “We will continue to investigate and bring to justice those who jeopardize the health of U.S. consumers.”
According to court documents, between December 2020 and March 2023, Zhu and others manufactured, imported, sold, and distributed hundreds of thousands of COVID-19 test kits, in addition to test kits for HIV, pregnancy, clinical urinalysis, and other conditions in the United States and China. They did so through the companies Universal Meditech Incorporated (UMI) and Prestige Biotech Incorporated (PBI), which were based in Fresno and Reedley. UMI and PBI did not obtain the required authorizations to manufacture and distribute the test kits and mislabeled some of the test kits. When questioned by FDA officials, Zhu made false statements about his identity, his ownership and control of UMI and PBI, and the activities of UMI and PBI.
According to the criminal complaint, Reedley Code Enforcement officials received a complaint regarding a warehouse in Reedley for using non-permitted plumbing that was visible from outside the warehouse. When code enforcement officials went to the warehouse the next day, they saw various types of in vitro diagnostic test kits, related manufacturing equipment, and shipping supplies.
Further investigation found that UMI first registered as a medical device manufacturer with the FDA in November 2015 in Tulare and moved to Fresno in 2018. FDA records show that its registration lapsed in 2022, and it is no longer permitted to manufacture or import any in vitro diagnostic test kits in the United States. Any test kits that the company manufactured or imported after that date are considered misbranded medical devices.
To manufacture, import, and distribute COVID-19 test kits in the United States during the pandemic, a company must have applied for, and ultimately received, an Emergency Use Authorization (EUA) from the FDA. According to FDA records, UMI applied for an EUA for its COVID-19 test kits, but never received it due to major deficiencies in UMI’s test studies.
In November 2022, Fresno County officials notified UMI that they were going to inspect UMI’s Fresno facility to ensure everything was up to code following a fire that occurred at the facility. FDA officials then received an email from UMI’s attorney saying that the company had gone out of business and sold its assets to PBI, a company that was formed in Las Vegas, Nevada. PBI was never registered with the FDA to manufacture or import any in vitro diagnostic test kits in the United States, and never received an EUA to manufacture and distribute COVID-19 test kits. Therefore, any such test kits would be misbranded medical devices.
According to the criminal complaint, during the investigation, Zhu made several false statements to FDA officials, including that his name was Qiang “David” He; that he was hired by UMI as a COVID-19 consultant in 2021; that he was hired by PBI just a couple of weeks ago to communicate with government agencies and dispose of property at the warehouse as requested by those agencies; that he did not know anything about the manufacturing or distribution histories for UMI or PBI; and that he knew nothing about an Amazon webpage showing PBI‑branded pregnancy test kits for sale or a shipment of 47,500 pregnancy test kits from China to UMI at an address in Las Vegas.
This case is the product of an investigation by the FDA Office of Criminal Investigations, with assistance from the Federal Bureau of Investigation and the California Department of Public Health – Food and Drug Branch. Assistant U.S. Attorneys Joseph D. Barton, Arelis M. Clemente, and Henry Z. Carbajal III are prosecuting this case.
If convicted, Zhu faces a maximum statutory penalty of three years in prison for the misbranding of medical devices charge, and five more years in prison for the false statements charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
zhu_criminal_complaint.pdf
Wednesday 18 October 2023
Xavier Zamora Sentenced to 22 Years in Prison for the 2019 Murder of U.S. Letter CarrierRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Dominique Giroux, Acting Inspector in Charge of the Phoenix Division of the U.S. Postal Inspection Service, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced today that Xavier Zamora was sentenced to 22 years in prison for the murder of U.S. Postal Service Letter Carrier José Hernandez in 2019. Zamora, 21, of Albuquerque, pled guilty on June 8, 2022, to second degree murder of an employee of the United States and using a firearm during a crime of violence resulting in death.
According to court records, on April 22, 2019, Hernandez was delivering mail to a community mailbox on Terracotta Place SW in Albuquerque when he was caught up in a dispute between Zamora and his mother outside her home. The quarrel between mother and son escalated and, when Hernandez attempted to intervene, Zamora became belligerent and attempted to instigate a fight with Hernandez, striking him and pushing him down before running back to the house when Hernandez advanced towards him. Inside the house, Zamora retrieved a handgun from the home and returned outside where he followed Hernandez back to his postal unit. When Hernandez turned to face Zamora, Zamora shot Hernandez in the stomach from a distance, and Hernandez collapsed near his vehicle. Zamora then retreated back to the house before fleeing through the backyard.
Neighbors quickly moved to render aid to Hernandez while first responders from the Albuquerque Police Department, who were unaware Zamora had fled, did their best to assist and protect bystanders from the imminent threat of gunfire from inside the home. Despite the heroic efforts of civilians, law enforcement officers and emergency personnel, Hernandez died from extensive internal bleeding 20 minutes after being shot by Zamora.
Police found Zamora hiding out a few days later in a home about five minutes from where Hernandez was shot. The firearm used in the murder has never been located.
Hernandez was a husband, a father of four, a son, and a United States Army combat veteran who served his country honorably and sought to live his life as a positive member of the community. Other Letter Carriers described Hernandez as someone with an outgoing personality, who liked to joke, had a loud laugh, one who did not talk negatively about others, and who loved to listen to music. In his public life, he was known as a Disk Jockey (“DJ”); a Hot Wheels, Avengers and DC Comic collector; and a superhero movie and Star Wars fan. In his private life, Hernandez believed in the sanctity of family, and the respect one must show to others. On his phone, he kept pictures of his family and friends, and Church of Jesus Christ of Latter-day Saints resource materials to support his personal and family scripture studies.
“José Hernandez died protecting someone he did not know because he believed that every member of our community deserves to live in safety,” said U.S. Attorney Alexander Uballez. “Today, we pay homage to his sacrifice, and the daily service of our Postal Carriers. In honor of José, we will know no strangers, we will tolerate no bullies, and we will work together to bring safety to our community.”
“U.S. Postal Service letter carriers are public servants, bringing American citizens their mail each day,” said Acting Inspector in Charge Dominique Giroux. “With violent crime increasing across the country, rest assured the U.S. Postal Inspection Service remains committed to investigating and bringing to justice every person who harms our employees. This significant sentence takes violent offender Xavier Zamora off the street and hopefully provides some peace to the Hernandez family. We are grateful to the U.S. Attorney’s Office and our local, state, and federal law enforcement partners who assisted on this case.”
"Far too many of us have felt this loss within our agencies," said FBI Albuquerque Special Agent in Charge Raul Bujanda. “The impact and pain extend beyond the agency and the family; it extends to the community. Even more so when the individual is part of the fabric of the nation making a difference in every community across this country. On behalf of the Hernandez family and others suffering from the loss of a family member to violent crime, the FBI will continue to work in partnership with local, state, tribal and federal partners to ensure offenders like Xavier Zamora are brought to justice.”
The U.S. Postal Inspection Service investigated this case with assistance from the FBI Albuquerque Field Office, Albuquerque Police Department and New Mexico State Police. Assistant United States Attorneys Niki Tapia-Brito and Eva M. Fontanez are prosecuting the case.
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Winter Garden Man Sentenced to 40 Years in Federal Prison for Production and Receipt of Child Sex Abuse MaterialRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Michael Remaley (22, Winter Garden) to 40 years in federal prison for the production and receipt of child sex abuse material. Remaley had pleaded guilty on July 18, 2023.
According to court documents, over the course of a two-week span, Remaley used the application Snapchat to entice a 14-year-old girl to send him sexually explicit videos of herself. Remaley also shared with a second Snapchat user several media files depicting child sex abuse material, including a video of a female child between the ages of five and eight years old being sexually abused.
“Removing predators like Remaley from society and away from victimizing young children will always be a focus of our HSI special agents,” said HSI Orlando Assistant Special Agent in Charge David Pezzutti. “This significant sentence is a testament to our partnership with the U.S. Attorney’s Office for the Middle District of Florida. Together, we’ll continue to protect our most vulnerable from becoming lifetime victims.”
This case was investigated by Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Stephanie A. McNeff.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
VIP Healthcare Solutions, Inc. and Two Company Officials Plead GuiltyRead the Press Release
SAN JUAN, Puerto Rico – Ivelisse Rivera-Padilla, Carla Carrillo-Torres, and VIP Healthcare Solutions, Inc. (“VIP Healthcare”) pleaded guilty before United States District Court Chief Judge Raul M. Arias Marxuach.
VIP Healthcare pleaded guilty to making a false statement in connection with a Paycheck Protection Program (“PPP”) loan application, in violation of 18 U.S.C. § 1014. As admitted in Court by VIP Healthcare’s secretary, Carla Carrillo-Torres, the company falsely certified the accuracy of their April 7, 2020, PPP loan application for $249,755.35 and failed to identify additional owners of VIP Healthcare that owned more than 20% of the company.
Carla Carrillo-Torres separately pleaded guilty to violating 15 U.S.C. § 645(c) and admitted to submitting the fraudulent PPP loan application on behalf of VIP Healthcare. Additionally, Carla Carrillo-Torres admitted to answering “no” when required to disclose if any owner of VIP Healthcare was presently involved in any bankruptcy proceeding. At the time, Carla Carrillo-Torres knew that her partner, Ivelisse Rivera-Padilla, owned more than 20% of VIP Healthcare and was involved in a Chapter 13 Bankruptcy proceeding. The pending bankruptcy would have precluded VIP Healthcare from obtaining the PPP loan if disclosed to the United States Small Business Administration.
Ivelisse Rivera-Padilla, the President of VIP Healthcare and a licensed attorney, pleaded guilty to 14 counts of bankruptcy fraud for making materially false representations in violation of 18 U.S.C. § 157.
Ivelisse Rivera-Padilla concealed property and income and failed to disclose all of the bankruptcy estate during the course of her bankruptcy proceedings, including, but not limited to, the creation, operation, ownership, and control of VIP Healthcare, which operated the “Job Andujar” Diagnostic and Treatment Center in the Municipality of Cataño until approximately March 25, 2023.
Ivelisse Rivera-Padilla also concealed the purchase of an apartment located at Condominium Golf & Playa, Cabo Rojo, Puerto Rico, for $270,000, and a 2,159.5152 square-meter plot of land located at Rainforest and Sea View Resort in Luquillo, Puerto Rico, for $275,000. Rivera-Padilla further concealed her interest in another corporate entity known as Farmacia Libertad, as well as income from a rental property business through AirBnB.
The defendants are scheduled to be sentenced on January 17, 2024. Both Carla Carrillo-Torres and Ivelisse Rivera-Padilla have agreed to forfeit any interest in the two concealed properties as a part of their plea agreement, in additional to the sentence to be imposed by United States District Court Chief Judge Raul M. Arias Marxuach.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico; Mary Ida Townson, U.S. Trustee for Georgia, Florida, Puerto Rico, and the Virgin Islands (Region 21); and Joseph González, Special Agent in Charge of the FBI San Juan Field Office made the announcement.
The Federal Bureau of Investigation and the United States Trustee Program are investigating the case.
Special Assistant U.S. Attorney José Capó Iriarte and Special Assistant U.S. Attorney José C. Díaz Vega from the Office of the U.S. Trustee are prosecuting the case.
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United States Issues Advisory to Industry on Iran Ballistic Missile ProcurementRead the Press Release
The Departments of Justice, Commerce, State and Treasury today issued an advisory to alert the international community, private sector and public to the threat posed by Iran’s ballistic missile procurement activities.
The advisory informs private industry of deceptive practices used by Iranian ballistic missile procurement networks, Iran’s ballistic missile-related activities, key goods sought by Iran’s missile program and relevant U.S. sanctions and export control authorities. In addition, the advisory provides and overview on minimizing sanctions and export control risk, including discussion of enforcement efforts by the Justice Department and other agencies.
Today’s announcement complements ongoing work by the Justice Department, including its the Disruptive Technology Strike Force. The Justice Department and Commerce Department’s Bureau of Industry and Security (BIS) in February created the Disruptive Technology Strike Force, an interagency effort focused on investigating and prosecuting the illicit transfer of sensitive technologies to foreign state adversaries, including Iran.
The announcement further complements recent work by the National Security Division regarding corporate compliance. To encourage corporate disclosures of potential criminal violations of national security laws, including sanctions and export laws, the National Security Division updated its voluntary self-disclosure policy this past March. The Justice Department has also announced the hiring of 25 new prosecutors in the National Security Division to investigate and prosecute sanctions evasion, export control violations and similar economic crimes.
Companies should be aware that Iran relies on foreign input to crease the lethality and accuracy of its ballistic missile systems. Private industry is on the front lines of detecting and denying Iran’s procurement efforts, and it is critical that companies be familiar with the techniques, entities, goods and technologies involved in Iran’s ballistic missile procurement efforts.
The advisory is available here.
U.S. Department of Justice awards more than $11 million for anti-violence programs in Washington StateRead the Press Release
Seattle – The U.S. Department of Justice, Office of Justice programs is awarding more than $11 million in grant funding to entities in Washington State to combat community violence, especially youth violence, announced Acting U.S. Attorney Tessa M. Gorman. The two largest grants of $4 million each are going to the state and a King County non-profit for distribution to smaller community-based organizations.
“These federal dollars will help identify and support local programs that are working to reduce violence in our community,” said Acting U.S. Attorney Gorman. “I am particularly pleased to see the focus on youth violence and stopping gun crime. The epidemic of gun violence in our neighborhoods requires a sustained response from both law enforcement and community.”
The Washington State Department of Commerce was awarded $4 million to implement a Community Based Violence Intervention and Prevention Initiative to expand programs that address community violence across the state. The money is targeted towards underserved communities. As part of this work the grant will fund a statewide summit to share tools and knowledge about what is working to decrease community violence.
Similarly, a $4 million grant to Seattle’s Children & Youth Justice Center will provide support, training, and technical assistance to up to five community-based organizations who are serving youth in King County to prevent community violence. Additionally, the King County Department of Community and Human Services, Children Youth and Adult Division was awarded $1 million to implement policies aimed at reducing recidivism and enhancing community partnerships to reform the youth justice system.
Both the Eastern District of Washington and the Western District of Washington were awarded Project Safe Neighborhood grants aimed at combatting gun violence. For western Washington $285,039 will go towards projects that prevent gun violence in the South Sound, Clark County, and Snohomish County regions. In eastern Washington $110,648 will support gang and gun violence intervention in Yakima and Kennewick.
Additionally, Tacoma Police were awarded $800,000 to improve their investigation of gun crime. The grant is to fund implementation and evaluation of ShotSpotter technology to identify precise locations of gunshots. The money will also fund additional fingerprint technology and equipment to improve the collection of evidence at crime scenes.
Finally, Educational Service District 112 in Clark County was awarded $1 million to implement an innovative school-based mental health treatment and case coordination program for students who are involved with the juvenile justice system or have been identified through the Student Threat Assessment process. The money will fund three therapist who will serve students in schools in the nine districts that make up the Service District.
U.S. Attorney’s Office for the Middle District of Louisiana Observes Domestic Violence Awareness MonthRead the Press Release
October marks the observance of Domestic Violence Awareness Month (DVAM). U.S. Attorney Ronald C. Gathe, Jr. joins the U.S. Department of Justice in commemorating DVAM, paying tribute to victims and survivors, and saluting the dedication of advocates, service providers, justice professionals, law enforcement officers, and first responders who tirelessly work in support of survivors.
Domestic violence, dating violence, and intimate partner violence can have long-lasting impacts and consequences. Approximately one in four women and one in seven men will experience severe domestic violence in their lifetimes; however, rates are disproportionately higher for American Indian and Alaska Native populations, women of Color, lesbian, gay, bisexual, transgender, queer, intersex, and two-spirit people, and people with disabilities. DVAM provides an opportunity to spread awareness about domestic violence and encourage everyone to play a role in ending gender-based violence.
“We want our community to know that we are here to support victims and survivors in the Middle District of Louisiana – not just in October, but every month,” said U.S. Attorney Ronald C. Gathe, Jr. “And we who serve as federal prosecutors for the Middle District of Louisiana have a duty to use all the tools at our disposal—and leverage our partnerships with local law enforcement and prosecutors—to ensure victims have a viable path to safety and justice.”
U.S. Attorney’s Office for the Eastern District of Washington Observes Domestic Violence Awareness MonthRead the Press Release
Spokane, WA – October marks the observance of Domestic Violence Awareness Month. U.S. Attorney for the Eastern District of Washington, Vanessa R. Waldref, joins the U.S. Department of Justice in commemorating Domestic Violence Awareness Month, paying tribute to victims and survivors, and saluting the dedication of advocates, service providers, justice professionals, law enforcement officers, and first responders who tirelessly work in support of survivors.
Domestic violence, dating violence, and intimate partner violence can have long-lasting impacts and consequences. Approximately one in four women and one in seven men will experience severe domestic violence in their lifetimes; however, rates are disproportionately higher for
American Indian and Alaska Native populations, women of Color, lesbian, gay, bisexual, transgender, queer, intersex, and two-spirit people, and people with disabilities. Domestic Violence Awareness Month provides an opportunity to spread awareness about domestic violence and encourage everyone to play a role in ending gender-based violence.
A crucial part of combatting domestic violence and reducing violent crimes includes enforcing federal firearm prohibitions. Domestic violence abusers with access to a gun are five times more likely to kill their partners. In addition to their lethality, firearms are used by abusers to inflict fear, intimidation, and coercive control. Under federal law, people with domestic violence misdemeanor and felony convictions and those subject to domestic violence protective orders are prohibited from purchasing or possessing firearms.
In October 2022, U.S. Attorney Waldref announced her office’s Safe Homes and Safe Community Initiative to prevent domestic violence homicides and prevent abusers who have previously been convicted of domestic violence offenses from having access to firearms. Working with the Yakima Police Department, Yakima County Prosecutor’s Office, Spokane Police Department, and Spokane County Prosecutor’s Office, the U.S. Attorney’s Office to target individuals who were identified as repeat domestic violence abusers in possession of firearms. Data shows that offenders with a history of domestic violence pose a high risk of homicide to their family members. Indeed, domestic violence offenders with a gun in the home are five times more likely to kill their partners than other offenders.
“Everyone deserves to live in a safe home free of domestic violence,” said U.S. Attorney Waldref. “Federal prosecutors witness the devastating impacts of domestic violence on the lives of victims and their families, who may endure long-term trauma and are at increased risk for returning to abusive relationships. Here in the Eastern District of Washington, my Office is committed to use all the tools at our disposal—including leveraging our partnerships with local law enforcement and local prosecutors—to ensure victims have a viable path to safety and justice.”
Several cases have already been charged in Safe Homes, Safe Community. Some examples include:
- United States v. James Duane Deckard, 1:22-cr-02066-MKD: Sentenced to 48 months in March 2023 for being an Unlawful User of Controlled Substances and Person Convicted of Domestic Violence in Possession of a Firearm and Ammunition, in connection with pointing a firearm at his intimate partner during a domestic dispute;
- United States v. Frederick Terrell, 2:22-cr-00138-RMP: Sentenced to 51 months in June 2023 for being a Felon in Possession of a Firearm, in connection with sending his domestic partner a series of threating videos of himself firing a pistol;
- United States v. Daniel Parks Conant, 2:23-cr-00057: Indicted in May 2023, for possessing a firearm after being convicted of domestic abuse on the Colville Indian Reservation in February 2021.
U.S. Attorney Waldref continued, “Right here in Eastern Washington my Office’s Safe Home Safe Community Initiative focuses on curbing gun violence by removing firearms unlawfully possessed by individuals with a track record of violent crime and domestic violence – these efforts protect victims, law enforcement, and the entire community.”
Video Message: https://www.youtube.com/watch?v=zRNct8hfuxw
U.S. Attorney Waldref continued, “Right here in Eastern Washington my Office’s Safe Home Safe Community Initiative focuses on curbing gun violence by removing firearms unlawfully possessed by individuals with a track record of violent crime and domestic violence – these efforts protect victims, law enforcement, and the entire community.”
Facing domestic violence? Find support in your state through @OVWJustice's Local Resources: https://www.justice.gov/ovw/local-resources
Immediate help for domestic violence victims: Call the National Domestic Violence Hotline (@ndvhofficial) at 1-800-799-7233 or Strong Hearts Native Helpline (@strongheartsdv) at 1-844-762-8483. #DVAM2023
Two Men Plead Guilty to Falsifying Documents Related to Testing of Equipment at Nuclear Power PlantsRead the Press Release
Two men pleaded guilty today for their roles in creating false calibration certificates in a matter within the jurisdiction of the Nuclear Regulatory Commission (NRC).
According to court documents, Miguel Marcial Amaro, 56, of Newark, Delaware, and Martin Ramos, 52, of Levittown, Pennsylvania, worked for a company that provided acoustic emissions (AE) testing to nuclear power plants to detect structural defects in the plant’s equipment. Following the testing, Marcial and Ramos helped create and transmit final testing reports to the owners of the plants which, among other things, contained calibration certificates for the equipment used.
Between 2010 and 2021, Marcial was responsible for ensuring that the company’s AE testing equipment was calibrated annually; Ramos worked under Marcial as an engineer. The two men created numerous false calibration certificates for AE testing equipment, and 15 of these false certificates were sent a total of 29 times to nuclear plant owners as part of final testing reports required by the NRC. The falsified calibration certificates were discovered in 2021 during an external audit.
“Today, we hold defendants accountable for deliberately attempting to bypass testing protocols that are essential to keeping nuclear power plants safe,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “We will continue to use all available enforcement authorities to support NRC’s efforts to ensure that nuclear energy is safely created.”
“Many thanks to the NRC and the ENRD for partnering in enforcement and ensuring the accuracy of inspection reports critical to the safe operation of nuclear power plants,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “My office takes safety matters such as these seriously, and these guilty pleas show that anyone seeking to evade nuclear testing protocols will be held accountable.”
“The NRC takes its mission of protecting public health and safety very seriously,” said Director Thomas G. Ashley Jr. of the NRC’s Office of Investigations. “It’s vital that employees at NRC-regulated entities act with integrity. Today’s announcement shows deliberate violations of NRC requirements will not be tolerated.”
Marcial and Ramos are scheduled to be sentenced on Jan. 25, 2024. Each faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The NRC’s Office of Investigation conducted the investigation.
Senior Trial Attorney Daniel Dooher and Trial Attorney Rachel M. Roberts of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Joan E. Burnes for the Eastern District of Pennsylvania are prosecuting the case.
Two Lakeland Men Plead Guilty to Federal Charges in Connection with Drive-By Shooting of 11 Men in LakelandRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Nicholas Quinton Hanson (31, Lakeland) and Marcus Dewonn Mobley, Jr. (23, Lakeland) have pleaded guilty to possessing ammunition, and possessing a firearm and ammunition, respectively, as convicted felons. Each faces a maximum penalty of 15 years in federal prison. Sentencing dates have not yet been set.
According to the plea agreements, on January 30, 2023, 11 individuals were shot in a drive-by shooting carried out from a blue Nissan Altima near Iowa Avenue and Plum Street in Lakeland. Mobley owned a blue Nissan Altima. Evidence collected from Hanson and Mobley’s cellphones showed they communicated prior to, and after, the shooting. Hanson and Mobley’s DNA was recovered from spent shell casings found at the scene of the shooting. At the time, Hanson and Mobley both had prior felony convictions and therefore prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Strategic Pattern Armed Robbery Technical Apprehension (SPARTA) unit of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Lakeland Police Department, the Polk County Sheriff’s Office, and the State Attorney’s Office for Florida’s 10th Judicial Circuit. It is being prosecuted by Assistant United States Attorney Christopher F. Murray.
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.
Two California Men Accused of Supplying Meth from Mexico to UtahRead the Press Release
SALT LAKE CITY – A federal grand jury in Salt Lake City returned an indictment today charging two men from Southern California for allegedly possessing with the intent of distributing methamphetamine in Utah.
According to court documents, on October 7, 2023, Oscar Soto-Covarrubias, Sr., 73, of San Diego, California, and Oscar Soto Jr., 26, of Fontana, California, were stopped by a Utah Highway Patrol Trooper for an expired registration. During the traffic stop, a drug detection K9 alerted to narcotics. In a subsequent search of the vehicle, agents located and seized a backpack containing approximately 6,780 grams (15 pounds) of field-tested meth. As part of a drug conspiracy investigation, law enforcement identified Soto-Covarrubias, Sr. and Soto Jr. as a Mexico/California-based source of supply of methamphetamine for Utah-based meth redistributors.
Oscar Soto Covarrubias Sr. and Oscar Soto Jr. are charged with possession of methamphetamine with intent to distribute. Their initial court appearance on the indictment is scheduled for Oct. 19, 2023, at 11:30 a.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is part of a joint investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA) and the Unified Police Department Metro Gang Unit with assistance from the Utah Highway Patrol.
Assistant United States Attorney Stephen L. Nelson of the District of Utah is prosecuting the case.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The Justice Department Issues Fifth Annual Elder Justice ReportRead the Press Release
Earlier today, the Justice Department issued its fifth annual report to Congress on its efforts to combat elder fraud and abuse. The report summarizes the Department’s extensive efforts during the reporting period from July 1, 2022 through June 30.
“The Justice Department is intensifying our efforts to fight the despicable crimes of elder fraud and abuse,” said Attorney General Merrick B. Garland. “As reflected in this year’s report, the Department is aggressively pursuing perpetrators of elder fraud and abuse, supporting victims, and raising public awareness to prevent elder fraud and abuse before they occur.”
“During the past year, the Department has pursued hundreds of criminal and civil cases to bring perpetrators who prey on older adults to justice,” said Deputy Attorney General Lisa Monaco. “Working with our law enforcement partners, our agents and prosecutors have employed disruption strategies and obtained restitution and forfeiture orders to deter potential offenders, minimize losses, make victims financially whole, and prevent wrongdoers from profiting from their crimes.”
“Every year, millions of older Americans experience some form of elder abuse. And sadly, the majority of elder abuse cases go unreported,” said Associate Attorney General Vanita Gupta. “The Department is taking an active and multifaceted approach to addressing elder abuse, and our efforts reflect the hard work of so many, including our prosecutors, crime victim specialists, agents and investigators, program analysts, and subject matter experts.”
This year’s report reflects the four pillars of the Department’s elder justice work.
First, holding perpetrators of elder abuse and fraud accountable is the cornerstone of the Department’s elder justice work. During the reporting period, the Department brought nearly 300 criminal and civil actions against more than 650 defendants who collectively stole more than $1.5 billion from over 2.4 million victims. Some of these defendants engaged in transnational and domestic fraud schemes, including lottery, romance, and tech support scams. The Department also pursued nursing home operators that provided grossly substandard care to their residents.
Second, the Department supports in various ways older Americans who have experienced abuse or financial exploitation. Over the past year, the Department returned hundreds of millions of dollars to victims of elder fraud schemes, while helping to freeze millions of dollars for other older victims before their funds were transferred to fraudsters. The Department also supported over 5,000 victim assistance organizations that provided services (including individual advocacy, crisis intervention, civil legal assistance, transportation, and emergency shelter) to over 240,000 victims aged 60 and older. The Department continued to support the National Elder Fraud Hotline, which helped tens of thousands of older adults report suspected fraud or connected them to available social services.
Third, as state, local, and Tribal elder justice professionals are often on the front line in responding to elder abuse and fraud cases, the Department worked to support the capacity and ability of state, local, and Tribal communities to identify, address, and combat elder abuse in its many forms. For example, the Department awarded grants to six Enhanced Multidisciplinary teams to work with older victims of financial exploitation and abuse. These grantees join the 23 local multidisciplinary teams also funded by the Department to better identify and respond to cases of elder abuse and more comprehensively serve and support victims of financial exploitation. The Department also funded the first National Center for State and Tribal Elder Justice Coalitions to support statewide coordination and collaboration among elder justice organizations, and developed and shared new resources, training, and tools for state and local law enforcement to more effectively identify and investigate elder abuse and fraud.
Lastly, the Department is committed to raising public awareness of fraud schemes and empowering older Americans and their families with the knowledge and information to protect themselves from elder fraud and abuse. For that reason, Department employees conducted or participated in over 700 elder justice outreach and training events across the country to raise public awareness of elder fraud and abuse and reached over 28 million Americans.
To report elder financial fraud, call the National Elder Fraud Hotline, 1-833-FRAUD-11 (1-833-372-8311). For more information on the Department’s elder justice activities, visit www.elderjustice.gov.
Texarkana-Area Drug Dealer Sentenced to Ten Years in Federal PrisonRead the Press Release
TEXARKANA, ARKANSAS – A Texas man was sentenced yesterday to 120 months in federal prison for distributing methamphetamine in Texarkana, Arkansas. The Honorable Judge Susan O. Hickey, Chief United States District Judge, presided over the case. There is no parole in the federal system.
According to court documents, Antonio Griffin, 40, of Wake Village, Texas, pleaded guilty in February 2023 to selling almost four ounces of pure methamphetamine to a confidential informant operating under the supervision of the Federal Bureau of Investigation and the Bi-State Narcotics Task Force, in Texarkana, Arkansas.
U.S. Attorney David Clay Fowlkes, of the Western District of Arkansas, made the announcement.
The Bi-State Narcotics Task Force, the Texarkana, Arkansas, Police Department, and the FBI investigated the case.
Assistant U.S. Attorney Graham Jones prosecuted the case for the United States.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Tampa Felon Sentenced to 2 Years in Federal Prison for Possessing Firearm and AmmunitionRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Carvia Harris (35, Tampa) to two years in federal prison for possessing a firearm and ammunition as a convicted felon. Harris had pleaded guilty on May 9, 2023.
According to court documents, Harris, a multi-time convicted felon, fled from a traffic stop involving a stolen car in Hillsborough County. The vehicle was driven by a known fentanyl trafficker, Randell Love, who later pleaded guilty to federal armed fentanyl trafficking charges arising from a separate incident. Deputies from the Hillsborough County Sheriff’s Office recovered a loaded .40 caliber pistol with an obliterated serial number from a bag inside the car. A crime scene technician processed the firearm and magazine for fingerprints. A print on the magazine was comparable and came back as a match to Harris. As a convicted felon, Harris is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Christopher F. Murray.
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.
Suburban Chicago Man Charged with Insider TradingRead the Press Release
CHICAGO — A suburban Chicago man used insider information obtained from his spouse to purchase options in a biotech company’s stock before it was acquired by a large pharmaceutical company, according to a federal criminal charge filed by the U.S. Attorney’s Office in Chicago.
In the spring of 2019, BRIAN RUBIN made $90,450 in illegal profits from the purchase and sale of stock options in the Colorado-based biotech company that employed Rubin’s spouse, according to the criminal information filed Tuesday in U.S. District Court in Chicago. Unbeknownst to his spouse, Rubin used material, non-public information obtained from her about the biotech company’s successful development of certain products and its expected acquisition by the New York-based pharmaceutical company to purchase the options ahead of a public announcement of the acquisition in June 2019, the charge alleges. After the announcement, the biotech company’s stock price increased and Rubin exercised the options for the profit, the charge alleges. Rubin’s spouse had learned the information through her position as an account director for the biotech company’s Midwest operations, the charge alleges.
Rubin, 51, of Deerfield, Ill., is charged with one count of securities fraud. The charge is punishable by up to 20 years in federal prison. Arraignment in federal court in Chicago has not yet been scheduled.
The charge was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois; and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Securities and Exchange Commission, which filed a civil enforcement action against Rubin, provided valuable assistance. Assistant U.S. Attorneys Jared Hasten and Adam Rosenbloom represent the government in the criminal case.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Rubin information