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Friday 29 September 2023
SMC Systems Inc. to Pay $2.35 Million to Resolve Allegations of False Statements Relating to Energy Star ProgramRead the Press Release
WASHINGTON – SMC Systems Inc., dba Skyetec, headquartered in Jacksonville, Florida, has agreed to pay $2.35 million to resolve allegations that it violated the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), between 2014 and 2021, by knowingly and intentionally making false statements to the Environmental Protection Agency (EPA) and other entities about the results of inspections it was performing under the EPA’s Energy Star Program. FIRREA imposes civil penalties on any person or entity that violates certain predicate federal statutes involving false statements and financial fraud. On July 15, 2021, Skyetec was acquired by Quality Built, LLC, and re-organized as SMC Systems LLC.
“EPA’s Energy Star program is an important vehicle for promoting energy efficiency and improving energy security,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “We will hold accountable those who undermine these critical objectives and seek to profit by knowingly failing to comply with the program’s requirements.
“The strength and integrity of the Energy Star program depends on accurate information provided by those who inspect and certify homes as energy efficient,” said U.S. Attorney Handberg for the Middle District of Florida. “The U.S. Attorney’s Office is committed to ensuring integrity in that process for both home buyers and financial institutions that assist borrowers in financing their homes, as well as holding accountable those who falsely certify Energy Star homes.”
“The integrity of the Energy Star program relies on an honest and transparent public-private partnership,” said Special Agent in Charge Nic Evans of the EPA Office of Inspector General (EPA-OIG). “These allegations and subsequent penalties send a clear message that oversight is imperative to bring to light partners that diminish the value of the Energy Star program.”
The Energy Star Program is a voluntary public-private partnership to identify and promote energy-efficient products and buildings, to reduce energy consumption, to improve energy security and to reduce pollution through labeling of, or other communication about, products and buildings that meet the highest energy conservation standards. As part of the Energy Star Program, the EPA oversees the Energy Star Home Certification Program along with RESNET, a private Home Certification Organization that accredits and audits rating providers. Under the Home Certification Program, newly constructed homes receive energy inspections and obtain Energy Star Certificates reflecting that the home meets the required energy efficiency standards. An essential feature of this program is third-party verification that the home meets energy efficiency standards set by EPA. EPA relies on rating providers, like Skyetec, to ensure that all homes certified as Energy Star meet all Energy Star requirements. The rating provider must sign a partnership agreement with the EPA and must report all homes certified as Energy Star to the EPA.
An essential component of the Energy Star Home Certification Program is a pre-drywall inspection to verify the presence and installation quality of a home’s insulation, alignment of air barriers, presence of prescribed framing and proper overall seal of a home. This is known as a “thermal bypass inspection.” The United States alleged that between 2014 and 2021, Skyetec knowingly and intentionally made false statements to the EPA, RESNET and others that it had properly performed these thermal bypass inspections when, in fact, it had failed to do so. Skyetec obtained both payment from a third party for a thermal bypass inspection and an Energy Star certificate from EPA based on the material misrepresentation that a thermal bypass inspection occurred. Skyetec reported information about these homes through internet platforms to both the EPA and RESNET as having satisfied Energy Star requirements when in fact they had not verified this through a thermal bypass inspection.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from EPA-OIG.
The matter was investigated by Senior Trial Counsel Don Williamson and Assistant U.S. Attorneys Lindsay Griffin, Charles Harden and Soma Nwokolo for the Middle District of Florida.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SMC Systems Inc. to Pay $2.35 Million to Resolve Allegations of False Statements Relating to Energy Star ProgramRead the Press Release
SMC Systems Inc., dba Skyetec, headquartered in Jacksonville, Florida, has agreed to pay $2.35 million to resolve allegations that it violated the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), between 2014 and 2021, by knowingly and intentionally making false statements to the Environmental Protection Agency (EPA) and other entities about the results of inspections it was performing under the EPA’s Energy Star Program. FIRREA imposes civil penalties on any person or entity that violates certain predicate federal statutes involving false statements and financial fraud. On July 15, 2021, Skyetec was acquired by Quality Built, LLC, and re-organized as SMC Systems LLC.
“EPA’s Energy Star program is an important vehicle for promoting energy efficiency and improving energy security,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “We will hold accountable those who undermine these critical objectives and seek to profit by knowingly failing to comply with the program’s requirements.
“The strength and integrity of the Energy Star program depends on accurate information provided by those who inspect and certify homes as energy efficient,” said U.S. Attorney Handberg for the Middle District of Florida. “The U.S. Attorney’s Office is committed to ensuring integrity in that process for both home buyers and financial institutions that assist borrowers in financing their homes, as well as holding accountable those who falsely certify Energy Star homes.”
“The integrity of the Energy Star program relies on an honest and transparent public-private partnership,” said Special Agent in Charge Nic Evans of the EPA Office of Inspector General (EPA-OIG). “These allegations and subsequent penalties send a clear message that oversight is imperative to bring to light partners that diminish the value of the Energy Star program.”
The Energy Star Program is a voluntary public-private partnership to identify and promote energy-efficient products and buildings, to reduce energy consumption, to improve energy security and to reduce pollution through labeling of, or other communication about, products and buildings that meet the highest energy conservation standards. As part of the Energy Star Program, the EPA oversees the Energy Star Home Certification Program along with RESNET, a private Home Certification Organization that accredits and audits rating providers. Under the Home Certification Program, newly constructed homes receive energy inspections and obtain Energy Star Certificates reflecting that the home meets the required energy efficiency standards. An essential feature of this program is third-party verification that the home meets energy efficiency standards set by EPA. EPA relies on rating providers, like Skyetec, to ensure that all homes certified as Energy Star meet all Energy Star requirements. The rating provider must sign a partnership agreement with the EPA and must report all homes certified as Energy Star to the EPA.
An essential component of the Energy Star Home Certification Program is a pre-drywall inspection to verify the presence and installation quality of a home’s insulation, alignment of air barriers, presence of prescribed framing and proper overall seal of a home. This is known as a “thermal bypass inspection.” The United States alleged that between 2014 and 2021, Skyetec knowingly and intentionally made false statements to the EPA, RESNET and others that it had properly performed these thermal bypass inspections when, in fact, it had failed to do so. Skyetec obtained both payment from a third party for a thermal bypass inspection and an Energy Star certificate from EPA based on the material misrepresentation that a thermal bypass inspection occurred. Skyetec reported information about these homes through internet platforms to both the EPA and RESNET as having satisfied Energy Star requirements when in fact they had not verified this through a thermal bypass inspection.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from EPA-OIG.
The matter was investigated by Senior Trial Counsel Don Williamson and Assistant U.S. Attorneys Lindsay Griffin, Charles Harden and Soma Nwokolo for the Middle District of Florida.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementRock Hill Man Sentenced to 7 Years in Federal Prison for Possessing a Firearm and AmmunitionRead the Press Release
COLUMBIA, SOUTH CAROLINA — Davon Thompson, 29, of Rock Hill, was sentenced to 7 years in federal prison after pleading guilty to felon in possession of a firearm and ammunition.
Evidence presented to the court showed that on August 31, 2020, Rock Hill Police Department officers responded to a report of a man with a gun. During their investigation, a loaded .45 caliber pistol was found in a diaper bag belonging to a woman who was on scene. Thompson later admitted to hiding the pistol in the diaper bag. Thompson’s federal sentence was enhanced in part due to arrests in November 2020 and August 2021 for possessing firearms and drug trafficking. In the August incident, Thompson admitted to possessing a firearm equipped with a gun sight and a high-capacity ammunition magazine.
Thompson was prohibited from possessing a firearm and ammunition due to previous state court convictions for burglary, failure to stop for a blue light, attempt to purchase oxycodone and possession with intent to distribute oxycodone.
Senior United States District Judge Joseph F. Anderson, Jr., sentenced Thompson to 84 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Rock Hill Police Department (RHPD), the Fort Mill Police Department (FMPD) and the York County Sheriff’s Office (YCSO). Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
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Rock Hill Man Sentenced to 15 Years in Federal Prison for Possessing a Firearm and AmmunitionRead the Press Release
COLUMBIA, SOUTH CAROLINA — Donnell S. Durham, 35, of Rock Hill, was sentenced to 15 years in federal prison after pleading guilty to felon in possession of a firearm and ammunition.
Evidence presented to the Court showed that on July 27, 2021, Rock Hill Police Department officers stopped a car with a suspended license tag. Durham was a passenger in the car. Officers smelled marijuana coming from the car and asked Durham and the others inside the car to step out. Officers soon learned that Durham had an outstanding arrest warrant. When officers tried to arrest Durham, he resisted arrest leading to a struggle between Durham and the officers over a loaded pistol Durham had hidden in his waistband. After officers gained control of the pistol, Durham was placed under arrest. Durham was also found to be in possession multiple drugs including methamphetamine, fentanyl, and cocaine.
Durham was prohibited from possessing a firearm and ammunition due to various state felony convictions. In 2012, Durham was convicted of attempted murder and aggravated assault and battery after striking one RHPD officer with a car and almost hitting another officer while trying to flee from the officers. In 2014, Durham was convicted of aggravated assault and battery after shooting another man. In 2016, Durham was convicted of possession with intent to distribute crack cocaine.
United States District Judge Sherri A. Lydon sentenced Durham to 180 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations (HSI), the Rock Hill Police Department (RHPD) and the York County Sheriff’s Office (YCSO). Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
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Real Estate Executive Pleads Guilty to Multi-Year Conspiracy to Falsify Financial StatementsRead the Press Release
A California real estate executive pleaded guilty yesterday to engaging in an extensive multi-year conspiracy to falsify financial statements.
According to court documents, Tyler Ross, 37, formerly of Michigan, served as co-chief executive officer of ROCO Real Estate LLC and ROCO Management LLC, both of which are based in Bloomfield Hills, Michigan. The ROCO companies, and related entities, operated as a commercial real estate firm engaged in the business of purchasing, managing, and selling multi-family residential properties, such as apartment complexes, located in Michigan and elsewhere.
“Tyler Ross falsified corporate records to deceive lenders by fraudulently inflating the income of ROCO properties,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The guilty plea demonstrates the Department’s commitment to holding accountable those who lie to lenders and banks, including executives in commercial real estate.”
“Honest financial reporting is the foundation of our banking and lending system,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “My office will not hesitate to prosecute those who lie in order to engage in financial crimes, regardless of the titles they may have.”
Between 2015 and 2019, Ross and his co-conspirators caused false financial documents to be submitted to mortgage-lending businesses for underperforming ROCO properties, making the properties appear to be more profitable than they were. Ross, who is also a licensed attorney, personally falsified historical operating statements during the conspiracy and directed other members of the conspiracy to assist with the creation and submission of falsified financial statements to submit to mortgage-lending businesses. Ross and his co-conspirators deleted or reduced actual expenses from historical operating statements for certain underperforming ROCO properties and caused the falsified statements to be submitted to lenders.
“The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) aggressively investigates allegations of mortgage fraud,” said Special Agent in Charge Catherine Huber of FHFA-OIG’s Central Region. “We investigate and hold accountable anyone who has engaged in unlawful activities to illegally profit through the mortgage loan process, whether residential or commercial.”
“Those who willfully provide false financial information limit the amount of money that is available for individuals and companies who are doing the right thing,” said Special Agent in Charge Shawn Rice of the Department of Housing and Urban Development Office of Inspector General (HUD-OIG). “This case demonstrates HUD-OIG’s commitment to working with its law enforcement partners to investigate and hold accountable those who violate the law.”
“Mortgage fraud is a serious offense that affects lenders and borrowers alike,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “This case demonstrates the FBI’s continued commitment to protecting our banking and mortgage industry by going after anyone who obtains loans under false pretenses.”
Ross pleaded guilty to one count of conspiring to commit an offense against the United States. He is scheduled to be sentenced on March 12, 2024, and 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 FHFA-OIG, HUD-OIG, and FBI are investigating the case.
Trial Attorneys Andrew Tyler and Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew J. Yahkind for the Eastern District of Michigan are prosecuting the case.
Readout of Department of Justice Federal/Tribal Regional Summit in the Twin Cities in MinnesotaRead the Press Release
The Justice Department’s Environment and Natural Resources Division (ENRD), Office of Environmental Justice and Office of Tribal Justice helped convene a Federal/Tribal Regional Summit in Minnesota’s Twin Cities on Sept. 26 and 27; the event was hosted by the Regional Solicitor’s office of the U.S. Department of the Interior. Summit participants also included Justice Department personnel from the Community Relations Service and Executive Office for U.S. Attorneys as well as Tribal nations representatives from Minnesota, Wisconsin, Nebraska, Michigan, Iowa and South Dakota.
Assistant Attorney General (AAG) Todd Kim of ENRD challenged the group to identify new ways to work together to support Tribal sovereignty and ensure the preservation of sustainable Tribal homelands.
“The United States supports Tribal sovereignty and self-determination and has a unique government-to-government relationship with Tribes,” he said. “And, like the U.S. Constitution and federal statutes, treaties are the supreme law of the land. This administration is fully committed to using all available authorities to protect Tribal treaty and reserved rights and to supporting Tribal efforts to strengthen Tribes’ resilience in responding to climate impacts that include erosion, drought, wildfires and rising sea levels.”
AAG Kim pointed to last week’s historic settlement of litigation by Tribes over management of the Columbia River System. AAG Kim noted that all parties hope the settlement “will further a comprehensive solution to restore salmon populations in the Basin while also advancing clean energy goals.”
The Summit featured an address by Midwest Regional Administrator Debra Shore of the Environmental Protection Agency as well as short presentations and in-depth discussions on environmental justice; Tribal treaty rights related to hunting, fishing and gathering of natural resources; Tribal jurisdictional issues; trespass on Tribal lands; identification and enforcement of environmental crimes; and climate adaptation strategies. Additional sessions focused on best practices for working with federal agencies on ensuring protection of Tribal rights and resources.
This meeting was the second of three Regional Summits planned for 2023, and follows national conversations with Tribes held in Washington, D.C., in November 2022 and Columbia, South Carolina, earlier this year. The Summits are intended to deliver on the promise in the Department’s Comprehensive Environmental Justice Enforcement Strategy to work with Tribal governments and other federal agencies to “address and incorporate Tribal concerns into the Department’s enforcement work.”
The next Regional Federal/Tribal Summit is scheduled for Oct. 15-17 in Albuquerque, New Mexico.
Pontotoc County Resident Sentenced for Abusive Sexual Contact and Sexual Abuse of A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nathan Dale Smith, age 33, of Pontotoc County, Oklahoma, was sentenced to 87 months in prison for one count of Sexual Abuse of a Minor in Indian Country and 24 months in prison for one count of Abusive Sexual Contact in Indian Country. The sentences were ordered to run concurrently.
The charges arose from investigations by the Federal Bureau of Investigation and the Ada Police Department.
On September 9, 2022, a federal jury found Smith guilty of Sexual Abuse of a Minor in Indian Country and Abusive Sexual Contact in Indian Country. During the trial, the United States presented evidence that Smith sexually abused a female child under the age of 16 over the course of two years. Once the abuse was disclosed, the Defendant sent an incriminating text message to the victim’s mother apologizing for his actions.
“I commend the Ada Police Department and the FBI for their cooperative work in investigating this case,” said United States Attorney Christopher J. Wilson. “Their efforts allowed Assistant United States Attorneys from our Special Victims Unit to obtain a measure of justice for the victim.”
The crimes occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Smith will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Morgan Muzljakovich and Nicole Paladino represented the United States.
Physician Charged with Distributing A Controlled Substance Appears in Federal CourtRead the Press Release
CHARLOTTE, N.C. – A North Carolina physician appeared before U.S. Magistrate Judge Susan C. Rodriguez this morning on charges related to the alleged unlawful distribution of a controlled substance, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
A criminal indictment charging Henry Ronald Emery, Jr., M.D., 52, of Waxhaw, N.C., with one count of conspiracy to distribute controlled substances outside the bounds of professional medical practice, and 11 counts of distribution of controlled substances outside the bounds of professional medical practice was unsealed following Dr. Emery’s initial court appearance.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Donald "Trey" Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, join U.S. Attorney King in making today’s announcement.
According to allegations contained in the indictment, from no later than September 2018 through in or about 2022, Dr. Emery, then a physician licensed to practice medicine in North Carolina, allegedly conspired with other persons to intentionally and unlawfully prescribe, dispense, and distribute, and did unlawfully prescribe, dispense, and distribute, a mixture and substance containing a detectable amount of buprenorphine, a Schedule III controlled substance. The indictment alleges that Dr. Emery engaged in the illegal distribution of buprenorphine on multiple occasions and while acting and intending to act outside the usual course of professional practice and not for a legitimate medical purpose.
If convicted, Dr. Emery faces a maximum penalty of 10 years in prison and a $500,000 fine on each count in the indictment.
The charges against Dr. Emery are allegations. A defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King thanked the DEA and IRS-CI for their investigation of the case.
Assistant U.S. Attorneys Nick J. Miller and William Bozin of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Philadelphia Man Sentenced to 30 Years in Prison for Enticement of A MinorRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Samuel Ernesto Mendez (29, Philadelphia) to 30 years in federal prison, followed by a lifetime of supervised release, for enticement of a minor to engage in sexual activity. The court also ordered Mendez to forfeit two cellphones and a gaming console, which were used to commit the offense. Mendez had pleaded guilty on March 31, 2023.
According to court documents, in February 2022, Mendez met the 12-year-old victim online. He chatted online with the child for four months before traveling to Orlando in June 2022 to engage in sexual activity with the child. While in Orlando, Mendez picked up the child in the middle of the night, took the child to a local hotel, drank alcoholic beverages with the child, and had sexual intercourse with the child. After returning to his home in Philadelphia, Mendez continued his inappropriate “relationship” with the victim with online written and video chats. Upon his arrest in December 2022, Mendez admitted to having an inappropriate relationship with the victim and traveling to Florida to see the victim.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Courtney D. Richardson-Jones.
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.
Pell City Man Charged with Scheme to Defraud InvestorsRead the Press Release
BIRMINGHAM, Ala. – A Pell City man has been charged with a scheme to defraud investors in his various companies, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.
An information filed in United States District Court charges John Michael Golden, 48, with one count of wire fraud.
According to the information, Golden was the founder and owner of Wolf-Tek, LLC; MountainTop Timber, LLC; and DroneTek, Inc. The information alleges that between January 2018 and July 2022, Golden devised a scheme to persuade individuals to invest in his companies. He made various misrepresentations to the investors, including his businesses were about to be sold for millions of dollars to companies such as Amazon, he had timber leases and an ability to harvest timber for profit, and he had hundreds of pre-orders for drones that he simply needed capital to fulfill. Golden also gave some investors Promissory Notes in which he misrepresented his ability to repay. Golden defrauded investors in his companies of more than $3.5 million dollars. He used the funds to pay back prior investors and for personal expenses.
The maximum penalty for wire fraud is twenty years in prison.
The Federal Bureau of Investigation investigated the case. Assistant United States Attorney Ryan Rummage is prosecuting the case.
New Orleans Man Pleads Guilty to Violations of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – Today, U.S. Attorney Duane A. Evans announced that ALFRED CLAY, age 59, a resident of New Orleans, pled guilty on September 27, 2023 before United States District Judge Jane Triche Milazzo to a two-count indictment. Count One charged CLAY with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine hydrochloride. Count Two charged CLAY with possession with intent to distribute five kilograms or more of cocaine hydrochloride, announced U.S. Attorney Duane A. Evans.
According to court documents, CLAY and other co-conspirators are responsible for the distribution of multi-kilogram quantities of cocaine, fentanyl, and heroin within the Eastern District of Louisiana.
During the investigation, law enforcement, led by the Drug Enforcement Administration, seized over forty (40) kilograms of cocaine hydrochloride, six (6) kilograms of frntanyl, four ans a half (4.5) kilograms of heroin and nearly $700,000.00 in U.S. Currency and other seized property.
As to each of the two charged counts, CLAY faces a mandatory minimum term of imprisonment of 10 years up to a maximum term of life, a fine of up to $10,000,000.00, at least five years of supervised release following any term of imprisonment, and a mandatory special assessment fee of $100.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the Drug Enforcement Administration – New Orleans Field Division Office and was assisted by the Federal Bureau of Investigation, the United States Border Patrol, the Gretna Major Crimes Task Force, the Kenner Police Department, the Jefferson Parish Sheriff’s Office, the St. John’s Parish Sheriff’s Office, the Orleans Parish Sheriff’s Office, and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Nevada Residents Convicted of Participating in Sophisticated Wire Fraud Conspiracy That Targeted Elderly Victims in Western Pennsylvania and ElsewhereRead the Press Release
PITTSBURGH, PA – A jury convicted co-defendants Roderick Feurtado, 56, and Tarek Bouanane, 47, both of Las Vegas, Nevada, of conspiracy to commit wire fraud following a five-day trial in federal court in Pittsburgh, Pennsylvania, United States Attorney Eric G. Olshan announced today.
Evidence at trial established that the defendants traveled to the Pittsburgh area in September 2021 to execute a scheme to defraud elderly victims of large amounts of cash. As part of the scheme, members of the conspiracy contacted numerous victims and falsely claimed that a family member of the victims, usually a grandchild, had been detained in connection with a legal proceeding and needed money for bail. The victims were directed to withdraw cash and provide it to a “courier” who would visit them at their homes. In reality, the victims’ family members had not been detained, and the “courier” was actually a member of the conspiracy. Tarek Bouanane acted as one of these “couriers,” while his co-conspirator Roderick Feurtado acted as the “safehouse,” who gave directions to the couriers and collected the money that had been obtained from the victims. The defendants kept a portion of the fraud proceeds for themselves, and they had plans to pass along the rest to other co-conspirators, including by converting it to cryptocurrency. During the investigation, the Pennsylvania State Police seized approximately $220,000 from the defendants; the co-conspirators were responsible for at least $250,000 in total victim losses in the Western District of Pennsylvania and elsewhere as a result of the conspiracy.
“The evidence in this case showed that Bouanane and Feurtado participated in a sophisticated scheme that preyed on elderly victims who were tricked into handing over thousands of dollars in cash because they thought they were helping a loved one who was in trouble,” said U.S. Attorney Olshan. “The jury’s quick verdict provides a measure of justice for the victims in this case and should serve as a reminder that our office and our law enforcement partners will continue to hold accountable those who would victimize the most vulnerable members of our communities.”
“Feurtado and Bouanane represent the worst that society has to offer. They prey upon the love and concern that our amazing senior citizens have for their families,” said Special Agent in Charge of HSI Philadelphia William S. Walker. “HSI Philadelphia is extremely proud of our special agents in the Pittsburgh office. Once again, they have proven that through cooperation and side by side investigations with the United States Attorney’s Office in the Western District of Pennsylvania, the Pennsylvania State Police, and the Bethel Park Police Department, law enforcement can and will protect our most valuable and treasured citizens.”
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorneys Jeffrey R. Bengel and Michael R. Ball prosecuted this case on behalf of the government.
The Department of Homeland Security Investigations, Pennsylvania State Police, and Bethel Park Police Department conducted the investigation leading to the convictions in this case.
Montgomery Man Convicted of Illegally Possessing Ammunition Used During Shooting at Gas StationRead the Press Release
Montgomery, Alabama – On September 28, 2023, a federal jury convicted Maricas Rondell Taylor, 40, from Montgomery, Alabama, on one count of unlawfully possessing ammunition after being convicted of a felony offense, announced United States Attorney Sandra J. Stewart.
According to court records and evidence presented during his trial, on September 30, 2022, Taylor and a cousin entered a gas station on West Fairview Avenue in Montgomery. Taylor’s cousin had been previously barred from entering the store. When the clerk informed the cousin that she was not allowed inside, Taylor became upset and got into a verbal altercation with the clerk. Taylor then left the premises. About 45 minutes later, Taylor returned to the store and again confronted the clerk. Surveillance video from inside the store showed Taylor pulling a gun from his pocket and firing multiple times at the clerk. The clerk was able to seek cover behind the counter and avoid being struck by the bullets fired by Taylor.
During the investigation, law enforcement recovered shell casings from the store. In finding Taylor guilty, the jury determined that the shell casings recovered from the scene came from ammunition possessed by Taylor during the shooting. Taylor has a previous felony conviction and is prohibited by federal law from possessing a firearm or ammunition.
Following the guilty verdict, Taylor faces a sentence of up to 15 years in federal prison. A sentencing hearing will be scheduled for Taylor in the coming months. There is no parole in the federal system.
This case was 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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Montgomery Police Department investigated this case, with Assistant United States Attorneys Brandon W. Bates and Michelle R. Turner prosecuting.
Mobile Check Fraudsters and Identity Thieves Sentenced in Federal CourtRead the Press Release
MOBILE, AL – More than a dozen defendants from Mobile were sentenced for their roles in an organized scheme to commit bank fraud and identity theft. The leader of the scheme was sentenced to 102 months in federal prison.
According to court documents, Arrington Jaylun Gardner, 22, led a ring of individuals that committed widespread fraud and identity theft involving checks stolen from the U.S. mail, which the defendants later altered and deposited at various financial institutions. The fraudulent checks bore the personal identifying information of numerous victim businesses and individuals in the Mobile area and elsewhere. Gardner and his coconspirators used social media and other means to recruit individuals with accounts at various banks, who provided their account information, debit cards, and other support to Gardner to further the scheme. Victims of the scheme suffered more than $125,000 in financial losses.
Federal agents executed a search warrant at Gardner’s apartment in Mobile in July 2022, recovering dozens of altered and stolen checks, fake identifications, counterfeiting tools, stolen vehicles, and more than $2,600 in cash. Agents also uncovered evidence that Gardner had used the stolen identity of a victim in New Jersey to finance and purchase luxury automobiles at a car dealership in Mobile, causing more than $75,000 in losses. Gardner pleaded guilty to two separate conspiracies to commit bank fraud and aggravated identity theft.
In addition to the 102-month prison term, United States District Judge Terry F. Moorer ordered Gardner to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment, and will be subject to credit restrictions. The court did not impose a fine, but Judge Moorer ordered Gardner to pay $201,293.05 in victim restitution and $300 in special assessments, and forfeited $2,609.50 to the United States.
For their roles in the scheme, the court sentenced Gardner’s codefendants as follows: Reginald Martez Robinson, Jr. (46 months’ imprisonment); Johnathan Earl Kyser (36 months’ imprisonment); Delvin Lee Andrews (33 months’ imprisonment); D’Undra Norwood (24 months’ imprisonment); Travis Ladell Morrissette (13 months’ imprisonment); Jimmy Dejuan Parnell (nine months’ imprisonment); Justin Deandre Betties (six months’ imprisonment); Barbara Jackson (six months’ imprisonment); Kenessa Denise Hackworth (one day in custody and 12 months’ home confinement); Markisha Jakeria Johnson (time served); Danquile Nakrica Westbrook (time served); and Calvin Davis (time served). The court also ordered each of those defendants to serve supervised release terms and pay restitution and special assessments.
Codefendants Jairice Lynn Shelton and Edmund Jamarquis Davis are scheduled to be sentenced in October 2023 and January 2024, respectively.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The United States Postal Inspection Service, United States Secret Service, Mobile Police Department, and Mobile County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Mississippi Man Charged with Conspiracy to Commit Bank FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JOHN SPOSATO, age 72, a resident of Kiln, Mississippi, was indicted for conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 371 and 1344.
According to the indictment, SPOSATO opened a financial account at Keesler Federal Credit Union (“ Keesler”)in the name of Pegasus Consulting and Development, LLC (“Pegasus Consulting”), a company of which he claimed to be President. In early March 2023, SPOSATO received a $10,000.00 check he knew to be counterfeit from a co-conspirator. The check was purportedly drawn on the financial account of a non-profit organization that supported a public library in Florida. On about March 27, 2023, SPOSATO attempted to deposit the counterfeit check into his financial account at Keesler, thereby placing Keesler at risk of civil liability and financial loss. SPOSATO knew both that he was not entitled to the check and had never performed work for the non-profit.
SPOSATO faces a maximum term of imprisonment of five (5) years in prison, up to three (3) years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Probation Office in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
Maryland Resident Charged with Preparing and Submitting Fraudulent Applications for Cares Act Financial AssistanceRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MARCEL GAVIN, age 36, a resident of Odenton, Maryland, was indicted today for conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371 (Count One), and wire fraud, in violation of Title 18, United States Code, Section 1343 (Count Two), for his role in preparing and filing false applications for loans related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
According to the indictment, between about April 19, 2021, and May 20, 2021, GAVIN, his significant other (Shaniqua Wilson), and a third individual, Siedah Eley, recruited friends and family members, primarily via word of mouth and text message, to participate in a scheme to fraudulently obtain money from Paycheck Protection Program (PPP) loans with her assistance. They then created and electronically submitted loan applications, that falsely claimed that each applicant had a sole proprietorship in the beauty industry that generated substantial income from such business. GAVIN, Wilson, and Eley charged some of the applicants she recruited up to approximately $5,000.00, once the PPP loan was funded. Among the individuals for whom they filed a false PPP application was a resident of Metairie, Louisiana, who was then employed with a City of New Orleans agency.
GAVIN faces a maximum term of imprisonment of five (5) years as to Count One and twenty (20) years as to Count Two. GAVIN also faces three years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee per count.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
Man with Lengthy History of Violence Sentenced to More than 15 Years in Federal Prison for Unlawfully Possessing FirearmsRead the Press Release
A man with a lengthy criminal history was sentenced September 27, 2023, to more than 15 years in federal prison.
Marlo Harper, aka Umar Amir Al-Sayyaad Allahdheen, age 46, from Sioux City, Iowa, received the prison term after a March 13, 2023, guilty plea to two counts of possession of a firearm by a felon and drug user and twice violating the Armed Career Criminal Act, a federal law that increases the punishment for violent recidivists. After a jury was selected, but before testimony began, Harper pled guilty and admitted that on two separate occasions in August 2021, he unlawfully possessed firearms.
Evidence in the case revealed on August 10, 2021, Harper was stopped by Sioux City Police for traffic infractions. Upon contact with the occupants in the vehicle, the officer detected an odor of marijuana emitting from the vehicle. The occupants were removed, and a subsequent search of the vehicle was conducted. When Harper exited the vehicle, he admitted having a firearm and a knife on his person. A loaded handgun – with a round in the chamber – was removed from his waistband. Officers also located a fanny pack in the trunk that contained ammunition. Harper also had an open container of alcohol.
On August 24, 2021, Harper was stopped by Iowa State Patrol outside of Sheldon, Iowa. When the State Trooper contacted the occupants, he noted an odor of marijuana emitting from the vehicle. During the traffic stop investigation, approximately 2 grams of marijuana was found, along with a loaded handgun in the center console, which was positioned for easy access by Harper, who was driving the car. Harper also had a set of nunchucks between the driver seat and center console. Three additional firearms were found in the trunk, as well as ammunition and a samurai sword.
Harper’s criminal history includes Assault in the 1st Degree, in Hennepin County, Minnesota; Assault in the Second Degree, in Ramsey County, Minnesota; Two counts of Aggravated Assault (Family Violence), Terroristic Threats, Possession of a Firearm or Knife During the Commission of a Felony and Battery – Family Violence, all in Fulton County, Georgia; and Theft, in Tarrant County, Texas.
Harper was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 198 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
This case was investigated by the Iowa State Patrol, the Iowa Department of Narcotics Enforcement, the O’Brien County Sheriff’s Office, and the Sioux City Police Department. The case was prosecuted by Assistant United States Attorneys Ron Timmons and Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4085.
Follow us on Twitter @USAO_NDIA.
Man indicted for blowing up ATMRead the Press Release
ATLANTA – Abdurrahim Jalal has been indicted for blowing up a bank automated teller machine and for possession of illegal explosive devices.
“The unlawful use and possession of explosives creates a grave danger to our citizens and first responders who must risk their lives to respond to these violent crimes,” said U.S. Attorney Ryan K. Buchanan. “This indictment is the culmination of investigative work conducted by a team of federal and local law enforcement agencies who recovered bombing materials from Jalal’s home and may have prevented additional explosions.”
“The alleged actions of this individual could have led to innocent people being seriously hurt or killed,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This investigation is proof of the strength and tenacity of the FBI and its law enforcement partners in eliminating acts of violence which threaten the communities we serve.”
“ATF will continue to dedicate federal resources in conjunction with crucial Federal and local law enforcement partners to the pursuit of eradicating and forestalling criminal activity in communities we serve,” said ATF Assistant Special Agent in Charge Alicia Jones.
“This indictment comes as a result of the strong partnerships that exist between local, state, and federal agencies. Working together we can continue to keep our streets safe,” said DeKalb Police Chief Mirtha V. Ramos.
According to U.S. Attorney Buchanan, the charges and other information presented in court: At approximately 3:11 a.m. on March 29, 2023, Jalal blew up an ATM at the Bank of America branch located at the North DeKalb Mall in Decatur, Georgia. Jalal took approximately $88,000 from the vault of the machine after the explosion. Investigators identified Jalal and obtained a warrant to search his home. They found additional destructive devices during that search.
Abdurrahim Jalal, 53, of DeKalb County, Georgia, was indicted by a federal grand jury on September 12, 2023, and had his initial appearance on September 27, 2023. Members of the public are reminded that the indictment contains only charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case was investigated by the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, DeKalb County Police Department and the DeKalb County Fire Rescue.
Assistant U.S. Attorney Dash A. Cooper prosecuted the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected].
Man Convicted of Fentanyl Conspiracy Charges, Drug-Linked Shooting Death in University CityRead the Press Release
ST. LOUIS – A man from East St. Louis, Illinois was convicted Friday by a jury in U.S. District Court of 11 felony charges linked to fentanyl trafficking, firearm sales and the shooting death of a man in University City in 2019.
Deoman Reeves, 31, was found guilty of all of the charges he faced: one count of conspiracy to distribute and possess with the intent to distribute in excess of 40 grams of fentanyl, four counts of possession with the intent to distribute fentanyl, three counts of possession of firearms in furtherance of a drug trafficking crime, two counts of being a felon in possession of a firearm and one count of possession of a firearm in furtherance of drug trafficking, resulting in death.
The investigation began with a September 2019 shooting. The University City Police Department requested the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Reeves and his co-defendants later sold fentanyl and firearms to those who were working on behalf of the Bureau of Alcohol, Tobacco, Firearms and Explosives and undercover ATF agents.
The death resulting charge stems from the Oct. 21, 2019 fatal shooting of David Anderson in the 1100 block of Kingsland Avenue. Evidence and testimony presented at trial showed that Reeves and others fired multiple shots at Anderson in retaliation for a shooting in St. Louis County the day before.
Reeves and two others were indicted on Jan. 6, 2020 and arrested eight days later. A fourth person was later added to the indictment. The three others have all pleaded guilty and two await sentencing.
Reeves is scheduled to be sentenced December 28 and faces a life sentence in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the University City Police Department investigated the case. Assistant U.S. Attorneys Paul D’Agrosa and Erin Granger are prosecuting the case.
Louisiana Bounty Hunter Convicted of Federal Kidnapping, Conspiracy Charges in MissouriRead the Press Release
ST. LOUIS – A bounty hunter from Louisiana was convicted of kidnapping and conspiracy charges Thursday for forcibly removing a woman from a St. Peters, Missouri home and taking her across state lines.
Jurors in U.S. District Court in St. Louis took less than two hours to convict Wayne D. Lozier Jr., now 44, of the New Orleans area, of the two felony counts.
Testimony and evidence presented at trial, including from Lozier’s body camera, showed that the victim had an arrest warrant from the 22nd Judicial District Court in St. Tammany Parish for two misdemeanor offenses. Lozier and his partner, Jody L. Sullivan, had been hired by A Affordable Bail Bonds as surety recovery agents to locate and retrieve the victim.
Sullivan rented an SUV and the pair traveled to St. Charles County. On May 9, 2019, both were armed with firearms and Tasers. Neither was licensed by Missouri’s Department of Commerce and Insurance to operate as surety recovery agents within Missouri. Without notifying local law enforcement, the pair went to the St. Peters home. Lozier told the homeowner he didn’t need her permission to enter the house. They went into the basement, where the Louisiana woman was staying. They handcuffed her and transported her without her consent in their SUV, heading for Louisiana, the trial showed.
At a gas station in Sullivan, Missouri the victim pleaded with employees to notify the police after learning that Lozier and Sullivan were not police officers. Lozier shocked the victim multiple times with a Taser and he and Sullivan dragged the victim out of the store by the chain that connected her handcuffs and leg shackles. Lozier told local police that he was a surety recovery agent and was licensed by the state of Louisiana.
While they were still in Missouri, a St. Peters Police Department officer told Lozier on a phone call that he was committing crimes and should return the victim to St. Peters or drop her off at the nearest law enforcement agency, according to testimony and evidence. Lozier refused, instead dropping her off at a Mississippi detention facility before returning home and collecting $500 plus expenses. The victim remained at the detention facility for about a week before she was released.
Sullivan, 56, of the New Orleans area, pleaded guilty Sept. 18, 2023, to the conspiracy and kidnapping charges and admitted unlawfully seizing the woman and transporting her across state lines.
Sullivan is scheduled to be sentenced December 20. Lozier is scheduled to be sentenced January 3. Both charges are punishable by up to life in prison.
The FBI and the St. Peters Police Department investigated the case. Assistant U.S. Attorneys Matthew Martin and Donald Boyce are prosecuting the case.Las Vegas Man Sentenced to Prison for Defrauding Thousands of Victims Out of $3.3 Million in Home Rental SchemeRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced today by United States District Judge Gloria M. Navarro to 44 months in prison followed by three years of supervised release for engaging in a fraudulent scheme that spanned numerous states and defrauded more than 3,500 victims seeking to rent houses out of approximately $3.3 million.
Norbert Ozemena Ikwuegbundo, also known as “David Okon Larry” and “Ezekiel Moses Azizi,” (31), a citizen of Nigeria, pleaded guilty in May 2023 to conspiracy to commit wire fraud, wire fraud, possession of document-making implements and authentication features, and concealment money laundering. In addition to imprisonment, Ikwuegbundo was ordered to pay $2,223,124.69 in restitution to victims.
According to court documents and admissions made by Ikwuegbundo, from about May 2018 until about September 2019, Ikwuegbundo, co-defendant Omoniyi Johnathan Omotere, and others conspired to fraudulently induce victims into sending them money through wire transfers. As part of the fraud, the conspirators manufactured counterfeit drivers’ licenses and other identification cards with fictitious names but bearing their own photographs. The conspirators assumed the identities of homeowners who were advertising on websites to rent their properties and posted imposter rental advertisements online at reduced rent prices, using the names and personal identifiers of the real homeowners — but changing the contact information to email addresses and phone numbers controlled by the conspirators. When contacted by potential renters, the conspirators requested that potential renters wire money for first and last month’s rent. Throughout the duration of the conspiracy, the conspirators used various lulling techniques, such as sending false rental agreements for victims to sign, so that they would have more time to pick up the wired money.
After collecting the fraudulently obtained funds, the defendants laundered proceeds from the scheme by purchasing salvaged titled vehicles in the United States and then shipped to and sold the vehicles in Nigeria. The profit from the sales was deposited into bank accounts controlled by Ikwuegbundo and Omotere. In total, the defendants fraudulently obtained more than $3.3 million from more than 3,500 victims.
United States Attorney Jason M. Frierson of the District of Nevada, Special Agent in Charge Christopher Miller of Homeland Security Investigations (HSI) Las Vegas, and Special Agent in Charge Gregory Anderson of the U.S. Department of State’s Diplomatic Security Service (DSS) Los Angeles Field Office made the announcement.
“Over the course of the conspiracy, the defendant repeatedly deceived and defrauded over 3,500 victims out of a total of $3.3 million,” said United States Attorney Frierson. “This case illustrates our continued efforts with law enforcement partners to pursue individuals who take advantage and steal from others. The restitution ordered will be returned to victims located across the country.”
“Today’s sentence holds Ikwuegbundo accountable for shamelessly defrauding thousands of victims of their hard-earned money,” said Special Agent in Charge Miller. “HSI Las Vegas will continue to prioritize investigations of those who prey on our community and are gratified with today’s sentencing. We appreciate the collaboration with our federal, state and local law enforcement partners to get fraudsters out of our communities.”
This case was investigated by HSI and DSS. Assistant United States Attorney Kimberly Frayn prosecuted the case.
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Kansas Man Pleads Guilty to Bank Robbery of Mound City BankRead the Press Release
KANSAS CITY, Mo. – An Ottawa, Kansas, man who was apprehended after he called a tow truck for his getaway car has pleaded guilty in federal court to robbing a Mound City, Mo., bank.
Marvin J. McWhorter III, 41, pleaded guilty before U.S. District Judge Greg Kays on Thursday, Sept. 28, to one count of bank robbery.
By pleading guilty, McWhorter admitted that he stole $4,445 from Citizens Bank & Trust, 904 State Street in Mound City, on Dec. 21, 2022.
According to his plea agreement, McWhorter approached a teller station at the bank and, while holding what appeared to be a handgun, directed the teller to give him all the money in the drawer. McWhorter ran out of the bank and got into a black Chevrolet Malibu with the word “CHEVY” in block white lettering across the top of the front windshield. Witnesses saw McWhorter drive away from the area.
The next morning, McWhorter called a St. Joseph, Mo., towing company to request a tow for the Malibu, which was in Forest City, Mo., about 13 miles southwest of Mound City. The tow driver picked up McWhorter at a nearby café and went to retrieve the vehicle.
A local public official, who had heard the vehicle description of the bank robbery suspect the day before, recognized McWhorter’s vehicle being towed and contacted law enforcement. The Holt County, Mo., Sheriff’s Department then contacted the tow company. Dispatch contacted the driver of the tow truck by phone to confirm that he was towing a black Chevrolet Malibu, with the word “CHEVY” in block white lettering across the top of the front windshield, through Oregon, Mo. Dispatch also confirmed that McWhorter was with the tow driver in the tow truck. Dispatch directed the tow driver to pull over and wait for law enforcement to arrive.
When the tow driver pulled over, McWhorter attempted to take control of the tow truck. McWhorter fought with the tow driver and a passerby who witnessed the altercation and had stopped to assist. The tow driver and passerby were able to get McWhorter to the ground and hold him until law enforcement arrived.
When officers arrested McWhorter, they found in the tow truck a cooler-type bag that contained $3,813 taken in the bank robbery. Officers also found additional evidence in the Malibu, including a box of 9mm ammunition, but no firearm.
Under federal statutes, McWhorter is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Gregg R. Coonrod. It was investigated by the Missouri State Highway Patrol, the Holt County, Mo., Sheriff’s Department, the Andrew County, Mo., Sheriff’s Department, the Mound City, Mo., Police Department, and the FBI.
Kalispell meth, fentanyl trafficker sentenced to 15 years in prisonRead the Press Release
MISSOULA — A Kalispell man accused of trafficking thousands of fentanyl pills and pounds of methamphetamine in the community was sentenced today to 15 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Justin Jose Romo, 30, pleaded guilty in June to possession with intent to distribute controlled substances.
U.S. District Judge Donald W. Molloy presided.
In court documents, the government alleged that from March 2022 to September 2022, a Northwest Drug Task Force investigation determined that Romo was distributing meth and fentanyl in the Flathead Valley. Investigators learned from sources that Romo was distributing pound quantities of meth, thousands of fentanyl pills and possessed firearms on multiple occasions.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case. The Northwest Drug Task Force conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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KC Man Charged with Three Fentanyl Deaths, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been charged with three fentanyl overdose deaths in Belton, Mo., alongside six other metropolitan area residents indicted by a federal grand jury for their roles in a drug-trafficking conspiracy that included illegal firearms and money laundering.
Tiger Dean Draggoo, 23, his brother, Colt Justin Draggoo, 20, Jose Amparan, also known as “Lil Mex” and “Jose Garcia,” 20, Luis Manuel Morales, also known as “Trulu,” “Lulu,” “Luis,” and “Luis Mor,” 23, all of Kansas City, Mo.; Andrew R.A. Williams, also known as “DrewB Grittin,” 22, of Grandview, Mo.; Alexander D. Barnett, also known as “Alex” and “Cobra,” 22, of Lee’s Summit, Mo.; and Javier Armanmdo Alvarez, also known as “Mexxican,” Gomi,” and “Gummi,” 21, of Kansas City, Kan., were charged in a 13-count superseding indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, Sept. 27. That indictment was unsealed and made public today upon the arrest and initial court appearances of Barnett and Morales. Colt Draggoo also was arrested today and will have an initial court appearance tomorrow.
The superseding indictment replaces the original indictment returned on Feb. 7, 2023, which only charged Tiger Draggoo, and includes additional charges and defendants.
The federal indictment charges Tiger Draggoo with three counts of distributing fentanyl resulting in death. Tiger Draggoo allegedly distributed fentanyl on Sept. 3, 2022, the use of which caused the death of another person. Tiger Draggoo allegedly distributed fentanyl between Aug. 22 and Sept. 13, 2022, the use of which caused the death of another person. Tiger Draggoo allegedly distributed fentanyl between Dec. 7 and 20, 2022, the use of which caused the death of another person.
According to an affidavit filed in support of the original criminal complaint that was filed against Draggoo on Jan. 23, 2023, three Belton teenagers who were associated with Draggoo died from acute fentanyl intoxication. On at least three more occasions, the affidavit says, Belton police officers were called because a juvenile was under the influence of fentanyl (one of those juveniles, who turned 18 after being contacted by police officers, is among the three fentanyl deaths).
The indictment alleges that all seven defendants participated in a conspiracy to distribute fentanyl from Dec. 1, 2021, to May 3, 2023. The indictment also alleges that Tiger Draggoo, Alvarez, Amparan, Morales and Williams participated in a money-laundering conspiracy.
Tiger Draggoo is also charged with one count of possessing fentanyl with the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and one count of possessing an unregistered firearm. According to the indictment, Draggoo was in possession of a Jimenez Arms .380-caliber pistol, an Armscor .45-caliber pistol, a Taurus .357-caliber revolver, a Palmetto State Armory multi-caliber rifle, and a short-barreled Savage 12-gauge on Jan. 20, 2023. Those charges are related to Draggoo’s arrest on the federal complaint. Officers seized the fentanyl and firearms from Draggoo’s residence and vehicle when he was taken into custody.
Additionally, Tiger Dragoo is charged with one count of possessing fentanyl with the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and one count of illegally possessing machine guns. Those charges were basis of the original criminal complaint filed against Draggoo.
According to an affidavit filed in support of that complaint, police officers were conducting surveillance at an apartment complex on Sept. 22, 2022, when Tiger and Colt Draggoo left the apartment and got into a Jeep Renegade. Officers followed the Jeep and saw it commit numerous traffic violations while displaying erratic driving. A Jackson County sheriff’s deputy attempted to conduct a traffic stop, but the vehicle fled from the deputy.
A few minutes later, the Jeep returned to the apartment complex and Tiger and Colt Draggoo entered the apartment. Tiger Draggoo carried a large laundry bag from the apartment and placed it in the backseat of the Jeep. When a Jackson County, Mo., sheriff’s deputy drove into the parking lot, Tiger Draggoo ran back into the apartment building. When officers knocked on the door of Tiger Draggoo’s apartment, the affidavit says, his girlfriend initially told them he wasn’t there. After she allowed officers to enter the apartment, she admitted that Tiger Draggoo had run into the apartment and out the back door.
Officers searched the apartment and found 17 firearms, including two machine guns, ammunition of various calibers, $246,769 in cash, a ballistic vest with plates, a money counter, numerous pills that contained fentanyl, eight suspected LSD tabs, and marijuana. The 17 firearms included a Del-Ton 5.56-caliber rifle (converted into a machine gun), a Glock switch (used to convert a Glock pistol into a machine gun), three Marlin .22-caliber rifles, a Norinco 7.62-caliber rifle, a Mosin-Nagant rifle, an Anderson Manufacturing AM-15 .223-caliber rifle, a Mossberg 12-gauge shotgun, an Armscorp USA .308-caliber rifle, a Century Arms 7.62-caliber rifle, a Herbert Schmidt .22-caliber revolver, a New England Firearms .22-caliber revolver, a Kimber 9mm pistol, a Glock 9mm pistol, a Sig Sauer 9mm pistol, and a Metro Arms .45-caliber pistol.
Williams is also charged with one count of possessing fentanyl with the intent to distribute and one count of possessing firearms in furtherance of a drug-trafficking crime. Williams allegedly was in possession of a Springfield Armory 9mm semi-automatic handgun and a Girsan .45-caliber semi-automatic handgun on April 19, 2023.
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. Attorneys Brad K. Kavanaugh and Robert Smith. It was investigated by the Jackson County Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Belton, Mo., Police Department, the Raymore, Mo., Police Department, the Cass County, Mo., Sheriff’s Department, and the FBI.
Justice Department Sues Colorado for Violating the Americans with Disabilities ActRead the Press Release
The Justice Department sued the state of Colorado today for unnecessarily segregating adults with physical disabilities, including older adults, in nursing facilities in violation of the Americans with Disabilities Act (ADA) and the U.S. Supreme Court’s decision in Olmstead v. L.C. The department previously notified Colorado of its findings of civil rights violations in a March 2022 letter to Colorado Governor Polis. The letter identified steps that Colorado should take to remedy the identified violations.
“Far too often, people with physical disabilities – including older adults – are institutionalized in nursing facilities when they could live in their own homes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is steadfast in its commitment to protect the rights of people with disabilities and ensure the promise of community integration enshrined in the Americans with Disabilities Act.”
The ADA and the Olmstead decision require state and local governments to make their services for people with disabilities available in the most integrated setting appropriate to each person’s needs, regardless of their age or type of disability. These include services that help with bathing, dressing, managing medications and preparing meals. But many Coloradans with physical disabilities are denied a meaningful choice to receive the services they need in their own homes and communities, instead of in nursing facilities.
Many of Colorado’s Medicaid-funded nursing facility residents are interested in moving back to their homes and communities and could live at home successfully if the needed services were provided at home. Yet few Coloradans with physical disabilities who want to move out of nursing facilities, or who are at risk of having to enter nursing facilities, get these community-based State services. Most nursing facility residents are unaware of the services available to help them move to and live successfully in the community.
The Civil Rights Division’s Disability Rights Section investigated this case, with assistance from the U.S. Attorney’s Office for the District of Colorado.
For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov/topics/community-integration/.
For more information on the Civil Rights Division, please visit www.justice.gov/crt.
The letter of findings can be viewed here.
colorado_complaint_filed.pdfJustice Department Secures Settlement in Sexual Harassment Lawsuit Against Koreatown Property Manager and Apartment OwnerRead the Press Release
Settlement agreement can be viewed HERE.
LOS ANGELES – The Justice Department announced today an agreement to resolve a federal lawsuit alleging sexual harassment at an apartment building in Koreatown, where a property manager was accused of violating the Fair Housing Act by sexually harassed multiple female residents over a period of years.
Under the consent order filed today in United States District Court, M&F Development, LLC, the owner of the apartment building on South Western Avenue, has agreed to pay $120,000 to compensate individuals harmed by the harassment by property manager Abraham Kesary. In addition to the compensation payment, M&F Development agreed to pay a $10,000 civil penalty to the United States. The consent order permanently bars Kesary from property management and requires the retention of an independent property manager approved by the Department of Justice for the Koreatown rental property. The consent order also bars future discrimination and retaliation, mandates Fair Housing Act training, and requires extensive monitoring and reporting regarding property management activities and compliance with the terms of the consent order.
The lawsuit, which is part of the Justice Department’s nationwide Sexual Harassment in Housing Initiative, alleged that from at least 2012 until at least 2020, Kesary subjected female residents at the apartment complex to unwanted harassment. The complaint alleged Kesary offered housing-related benefits in exchange for sexual acts, made unwelcome sexual comments and advances, entered female residents’ homes without their permission, and subjected these tenants to unwelcome sexual acts.
“Our office will not stand for unlawful discrimination of any type,” said United States Attorney Martin Estrada. “The lengthy course of sexual harassment against female residents alleged in this case is disturbing and unacceptable. We will continue to be vigilant in holding landlords and property managers accountable for discrimination and harassment, and the Fair Housing Act gives us a powerful tool to seek justice for victims.”
“Tenants have the right to live in their homes free from sexual harassment by their landlords,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously enforce fair housing laws against landlords who prey on vulnerable residents.”
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination may contact the Housing Discrimination Tip Line at 1-833-591-0291. Individuals may also email the Justice Department at [email protected] or submit a report online. Reports also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
Individuals in the seven counties of the Central District of California may file a complaint about housing discrimination or other civil rights violations with the Civil Rights Section, Civil Division of the United States Attorney’s Office by completing and submitting this form (English) (Spanish) by email to [email protected].
Assistant United States Attorney Margaret Chen of the Civil Division’s Civil Rights Section and attorneys from the Housing and Civil Enforcement Section of the United States Justice Department’s Civil Rights Division litigated this matter.
Justice Department Secures Agreement in Sexual Harassment Lawsuit Against California Property Manager and OwnersRead the Press Release
The Justice Department announced today that it has secured a $130,000 agreement resolving allegations that Abraham Kesary, violated the Fair Housing Act by sexually harassing multiple female tenants at the Los Angeles rental property he managed. The settlement also resolves claims against M&F Development LLC, the owner of the property.
“Tenants have the right to live in their homes free from sexual harassment by their landlords,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously enforce fair housing laws against landlords who prey on vulnerable residents.”
“Our office will not stand for unlawful discrimination of any type,” said U.S. Attorney Martin Estrada for the Central District of California. “The lengthy course of sexual harassment against female residents alleged in this case is disturbing and unacceptable. We will continue to be vigilant in holding landlords and property managers accountable for discrimination and harassment and the Fair Housing Act gives us a powerful tool to seek justice for victims.”
Under the agreement, subject to approval by the U.S. District Court for the Central District of California, M&F Development LLC will pay $120,000 to compensate individuals harmed by the harassment and a $10,000 civil penalty to the United States.
In addition, the consent order prohibits Kesary from managing rental housing and requires M&F Development LLC to retain an independent property manager to manage the rental property and to implement non-discrimination policies and complaint procedures to prevent sexual harassment at the property in the future. The order also requires both defendants to take fair housing training.
The lawsuit alleged that Kesary sexually harassed female tenants at 445 S. Western Avenue in Los Angeles since at least 2012. According to the complaint, Kesary offered housing-related benefits in exchange for sexual acts, made unwelcome sexual comments and advances to female tenants, entered the homes of female tenants without their permission and subjected female tenants to unwelcome sexual acts. The lawsuit also names M&F Development LLC as a defendant.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative, the department has filed 36 lawsuits alleging sexual harassment in housing and recovered nearly $11 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. The Civil Rights Division is committed to protecting people from sexual misconduct. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
kesary_filed_proposed_consent_order.pdfJustice Department Awards over $4.4 Billion to Support Community SafetyRead the Press Release
The Justice Department announced yesterday that it is awarding more than $4.4 billion to support state, local, and Tribal public safety and community justice activities. The grants, from the Department’s Office of Justice Programs (OJP), will help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.
More than 40 grants totaling approximately $39 million were awarded to Connecticut state agencies, municipalities, and service organizations. Bridgeport, Bristol, Danbury, East Hartford, Hamden, Hartford, New Britain, New Haven, New London, Norwalk, Norwich, Stamford, Stratford, Waterbury, and West Haven will each receive grants through the Edward Byrne Memorial Justice Assistance Grant (JAG) Program. The full list of Connecticut grant awardees can be found here.
“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”
“These Justice Department grants will help stem violence, solve crimes, assist victims, treat addiction, and support law enforcement throughout our state to keep our officers and the Connecticut communities they serve healthy and safe,” said Vanessa Roberts Avery, U.S. Attorney for the District of Connecticut.
The more than 3,700 OJP grants being awarded this fiscal year will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.
“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”
“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”
“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”
Grants will support five major community safety and justice priorities:
- Awards totaling more than $1 billion will promote safety and strengthen trust, helping communities tackle the proliferation of gun violence in America and restore bonds of trust between community residents and the justice system. Grants will support innovative and evidence-based strategies designed to prevent and reduce violent crime, support the health and safety of law enforcement and public safety professionals, promote rehabilitation and reentry success, and address the rise in hate crimes across the country.
- More than $437 million in grant awards will accelerate justice system reforms designed to achieve equal justice and fair treatment for all. Grants will expand access to services among historically underserved and marginalized communities, reduce counterproductive involvement in the justice system, increase opportunities for diversion, and build pathways to treatment for people with substance use and mental health disorders.
- Over $192 million will improve the fairness and effectiveness of the juvenile justice system by supporting developmentally appropriate and culturally responsive interventions for youth. Funding will ensure that young people are served at home in their communities whenever possible, are equipped to transition to a healthy adulthood free of crime, and are protected from violence and abuse.
- More than $1.7 billion will expand access to victim services by investing in programs that provide trauma-informed and culturally responsive services to victims. Funding will support thousands of local victim assistance programs across the country and victim compensation programs in every state and U.S. territory, while helping these programs build their capacity to reach those disproportionately affected by crime and victimization.
- Over $418 million in awards will advance science and innovation to strengthen the base of knowledge that policymakers and practitioners can use to design and deploy effective community safety strategies. Awards will support research and data collection on a wide range of public safety issues, help maintain timely and accurate criminal history records, and improve the capacity of crime labs and forensic analysts to solve crimes, absolve the innocent, and deliver justice to victims.
In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending.
More information about the awards announced today can be found by visiting www.ojp.gov/funding/fy23awards.
Justice Department Awards over $4.4 Billion to Support Community SafetyRead the Press Release
WASHINGTON – The Justice Department announced today that it is awarding more than $4.4 billion to support state, local, and Tribal public safety and community justice activities. The grants, from the Department’s Office of Justice Programs (OJP), will help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.
“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”
The more than 3,700 OJP grants being awarded this fiscal year will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.
“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”
“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”
“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”
Grants will support five major community safety and justice priorities:
- Awards totaling more than $1 billion will promote safety and strengthen trust, helping communities tackle the proliferation of gun violence in America and restore bonds of trust between community residents and the justice system. Grants will support innovative and evidence-based strategies designed to prevent and reduce violent crime, support the health and safety of law enforcement and public safety professionals, promote rehabilitation and reentry success, and address the rise in hate crimes across the country.
- More than $437 million in grant awards will accelerate justice system reforms designed to achieve equal justice and fair treatment for all. Grants will expand access to services among historically underserved and marginalized communities, reduce counterproductive involvement in the justice system, increase opportunities for diversion, and build pathways to treatment for people with substance use and mental health disorders.
- Over $192 million will improve the fairness and effectiveness of the juvenile justice system by supporting developmentally appropriate and culturally responsive interventions for youth. Funding will ensure that young people are served at home in their communities whenever possible, are equipped to transition to a healthy adulthood free of crime, and are protected from violence and abuse.
- More than $1.7 billion will expand access to victim services by investing in programs that provide trauma-informed and culturally responsive services to victims. Funding will support thousands of local victim assistance programs across the country and victim compensation programs in every state and U.S. territory, while helping these programs build their capacity to reach those disproportionately affected by crime and victimization.
- Over $418 million in awards will advance science and innovation to strengthen the base of knowledge that policymakers and practitioners can use to design and deploy effective community safety strategies. Awards will support research and data collection on a wide range of public safety issues, help maintain timely and accurate criminal history records, and improve the capacity of crime labs and forensic analysts to solve crimes, absolve the innocent, and deliver justice to victims.
As a part of the $4.4 Billion allocated, U.S. Attorney Evans announced that in the Eastern District of Louisiana $12,165,685 have been allocated to the district to support community safety.
Award grantees include:
Terrebonne Parish Sheriff’s Office$20,395
Terrebonne Parish Consolidate$320,721
Terrebonne Parish$17,578
St. Charles Parish Sheriff’s Office$12,811
City of Hammond$19,718
Tangipahoa Parish Sheriff’s Office$74,537
Jefferson Parish Sheriff’s Office$100,404
City of Kenner$16,115
Orleans Parish Sheriff’s Office$3,907,000
Orleans Parish District Attorney’s Office$2,500,000
Orleans Parish District Attorney’s Office$1,400,000
City of New Orleans$131,796
City of New Orleans$388,452
Orleans Parish Sheriff’s Office$985,054
Tulane University$1,250,000
Tulane University
$998,136
St. Tammany Parish Sheriff’s Office$22,968
In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending. More information about the awards announced today can be found by visiting www.ojp.gov/funding/fy23awards.
Justice Department Awards over $4.4 Billion to Support Community SafetyRead the Press Release
SHREVEPORT, La. – The Justice Department has announced that it is awarding more than $4.4 billion to support state, local and Tribal public safety and community justice activities. The grants, from the Department’s Office of Justice Programs (OJP), will help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.
“The fact that nearly $60 million in grant money is being pumped into Louisiana alone is staggering,” said United States Attorney Brandon B. Brown. “These grants will provide much needed funding for our local agencies to continue their work in making our communities a safer place to live. We look forward to continuing our partnerships with these local agencies in that effort.”
“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”
The more than 3,700 OJP grants being awarded this fiscal year will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.
“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”
“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”
“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”
Grants will support five major community safety and justice priorities:
- Awards totaling more than $1 billion will promote safety and strengthen trust, helping communities tackle the proliferation of gun violence in America and restore bonds of trust between community residents and the justice system. Grants will support innovative and evidence-based strategies designed to prevent and reduce violent crime, support the health and safety of law enforcement and public safety professionals, promote rehabilitation and reentry success, and address the rise in hate crimes across the country.
- More than $437 million in grant awards will accelerate justice system reforms designed to achieve equal justice and fair treatment for all. Grants will expand access to services among historically underserved and marginalized communities, reduce counterproductive involvement in the justice system, increase opportunities for diversion, and build pathways to treatment for people with substance use and mental health disorders.
- Over $192 million will improve the fairness and effectiveness of the juvenile justice system by supporting developmentally appropriate and culturally responsive interventions for youth. Funding will ensure that young people are served at home in their communities whenever possible, are equipped to transition to a healthy adulthood free of crime, and are protected from violence and abuse.
- More than $1.7 billion will expand access to victim services by investing in programs that provide trauma-informed and culturally responsive services to victims. Funding will support thousands of local victim assistance programs across the country and victim compensation programs in every state and U.S. territory, while helping these programs build their capacity to reach those disproportionately affected by crime and victimization.
- Over $418 million in awards will advance science and innovation to strengthen the base of knowledge that policymakers and practitioners can use to design and deploy effective community safety strategies. Awards will support research and data collection on a wide range of public safety issues, help maintain timely and accurate criminal history records, and improve the capacity of crime labs and forensic analysts to solve crimes, absolve the innocent, and deliver justice to victims.
In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending. More information about the awards announced today can be found by visiting www.ojp.gov/funding/fy23awards.
An interactive map that shows where grants are going can be found at: Workbook: OJP Awards Dashboard (usdoj.gov).
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Justice Department Awards over $4.4 Billion to Support Community SafetyRead the Press Release
WASHINGTON – The Justice Department announced on Thursday, Sept. 28, that it is awarding more than $4.4 billion to support state, local, and Tribal public safety and community justice activities. The grants, from the Department’s Office of Justice Programs (OJP), will help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.
Montana will receive $19,728,000 in grants in 35 awards from the Justice Department.
“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”
“I am pleased to announce that Montana is receiving nearly $20 million in grant funding, which will further assist our office in making our communities safer, help reduce violent crime, and expand services for victims of crime. This money will provide much needed support to law enforcement and public safety professionals who work hard every day to keep us safe,” U.S. Attorney Laslovich said.
The more than 3,700 OJP grants being awarded this fiscal year will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.
“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”
“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”
“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”
Grants will support five major community safety and justice priorities:
- Awards totaling more than $1 billion will promote safety and strengthen trust, helping communities tackle the proliferation of gun violence in America and restore bonds of trust between community residents and the justice system. Grants will support innovative and evidence-based strategies designed to prevent and reduce violent crime, support the health and safety of law enforcement and public safety professionals, promote rehabilitation and reentry success, and address the rise in hate crimes across the country.
- More than $437 million in grant awards will accelerate justice system reforms designed to achieve equal justice and fair treatment for all. Grants will expand access to services among historically underserved and marginalized communities, reduce counterproductive involvement in the justice system, increase opportunities for diversion, and build pathways to treatment for people with substance use and mental health disorders.
- Over $192 million will improve the fairness and effectiveness of the juvenile justice system by supporting developmentally appropriate and culturally responsive interventions for youth. Funding will ensure that young people are served at home in their communities whenever possible, are equipped to transition to a healthy adulthood free of crime, and are protected from violence and abuse.
- More than $1.7 billion will expand access to victim services by investing in programs that provide trauma-informed and culturally responsive services to victims. Funding will support thousands of local victim assistance programs across the country and victim compensation programs in every state and U.S. territory, while helping these programs build their capacity to reach those disproportionately affected by crime and victimization.
- Over $418 million in awards will advance science and innovation to strengthen the base of knowledge that policymakers and practitioners can use to design and deploy effective community safety strategies. Awards will support research and data collection on a wide range of public safety issues, help maintain timely and accurate criminal history records, and improve the capacity of crime labs and forensic analysts to solve crimes, absolve the innocent, and deliver justice to victims.
In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending. More information about the awards announced today can be found by visiting www.ojp.gov/funding/fy23awards.
OAG/ODAG/OASG/OJP
23-1066
Justice Department Awards over $4.4 Billion to Support Community SafetyRead the Press Release
CHARLOTTESVILLE, Va. – The Justice Department announced today that it is awarding more than $4.4 billion to support state, local, and Tribal public safety and community justice activities. The grants, from the Department’s Office of Justice Programs (OJP), will help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.
“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”
“In the Western District of Virginia, addressing the root causes behind criminal behavior involves impactful diversion initiatives like Adult Drug Courts, which have emerged as catalysts for bolstering community security while curbing repeat offenses through treatment services, defendant supervision, and graduated levels of incentives and sanctions related to program compliance,” United States Attorney Christopher R. Kavanaugh said today.
Through its focus on addressing the root causes contributing to criminal conduct, programs such as Adult Drug Courts play a pivotal role in
The more than 3,700 OJP grants being awarded this fiscal year will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.
“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”
“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”
“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”
Grants will support five major community safety and justice priorities:
- Awards totaling more than $1 billion will promote safety and strengthen trust, helping communities tackle the proliferation of gun violence in America and restore bonds of trust between community residents and the justice system. Grants will support innovative and evidence-based strategies designed to prevent and reduce violent crime, support the health and safety of law enforcement and public safety professionals, promote rehabilitation and reentry success, and address the rise in hate crimes across the country.
- More than $437 million in grant awards will accelerate justice system reforms designed to achieve equal justice and fair treatment for all. Grants will expand access to services among historically underserved and marginalized communities, reduce counterproductive involvement in the justice system, increase opportunities for diversion, and build pathways to treatment for people with substance use and mental health disorders.
- Over $192 million will improve the fairness and effectiveness of the juvenile justice system by supporting developmentally appropriate and culturally responsive interventions for youth. Funding will ensure that young people are served at home in their communities whenever possible, are equipped to transition to a healthy adulthood free of crime, and are protected from violence and abuse.
- More than $1.7 billion will expand access to victim services by investing in programs that provide trauma-informed and culturally responsive services to victims. Funding will support thousands of local victim assistance programs across the country and victim compensation programs in every state and U.S. territory, while helping these programs build their capacity to reach those disproportionately affected by crime and victimization.
- Over $418 million in awards will advance science and innovation to strengthen the base of knowledge that policymakers and practitioners can use to design and deploy effective community safety strategies. Awards will support research and data collection on a wide range of public safety issues, help maintain timely and accurate criminal history records, and improve the capacity of crime labs and forensic analysts to solve crimes, absolve the innocent, and deliver justice to victims.
In the Western District of Virginia, several communities that will receive grant money as part of today’s announcement include, but are not limited to:
- The Alleghany County/City of Covington Adult Drug Court (ACADTC) will receive $999,805 in order to assist in finding housing and transportation, increase the number of visits per week, improve family and peer supports, assist with job training and employment skills, and address the mental health needs of the ACADTC participants. The grant will provide funding for multiple staff positions and operating costs for 48 months.
- Piedmont Regional Community Services (Piedmont) in Martinsville will receives $1 million to expand the adult drug court that supports Henry County. This grant funding will allow Piedmont to expand its capacity to serve an additional 60 participants over the next four years.
In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending. More information about the awards announced today can be found by visiting www.ojp.gov/funding/fy23awards.
Justice Department Awards More Than $1.4 Million to Public Safety Operations in Southern IllinoisRead the Press Release
FAIRVIEW HEIGHTS, Ill. – The Office of Justice Programs (OJP) announced five Metro East entities as recipients for a combined $1.4 million in federal funding to support local public safety and community justice efforts.
“In addition to prosecuting violators of federal law, the Justice Department and the funding awarded by OJP will help law enforcement officials in southern Illinois to have more resources to curb violent crime,” said U.S. Attorney Rachelle Aud Crowe. “I commend this investment in public safety.”
Awards granted in the Southern District of Illinois totaled $1,417,432.
The City of Alton was awarded $800,000 from the Smart Policing Initiative Grant Program to expand License Plate Readers (LPRs) and other camera technology to help reduce violent crime and vehicle thefts.
The City of Collinsville received a $299,719 grant from the Rural and Small Department Violent Crime Reduction Program to help police develop stronger investigative capacities. The project aims to add surveillance and forensic technology with LPRs.
Hoyleton Youth and Family Services in Fairview Heights received a total of $226,153 from the Project Safe Neighborhoods Formula Grant Program. Hoyleton officials will serve as the lead social service provider and fiscal agent over the funds to assist law enforcement operations through the Illinois State Police’s Public Safety Enforcement Group in East St. Louis.
Officials awarded a combined $91,560 to the City of Alton, Madison County and St. Clair County through the Edward Byrne Memorial Justice Assistance Grant program to offer funds for police equipment purchases and help support community safety.
In total, the Justice Department awarded more than $4.4 billion nationwide to support community safety efforts. Visit the OJP website for the complete list of grantees as well as more information on the programs.
Jefferson Parish Man Pleads Guilty to Federal Drug Trafficking CrimesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that FLOYD ROBERTSON, age 27, from Jefferson Parish, pled guilty on September 28, 2023 to three counts of distribution of methamphetamine, and one count of distribution of a substance containing both heroin and fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 841(b)(1)(C). His sentencing is set for January 4, 2024.
According to court documents, on three separate occasions between February and June 2021, Drug Enforcement Administration agents conducted controlled purchases of narcotics from ROBERTSON. During the transactions, ROBERTSON distributed more than fifty (50) grams of methamphetamine and a quantity of a mixture and substance containing a detectable amount of heroin and fentanyl.
At sentencing for Counts One, Two, and Three, ROBERTSON faces a minimum of ten (10) years up to a maximum term of life imprisonment, a maximum fine of up to $10,000,000.00, at least five (5) years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee per count, pursuant to Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A). As to Count Four, ROBERTSON faces a maximum of twenty (20) years imprisonment, a fine of up to $1,000,000.00, at least three (3) years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee, pursuant to Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
This case was investigated by the U.S. Drug Enforcement Administration and the Jefferson Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney Nolan D. Paige, Chief of the Narcotics Unit.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty beyond a reasonable doubt:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Sept. 28 was:
Garrell Robert Snell, 33, of Hardin, on charges of second-degree murder and use of a firearm in relation to a crime of violence. If convicted of the most serious crime, Snell faces a maximum of life imprisonment, a $250,000 fine and five years of supervised release. Snell was detained pending further proceedings. The Bureau of Indian Affairs conducted the investigation. PACER case reference. 23-113.
Brian Allen Kruger, 61, of Lodge Grass, on charges of assault of a dating or intimate partner resulting in substantial bodily injury. If convicted of the most serious crime, Kruger faces a maximum of five years imprisonment, a $250,000 fine and three years of supervised release. Kruger was detained pending further proceedings. The Bureau of Indian Affairs conducted the investigation. PACER case reference. 22-148.
Appearing on Sept. 26 was:
Marilee Dawn Hoffman, 36, a transient, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth and distribution of meth. If convicted of the most serious crime, Hoffman faces a mandatory minimum of 10 years to life imprisonment, a $10 million fine and at least five years of supervised release. Hoffman was released pending further proceedings. The Drug Enforcement Administration conducted the investigation. PACER case reference. 23-93.
Appearing on a criminal complaint on Sept. 25 was:
Luke Dovel, 28, of Billings, on charges of possession with intent to distribute controlled substances. If convicted of the most serious crime, Dovel faces a mandatory minimum of 10 years to life imprisonment, a $10 million fine and at least five years of supervised release. Dovel was detained pending further proceedings. PACER case reference. 23-143.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indiana Woman Sentenced to 18 Years in Prison for Killing Her Love InterestRead the Press Release
WASHINGTON – Nijinsky Dix, 40, of South Bend, Indiana., was sentenced today to 18 years in prison for fatally shooting a man she was casually dating. In addition to the prison term, Superior Court Judge Marisa J. Demeo ordered five years of supervised release. The sentence was announced by U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Dix pleaded guilty, on February 13, 2023, to second degree murder while armed. According to the government’s evidence, at approximately 5:26 p.m. on November 14, 2020, officers with the MPD responded to the report of a woman with a gun and the sound of gunshots in a residential building in the 1000 block of 4th Street, S.W. Dix, a PhD student and an employee of the University of Notre Dame, was found holding a .9 mm handgun and kneeling at the feet of 44-year old Terry Hickman, who was lying face down on the floor. Hickman had been shot multiple times in the head and body and died.
An MPD Investigation determined that in late February 2020, Dix met Mr. Hickman in a bar near South Bend and the two began a casual pandemic relationship that lasted for several months. Mr. Hickman, who was recently divorced, did not want a long-term relationship with Dix. The defendant could not accept the boundaries. She insinuated herself into Mr. Hickman’s life, reaching out to members of his family for support and advice, offering money, trips, and jewelry to the victim and the victim’s daughter. Mr. Hickman tried to end the relationship in August of 2020, blocking Dix’s number on his phone and asking her not to contact him. Dix ‘s obsession with Mr. Hickman continued into the fall of 2020 and she became jealous of other women she believed had his interest. At one point, Dix told a family member that she had purchased a gun in Florida. On September 6, 2020, Dix flew to D.C. from Indiana and arrived unannounced at Mr. Hickman’s apartment. In the days leading up to Mr. Hickman’s death in November of 2020, there were text messages between the victim and a woman with whom he was trying to establish a business relationship. On November 12, 2020, Ms. Dix texted a friend and expressed anger that Mr. Hickman might be using her to have a relationship with the other woman, writing: “I will f**k him up if he tries to connect me with a broad he’s trying to f**k or has f**ked. I will kill him. Literally.” Two days later, on November 14, 2020, Dix departed South Bend, Indiana, carrying a passport. She checked an unloaded firearm and a box of .9 mm ammunition in her luggage. She landed in Washington, D.C., rented a car, drove to Mr. Hickman’s apartment, confronted him, and fatally shot him.
This case was investigated by the Criminal Investigation Division Homicide Branch of the Metropolitan Police Department. Assistance was provided by the Office of the Chief Medical Examiner. The case was handled by Assistant U.S. Attorney John Interrante, who investigated and prosecuted the case.
Illinois Man Sentenced to Three Years in Federal Prison for Being a Felon in Possession of FirearmsRead the Press Release
A felon who possessed firearms was sentenced on September 28, 2023, to three years in federal prison.
Jamie Swanson, age 32, of Colona, Illinois, received the sentence after an April 11, 2023, guilty plea to one count of being a felon in possession of firearms. At the plea hearing, Swanson admitted that, in March 2022, he possessed a pistol after having been convicted of a felony. The record at the sentencing hearing established that Swanson possessed eight firearms.
Swanson was sentenced in Cedar Rapids by Chief United States District Court Judge Leonard T. Strand. Swanson was sentenced to 36 months’ imprisonment. He must also serve a two-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Anamosa Police Department, the Jones County Sheriff’s Office, the Benton County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Iowa Division of Criminal Investigation.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 22-100.
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IRS Consultant Charged with Disclosing Tax Return Information to News OrganizationsRead the Press Release
An Internal Revenue Service (IRS) consultant was charged today with disclosing tax return information without authorization.
According to court documents, Charles Littlejohn, 38, of Washington, D.C., while working at the IRS as a government contractor, stole tax return information associated with a high-ranking government official (Public Official A) and disclosed it to a news organization (News Organization 1). Littlejohn also stole tax return information for thousands of the nation’s wealthiest individuals, and disclosed this tax return information to another news organization (News Organization 2).
Littlejohn is charged with one count of unauthorized disclosure of tax returns and return information. If convicted, he faces a maximum penalty of five years in prison.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and Deputy Inspector General for Investigations Trevor Nelson of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
TIGTA is investigating the case.
Trial Attorneys Lauren Castaldi and Jonathan E. Jacobson of the Criminal Division’s Public Integrity Section are prosecuting the case, with substantial assistance from Assistant U.S. Attorney Eleanor Hurney for the Northern District of West Virginia.
A criminal information is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Greenbrier County Man Sentenced to 14 Years in Prison for Child Pornography CrimesRead the Press Release
BECKLEY, W.Va. – Jason Shortridge, 40, of Ronceverte, was sentenced today to 14 years in prison, to be followed by 15 years of supervised release, for possession and attempted distribution of child pornography. Shortridge must also register as a sex offender and pay restitution.
A federal jury found Shortridge guilty of both counts on June 10, 2022, following a four-day trial. According to court documents and evidence presented at trial, on May 1, 2019, Shortridge downloaded child pornography and made it available for sharing online using a peer-to-peer file sharing program. Law enforcement subsequently executed a search warrant at Shortridge’s residence and seized a computer belonging to Shortridge.
A forensic examination of the computer located hundreds of images of child pornography, primarily from the deleted space of the computer. Two computer forensic experts testified that during their examination of Shortridge’s computer, they recovered child pornography as well as search terms used to actively search for child pornography. Evidence showed that Shortridge possessed over 600 computer graphic image files containing images and videos of child pornography involving prepubescent minors.
“This defendant caused substantial harm, as possessing child pornography encourages and records the sexual exploitation and rape of children,” said United States Attorney Will Thompson. “Today’s sentence reflects the severity of that harm.”
Thompson commended the investigative work of the Kanawha County Sheriff’s Office, the West Virginia State Police, and the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Ryan Blackwell, Monica D. Coleman and Francesca C. Rollo prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-223.
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Fort Dodge Man Sentenced to 17 years in Federal Prison for Meth and Firearm ConvictionsRead the Press Release
A man who conspired to distribute methamphetamine and illegally possessed a firearm was sentenced on September 29, 2023, in federal court in Sioux City.
Jose Acosta Abadia, Jr., 41, from Fort Dodge, Iowa, pled guilty on April 28, 2023, to conspiracy to distribute methamphetamine and being a prohibited person in possession of a firearm. Abadia was previously convicted of Third Degree Burglary; Possession of a Controlled Substance; and three convictions for Assault While Using or Displaying a Dangerous Weapon. The assault convictions involved a machete and knife. These convictions prohibit a person in Iowa from possessing a firearm.
Evidence at the plea and sentencing hearings showed that from February 2022 through June 2022, Abadia and others conspired to distribute more than seven pounds of methamphetamine. During that time, on three occasions, Abadia sold methamphetamine to an individual cooperating with law enforcement. The sales totaled over 400 grams of methamphetamine and occurred in Fort Dodge, Iowa. During a search of Abadia at arrest, law enforcement found a 1/2 pound of methamphetamine and a stolen semi-automatic handgun he had possessed.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Abadia was sentenced to 17 years’ imprisonment and must serve a 5-year term of supervised release following imprisonment. There is no parole in the federal system. Abadia remains in custody of the United States Marshals Service until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Iowa Division of Narcotics Enforcement, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Fort Dodge Police Department, Webster County Sheriff’s Office, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-3030.
Follow us on Twitter @USAO_NDIA.
Former Senior Executive in College Admissions Case Sentenced for Tax Fraud in Connection with Payments to Secure Son’s Admission to USCRead the Press Release
BOSTON – A private-equity investor and former senior Staples executive was sentenced today in federal court in Boston for falsely claiming payments he made to secure the admission of his son to the University of Southern California (USC) were deductible from his taxes as a business expense and a charitable contribution.
John Wilson, 64, of Lynnfield, Mass., was sentenced by U.S. District Court Judge Leo T. Sorokin to one year of probation, with the first six months to be served in home detention, and 250 hours of community service. Wilson was also ordered to pay a fine of $75,000 and restitution in the amount of $88,546.
In October 2021, Wilson was convicted by a federal jury of one count of conspiracy to commit mail and wire fraud and honest services mail and wire fraud; one count of conspiracy to commit federal programs bribery; three counts of wire fraud and honest services wire fraud; two counts of federal programs bribery; and one count of filing a false tax return. He was subsequently sentenced in February 2022 to 15 months in prison, two years of supervised release, 400 hours of community service and ordered to pay a fine of $200,000 and restitution in the amount of $88,546.
In May 2023, the First Circuit Court of Appeals affirmed the conviction for filing a false tax return and vacated and remanded the remaining counts of conviction.
According to evidence presented at trial, in 2013, Wilson agreed to pay William “Rick” Singer $220,000 to facilitate his son’s admission to USC as a purported water polo recruit in exchange for payments to the water polo team account. Wilson requested that Singer provide him with a fake invoice for business consulting fees so that he could make the payments using his private investment firm’s corporate account. Wilson asked, “Can we make it for consulting or whatever from The Key so that I can pay it from the corporate account?” After Wilson’s son was accepted to USC, Wilson used his firm’s corporate account to wire $100,000 to Singer’s sham charity, the Key Worldwide Foundation, $100,000 to Singer’s for-profit company, The Key, and $20,000 directly to Singer. Wilson falsely deducted part of the payments as a business expense and the remainder as a charitable contribution. In 2018, Wilson approached Singer again about securing the admission of his two daughters to college as purported athletic recruits in sports they did not play at the collegiate level. Wilson once again asked Singer whether there was “any way” to make the payments “tax deductible as like donations to the school.”
On Jan. 4, 2023, Singer was sentenced to 42 months in prison after previously pleading guilty.
Further information on the College Admissions Case is available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Terry Harris, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Eastern Regional Office made the announcement today. Assistant U.S. Attorneys Stephen E. Frank, Leslie A. Wright, Kristen A. Kearney and Ian Stearns of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Former New York City Police Officer Sentenced to 15 Years for Sexual Exploitation of Two Minors and Possession and Receipt of Child PornographyRead the Press Release
Earlier today, in federal court in Brooklyn, Timothy Martinez was sentenced by United States District Judge Frederic Block to 15 years in prison for two counts of sexual exploitation and attempted sexual exploitation of a minor, one count of attempted receipt of child pornography and one count of possession of child pornography. Martinez was employed as a police officer by the New York City Police Department and immediately prior to his arrest, was a sergeant in the U.S. Army Reserves. Martinez was convicted by a federal jury in May 2023 following a one-week trial.
Breon Peace, United States Attorney for the Eastern District of New York, Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York, and Edward A. Caban, Commissioner, New York City Police Department (NYPD), announced the sentence.
“The defendant, a former New York City police officer and an Army reservist, was a predator hiding in plain sight, who preyed on vulnerable victims he believed had been sexually abused,” stated United States Attorney Peace. “For these unconscionable, disgraceful crimes, today’s substantial jail sentence is not only well-deserved, but necessary to protect the community.”
“As a police officer, Timothy Martinez pledged to keep the people of New York City safe from predators, but instead became one himself. Today, justice is served as he finds himself behind bars," stated HSI New York Special Agent-in-Charge Arvelo. “HSI New York is proud to have had a hand in taking this dangerous man off the streets.”
“Today’s sentence sends the unequivocal message that no one is above the law,” stated NYPD Commissioner Caban. “Mr. Martinez’ reprehensible behavior violated his sworn oath as a police officer, breached the public trust, and tarnished the shield he once wore. The NYPD and our law enforcement partners remain steadfast in our commitment to identify and hold accountable all such criminal predators. I thank HSI and the U.S. Attorney for the Eastern District of New York for their important work on this case.”
Between October 2016 to March 2017, Martinez engaged in live video sex chats with Jane Doe-1, who was then 16-years old. Additionally, between September 3, 2012, and November 2016, Martinez engaged in live video sex chats with Jane Doe-2, starting when she was 13-years old. During some of those video chats, he convinced both Jane Doe-1 and Jane Doe-2 to show him their nude bodies and perform sexual acts. Martinez also attempted to purchase child pornography from an individual who he believed was a 14-year-old girl. Finally, Martinez possessed hundreds of still images and several videos of child pornography, including images and videos of known victims of child abuse.
This prosecution is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Department of Justice Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Assistant United States Attorneys William P. Campos and Chand W. Edwards-Balfour are in charge of the prosecution with the assistance of Paralegal Specialist Allison Henry and the Victim Witness Team including Coordinator Lisa Foster, Lillian Tejada and Gladian Rivera.
The Defendant:
TIMOTHY MARTINEZ
Age: 43
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-98 (S-2) (FB)
Former Journalist Sentenced for Possessing Child Sexual Abuse MaterialRead the Press Release
ALEXANDRIA, Va. – An Arlington man was sentenced today to 72 months in prison for transportation and possession of child sexual abuse material.
According to court documents, while visiting South Carolina in February 2020, James Gordon Meek, 53, used an online messaging platform on his iPhone to send and receive images and videos depicting minors engaged in sexually explicit conduct, and to discuss his sexual interest in children. Some of the images and videos depicted prepubescent minors and minors under the age of 12, including an infant being raped. Meek brought the iPhone containing the child sexual abuse material back with him when he returned to Virginia. Additionally, Meek possessed multiple electronic devices containing images and videos of minors engaged in sexually explicit conduct.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorney Zoe Bedell and Trial Attorney Whitney Kramer for the Department of Justice’s Child Exploitation and Obscenity Section prosecuted the case.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking. Valuable assistance was provided by the Arlington County Police Department.
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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-65.
Former District of Columbia Fire/EMS Employee Sentenced in Bribery Scheme Involving Undelivered GoodsRead the Press Release
WASHINGTON—Charity Keys, 45, of Bowie, Maryland, was sentenced today to 12 months in prison for engaging in a scheme – with a co-worker - to defraud the District of Columbia Fire and Emergency Medical Services Department (FEMS). Keys accepted more than $42,500 in kickbacks from a contractor in exchange for directing purchase agreements and orders to the contractor and then falsely certifying that goods that FEMS had paid for had been delivered when, in fact, they had not.
The sentence was announced by U.S. Attorney Matthew M. Graves, Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office’s Criminal and Cyber Division, and Daniel W. Lucas, Inspector General for the District of Columbia.
Keys, who was a supply management specialist for FEMS, pleaded guilty to a federal bribery charge on July 18, 2022, in U.S. District Court for the District of Columbia. In addition to the prison term, U.S. District Court Judge Amit P. Mehta ordered 36 months of supervised release with the first six months on home confinement, restitution in the amount of $257,680, a $42,500 forfeiture money judgment, and 100 hours of community service. Her co-defendant, Louis “Joey” Mitchell, III, was sentenced on September 16, 2022, to 34 months in prison.
Keys’ responsibilities included procuring office supplies and other goods for the department. According to the court documents, between 2016 and 2020, Keys and Mitchell, 51, who was an FEMS warehouse supply technician, engaged in a bribery scheme with a contractor whose company was an approved vendor for various supplies. Keys and Mitchell solicited and received bribes from the contractor on at least seven occasions. In exchange, Keys and Mitchell directed purchase orders to the contractor’s company and confirmed delivery and payment for goods that the company did not provide. As a result of the bribery scheme, FEMS paid the company approximately $250,000 for goods that never were delivered. Keys personally collected at least $42,500 in bribes from the contractor.
Law enforcement opened an investigation after FEMS officials discovered procurement anomalies and referred the matter to the District of Columbia Office of the Inspector General and the FBI. Mitchell and Keys were arrested on February 10, 2022.
This case was investigated by FBI’s Washington Field Office and D.C. Office of Inspector General. It was prosecuted by Assistant U.S. Attorneys Elizabeth Aloi and Christopher R. Howland in the Fraud, Public Corruption, and Civil Rights section.
Former Chief Operating Officer of Area Pain Clinics IndictedRead the Press Release
CHARLOTTESVLLE, Va. – A federal grand jury returned an indictment this week charging the former chief operating officer of area pain clinics with three conspiracy counts for her alleged involvement in health care fraud and illegal drug distribution.
Jennifer Ann “Jen” Adams, 50, of Mount Pleasant, South Carolina, is charged with one count of conspiring to commit health care fraud, one count of conspiring to distribute medically illegitimate Schedule II controlled substances, and one count of conspiring to use the DEA registration number of another.
“We face a moment in our country where more than 100,000 of our fellow Americans die each year from drug overdoses,” United States Attorney Christopher R. Kavanaugh said today. “We must do all we can to support those battling addiction disorders and prosecute those who prey on this disease.”
“My office's commitment to holding bad actors accountable for their role in exacerbating the opioid epidemic remains unyielding. With the support of our federal partners, Virginia will continue to prosecute those who take advantage of their fellow citizens for their own selfish benefit, decimating lives in the process,” said Attorney General Jason Miyares.
“Our top priority is combatting the current fentanyl-fueled poisoning crisis and related violence in our communities, especially because many of the people who died from fentanyl had no idea they have even taken it. Healthcare providers are responsible for prescribing and dispensing medications to meet the health needs of our citizens, while being vigilant for any signs of controlled substance diversion or misuse. Our team is committed to protecting all Americans' safety and health, including ensuring that all licensed professionals comply with the law and report dangerous behaviors,” mentioned Jarod Forget, Special Agent in Charge of the DEA Washington Division.
“Health care professionals who exploit opioid addiction for their own financial gain do so at the risk of endangering their patients as well as undermining federal health care programs and public health efforts to address the opioid epidemic,” said Maureen Dixon, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of the Inspector General. “We will continue working with our law enforcement partners to ensure that bad actors are held accountable for such egregious disregard for patient safety and well-being.”
According to court documents, Adams served as the chief operating officer (COO) and practice manager for several pain clinics throughout Central and Southwest Virginia. These clinics were located in Lynchburg, Madison Heights, Woodlawn, Blacksburg, and Christiansburg.
The clinics represented themselves as largely focused on pain management, which involved the prescribing of Schedule II opioids, as well as opioid addiction treatment, which involved prescribing Suboxone and other drugs.
The indictment alleges that Adams permitted medical providers who lacked DEA registration numbers to use the registration numbers of others. She did so by instructing employees to continue to use the registration numbers of doctors who were not present and by assisting in making payments to doctors who were not present for the use of their registration numbers.
Adams was aware when clinic employees knowingly wrote prescriptions for Schedule II and Schedule III controlled substances to patients who exhibited warning signs of drug abuse, drug addiction, and drug diversion.
In addition, Adams allowed employees who lacked medical training, experience, and licensing to provide medical treatment and to make and influence medical decisions.
Adams was initially arrested in South Carolina in early September on a criminal complaint.
The Drug Enforcement Administration, the U.S. Department of Health and Human Services – Office of the Inspector General, the Virginia State Police, and the Virginia Attorney General’s Office - Medicaid Fraud Control Unit are investigating the case.
Assistant U.S. Attorneys S. Cagle Juhan and Jason M. Scheff, and Special Assistant U.S. Attorney Janine M. Myatt, Assistant Attorney General with the Virginia Attorney General’s Office, are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Boston Bank Branch Manager Sentenced for Bank Fraud SchemeRead the Press Release
BOSTON – The former branch manager for a Boston bank was sentenced today for stealing over $100,000 in funds from customer bank accounts.
Nathan Wadsworth, 32, of Syracuse, N.Y., was sentenced by U.S. District Judge Leo T. Sorokin to 25 months in prison and three years of supervised release. Wadsworth was also ordered to pay restitution and forfeiture in the amount of $121,000. In June 2023, Wadsworth pleaded guilty to one count of bank fraud.
From June 2020 through November 2021, Wadsworth was employed as a branch manager for PNC Bank in Boston. Beginning in or around March 2021, Wadsworth used his position to identify dormant accounts of foreign account holders, transferred the funds in those dormant accounts to a new account he opened in the customers’ names and then moved the funds to his own accounts for personal use. In total, Wadsworth stole approximately $121,000 in customer funds. All the funds have since been repaid by PNC to the affected customers.Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. PNC Bank cooperated with the government’s investigation. Assistant U.S. Attorney Victor A. Wild of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Florida Men Charged in Multimillion-Dollar Tax Refund Fraud SchemeRead the Press Release
A federal grand jury in Orlando returned an indictment, unsealed yesterday, charging three Florida men with crimes related to their respective roles in a tax refund fraud scheme.
According to the indictment, from 2015 to 2018, Christopher Johnson, of Orlando, and Jasen Harvey, of Tampa, allegedly conspired to promote a scheme in which Harvey and others prepared returns for clients falsely reporting large amounts of income tax withholdings to the IRS, resulting in tax refunds to which the clients were not otherwise entitled. Johnson and Harvey allegedly charged each client a fee per return – Johnson allegedly did not report his portion of those fees on his personal tax returns.
The indictment also charged that in January 2020, a federal judge issued an order enjoining Harvey from preparing tax returns for others but, despite the court’s injunction, Harvey allegedly continued to prepare and file returns from 2020 to 2021.
In addition, the indictment alleges that Arthur Grimes, of Orlando and Ocoee, Florida, participated in the scheme and caused to be filed four false income tax returns prepared by Harvey. When the IRS attempted to recover a refund allegedly issued to Grimes based on a false income tax return, Grimes allegedly (1) made false statements to an IRS revenue officer, (2) submitted false documents to the IRS, (3) transferred funds to a nominee bank account and (4) otherwise obstructed IRS collection efforts.
Johnson, Harvey and Grimes are each charged with aiding in the preparation of false tax returns, which carries a maximum statutory penalty of three years in prison; Johnson and Harvey are charged with conspiring to defraud the United States, which carries a maximum statutory penalty of five years in prison; Johnson is charged with filing false personal tax returns, which carries a maximum statutory penalty of three years in prison; Harvey is charged with criminal contempt, which carries a maximum statutory penalty of life in prison; and Grimes is charged with corruptly endeavoring to obstruct the due administration of the internal revenue laws, which carries a maximum statutory penalty of three years. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Melissa Siskind, Jeffrey McLellan and Caroline Pearson of the Tax Division and Assistant U.S. Attorney Diane Hu for the Middle District of Florida are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Florida Men Charged in Multimillion-Dollar Tax Refund Fraud SchemeRead the Press Release
A federal grand jury in Orlando returned an indictment, unsealed yesterday, charging three Florida men with crimes related to their respective roles in a tax refund fraud scheme.
According to the indictment, from 2015 to 2018, Christopher Johnson, of Orlando, and Jasen Harvey, of Tampa, allegedly conspired to promote a scheme in which Harvey and others prepared returns for clients falsely reporting large amounts of income tax withholdings to the IRS, resulting in tax refunds to which the clients were not otherwise entitled. Johnson and Harvey allegedly charged each client a fee per return – Johnson allegedly did not report his portion of those fees on his personal tax returns.
The indictment also charged that in January 2020, a federal judge issued an order enjoining Harvey from preparing tax returns for others but, despite the court’s injunction, Harvey allegedly continued to prepare and file returns from 2020 to 2021.
In addition, the indictment alleges that Arthur Grimes, of Orlando and Ocoee, Florida, participated in the scheme and caused to be filed four false income tax returns prepared by Harvey. When the IRS attempted to recover a refund allegedly issued to Grimes based on a false income tax return, Grimes allegedly (1) made false statements to an IRS revenue officer, (2) submitted false documents to the IRS, (3) transferred funds to a nominee bank account and (4) otherwise obstructed IRS collection efforts.
Johnson, Harvey and Grimes are each charged with aiding in the preparation of false tax returns, which carries a maximum statutory penalty of three years in prison; Johnson and Harvey are charged with conspiring to defraud the United States, which carries a maximum statutory penalty of five years in prison; Johnson is charged with filing false personal tax returns, which carries a maximum statutory penalty of three years in prison; Harvey is charged with criminal contempt, which carries a maximum statutory penalty of life in prison; and Grimes is charged with corruptly endeavoring to obstruct the due administration of the internal revenue laws, which carries a maximum statutory penalty of three years. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Roger B. Handberg for the Middle District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Melissa Siskind, Jeffrey McLellan and Caroline Pearson of the Tax Division and Assistant U.S. Attorney Diane Hu for the Middle District of Florida are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Ferry County Hospital District Agrees to Pay $15,000 Penalty and Implement Corrective Actions to Address Improper Opioid Dispensing Practices at Republic PharmacyRead the Press Release
Spokane, WA – The Ferry County Hospital District agreed to pay a $15,000 Controlled Substances Act penalty and to institute corrective actions in regards to opioid prescribing practices at Republic Drug Store, a pharmacy in Republic, Washington, that Ferry County Hospital District purchased in January 2021 and has continued to operate since that time, announced Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington.
To protect the public, the Controlled Substances Act and its implementing regulations place legal responsibilities on medical professionals to ensure that opioid medications and other controlled substances are prescribed, dispensed, and used for medically-appropriate purposes and in a safe manner. The responsibility for the proper prescribing and dispensing of controlled substances is upon the prescribing practitioner, but a corresponding responsibility rests with the pharmacist who fills the prescription to ensure that prescriptions are legitimate, safe, and medically appropriate. This responsibility includes addressing and resolving “red flags”, that is, indications that a particular prescription may be unsafe or medically inappropriate, by obtaining additional information before filling the prescription.
In the settlement announced today, Ferry County Hospital District admitted that, between October 2017 and November 2021, Republic Drug Store and its pharmacists and employees did not always appropriately exercise their corresponding responsibility in filling prescriptions for opioids and other controlled substances. Ferry County Hospital District admitted that Republic Drug Store filled prescriptions that contained “red flags”, i.e., indications of possible fraud, drug-seeking, lack of medical necessity, potential for abuse or health risk, or potential for drug diversion into the community, without appropriately resolving those red flags prior to dispensing. Ferry County Hospital District further admitted that these red flags included: (1) numerous patients for whom Republic Drug Store filled prescriptions for a dangerous and medically-inappropriate combination of drugs known as the “holy trinity” (an opioid, a benzodiazepine, and a muscle relaxant taken in tandem), as well as other dangerous combinations; (2) high doses of opioids, including patients prescribed opioid doses far in excess of guidelines promulgated by the Centers for Disease Control (CDC); (3) fraudulent prescriptions purportedly issued by physicians who were no longer practicing medicine or who had their licenses suspended or revoked; (4) early refill prescriptions that Republic Drug Store filled with no explanation of why the patient had exhausted the prior month’s supply more than a week early; and (5) prescriptions written by naturopathic doctors who did not have the medical authority to prescribe controlled substances.
“Pharmacies, such as Republic Drug, play a critical role in keeping our communities safe and strong,” said U.S. Attorney Waldref. “Pharmacies serve a vital gatekeeper function in keeping our residents safe and healthy, preventing the diversion of dangerous drugs, and combatting addiction. I’m grateful that Ferry County Hospital District accepted responsibility and has entered into a robust agreement with the Drug Enforcement Administration (DEA) to ensure that it complies with its gatekeeper function and obligations going forward.”
In addition to the $15,000 civil penalty, Ferry County Hospital District has entered into a Memorandum of Agreement (MOA) with the DEA concerning Republic Drug Store. Under the MOA, Republic Drug Store agreed to resolve all “red flag” prescriptions prior to dispensing any controlled substances. Republic Drug Store is also required to conduct quarterly physical inventory audits and provide those to the DEA. These audits must be performed by a team that includes a licensed pharmacist. Additionally, Republic Drug Store is required to provide training for its employees on how to detect and prevent filling of fraudulent or medically inappropriate prescriptions. Finally, Republic Drug Store further agreed to review and update its controlled substance policies and procedures to ensure compliance with the Controlled Substances Act going forward.
“This resolution would not have been possible without the exceptional investigative work by DEA Seattle Field Division’s Diversion Group, and I am grateful for our longstanding and continuing partnership,” stated U.S. Attorney Waldref. “We are committed to working hand-in-glove with DEA Diversion Group and our law enforcement partners to protect our communities and public health and safety.”
“DEA’s core mission is to protect Americans and we need our partners in the healthcare community to help us by following the rules. When they do not, we hold them accountable, not to punish, but to encourage their cooperation and ensure that they are doing their part to keep people safe,” said David F. Reames, Special Agent in Charge, DEA Seattle Field Division. “We deeply appreciate our partnership with the United States Attorney’s Office in the Eastern District of Washington, without whom this success would not have been possible.”
The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington and DEA’s Seattle Field Division, Diversion Group. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene handled this matter on behalf of the United States.
republic_drug_final_fully_signed_sa.pdfFederal Jury convicts Helena woman of lying about income to receive government assistance benefitsRead the Press Release
HELENA — A federal jury today convicted a Helena woman, who was accused of lying about her income and employment to illegally receive government benefits intended to help low-income individuals and families, of multiple crimes, U.S. Attorney Jesse Laslovich said.
After a four-day trial that began on Sept. 26, the jury found Nena Helene Siemens, aka Nena Suzanne Kruger, 59, guilty of two counts of false statement or representation made to a department or agency of the United States and one count of theft of government money. Siemens faces a maximum of 10 years of imprisonment, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for March 6, 2024 and continued Siemens’ release pending further proceedings.
“Despite receiving significant income and running her own business, Siemens lied on numerous applications so she could receive federal assistance benefits for which she was not eligible. Siemens’ brazen and prolonged conduct took taxpayer-funded aid from families that truly need help. The jury held her accountable. I want to thank Assistant U.S. Attorneys Michael A. Kakuk and Jeffrey K. Starnes, the U.S. Department of Health and Human Services Office of Inspector General and the Montana Department of Public Health and Human Services for their work on this case,” U.S. Attorney Laslovich said.
In December 2018, Siemens applied for program assistance benefits through the State of Montana, reporting that she had $1,500 in her bank accounts, no employment and no income. Based on the information, Siemens was approved to receive benefits through the Temporary Assistance for Needy Families (TANF) program, which is a program that provides cash assistance for families to meet basic needs.
The government alleged that the information Siemens provided for benefits was false. From March 2014 through August 2017, she lived with Dale Kruger, and they shared multiple bank accounts that had significant deposits of money. Siemens spent an average of roughly $20,000 per month. Siemens also owned and operated a business called Evergreen Dive Service in Washington. In addition, Siemens collected $750 in monthly rent from a couple living on property she owned with Kruger. Siemens never disclosed her living arrangements, accounts or income sources to the State of Montana, even though she routinely received notices from the state regarding reporting requirements for changes in income and other circumstances.
The government further alleged that starting in August 2017, Siemens began transferring and depositing large amounts of money into her personal accounts. Between January 2018 and February 2020, Siemens routinely had income of more than $10,000 per month, which includes bank account transfers, miscellaneous deposits and personal expenses charged to her dive service business accounts. These income sources were never disclosed to the state.
During a 2019 interview with an investigator, Siemens reiterated multiple times that she was not employed, had no income and no assets to liquidate. Contrary to these assertions, Siemens had substantial income in 2019. She purchased a Kubota tractor for $70,000 in June 2018 and a Desert Fox travel trailer for $31,000 in March 2019. In agreements to purchase these items, Siemens typically stated she was employed as the managing member of her business and that her income was between $6,000 and $10,000 per month.
The state of Montana ultimately suspended Siemens’ benefits in February 2020. By then, Siemens had received $2,552 in TANF benefits for which she and her family were not legally eligible. After the state of Montana suspended her benefits, Siemens continued her fraudulent conduct by filing a claim two months later for unemployment with the state of Washington, claiming she was “laid off” by her “employer,” the Evergreen Diver Service.
Assistant U.S. Attorneys Michael A. Kakuk and Jeffrey K. Starnes are prosecuting the case. The U.S. Department of Health and Human Services Office of Inspector General and the Montana Department of Public Health and Human Services conducted the investigation.
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