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Friday 29 September 2023
Fayette County Man Sentenced to 15 Months for False Statements to U.S. Probation Office and Failure to AppearRead the Press Release
LEXINGTON, Ky.— A Lexington, Ky., man, Charles E. Johnson, Jr., 62, was sentenced to 15 months in federal prison on Friday, by Chief U.S. District Judge Danny Reeves, for making materially false statements to the United States Probation Office and for failing to appear for a hearing while released on bond pending trial.
Johnson was serving a term of supervised release following convictions in the Eastern District of Virginia for securities fraud and witness tampering. Public records demonstrate that as part of his sentence for securities fraud, Johnson was ordered to pay more than $9 million in restitution to the victims of his crime. According to his plea agreement, as a condition of that supervised release, Johnson was required to make sworn financial disclosures to the United States Probation Office fully disclosing assets he controlled, so that the Probation Office could determine resources available to repay victims of his earlier securities fraud. On two separate sworn financial disclosures in 2021, Johnson intentionally concealed his control of a company bank account, which he used to pay more than $140,000 in personal expenses that year, instead reporting only that he earned $3,500 per month from the company. Johnson was released on bond pending trial for these false statements offenses. When the United States moved to revoke his bond due to unauthorized travel outside the Eastern District of Kentucky, Johnson fled to Las Vegas and failed to appear at a scheduled bond revocation hearing in April 2023. He was apprehended in Minnesota the following month.
In addition to his sentence for these crimes, Johnson was sentenced to another 6 months in prison for further violations of the conditions of his supervised release.
Under federal law, Johnson must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 3 years.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky, and Lesley Allison, Inspector in Charge, United States Postal Inspection Service, Pittsburgh Field Office, jointly announced the sentence.
The investigation was conducted by the United States Postal Inspection Service. The United States was represented by Assistant U.S. Attorney Paul McCaffrey.
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El Paso, Texas, Man Sentenced to Ten Years in Prison for Fentanyl TraffickingRead the Press Release
SPRINGFIELD, Ill. – An El Paso, Texas, man, Raul Morales, 42, was sentenced on September 25, 2023, to 120 months in prison, to be followed by five years of supervised release, for possessing over 29 kilograms of fentanyl and xylazine.
At the sentencing hearing in front of Senior United States District Judge Sue Myerscough, the government presented evidence that the Illinois State Police stopped Morales while he was traveling northbound on Interstate 55 in Sangamon County, Illinois. Morales was driving a pick-up truck and pulling a trailer holding two vehicles. Documents showed Morales started the trip in Texas and was heading to Joliet, Illinois. During the stop, Illinois State Police troopers located over 29 kilograms of a substance containing fentanyl and xylazine; it was packaged in 30 separate bundles, each of which was wrapped in black tape, and located in a suitcase in one of the vehicles being hauled on the trailer.
Morales was indicted in November 2022 and pleaded guilty in May 2023. He has been detained by the United States Marshals Service since November 2022.
The statutory penalties for possession with intent to distribute 400 grams or more of fentanyl are not less than 10 years up to life imprisonment, up to a $10,000,000 fine, and up to a life term of supervised release.
The Illinois State Police and Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Morales 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.
El Departamento de Justicia llega a un acuerdo en una denuncia por acoso sexual contra un administrador de fincas y un propietario de apartamentos de KoreatownRead the Press Release
LOS ÁNGELES – El Departamento de Justicia ha anunciado hoy un acuerdo para resolver una denuncia federal por acoso sexual en un edificio de apartamentos de Koreatown, donde un administrador de la propiedad fue acusado de violar la Ley de Vivienda Justa por acosar sexualmente a múltiples residentes femeninas durante varios años.
En virtud de la orden de consentimiento presentada hoy ante el Tribunal de Distrito de los Estados Unidos, M&F Development, LLC, propietaria del edificio de apartamentos de South Western Avenue, ha acordado pagar 120.000 dólares para indemnizar a las personas perjudicadas por el acoso del administrador de la propiedad, Abraham Kesary. Además del pago de la indemnización, M&F Development acordó pagar una multa civil de 10.000 dólares a Estados Unidos. La orden de consentimiento inhabilita permanentemente a Kesary para la gestión de propiedades y exige la contratación de un gestor de propiedades independiente aprobado por el Departamento de Justicia para la propiedad de alquiler de Koreatown. La orden de consentimiento también prohíbe la discriminación y las represalias en el futuro, impone la formación sobre la Ley de Vivienda Justa y exige una amplia supervisión y presentación de informes sobre las actividades de gestión de la propiedad y el cumplimiento de los términos de la orden de consentimiento.
La denuncia, que forma parte de la Iniciativa sobre Acoso Sexual en la Vivienda del Departamento de Justicia a nivel nacional, alegaba que desde al menos 2012 hasta al menos 2020, Kesary sometió a las residentes femeninas del complejo de apartamentos a acoso no deseado. En la denuncia se alegaba que Kesary ofrecía prestaciones relacionadas con la vivienda a cambio de actos sexuales, hacía comentarios e insinuaciones sexuales no deseados, entraba en los domicilios de las residentes sin su permiso y sometía a estas inquilinas a actos sexuales no deseados.
“Nuestra oficina no tolerará ningún tipo de discriminación ilegal”, declaró el Fiscal General Martin Estrada. “El prolongado acoso sexual contra las mujeres residentes que se denuncia en este caso es inquietante e inaceptable. Seguiremos vigilando para que los propietarios y los administradores de propiedades rindan cuentas por la discriminación y el acoso, y la Ley de Vivienda Justa nos da una poderosa herramienta para buscar justicia para las víctimas”.
“Los inquilinos tienen derecho a vivir en sus casas libres de acoso sexual por parte de sus caseros”, declaró la Fiscal General Adjunta Kristen Clarke, de la División de Derechos Civiles del Departamento de Justicia. “El Departamento de Justicia seguirá aplicando enérgicamente las leyes de vivienda justa contra los propietarios que se aprovechan de los residentes vulnerables”.
Las personas que crean que pueden haber sido víctimas de acoso sexual u otros tipos de discriminación en materia de vivienda pueden ponerse en contacto con la Línea de información sobre discriminación en materia de vivienda llamando al 1-833-591-0291. Los particulares también pueden enviar un correo electrónico al Departamento de Justicia a [email protected] o presentar una denuncia en línea. También se pueden presentar denuncias llamando al Departamento de Vivienda y Desarrollo Urbano de los EE. UU., al 1-800-669-9777, o presentando una denuncia en línea.
Los residentes en los siete condados del Distrito Central de California pueden presentar una denuncia por discriminación en materia de vivienda u otras violaciones de los derechos civiles ante la Sección de Derechos Civiles de la División Civil de la Fiscalía General de los Estados Unidos rellenando y enviando este formulario (Inglés) (Español) por correo electrónico a [email protected].
La fiscal adjunta Margaret Chen, de la Sección de Derechos Civiles de la División Civil, y los abogados de la Sección de Vivienda y Ejecución Civil de la División de Derechos Civiles del Departamento de Justicia de los Estados Unidos litigaron este asunto.
District Man Sentenced to Seven Years in Prison for Kidnapping and Attempted Sexual AbuseRead the Press Release
WASHINGTON – Larry Richardson, 71, of Washington, D.C., was sentenced today to seven years in prison for the March 2022 kidnapping and sexual abuse of an acquaintance in Northwest Washington, DC. The sentence was announced by U.S. Attorney Matthew M. Graves and Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
On February 7, 2023, Richardson pleaded guilty to one count of attempted first degree sexual abuse and one count of kidnapping in the Superior Court of the District of Columbia. In addition to the seven-year prison term, the Honorable Maribeth Raffinan ordered five years of supervised release and must register as a sex offender for the remainder of his life.
According to court documents, on March 30, 2022, the victim and Richardson were walking together in the 1800 block of Columbia Road NW, when the defendant became violent. Video surveillance captured the defendant dragging the victim into an alley, striking her multiple times in the face, and pulling her pants and underwear down to her thighs. As the victim struggled, the defendant alternatively climbed on top of her, struck her in the face with his fist repeatedly, and dragged her deeper into the alley by her arm and legs. When the victim tried to escape, the defendant again struck her in the side of the face.
When the defendant had pulled the victim to the end of the alley, he pinned her to the ground with his body and repeatedly attempted to penetrate the victim’s vulva with his fingers as the victim tried to resist. Passersby heard the victim screaming and flagged down nearby police officers, who arrested the defendant on scene.
This case was investigated by the Metropolitan Police Department’s Sexual Assault Unit. It was prosecuted by Assistant U.S. Attorney Kristin Sourbeer.
District Man Sentenced to 36 Years for 2017 Murder Stemming from Criminal Street Gang ActivityRead the Press Release
WASHINGTON –Quincy Garvin, 23, Washington, D.C., was sentenced today to 36 years in prison for his role in a brazen shooting into a courtyard that took place in September 2017 in the Potomac Gardens area of Southeast Washington. Garvin was found guilty, in July 2022, of conspiracy, first-degree murder while armed, participation in a criminal street gang, and other charges. The sentence was announced today by U.S. Attorney Matthew M. Graves and Acting Chief Pamela A. Smith, of the Metropolitan Police Department (MPD).
“Violence between crews fuels a number of the homicides we see in the District,” said U.S. Attorney Graves. “Those thinking of turning petty disputes into deadly shootings need to know that we will hold them accountable for their conduct and face sentences like this one.”
According to the government’s evidence, between May 2017 and October 2017, the defendant and others were members of a criminal street gang operating in the area of Wellington Park, within Washington, D.C. Garvin, and others, were involved in a number of “beefs” with individuals from other areas of the city, many of which started as the result of petty feuds among local rival rap groups.
At approximately 6 p.m. 0n September 10, 2017, the victim, Carl Hardy, was standing outside in the Potomac Gardens neighborhood as Garvin and three others circled the neighborhood three times looking for individuals to target. On the fourth trip around the block, the vehicle stopped and the driver paused to allow Garvin and two other men to exit the vehicle armed with multiple weapons, including an assault rifle. Garvin and the two other shooters opened fire on the crowded courtyard, firing over 30 rounds and striking Mr. Hardy. The group then fled the scene.
Mr. Hardy, 24, was transported to the hospital where doctors operated multiple times in their efforts to save him. Ultimately, on Oct. 1, 2017, Mr. Hardy succumbed to his injuries. Shortly after Mr. Hardy’s death, an arrest warrant was obtained for Garvin charging him with the murder. A second shooter, Saquan Williams, was also charged and convicted at trial and was sentenced, on September 14, 2023, to 35 years in prison.
In announcing the sentence, U.S. Attorney Graves and Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the assistance provided by the U.S. Marshals Service, the Capital Area Regional Fugitive Task Force, and the District of Columbia Department of Forensic Sciences. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Chrisellen Kolb, Chief of the Appellate Division; Assistant U.S. Attorneys Ryan Sellinger, Daniel Lenerz, and Sharon Donovan; Supervisory Paralegal Specialist Tasha Harris; Lead Paralegal Specialists Sharon Newman and Meridith McGarrity; Former Paralegal Specialist Stephanie Siegerist; Supervisory Victim/Witness Advocate Jennifer Clark; Witness Security Specialist Ashli Tolbert; Supervisory Litigation Technology Specialist Leif Hickling; Litigation Technology Specialist Claudia Gutierrez; Supervisory Victim/Witness Services Coordinator Katina Adams-Washington; Victim/Witness Services Coordinators LaJune Thames and Maenylie Watson; and Investigative Analyst Zachary McMenamin.
Finally, they commended the work of Assistant U.S. Attorney Melissa Jackson and former Assistant U.S. Attorney John Timmer, who investigated and indicted the case, and Assistant U.S. Attorneys Laura Bach and Lindsey Merikas who prosecuted the case.
District Man Sentenced to 27 Years in Prison for Stranger Rape of a Child at Gunpoint in 2005Read the Press Release
WASHINGTON – Marquette E. Johnson, 42, of the District of Columbia, was sentenced today to 27 years in prison and five years of supervised release for first degree sexual abuse while armed and first degree child sexual abuse while armed. The sentence was announced by U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
Johnson pleaded guilty on July 11, 2023. According to the government’s evidence, at approximately 8:30 a.m. on November 28, 2005, Johnson approached a 12-year-old female child as she was walking to school, drove up to the victim, pointed a semiautomatic pistol or imitation pistol at her, and told her to get in his minivan or he would kill her. The child followed Johnson’s orders and the defendant drove her to an alley behind the 1300 block of Morris Road, SE, where he forced her to get in the back seat and he sexually assaulted her. When the defendant finished raping her, he drove the victim back to the location where he had picked her up and told her something to the effect of, “See, I told you, you wouldn’t miss school.” The child promptly reported what had occurred to a teacher and an MPD officer stationed at the school.
DNA obtained from the physical evidence in the investigation matched the DNA profile of the defendant, who is a convicted offender. Additional DNA testing determined it was at least 87 quadrillion times more likely if the evidence originated from the defendant and the victim, than if from the victim and an unknown, unrelated individual. The defendant was a stranger to the victim and her family.
Following his release from prison, Johnson will be mandated to register as a sex offender for the remainder of his life.
This case was investigated by detectives of the Metropolitan Police Department’s Sexual Assault Unit and Cold Case Sexual Assault Unit, Youth Investigations Division, and detectives and officers from the Seventh District. It was prosecuted by Assistant U.S. Attorneys Amy Zubrensky and Robert Platt.
It is another case brought as part of the Cold Case Initiative, an initiative launched in February 2018 by the U.S. Attorney’s Office for the District of Columbia to reinvestigate previously unsolved cases of sexual assault as well as sexual assault-related homicides. The U.S. Attorney’s Office works in partnership with the D.C. Metropolitan Police Department, the Federal Bureau of Investigations, the United States Marshals Service, and local law enforcement partners in the DMV area to achieve its mission.
District Man Pleads Guilty to Second-Degree Murder in Shooting of Ex-Girlfriend in Northwest WashingtonRead the Press Release
WASHINGTON - Carson Posey, 24, of Washington, DC, pleaded guilty today to one count of second degree murder while armed for the fatal shooting of Shantal Hill, 28, on April 15, 2020, near the Tyler House Apartments on the south side of 1200 North Capitol Street, Northwest, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police (MPD).
The plea was entered before Superior Court Judge Michael O’Keefe who scheduled sentencing for January 19, 2024.
According to court documents, around 10:48 p.m. on April 15, 2020, Posey shot Hill, his ex-girlfriend, nine times in the legs, buttocks, and chest. Hill identified her assailant to responding police officers while aid was being provided on the scene. Hill also stated, “I [am] a single mother and I can’t die.” She died shortly after midnight on April 16, 2020.
This case was investigated by the Criminal Investigation Division Homicide Branch of the Metropolitan Police Department.
The case is being prosecuted by Assistant U.S. Attorney John Interrante.
Couple Sent to Prison for Conspiring to Distribute DrugsRead the Press Release
A Cedar Rapids, Iowa, man and a Palo, Iowa, woman who conspired with each other to distribute methamphetamine were sentenced this week to federal prison.
Zachary James Kruse, age 38, from Cedar Rapids, Iowa, received the prison term after a May 4, 2023 guilty plea to conspiracy to distribute a controlled substance. Cheyenne Nicole Mason, age 34, from Palo, Iowa, received the prison term after a May 15, 2023 guilty plea to conspiracy to distribute a controlled substance.
Evidence at the sentencing hearings showed that on April 29, 2022, law enforcement officers searched a motel room in Mount Vernon, Iowa, where Kruse and Mason had been staying. Officers recovered 120.84 grams of methamphetamine. Some of the methamphetamine was hidden in deodorant containers.
Kruse and Mason were sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Kruse was sentenced to 240 months’ imprisonment and must also serve a 5-year term of supervised release after the prison term. Mason was sentenced to 59 months and 393 days’ imprisonment and must serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Kruse and Mason are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Devra T. Hake and Assistant United States Attorney Jason Norwood and investigated by the Mount Vernon-Lisbon Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-99.
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Corn Milling Company Pleads Guilty to Making False Statements in Safety and Environmental Records Following Mill ExplosionRead the Press Release
Didion Milling Inc. pleaded guilty to criminal charges today in federal court in Madison, Wisconsin. As part of a plea agreement, the company has agreed to pay a total of $1 million in criminal fines and $10.25 million in restitution to victims of a May 31, 2017 catastrophic explosion at its Cambria, Wisconsin, corn mill facility. Five Didion Milling employees were killed in that explosion and others were injured.
Didion Milling was previously indicted in May 2022 with multiple federal crimes related to compliance with Occupational Safety and Health Act, Clean Air Act and food safety obligations at the Cambria corn mill and representations made to its customers and authorities. Didion Milling pleaded guilty today to counts six and seven of the indictment, charging it with falsifying records related to its Occupational Safety and Health Act and Clean Air Act obligations to conceal violations from government agencies.
“Today’s guilty plea should send a message to all employers that we will not tolerate lying to OSHA, EPA and EPA’s state partners as they seek to fulfill their mandates to ensure the safety of workers and protect public health and the environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Our thoughts continue to be with the victims of the May 2017 explosion. As demonstrated by today’s action, we will vigorously pursue restitution for victims of workplace incidents.”
“After an explosion killed five of its workers, Didion Milling lied and falsified records to conceal violations of the environmental and worker safety laws,” said Assistant Administrator David Uhlmann of the Environmental Protection Agency's (EPA) Office of Enforcement and Compliance Assurance. “There is no excuse for false and misleading conduct, particularly in the aftermath of a tragedy, and this prosecution holds Didion Milling accountable.”
According to court documents, Didion Milling was required to operate “baghouses,” equipment designed to prevent particulate matter, such as corn dust, from being released into the environment from the corn mill. From at least 2015 to May 2017, Didion Milling employees, including shift workers and shift superintendents, made false entries in the mill’s “baghouse logs,” disguising data meant to monitor and document whether the mill’s baghouse equipment was working properly to filter particulates from the air. Didion Milling’s environmental manager provided baghouse logs for 2015, 2016 and 2017 to environmental inspectors, knowing that they contained false entries.
Didion Milling was also required under Occupational Safety and Health Act safety standards to develop and implement a housekeeping program to reduce the accumulation of fugitive grain dust within its corn mill. Didion Milling maintained a “master sanitation schedule” logbook listing each of the required dust cleanings and the specific dates by which the cleanings were supposed to be completed. The sanitation logbook contained spaces for Didion Milling employees to record that the dust cleanings had been performed and that documentations procedures had been followed. On or about May 19, 2017, Didion Milling employees falsely initialed, signed and dated entries in the sanitation logbook for the week of May 1 through May 7, 2017, giving the appearance that the required dust cleanings were performed when they had not been. Didion Milling provided the sanitation logbook containing the false May 2017 dust cleaning entries to the Occupational Safety and Health Administration (OSHA) during its investigation of the May 31, 2017 explosion at the Didion Milling corn mill.
A sentencing hearing before U.S. District Court Judge James D. Peterson for the Western District of Wisconsin will be scheduled at a later date.
EPA’s Criminal Investigation Division and the Wisconsin Department of Natural Resources investigated the case.
Three additional charged defendants are scheduled to begin trial on Oct. 2.
Trial Attorneys Samuel Lord and Joel La Bissonniere and Senior Trial Attorney Richard J. Powers of the Environment and Natural Resources Division’s Environmental Crimes Section are prosecuting the case.
Clayton Resident Sentenced for Sexually Abusing A ChildRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kevin Stuart Pollard III, age 23, of Clayton, Oklahoma, was sentenced to 57 months in prison for one count of Sexual Abuse of a Minor in Indian Country. Pollard was also sentenced to 24 months in prison each for two counts of Abusive Sexual Contact in Indian Country. All sentences were ordered to run concurrently.
The charges arose from investigations by the Federal Bureau of Investigation and the Pushmataha County Sheriff’s Office.
On August 10, 2022, Pollard pleaded guilty to one count of Sexual Abuse of a Minor in Indian County and two counts of Abusive Sexual Contact in Indian Country. At the hearing, Pollard pleaded guilty to sexually abusing a minor under the age of 16 years old. Pollard also pleaded guilty to engaging in sexual contact through the clothing of the minor in 2019. The crimes occurred within the boundaries of the Choctaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Scott D. Palk, U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting by appointment, presided over the hearings in Oklahoma City. Pollard 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.
Special Assistant United States Attorney Genevieve Ozark represented the United States.
Chanhassen Psychologist Sentenced to Prison for Health Care FraudRead the Press Release
ST. PAUL, Minn. – A Chanhassen psychologist has been sentenced to 24 months in prison followed by three years of supervised release for fraudulently billing for counseling services never actually rendered, announced U.S. Attorney Andrew M. Luger.
According to court documents, Charles Howard Jorenby, 57, was a licensed psychologist and owner of Life Dynamics, Inc., a counseling center located in Prior Lake. From at least January 2013 through February 2020, Jorenby orchestrated a scheme to defraud the Shakopee Mdewakanton Sioux Community (SMSC), which is responsible for funding its own tribal members’ health care costs. In order to administer its own self-funded costs, SMSC contracted with Blue Cross Blue Shield Minnesota (BCBS) as its health care administrator and processor for provider billing. Jorenby realized that, within the relationship between SMSC and BCBS, billed services were fully covered, and no individuals received any mailings or “explanation of benefits” paperwork, and that he could therefore submit fraudulent bills for counseling services he claimed to have provided to dozens of SMSC members without any notice to the individuals. In reality, Jorenby never provided counseling services to those individuals, and he used their names and dates of birth without their knowledge or permission. As a result of his false billing practices, SMSC suffered a loss of at least $819,020.83.
According to court documents, in 2017, Jorenby also submitted an additional fraudulent insurance claim to State Farm Insurance following a fire at his business office. In that claim, Jorenby knowingly provided false information regarding lost income, inflating his claimed income to include earnings associated with his fraudulent billings. Jorenby received a settlement of $104,930 as a result of his misrepresentation. In sentencing Mr. Jorenby, the District Court ordered him to pay SMSC $819,020.83, and State Farm Insurance $104,930, as restitution.
“When criminals commit health care fraud it can negatively affect the health care system in the form of increased fees and lower wages,” said Special Agent in Charge of Homeland Secretary Investigations (HSI) Saint Paul Jamie Holt. “These crimes are further exacerbated when they are committed by individuals, like Jorenby, who hold positions of trust throughout a community, particularly for those who relied upon him for their, or their family members’ mental well-being.”
On November 29, 2022, Jorenby pleaded guilty to one count of health care fraud. He was sentenced on September 22, 2023, by U.S. District Judge Susan Richard Nelson.
This case is the result of an investigation conducted by Homeland Security Investigations and the Minnesota Commerce Fraud Bureau.
Assistant U.S. Attorney Lindsey E. Middlecamp prosecuted the case.
California Man Arrested and Indicted for Distributing Child Sexual Abuse Materials over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Jason Charles Nicholas (53, Ramona, California) has been arrested and indicted for distributing child sexual abuse materials over the internet. If convicted, Nicholas faces a minimum mandatory penalty of 5 years, and up to 20 years, in federal prison and a potential life term of supervised release. Nicholas was arrested on September 21, 2023 in San Diego County, California. He has been detained and will be transported to Jacksonville by the U.S. Marshals Service for prosecution in this case.
According to court documents, on August 3, 2023, an FBI agent in the Jacksonville area, using the persona of the parent of an 11-year-old “child,” began working in an undercover (UC) capacity on a particular social media application (app) to identify individuals who were attempting to sexually exploit children. The UC began a private conversation on the app with a user named “cldad,” who was subsequently identified as Nicholas. Nicholas falsely claimed that he lived in Florida and indicated his desire to meet the UC at the UC’s residence in northeast Florida to have sex with the 11-year-old “child.” However, Nicholas subsequently abandoned this plan and began threatening the UC that he would expose the UC’s purported criminal sexual conduct unless the UC streamed live video of the “child” to Nicholas. The UC refused to do so. Nicholas later apologized for threatening the UC and the two continued online conversations for several weeks. Nicholas told the UC about his longtime practice of brushing up against and taking surreptitious photos (“creep shots”) of young girls in public places, and also that he had abused a young child after overdosing the child with medication.
During an online conversation on August 17, 2023, Nicholas sent the UC six videos and two photos that depicted young children being sexually abused. Further investigation by the FBI led to the identification of Nicholas. On September 21, 2023, FBI agents, with assistance from the San Diego County Sheriff’s Office, arrested Nicholas as he was on his way to work. On that same day, a federal search warrant was executed at Nicholas’ residence resulting the seizure of several electronic devices.
This case was investigated by the Clay County Sheriff’s Office, the San Diego County Sheriff’s Office, the St. Johns County Sheriff’s Office, and the Federal Bureau of Investigation in Jacksonville and San Diego. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in 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 child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Chinese National Pleads Guilty to Illegally Entering the United StatesRead the Press Release
St. Thomas, VI . United States Attorney Delia L. Smith announced that Guangsong Chen of China pleaded guilty to Illegal Entry into the United States in District Court before U.S. Magistrate Judge Ruth Miller. Chen faced up to six months of incarceration and was sentenced to time served.
According to court documents, on August 3, 2023, Chen presented himself for inspection to U.S. Customs and Border Protection at the Cyril E. King airport in St. Thomas prior to boarding a flight to the mainland. During their inspection, CBP officers determined that Chen traveled China to Suriname and on July 26, 2023, Chen illegally entered St. Thomas by boat after paying smugglers $7,500.00 for his transport. No legal document exists that allowed Chen to enter the United States, and there is no evidence that Chen sought or received prior permission to enter or reside in the United States.
This case was investigated by the United States Customs and Border Protection and prosecuted by Assistant United States Attorney Melissa P. Ortiz.
Boston Man Pleads Guilty to Unlawful Possession of AmmunitionRead the Press Release
BOSTON – A Boston man pleaded guilty today to illegally possessing ammunition as a convicted felon.
Tyreek Hall, 21, pleaded guilty to one count of being a felon in possession of ammunition before U.S. District Court Judge Indira Talwani who scheduled sentencing for Jan. 18, 2024. Hall was charged in September 2022.
On June 9, 2022, Hall was found in possession of a 9x19mm caliber privately made Glock-style semi-automatic pistol, bearing no manufacturer serial number (commonly known as a “ghost gun”), and eight rounds of ammunition. Hall is prohibited from possessing a firearm or ammunition due to a prior felony conviction.
The felon in possession charge provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Brian Kyes, U.S. Marshal for the District of Massachusetts; and Boston Police Commissioner Michael Cox made the announcement today. Assistant U.S. Attorney John Dawley of the Organized Crime & Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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.
Bomb Maker Sentenced to 52 Months in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced that Terrance Wayne VanOchten, 57, of Mancelona, was sentenced to 52 months in federal prison. VanOchten pled guilty in June to possessing three pipe bombs, which were found as part of a large cache of military-style firearms and equipment. Other evidence in the case demonstrated that VanOchten made threatening statements about elected public officials at the same time he possessed the bombs. U.S. District Judge Paul Maloney imposed the sentence.
“In urban centers and rural spaces, Michiganders deserve to live in peace and safety without the menace of violence,” said U.S. Attorney Mark Totten. “Mr. VanOchten possessed unlawful pipe bombs, posed a threat to others, and is now being held to account.”
Kalkaska County Sheriff’s deputies responded to VanOchten’s home in August 2022, after neighbors reported he was shooting what sounded like a machine gun. He answered the door with a loaded pistol, and later admitted he had been shooting a modified AR-15 style assault rifle into his backyard. Deputies executed a search warrant and found three assembled metal pipe bombs in VanOchten’s house. They also found highlighted explosives guides, a “Militia Battle Manual,” and more than a dozen weapons, including semiautomatic rifles, pistols, and a 40mm projectile launcher. VanOchten received an enhanced sentence because he was using drugs at the time of the shooting incident. The Court also considered that his bond was revoked for keeping undisclosed weapons and ammunition.
“VanOchten’s illegal possession of explosives have found him a pathway to prison,” said ATF Detroit Special Agent in Charge James Deir. “Illegal explosives and weapons are a threat to public safety and have no place in our community. Those who threaten public safety will be held accountable by ATF.”
The case was investigated by ATF’s Grand Rapids Resident Agency and the Kalkaska County Sheriff’s Office.
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Boise Man Sentenced to 15 years for Three Attempted Sex Crimes Against ChildrenRead the Press Release
POCATELLO – Mohammad Ali Alizadah Nawai, 45, of Boise was sentenced to federal prison for three attempted sex crimes, U.S. Attorney Josh Hurwit announced. Senior U.S. District Judge B. Lynn Winmill sentenced Nawai to 180 months in federal prison followed by 10 years of supervised release. The crimes reflect Nawai’s attempted transfer of obscene matters to a child under 16 years of age, the attempted production of child pornography, and the attempted persuasion of a child to meet for sexual intercourse. Nawai was convicted during a trial presided over by Judge Winmill, which began on June 20, and concluded with guilty verdicts on June 23.
According to court records and evidence presented at trial, Nawai communicated with an undercover detective posing as a 13-year-old child on an online dating program. The detective was posing as a child to detect and investigate online offenders seeking children. Nawai, after being told the apparent child’s age, requested that the child produce sexually explicit content. Nawai further sent the apparent child obscene materials, which included bestiality and images he represented as child pornography. Nawai also made arrangements to meet the child for sexual intercourse. He travelled from Boise to Rupert on June 23, 2021, where members of the Rupert Police Department promptly arrested him.
U.S. Attorney Hurwit thanked the Rupert Police Department for its efforts, which led to the charges. The case was prosecuted by Assistant U.S. Attorneys David Robins and John Shirts.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Behavioral Services Healthcare Provider and its Owner Settle False Claims Act AllegationsRead the Press Release
ALEXANDRIA, Va. – Connex Family Services, LLC (Connex), located in Warrenton, and Bianca Riddle, 33, a resident of Gloucester, have agreed to pay $918,000 to settle a civil fraud case that claimed Connex and Riddle submitted or caused false claims to be submitted to Medicaid and TRICARE.
The government alleged that Connex and Riddle submitted claims to TRICARE and Medicaid for applied behavioral analysis services that were not provided during the period from March 1, 2019, through November 13, 2021. Connex’s behavioral analysis services are provided to children who have been diagnosed with Autism Spectrum Disorder and other related disorders.
Connex and Riddle will pay additional amounts, up to $2,053,387, if the company is sold within five years.
As part of the settlement, Connex entered into a three-year Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). This Integrity Agreement is designed to promote compliance with the statutes, regulations, program requirements, and written directives of Medicaid and all other federal health care programs.
The settlement arises in connection with two lawsuits filed by former employees under the whistleblower provision of the False Claims Act. United States ex rel. Schwartz v. Connex Family Services, LLC, et al., and United States ex rel. Liguori v. Connex Family Services, LLC, et al. The matters were consolidated in the Newport News Division.
A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and other evidence to the U.S. Attorney’s Office. The United States then has an opportunity to investigate the claims. The False Claims Act provides whistleblowers with a share of the government’s recovery.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia; Health and Human Services Office of Inspector General; Department of Defense Office of Inspector General, Defense Criminal Investigative Service; the Federal Bureau of Investigation; and the Commonwealth of Virginia’s Office of the Attorney General.
The matter was investigated by Assistant U.S. Attorney Clare P. Wuerker and former Assistant U.S. Attorney Ilene Albala. Assistant Attorneys General Ray F. Bowman and Jordan E. Sturgis of the Office of the Attorney General for the Commonwealth of Virginia Medicaid Fraud Control Unit handled the matter for Virginia Medicaid claims.
A copy of this press release may be found at http://www.justice.gov/usao/vae. Related court documents and information from the civil lawsuit can be accessed on PACER by searching for No. 4:21-cv-52.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Baker County Repeat Offender Sentenced to More than 15 Years in Federal Prison for Illegally Possessing Methamphetamine and FirearmsRead the Press Release
EUGENE, Ore.—On September 28, 2023, a Baker County, Oregon man with a lengthy criminal history, who fled from a traffic stop at more than 100 mph and threatened a shootout with police, was sentenced to more than 15 years in federal prison for illegally possessing methamphetamine and firearms.
Zachary Charles Persicke, 38, was sentenced to 188 months in federal prison and five years’ supervised release.
According to court documents, in late September 2021, as part of an investigation of Persicke for dealing drugs and illegally possessing firearms, Baker County law enforcement obtained a state search warrant for Persicke’s person and an associated residence. Law enforcement observed Persicke in a vehicle and attempted a traffic stop. While fleeing from police and reaching speeds of more than 100 mph, Persicke called 911, told the dispatcher he had a weapon, and threatened to engage in a shootout. After driving over a spike strip placed by law enforcement, Persicke pulled over and surrendered without incident. In a search of Persicke’s vehicle, officers located and seized more than 300 grams of methamphetamine, a loaded .45 caliber pistol, and an assault-style rifle.
On November 18, 2021, a federal grand jury in Eugene returned a three-count indictment charging Persicke with possessing with intent to distribute methamphetamine, illegally possessing a firearm as a convicted felon, and possessing a firearm in furtherance of a drug trafficking crime. On April 5, 2023, Persicke pleaded guilty to a two-count superseding criminal information charging him with possessing with intent to distribute methamphetamine and illegally possessing a firearm as a convicted felon.
This case was investigated by the Baker City Police Department with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Oregon State Police and the Baker County Sheriff’s Office. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon.
Albemarle to Pay over $218M to Resolve Foreign Corrupt Practices Act InvestigationRead the Press Release
Albemarle Corporation (Albemarle), a publicly-traded specialty chemicals manufacturing company headquartered in Charlotte, North Carolina, has agreed to pay more than $218 million to resolve investigations by the U.S. Department of Justice and the Securities and Exchange Commission (SEC) into violations of the Foreign Corrupt Practices Act (FCPA) stemming from Albemarle’s participation in corrupt schemes to pay bribes to government officials in multiple foreign countries.
According to the company’s admissions in connection with the Department’s resolution, between 2009 and 2017, Albemarle, through its third-party sales agents and subsidiary employees, conspired to pay bribes to government officials to obtain and retain chemical catalyst business with state-owned oil refineries in Vietnam, Indonesia, and India. Albemarle obtained profits of approximately $98.5 million as a result of the scheme.
“Albemarle earned nearly $100 million by participating in schemes to pay bribes to government officials in multiple countries,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “As today’s announcement makes clear, the Justice Department will work tirelessly with our partners in the ongoing fight against international corruption. Today’s resolution also demonstrates the real benefits that companies can receive if they self-disclose misconduct, substantially cooperate, and extensively remediate.”
In Vietnam, Albemarle corruptly obtained contracts at two state-owned oil refineries through an intermediary sales agent who requested increased commissions to pay bribes to Vietnam officials and to structure tender requirements to favor Albemarle. In Indonesia, Albemarle used a third-party intermediary to corruptly obtain catalyst business with Indonesia’s state-owned oil company, even after that third-party intermediary had informed Albemarle that it was necessary to pay bribes to Indonesian officials to obtain business. In India, Albemarle used a third-party intermediary to corruptly retain catalyst business with India’s state-owned oil company by avoiding Albemarle being blacklisted.
“Corruption has no borders, but neither does justice,” said U.S. Attorney Dena J. King for the Western District of North Carolina. “Companies are expected to adhere to the same ethical and legal standards whether they are doing business on U.S. soil or overseas. Albemarle’s eventual voluntary disclosure of fraud and subsequent efforts to remedy its business practices abroad are a step in the right direction for the company. Above all, today’s announcement underscores our commitment to fight corruption affecting the United States no matter where it occurs.”
Albemarle entered into a three-year non-prosecution agreement (NPA) with the Department and agreed to pay a penalty of approximately $98.2 million and administrative forfeiture of approximately $98.5 million. The penalty reflects a reduction of $763,453 under Part II of the Criminal Division’s March 2023 Compensation Incentives and Clawbacks Pilot Program for bonuses that the company withheld from qualifying employees. In addition, Albemarle will pay approximately $103.6 million in disgorgement and prejudgment interest as part of the resolution of the SEC’s parallel investigation. The Department has agreed to credit approximately $81.9 million of the forfeiture to be paid to the Department against disgorgement Albemarle has agreed to pay to the SEC.
“The $218 million resolution announced today reflects IRS Criminal Investigation (IRS-CI) special agents’ commitment to working with our law enforcement partners to aggressively expose and disrupt organizations engaged in unscrupulous business practices,” said IRS-CI Chief Jim Lee. “Thanks to our domestic and international law enforcement partners, we’ve ensured Albemarle will be held accountable for their misdeeds.”
Pursuant to the NPA, Albemarle has agreed to continue to cooperate with the Department in any ongoing or future criminal investigations relating to this conduct. In addition, Albemarle agreed to continue to enhance its compliance program and provide reports to the Department regarding remediation and the implementation of compliance measures for the three-year term of the NPA.
The Department reached this resolution with Albemarle based on a number of factors, including, among others, the nature and seriousness of the offense. Albemarle voluntarily disclosed to the Department conduct that forms the basis for the resolution; however, the disclosure was not “reasonably prompt” as defined in the Criminal Division Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP) and the U.S. Sentencing Guidelines § 8C2.5(g)(1). Albemarle received credit under the CEP for its cooperation with the Department’s investigation, which included (i) voluntarily disclosing the conduct that forms the basis for this agreement before it came to the Department’s attention; (ii) promptly providing information obtained through its internal investigation, which allowed the government to preserve and obtain evidence as part of its own extensive independent investigation; (iii) making regular and detailed presentations to the Department; (iv) proactively identifying information previously unknown to the Department; (v) meeting the Department’s requests promptly; (vi) voluntarily making foreign-based employees available for interviews in the United States; (vii) collecting and producing voluminous relevant documents and translations to the Department, including documents located outside the United States; and (viii) producing documents to the Department from foreign countries in ways that did not implicate foreign data privacy laws. The company promptly engaged in extensive remedial measures including, among other things (i) commencing remedial measures based on its internal investigation of the misconduct prior to the commencement of the Department’s investigation; (ii) disciplining employees involved in the misconduct, including terminating 11 employees and withholding bonuses from 16 employees; (iii) strengthening its anti-corruption compliance program by investing in compliance resources, expanding its compliance function with experienced and qualified personnel, and taking steps to embed compliance and ethical values at all levels of its business organization; (iv) transforming its business model and risk management process to reduce corruption risk in its operation and to embed compliance in the business, including implementing a go-to-market strategy that resulted in eliminating the use of sales agents throughout the company, terminating hundreds of other third-party sales representatives, such as distributors and resellers, and shifting to a direct sales business model; (v) providing extensive training to its sales team and restructuring compensation and incentives so that compensation is no longer tied to sales amounts; (vi) using data analytics to monitor and measure its compliance program’s effectiveness; and (vii) engaging in continuous testing, monitoring, and improvement of all aspects of its compliance program beginning almost immediately following the identification of misconduct. In light of these considerations, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 45% reduction off the bottom of the applicable guidelines fine range.
IRS-CI is investigating the case.
Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Daniel Ryan for the Western District of North Carolina are prosecuting the case.
The Justice Department’s Office of International Affairs and authorities in Indonesia and India provided substantial assistance in the matter.
The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
NPAAlbemarle to Pay over $218M to Resolve Foreign Corrupt Practices Act InvestigationRead the Press Release
CHARLOTTE, N.C. – Albemarle Corporation (Albemarle), a publicly-traded specialty chemicals manufacturing company headquartered in Charlotte, North Carolina, has agreed to pay more than $218 million to resolve investigations by the U.S. Department of Justice and the Securities and Exchange Commission (SEC) into violations of the Foreign Corrupt Practices Act (FCPA) stemming from Albemarle’s participation in corrupt schemes to pay bribes to government officials in multiple foreign countries.
According to the company’s admissions in connection with the Department’s resolution, between 2009 and 2017, Albemarle, through its third-party sales agents and subsidiary employees, conspired to pay bribes to government officials to obtain and retain chemical catalyst business with state-owned oil refineries in Vietnam, Indonesia, and India. Albemarle obtained profits of approximately $98.5 million as a result of the scheme.
“Albemarle earned nearly $100 million by participating in schemes to pay bribes to government officials in multiple countries,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “As today’s announcement makes clear, the Justice Department will work tirelessly with our partners in the ongoing fight against international corruption. Today’s resolution also demonstrates the real benefits that companies can receive if they self-disclose misconduct, substantially cooperate, and extensively remediate.”
From, Dena J. King, United States Attorney“Corruption has no borders, but neither does justice. Companies are expected to adhere to the same ethical and legal standards whether they are doing business on U.S. soil or overseas. Albemarle’s eventual voluntary disclosure of fraud and subsequent efforts to remedy its business practices abroad are a step in the right direction for the company. Above all, today’s announcement underscores our commitment to fight corruption affecting the United States no matter where it occurs.”
In Vietnam, Albemarle corruptly obtained contracts at two state-owned oil refineries through an intermediary sales agent who requested increased commissions to pay bribes to Vietnam officials and to structure tender requirements to favor Albemarle. In Indonesia, Albemarle used a third-party intermediary to corruptly obtain catalyst business with Indonesia’s state-owned oil company, even after that third-party intermediary had informed Albemarle that it was necessary to pay bribes to Indonesian officials to obtain business. In India, Albemarle used a third-party intermediary to corruptly retain catalyst business with India’s state-owned oil company by avoiding Albemarle being blacklisted.
Albemarle entered into a three-year non-prosecution agreement (NPA) with the Department and agreed to pay a penalty of approximately $98.2 million and administrative forfeiture of approximately $98.5 million. The penalty reflects a reduction of $763,453 under Part II of the Criminal Division’s March 2023 Compensation Incentives and Clawbacks Pilot Program for bonuses that the company withheld from qualifying employees. In addition, Albemarle will pay approximately $103.6 million in disgorgement and prejudgment interest as part of the resolution of the SEC’s parallel investigation. The Department has agreed to credit approximately $81.9 million of the forfeiture to be paid to the Department against disgorgement Albemarle has agreed to pay to the SEC.
“The $218 million resolution announced today reflects IRS Criminal Investigation (IRS-CI) special agents’ commitment to working with our law enforcement partners to aggressively expose and disrupt organizations engaged in unscrupulous business practices,” said IRS-CI Chief Jim Lee. “Thanks to our domestic and international law enforcement partners, we’ve ensured Albemarle will be held accountable for their misdeeds.”
Pursuant to the NPA, Albemarle has agreed to continue to cooperate with the Department in any ongoing or future criminal investigations relating to this conduct. In addition, Albemarle agreed to continue to enhance its compliance program and provide reports to the Department regarding remediation and the implementation of compliance measures for the three-year term of the NPA.
The Department reached this resolution with Albemarle based on a number of factors, including, among others, the nature and seriousness of the offense. Albemarle voluntarily disclosed to the Department conduct that forms the basis for the resolution; however, the disclosure was not “reasonably prompt” as defined in the Criminal Division Corporate Enforcement and Voluntary Self-Disclosure Policy (CEP) and the U.S. Sentencing Guidelines § 8C2.5(g)(1). Albemarle received credit under the CEP for its cooperation with the Department’s investigation, which included (i) voluntarily disclosing the conduct that forms the basis for this agreement before it came to the Department’s attention; (ii) promptly providing information obtained through its internal investigation, which allowed the government to preserve and obtain evidence as part of its own extensive independent investigation; (iii) making regular and detailed presentations to the Department; (iv) proactively identifying information previously unknown to the Department; (v) meeting the Department’s requests promptly; (vi) voluntarily making foreign-based employees available for interviews in the United States; (vii) collecting and producing voluminous relevant documents and translations to the Department, including documents located outside the United States; and (viii) producing documents to the Department from foreign countries in ways that did not implicate foreign data privacy laws. The company promptly engaged in extensive remedial measures including, among other things (i) commencing remedial measures based on its internal investigation of the misconduct prior to the commencement of the Department’s investigation; (ii) disciplining employees involved in the misconduct, including terminating 11 employees and withholding bonuses from 16 employees; (iii) strengthening its anti-corruption compliance program by investing in compliance resources, expanding its compliance function with experienced and qualified personnel, and taking steps to embed compliance and ethical values at all levels of its business organization; (iv) transforming its business model and risk management process to reduce corruption risk in its operation and to embed compliance in the business, including implementing a go-to-market strategy that resulted in eliminating the use of sales agents throughout the company, terminating hundreds of other third-party sales representatives, such as distributors and resellers, and shifting to a direct sales business model; (v) providing extensive training to its sales team and restructuring compensation and incentives so that compensation is no longer tied to sales amounts; (vi) using data analytics to monitor and measure its compliance program’s effectiveness; and (vii) engaging in continuous testing, monitoring, and improvement of all aspects of its compliance program beginning almost immediately following the identification of misconduct. In light of these considerations, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 45% reduction off the bottom of the applicable guidelines fine range.
IRS-CI is investigating the case.
Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Daniel Ryan for the Western District of North Carolina are prosecuting the case.
The Justice Department’s Office of International Affairs and authorities in Indonesia and India provided substantial assistance in the matter.
The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
35-Year-Old Omaha Man and Registered Sex Offender Sentenced in Armed Crime SpreeRead the Press Release
Acting United States Attorney Susan Lehr announced that Cordell R. Bridgeman, 35, of Omaha, Nebraska, was sentenced on September 28, 2023, in federal court in Omaha by Chief United States District Judge Robert F. Rossiter, Jr. to 238 months' imprisonment. On June 23, 2023, Bridgeman pled guilty to two counts of interference with commerce by robbery and two weapons charges for brandishing firearms during and in relation to the two-armed robberies. After his release from prison, Bridgeman will begin a four-year term of supervised release. There is no parole in the federal system.
An investigation conducted by the Federal Bureau of Investigation and the Omaha Police Department determined that on September 18, 2020, Bridgeman, wearing a blue hoodie with the hood up, a light blue surgical mask, and dark pants, entered the Speedee Mart located at 100 West Centennial Road, Papillion, Nebraska. Bridgeman walked to the cooler and selected a beverage. Bridgeman proceeded to the register and requested a pack of "Diamond Swisher" cigars. When the employee requested identification to purchase the cigarettes, Bridgeman pulled out a gun and set it on the counter and demanded money from the register. The employee removed the drawer from the register. Bridgeman told the employee that she had five seconds to place the contents of the drawer in a plastic bag.
That same day, Bridgeman robbed the Walgreens located at 3001 Dodge Street, in Omaha, Nebraska. Bridgeman approached a Walgreens employee working the counter and asked where hand sanitizer was located. When the employee went to scan the hand sanitizer, she saw that Bridgeman had a gun pointed at her at waist level in his right hand. Bridgeman told the employee to give him "Everything in the drawer" and "No funny business." The employee was having a hard time opening the register, and Bridgeman started counting backwards from three to one. The employee placed all the money that was in the register on the counter. Bridgeman grabbed the money, stuffed it in his pocket, and left the store.
At sentencing, the government argued Bridgeman used excessive violence during the commission of these robberies. The government further informed the court that Bridgeman was a registered sex offender at the time he committed the armed robberies. He updated his sex offender registry with Sarpy Country on the same day he committed the robberies, in the same clothing. That evidence, along with the cooperation of several brave eyewitnesses, helped to secure the convictions in this case.
This case was investigated by the Federal Bureau of Investigation and the Omaha Police Department.
Thursday 28 September 2023
Woman sentenced for arson of Wellspring Health Access Clinic in CasperRead the Press Release
Lorna Roxanne Green, age 22, of Casper, Wyoming, was sentenced to 60 months in prison with three years of supervised release, to follow her prison term, for arson of the Wellspring Health Access Clinic located in Casper. U.S. District Court Judge Alan B. Johnson imposed the sentence on September 28, 2023.
According to court documents, on May 25, 2022, Casper Police Department officers responded to the Wellspring Health Access Clinic based on a report of suspicious activity. Officers observed smoke coming from the east side of the building and dispatched the Casper Fire Department who responded and extinguished the fire. Through witness accounts and video surveillance, investigators identified a suspect who had gained entry by breaking a window, pouring gas in the facility, then leaving just prior to the report of suspicious activity.
Green was arrested on March 21, 2023, in Casper by the Casper Police Department, the Federal Bureau of Investigation (FBI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Green admitted that she set fire to the clinic, which was under construction at the time and planned to offer OB/GYN services, gender-affirming care, and abortion procedures.
U.S. Attorney Nicholas Vassallo said, “No matter what an individual’s opinions or objectives may be, the use of violence and property destruction to advance them is never acceptable. This was a reckless and serious crime which endangered the community and caused significant financial harm to the clinic’s owner. The sentence imposed today, five years of federal incarceration, appropriately reflects the gravity of Ms. Green’s offense.”
“This sentence reflects the FBI’s commitment to vigorously pursue investigations into crimes against pregnancy resource centers, faith-based organizations and reproductive health clinics,” said FBI Special Agent in Charge Mark Michalek. “We will continue to work closely with our federal, state, and local law enforcement partners such as ATF and Casper Police to hold responsible anyone who commits criminal actions, no matter the perpetrator’s justification.”
“Arson is the business of ATF, and is not only dangerous, but often deadly,” said ATF Special Agent in Charge Brent Beavers. “We are grateful for our longstanding partnerships with the FBI, Casper Police Department and Casper Fire Department. This allowed for the swift deployment and use of ATF resources such as Special Agents, Certified Fire Investigators, and our Forensic Science Lab all of which collectively contributed to our origin and cause determination.”
This crime was investigated by the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Casper Police Department.
Case No. 23-CR-00066
Wilkes-Barre Man Sentenced to 15 Years’ Imprisonment for Cocaine TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ernesto Richards, age 37, formerly of Wilkes-Barre, Pennsylvania, was sentenced today by United States District Judge Malachy E. Mannion to 180 months of imprisonment. Richards previously pleaded guilty to distributing and possessing with intent to distribute cocaine.
According to United States Attorney Gerard M. Karam, on September 22, 2022, Richards received a package shipped from Panama at his Wilkes-Barre residence, containing over a kilogram of cocaine. A subsequent search of the residence recovered an additional 150 grams of cocaine, over $11,000, and three firearms, one of which was stolen. Richards has remained in custody since his arrest that day.
The case was investigated by agents from Homeland Security Investigations and troopers from the Pennsylvania State Police. Assistant U.S. Attorney Phillip J. Caraballo prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Westfield Woman Pleads Guilty to Making Hoax Bomb Threat Against Boston Children's HospitalRead the Press Release
BOSTON – A Westfield woman pleaded guilty today in federal court in Boston to calling in a hoax bomb threat against Boston Children’s Hospital.
Catherine Leavy, 37, pleaded guilty to one count of making a false bomb threat and one count of intentionally conveying false or misleading information that a bomb was on the way to Boston Children’s Hospital. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for March 19, 2024. Leavy was initially arrested and charged by criminal complaint in September 2022 and subsequently indicted by a federal grand jury in October 2022.
In August 2022, law enforcement began monitoring threats made against Boston Children’s Hospital and its employees. Among the wide range of healthcare services it provides, Boston Children’s Hospital is home to the Gender Multispecialty Service (GeMS) program – a healthcare program focused on gender-diverse and transgender adolescents.
On Aug. 30, 2022, Boston Children’s Hospital received a telephonic bomb threat in which the caller said, “There is a bomb on the way to the hospital, you better evacuate everybody you sickos.” As a result of the call, the hospital and surrounding area was placed on lockdown status and a bomb squad was dispatched. An investigation determined no explosive devices were located at the hospital. Subscriber and call detail records and location information for the phone number that called in the threat determined that the phone number was subscribed in Leavy’s name. In addition, cell tower data indicated the phone was nearby Leavy’s residence at the time the bomb threat was made.
During a search of Leavy’s residence on Sept. 15, 2022, the phone used to make the threat was recovered. In an on-scene interview with law enforcement, Leavy expressed disapproval of Boston Children’s Hospital on multiple occasions. Leavy also admitted that she called in the threat to Boston Children’s Hospital on Aug. 30, 2022, but stated that she had no plan or intention to actually bomb the hospital.
The charge of making a false bomb threat provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. The charge of intentionally conveying false or misleading information provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement. Valuable assistance was provided by the Westfield Police Department. Assistant U.S. Attorney Jared C. Dolan, Deputy Chief of the National Security Unit, is prosecuting the case.
U.S. Attorney’s Office Honors Sixteen Individuals for Outstanding Contributions to Public SafetyRead the Press Release
SCRANTON –United States Attorney Gerard M. Karam honors sixteen individuals for their outstanding contributions to public safety. These awards are made each year to a select group of individuals who perform in an exceptional manner and who make significant contributions to our Office’s efforts to promote public safety.
Exemplary Lifetime Service as a Law Enforcement Officer
- DEA Special Agent James Matsko
This award recognizes Special Agent Matsko’s remarkable ability to work on large scale drug trafficking cases over the span of his 25-year career. Special Agent Matsko worked cases relentlessly to gather evidence which led to numerous drug and money seizures throughout the Northeastern United States and resulted in successful prosecutions of national and international drug trafficking organizations with ties to the Middle District of Pennsylvania.
- FBI Special Agent April Phillips
This award recognizes Special Agent Phillips’s tenacious work in multiple fraud and public corruption cases over the course of several years. Those cases involved local public official bribery schemes, COVID-19 pandemic fraud, corporate kickback schemes, and embezzlements by corporate executives. Her efforts have resulted in significant sentences for white collar defendants, and the recovery of hundreds of thousands of dollars in fraudulent proceeds.
Outstanding Contributions to Cooperative Law Enforcement
- FBI Special Agent A. Porter Wilson
This award recognizes Special Agent Wilson’s successful efforts to create strong working relationships between federal, state, and local law enforcement to investigate and prosecute criminals who pose a danger to our community. In particular, Special Agent Wilson assisted the Bloomsburg and Berwick Police Departments with a missing persons case. Through his efforts with local law enforcement, they were able to solve a local homicide while also identifying serial killer Harold David Haulman who was sentenced to life in prison for two Pennsylvania murders.
Distinguished Service as a Law Enforcement Officer
Eleven individuals received the United States Attorney’s Award for Distinguished Service as a Law Enforcement Officer for their exceptional work in multiple significant criminal prosecutions:
- FBI Special Agent Gary Leone
- FBI Special Agent Dan Wright
- FBI Supervisory Special Agent Joe Nelson
- DOT-OIG Special Agent Christopher Prout (formerly with DOJ-OIG)
- DOJ-OIG Special Agent Frank Adamo
This award recognizes the recipients’ significant and tireless efforts in U.S. v. Christopher Collare. Collare, a state and federal law enforcement official, had inappropriate relationships with multiple female informants over many years, extorted sex from two women in exchange for agreeing to take official actions, provided heroin to informants, and falsified official paperwork.
- DEA Group Supervisor James Hischar
- DEA Diversion Investigator Lou Callavini
- DEA Investigative Assistant Denise Williamson
This award recognizes the recipients’ exceptional work in U.S. v. Raymond Kraynak, a case that involved a Northeastern Pennsylvania doctor who maintained two drug-involved premises and unlawfully prescribed high doses of opioids to multiple patients outside of the usual course of professional practice and without a legitimate medial purpose, causing the death of five patients.
- Kingston Police Department Chief Richard Kotchik
- ATF Task Force Officer Ned Palka
- Kingston Police Department Detective Robert Miller
This award recognizes the recipients’ keen investigatory skills and their unique ability to utilize the appropriate investigatory techniques to gather compelling evidence against drug law violators, including U.S. v. Jose Raymer Tejeda and Edwin Tejeda, and U.S. v. Charles Gibson. Those cases involved drug trafficking organizations in the Wilkes-Barre region and elsewhere that distributed significant quantities of fentanyl, heroin, and cocaine. A drug dealer in the Tejeda brothers’ drug trafficking organization, distributed fentanyl to an individual who overdosed and died. The investigations resulted in the successful federal prosecutions of over two dozen defendants.
Exemplary Service in Support of Criminal Investigations
- FBI Tactical Specialist Shawn Skovronsky
- FBI Operational Support Technician Mary Hromek
The award recognizes the recipients’ outstanding contributions to the successes of the FBI Scranton Resident Agency’s investigations and this office’s prosecutions for more than 20 years. Mary Hromek handled a wide variety of essential administrative tasks at the Scranton FBI office and was the center of all communications in the FBI office and with its partner agencies. Shawn Skovronsky has provided tactical analysis and other investigative support to all special agents in the Scranton office. Their work has been instrumental in the investigative accomplishments of the Scranton FBI office and consequently in the successful prosecutions of FBI cases in this office.
“We are pleased to recognize the achievements of our colleagues who have made outstanding contributions to promoting public safety, said United States Attorney Gerard M. Karam. “The exemplary work of these sixteen individuals deserves this special recognition, and I thank them for their service.”
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Twelve People Indicted for Federal Drug Trafficking OffensesRead the Press Release
COLUMBIA, SOUTH CAROLINA — A federal grand jury in Columbia returned a 26-count indictment against 12 people for drug trafficking and firearm offenses. The indictment alleges that beginning in May 2020, John Holliday, Charlton Holliday, Curtis Clark, England Adams, Kendrick Jackson, Tommy Stuckey, Marvin MCrae, James Gamble, Marilyn Rodriguez, Steve Bates, and Larry Jones engaged in a conspiracy to possess with intent to distribute cocaine, fentanyl, methamphetamine, and heroin. Additionally, the indictment alleges that Curtis Clark, England Adams, and Marvin MCrae engaged in firearm offenses. The defendants were arraigned on September 27, 2023; one defendant remains at large.
This investigation 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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by the Drug Enforcement Administration (DEA), the Sumter County Sheriff’s Office, the Sumter Police Department, and the Clarendon County Sheriff’s Office. Assistant U.S. Attorney Elizabeth Major is prosecuting the case.
U.S. Attorney Adair F. Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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Tucson Felon Sentenced to over 11 Years for Distribution of MethamphetamineRead the Press Release
TUCSON, Ariz. – On September 5, Sean Lee Arnold, 51, of Tucson, was sentenced by United States District Judge James A. Soto to 135 months in prison, followed by five years of supervised release. Arnold previously pleaded guilty to Possession with the Intent to Distribute Methamphetamine and Possession of a Firearm by a Convicted Felon.
On August 31, 2021, law enforcement agents served a search warrant on Arnold’s home in central Tucson where they found approximately 1.35 kilograms of pure methamphetamine and a rifle. Arnold admitted to agents that he bought and sold multiple pounds of methamphetamine a month and that he knew he was prohibited from possessing weapons.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Homeland Security Investigations, the FBI, and the Drug Enforcement Administration conducted the investigation in this case. Assistant U.S. Attorneys, Ashley Culver and David Petermann, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR 21-2521-TUC-JAS
RELEASE NUMBER: 2023-140_Arnold# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Titusville Pharmacist Pleads Guilty to Distributing Opioids and Benzodiazepines Without A PrescriptionRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Basil Samir Itani (46, Titusville) has pleaded guilty to distributing and dispensing controlled substances. Itani faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, on nine occasions beginning on January 5, 2023, and continuing through May 24, 2023, a confidential source purchased controlled substances from Itani for cash and without a prescription after hours at Itani’s pharmacy. These controlled substances included oxycodone, methadone, alprazolam, methylphenidate, and morphine. Itani distributed and dispensed these controlled substances in an unauthorized manner by acting outside the usual course of professional practice and not for a legitimate medical purpose.
This case was investigated by the Drug Enforcement Administration and the Titusville Police Department. It is being prosecuted by Assistant United States Attorney Megan Testerman.
Three-Time Federal Felon Sentenced to Seven Years in Prison for Possessing a FirearmRead the Press Release
A convicted felon who received his third federal conviction earlier this year was sentenced today to seven years in federal prison.
Robert Hopkins, age 39, from Cedar Rapids, Iowa, received the prison term after a guilty plea to felon in possession of a firearm.
Evidence in the case showed that on December 1, 2022, Hopkins was driving a car at 1:19 a.m. when he ran a stop sign in Cedar Rapids. Officers with the Cedar Rapids Police Department attempted to stop him. Hopkins pulled over briefly, but then sped away. Hopkins reached speeds of over 50 mph in 25 mph zones as he led officers on a chase through residential areas. Officers pursued him and saw Hopkins throw an object out his window. Hopkins eventually lost control of his car, spun out, and rolled into a squad car. He told officers that he was “severely intoxicated.”
After taking Hopkins into custody, officers looked for the object he had thrown out of the car. They eventually located a loaded .40 caliber handgun laying on the driveway of a residence. The gun had previously been reported stolen from a Cedar Rapids resident in 2022.
This conviction was Hopkins’ third federal conviction in the Northern District of Iowa. In 2007, he was convicted of distributing crack cocaine and being a felon in possession of ammunition. In 2015, he was convicted for distributing heroin. He also has state convictions for assault and drug related crimes.
Hopkins was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Hopkins was sentenced to 84 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Hopkins is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Jason Norwood and Anthony Morfitt and investigated by the Cedar Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-30.
Follow us on Twitter @USAO_NDIA.
Three Sentenced to Federal Prison for Drug-Fueled Shooting at Greenville-Spartanburg International AirportRead the Press Release
COLUMBIA, SOUTH CAROLINA --- Three men were sentenced to federal prison after an attempted drug robbery led to a gunfight in a parking garage at the Greenville-Spartanburg International Airport.
Dequadry Kendrick Razor, 21, of Columbia, was sentenced to twenty years in prison after pleading guilty to armed robbery, conspiracy to distribute marijuana, and possessing and discharging firearms in furtherance of drug trafficking crimes. Jaondre Zidarius Collier, 23, and Tyree Laquan Smith, 21, both of Spartanburg, were sentenced to 68 months and 24 months, respectively, after also pleading guilty to drug and gun offenses.
Evidence presented to the court showed that on January 25, 2022, Smith and another man flew into GSP from Los Angeles carrying approximately fifty pounds of marijuana in two suitcases. These two men, along with Collier, had previously traveled from Charlotte to Miami to shoot music videos and then flown to California to purchase marijuana. Collier and his girlfriend flew into Charlotte and then drove to GSP to pick up Smith and the other trafficker. Unbeknownst to them, Razor and a coconspirator were sitting in a car outside the terminal, waiting to rob them. Information presented to the court showed that Razor and others had successfully robbed marijuana traffickers flying into GSP on multiple prior occasions.
After loading their suitcases into the trunk of Collier’s car, Smith and his companion climbed into the backseat. Collier pulled into a parking garage adjacent to the terminal, where the traffickers planned to transfer some of the marijuana into another vehicle. As they began to get out of the car, Razor and his coconspirator rushed in with pistols drawn, and a gunfight broke out. Smith was shot attempting to get out of the vehicle, and the would-be robbers fled without the suitcases, as the traffickers returned fire. Multiple vehicles parked in the garage were struck in the crossfire.
Smith, who had suffered a life-threatening gunshot wound, was loaded into another vehicle and rushed to a Spartanburg hospital. Collier can be seen on footage from the garage climbing back into his bullet-riddled car to chase the robbers. As Razor and his companion attempted to feed a ticket into the kiosk to exit the garage, Collier pulled up behind them and began shooting at them. An innocent bystander was trapped in her vehicle behind the fleeing robbers as Collier fired over her car, striking the kiosk. Razor and his companion were able to exit the garage and fled back to Columbia.
Collier remained at the scene, and responding law enforcement found the suitcases of marijuana in his trunk and two pistols in his glovebox. They also recovered shell casings from at least four different handguns. Investigators quickly identified the car used by the robbers, which they found at a Columbia home where Razor was living. A search of the bedroom Razor was staying in revealed a large bag of marijuana and two handguns. One of these guns was forensically matched to shell casings recovered from the parking garage and from the well of the windshield of the robbers’ car.
“Armed drug trafficking and the violence it spawns pose a threat to even our most secure and critical infrastructure,” said U.S. Attorney Adair F. Boroughs. “No one should have to fear getting caught in crossfire at an airport. We will continue to work with our law enforcement partners to protect the public from this type of brazen violence.”
“The reckless disregard of the public’s safety by these defendants is unconscionable,” said Special Agent in Charge of the FBI Columbia Field Office Steve Jensen. “The diligent efforts of all the law enforcement partners have ensured that these individuals are paying the price for their violent acts and drug trafficking into the Greenville-Spartanburg International Airport.”
Senior United States District Judge Henry M. Herlong sentenced the defendants in this case. Several additional defendants have pleaded guilty and are awaiting sentencing in connection with this shooting and related drug trafficking. There is no parole in the federal system.
The case was investigated by the Federal Bureau of Investigation (FBI), the Spartanburg County Sheriff’s Office, Richland County Sheriff's Department (RCSD) and the GSP Airport District Police Department. Assistant U.S. Attorney Chris Schoen is prosecuting the case.
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Three Individuals Convicted for Laundering Money Stolen from Scam Victims Through Gift CardsRead the Press Release
A jury in Los Angeles convicted three individuals for their roles in laundering proceeds of large-scale consumer fraud schemes through gift card transactions. Blade Bai, Bowen Hu and Tairan Shi were convicted of conspiracy to launder proceeds of wire fraud. Bai was also convicted of a separate money laundering conspiracy count.
As part of the scheme, fraudsters engaged in government-imposter scams and tech support scams. In a government-imposter scam, fraudsters contact consumers and impersonate government officials, such as officials with the Social Security Administration or local police officers. The fraudsters falsely claim that victims need to purchase gift cards to resolve an issue, often claiming that the victims are subject to a pending arrest warrant or that the victims have a problem with their Social Security number. In a tech support scam, fraudsters deceive victims into believing that there is a serious problem with the victim’s computer or with an online or mobile app account access and that the problem can only be resolved by paying substantial amounts through gift cards.
In this case, telephone scammers instructed victims to purchase gift cards from the retail store Target and provide the scammers with the account numbers and access codes listed on the gift cards. The defendants then distributed the numbers assigned to the gift cards to “runners,” who used the funds on the cards at Target stores (primarily in Los Angeles and Orange counties) to purchase consumer electronics, other gift cards and other items. In one instance presented as evidence at trial, runners acting on behalf of the defendants redeemed gift cards that originated from a victim in Illinois approximately 13 minutes after the victim purchased the cards. Through the purchases and other transactions at multiple Target stores, the defendants and their co-conspirators sought to conceal the fact that the gift cards had been originally funded with fraudulent proceeds.
“Defendants played a key role in victimizing American consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This case is a testament to the commitment of the department and our partners to ensuring that all those who knowingly facilitate fraud face justice.”
“This investigation is a good example of law enforcement collaboration coming together to protect communities from fraudulent activities,” said Special Agent in Charge Eddy Wang of Homeland Security Investigations (HSI) Los Angeles “HSI and its partners on the El Camino Real Financial Crimes Task Force will continue to track down criminal organizations preying on innocent victims and ensure they are held accountable.”
“These defendants knowingly laundered the proceeds of a fraudulent scheme that targeted vulnerable citizens, including older Americans,” said Assistant Director in Charge Donald Always of the FBI Los Angeles Field Office. “This significant conviction should educate potential victims about the scam and send a message to anyone conducting similar schemes that the bureau and our partners are serious about combating this fraud. Anyone being asked to purchase a gift card in order to resolve a technical issue or to avoid an arrest should not spend money but instead, make a report to the FBI at IC3.gov.”
A fourth defendant, Yan Fu, had previously pleaded guilty and was sentenced to 20 months in prison.
Bai, Hu and Shi are scheduled to be sentenced on Jan. 26, 2024.
HSI and the FBI Los Angeles Field Office, West Covina Resident Agency investigated the case. The investigation was conducted under the auspice of HSI Los Angeles' El Camino Real Financial Crimes Task Force, a multi-agency task force comprised of federal and state investigators focused on financial crimes in Southern California.
The Social Security Administration, Office of the Inspector General also provided assistance during the investigation, as did the following: the Brea (California) Police Department, Glynn County (Georgia) Police Department, Fontana (California) Police Department, Charlotte-Mecklenburg (North Carolina) Police Department, Streamwood (Illinois) Police Department, Cleveland (Ohio) Police Department, Madera County (California) Sheriff’s Office, New York Police Department, Norwood (New Jersey) Police Department, Loudoun County (Virginia) Sheriff's Office, Waukesha County (Wisconsin) Sheriff's Department, Fremont (California) Police Department, Marin County (California) Sheriff’s Office, County of Hawaii Police Department, Henderson (Nevada) Police Department, Wilmington (Massachusetts) Police Department, Las Vegas (Nevada) Metropolitan Police Department, Lewisville (Texas) Police Department, Gardena (California) Police Department, Des Moines (Iowa) Police Department, Cobb County (Georgia) Sheriff’s Department, Millburn (New Jersey) Police, Wauwatosa (Wisconsin) Police Department, San Angelo (Texas) Police Department, Fairfax City (Virginia) Police Department and Virginia Beach (Virginia) Police Department.
Trial Attorneys Wei Xiang and Meredith Healy of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Monica Tait of the Major Frauds Section for the Central District of California prosecuted the case.
The Consumer Protection Branch and United States Attorney’s Office for the Central District of California are part of the Transnational Elder Fraud Strike Force, which investigates and prosecutes scams run by transnational criminal organizations, including mass mailing and telemarketing fraud scams.
If you purchased a gift card at the direction of a scammer, immediately call the gift card issuer and ask them to freeze the gift card numbers involved – and save your receipt and the gift card. Then, report the crime to the Federal Trade Commission at www.reportfraud.ftc.gov/#/ or 877-382-4357, to the FBI’s Internet Crime Complaint Center at www.ic3.gov, and to your local police department.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch.
Additional information about the U.S. Attorney’s Office for the Central District of California may be found at www.justice.gov/usao-cdca.
Third Defendant in Amazon Fraud Scheme Sentenced to PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that KENOY STEWART, 27, of Bridgeport, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to nine months of imprisonment, followed by three years of supervised release, for defrauding Amazon.com, Inc. (“Amazon”).
According to court documents and statements made in court, Stewart created multiple vendor accounts with Amazon allowing him to sell merchandise through the website on a third-party basis. He often opened the accounts using false names, email addresses and other identifying information. After setting up the accounts, Stewart represented to Amazon that he was shipping it valuable merchandise to be held for sale by the company. In reality, he would not ship the merchandise, and would later falsely claim that it had been lost, supporting his false claims with fabricated documents. Amazon sent Stewart a series of refunds for the purportedly lost merchandise.
Through this scheme, Stewart defrauded Amazon of $1,063.762.82. Judge Thompson ordered him to pay full restitution.
On February 10, 2022, Stewart, pleaded guilty to one count of wire fraud. Stewart, who is released on a $50,000 bond, is required to report to prison on October 30.
Two other individuals involved in this scheme pleaded guilty to the same charge. On September 5, 2023, Stewart’s brother, Oshane Stewart, who defrauded Amazon of approximately $742,000, was sentenced to 18 months of imprisonment. On September 27, 2023, Rajhni Yankana, who defrauded Amazon of approximately $210,000, was sentenced to five months of imprisonment and five months of home detention.
This matter was investigated by the Federal Bureau of Investigation, with assistance from Amazon. The case was prosecuted by Assistant U.S. Attorneys Conor M. Reardon and Christopher W. Schmeisser.
The Boeing Company to Pay $8.1 Million to Resolve False Claims Act AllegationsRead the Press Release
The Boeing Company, headquartered in Arlington, Virginia, has agreed to pay $8,100,000 to resolve allegations that it violated the False Claims Act by submitting false claims and making false statements in connection with contracts with the U.S. Navy to manufacture the V-22 Osprey, a tiltrotor military aircraft.
The settlement announced today resolves allegations that from approximately 2007 through 2018, Boeing failed to comply with certain contractual manufacturing specifications in fabricating composite components for the V-22 at its facility in Ridley Park, Pennsylvania. Specifically, the government contends that Boeing failed to perform required monthly testing on autoclaves used in the composite cure process and was not in compliance with additional requirements related to the testing.
“The government expects contractors to adhere to contractual obligations to which they have agreed and for which they have been paid,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our commitment to hold accountable contractors who violate such obligations and undermine the integrity of the government’s procurement process.”
“All government contractors have a responsibility to follow the obligations and protocols set forth by their contracts,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “This office is committed to accountability and protection from false claims as shown in cases such as this.”
“Maintaining the integrity of the U.S. Department of Defense (DoD) supply chain is a top priority for the DoD Office of Inspector General’s Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “The DoD expects its contractors to adhere to contract specifications and provide quality products to the U.S. military. We are committed to working with our law enforcement partners to investigate allegations of contractors circumventing required testing protocols and submitting false claims during the DoD procurement process.”
“The integrity of the military procurement process, and ultimately warfighter safety and our national security, demand that our contractors comply strictly with manufacturing requirements, including protocols for equipment testing,” said Special Agent in Charge Greg Gross of the Navy Criminal Investigative Service (NCIS) Economic Crimes Field Office. “NCIS and our partners remain committed to rooting out any noncompliance with manufacturing specifications that threatens warfighter readiness.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by former employees of Boeing who worked in composites fabrication and autoclave operations with the V-22 program. Under the qui tam provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Roath et al. v. The Boeing Company, No. 16-cv-6547 (E.D. Pa.). The Relators will receive $1,539,000 in connection with the settlement.
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 Eastern District of Pennsylvania, with assistance from the DCIS, Naval Criminal Investigative Service, as well as subject matter experts from the Defense Contract Management Agency and the Naval Air Systems Command.
This matter was handled by Trial Attorney Amy Likoff of the Civil Division and Assistant U.S. Attorneys Joel Sweet and David Degnan for the Eastern District of Pennsylvania.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementTax preparer receives jail timeRead the Press Release
HOUSTON – The owner of Montalvo Tax Service has been ordered to federal prison, announced U.S. Attorney Alamdar S. Hamdani.
Jean Montalvo pleaded guilty June 30 to one count of making and subscribing a false return.
U.S. District Judge David Hittner varied upward and ordered Montalvo to serve 36 months in federal prison to be immediately followed by one year of supervised release. At the hearing, the court heard how she suffered from numerous medical conditions and was sorry for her actions. However, Judge Hittner imposed the longer sentence due to her criminal history and the loss amount in the case. The court also ordered the defendant to pay $508,350 in restitution.
As part of her plea, Montalvo admitted she began filing tax returns under her business in Angleton in 2010. She charged a fixed fee and would either collect her from her clients’ income return or from a direct payment.
From 2014 through 2016, Montalvo willfully failed to report a portion of the amount she received for customer fees. As a result of her scheme, the IRS suffered a loss of $197,136.
She also filed approximately 58 federal income tax returns for the calendar years 2014 through 2017 which contained false and fraudulent items. Some of those included charitable contributions, qualified fuel property, business meals, business mileage and entertainment expenses. Based on these false and fraudulent filings, there was an additional tax harm of $311,214.
Montalvo was taken into custody after the sentencing where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Rodolfo Ramirez and James Hu are prosecuting the case.
Southbridge Man Sentenced for Distributing MethamphetamineRead the Press Release
BOSTON – A Southbridge man was sentenced today in federal court in Worcester for methamphetamine distribution.
Christopher Williams, 35, was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to one year in prison, followed by a term of two years supervised release. In September 2021, Williams pleaded guilty to one count of distribution of a mixture and substance containing methamphetamine and one count of distribution of 50 grams or more of a mixture and substance containing methamphetamine.
On two occasions in January 2021, Williams sold multiple ounces of methamphetamine to an undercover officer for $4,500 in Southbridge.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Southbridge Police Chief Shane Woodson made the announcement. Assistant U.S. Attorney Danial E. Bennett of the Worcester Branch Office prosecuted the case.
South L.A. Man Guilty of Illegal Gun Sales, Including ‘Ghost Guns’Read the Press Release
LOS ANGELES – A federal judge today convicted a South Los Angeles man of participating in a scheme in which he and others illegally sold 22 guns and three silencers.
Jonathan Perez, 34, was found guilty of one count of conspiracy to engage in the business of dealing in firearms without a license, one count of engaging in the business of dealing in firearms without a license, and one count of possessing an unregistered firearm silencer.
The evidence at trial showed that Perez and his co-conspirators sold 22 guns and three firearm silencers over the course of seven transactions to a confidential informant. In a text to an associate that was introduced as evidence in the trial, Perez said he was “selling straps to the cartel.” Perez personally manufactured many of the 18 “ghost guns” that were sold to the informant during the transactions in 2017.
Today’s conviction follows a three-day bench trial in August before United States District John A. Kronstadt, who scheduled a sentencing hearing for January 25. When he is sentenced, Perez will face a statutory maximum sentence of 25 years in federal prison as a result of his conviction on the three counts.
Two other defendants in this case pleaded guilty in 2018 and 2021 to separate charges stemming from a related narcotics conspiracy.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this matter.
Assistant United States Attorney Declan T. Conroy of the General Crimes Section and Assistant United States Attorney Maria Jhai of the Violent and Organized Crime Section are prosecuting this case.
Somerset County Man Charged with Distributing Fentanyl Resulting in Four DeathsRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man was arrested for distributing fentanyl that resulted in four deaths and distributing cocaine, U.S. Attorney Philip R. Sellinger announced today.
Mauricio Gutierrez, 50, of Somerset, New Jersey, is charged by complaint with two counts of distribution of fentanyl that resulted in a death and one count of distribution of cocaine. Gutierrez made his initial appearance today before U.S. Magistrate Judge James B. Clark III in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
On June 24, 2022, Gutierrez distributed controlled substances containing fentanyl in at least two separate transactions.
The first individual to whom Gutierrez distributed fentanyl used it, along with two other individuals. Shortly thereafter the three victims were located in a vehicle that was parked outside an establishment in North Brunswick, New Jersey, and all three were unresponsive. Two victims were pronounced dead and the third victim died two days later. Law enforcement located a white powder, which was determined to contain fentanyl, inside the vehicle.
In a separate transaction, Gutierrez distributed fentanyl to another individual who was located shortly thereafter in a vehicle in Franklin Township, New Jersey. The victim was unresponsive and was pronounced dead at the scene. Law enforcement located a white powder, which was determined to contain fentanyl, inside the vehicle.
Subsequent toxicology reports determined that the victims had lethal amounts of fentanyl in their blood.
On Sept. 27, 2023, law enforcement officials arrested Gutierrez after observing him engage in a hand-to-hand narcotics sale in Piscataway, New Jersey. The controlled substance that Gutierrez distributed tested positive for cocaine.
The charges of drug distribution resulting in death each carry a maximum potential penalty of life imprisonment and a mandatory minimum penalty of 20 years in prison. The charge of distributing controlled substances carries a maximum penalty of 20 years. The three charges each carry a fine of up to $1 million.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz, with the investigation leading to the charges. He also thanked the North Brunswick Department, under the direction of Chief Joe Battaglia, and Franklin Township Police Department, under the direction of Public Safety Director Quovella Maeweather, for their assistance.
The investigations leading to these charges is part of Organized Crime Drug Enforcement Task Force’s (OCDETF) operations. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Shawn Barnes, Chief of the Office’s OCDETF/Narcotics Unit, and Assistant U.S. Attorney Christopher Fell of the Office’s OCDETF/Narcotics Unit, in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
gutierrez.complaint.pdfSix People Indicted for Drug, Firearms, and Robbery Crimes Related to Robbery of Undercover ATF AgentRead the Press Release
NEW ORLEANS, LOUISIANA – MICHAEL LOTT, DIANTA TROPEZ, VERNELL WOODARD, QUINDELE ADDISON, SHEENA RUDOLPH, and CORIS ADDISON, all of New Orleans, Louisiana, were charged in an eleven-count superseding indictment by a federal grand jury on September 22, 2023, announced U.S. Attorney Duane Evans.
According to the superseding indictment, DIANTA TROPEZ, VERNELL WOODARD, QUINDELE ADDISON, SHEENA RUDOLPH, and CORIS ADDISON conspired to and, in fact, distributed methamphetamine to an undercover Alcohol, Tobacco, and Firearms (ATF) agent and another individual on August 29, 2023 at a Westbank, New Orleans apartment.
After this methamphetamine distribution deal was completed, VERNELL WOODARD arranged to sell an ounce of fentanyl to the undercover ATF agent on the following day. When the undercover ATF agent and the other individual arrived at the apartment complex the next day, WOODARD called and told them to come up to the same apartment. As they were coming upstairs, MICHAEL LOTT, armed with an AR-15 style weapon hid in an interior closet inside the apartment. Once the undercover ATF agent and the other individual were in the apartment, DIANTA TROPEZ arrived. TROPEZ entered the apartment, took a Glock pistol from the front pouch of his hoodie, and pointed the pistol at the undercover ATF agent and the other individual, demanding that they get down and hand over their possessions. Simultaneously, MICHAEL LOTT emerged from the closet and pointed the AR-15 style weapon at them, also , demanding that they turn over their possessions.
As a result of this criminal conduct, MICHAEL LOTT, DIANTA TROPEZ, VERNELL WOODARD, QUINDELE ADDISON, SHEENA RUDOLPH, and CORIS ADDISON are charged in an eleven-count superseding indictment.
Count One charges DIANTA TROPEZ, VERNELL WOODARD, QUINDELE ADDISON, SHEENA RUDOLPH, and CORIS ADDISON with conspiring to distribute and to possess with the intent to distribute methamphetamine. Count Two charges DIANTA TROPEZ, VERNELL WOODARD, and QUINDELE ADDISON with distributing more than five grams of pure methamphetamine. The penalties for Counts One and Two are at least five years and up to forty years in prison, a fine of up to $5,000,000, and at least four years of supervised release.
Count Three charges MICHAEL LOTT, DIANTA TROPEZ, and VERNELL WOODARD with conspiring to rob a person of money belonging to the United States. Count Four charges MICHAEL LOTT, DIANTA TROPEZ, and VERNELL WOODARD with a substantive count of armed robbery of a person of money belonging to the United States. Count Five charges MICHAEL LOTT, DIANTA TROPEZ, and VERNELL WOODARD with brandishing a firearm during and in relation to a crime of violence, namely the armed robbery charged in Count Four. Count Six charges MICHAEL LOTT, DIANTA TROPEZ, and VERNELL WOODARD with assaulting an officer of the United States with a deadly weapon.
The penalties for these robbery-related counts are as follows. For the conspiracy in Count Three, a maximum penalty of five years in prison, a fine of up to $250,000, and up to three years of supervised release. For the robbery in Count Four, a penalty of up to twenty-five years in prison, a fine of up to $250,000, and up to three years of supervised release. As to the brandishing a firearm charge in Count Five, a mandatory minimum of at least seven years up to life in prison that must run consecutive to every other term of imprisonment, a fine of up to $250,000, and up to five years of supervised release. For the assault on a federal officer charged in Count Six, up to twenty years in prison, a fine of up to $250,000, and up to three years of supervised release.
Counts Seven, Eight, and Nine charged MICHAEL LOTT, DIANTA TROPEZ, and QUINDELE ADDISON, respectively, with being felons in possession of firearms. The penalty for each defendant is up to fifteen years in prison, a fine of up to $250,000, and up to three years of supervised release. Count Ten charges QUINDELE ADDISON with possessing a firearm in furtherance of a drug trafficking crime, namely the conspiracy to distribute methamphetamine charged in Count One. The penalty for that crime is a mandatory minimum of at least five years up to life in prison that must run consecutive to every other term of imprisonment, a fine of up to $250,000, and up to five years of supervised release. Finally, QUINDELE ADDISON and VERNELL WOODARD are charged in Count Eleven with maintaining a drug involved premises, which is punishable by up to twenty years in prison, a fine of up to $500,000, and up to three years of supervised release. Each count also requires payment of a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the superseding indictment is merely a charging document and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The investigation giving rise to the superseding indictment was conducted primarily by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Louisiana State Police, the Federal Bureau of Investigation, the New Orleans Police Department and Crimestoppers GNO. The case is being prosecuted by Assistant United States Attorneys David Haller of the Violent Crime Unit and Nolan Paige, Chief of the Narcotics Unit.
Six Michigan Businesses Agree to Pay over $500,000 to Resolve False Claims Act Allegations Relating to Improper Paycheck Protection Program LoansRead the Press Release
DETROIT– United States Attorney Dawn N. Ison announced today that six Michigan businesses have agreed to pay $534,630 to settle allegations that the businesses violated the False Claims Act (FCA) by knowingly making false certifications to the U.S. Small Business Administration (SBA) relating to loan eligibility under the Paycheck Protection Program (PPP).
Joining in the announcement was Brady Ipock, Acting Special Agent-in-Charge of the SBA’s Office of the Inspector General, Central Region.
Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to certain small businesses and other entities struggling to pay employees and other business expenses. PPP loan applicants were required to certify that neither the applicant, any owner of the applicant, nor any business owned or controlled by any of them, had ever obtained a direct or guaranteed loan from the SBA that was currently delinquent or had defaulted in the last seven years and caused a loss to the government.
In 2020 and 2021, Burton Hotel, Inc., 8 Mile & Hubble, Inc., Gather of Troy, Inc., Alyass Toledo, Inc., DB Troy Pub, LLC, and Fort Wayne Business Hotel, Inc. collectively obtained 10 PPP loans. The United States contended that these businesses falsely certified that they were eligible for the PPP loans, when in fact they were categorically ineligible because, in the last seven years, one of their owners had defaulted on a prior SBA loan and caused a loss to the government.
“PPP loans were intended to provide critical relief to help small businesses here in Michigan and elsewhere,” said U.S. Attorney Ison. “Our office will continue to investigate and hold accountable any individual or business that obtained relief funds under the PPP or other COVID-19 assistance programs that they didn’t deserve.”
This matter was handled by Assistant U.S. Attorney Anthony Gentner from the United States Attorney’s Office for the Eastern District of Michigan, with assistance from the SBA’s Office of General Counsel and the SBA Office of the Inspector General.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also 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.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Sioux City Man Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
Braden Rogers, age 23, from Sioux City, Iowa, received the prison term after he plead guilty in federal court on March 22, 2023, to Possession of Child Pornography.
Evidence at Rogers’ sentencing hearing established that between May 1, 2020, and August 10, 2021, Rogers possessed over 100 videos of child sexual abuse material including material depicting prepubescent children or children who had not attained the age of 12. Evidence further established that Rogers used social media to distribute material that portrayed sadistic or masochistic conduct or sexual abuse and exploitation of an infant or toddler to others.
Rogers was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 66 months’ imprisonment and fined $500. He was also ordered to pay $5,000 in restitution to the victims. Rogers must also serve a 5-year term of supervised released following the prison term. There is no parole in the federal system.
Rogers is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was prosecuted by Assistant United States Attorney Kraig R. Hamit and investigated by the Iowa Division of Inspections & Appeals, United States Department of Health and Human Services, Sioux City Police Department, The Drug Enforcement Administration, Iowa Medicaid Fraud Unit, and the Federal Bureau of Investigations
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-04020.
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Sacramento Man Pleads Guilty to Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Bryan Tamblyn, 39, of Sacramento, pleaded guilty today to receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court records, between July 2018 and August 2019, Tamblyn used a BitTorrent client to knowingly receive thousands of files containing visual depictions of children engaging in sexually explicit conduct. Some of those files included children under the age of 12.
This case is the product of an investigation by the Sacramento Valley Hi-Tech Crimes Task Force, the Sacramento Sheriff’s Department, and the Federal Bureau of Investigation. Assistant U.S. Attorney Christina McCall is prosecuting the case.
Tamblyn is scheduled to be sentenced on Jan. 11, 2024, by U.S. District Judge Daniel J. Calabretta. Tamblyn faces a mandatory minimum penalty of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the Court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Repeat felon sentenced for illegally possessing loaded assault rifleRead the Press Release
HOUSTON – A 33-year-old Houston resident and repeat violent felon has been ordered to prison for illegally possessing a firearm, announced U.S. Attorney Alamdar S. Hamdani.
Joseph Terrell Goody pleaded guilty May 25.
U.S. District Judge Alfred H. Bennett has now ordered Goody to serve 57 months in federal prison to be immediately followed by two years of supervised release.
On Sept. 26, 2020, law enforcement stopped Goody for traffic violations. At that time, they found him to be holding an assault rifle loaded with 30 rounds of ammunition.
A struggle ensued, but authorities were able to subdue detain Goody and secure the weapon.
The investigation revealed Goody has served multiple state prison sentences for felony convictions including robbery, burglary of a habitation, continuous assault of a family member and possession of a controlled substance. As such, he is prohibited per federal law of possessing firearms or ammunition.
Goody will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Houston Police Department conducted the investigation. Assistant U.S. Attorney Stuart Tallichet prosecuted the case.
Project Safe Neighborhoods Cases Result in Federal Prison Sentences for Two MenRead the Press Release
LAKE CHARLES, La. – Two men were sentenced today for possession of a firearm by a prohibited person, announced United States Attorney Brandon B. Brown. United States District Judge James D. Cain, Jr. sentenced the following defendants:
Gregory Dewayne McCummings, 34, of Lake Charles, was sentenced to 24 months in prison, followed by 3 years of supervised release, with credit for time served. According to information introduced in court, McCummings was involved in a traffic stop with deputies from the Calcasieu Parish Sheriff’s Office. During the encounter, McCummings was searched, and deputies found a clear plastic baggie in his pants pocket. He admitted that the baggie was used to store marijuana and previously did contain marijuana. Inside his vehicle, deputies found a backpack with a loaded Smith & Wesson .40 caliber firearm, a large plastic baggie containing multiple smaller plastic baggies with suspected marijuana, a clear plastic bottle containing a liquid believed to be PCP, and a clear plastic bottle containing suspected ecstasy pills. McCummings has a prior felony conviction and knew he was prohibited from possessing any firearm or ammunition. He pleaded guilty to the charge on May 31, 2023.
Melvin Blake, Jr., 30, of Lake Charles. Blake was sentenced to 21 months in prison, followed by 3 years of supervised release, with credit for time served. On November 2, 2021, detectives with Calcasieu Parish Sheriff’s Office executed a permitted search of a residence on Ellis Street in Lake Charles, wherein Blake was present. Deputies recovered a Smith & Wesson, Model 910, 9mm semi-automatic pistol from the bedroom. Blake admitted that the firearm belonged to him and that he had purchased it from someone for $150. He has a prior felony conviction and knew he was prohibited from possessing the firearm. Blake pleaded guilty to the charge on May 31, 2023.
These two cases were investigated by ATF and the Calcasieu Parish Sheriff’s Office and prosecuted by Assistant United States Attorney Daniel J. McCoy.
These cases are 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. PSN is 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. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Poly-Drug Trafficker Is Sentenced to 10 YearsRead the Press Release
CHARLOTTE, N.C. - U.S. District Judge Frank D. Whitney sentenced a poly-drug trafficker to 10 years in prison late yesterday, announced Dena J. king, U.S. Attorney for the Western District of North Carolina. In addition to the term of incarceration, Deion Rashaad Thompson, 29, of Charlotte, was also ordered to serve five years of supervised release.
According to filed court documents and court proceedings, between January 2021 and June 2022, law enforcement conducting an ongoing investigation into drug trafficking networks in Charlotte, identified Thompson as a local drug distributor. Court records show that law enforcement working in an undercover capacity and with cooperating individuals arranged multiple controlled buys of illicit narcotics with Thompson, including fentanyl, heroin, methamphetamine, cocaine and cocaine base. One of the drug transactions occurred at a residence in Charlotte known to law enforcement from numerous drug overdoses that had occurred there.
On March 10, 2023, Thompson pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, methamphetamine, heroin, and fentanyl, three counts of distribution of fentanyl, and one count of distribution of methamphetamine.
Thompson is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King credited the Western District’s Organized Crime Drug Enforcement Task Force (OCDETF) and thanked the FBI and the Charlotte Mecklenburg Police Department for their investigative efforts.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/ocdetf.
Assistant U.S. Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Pinon Man Found Guilty of Murder of Missing Navajo WomanRead the Press Release
PHOENIX, Ariz. – Yesterday, a jury found Tre C. James, 31, of Pinon, Arizona, guilty of the First Degree Murder of Jamie Yazzie. The jury also found James guilty of several acts of domestic violence committed against three former intimate and dating partners. The guilty verdict followed a seven-day jury trial before the Honorable Douglas L. Rayes. Sentencing is set for January 29, 2024. James faces a mandatory life sentence for his crimes.
James was charged with nine federal crimes. Counts 1 and 2 alleged that James shot and killed Jamie Yazzie, a Pinon woman who went missing in the summer of 2019, and whose remains were found on the Hopi Indian Reservation in November 2021. Ms. Yazzie was listed as a missing person by both Federal and Tribal law enforcement. The investigation into Ms. Yazzie’s disappearance was headed by the Federal Bureau of Investigation, but multiple agencies provided invaluable assistance at all stages, including the Navajo Nation Division of Public Safety Criminal Investigation Services, Navajo Nation Police Department, Bureau of Indian Affairs (Hopi), and Navajo County Sherriff’s Office.
While investigating Ms. Yazzie’s disappearance, law enforcement uncovered several acts of domestic violence that James committed against other women. The jury unanimously found James guilty of these domestic violence counts as well, Counts 3 through 9.
“Vindicating the rights of missing and murdered indigenous persons requires all the energy and compassion we have,” said United States Attorney Gary Restaino.“That means not only investigation and prosecution of tough cases, but also community engagement, cultural competence, and active listening to next of kin and other family members.”
FBI Special Agent Dustin Drace led the investigation. Assistant U.S. Attorneys Jennifer E. LaGrange and Sharon K. Sexton, District of Arizona, Phoenix, handled the prosecution. Ms. Yazzie’s family, including her mother, father, grandmother, and other relatives and friends attended all seven days of trial, and want to express gratitude to their attorney, Darlene Gomez, for doing the same.
The Crime Victims’ Rights Act recognizes the importance of private lawyers in amplifying victims’ rights, and the Federal Crime Victim Assistance Fund is available to pay travel and lodging costs and per diem for next of kin. The U.S. Attorney’s Office for the District of Arizona is committed to addressing the persistent violence endured by Native American families and communities in the state of Arizona, including by working with Tribal nations to address the important issues of missing or murdered indigenous persons, and acts of domestic violence. This office and the Department of Justice view this work as a priority for its law enforcement components.
CASE NUMBER: CR-22-08073-PCT-DLR
RELEASE NUMBER: 2023-139_James# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Palm Beach County Career Offender Sentenced to More than Twelve Years in Federal Prison for Distributing FentanylRead the Press Release
MIAMI – On September 22, 2023, career offender Monfort Desir, 36, of Lake Worth, Florida was sentenced by United States District Judge Aileen M. Cannon to 151 months in federal prison, to be followed by three years of supervised release, for distributing fentanyl.
According to the court record, the investigation of Desir began when law enforcement searched a decedent’s phone relating to an overdose death and identified a phone number related to narcotic sales. Thereafter, an undercover law enforcement officer contacted Desir and requested fentanyl.
On February 23, 2022, Desir distributed fentanyl capsules to the undercover officer. Xylazine and para-fluorofentanyl were also identified in the fentanyl capsules that Desir distributed. Para-fluorofentanyl is a fentanyl analogue. Xylazine is a non-opioid sedative that is not approved for human use and can cause amputation of the limbs. Narcan is ineffective in the event of an overdose on xylazine.
Desir continued to distribute fentanyl capsules to the undercover officer on five separate occasions. Xylazine and para-fluorofentanyl continued to be identified in the fentanyl capsules.
Prior to his commission of the offenses, Desir had two prior, separate felony convictions for the sale of cocaine. Desir was therefore subject to being sentenced as a career offender under the United States Sentencing Guidelines.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Deanne L. Reuter of the Drug Enforcement Administration (DEA), Miami Field Division, and Sheriff Ric Bradshaw of the Palm Beach County Sheriff’s Office (PBSO) made the announcement.
Mr. Lapointe praised the investigative efforts of DEA and PBSO. Assistant U.S. Attorney Shannon O’Shea Darsch prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-80050.
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POSTPONED: United States Attorney Will Thompson and Law Enforcement to Hold Press Conference in Child Sex Trafficking CaseRead the Press Release
***UPDATE: The sentencing hearing for Larry Allen Clay Jr. has been continued. As a result, the press conference has been postponed.***
Initial advisory:
CHARLESTON, W.Va. – United States Attorney Will Thompson and law enforcement officials will hold a press conference on Thursday, September 28, 2023, following the sentencing of Larry Allen Clay Jr.
The press conference is contingent upon the completion of the sentencing hearing, scheduled for 1:30 p.m. The time of the press conference will be announced once the hearing concludes.
WHAT: Press conference for the sentencing of Larry Allen Clay Jr.
WHEN: Thursday, September 28, 2023. Time TBA.
WHERE: United State’s Attorney’s Office, Robert C. Byrd United States Courthouse, 300 Virginia Street East, Charleston.
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.
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Orange County Doctor of Osteopathy Indicted in Quarter Billion Dollar Fraud Targeting Pandemic Program for Uninsured PatientsRead the Press Release
LOS ANGELES – A federal grand jury has charged a doctor who operated clinics in Westminster and Garden Grove with defrauding a COVID-19 program for uninsured patients by submitting more than a quarter billion dollars in claims – ultimately receiving about $150 million in payments – for services not covered under the program or simply not provided, the Justice Department announced today.
Anthony Hao Dinh, 64, of Newport Coast – a licensed doctor of osteopathy who was an ear, nose and throat specialist, as well as a facial plastic surgeon – was charged Wednesday in an 18-count indictment with defrauding the Health Resources and Services Administration (HRSA) COVID-19 Uninsured Program.
Dinh was initially charged in this case in a criminal complaint filed April 10. Today’s indictment significantly expands the case by increasing the total amount of fraudulent claims allegedly submitted to HRSA, adding money laundering charges and further allegations about other schemes to defraud pandemic relief programs, and charging Dinh with obstructing the government’s investigation into improper health care billing.
The indictment charges Dinh with 12 counts of wire fraud, five counts of money laundering (with two of those charges alleging the transfer of more than $11 million to personal stock trading accounts) and one count of obstructing justice. Dinh, who is free on a $7 million bond, is scheduled to be arraigned on the indictment on October 30 in United States District Court in Santa Ana.
This is the largest fraud scheme in the nation targeting the HRSA COVID-19 Uninsured Program uncovered at this time.
Two other defendants charged with Dinh in April also face new charges:
- Hanna (“Hang”) Trinh Dinh, 65, of Lake Forest, who is Dinh’s sister, has agreed to plead guilty to conspiracy to commit wire fraud and admitted helping submit fraudulent Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) applications that sought more than $260,000 in COVID relief funds; and
- Matthew Hoang Ho, 66, of Melbourne, Florida, was charged on May 2 in a grand jury indictment with conspiracy to commit wire fraud, wire fraud and money laundering in relation to the PPP and EIDL applications, and he is scheduled to go on trial on February 6, 2024.
In relation to the fraud against HRSA, over the course of about nine months – from July 2020 to March 2021 – Dinh allegedly submitted fraudulent claims for the treatment of patients who were insured, services that were not rendered, and services that were not medically necessary. “As a result of these false and fraudulent claims, HRSA made payments to defendant Dinh, through [his medical] practices, in the approximate amount of $150 million.”
The Uninsured Program was designed to prevent the further spread of the pandemic by providing access to uninsured patients for testing and treatment. The Uninsured Program was also designed to provide financial support to health care providers fighting the COVID-19 pandemic by reimbursing them for services provided to uninsured individuals.
In relation to the PPP and EIDL program, the indictment alleges that Dinh submitted, or caused to be submitted, approximately 65 fraudulent loan applications that sought nearly $8 million and caused the programs to disburse approximately $2.8 million in funds.
An indictment contains allegations that a defendant has committed a crime. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If he were to be convicted in this case, Dinh would face up to 20 years in prison for the wire fraud and three of the money laundering charges, up to 10 years for two of the money laundering charges, and up to 20 years for the obstruction of justice charge that alleges he submitted false patient records in response to a grand jury subpoena.
The case against Dinh, his sister and Ho is being investigated by the U.S. Department of Health and Human Services’ Office of the Inspector General; the FBI; IRS Criminal Investigation; the Department of Homeland Security, Office of Inspector General; the Defense Criminal Investigative Service; the AMTRAK Office of Inspector General; and the California Department of Health Care Services.
Assistant United States Attorney Roger A. Hsieh of the Major Frauds Section, and Justice Department Assistant Chief Justin M. Woodard and Trial Attorney Helen H. Lee of the Fraud Section are prosecuting this case.
Odessa Man Pleads Guilty to Possession of MethRead the Press Release
PECOS – An Odessa man pleaded guilty today to possession with intent to deliver methamphetamine.
According to court documents, Angel Vargas-Valdivia, 23, attempted to enter the United States from Mexico through the Presidio Port of Entry on August 8. During a Customs and Border Protection inspection, officers noticed evidence of tampering on the rear quarter panels of Vargas’s vehicle, as well as abnormally heavy vehicle doors. X-ray imaging revealed anomalies within the vehicle’s quarter panels, side doors, rear cargo door, trunk and roof. Further inspection revealed 154 bundles weighing approximately 72.2 kilograms. A crystal-like substance extracted from the bundles tested positive for properties of methamphetamine.
Vargas pleaded guilty to one count of possession with intent to deliver methamphetamine. A sentencing date has not been set. Vargas faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and HSI Special Agent in Charge Francisco B. Burrola, El Paso Division, made the announcement.
HSI is investigating the case.
Assistant U.S. Attorney Scott Van Greenbaum is prosecuting the case.
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North Carolina man sentenced for being a felon in possession of a gunRead the Press Release
ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that Michael Alan Jones, 24, of Charlotte, North Carolina, who was convicted of being a felon in possession of a firearm and ammunition, was sentenced to time served (10 months) by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Charles E. Moynihan, who handled the case, stated that in February 2019, Jones was convicted in Alamance County, North Carolina, of two felony crimes, and as a result is legally prohibited from possessing firearms and ammunition. On March 19, 2022, in the Town of Leroy, in Genesee County, Jones possessed a semiautomatic rifle and ammunition in a vehicle in the vicinity of Route 33 and Griswold Road and School Road.
The sentencing is the result of an investigation by the Genesee County Sheriff’s Office, under the direction of Sheriff William Sheron, Jr., and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia.
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