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8 November 2023
Registered sex offender charged with new child pornography chargesRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Alexander Grupp, 31, of Lancaster, NY, was charged by criminal complaint with attempted enticement and attempted production of child pornography. The charges carry a mandatory minimum penalty of 10 years in prison and a maximum of life.
Assistant U.S. Attorney Caitlin M. Higgins, who is handling the case, stated that according to the complaint, in November 2022, the FBI received a phone call from Erie County Probation requesting assistance regarding Grupp, a probationer and New York State level 2 sex offender. A probation officer advised that she seized a laptop from Grupp after he admitted to her that he was enticing minors to produce child pornography through the mobile application Discord. Investigators searched the laptop and recovered conversations sexual in nature and sexually explicit images exchanged between Grupp and a 15-year-old girl (Victim) on Discord.
Grupp made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was detained.
The complaint is the result of an investigation by the Federal Bureau of Investigation Child Exploitation and Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, the Town of Tonawanda Police Department, under the direction of Chief James Stauffiger, and the Erie County Probation Department, under the direction of Commissioner Richard B. Robillard.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Red Lake Man Sentenced to More Than Five Years in Prison for Drunk-Driving ManslaughterRead the Press Release
MINNEAPOLIS – A Red Lake man has been sentenced to 64 months in prison followed by three years of supervised release for involuntary manslaughter resulting from a drunk-driving crash that resulted in the death of his passenger, announced U.S. Attorney Andrew M. Luger.
According to court documents, on the early morning of November 6, 2021, Gerald Wayne Johnson, 27, was driving his vehicle while intoxicated with a passenger in the front seat. Johnson was driving well over 90 miles per hour on a public road within the Red Lake Indian Reservation with a posted speed limit of 20 miles per hour. While speeding and driving recklessly, Johnson failed to handle a curve, jumped the curb, and crashed his vehicle into a tree, severely damaging the entire right side of his vehicle. Johnson’s passenger was ejected from the vehicle and died from her injuries caused by the crash. Investigators recovered several bottles of alcohol from inside and outside of Johnson’s totaled vehicle. Johnson’s blood draw after the crash revealed a blood alcohol content of .224.
Johnson was sentenced yesterday in U.S. District Court before Judge Michael J. Davis to one count of involuntary manslaughter.
This case is the result of an investigation conducted by Red Lake Police Department, FBI, and Minnesota State Patrol.
Assistant U.S. Attorney Benjamin Bejar prosecuted the case.
Red Lake Man Pleads Guilty to Domestic Assault as Habitual OffenderRead the Press Release
MINNEAPOLIS – A Red Lake man has pleaded guilty to violently assaulting another individual as a habitual offender, announced U.S. Attorney Andrew M. Luger.
According to court documents, in the late evening of April 9, 2023, Shawn Rene Lussier, 55, physically assaulted another individual in a hotel room at the Seven Clans Casino on the Red Lake Indian Reservation by repeatedly punching and kicking the individual. The assault caused serious bodily injury to the victim, including a bloody lip, a one-inch laceration to the scalp that required stitches and left a scar, and other body bruises, and caused over $450.00 in property damage to the hotel room. According to court documents, Lussier has several Tribal Court convictions for Criminal Domestic Violence involving domestic assaults committed on separate occasions between May 2017 and December 2021.
Lussier pleaded guilty yesterday in U.S. District Court before Judge Michael J. Davis to one count of domestic assault by a habitual offender. A sentencing hearing will be scheduled at a later date.
This case is the result of an investigation conducted by the Red Lake Police Department and the FBI.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Readout of Justice Department Leadership’s Meetings with Law Enforcement and Community LeadersRead the Press Release
This week, Justice Department leaders met with law enforcement and community leaders at a time of increased threats against Jewish, Muslim, and Arab communities across the country. The Department remains vigilant in combating threats against Americans based on their religion, race, color, ethnicity, or national origin.
“In this heightened threat environment, the partnerships between the Department of Justice, state and local law enforcement, and the communities we serve matter more than ever,” said Attorney General Merrick B. Garland. “That is why, this week, the Department held meetings with law enforcement and community leaders to discuss what they are seeing on the ground and how we can best support them. In these conversations, I reiterated that the Justice Department is committed to protecting our communities from hate-fueled violence. The Department will continue bringing together stakeholders to support our shared goal of preventing, disrupting, and prosecuting illegal acts of hate fueled by antisemitism, Islamophobia, or anti-Arab bias.”
Today, Attorney General Garland, Associate Attorney General Vanita Gupta, FBI Director Christopher Wray, Assistant Attorney General for Civil Rights Kristen Clarke, Acting Community Relations Service Director Justin Lock, and other Department officials met with Jewish community leaders in Washington, D.C. The leaders expressed their concerns about the significant increase in threats against Jewish community members, organizations, and businesses over the past month. Department officials discussed their continued commitment to protecting Jewish communities and highlighted recent examples of prosecutions against individuals for threatening or attempting to harm Jewish people across the country.
Also today, in Brooklyn, New York, Deputy Attorney General Lisa O. Monaco joined U.S. Attorney Breon Peace for the Eastern District of New York for a roundtable discussion with local Jewish leaders. Deputy Attorney General Monaco emphasized that the Justice Department’s top priority is keeping the American people safe, and that the Department will use every available tool to work with partners across the country to combat hate.
These meetings come as there has been a significant increase in the volume and frequency of threats against Jewish, Muslim, and Arab communities across the country. During the meetings, Department leadership stressed that no one in the United States should have to live in fear of violence because of where they or their family comes from or because of how they worship.
On Monday, Attorney General Garland and Associate Attorney General Gupta met with community leaders before the Civil Rights Division’s quarterly interagency meeting hosted by Assistant Attorney General Clarke with leaders representing Muslim, Arab, Sikh, South Asian, and Hindu communities. The meeting was co-hosted by Officer Shoba Sivaprasad Wadhia of the Department of Homeland Security’s Office for Civil Rights and Civil Liberties. The Department’s Civil Rights Division first began convening regular meetings with Muslim, Arab, Sikh, South Asian, and Hindu organizations following the Sept. 11, 2001, attacks. The organizations asked the Justice Department and other federal agencies to continue to take actions to protect their communities from unlawful discrimination and violence.
Also on Monday, Attorney General Garland, Deputy Attorney General Monaco, and Associate Attorney General Gupta hosted the Law Enforcement Quarterly Meeting, at which representatives from the Justice Department’s law enforcement and grantmaking components together with their state and local law enforcement partners, discussed the increase in threats against Jewish, Muslim, and Arab communities. Attorney General Garland emphasized to the group that in moments of crisis, strong partnerships and trust between law enforcement and communities are essential and that successfully preventing, disrupting, and prosecuting illegal acts of hate requires close coordination across government and across the country.
The meeting also included discussions regarding violent crime and challenges in recruitment and retention of law enforcement officers. Director Steven M. Dettelbach of the Bureau of Alcohol, Tobacco and Firearms (ATF) discussed the work ATF is doing to combat gun violence, as well as new technologies, such as ghost guns and machine gun conversion devices, that exacerbate the threat posed by illegal firearms. The Department continues to implement strategies to combat violent crime. A cornerstone of this effort is providing state and local partners with resources and support to help keep their communities safe. In light of that goal, the Justice Department announced on Thursday that Department investments in community safety have reached over $5.6 billion.
Earlier this month, Attorney General Garland directed the FBI and all 94 U.S. Attorneys’ Offices across the country to work with local law enforcement and community leaders to protect vulnerable communities in the wake of Hamas’ Oct. 7 terrorist attack in Israel.
Last week, the Department hosted a virtual forum to highlight the successful implementation of the United Against Hate (UAH) initiative in all 94 U.S. Attorneys’ Offices and discuss efforts to combat unlawful acts of hate. In conjunction with the event, the Civil Rights Division released a document highlighting the reach of the UAH program in its first year and examples of its impact in communities across the country. These include enhancing coordination on responding to threats to religious communities and sparking the creation of new initiatives at local colleges and similar institutions.
On Oct. 30, the Department announced that it is awarding over $38 million in grants to support the investigation and prosecution of hate crimes, increase hate crimes reporting, expand victim services, and improve community awareness.
Puerto Rico Man Found Guilty of Drug Trafficking and MurderRead the Press Release
WASHINGTON – A jury today found Jann Jousten Aponte-Rivera, 27, of San Juan, Puerto Rico, guilty of participating in the drug-related murder of Shantay Myisha Butler, 42, of Frederick, MD. Specifically, Aponte-Rivers was found guilty of conspiracy to distribute five kilograms or more of cocaine, one count of continuing criminal enterprise – causing the intentional death of Shantay Butler – and one count of causing the death of Shantay Butler through the use of a firearm during and in relation to a drug-trafficking offense.
In announcing the verdict, U.S. Attorney Graves and the FBI’s Special Agent in Charge Jacobs commended investigators at the FBI, the U.S. Postal Inspector Service (USPIS), the Montgomery Co. Police Department (MCPD), Frederick City Police Department, San Juan USPIS OIG, the Puerto Rico Police Department (Bayamon Homicide Division), and the Institute of Forensic Sciences of Puerto Rico.
According to the government’s evidence, Aponte-Rivera was part of a large-scale drug trafficking organization based in San Juan that was sending kilogram quantities of cocaine to the mainland United States, including the Washington D.C. region, via the U.S. Postal Service. Law enforcement identified over 50 parcels of cocaine shipped by the organization from Puerto Rico to the Washington, D.C. area with a wholesale street value of at least $2 million. Once the drugs arrived in the metropolitan area, a local drug trafficking organization distributed the cocaine to mainland dealers.
Additionally, the Puerto Rico organization’s members allegedly traveled from San Juan to the Washington, D.C. area to collect drug proceeds, and then surreptitiously traveled on commercial airliners to return the proceeds to the conspiracy’s leader, Rey “Gordo” Rivera Ruiz, 40, and others.
According to the government’s evidence, during the life of the drug conspiracy Rivera Ruiz and his associates shipped between 50 kilograms and 150 kilograms of cocaine to the local drug trafficking organization. The charged drug trafficking conspiracy began around October 2019 and ended in April 2021, when Aponte-Rivera was indicted with co-defendants Rivera Ruiz, Nomar Medina Diaz and Michael Gabriel Rivera Hernandez . The four men have remained in custody since their April 2021 arrests.
The leader of the Washington, D.C.-area drug trafficking organization owed several thousand dollars to the Puerto Rico drug trafficking organization and had been ordered to pay for several kilograms of cocaine which did not arrive in the Washington, D.C. area.
On Oct. 14, 2020, Aponte-Rivera and Rivera Hernandez lured the leader of the Washington, D.C.-area drug trafficking organization and Shantay Butler to a desolate part of Toa Baja in Puerto Rico. When the leader of the Washington, D.C.-area drug trafficking organization arrived with Ms. Butler in a car, Aponte-Rivera and Rivera Hernandez ambushed them. They both pulled out firearms and opened fire on the vehicle. The leader of the Washington, D.C.-area drug trafficking organization was shot five times, remained in a coma for several weeks, but survived. His girlfriend, Ms. Butler, died of her wounds.
The FBI arrested Aponte-Rivera on Apr. 15, 2021, in Allentown, Pa.
Rivera Ruiz pleaded guilty on May 26, 2022, before U.S. District Chief Judge James E. Boasberg, to conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Judge Boasberg scheduled sentencing for Dec. 20, 2023. In total, 10 individuals have been convicted for their roles in this drug trafficking conspiracy, and murder.
Aponte-Rivera remains held pending his sentencing by Judge Boasberg, who scheduled sentencing for February 8, 2024. The charges require a mandatory 30-year prison term with a potential sentence of life imprisonment.
In announcing the verdict, U.S. Attorney Graves and the FBI’s Special Agent in Charge Jacobs commended investigators at the FBI, the U.S. Postal Inspector Service (USPIS), the Montgomery Co. Police Department (MCPD), Frederick City Police Department, San Juan USPIS OIG and the Puerto Rico Police Department Homicide.
The case was prosecuted by Assistant U.S. Attorneys Anthony Scarpelli and David T. Henek, of the Violence Reduction and Trafficking Offenses section of the U.S. Attorney’s Office. Former Assistant U.S. Attorneys Rachel Fletcher and Dineen Baker assisted in the investigation and charging of this case.
Prince George’s County Man Sentenced to 25 Years in Federal Prison for Coercing Minor Victims to Produce Child PornographyRead the Press Release
Baltimore, Maryland - U.S. District Judge Paula Xinis sentenced Adrian Nathaniel Haynes, age 24, of Oxon Hill, Maryland, to 25 years in federal prison, followed by 25 years supervised release, for production of child pornography. Judge Xinis also ordered that, upon his release from prison, Haynes must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Malik Aziz of the Prince George’s County Police Department.
According to court documents and information presented at the sentencing hearing, on April 1, 2019, Victim 1 contacted the National Center for Missing and Exploited Children (“NCMEC”) and reported that an Instagram user with the username “darealrico_”, later identified as Haynes, had demanded that Victim 1 send images and videos of Victim 1 engaged in sexually explicit conduct to him over the internet via direct share to darealrico_. Victim 1 also disclosed that darealrico_ threatened Victim 1 that if Victim 1 did not continue to produce images of Victim 1 engaged in sexually explicit conduct, darealrico_ would expose Victim 1 by publishing the previously produced images and videos online.
Special Agents with the FBI determined that the darealrico_ Instagram account was registered on November 6, 2018, with a phone number matching a phone number that Haynes had provided to law enforcement previously. Law enforcement also determined that many of the communications from this account during the relevant period were coming from Haynes’ residence in Prince George’s County, Maryland.
A search warrant was obtained for the contents of the Instagram account associated with darealrico_. Special Agents with the FBI discovered communications from Haynes to Victim 1 on November 12, 2018, and multiple other dates, in which Haynes directs Victim 1 to produce videos of Victim 1 engaged in sexually explicit conduct and send the produced child sexual abuse material to Haynes. On November 12, 2018, while communicating via the derealrico_ account, Haynes falsely denied to Victim 1 that his name was Adrian, falsely told Victim 1 that he was 15 years old, and falsely identified himself to Victim 1 by using a fictitious name, all in an effort to convince Victim 1 to continue producing child pornography and thwart Victim 1’s efforts to identify him.
Law enforcement’s review of Haynes’s Instagram account revealed communications with 16 other Instagram users who self-identified as minors and sent child sexual abuse material to Haynes pursuant to his request. Haynes used a similar method for each, asking the user how old they were, confirming that they were a minor, then coercing the user into producing child sexual abuse material in the manner requested by Haynes.
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 Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Erek L. Barron commended the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Timothy Hagan, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Parsons to lead civil rights enforcement in Northern West VirginiaRead the Press Release
Pictured L-R: U.S. District Judge John Preston Bailey; Assistant U.S. Attorney Jeffrey Parsons; U.S. Attorney William Ihlenfeld, Northern District of West Virginia.WHEELING, WEST VIRGINIA - Wheeling native Jeffrey Parsons has been tabbed to lead civil rights enforcement efforts in Northern West Virginia.
United States Attorney William Ihlenfeld announced today that Parsons has been hired to prosecute hate crimes, disability and housing rights violations, and the enforcement of laws that prohibit discrimination based upon race, color, national origin, sex, and religion.
“Jeff is a tremendous addition to our team,” said U.S. Attorney Ihlenfeld. “He has a strong desire to serve the public, to speak up for those who cannot speak for themselves, and to defend the rights of those in need.”
Parsons comes to the U.S. Attorney’s Office from the private sector, where he handled consumer protection, employment, and complex litigation matters. Prior to that, he served for thirteen years as the career law clerk for U.S. District Court Judge John Preston Bailey. He has served on the board of Appalachian Outreach, Inc., which aids poverty and disaster-stricken residents of West Virginia, and as a court appointed special advocate (CASA) for children in the legal system.
Parsons received both his undergraduate and law degrees from West Virginia University.
Oregon Man Sentenced to 5 Years in Federal Prison for Interstate StalkingRead the Press Release
BOISE – Joel Waters, 44, of Wallowa, Oregon, was sentenced to the maximum sentence of 60 months in federal prison for interstate stalking, U.S. Attorney Josh Hurwit announced today. Waters’ victim appeared in court and provided a victim impact statement. “We were all living in fear. We were all hostages in an invisible prison of Joel’s making,” the victim said.
According to court records, between October 7, 2020, and December 24, 2020, Waters traveled between Oregon and Idaho to harass and intimidate the victim who was residing in Boise. Waters took dogs from the victim’s home and car, slashed the tires on the victim’s vehicle, set fire to the victim’s residence in Oregon on two occasions, placed a tracking device on the victim’s vehicle, set fire to the victim’s vehicle, and sent the victim numerous harassing emails. Some of Waters’ acts occurred in violation of a civil protection order that the victim had obtained against Waters in Oregon.
“The defendant’s crimes in this case were horrific, dangerous, and deeply affected the courageous victim,” said U.S. Attorney Hurwit. “I am glad that justice has been served and honored to support the victim as she moves forward with her life.”
“We’re thankful to our investigators as well as our federal partners for ensuring that Joel Waters is held accountable for his crimes,” said BPD Criminal Investigation Division Captain Matt Jones. “The victim in this case was terrorized by Waters for months and while we can’t undo the impact this had on their life, we hope this sentencing brings them some peace.”
Chief U.S. District Judge David C. Nye also sentenced Waters to three years of supervised release and ordered him to pay a $2,000 fine. Judge Nye sentenced Waters to an additional 30 days in prison for contempt of court as a result of Waters’ behavior in the courtroom at sentencing.
U.S. Attorney Josh Hurwit commended the cooperative efforts of the Federal Bureau of Investigation, the Boise Police Department, and the Oregon State Police, which led to charges. Assistant U.S. Attorney Kassandra McGrady prosecuted this case.
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Omaha Man Sentenced to 140 Months’ Imprisonment for Distribution and Receipt of Child PornographyRead the Press Release
Acting United States Attorney Susan Lehr announced that Donald R. Hamilton, 37, of Omaha, Nebraska, was sentenced on November 8, 2023, in federal court in Omaha for receipt and distribution of child pornography. United States District Judge Brian C. Buescher sentenced Hamilton to 140 months’ imprisonment. There is no parole in the federal system. After his release from prison, Hamilton will begin a 5-year term of supervised and will be required to register as a sex offender.
On several dates beginning in March 2021 and ending on August 29, 2021, an investigator with the Nebraska State Patrol was conducting an online investigation on a peer-to-peer file sharing network. The investigator identified a specific residential internet protocol (IP) address associated with unique file identifiers from known images of child pornography. The investigator was able to make a direct connection to the suspect’s IP address and was able to download files containing child pornography using investigative software. Further investigation revealed Hamilton was the suspect.
On September 28, 2021, the Nebraska State Patrol executed a search warrant at Hamilton’s residence on Read Street in Omaha. During the forensic examination of Hamilton’s residence, the Nebraska State Patrol located evidence of the specific peer-to-peer client software on Hamilton’s device.
The files downloaded between March 27, 2021, and August 29, 2021, totaled 670 images and 25 videos. These 695 files included depictions of child pornography containing prepubescent children, adults having sex with children, and children being bound with ligatures.
Hamilton had been on pretrial release pending sentencing, but it was revoked on October 27, 2023, when the Court learned that Hamilton had attended a birthday party in the company of children in violation of his conditions of pretrial release. Hamilton failed to report the contact.
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 United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Nebraska State Patrol.
Northwest Safe Trails Task Force awarded DOJ grant to enhance prosecutions in tribal communitiesRead the Press Release
Seattle – The Northwest Safe Trails Task Force, made up of the FBI and five western Washington Tribes, will receive $888,748 from DOJ’s Bureau of Justice Assistance to enhance efforts to battle violent crime and drug crime in tribal communities, announced Acting U.S. Attorney Tessa M. Gorman. The funding, delivered over five years, will pay for an additional federal prosecutor who can review and file cases in either tribal or federal court.
“I congratulate the Swinomish Indian Tribal Community for their successful application for this grant funding. Working to make our tribal communities safer is a key priority for the Department of Justice,” said Acting U.S. Attorney Gorman. “Having an additional prosecutor working with the Swinomish, Tulalip, Lummi, Nooksack, and Upper Skagit Tribes will improve our ability to assist the Tribes with the prosecutions they identify as key to community safety.”
Swinomish Senator Brian Porter, as Chairman of the Swinomish Law and Order Committee, championed this grant application and sees this grant as key to improving safety within tribal communities. “Partnering with our federal and tribal law enforcement is essential to combating violent and drug related crimes on our tribal lands,” said Senator Porter. “The FBI Pacific Northwest Safe-Trails Task Force has been an ally to Swinomish and our neighboring Tribes as we collaborate to prosecute large drug offenses that have a high community impact. The Safe Trails Special Assistant United States Attorney is a key component in our partnership as they will be able to work directly with our federal and tribal law enforcement to bring cases in federal court. We applaud the efforts and partnership with the United States Attorney’s Office for the Western District of Washington,” said Senator Porter.
The FBI investigates major crimes such as homicide, sexual abuse, major drug trafficking, and felony assaults on tribal land. This will be the second term of a dedicated prosecutor for the Safe Trails Task Force. During the last two-year grant period there were more than eight different federal cases prosecuted involving armed drug dealing in and around tribal communities.
“It takes resources to successfully perform our work.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Reducing and investigating violent crime on our state’s reservations is a goal for the FBI and our partners. Securing of this funding and enabling additional personnel to support investigations and prosecutions substantially advances that aim.”
The Special Assistant United States Attorney who is hired to work with the Safe Trails Task Force will join three other tribal liaisons working in the U.S. Attorney’s Office Western District of Washington. The current liaisons are Assistant United States Attorneys J. Tate London, Jocelyn M. Cooney, and Michael Harder.
New Orleans Man Sentenced for Role in Large Scale Cocaine ConspiracyRead the Press Release
NEW ORLEANS – On November 2, 2023, United States District Judge Jay C. Zainey sentenced HAKIM SHABAZZ, age 46, of New Orleans, for conspiring to violate the Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
Judge Zainey sentenced SHABAZZ to 60 months in the Bureau of Prisons to be followed by 5 years of supervised release. He also ordered SHABAZZ to pay a mandatory special assessment fee of $100.
According to court records, the Calcasieu Parish Sheriff’s Office stopped an individual traveling from New Orleans to Houston on Interstate 10 and found $948,174 in cash in the vehicle, as well as several cell phones. Those phones contained text messages about drug trafficking, as well as ledgers. By analyzing text messages and phone records, agents determined that SHABAZZ, who operated an auto body shop, was receiving cocaine shipments, that were hidden in gas canisters, and distributing them throughout New Orleans. SHABAZZ admitted that the conspiracy involved between 50 and 150 kilograms of cocaine.
This case was investigated by the Drug Enforcement Administration and the Calcasieu Parish Sheriff’s Office. Assistant United States Attorney David Haller of the Violent Crime Unit is in charge of the prosecution.
New Orleans Man Pleads Guilty to Federal Drug Trafficking and Firearms ChargesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on November 2, 2023, JONATH WILLIAMSON, age 39, pled guilty to Counts 1 through 4 of an indictment that charged him with possession with intent to distribute methamphetamine and fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(C) (Count 1); possession of a firearm in furtherance of a drug trafficking crime, in violation of 18 U.S.C. § 924(c) (Count 2); being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. §§ 922(g) and 924(a)(8) (Count 3); and, possession of a firearm with an obliterated serial number, in violation of 18 U.S.C. §§ 922(k) and 924(a)(1)(B )(Count 4).
As to Count 1, WILLIAMSON faces a maximum term of imprisonment of twenty years, up to a $1,000,000 fine, and at least 3 years of supervised release. As to Count 2, WILLIAMSON faces a term of imprisonment between five years up to life imprisonment, which must run consecutive to any other sentence, up to a $250,000 fine, and up to 5 years of supervised release. As to Count 3, WILLIAMSON faces a term of imprisonment of up to fifteen years, a fine of up to $250,000, and up to three years of supervised release. As to Count 4, WILLIAMSON faces a term of imprisonment up to five years, a fine of up to $250,000, and up to three years of supervised release. As to each count, WILLIAMSON also faces payment of a mandatory special assessment fee of $100.00. WILLIAMSON is set for sentencing on February 27, 2024.
According to court documents, on March 16, 2023, members of the New Orleans Police Department (NOPD) Special Response Team (SRT), NOPD Violent Crime Abatement Investigative Team (VCAIT), and Federal Bureau of Investigation (FBI) New Orleans Violent Crime Task Force (NOVCTF), executed a search warrant at a location on Camelia Street, in New Orleans. WILLIAMSON was present at the time of the warrant’s execution and was arrested based on outstanding NOPD warrants for theft. A search of WILLIAMSON revealed distributable amounts of methamphetamine and fentanyl in seven small bags in his front pocket. Additionally, WILLIAMSON was found in possession of over $2,900 in U.S currency, drug paraphernalia, and multiple keys and key fobs.
Among the items in WILLIAMSON’s possession was the key fob to a black Dodge Ram truck on the scene. Inside the vehicle, agents located two firearms: a stolen Smith & Wesson Model M&P M2.0, .40 caliber pistol and a Palmetto Armory Model PA-15, 5.56 caliber rifle, with an obliterated serial number. Also inside of the vehicle were quantities of methamphetamine, fentanyl, as well as drug paraphernalia consistent with distribution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney Sarah Dawkins of the Violent Crime Unit is in charge of the prosecution.
New Castle Resident Pleads Guilty to Drug Trafficking and Firearm CrimesRead the Press Release
PITTSBURGH, PA – Sahire Walker was convicted of committing crack cocaine trafficking and firearm crimes, United States Attorney Eric G. Olshan announced today.
Walker, age 45, of New Castle, Pennsylvania, pled guilty before United States District Judge David Stewart Cercone. Walker pled guilty to committing the following crimes on June 4, 2020: (1) possession of cocaine base with intent to distribute, and (2) possession of a firearm in furtherance of a drug trafficking crime. Judge Cercone scheduled sentencing to occur on March 26, 2024, at 11:00 a.m.
The law provides for a maximum total sentence of at least 5 years and up to life in prison and a fine of up to $2,250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed is to be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The New Castle Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the convictions in this 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 of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Neosho Man Sentenced to 25 Years for Kidnapping Conspiracy, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Neosho, Mo., man has been sentenced in federal court for his role in a kidnapping conspiracy that resulted in the torture and death of the victim, and in a separate and unrelated case for illegally possessing stolen firearms.
Lawrence William Vaughan, also known as “Scary Larry,” 52, was sentenced by U.S. District Judge M. Douglas Harpool on Tuesday, Nov. 7, to 25 years in federal prison without parole.
Kidnapping, Torture, and Murder
On April 27, 2023, Vaughan pleaded guilty to his role in a conspiracy to commit kidnapping in July 2020.
Five co-defendants have pleaded guilty and await sentencing in this case. Freddie Lewis Tilton, also known as “Ol’ Boy,” 50, and Carla Jo Ward, 49, both of Joplin; James B. Gibson, 41, of Neosho; Amy Kay Thomas, 40, of Webb City, Mo.; and Russell Eugene Hurtt, also known as “Uncle,” 51, of Greenwood, Mo., have pleaded guilty and await sentencing.
Vaughan admitted that he participated in a conspiracy to kidnap the victim, identified as “M.H.,” in July 2020. Tilton offered Ward and Vaughan $5,000 each to locate and secure M.H. for him. Ward picked up M.H., whom she knew was being sought by Tilton, and took him to Vaughan’s residence. Vaughan texted Tilton, stating “Call me quickly handing (M.H.) to you.” Vaughan and Tilton continued communicating throughout the early morning hours of July 15, 2020. Vaughan sent a text message to Tilton that read, “He’s got 2 guns.” A few hours later, Vaughan sent a text message to Tilton that read, “OK we’ve got both his guns put up,” and “Guns are secure I’m waiting for you.”
Tilton, Thomas, and Gibson arrived at Vaughan’s residence in the early morning hours of July 15, 2020. They bound M.H.’s hands with handcuffs, and duct tape was placed around his mouth and other parts of his body. Gibson, Thomas, and others assaulted M.H. for a period of time. M.H. was cut, beaten, shot at, and burned with a blowtorch. Tilton fatally shot M.H. in the head. Vaughan and others cleaned up the blood and damage created during the assault and shooting of M.H. They wrapped M.H.’s body in plastic wrap and transported it to Hurtt’s property.
Law enforcement officers executed a search warrant at Hurtt’s property on July 28, 2020, based on information that a deceased body was located on the acreage. When officers attempted to contact the occupants of the residence, Tilton fired multiple shots from inside the residence at the officers. Tilton was apprehended.
Officers found M.H.’s body on the property. Officers searched the residence and found a Rigarmi .25-caliber pistol, an Ithaca .22-caliber rifle, a Remington .22-caliber rifle without a serial number, a Harrington and Richardson 12-gauge shotgun, a Ruger 9mm handgun, and a Taurus 9mm handgun without a serial number.
Illegally Possessing Firearms
On Feb. 24, 2021, Vaughan pleaded guilty to one count of being an unlawful user of a controlled substance in possession of a firearm and two counts of possessing a stolen firearm.
Vaughan admitted that he was in possession of a DB9 9mm handgun, which was found in the glove box of his truck and had been reported stolen, on Jan. 4, 2019.
Vaughan also admitted that he was in possession of a Glock 9mm handgun, which had been reported stolen, on March 12, 2019. The handgun was lying on the couch inside a travel trailer, which had been stolen two days earlier and was found on Vaughan’s property. Vaughan was inside the trailer, where officers also found methamphetamine and drug paraphernalia.
These cases were prosecuted by Assistant U.S. Attorney Ami Harshad Miller. They were investigated by the FBI, the Newton County, Mo., Sheriff’s Department, the Neosho, Mo., Police Department, the Joplin, Mo., Police Department, the Ozark Drug Enforcement Team, and the Cherokee County, Kan., Sheriff’s Department.
Organized Crime Drug Enforcement Task Force
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Nehawka Man Sentenced for Bank FraudRead the Press Release
Acting United States Attorney Susan Lehr announced that Nolan Balfour, 34, of Nehawka, Nebraska, was sentenced on November 8, 2023, in federal court in Omaha, Nebraska for bank fraud. United States District Court Judge Brian C. Buescher sentenced Balfour to 30 days’ imprisonment. There is no parole in the federal system. After Balfour’s release from prison, he will begin a 5-year term of supervised release. As part of his sentence, Balfour was ordered to pay $500,205.93 in restitution to First Nebraska Bank.
On March 4, 2013, Balfour and his wife signed a Promissory Note with First Nebraska Bank for the amount of $1,160,000. The note was a 5-year commitment and was renewable annually. On March 11, 2016, this note was modified. The purpose of this note was to finance Balfour’s farming operations in the Nehawka, Nebraska area. In 2014, Balfour began having shortfalls and was having trouble with his loan. On January 10, 2017, Balfour submitted a financial statement to First Nebraska Bank for Fiscal Year 2016. In this financial statement, Balfour overstated his assets, specifically, the amount of corn and soybean that had been harvested and the heads of livestock that he had on hand. Balfour signed this balance sheet stating that it was true and correct when he knew that the information contained in this financial statement was not true and correct. Balfour knew that this financial statement was going to be relied upon by First Nebraska Bank in deciding whether or not to renew his loan. In 2018, Balfour filed for bankruptcy and, during the bankruptcy proceedings, admitted that this financial statement was false and that he knew it would be relied upon by First Nebraska Bank. First Nebraska Bank suffered an economic loss as a result of Balfour’s misrepresentations. First Nebraska Bank’s deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”).
This case was investigated by the Federal Bureau of Investigation.
Natin Paul Now Facing Wire Fraud Charges in Superseding IndictmentRead the Press Release
AUSTIN, Texas – Federal prosecutors presented a superseding indictment in Austin, charging Natin Paul, aka Nate Paul, 36, with four new counts related to wire fraud.
According to court documents, Paul, allegedly conspired to obtain money from limited partners by falsely representing that he would isolate the partnership’s assets to be used exclusively for the benefit of the partnership. The superseding indictment alleges that Paul’s scheme allowed unrestricted use of limited partnership funds.
Adding to the initial eight counts of false statements to lenders, Paul is charged with one count of conspiracy to commit wire fraud and three counts of wire fraud. The new charges carry penalties of up to 20 years in prison with fines of $250,000 per count. Each of the eight counts in Paul’s initial June 6 indictment carries a maximum penalty of up to 30 years in prison with a fine of $1 million. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas made the announcement.
The FBI and State Securities Board are investigating the case.
Assistant U.S. Attorneys Robert Almonte, Alan Buie and Dan Guess are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Multiple defendants prosecuted on federal firearms, drug chargesRead the Press Release
SAVANNAH, GA: Five people have been indicted in the Southern District of Georgia on felony charges including illegal firearms possession and drug distribution, while additional defendants have been sentenced to federal prison or await further proceedings after pleading guilty to federal gun charges.
The cases are prosecuted as part of Project Safe Neighborhoods in collaboration with federal, state, and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally possess guns.
“The continuing work toward making our community safer demands the removal of guns from the hands of individuals who illegally possess them,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “That especially includes holding accountable previously convicted felons found in possession of firearms.”
In the past five years, more than 800 defendants have been prosecuted in the Southern District of Georgia for firearms offenses – most often for possessing a firearm after conviction for a previous felony. That charge carries a statutory penalty of up to 15 years in prison, and there is no parole in the federal system.
Those indicted during the November term of the U.S. District Court Grand Jury include:
- Tacumsa Xcaiver Lovett, A/K/A “GB Poncho,” 24, of Grovetown, Ga., charged with Distribution of Fentanyl; Distribution of Marijuana and Fentanyl; Possession with Intent to Distribute Oxycodone; Possession with Intent to Distribute Marijuana and Fentanyl; and Possession of a Firearm in Furtherance of a Drug Trafficking Crime;
- Zanuck Lorenzo Berry, 43, of Martinez, Ga., charged with Possession with Intent to Distribute Cocaine and Methamphetamine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and Possession of a Firearm by a Convicted Felon;
- Jeremy Studdard, 42, of Dublin, Ga., charged with Possession of a Firearm by a Convicted Felon.
- Robert Antonio Green, 26, of Savannah, charged with Possession of a Firearm by a Convicted Felon; and,
- Matthew Lacey, 29, of Savannah, charged with two counts of Possession of a Firearm by a Convicted Felon.
All indicted defendants are considered innocent unless and until proven guilty.
Defendants recently adjudicated on federal firearms charges include:
- Lyondo Larell Ware, a/k/a “China,” 43, of Augusta, was sentenced to 120 months in prison and fined $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon. Ware, a member of Augusta’s Loyalty Over Everything (L.O.E.) criminal street gang, was on felony probation when Richmond County deputies and Georgia Department of Community Supervision officers found a loaded pistol while searching his residence in September 2021.
- Arthur Singleton, 46, of Savannah, was sentenced to 70 months in prison after pleading guilty to Possession of Ammunition by a Convicted Felon. Savannah police officers arrested Singleton in February 2023 while investigating a trespassing call at a Savannah residence and found a bag containing loaded high-capacity gun magazines in Singleton’s waistband.
- Tyrell Smith, 32, of Savannah, was sentenced to 68 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Smith, who had an active arrest warrant related to a March 2022 Savannah exchange of gunfire with a neighbor, ran from Savannah police who arrested him when they found him carrying a pistol.
- Johnny Harris, 23, of Savannah, was sentenced to 44 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. He was arrested in October 2022 when Savannah police officers conducting surveillance near Frazier Homes determined Harris possessed an assault-style pistol while fleeing the area.
- Jonathan Bennett Capece II, 54, of Dublin, Ga., was sentenced to 24 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. Dublin police officers arrested Capece in April 2020 after finding drugs and two pistols in his vehicle during a traffic stop.
- DeShawn Tisdale, 24, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers found a pistol in Tisdale’s vehicle while investigating a trespassing call at a Savannah residence in July 2021.
- Calvin Polite, 36, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers found a pistol in Polite’s possession in September 2022 while investigating a report of shots fired in a Savannah neighborhood.
- Keith Ponsell, 34, of Jesup, Ga., awaits sentencing after pleading guilty to Possession of an Unregistered Firearm. A Georgia State Patrol trooper found an illegal “pen” gun in Ponsell’s pocket during a traffic stop in Jesup in June 2022.
- Akeem Ajmia Lanier, 34, of Metter, Ga., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Metter police officers found a pistol in Lanier’s vehicle during a May 2022 traffic stop.
- Daiyuonte Reed, 31, of Oak Bluffs, Mass., awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah police officers found a pistol in Reed’s possession while investigating a disturbance at a Savannah restaurant in July 2021.
Agencies investigating these cases include the ATF, the FBI, the Georgia Bureau of Investigation, the Savannah Police Department, the Metter Police Department, and the Dublin Police Department.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atfw-form-4473
Multi-Convicted Felon Federally Indicted for Illegal Possession of A Firearm and AmmunitionRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Jerome Swopshire (40, Silver Springs) with possessing a firearm and ammunition as a convicted felon. If convicted, Swopshire faces a maximum penalty of 15 years in federal prison.
According to the indictment, on August 9, 2023, Swopshire possessed a Taurus firearm and Sig ammunition. At the time, Swopshire had previous state felony convictions for robbery, child abuse, resisting an officer with violence, felony domestic battery, and possession of a controlled substance without a prescription. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Ocala Police Department, the United States Marshals Service, and Homeland Security Investigations. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
This case is part of the 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 for occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
More than $4.4 million in federal grants focused on reentry services coming to Washington StateRead the Press Release
Seattle – More than $4.4 million in Department of Justice funds will flow to Washington State entities to provide reentry services to those involved with the criminal justice system, announced Acting U.S. Attorney Tessa M. Gorman. The largest share of the grants – some $1.8 million – goes to the Washington State Department of Corrections for programs aimed at helping incarcerated persons be successful once released from custody.
“The vast majority of justice involved persons will be returning to our communities. It is critical that we invest in ways to improve reentry so that those former inmates can lead safe and productive lives,” said Acting U.S. Attorney Gorman. “These grants are aimed at mental health issues, substance abuse problems and family unification programs that can make a difference for individuals and for the community as a whole.”
The Department of Corrections (DOC) was awarded $550,000 to provide mental health and substance abuse treatment for 200 women at the Correction Center at Purdy. In its application, DOC says a shortage of health providers and constraints at the institution have limited the services it can provide. This additional funding will also be used to hire a psychologist and a reentry navigator to help those leaving custody to find services in the community.
The Department of Corrections was awarded $764,508 to evaluate, refine and expand services DOC provides to try to keep families together and break the cycle of intergenerational incarceration. The funding will provide access to mental health programs, substance abuse programs, and parenting skills programs. The University of Washington will help evaluate what programs are working.
Finally, DOC was awarded $534,828 to train staff in mental health disorders, and how to appropriately de-escalate and defuse mental health crises. The training will address mental health as well as co-occurring substance abuse disorder and intervention strategies. The training is for staff both at the institutions and those working in community supervision.
The non-profit organization House of Mercy of Federal Way was awarded $750,000to provide reentry services to some 864 formerly incarcerated persons. The case management and training and reentry support will serve men returning to King, Pierce, Whatcom, Clark, Yakima, and Spokane counties. Former inmates who are involved in House of Mercy services have a re-offense rate below 5%.
Skagit County was awarded $677,356 for its Community Court. The program is an alternative problem-solving court that serves low-level non-violent offenders. The program connects the offenders with mental health and substance abuse services. Areas served include Anacortes, Burlington, Sedro Woolley, Mount Vernon, Hamilton, Lyman, Concrete, Marblemount, and Diablo.
The Suquamish Indian Tribe was awarded $784,943 for a new “Begin Again” program for those reentering the community from incarceration or court-ordered inpatient substance abuse treatment. The funding will ensure that tribal services are coordinated and culturally appropriate for those reentering the community.
And finally, Government Impact Consulting LLC of Marysville, Washington, was awarded $350,000 to work on barriers to Treatment Courts and work to enhance support for culturally appropriate treatment and recovery. The consulting group will work with community partners including Tribal Wellness to Healing courts to reduce the stigma around substance abuse treatment.
The U.S. Attorney’s Office, Western District of Washington has active programs to assist with reentry to the community for those involved with the criminal justice system. For more on those programs visit: https://www.justice.gov/usao-wdwa/reentry-program
Assistant United States Attorneys Zach Dillon and Michelle Lambert lead the reentry program in the Western District of Washington.
Mississippi Return Preparers Found Guilty of Tax FraudRead the Press Release
A federal jury in Jackson, Mississippi, convicted Adam Earnest, Christopher Randell and James Klish yesterday of conspiracy to defraud the United States. Earnest and Randell were separately convicted of individual counts of preparing false tax returns.
According to court documents and evidence presented at trial, Earnest, Randell and Klish worked at Sunbelt Tax Services, a return preparation business with a primary office located in Jackson,. Earnest, Randell and Klish conspired together and with others at Sunbelt Tax Services to fraudulently claim inflated tax refunds for clients by reporting false education credits, itemized deductions and business profits or losses. Earnest and Klish also created at least four tax returns for some of their clients claiming false items.
A sentencing hearing is scheduled for Feb. 22, 2024. Each defendant faces a maximum penalty of five years in prison for conspiracy to defraud the United States, and Earnest and Randell face a maximum penalty of three years in prison for each false return count on which they were found guilty. They also each face a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department's Tax Division made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Patrick Elwell, Zachary Cobb and Mary Frances Richardson of the Tax Division are prosecuting the case.
Man Admits Two St. Louis County Carjackings, Robbery and Shooting of Store ClerkRead the Press Release
ST. LOUIS – Two men have pleaded guilty to crimes that include two St. Louis County carjackings, the robbery of a convenience store and the shooting of the store clerk.
James Furlow, 20, of St. Ann, Missouri, pleaded guilty Wednesday in U.S. District Court in St. Louis to two counts of carjacking and one count each of possession and brandishing of a firearm in furtherance of a crime of violence, robbery and discharge of a firearm in furtherance of a crime of violence.
Monya Jones, 23, of St. Louis County, pleaded guilty July 19 to one robbery charge and one charge of possession, brandishing and discharge of a firearm in furtherance of a crime of violence.
Both men admitted in their plea agreements that Furlow carjacked a 2017 Kia Sorrento SUV at gunpoint on Dec. 26, 2021. Later that day, Furlow tried to break into an ATM by shooting it as Jones waited in the stolen Kia. Both Furlow and Jones then robbed a Quick Mart in St. Louis County. Furlow admitted shooting the store clerk in the mouth.
On Dec. 30, 2021, Furlow carjacked a 2021 Volkswagen Tiguan at gunpoint. He was later spotted by police and fled, first in the stolen SUV and later on foot. Police caught him in a basement and found a pouch nearby with a 9mm pistol, Furlow’s identification and the Tiguan’s keys.
A dating app was used to set up both carjackings.
Jones is scheduled to be sentenced November 27 and Furlow is scheduled to be sentenced Feb. 7, 2024. The possession of a firearm in furtherance of a crime of violence charge carries a mandatory minimum prison term of seven years, consecutive to any other charge, and the discharge count carries a mandatory minimum term of 10 years, also consecutive to all other counts.
The St. Louis County Police Department and the FBI investigated the case. Assistant U.S. Attorney Cassandra Wiemken is prosecuting the case.
Kersey Man Sentenced to Prison for Distribution of MethamphetamineRead the Press Release
PITTSBURGH, PA – A resident of Kersey, Pennsylvania, has been sentenced in federal court to 28 months of imprisonment followed by four years of supervised release on his conviction for violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Melvin Shelander, age 33.
According to information presented to the court, Shelander was a methamphetamine distributor who obtained over a pound of methamphetamine from Derek Hillebrand, which Shelander then redistributed.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department for the investigation leading to the successful prosecution of Shelander. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Justice Department and the Federal Trade Commission Meet with G7 Enforcement Partners in Tokyo to Discuss the Challenges of Ensuring Competition in Digital MarketsRead the Press Release
The Justice Department’s Antitrust Division and the Federal Trade Commission participated in the G7 Competition Authorities and Policymakers’ Summit today to discuss the ways in which enforcers and policymakers are addressing competition concerns in digital markets.
The Summit was convened by the G7 Digital and Tech Ministers and hosted in Tokyo by Japan’s Secretariat of Headquarters for Digital Market Competition and the Japan Fair Trade Commission. The Antitrust Division was represented by Chief of Staff Joshua Tzuker, assisted by International Counsel Mark Niefer.
“We thank Japan for organizing such a productive and important event,” said Chief of Staff Tzuker. “International cooperation is necessary if we are to protect consumers and workers from emerging risks to competition in digital markets around the world. The Summit was a significant step toward enhancing our collective efforts to protect digital market competition today and in the future.”
In preparation for the Summit, G7 members contributed to the Compendium of Approaches to Improving Competition in Digital Markets, which describes member efforts in digital markets. Japan also published the G7 Inventory of New Rules for Digital Markets and an accompanying Analytical Note which describe new or contemplated laws and regulations intended to address competition in digital markets.
At the conclusion of the Summit, G7 competition authorities and policymakers issued a Digital Competition Communique, which describes a shared commitment to enforce competition laws and develop policies necessary to ensure that principles of fair competition are applied to digital markets. The Communique highlights competition concerns arising from emerging technologies, and it describes the ways in which G7 competition authorities and policymakers are enhancing their ability to better understand and anticipate the challenges to competition arising from new technologies such as generative AI. The Communique emphasizes that current competition law applies to AI and its uses, and that the G7 is committed to addressing any risks to competition associated with the rise of AI.
Justice Department and City of Portland, Oregon, Seek Independent Monitor and Partial Termination of Consent Decree Covering the Portland Police Bureau after Substantial Progress in Policing ReformRead the Press Release
The Justice Department and the city of Portland, Oregon, filed a joint motion seeking court approval to terminate certain portions of the consent decree covering the Portland Police Bureau (PPB).
The joint motion is based on one year of collaborative discussions between the department, the City, and key community stakeholders with a U.S. Magistrate Judge. Specifically, the joint motion requests:
- Terminating certain provisions based on the city and PPB’s sustained substantial compliance for at least three years. These provisions cover electronic control weapons (ECWs); Behavioral Health Unit; Training Advisory Committee; Enhanced Crisis Intervention Team; Behavioral Health Response Team; Service Coordination Team; Bureau of Emergency Communications; and Citizen Review Committee;
- Transferring to the city and PPB the responsibility for assessing and reporting their compliance with provisions covering community-based mental health services, a behavioral health advisory committee, portions of community oversight, and PPB’s stops data and annual reports;
- Appointing an independent monitor to assess the city’s compliance with the remaining provisions covering uses of force, training, PPB’s employee information system, and accountability.
“Ensuing effective and constitutional policing is one of the Justice Department’s highest priorities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Under this consent decree, the Portland Police Bureau has made substantial progress toward meaningful policing reform for the entire Portland community. The action we are taking now is a true testament to the collaborative efforts of the police, city officials and community which have helped transform aspects of policing over the last eight years. The Justice Department will continue to support the community, the city and the police as they forge ahead toward achieving full compliance with the consent decree.”
“The Portland Police Bureau is committed to providing just and equitable policing for all Portlanders. We have seen this commitment repeatedly, firsthand, throughout the life of this settlement agreement,” said U.S. Attorney Natalie Wight for the District of Oregon. “The city has remained intently focused on improving its public safety services amid an incredibly challenging period marked by increasing violence, a global pandemic, and a historic addiction crisis. Despite these challenges, the police bureau has persevered and continued to achieve its objectives. We are proud to join the city today in marking this important milestone.”
PPB has made meaningful change in reaching compliance with numerous provisions of the consent decree, including:
- PPB’s use of force against those with mental illness is now extremely low, occurring in about 0.5% of encounters (one in 209) and most of that is the lowest level of force, which does not cause injury;
- PPB has significantly reduced the use of ECWs and when officers do use ECWs, the use is in line with policy and national standards;
- PPB’s Behavioral Health Unit provides coordination and oversight of PPB’s various units that intersect with people in crisis, including the Enhanced Crisis Intervention Team, the Behavioral Health Response Teams and the Service Coordination Team, and interfaces with community partners across the region. A Portland State University study found that every dollar the City spends on the Service Coordination Team “has a corresponding $20.61 in avoided cost for the community;”
- The city’s Bureau of Emergency Communications has adopted policies and training to dispatch an appropriate first responder to calls for service that have a nexus to a person in mental health crisis; and
- PPB’s Training Advisory Committee has held open public meetings to provide valuable citizen input to PPB’s Training Division.
If the court grants the joint motion, the parties will issue a public request for proposal seeking candidates for the Monitor role. Finalists will participate in a public town hall to answer community questions before the parties select a Monitor for the court to appoint. Once chosen, the Monitor will publicly report to the court every six months on the City’s progress and prepare outcome assessments measuring PPB’s performance implementing reforms.
The District Court for the District of Oregon entered the settlement agreement in July 2015. The agreement and information about the Civil Rights Division are available on the division’s website at Special Litigation Section Cases and Matters.
Justice Department Announces Investigation of the City of Lexington, Mississippi, and the Lexington Police DepartmentRead the Press Release
The Justice Department announced today that it has opened a civil pattern or practice investigation into the City of Lexington, Mississippi, and the Lexington Police Department (LPD). Lexington is a town of approximately 1,600 people, located about an hour outside of the state’s capitol in Jackson, Mississippi.
The investigation will seek to determine whether there are systemic violations of the Constitution and federal law. The investigation will focus on the police department’s use of force and its stops, searches and arrests. It will assess whether those activities are reasonable, non-discriminatory and respect the right to engage in speech and conduct protected by the First Amendment. The investigation will include a comprehensive review of LPD policies, training and supervision, practices for the collection of fines and fees and systems of accountability.
“No city, no town and no law enforcement agency is too large or too small to evade our enforcement of the constitutional rights every American enjoys,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are opening this investigation to determine whether the Lexington Police Department engages in a pattern or practice of discriminatory policing, excessive force or First Amendment violations. This investigation should send a clear message to small and mid-size police departments that they are not exempt from the obligation to provide fair, effective and non-discriminatory policing. We will leave no community behind, including underserved regions in the Deep South, in our quest to ensure lawful and constitutional policing in America.”
“Police officers are trusted with the important duty to keep our communities safe. When police officers fail to respect constitutional rights, they violate that trust,” said U.S. Attorney Todd W. Gee for the Southern District of Mississippi. “Our office is committed to ensuring that everyone in Mississippi is treated fairly and lawfully by the police. Today’s announcement reflects that commitment. We will conduct a thorough and impartial investigation of LPD, and we will take decisive action to address any unlawful conduct.”
Before this announcement, officials from the Justice Department notified Lexington officials, who have pledged to cooperate with the investigation. As part of this investigation, the Justice Department will conduct outreach to community groups and members of the public to learn about their experiences with LPD.
The Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S Attorney’s Office for the Southern District of Mississippi will jointly conduct this investigation pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives people of rights protected by the Constitution or federal law. If the Justice Department has reasonable cause to believe that the law enforcement officers of a state or local government have engaged in a prohibited pattern or practice, the department is authorized to bring a lawsuit seeking court-ordered changes to remedy the violations. In this investigation, the department will assess the law enforcement practices under the First, Fourth and 14th Amendments to the U.S. Constitution, Title VI of the Civil Rights Act of 1964 and the non-discrimination provisions of the Safe Streets Act.
Individuals with relevant information are encouraged to contact the Justice Department via email at [email protected] or by phone at (833) 610-1232. Individuals can also report civil rights violations regarding this or other matters using the reporting portal of the Justice Department’s Civil Rights Division, available at www.civilrights.justice.gov. Individuals can also report civil rights violations to the U.S. Attorney’s Office at [email protected] or (601) 973-2825.
Today’s announcement marks the 11th pattern or practice investigation into law enforcement misconduct opened by the Justice Department during this Administration. The department has ongoing investigations into the Phoenix Police Department; the Mount Vernon (NY) Police Department; the Louisiana State Police; the New York City Police Department’s Special Victims Division; the Worcester (MA) Police Department; the Oklahoma City Police Department; the Memphis (TN) Police Department; and the Trenton (NJ) Police Department. The department recently completed investigations in Louisville, Kentucky, and Minneapolis, and secured agreements in principle with both jurisdictions to negotiate consent decrees to address the violations found.
Additional information about the Justice Department’s Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the Southern District of Mississippi is available at www.justice.gov/usao-sdms. Information specific to the Civil Rights Division’s Police Reform Work can be found here: www.justice.gov/crt/file/922421/download.
The Justice Department will hold a public community meeting on Nov. 8 at 5:00 p.m. CT at St. Paul COGIC Fellowship Hall, located at 17214 Highway 17 South, Lexington, Mississippi. Members of the public are encouraged to attend to learn more about the investigation.
Justice Department Announces Investigation of the City of Lexington, Mississippi, and the Lexington Police DepartmentRead the Press Release
The Justice Department announced today that it has opened a civil pattern or practice investigation into the City of Lexington, Mississippi, and the Lexington Police Department (LPD). Lexington is a town of approximately 1,600 people, located about an hour outside of the state’s capitol in Jackson, Mississippi.
The investigation will seek to determine whether there are systemic violations of the Constitution and federal law. The investigation will focus on the police department’s use of force and its stops, searches and arrests. It will assess whether those activities are reasonable, non-discriminatory and respect the right to engage in speech and conduct protected by the First Amendment. The investigation will include a comprehensive review of LPD policies, training and supervision, practices for the collection of fines and fees and systems of accountability.
“No city, no town and no law enforcement agency is too large or too small to evade our enforcement of the constitutional rights every American enjoys,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are opening this investigation to determine whether the Lexington Police Department engages in a pattern or practice of discriminatory policing, excessive force or First Amendment violations. This investigation should send a clear message to small and mid-size police departments that they are not exempt from the obligation to provide fair, effective and non-discriminatory policing. We will leave no community behind, including underserved regions in the Deep South, in our quest to ensure lawful and constitutional policing in America.”
“Police officers are trusted with the important duty to keep our communities safe. When police officers fail to respect constitutional rights, they violate that trust,” said U.S. Attorney Todd W. Gee for the Southern District of Mississippi. “Our office is committed to ensuring that everyone in Mississippi is treated fairly and lawfully by the police. Today’s announcement reflects that commitment. We will conduct a thorough and impartial investigation of LPD, and we will take decisive action to address any unlawful conduct.”
Before this announcement, officials from the Justice Department notified Lexington officials, who have pledged to cooperate with the investigation. As part of this investigation, the Justice Department will conduct outreach to community groups and members of the public to learn about their experiences with LPD.
The Special Litigation Section of the Justice Department’s Civil Rights Division and the U.S Attorney’s Office for the Southern District of Mississippi will jointly conduct this investigation pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives people of rights protected by the Constitution or federal law. If the Justice Department has reasonable cause to believe that the law enforcement officers of a state or local government have engaged in a prohibited pattern or practice, the department is authorized to bring a lawsuit seeking court-ordered changes to remedy the violations. In this investigation, the department will assess the law enforcement practices under the First, Fourth and 14th Amendments to the U.S. Constitution, Title VI of the Civil Rights Act of 1964 and the non-discrimination provisions of the Safe Streets Act.
Individuals with relevant information are encouraged to contact the Justice Department via email at [email protected] or by phone at (833) 610-1232. Individuals can also report civil rights violations regarding this or other matters using the reporting portal of the Justice Department’s Civil Rights Division, available at www.civilrights.justice.gov. Individuals can also report civil rights violations to the U.S. Attorney’s Office at [email protected] or (601) 973-2825.
Today’s announcement marks the 11th pattern or practice investigation into law enforcement misconduct opened by the Justice Department during this Administration. The department has ongoing investigations into the Phoenix Police Department; the Mount Vernon (NY) Police Department; the Louisiana State Police; the New York City Police Department’s Special Victims Division; the Worcester (MA) Police Department; the Oklahoma City Police Department; the Memphis (TN) Police Department; and the Trenton (NJ) Police Department. The department recently completed investigations in Louisville, Kentucky, and Minneapolis, and secured agreements in principle with both jurisdictions to negotiate consent decrees to address the violations found.
Additional information about the Justice Department’s Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the Southern District of Mississippi is available at www.justice.gov/usao-sdms. Information specific to the Civil Rights Division’s Police Reform Work can be found here: www.justice.gov/crt/file/922421/download.
The Justice Department will hold a public community meeting on Nov. 8 at 5:00 p.m. CT at St. Paul COGIC Fellowship Hall, located at 17214 Highway 17 South, Lexington, Mississippi. Members of the public are encouraged to attend to learn more about the investigation.
Jury convicts McAllen man for gunpoint extortion of migrantsRead the Press Release
McALLEN, Texas – A federal jury has convicted a 25-year-old man on multiple counts for hostage taking, smuggling and weapons charges, announced U.S. Attorney Alamdar S. Hamdani.
The jury deliberated for less than an hour before returning the guilty verdict on all counts against Heriberto Mendez-Lozano following a three-day trial.
During the trial, the jury heard evidence that on Sept. 29, 2022, Mendez-Lozano and others were engaged in smuggling migrants from near the Rio Grande River further into the United States.
On that date, the group was harboring five undocumented aliens. Instead of transporting the aliens further into the United States, Mendez-Lozano and his co-conspirators held the aliens against their will at a location in Donna.
There, Mendez-Lozano and others brandished firearms, held guns to the heads and ribs of hostages, threatened the hostages and forced them to call family members to demand money for their release.
The investigation led law enforcement to the location in Donna where they arrested Mendez-Lozano who had a pending warrant for aggravated robbery, and a co-conspirator Lorenzo Campbell. Authorities also rescued the hostages from the scene.
U.S. District Judge Micaela Alvarez presided over the trial and set sentencing for Jan. 17, 2024. At that time, he faces life in a federal prison. Mendez-Lozano has been and will remain in custody pending that hearing.
Homeland Security Investigations (HSI) conducted the investigation with the assistance of Border Patrol (BP), U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Hidalgo County Sherriff’s Office.
Assistant U.S. Attorneys Colton Turner and Theodore Parran prosecuted the case as part of the Human Smuggling Prevention Program (HSPP). The primary goal of HSPP is to disrupt and dismantle human smuggling organizations on our Southwest Border through close cooperation with HSI, BP, Customs and Border Protection – Office of Field Operations and local law enforcement partners.
Jury Convicts Pinellas Man of Trafficking FentanylRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that a federal jury has found Corey Gaddy (31, St. Petersburg) guilty of conspiracy to distribute controlled substances including fentanyl and two counts of distribution of fentanyl. Gaddy faces a maximum sentence of 60 years’ imprisonment. His sentencing hearing is scheduled for February 1, 2024. Gaddy was arrested on September 9, 2020, and has remained in custody.
According to court records, testimony and evidence presented at trial, Gaddy was a supplier of opioids in Pinellas County since 2017. One of his dealers, Shawn Rodriguez, was at various times during the conspiracy a distributor of opioids in the Madeira Beach area. In February 2019, the Largo Police Department conducted a traffic stop of Gaddy where heroin was concealed on his person. On November 6, 2019, while on bond for that offense, Gaddy distributed fentanyl to Rodriguez who then supplied the same to K.E. In the early morning hours of November 7, 2019, K.E. died of fentanyl toxicity. Gaddy learned that K.E. had died but continued distributing opioids anyway. In April 2020, while still on bond for his pending state case, Gaddy distributed opioids to J.P. and another individual. Two days later, J.P. was found dead on a fishing boat.
Rodriguez previously pleaded guilty to his role in the case. His sentencing hearing is scheduled for February 7, 2024.
This case was investigated by Drug Enforcement Administration, the Pinellas County Sheriff’s Office, and the Largo Police Department, with assistance from the Federal Bureau of Investigation as part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. The case is being prosecuted by Assistant United States Attorneys Dan Baeza and Lauren Stoia.
Jury Convicts Hospice Owner for Defrauding MedicareRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on November 6, 2023, a federal jury convicted SHIVA AKULA, age 67, of New Orleans, of health care fraud related to fraudulent claims billed to Medicare. AKULA owned and oversaw the day-to-day operations of Canon Healthcare, LLC, a hospice facility with offices in the New Orleans area, Baton Rouge, Covington, and Gulfport, Mississippi. Between January 2013 and December 2019, Canon’s New Orleans area office billed Medicare approximately $62 million and was paid approximately $47 million.
The jury convicted AKULA on all 23 counts of health care fraud charged in the indictment. Counts 1 through 8 involved AKULA’s overbilling for hospice patients for General Inpatient (“GIP”) services to fraudulently maximize reimbursement from Medicare. By improperly billing for GIP, AKULA fraudulently caused Medicare to pay approximately $600 more per patient, per day, than it would have for the appropriate level of care, for multiple months per patient. Moreover, many of the patients whose claims were fraudulently billed to Medicare were not hospice eligible, meaning any Medicare hospice payments for these patients were improper. Between January 2013 and August 2017, AKULA billed over 2,800 monthly claims for GIP billing, totaling approximately $15.3 million.
Additionally, the jury convicted AKULA for multiple counts related to manipulating Medicare billing codes, known as Common Procedural Terminology (“CPT”) codes. Counts 9 through 11 involved AKULA’s fraudulent billing for physician services under CPT code 99236. AKULA fraudulently billed Medicare for these services, despite such services being medically unnecessary, and despite their inclusion in the daily hospice benefit Canon already received for its patients. Between January 2013 and August 2017, AKULA submitted approximately 1,053 claims for CPT code 99236 and was paid approximately $223,601 by Medicare.
Counts 12 through 17 involved AKULA’s fraudulent billing of History and Physical forms under CPT code 99233. AKULA fraudulently billed Medicare for these forms, despite their being hand-copied by a member of AKULA’s family based on work performed by referring physicians not employed by Canon, and despite their being unbillable in the hospice setting. Between January 2013 and August 2017, AKULA submitted approximately 23,000 claims to Medicare for CPT code 99233 and was paid approximately $2,281,251.
Finally, Counts 18 through 23 involved AKULA’s fraudulent billing for home visits under CPT code 99350. AKULA fraudulently billed Medicare for visits under a physician’s name, even though they were performed by a nurse practitioner, the patients were not hospice eligible, and the services were included in the daily hospice benefit Canon already received for its patients. Between January 2013 and August 2017, AKULA submitted claims to Medicare for approximately 1,949 home visits using CPT code 99350 and was paid approximately $316,384.
U.S. District Judge Lance M. Africk presided over the five-day trial during which the government called fifteen witnesses and presented approximately 290 exhibits.
As to each of the 23 counts of health care fraud, AKULA may receive a maximum sentence of ten years in prison, a maximum fine of up to $250,000, up to three years of supervised release, and a $100 mandatory special assessment fee. Judge Africk scheduled sentencing in this case for February 21, 2024, at 2:00 p.m.
“Health care fraud schemes such as these profoundly impact our nation, not only because of the monetary loss triggered by the fraud, but also by the damaging erosion of public trust”, said U.S. Attorney Duane A. Evans. “Our office, along with our investigative partners, will continue to work diligently to preserve taxpayer confidence in our medical institutions and seek justice for all victims of fraud.”
“Mr. Akula took advantage of the American taxpayer by billing for services that weren’t medically necessary, and in some cases, didn’t happen at all,” said Douglas A. Williams, Jr., Special Agent in Charge for FBI New Orleans. “The FBI will continue its work to uncover fraudulent schemes like this that take advantage of people when they are most vulnerable.”
“A federal jury correctly found Shiva Akula, MD guilty on all 23 counts of health care fraud,” said Jason E. Meadows, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Medical providers who are motivated by greed place our most vulnerable citizens at risk, and HHS-OIG remains committed to working with our law enforcement partners to identify and investigate greedy providers who defraud our federal health care programs.”
This case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, and the Louisiana Department of Justice, Medicaid Fraud Control Unit. Assistant U.S. Attorneys Kathryn McHugh and J. Ryan McLaren, an attorney in the Appellate Unit, are in charge of the prosecution.
Jamestown man indicted by federal grand jury on multiple drug and firearms chargesRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned a five-count indictment charging Zaid Mendoza a/k/a Diamond, 45, of Jamestown, NY, with possession with intent to distribute fentanyl and methamphetamine, possession of a firearm in furtherance of drug trafficking crimes and being a felon in possession of a firearm. The charges carry a mandatory minimum penalty of five years in prison, a maximum of life and a $1,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that according to the indictment and a previously filed complaint, in October and December 2022, Mendoza possessed fentanyl and methamphetamine with the intent to distribute it in the Jamestown area. On December 7, 2022, investigators executed a search warrant at Mendoza’s residence and recovered $1,800 cash, approximately 36 grams of fentanyl and a quantity of methamphetamine, a 9mm semi-automatic pistol, drug packaging paraphernalia, and cell phones. Mendoza, who was taken into custody at the scene, had another 36 grams of fentanyl on his person. In October 2014, Mendoza was convicted of a felony in Chautauqua County Court and is legally prohibited from possessing a firearm.
Mendoza was arraigned before U.S. Magistrate Judge Michael J. Roemer and is detained.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The indictment is the result of an investigation by the Jamestown Police Department Metro Drug Task Force, under the direction of Chief Timothy Jackson, the Chautauqua County Sheriff’s Office County Drug Task Force, under the direction of Sheriff James Quattrone, the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Interpol Washington’s Project Terminus Launches Initiative to Enhance Border Security in ColombiaRead the Press Release
WASHINGTON – Last week, INTERPOL Washington successfully launched a new phase of assistance to the Colombian government that will enhance its border security capabilities, improving its ability to detect and interdict transnational criminals and terrorists entering Colombia. Through Project TERMINUS, a technical team from INTERPOL Washington’s Border Security Division (BSD) worked on the ground in Bogotá to provide, install, and ensure effective operation of equipment that connects Colombian law enforcement authorities to INTERPOL databases.
“Project TERMINUS is bringing critical new law enforcement tools to our indispensable partners in Colombia,” said INTERPOL Washington BSD Deputy Assistant Director Keith Hood. “Close collaboration between nations is the only way to stop transnational crime and terrorism. By strengthening Colombia’s interconnection with INTERPOL, the world’s largest police organization, TERMINUS is making the world a safer place and protecting our communities.”
During the visit, the INTERPOL Washington technical team worked closely with National Central Bureau Bogotá and met with Colombian National Police representatives from each region of the country. They discussed the current threat landscape, challenges with irregular migration, and the security benefits of Project TERMINUS.
Project TERMINUS is a partnership established in 2016 between INTERPOL Washington’s BSD and the State Department's Bureau of Counterterrorism. It helps deliver solid, actionable criminal intelligence in a secure manner around the world by extending INTERPOL’s I-24/7 secure global police communications system in high-risk areas and select host nations globally. Through Project TERMINUS, expert technical assistance is made available to countries seeking to integrate access via the TERMINUS Tool Kit of Solutions, enhancing their ability to screen against the illicit international travel of transnational criminals and terrorists. Partner nations receiving assistance from Project TERMINUS include Indonesia, Malaysia, Nigeria, Kyrgyzstan, Panama, The Republic of Georgia, and The Maldives.
A component of the U.S. Department of Justice, co-managed by the U.S. Department of Homeland Security, INTERPOL Washington—the U.S. National Central Bureau (USNCB)—is the designated U.S. representative to INTERPOL. It serves as the national point of contact and coordination for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, tribal, and territorial law enforcement agencies.
Hyde Resident Sentenced to Prison on Distribution of Methamphetamine ChargesRead the Press Release
PITTSBURGH, PA – A resident of Hyde, Pennsylvania, has been sentenced in federal court to 23 months of imprisonment followed by two years of supervised release on his conviction for violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Jeffrey Peters, age 68.
According to information presented to the court, Peters was a methamphetamine distributor who obtained over two pounds of methamphetamine from Derek Hillebrand, which Peters then redistributed. Additionally, 46 grams of methamphetamine was seized from Peters’ vehicle during a traffic stop on April 6, 2021.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department for the investigation leading to the successful prosecution of Peters. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Huber Heights man sentenced to 50 years in prison for child exploitation crimes involving more than 175 victimsRead the Press Release
DAYTON, Ohio – A Huber Heights, Ohio, man was sentenced in U.S. District Court today to 600 months in prison for crimes related to creating hundreds of images and videos of child pornography by victimizing children as young as 6 years old over a 15-year period.
Ty Brandon Roberts, 38, pleaded guilty in February 2023 to producing child pornography and coercing minors.
“From California to New York, Texas to Illinois, Washington to Florida, the United Kingdom to Australia, no minors anywhere were safe from Roberts so long as Roberts had access to the Internet. It stops now in the Southern District of Ohio,” said U.S. Attorney Kenneth L. Parker. “Roberts was opportunistic; his victims ranged in age from 6 to 17 years old. They were white, Black, Hispanic and Native American. They were male and female. In all, FBI agents fully identified 57 minors whom Roberts coerced into producing 502 distinct images and videos of child pornography.”
Roberts’ child pornography includes 120 more victims depicted in an additional 216 distinct files who remain unidentified to this day.
According to court documents, beginning in 2007, Roberts exploited young victims online and sexually abused victims in person. Roberts used two schemes to coerce minors into creating child pornography. One scheme was bribing young minors with video game gift cards to online games such as “Fortnite” in exchange for sexually explicit images and videos. The second scheme Roberts used was pretending to be a teenaged girl online to entice and coerce minors to send him sexually explicit images and videos of themselves. He also committed hands-on sexual offenses to at least three minor victims.
For example, between 2007 and 2008, Roberts sexually abused an 11-to-12-year-old boy and took photos of the abuse on a Polaroid camera. Roberts eventually created digital images of the Polaroids and kept the original Polaroids in his home until law enforcement seized them in 2022.
Roberts possessed more than 11,000 child pornography images in total.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Huber Heights Police Chief Mark Lightner announced the sentence imposed today by Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorneys Kelly K. Rossi and Dwight Keller are representing the United States in this case.
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Hastings Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Susan Lehr announced that Armando Ibarra, 50, of Hastings, Nebraska, was sentenced November 6, 2023, in federal court in Lincoln, Nebraska for conspiracy to distribute methamphetamine. United States District Court Judge John M. Gerrard sentenced Ibarra to 156 months’ imprisonment. There is no parole in the federal system. After Ibarra’s release from prison, he will begin a five-year term of supervised release.
Between August of 2019 and May of 2021, Ibarra reached an agreement with others to distribute meth in Hastings, Nebraska. Ibarra sold meth to confidential informants and police found meth at his residence and in his car during several traffic stops.
This case was investigated by the Adams County Sheriff’s Office, the Hastings Police Department, and the Trident Drug Task Force, which is made up of officers from the Grand Island Police Department, Hall County Sheriff, Hastings Police Department, Adams County Sheriff, Kearney Police Department, Buffalo County Sheriff, Nebraska State Patrol, Homeland Security Investigations, and the Federal Bureau of Investigation.
Hamilton Man Sentenced to 84 Months in PrisonRead the Press Release
FORT WAYNE–David L. Westfall, 44 years old, of Angola and Hamilton, Indiana, was sentenced by United States District Court Chief Judge Holly A. Brady upon his plea of guilty to illegally possessing an unregistered sawed-off shotgun and for possession of a firearm by a felon, announced United States Attorney Clifford D. Johnson.
Westfall was sentenced to 84 months in prison followed by 2 years of supervised release.
According to documents in the case, on February 19, 2023, officers responded to a rural area east of New Haven, Indiana, regarding a suspicious occupied vehicle. When Officers arrived, they located Westfall who had active warrants for his arrest. They attempted to detain Westfall, but he retreated to his vehicle, indicating he had a firearm. Westfall then fired a shotgun, shattering the driver’s window of his truck. Officers called the Allen County SWAT team for assistance, and the officers eventually convinced Westfall to surrender after a standoff of at least 10 hours.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance of the Allen County Sheriff’s Department, the New Haven Police Department, the Woodburn Police Department, the Allen County Sheriff’s Department Special Weapons and Tactics Team, and the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller.
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.
Great Falls College student loan fraud scheme sends Cascade woman to prison for a year and a halfRead the Press Release
GREAT FALLS — A Cascade woman convicted of illegally receiving approximately $126,000 in federal student aid through a scheme in which she enrolled others in courses at Great Falls College, Montana State University, was sentenced today to 18 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Ricci Lea Castellanos, 35, pleaded guilty in March to conspiracy to commit wire fraud and to aggravated identity theft.
Chief U.S. District Judge Brian M. Morris presided. The court ordered $68,175 restitution.
The government alleged in court documents that between January 2016 and December 2019, Castellanos enrolled unwitting family members and others in online classes at Great Falls College, Montana State University. When doing so, Castellanos, and others, applied for and received federal student aid totaling approximately $126,219, none of which was allowed. In addition, Castellanos and others fraudulently submitted American Indian Tuition Waivers and used false tribal enrollment forms to receive student living expense refunds. Castellanos also forged the signature of a person, Jane Doe 1, to apply for enrollment with Great Falls College and received $2,378 in financial aid into her bank account, which she withdrew in cash. Jane Doe 1 had reported her identity stolen to the Great Falls Police Department.
Assistant U.S. Attorneys Ryan G. Weldon and Benjamin D. Hargrove prosecuted the case, which was investigated by the U.S. Department of Education, Office of Inspector General.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Two La Crosse Men Charged with Drug Crimes Involving Cocaine & Fentanyl
Louis A. Ray, 46, La Crosse, Wisconsin, is charged with three counts of distributing cocaine and he and Timothy A. Cannon, 35, also of La Crosse, are charged with four counts of distributing fentanyl. The indictment alleges that two of the counts of distributing fentanyl involved 40 grams or more. Cannon is also charged with one count of possessing fentanyl with intent to distribute. The indictment alleges that these offenses occurred between April 19 and July 6, 2023.
If convicted, Ray and Cannon face a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the two charges alleging the distribution of 40 grams or more of fentanyl. They face a maximum of 20 years on each of the other charges.
The charges against Ray and Cannon are the result of an investigation by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Anita Marie Boor is handling the prosecution.
Mexican National Charged with Illegally Reentering U.S.
Maurillo Mendoza-Vasques, also known as Mauricio Mendoza-Vasquez, 46, a citizen of Mexico found in Arcadia, Wisconsin, is charged with illegally reentering the United States after being removed. The indictment alleges he was found in the U.S. on July 25, 2023.
If convicted, Mendoza-Vasques faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by U.S. Immigration and Customs Enforcement. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Glencoe Man Pleads Guilty to Illegally Possessing a Firearm and Possessing Marijuana with Intent to DistributeRead the Press Release
OKLAHOMA CITY – Earlier this week, LESTER LEE BAYS, 69, of Glencoe, Oklahoma, pleaded guilty to illegally possessing a firearm after a previous felony conviction and possession of marijuana with intent to distribute, announced U.S. Attorney Robert J. Troester.
On September 5, 2023, a federal grand jury returned a three-count Indictment against Bays, charging him with being a felon in possession of a firearm, possession of marijuana with intent to distribute, and possession of a firearm in furtherance of a drug-trafficking crime. According to court documents, on or about March 25, 2023, Bays was found to be in possession of marijuana and a firearm, despite a previous felony conviction. On September 21, 2023, Bay was ordered to be detained in federal custody.
On November 6, 2023, Bays pleaded guilty to Counts 1 and 2 of the Indictment. As part of his plea, Bays admitted to being a felon in possession of a firearm on March 25, 2023. He also admitted to being in possession of marijuana which he intended to distribute. At sentencing, Bays faces up to 15 years in federal prison on Count 1 and up to five years in federal prison on Count 2.
Public records reflect that Bays holds multiple prior felony convictions, including assault and battery with a deadly or dangerous weapon in Payne County District Court case number CF-1986-60, and possession of a firearm after a former conviction of a felony in Payne County District Court case number CF-2018-161.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Payne County Sheriff’s Office. Assistant U.S. Attorney Mary E. Walters is prosecuting the case.
This case is part of “Operation 922” and operation “Shots Fired,” the Western District of Oklahoma’s implementation of Project Safe Neighborhoods, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. “Operation 922” prioritizes prosecution of federal firearms violations connected to domestic violence. “Shots Fired” targets cases involving individuals who discharge firearms as part of their criminal activity, such as drive-by shootings or when shots are fired during robberies, domestic disputes, or other incidents. For more information about Project Safe Neighborhoods, please visit https://justice.gov/psn and https://justice.gov/usao-wdok.
Reference is made to public filings for additional information.
Founder of Beverly Hills ‘Gentlemen Timepieces’ Consignment Store Charged with Conning Victims in Luxury Watch Ponzi-Type SchemeRead the Press Release
LOS ANGELES – A Los Angeles man who previously operated a business in Beverly Hills known as “Gentlemen Timepieces” appeared in court this afternoon after his arrest Tuesday by FBI agents on charges of defrauding customers of his luxury watch consignment business.
Anthony Farrer, 35, who until recently lived in downtown Los Angeles, was charged in a federal criminal complaint filed Monday with wire fraud, a felony that carries a statutory maximum sentence of 20 years in federal prison.
Farrer, who also was known as “The Timepiece Gentleman,” was arrested without incident at a storage facility in Venice and was held in federal custody overnight. He made his initial appearance this afternoon in United States District Court, and an arraignment was scheduled for December 14. A detention hearing is scheduled for Thursday.
According to an affidavit filed with the complaint that was unsealed today, Farrer founded the company in Texas in 2017 and opened a location in Beverly Hills in 2022. Farrer used this business to connect purchasers and sellers of high-end watches. He would typically collect a watch from an individual and have them sign a consignment agreement that stipulated he would collect a commission from the sale, typically 5%.
The complaint alleges that Farrer defrauded victims beginning in late 2022 until the summer of 2023, when he promised customers he would sell their luxury watches on consignment. Rather than remitting funds back to the customers less the commission, he kept the proceeds for himself. Farrer lived in a luxury rental property and was known to drive a Lamborghini and Ducati motorcycles. He traveled frequently to, and engaged in gambling in, Las Vegas, according to the complaint.
Farrer induced victims into wiring funds for the purchase of luxury watches and, instead of purchasing the agreed upon watch, he would send them a different watch, the complaint alleges. In one case, a victim received a Rolex watch from Farrer in lieu of money Farrer owed, but the Rolex belonged to another victim who had provided the watch to Farrer to sell on consignment and did not authorize Farrer to use the watch as payment for his debts to other victims.
The complaint further alleges that Farrer operated a scheme in a similar manner to a Ponzi scheme and would lull victims into a sense of security by engaging in smaller successful transactions prior to requesting or engaging in significantly larger transactions.
Multiple victims contacted law enforcement to report that they wired funds to Farrer for the purchase of a watch, or mailed him a watch to consign for sale, but were never paid for the watch or never received their watch back. To date, law enforcement estimates that victim losses currently total approximately $3 million. The investigation is ongoing and law enforcement is in the process of identifying additional victims.
Farrer apparently abandoned the Beverly Hills store in August 2023 and began posting about his various travel throughout the United States on social media. As recently as October 2023, Farrer continued to advertise watches for sale on his social media platforms, according to the complaint.
A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The FBI, IRS Criminal Investigation, and the Beverly Hills Police Department are investigating this matter.
Assistant United States Attorney Joshua O. Mausner of the Violent and Organized Crime Section is prosecuting this case.
Former U.S. Postal worker sentenced for mail crimeRead the Press Release
WICHITA, KAN. – A former U.S. Postal Service worker was sentenced to 24 months of probation for criminal conduct related to her employment.
According to court documents, Tammy L. Frink, 50, of Beardsley, Kansas, pleaded guilty to one count of opening of mail by a postal employee.
On September 21, 2022, Frink, while working at a post office in McDonald, Kansas, opened a sealed greeting card destined for an address in Missouri. Frink did not have authority or permission to open the piece of mail.
Frink was ordered to serve 60 hours of community service and to pay a total restitution of $1,686, with the U.S. Postal Service receiving $1,075 and $611 to five individuals who were victims in other instances of mail theft linked to Frink.
“This sentence represents our commitment to work with our law enforcement partners to maintain the integrity and trust in the U.S. Mail,” said Ryan Petry, Acting Special Agent in Charge, United States Postal Service Office of Inspector General, Central Area Field Office. “The majority of postal employees are hard-working public servants dedicated to moving mail to its proper destination. The USPS OIG, along with the U.S. Attorney’s Office, remains committed to safeguarding the U.S. Mail and ensuring the accountability and integrity of U.S. Postal Service employees.”
The U.S. Postal Service – Office of the Inspector General investigated the case.
Assistant U.S. Attorney Matt Treaster prosecuted the case.
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Former KC Bank Manager Pleads Guilty to Facilitating Covid Fraud Scheme, Unemployment Benefits Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – A former bank branch manager in Kansas City, Mo., has pleaded guilty in federal court to accepting Kansas City Chiefs playoffs tickets and a new Chevrolet Tahoe in exchange for facilitating a $12.4 million Covid fraud scheme by a Jefferson City, Mo., business owner, as well as a separate fraud scheme to receive unemployment benefits.
Anthony Omar Brockman, 48, who currently resides in Bennington, Nebraska, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., on Tuesday, Nov. 7, to one count of wire fraud, one count of receiving gifts for procuring loans, and one count of money laundering.
Brockman was the branch manager of the Truman Hospital location of US Bank in Kansas City, Mo., until the COVID-19 pandemic caused the bank branch to close. Brockman was reassigned to US Bank’s Paycheck Protection Program project from April 12 through July 19, 2020. Brockman was then returned to his role as on-site manager at the Truman Hospital bank branch until May 22, 2021.
On March 27, 2020, The CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments.
By pleading guilty, Brockman admitted that he assisted and facilitated fraudulent PPP loan applications for Tod Ray Keilholz, the owner of TRK Construction, LLC, TRK Valpo, LLC, TL Builders, LLC, and Project Design, LLC, in Jefferson City. Keilholz has been charged in a separate indictment for his role in a more than $27.1 million bank fraud scheme that included more than $12.4 million in PPP loans for his businesses.
According to that separate indictment, Keilholz received a total of $12,430,932 in PPP loans for his four businesses. In each of those loan applications, the indictment says, Keilholz failed to disclose his ownership in the other three businesses, and made materially false and fraudulent claims in the loan applications and supporting documentation. Keilholz allegedly inflated the income of those businesses and claimed payrolls for employees who did not exist or no longer worked for him.
Brockman admitted that he received gifts in exchange for assisting Keilholz in procuring those loans. On Nov. 4, 2020, Keilholz used PPP loan proceeds to pay for a 2021 Chevrolet Tahoe that he gave to Brockman. Brockman admitted that the gift was intended to influence and reward him in connection with Keilholz’s applications for PPP loans and for the forgiveness of PPP loans.
Brockman also admitted that he received tickets from Keilholz to the Jan. 24, 2021, AFC Championship Game between the Kansas City Chiefs and the Buffalo Bills. In pleading guilty to money laundering, Brockman admitted that he signed an affidavit gifting the 2021 Chevrolet Tahoe to Rich Girl, Rich Boy Prep, Inc., a charity of which his wife was the Chief Executive Officer. On May 25, 2021, Brockman transferred the title to the Tahoe to Rich Girl, Rich Boy Prep but continued to drive the Tahoe until he sold it in July 2022.
In pleading guilty to wire fraud, Brockman admitted that he fraudulently received $11,040 in unemployment benefits from March 27, 2020, to Nov. 4, 2021, while he was employed by US Bank. Brockman falsely claimed he was unemployed when he applied for unemployment benefits via the internet, then repeated that false claim in 11 subsequent weekly online applications submitted to the state.
Under the terms of his plea agreement, Brockman must pay the government a $84,582 money judgment, which represents the proceeds he obtained from the offenses.
Under federal statutes, Brockman is subject to a sentence of up to 70 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau-Office of Inspector General, the Small Business Administration-Office of Inspector General, the Treasury Inspector General for Tax Administration, the Federal Deposit Insurance Corporation (FDIC)-Office of Inspector General, the FBI, and IRS-Criminal Investigation.
Pandemic Response Accountability Committee Task Force
The Pandemic Response Accountability Committee Task Force was established to promote transparency and facilitate coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 20 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending, including spending via the Paycheck Protection Program (PPP), and Economic Injury Disaster Loan (EIDL) program. This case was also supported by the PRAC’s Pandemic Analytics Center of Excellence, which applies the latest advances in analytic and forensic technologies to help OIGs and law enforcement pursue data-driven pandemic relief fraud investigations.
Former Indiana University Foundation Employee Sentenced to One Year in Federal Prison for Embezzling More Than $326,000 in DonationsRead the Press Release
INDIANAPOLIS- Teresa Maners, 64, of Spencer, Indiana, has been sentenced to one year and a day in federal prison after pleading guilty to wire fraud.
According to court documents, Maners was employed with the Indiana University Foundation as a Depositor and Payroll Deduction Associate beginning in 1988. The Indiana University Foundation works to maximize financial support for Indiana University through private donations and on-campus fundraisers. Maners’ job duties included recording cash and checks received from donors and preparing them for deposit in the foundation’s bank account.
During her employment, Maners stole hundreds of thousands of dollars from the foundation by taking cash before recording it in the foundation’s accounting systems. To hide the stolen cash, Maners secretly withheld checks from the day’s deposits and substitute those checks in a subsequent day’s deposit to hide the missing cash. She also wrote checks to the foundation from her personal bank account to cover any difference between the substituted donor checks and the stolen cash. This type of fraud is sometimes referred to as a “lapping scheme.” As the only employee in charge of recording cash donations, Maners was able to alter the accounting paperwork to “balance” the books and keep the stolen cash donations for herself. Maners continued the fraud for nearly four years, and stole approximately $326,334 from the foundation. In 2019, the foundation conducted an external audit after discovering accounting irregularities, and confronted Maners who admitted to stealing the money.
“For years, this defendant abused her position of trust to line her own pockets and steal hundreds of thousands of dollars in charitable donations from a foundation dedicated to advancing important educational programs in our state,” said U.S. Attorney, Zachary A. Myers. “Our office and the FBI are dedicated to identifying criminals who steal from and defraud our charities, businesses, and government organizations and holding them accountable. The federal prison sentence imposed here demonstrates that financial crimes cause serious harms and merit serious punishment.”
“Charitable organizations like the Indiana University Foundation count on people in positions of trust to act in the interests of organization and its mission rather than taking advantage of their position for personal gain as the defendant did,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The FBI will continue to identify and investigate those who choose to commit fraud and enrich themselves at the expense of others.”
The FBI investigated this case. The sentence was imposed by U.S. District Court Judge Jane Magnus-Stinson. Judge Stinson ordered that Maners be supervised by the U.S. Probation Office for two years following her release from federal prison and pay $326,334.64 in restitution.
U.S. Attorney Myers thanked Assistant U.S. Attorney Corbin Houston, who prosecuted this case.
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Former Defense Contractor in Tomah Receives 15-Month Prison Sentence & $10,000 Fine for Wire FraudRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jonathan Walker, 46, Tomah, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 15 months in federal prison for wire fraud. The prison term will be followed by one year of supervised release. Judge Peterson also ordered Walker to pay restitution in the amount of $72,000 and to pay a fine of $10,000. Judge Peterson ordered Walker to report to prison on January 4, 2024.
Walker pleaded guilty on July 11, 2023, to devising and participating in a scheme to defraud the U.S. Department of Defense (DoD). Walker owned and operated Walker Investment Properties (WIP) in Tomah, which was a contracting business that did heating and air conditioning services. Walker fraudulently obtained two DoD contracts to do work at Fort McCoy, falsely claiming that WIP was a service-disabled veteran owned small business (SDVOSB). WIP obtained two SDVOSB contracts worth a total of $1,927,536. WIP received a total of $482,577 from these two contracts.
Walker did not qualify as a SDVOSB, because he had never served in the military, much less been disabled as a result of his military service. The government’s proof showed that Walker was a 100% owner of WIP and ran the company.
As part of the government contracting system, a government contractor is required to sign a Federal Acquisition Regulation report under penalty of perjury certifying that the government contractor is providing true and correct information to the General Services Administration and will abide by all of the federal regulations pertaining to DoD contracting. Walker did this eight times from 2015 to 2019, falsely certifying he was a SDVOSB when he was not.
At today’s sentencing, Judge Peterson explained that a substantial sentence was warranted to send a message of general deterrence to other defense contractors, noting that the integrity of the set-aside program depends on the honesty of the contractors, and cheaters will be dealt with severely.
“The United States Attorney’s Office is committed to honoring and protecting those who served in America’s armed forces,” stated United States Attorney O’Shea. “In part, we demonstrate that commitment by working with our law enforcement partners to investigate and prosecute those who fraudulently pose as veterans for financial advantage.”
”The Defense Criminal Investigative Service (DCIS) is committed to working with our investigative partners to bring to justice those who abuse Government set-aside programs designed to encourage and support service-disabled veterans and woman and minority-owned small businesses,” stated Darrin K. Jones, Special Agent in Charge of the U.S. Department of Defense Office of Inspector General, DCIS, Southeast Field Office. ”Schemes like this undermine the integrity of these noble programs and cannot be allowed to continue.”
Special Agent in Charge Jeffrey Ryan of the General Services Administration Office of Inspector General added, “The GSA OIG will work with law enforcement partners to aggressively pursue cases involving anyone who falsifies information to fraudulently win government contracts. Legitimate service-disabled veteran businesses deserve a level playing field when competing for contract opportunities.”
The charges against Walker were the result of an investigation conducted by the U.S. Department of Defense - Office of Inspector General, Defense Criminal Investigation Service, General Services Administration - Office of Inspector General, and the Department of the Army Criminal Investigation Division. Assistant U.S. Attorney Daniel Graber handled the prosecution.
Former Clerk for Chicago Transit Authority Retirement Plan Sentenced to a Year in Prison for Fraudulently Obtaining $356,000 in Plan FundsRead the Press Release
CHICAGO — A former clerk for the Retirement Plan for Chicago Transit Authority Employees has been sentenced to a year in federal prison for fraudulently obtaining more than $356,000 in Plan funds.
AYANNA NESBITT created and obtained approval for approximately 43 fraudulent requests for the Plan to issue various benefits to CTA employees or their beneficiaries, including pension and death benefit payments, and refunds of pension contributions. The fraudulent requests contained false representations about the purported recipients’ identities and entitlement to the payments. Nesbitt had the payments sent to financial accounts she controlled or else had the money paid to others and then transferred to Nesbitt. From 2019 to 2021, Nesbitt defrauded the Plan of approximately $356,934.
Nesbitt, 51, of Chicago, pleaded guilty earlier this year to a wire fraud charge. U.S. District Judge Matthew F. Kennelly imposed the year-and-a-day sentence Tuesday after a hearing in federal court in Chicago.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, and Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Retirement Plan for CTA Employees provided valuable assistance.
“Defendant was a public employee who abused her position to benefit herself and those close to her,” Assistant U.S. Attorney Christopher K. Veatch argued in the government’s sentencing memorandum.
Former California Resident Sentenced to Ten Years in Prison on Drug Trafficking and Money Laundering ChargesRead the Press Release
PITTSBURGH, PA – A former resident of Stockton, California has been sentenced in federal court to 120 months of imprisonment followed by three years of supervised release on his conviction for violating federal narcotics and money laundering laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Christian Maldonado, age 35.
According to information presented to the court, Maldonado packed for shipment at least 280 pounds of methamphetamine that was shipped from the Stockton, California area to the Western District of Pennsylvania. Maldonado also received parcels containing over $1,000,000 in United States currency as payment for the methamphetamine. At the time of Maldonado’s arrest, seventeen firearms, jewelry, a large amount of marijuana, and $212,907 was seized from his residence.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department for the investigation leading to the successful prosecution of Maldonado. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former California Resident Sentenced to 9 Years in Prison for Role in Distribution of MethamphetamineRead the Press Release
PITTSBURGH, PA – A former resident of Stockton, California has been sentenced in federal court to 108 months of imprisonment followed by two years of supervised release on his conviction for violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Armando Razo Jr., age 34.
According to information presented to the court, Razo supplied approximately one hundred pounds of methamphetamine to Christian Maldonado in Stockton, California, which Maldonado then packaged for shipment to the Western District of Pennsylvania.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department for the investigation leading to the successful prosecution of Razo. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former California Resident Sentenced to 5 Years in Prison on Drug ChargesRead the Press Release
PITTSBURGH, PA – A former resident of Stockton, California, has been sentenced in federal court to 60 months of imprisonment followed by four years of supervised release on his conviction for violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Eric G. Olshan announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Abel Perez, age 36.
According to information presented to the court, Perez was a courier who transported methamphetamine to post offices in the Stockton, California area that were shipped to individuals in the Western District of Pennsylvania.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Drug Enforcement Administration, Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department for the investigation leading to the successful prosecution of Perez. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Florida Man Who Failed to Appear in Idaho for Sentencing in 2019 and Fled to Cuba Now Sentenced to Federal Prison on Fraud ChargesRead the Press Release
BOISE – Adrian Acosta Alonso, 34, of Florida, was sentenced to 24 months in federal prison for access device fraud charges and failing to appear in court, announced U.S. Attorney Josh Hurwit. Chief U.S. District Judge David C. Nye imposed the sentence and also ordered Alonso to serve three years of supervised release following his prison sentence.
According to court records and statements made in court, in December 2018, Alonso and his codefendants attempted to pry open a gas pump with a crowbar at a gas station in Meridian. They intended to place a device inside the gas pump capable of recording and storing customers’ financial transaction card information, also known as a skimming device.
Alonso and his codefendants fled the scene after an employee called the police. Alonso and his codefendants were arrested in a nearby van and Meridian police officers located access device-making equipment in the van, including skimming devices, chip readers, a financial transaction card reader/encoder, and security seals for gas pumps.
In addition, officers located 55 blank financial transaction cards and 15 counterfeit financial transaction cards embossed in the names of Alonso and his codefendants. On a laptop, officers additionally located spreadsheets containing 423 financial transaction card numbers along with associated financial transaction card holders’ names, personal identification numbers, and expiration dates.
In February 2019, Alonso and his codefendants were federally charged in the District of Idaho with access device fraud charges, and Alonso was released from custody with the condition to appear in court pursuant to the Bail Reform Act. Thereafter, Alonso pleaded guilty in August 2019, and the Court set a sentencing hearing for November 2019. On that date, however, Alonso knowingly and intentionally failed to appear for the sentencing hearing and instead, fled to Cuba where Alonso is also a citizen. Thereafter, in July 2022, Alonso was separately charged with failing to appear at his sentencing.
Alonso was arrested on both cases upon returning to the United States in December 2022. Judge Nye sentenced Alonso to 12 months in federal prison for access device charges and another 12 months in prison for failing to appear at his sentencing in 2019.
Judge Nye previously sentenced co-defendant Yatsel Aleman Santana, 34, of Florida, in February 2023 to 30 months in federal prison after Santana also fled to Cuba to avoid the same access device fraud charges.
U.S. Attorney Hurwit commended the work of the United States Secret Service and the Meridian Police Department, which led to the charges. Assistant U.S. Attorney Sean Mazorol prosecuted the case.
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Five Indicted in Scheme to Fraudulently Obtain Bank and Small Business Administration Loans in Property Flipping SchemeRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging five individuals for a fraud scheme intended to obtain over $35 million from financial institutions by providing false documentation in support of SBA loan applications for the purchase of hotels. Defendant Mehul Ramesh Khatiwala, a/k/a “Mike Khatiwala,” age 41, of Voorhees, New Jersey, also faces a continuing financial crimes enterprise charge, also known as the financial crime kingpin statute—the first time this statute has been charged in Maryland. The indictment was returned on November 1, 2023. In addition to Khatiwala, the following defendants are charged in the indictment with bank fraud, making false statements to financial institutions, and money laundering:
Rajendra G. Parikh, age 63, of Monroe, New Jersey; Jennifer H. Watkins, age 47, of Marlton New Jersey; Rebecca Marie Cohn, a/k/a Rebecca Marie Stanton, age 36, of Fallston, Maryland; and
Rajnikant I. Patel, age 59, of North Brunswick, New Jersey.Rajnikant Patel and Jennifer Watkins will have initial appearances on November 9, 2023, at 11:00 a.m. and 11:30 a.m., respectively, in U.S. District Court in Baltimore before U.S. Magistrate Judge A. David Copperthite. Cohn had her initial appearance on November 6, 2023. Khatiwala and Parikh had initial appearances in the U.S. District Court in New Jersey on November 3, 2023, and were ordered to be detained.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Robert Manchak, Federal Housing Finance Agency Office of Inspector General (“FHFA-OIG”); and Special Agent in Charge Jeffrey D. Pittano, Mid-Atlantic Region, Federal Deposit Insurance Corporation Office of Inspector General (“FDIC-OIG”).
According to the 31-count indictment, Khatiwala was the owner and managing member of Delaware Hotel Group LLC (“DHG”), and an operator of GMK Consulting LLC (“GMK”) and KPG Hotel Mgmt. LLC (“KPG”), which were hotel management and loan brokerage companies located in Mount Laurel, New Jersey. Jennifer Watkins was a project coordinator for DHG and managing member of Forza Consulting LLC (“Forza”), a hotel consulting and loan brokerage company located in Marlton, New Jersey. Rajendra Parkih was an owner of KPG and Rebecca Cohn was a settlement and title processor for Residential Title & Escrow Company (“Residential Title”), a real estate title company located in Owings Mills, Maryland, that offered escrow and loan settlement services. Rajnikant Patel worked as the manager of a convenience store owned by Parikh and Parikh’s brother.
The indictment alleges that from August 2018 until February 2020 the defendants conspired to obtain loan proceeds for the defendants and others to buy and sell hotels in a hotel flipping scheme by making material misrepresentations and omissions to financial institutions during the loan application process regarding the identity of the sellers, the familial relationships between the parties, and the nature and amount of the equity injected by the borrowers, under the SBA’s Section 7(a) Program. The SBA’s Section 7(a) Program guaranteed and insured 75 percent to 90 percent of qualified loans made and administered by participating lending institutions and required that the small business owner/borrower invest a certain amount of their own money into the business to qualify for the loan.
Specifically, the indictment alleges that Khatiwala, Parikh, and Watkins created shell companies using Patel and a co-conspirator as the straw owners of the companies, then had the straw owners sign purchase contracts, operating agreements, and related documents to buy hotel properties in the names of the shell companies created by Khatiwala, Parikh, and Watkins, while at the same time soliciting investors, including family members, and creating other companies to serve as buying entities (the “Buyers”) so they could quickly resell the hotels at a much higher price.
As detailed in the indictment, Khatiwala, Parikh, Watkins, and Cohn collected, compiled, and submitted documentation needed by financial institutions to determine whether the Buyers qualified for the SBA loans, including records proving that the Buyers provided sufficient cash upfront to satisfy SBA’s equity injection requirements for Section 7(a) funding, such as checks, bank statements, and wire transfer records. Cohn maintained the equity injection funds in designated Residential Title escrow accounts pending the loan settlements and kept ledgers to track the use of those escrow funds.
The indictment alleges that Khatiwala, Parikh, Watkins and Cohn: fraudulently diverted some of the Buyers’ equity injections to make down payments on hotels that were under contract to shell companies controlled by Khatiwala and Parikh; submitted the same wire transfer records and gift letters as support for equity injections that had been already been used to satisfy the buyer’s equity injection obligations for other SBA loan applications; and fraudulently submitted falsified bank statements and wire transfers to satisfy the equity injections.
The indictment also alleges that the defendants engaged in roundtrip transactions, whereby they falsely represented to financial institutions that over $1.5 million on deposit in a Residential Title escrow account would be used to satisfy the Buyer’s equity injection obligations, when, the indictment alleges, the funds were temporarily withdrawn from that account prior to the loan closings and redeposited back into the same escrow account subsequent to the loan closings.
Further, the indictment alleges that Khatiwala, Parikh, Watkins, and Cohn falsely represented to financial institutions that the buying entities had purchased the hotels from the shell companies when, in fact, the shell companies had not yet owned the properties. Khatiwala, Parikh, Watkins, and Cohn diverted loan proceeds intended for the buyers to purchase hotels from the shell companies so that the shell companies could first purchase the property and then flip it to the buyer.
If convicted, Khatiwala faces a mandatory minimum sentence of 10 years and up to life in prison for a continuing financial crime enterprise. All of the defendants face a maximum of 30 years in federal prison for the conspiracy to commit bank fraud and for each count of bank fraud; a maximum of 5 years in federal prison for a conspiracy to make a false statement to a financial institution. Khatiwala, Parikh, Watkins, and Cohn also face a maximum of 30 years in federal prison for each count of making a false statement a financial institution and a maximum of 10 years in federal prison for conspiracy to launder money and for each count of money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FHFA-OIG and FDIC-OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Martin J. Clarke, and Harry M. Gruber, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Federal grand jury indicts Jamestown felon on gun and methamphetamine chargesRead the Press Release
BUFFALO, N.Y. — U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Steven Glover, Sr., 39, of Jamestown, NY, with being a felon in possession of a firearm and possession of methamphetamine. The charges carry a maximum penalty of 15 years in prison and a $250,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case stated that according to the indictment and a previously filed complaint, on the morning of December 14, 2022, a Jamestown Police officer observed Glover in a vehicle. The officer knew that Glover was suspended from driving. The officer stopped the vehicle and made contact with Glover, who immediately advised that he had a pipe on his person. Glover then handed over a glass pipe that contained what appeared to be methamphetamine residue inside. Glover was detained and a search of the vehicle recovered a digital scale with white crystal residue and a pistol. Glover was charged in New York State Court and released on bail. On February 22, 2023, a Jamestown Police officer observed Glover in the passenger seat of another vehicle and was aware of his outstanding charges. The officer stopped the vehicle and observed drug paraphernalia a plastic bag containing suspected methamphetamine. Glover was again taken into custody. In 2019, Glover was convicted of a felony in Chautauqua County Court and is legally prohibited from possessing a firearm.
Glover was arraigned before U.S. Magistrate Judge Jeremiah J. McCarthy and detained.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The indictment is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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