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Friday 22 September 2023
Former executive and three other former employees charged with defrauding MohawkRead the Press Release
ROME, Ga. – Four former employees of Mohawk Industries, Inc. (“Mohawk”), Jana Kanyadan (Mohawk’s former Global Chief Information Officer), Sivakumar Thiyagasamadram, Madhu Shivalingegowda, and Chintan Sandesara have been indicted for allegedly defrauding Mohawk.
“These defendants allegedly took advantage of their positions to advance personal interests at Mohawk’s expense,” said U.S. Attorney Ryan K. Buchanan. “We will prosecute those who abuse their positions of authority to steal from the employers who trust them.”
“These defendants allegedly violated the trust placed in them by their employer,” said Sean Burke, Assistant Special Agent in Charge of FBI Atlanta. “The FBI works hard to make sure greed like this doesn’t pay off and those who commit fraud are held accountable.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Jana Kanyadan served as Mohawk’s Global Chief Information Officer. Sivakumar Thiyagasamadram, Madhu Shivalingegowda, and Chintan Sandesara were Mohawk employees with responsibility for Information Technology (“IT”).
In 2019, Mohawk launched a large, multi-year IT project and outsourced work for the IT project to IT consulting firms. The indictment alleges that the defendants secretly organized and controlled a Georgia company, Meta Technology Platforms, LLC (“Meta Tech”), and used their positions at Mohawk to retain Meta Tech as a Mohawk vendor and divert Mohawk’s outsourced IT consulting work to Meta Tech.
Between approximately May and October of 2022, Meta Tech submitted invoices to Mohawk totaling approximately $3,034,411. The invoices that Meta Tech submitted to Mohawk did not disclose the defendants’ relationship to Meta Tech. The invoices also allegedly charged Mohawk for services that had not been performed, for software that had not been provided, and at inflated hourly rates that Kanyadan approved on Mohawk’s behalf. Mohawk paid Meta Tech approximately $1,857,741.40 based on these fraudulent invoices.
Jana Kanyadan, 53, of Marietta, Georgia, Sivakumar Thiyagasamadram, 54, of Cumming, Georgia, Madhu Shivalingegowda, 38, of Acworth, Georgia, and Chintan Sandesara, 39, of Marietta, Georgia, were indicted by a federal grand jury on September 12, 2023, and had their initial appearances on September 21, 2023. Members of the public are reminded that the indictment contains only charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Tal C. Chaiken is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Utica Mayor and School Board President Indicted for Mail Fraud SchemeRead the Press Release
SYRACUSE, NEW YORK – Louis LaPolla, age 78, of Utica, New York, has been charged by indictment with six counts of mail fraud. United States Attorney Carla B. Freedman and Alfred A. Watson, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
The indictment alleges that LaPolla set up a scholarship fund in honor of his late wife, Andrea LaPolla, after she passed away in 2018, with the stated intention of benefitting Utica City School District students who planned to pursue post-secondary education in health-related fields. The indictment further alleges that LaPolla received tens of thousands of dollars in donations intended for the scholarship fund from individuals and businesses and that he spent nearly all of the donated money on himself rather than depositing it into the scholarship fund. LaPolla served as the mayor of Utica from 1984 to 1995, and he served as President of the Utica City School Board from 2018 to 2022, following 21 years of service as a member of the board. The charges in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The charges filed against LaPolla carry a maximum term of 20 years in prison, a fine of up to $1.5 million, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Following his arrest on these charges and initial appearance in federal court today, LaPolla was ordered released on conditions pending his trial.
FBI is investigating the case with assistance from the New York State Police and the Oneida County District Attorney’s Office, and Assistant U.S. Attorney Michael F. Perry is prosecuting the case.
Former Railroad Employee Sentenced to Two and a Half Years in Federal Prison for Fraudulently Obtaining Disability BenefitsRead the Press Release
CHICAGO – A former railroad engineer has been sentenced to two and a half years in federal prison for fraudulently obtaining disability benefits.
SCOTT CARLBERG operated and managed a tanning salon in Wisconsin for six years while simultaneously receiving occupational disability benefits from the U.S. Railroad Retirement Board. In his application for benefits, Carlberg asserted that he could no longer perform any type of work due to numerous daily limitations, including short-term-memory loss, poor concentration, irritability, frequent loss of temper, and information-processing difficulties. After the benefits were approved, Carlberg misrepresented the nature of his work at the salon and lied about the income he received from it.
A federal jury in Chicago earlier this year convicted Carlberg, 53, of Menomonie, Wisc., on four counts of wire fraud. In addition to the prison term, U.S. District Judge Edmond E. Chang on Tuesday ordered Carlberg to immediately pay more than $279,000 in restitution to the Railroad Retirement Board.
The sentence was announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Douglas Williams, Deputy Assistant Inspector General for Investigations at the RRB, Robert W. “Wes” Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI, and Mario Pinto, Special Agent-in-Charge of the U.S. Department of Health and Human Services Office of Inspector General. The government was represented by Assistant U.S. Attorneys Richard M. Rothblatt and Michelle Parthum.
Carlberg was one of six defendants charged in Chicago as part of an investigation into fraud perpetrated against benefit programs administered by the RRB to rail workers and their families. The five other defendants pleaded guilty and admitted fraudulently receiving benefits while simultaneously performing various types of work, including construction, landscaping, managing a donut shop, and captaining a charter fishing boat.
If you believe someone you know is receiving fraudulent disability benefits from the U.S. Railroad Retirement Board, you can contact the RRB OIG anonymously by calling 1-800-772-4528 or by sending an email to [email protected].
Former Postal Worker Charged with Stealing Checks from the U.S. MailRead the Press Release
WASHINGTON – Hachikosela Muchimba, 43, of Washington, D.C., was charged by criminal complaint with mail theft and bank fraud, announced U.S. Attorney Matthew M. Graves, Special Agent in Charge Imari Niles, of the U.S. Postal Service-Office of the Inspector General, Deputy Inspector General Trevor R. Nelson, of the Department of Treasury-Inspector General for Tax Administration, and Special Agent in Charge Derek W. Gordon, of Homeland Security Investigations (HSI) Washington, D.C.
According to the criminal complaint, between October 2021 and March 2023, Muchimba, an employee of the U.S. Postal Service, executed a scheme to steal checks from the U.S. mail and direct those funds into a bank account under his control. Muchimba would remove the name of the proper payee and replace it with his own name. Many of these misappropriated checks were U.S. Treasury checks. He is seen on bank surveillance removing the proceeds from ATM machines. The total amount of the checks that were fraudulently deposited into Muchimba’s accounts was $1,697,909.52. Law enforcement executed a search warrant at Muchimba’s personal residence on March 29, 2023. In the course of that search, law enforcement recovered an ATM receipt that reflected a deposit of a U.S. Treasury Check in the amount of $415,173.53.
The maximum penalty for bank fraud is 30 years in prison; and for mail theft is five years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted, the defendant’s sentence would be determined by the court based on the advisory U.S. Sentencing Guidelines and other statutory factors.
The investigation into this matter was conducted by the U.S. Postal Service-Office of the Inspector General, the Department of Treasury Inspector General for Tax Administration, and Homeland Security Investigations.
The case is being prosecuted by Assistant U.S Attorney John Borchert, of the U.S. Attorney’s Office for the District of Columbia.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal grand jury indicts local attorney on child pornography chargesRead the Press Release
COLUMBUS, Ohio – A resident of Grandview Heights was arrested today on federal charges including transporting, receiving, and possessing child pornography.
Stephen Chinn, 39, of Columbus, turned himself in at U.S. District Court this morning to be arrested by federal agents. Chinn then made his initial appearance in federal court this afternoon, and his charges were unsealed at that time.
According to the three-count federal indictment returned yesterday, Chinn uploaded child pornography to the internet that depicted prepubescent minors engaged in sexually explicit conduct including sex acts with adults and animals.
Chinn allegedly downloaded and saved other child sexual abuse material between Aug. 11 and Aug. 13. The material further depicted prepubescent children engaged in bestiality and sexual intercourse with adults, as well as minor victims subjected to sadistic and masochistic abuse.
On Aug. 16, a search warrant was executed at Chinn’s residence. It is alleged that Chinn possessed a desktop computer containing more than 4,000 child sexual abuse images. At the time, Chinn was employed as a public defender in Franklin County.
Chinn was initially arrested on Aug. 16 and charged locally with Pandering Sexually Oriented Matter Involving a Minor and Pandering Obscenity. Chinn was released on bond in that matter. The federal indictment will supersede any charges on his local case.
Chinn is scheduled to appear again in U.S. District Court at 1:30pm on Sept. 25 for a detention hearing.
Transporting and receiving child pornography are federal crimes punishable by a mandatory minimum of five years in prison. Both charges also carry a statutory maximum punishment of 20 years in prison, which is the same statutory maximum for possessing child pornography of a prepubescent minor.
The case is being investigated by the Franklin County Internet Crimes Against Children (ICAC) Task Force.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Angie Salazar, Special Agent in Charge, Homeland Security Investigations (HSI); Grandview Heights Police Chief Ryan Starns; Franklin County Sheriff Dallas Baldwin; and Franklin County Prosecutor Gary Tyack announced the charges. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
An indictment merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Federal Jury Finds Two Owensboro Men Guilty of Methamphetamine Trafficking OffensesRead the Press Release
Owensboro, KY – Yesterday, a federal jury in Owensboro, Kentucky convicted two local men of conspiring to possess with the intent to distribute methamphetamine and possessing with intent to distribute methamphetamine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Sheila G. Lyons of the DEA Chicago Field Division, and Chief Art Ealum of the Owensboro Police Department made the announcement.
According to court documents and evidence presented at trial, Cedric Swanagan, 37, and Courtland Reed, 32, were convicted of conspiring to possess with the intent to distribute over 50 grams of methamphetamine between September 2021 and April 4, 2022, in Daviess County, Kentucky and elsewhere. The jury also convicted both Swanagan and Reed of possession with the intent to distribute over 50 grams of methamphetamine on February 22, 2022, in Daviess County and elsewhere. The evidence presented at trial included recorded phone calls between the defendants that were intercepted during a federal wiretap investigation and evidence involving approximately 876 grams of pure methamphetamine associated with the defendants.
The jury further found that Swanagan had committed one serious drug felony and that Reed had committed one serious drug felony and one violent felony prior to committing the offenses in this case. These findings increased the mandatory minimum sentences for both defendants.
Sentencing is scheduled for January 25, 2024, before a United States District Judge for the Western District of Kentucky. Swanagan and Reed both remain in federal custody pending sentencing. Swanagan faces a mandatory minimum sentence of 15 years and a maximum of life in prison. Reed faces a mandatory minimum sentence of 25 years a maximum of life in prison. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
The DEA and the Owensboro Police Department investigated this case, with assistance from the Daviess County Sheriff’s Office, the Department of Homeland Security Investigations, the Indiana State Police, the Kentucky State Police, the Vanderburgh County Sheriff’s Office, the McLean County Sheriff’s Office, and the Owensboro-Daviess County Appalachia High Intensity Drug Trafficking Area (AHIDTA) Task Force.
Assistant U.S. Attorneys Frank Dahl and Josh Porter are prosecuting the case, with assistance from paralegal specialist Aaron Cooper.
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 www.justice.gov/OCDETF.
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District Man Sentenced to 37 Months in Prison for Federal Firearms OffensesRead the Press Release
WASHINGTON – Anthony Glenmore, 39, of Washington, D.C., was sentenced today to 37 months in prison and 36 months’ supervised release for possession of a loaded firearm and ammunition, announced U.S. Attorney Matthew M. Graves, Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD), and Special Agent in Charge Craig Kailimai of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Glenmore pleaded guilty in April 2023. According to court documents, on December 17, 2022, in the 2000 block of Georgia Avenue, Northwest, MPD officers, patrolling in a marked police vehicle, saw Glenmore walking south toward U Street, carrying a camouflaged backpack. The officers pulled alongside the defendant, rolled down the car window and asked the defendant if he had a gun in the backpack. The defendant denied that he had a gun and, when asked a second time, started walking away at a fast pace. One of the police officers then called out to the defendant, exited the vehicle, and started chasing the defendant who began running away. As the officer was chasing the defendant, he yelled for the defendant to drop the gun. The defendant then dropped the backpack which the officer picked up as the defendant tried to scale a building. When the officer unzipped the backpack he saw a firearm and wallet which contained the defendant’s identification.
The recovered firearm (Black, Intrac Arms, HS2000) contained 9-millimeter ammunition and had 14 rounds in a magazine that had the capacity to hold 16 rounds.
The defendant has been detained since December 17, 2022.
This case was investigated by the MPD and ATF as part of Project Safe Neighborhoods.
It was prosecuted by Assistant U.S. Attorney Shehzad Akhtar.
Davenport Woman Sentenced to Federal Prison for Possession of a Firearm by a FelonRead the Press Release
DAVENPORT, IA – On September 21, 2023, a Davenport woman was sentenced to 41 months in federal prison for possession of a firearm by a felon.
According to public court records and evidence, on September 19, 2022, around 11:00 p.m., Davenport Police were dispatched to a disturbance/shots fired call in the 500 block of West 17th Street. Upon arrival, officers observed a person enter a black Ford Fusion and depart at a high rate of speed. An officer attempted to stop the vehicle but it fled at speeds in excess of 75 miles per hour through Davenport neighborhoods until it crashed. The driver then fled on foot. An officer gave chase and eventually apprehended the driver who was then identified as G’Sani Bogan, 22. A search of Bogan’s vehicle revealed a loaded Smith & Wesson, M&P, .380 caliber semiautomatic pistol. The pistol had been reported stolen from a Rock Island, Illinois resident. A shell casing from the scene of the disturbance was identified as having been fired from the pistol.
Bogan had been convicted previously in Scott County of two felony offenses and was serving probationary sentences when this incident occurred. The district court ordered the 41-month sentence to be served consecutively to any terms of imprisonment imposed in the Iowa District Court for Scott County. Following her prison term, Bogan will serve three years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department.
Davenport Man Sentenced to 10 Years Related to January 2022 Shooting in DavenportRead the Press Release
DAVENPORT, IA – A Davenport man was sentenced today to 10 years in federal prison for being a felon in possession of a firearm, related to his involvement in a January 2022 shooting in Davenport.
According to public court documents and evidence presented at trial, Leonard Fisher, 32, fired six shots in the area of 13th Street and Washington Street, a residential area, during the early morning hours of January 29, 2022. Trial evidence showed that Fisher fired six rounds from a stolen firearm after an altercation inside of the Thunderguard Club. At the time of this offense, Fisher was on a furlough from the Federal Bureau of Prisons, from a prior prison sentence for being a Felon in Possession of a Firearm, related to a prior shots fired incident. A federal jury convicted Fisher in January 2023.
Timothy Angel, 39, of Clinton, was identified as another shooter in the January 2022 shooting incident. In January 2023, Angel was sentenced to eight years in federal prison.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
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. In May 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.
Colombian National Pleads Guilty to False Claim of Citizenship and Aggravated Identity TheftRead the Press Release
Orlando, FL - United States Attorney Roger B. Handberg announces that Oscar Eduardo Sanchez Gamboa (54, Kissimmee) has pleaded guilty to making a false claim of citizenship to obtain a state benefit and aggravated identity theft. Gamboa faces up to of five years’ imprisonment for making the false claim, and a consecutive minimum mandatory sentence of two years in federal prison for the aggravated identity theft. A sentencing date has not yet been set.
According to court documents, the Social Security Administration Office of the Inspector General (OIG–SSA) investigated the use of a Social Security number (SSN) in several loan applications to the U.S. Small Business Administration’s Paycheck Protection Program. The OIG-SSA provided agents from U.S. Customs and Border Protection (CBP) with copies of the loan applications. CBP officers then conducted a review of the Florida Department of Highway Safety and Motor Vehicle Records (DHSMV) for the SSN and the name used in the loan applications. The DHSMV records revealed that Gamboa had used the name, date of birth, and SSN of another person, who is a U.S. citizen, to apply for and obtain on separate occasions a Florida driver license and a Florida commercial driver license matching the person OIG-SSA had submitted to CBP. In order for Gamboa to receive these licenses, he affirmed under penalty of perjury that he was a citizen of the United States. A review of U.S. Department of State records and Department of Homeland Security databases by CBP confirmed that Gamboa was born in Colombia, is a citizen of Colombia, and is not a United States citizen.
This case was investigated by U.S. Customs and Border Protection and the Social Security Administration Office of the Inspector General. It is being prosecuted by Assistant United States Attorney Terry B. Livanos.
Colchester Couple Arraigned on Drug Trafficking and Gun ChargesRead the Press Release
Burlington, Vermont – The U.S. Attorney’s Office for the District of Vermont announced that Melinda Morgan, 41, and Dale Taylor, 39, of Colchester, Vermont were arraigned today on drug trafficking and gun charges arising from a June 30, 2023 traffic stop near Brattleboro, Vermont.
According to the indictment in the case, at the time of the stop, Morgan and Taylor possessed cocaine base and fentanyl with the intent to distribute it, and Morgan possessed two firearms in furtherance of the drug trafficking offense. Following a hearing today before the Honorable Kevin J. Doyle, United States Magistrate Judge, both defendants were detained pending further proceedings.
The indictment is an accusation only and Morgan and Taylor are presumed innocent until and unless proven guilty. If convicted on the possession with intent to distribute charges, Morgan and Taylor face a maximum sentence of twenty years of imprisonment. If convicted on the possession of firearms in furtherance of a drug trafficking crime, Morgan faces a minimum of five years of imprisonment in addition to any sentence of imprisonment imposed for drug trafficking. Both defendants face a maximum $1,000,000 fine and three years of supervised release, which would follow any sentence of imprisonment. The actual sentence will be advised by the Federal Sentencing Guidelines.
The United States is represented in this matter by Assistant U.S. Attorney Eugenia Cowles. Natasha Sen, Esq. represents Melinda Morgan. Jean-Claude Charbonneau, Esq. represents Dale Taylor.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn.
Charleston Man Sentenced to Nearly 20 Years in Federal Prison for Attempted Enticement of a MinorRead the Press Release
CHARLESTON, SOUTH CAROLINA — Therence Jamsion, 58, of Charleston, was sentenced to nearly 20 years in federal prison after pleading guilty to attempted coercion and enticement of a minor.
Evidence presented to the court showed that in the Fall of 2020, Jamison, a registered sex offender, engaged in sexually explicit conversations via an online dating app with whom he believed to be a 14-year-old boy. After engaging in conversation, Jamison made plans in November 2020 to meet up with the boy at his home to engage in sexual activity. Upon Jamison’s arrival at the home, he was met by an undercover police officer and was arrested.
“There is no place in our community for crimes against children,” said U.S. Attorney Adair F. Boroughs. “The U.S. Attorney’s Office stands ready to seek justice for victims of child exploitation and hold predators accountable. We are grateful to our law enforcement partners who work tirelessly to help identify and prevent these crimes.”
“HSI is committed to protecting children in our communities from predators that seek to abuse and exploit them, ” said Ronnie Martinez, Special Agent in Charge for HSI Charlotte, which covers North and South Carolina. “This sentencing is the result of the hard work of the agents and officers of HSI and our state and local law enforcement partners, to identify and arrest sexual predators and bring justice to the victims.”
United States District Judge Bruce H. Hendricks sentenced Jamison to 223 months in prison, to be followed by a lifetime term of court-ordered supervision. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by Mt. Pleasant Police Department, the South Carolina Attorney General’s Internet Crimes Against Children Task Force, and Homeland Security Investigations. Assistant U.S. Attorney Katie Orville prosecuted the case.
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Carbon County Man Sentenced to 15 Years’ Imprisonment for Drug TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Roberto Magobet, age 45, of Jim Thorpe, Pennsylvania, was sentenced to 15 years’ imprisonment by U.S. District Court Judge Robert D. Mariani for drug trafficking.
According to U.S. Attorney Gerard M. Karam, Magobet previously pleaded guilty on March 6, 2023, to possession with intent to distribute 50 grams and more of methamphetamine and fentanyl. On August 31, 2021, state parole agents were attempting to conduct a residence inspection at Magobet’s residence in Jim Thorpe when they observed a package of methamphetamine on the front porch. A search of the residence revealed seven grams of fentanyl and 243 grams of pure methamphetamine, along with drug packaging materials.
The case was investigated by Homeland Security Investigations and the Jim Thorpe Police Department. Assistant U.S. Attorney Jenny P. Roberts prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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California Woman Sentenced to 18 Years’ Imprisonment for Methamphetamine and Fentanyl TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tanya Stanger, age 33, of San Yisidro, California, was sentenced on September 21, 2023, by U.S. District Court Chief Judge Matthew W. Brann, to 18 years’ imprisonment on the charge of conspiracy to distribute methamphetamine and fentanyl.
According to United States Attorney Gerard M. Karam, Tanya Stanger and her husband, Bryce Stanger, age 34, also of San Yisidro, California, previously pleaded guilty and admitted to conspiring to distribute more than 500 grams of methamphetamine and more than 400 grams of fentanyl. The charge stems from an incident on August 25, 2021, in which members of the Pennsylvania State Police made a traffic stop of a vehicle in Union County. Bryce and Tanya Stanger were the occupants of the vehicle. A subsequent search of the vehicle resulted in the seizure of approximately thirty pounds of high-quality crystal methamphetamine and more than a kilogram of fentanyl. Further investigation revealed that the defendants were transporting the drugs from California to Hazleton, Pennsylvania, for further distribution.
Bryce Stanger is currently awaiting sentencing.
The investigation was conducted by the Pennsylvania State Police and the Federal Bureau of Investigations Safe Street Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Brockton Man Charged with Unlawful Possession of Firearm and AmmunitionRead the Press Release
BOSTON – A previously convicted felon has been charged with unlawfully possessing a Glock pistol and 18 rounds of ammunition.
Michael Whitfield, 42, of Brockton, was charged with one count of being a felon in possession of firearms and ammunition. Whitfield was arrested this morning and will appear in federal court in Boston at 12:30 p.m. this afternoon.
According to the charging documents, on March 6, 2023, upon arrival at a motor vehicle accident scene in Brockton, law enforcement observed Whitfield in a vehicle with significant damage, its airbag deployed and a broken passenger door window. It is alleged that there was a strong odor of alcohol coming from inside the vehicle and an empty tequila bottle was observed on the passenger seat floor. It is further alleged that a Glock 19X .9mm pistol loaded with 18 rounds was found on the driver’s side floorboard between Whitfield’s legs.
Due to a prior felony conviction stemming from 2006, Whitfield is prohibited from possessing firearms and ammunition.
The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to
$250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.Acting United States Attorney Joshua S. Levy and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the Plymouth County District Attorney’s Office, the Massachusetts State Police, the Brockton Police Department and the Brockton Fire Department. Assistant U.S. Attorney Luke A. Goldworm of the Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Arizona Woman Indicted for Importing Almost 95 Pounds of Methamphetamine from MexicoRead the Press Release
PHOENIX, Ariz. – Rosa Villanueva, 39, of Somerton, Arizona, was indicted by a federal grand jury last week on two counts of Importation of Methamphetamine and Possession with the Intent to Distribute Methamphetamine.
The indictment alleges that on August 16, 2023, Villanueva drove her vehicle from Mexico through the San Luis Port of Entry and was stopped after a drug-sniffing canine alerted on her vehicle. U.S. Customs and Border Protection officers conducted a search of the vehicle and discovered almost 95 pounds of methamphetamine hidden in 161 packages throughout the car.
Each count carries a maximum sentence of 20 years in prison, a fine of up to $1,000,000, and up to lifetime supervised release.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Homeland Security Investigations, Yuma Office, and U.S. Customs and Border Protection’s Office of Field Operations conducted the investigation in this case. Assistant U.S. Attorney Noah Coakley II, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: CR-23-01295-PHX-DLR
RELEASE NUMBER: 2023-138_Villanueva# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Arizona Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
A man who possessed methamphetamine with the intent to distribute it pled guilty today in federal court in Cedar Rapids, Iowa.
John Trinidad Qualls, age 42, from Tucson, Arizona, was convicted of possession with intent to distribute 50 grams or more of actual (pure) methamphetamine and 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
In a plea agreement, Qualls admitted that, on December 31, 2022, law enforcement traffic-stopped him for speeding. Qualls handed an officer a black pouch, which contained his license, insurance, and registration. There was marijuana residue inside the pouch, and both the pouch and documents smelled of marijuana. Qualls admitted that he had used marijuana earlier that day. Law enforcement searched the car and found 1,200.10 grams of actual (pure) methamphetamine.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Qualls remains in custody of the United States Marshal. Qualls faces a mandatory minimum sentence of ten years’ imprisonment and the following maximum penalties: (1) not more than life imprisonment without the possibility of parole; (2) a fine of not more than $10,000,000; (3) a mandatory special assessment of $100; and (4) a term of supervised release of at least 5 years and up to a term of life.
The case is being prosecuted by Special Assistant United States Attorney Devra T. Hake and was investigated by the Floyd County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 23-CR-2021. Follow us on Twitter @USAO_NDIA.
Albion Man Going to Prison for More Than 10 Years for Possession of Child PornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Anthony J. Alello, Jr., 32, of Albion, NY, who was convicted of possession of child pornography, was sentenced to serve 132 months in prison and 35 years of supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that in January 2022, an undercover FBI agent began communicating with Alello online using the Kik application. During these communications, Alello sent the agent links to cloud storage folders that contained child pornography. One folder contained approximately 2,484 videos of child pornography, and another folder contained approximately 45 videos of child pornography. On March 24, 2022, the FBI executed a search warrant at Alello’s residence and seized his cellular telephone. A subsequent forensic examination recovered approximately 1,744 images and six videos of child pornography, some of which depicted pre-pubescent children and violence against children.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Human Trafficking Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia, the Albion Police Department, under the direction of Chief David Mogle, and the Town of Tonawanda Police Department, under the direction of Chief James P. Stauffiger.
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42 Members of a Violent Gang Charged with Drug Trafficking and Firearms Violations in Manatí, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On September 20, 2023, a federal grand jury in the District of Puerto Rico returned an indictment charging 42 violent gang members from the municipality of Manatí with conspiracy to possess with intent to distribute, possession and distribution of controlled substances, and firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. This investigation was led by Homeland Security Investigations (HSI) and the Puerto Rico Police Bureau (PRPB), Arecibo Strike Force, with the collaboration of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), United States Postal Inspection Service (USPIS), the U.S. Marshals Service. The Federal Bureau of Investigations (FBI), Customs and Border Protection (CBP), CBP Air and Marine Operations, and the Barceloneta Police Department collaborated during the arrests.
“By arresting and prosecuting these defendants, the U.S. Attorney’s Office and its law enforcement partners are working to uphold the rule of law and punish violent offenders who terrorize our communities,” said U.S. Attorney Muldrow. “The Department of Justice is committed to dismantling criminal organizations, holding gang members accountable, and pursuing justice for victims.”
“For the last year, the residents in the Manatí area have been victims of violent crimes, going to bed and waking up to the sound of gunshots, tonight they will be able to rest,” said Rebecca González Ramos, Special Agent in Charge of HSI. “This organization is extremely violent; therefore this takedown included the activation of a total of 12 tactical teams and over 200 law enforcement officers from HSI San Juan and the U.S. Mainland along with federal, state, and local partners. This is a clear example of a multiagency collaboration; we were able to dismantle the new generation of a very violent drug trafficking organization that has been stealing the peace of these communities. Not anymore, HSI remains focused, determined, and steadfast to assure Puerto Rico’s public safety.”
The indictment alleges that from 2016, the drug trafficking organization called “Hasta los Marcian” (HLM) distributed heroin, fentanyl, cocaine base (commonly known as “crack”), cocaine, marihuana, Tramadol, and Clonazepam within 1,000 feet of the Enrique Zorrilla, Villa Evangelina, Vivamery, and Los Murales Public Housing Projects (PHPs), the Cerro Gandía Ward and the Morovis cemetery, all for significant financial gain and profit.
The goal of HLM was to maintain control of all the drug trafficking activities within the Manatí area by the use of force, threats, violence and intimidation. In preserving power and protecting territory, the members of HLM profited from the illegal distribution of narcotics including transportation and distribution of kilogram quantities of cocaine into the continental United States.
The investigation revealed that during the conspiracy the defendants and their co-conspirators participated in murders and shootings to further their drug trafficking operations. The defendants and their co-conspirators would sometimes use bullet proof vests to protect themselves when they participated in acts of violence. They modified firearms in order to convert them to automatic weapons (machineguns). On occasions, the co-conspirators legally purchased firearms and then sold them to members of the drug trafficking organization. Also, defendants and their co-conspirators would mail pieces of firearms or entire firearms from the continental United States to other members of the drug trafficking organization in Manatí.
The defendants acted in different roles to further the goals of the drug trafficking conspiracy, to wit: leaders, suppliers, drug point owners, enforcers, runners, sellers, lookouts, and facilitators. The members of the gang used force, violence, and intimidation to maintain control of the areas in which they operated. The defendants charged in the indictment are:
[1] Fabián López-Pino, a.k.a. “Fabi/Gordo/Panda”
[2] Michael Ángelo Reyes-Vázquez, a.k.a. “Chucky/Choky”
[3] Joshua Siragusa-Romero, a.k.a. “Tres Dobles”
[4] Alejandro Sáenz-Escobar, a.k.a. “Fresa/Fresita/Andito”
[5] Christopher Alberto Centeno-Marrero, a.k.a. “Chupy/Chupa Compras”
[6] Victor Cardoza, a.k.a. “Vitoy”
[7] Francisco Efrén Marín-Rodríguez, a.k.a. “Frank/F/El Viejo”
[8] Cesar Tyron Villegas–Cintrón
[9] Daniel Morla-Reyes, a.k.a. “Bebe/Bebe Murales/El Domi”
[10] Christopher Maldonado-López, a.k.a. “Gordo Flow”
[11] Christian Maldonado-López, a.k.a. “Ninja”
[12] José Israel Rivera-Morán, a.k.a. “Isratek/Isra”
[13] Christopher Pagán-Moux, a.k.a. “Zion”
[14] Carlos Jadriel Rivera-León, a.k.a. “Hulk/Carlitos Hulk”
[15] Jacier Collazo-Cruz
[16] Kenneth Noel Padilla-Martínez, a.k.a. “Dement/Demente”
[17] Jairo Luis Sánchez-Romero, a.k.a. “Grillo”
[18] Jonathan Yadriel Negrón-Quintero, a.k.a. “Wiwi”
[19] Adán David López-Quintero, a.k.a. “Chaco”
[20] Jadriel Yandel Bruno-Rodríguez, a.k.a. “Cuty”
[21] José Rafael Domínguez-Rivera, a.k.a. “Ojos Bellos”
[22] Bryan Joel Nieves-Romero, a.k.a. “Cabulla/Cabuya”
[23] Kelvin Joel Rivas-Quiñonez, a.k.a. “Piki/Rubio”
[24] Kenneth Córdova-Real, a.k.a. “Pope/Menor”
[25] Norma Iris Cintrón-Pino, a.k.a. “Normita”
[26] Ángel Javier Marrero-González, a.k.a. “Chacorta/Chacolta/Titi”
[27] William Omar Nieves-Maisonet, a.k.a. “Tito Llorón”
[28] Kevin Renier Marrero-Ocasio, a.k.a. “Coraje”
[29] Edsel Rodríguez-Ramírez, a.k.a. “La R/El Gordo/El Goldo”
[30] Miguel Ángel Ayala-De León, a.k.a. “Tonka”
[31] Jorge Luis Santiago-Robles, a.k.a. “El Mono/El Mono De Cerro Gandía”
[32] Jeremy Nael Rodríguez-Ortega, a.k.a. “Jordan”
[33] Shaquille Emmanuel Rivera-De Jesús
[34] Jonathan Montano-Menéndez, a.k.a. “Ata”
[35] Kelvin Luis Núñez-Otero, a.k.a. “Colilla”
[36] Manuel Ángel Jr. Torres-Pérez, a.k.a. “Manolo”
[37] María De Los Ángeles Candelario-Rosa, a.k.a. “María Pasillo”
[38] Victor David Santos-Medina, a.k.a. “Davisito”
[39] Richard Vázquez-Aponte, a.k.a. “BTA”
[40] Jorge Luis Rivera-Rodríguez, a.k.a. “El Mono/El Mono De Zorrillas”
[41] Isaías Daniel Lugo-Nazario, a.k.a. “Panda”
[42] John Anthony Sánchez-Valentín, a.k.a. “Joshua Pauta/Pauta”
Thirty-Three (33) defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime; and fifteen (15) of those defendants are facing one count of possession of a machinegun in furtherance of a drug trafficking crime.
Assistant U.S. Attorney (AUSA) and Chief of the Gang Section Alberto López-Rocafort; Deputy Chief of the Gang Section, AUSA Teresa Zapata-Valladares; AUSAs Corinne Cordero-Romo and Joseph Russell are in charge of the prosecution of the case. If convicted on the drug charges, the defendants face a minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges in Count Six, the defendants face a minimum sentence of 15 years, and up to life in prison. The defendants charged in Count Seven with possession of machineguns in furtherance of drug trafficking face a mandatory sentence of thirty years in prison to be served consecutive to any sentence imposed on the drug trafficking charges. All defendants are facing a narcotics forfeiture allegation of $31,347,400.
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.
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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Thursday 21 September 2023
Z-43 pleads guilty to trafficking tons of cocaine into United StatesRead the Press Release
HOUSTON – A former high-ranking member of the Los Zetas cartel has entered a guilty plea to a conspiracy to import tons of cocaine into the United States, announced U.S. Attorney Alamdar S. Hamdani.
Jose Maria Guizar-Valencia, 43, of Tulare, California, is considered one of the last numbered Los Zetas and was a regional leader in charge of the Guatemala/Central America region.
“Today the cartels were put on notice,” said Hamdani. “After a long and hard fought battle, we brought another ruthless cartel leader to justice. Jose Maria Guizar-Valencia may have thought he was untouchable, but now he feels the reach, power and persistence of the Department of Justice and the Drug Enforcement Administration (DEA). He once led the drug activity in a large swath of Central America. Those days are over, and the residents of the Southern District of Texas are now safer.”
“The guilty plea of Guizar-Valencia is another example of our success in the fight against Mexican drug cartels operating in the United States and exemplifies the commitment of the DEA and our law enforcement partners to battle against global drug trafficking organizations,” said DEA Special Agent in Charge Daniel C. Comeaux, Houston Division. “DEA continues our pursuit to hold accountable high ranking members of Mexican drug cartels who profit from the sale of dangerous drugs to our citizens, and threaten the security of the United States.”
In 2012, law enforcement began an investigation into the illegal drug trafficking activities of the Los Zetas. At the time, they were a Mexican-based drug cartel in control of much of the Mexico/U.S. border to include the Texas corridor.
The investigation revealed Los Zetas had expanded their control of the drug trade to Central and South America. This enabled them to control the importation of drugs from countries including Guatemala, Honduras and Colombia into the Republic of Mexico and then into the United States.
The investigation revealed that from 2007 to 2014, Guizar-Valencia was responsible for controlling a large portion of Guatemala and for coordinating the transportation of multi-ton quantities of cocaine from Colombia to Guatemala, Guatemala to Mexico and then from Mexico into the United States for further distribution. Guizar-Valencia also managed the receipt of millions of dollars in U.S. currency the cartel obtained from the sale of cocaine in the United States.
Guizar Valencia had been under indictment and was on the run for many years. He evaded apprehension until Feb. 9, 2018, when Mexican authorities and its military arrested him in Mexico City, Mexico. He later waived extradition.
U.S. District Judge Diana Saldana will sentence Guizar-Valencia at a later date, at which time he will be facing a possible punishment of up to life in prison and a $10 million maximum fine. He will remain in custody.
The DEA spearheaded the long term Organized Crime Drug Enforcement Task Forces (OCDETF) investigation.
OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys (AUSA) MaryLou Castillo, Lance Watt and former AUSA James Hepburn of the Southern District of Texas and Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case.
Yale University and Its Professor Agree to Pay $1.5 Million for Failure to Share Patent Royalties with VARead the Press Release
Yale University and Dr. John Krystal have agreed to pay $1,507,743.67 to resolve False Claims Act and common law allegations that they failed to disclose certain patents and failed to share patent royalties with the Department of Veteran Affairs (VA) for inventions made by Dr. Krystal when he worked for both institutions. The settlement resolves alleged conduct between March 2006 and February 2023.
“Universities and their professors must properly disclose and share royalties on inventions they discover while working for the government,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will ensure that those who benefit from government funding and resources properly compensate the taxpayers.”
“It is critical that inventions funded with taxpayer money be fully and timely disclosed to the government,” said U.S. Attorney Vanessa Roberts Avery for the District of Connecticut. “This settlement shows our commitment to ensuring that the government is fairly compensated for all taxpayer funded inventions.”
“The VA Office of Inspector General is committed to ensuring the VA is appropriately and fairly compensated for all intellectual property developed through VA-funded research projects,” said Special Agent in Charge Christopher Algieri with the Department of Veterans Affairs Office of Inspector General’s (VA OIG) Northeast Field Office. “The VA OIG thanks the Department of Justice for its efforts to reach this settlement.”
At the time of the inventions, Dr. Krystal was employed part time at Yale in various positions and with various research responsibilities, including as a Professor of Psychiatry, Neuroscience and Psychology, and Chair of the Department of Psychiatry in the Yale School of Medicine. He was also employed part time by the VA as a salaried clinical psychiatrist with research responsibilities at the VA Medical Center located in West Haven, Connecticut.
VA and Yale are parties to an agreement under which Yale and the VA agreed to promptly and in confidence disclose to each other all “Joint Inventions,” which included “any future invention or discovery, which is or may be patentable… in which at least one employee with compensation from the VA and at least one person who has an appointment with Yale is named as a co-inventor.” In addition, VA regulations require all VA employees to promptly disclose their inventions to the VA so the VA can make a determination as to whether it is entitled to ownership.
Beginning in March 2006, Dr. Krystal and four co-inventors applied for several patents related to the use of intranasal ketamine for treatment of depression and suicidal ideation. The patent applications allegedly acknowledged VA funding support. The U.S. Patent and Trademark Office issued three patents. Dr. Krystal assigned his interests in those three patents to Yale.
In February 2015, Yale and Dr. Krystal began receiving royalty payments arising from the three ketamine patents. The United States alleged they never shared these royalty payments, now totaling more than $3 million, with the VA, and did not disclose the patents to the VA until 2017. In September 2017 and then again in January and June 2019, another school (which had been assigned as agent for the ketamine patents), in coordination with Krystal and Yale, allegedly submitted documents to the U.S. Patent and Trademark Office removing the acknowledgement of VA support from the three ketamine patents.
The United States alleged that after a VA employee reminded Dr. Krystal of VA employees’ obligations to disclose inventions to the VA, in December 2017, Dr. Krystal submitted the required disclosure to the VA of the three ketamine patents. The VA then issued a determination that it was entitled to an ownership interest in the patents. Dr. Krystal appealed that determination to the National Institute of Standards and Technology, and the VA prevailed.
The settlement announced today resolves allegations that during the time-period from March 2006, when Dr. Krystal and the other co-inventors filed the first patent application, to Dec. 8, 2017, when Dr. Krystal disclosed the ketamine patents to the VA, Yale and Dr. Krystal knowingly and improperly avoided their obligations to disclose the ketamine patents to the VA and to pay the VA its share of the royalty payments for the patents. The settlement also resolves allegations that from the date that Dr. Krystal disclosed the patents through Feb. 3, Yale and Dr. Krystal were in breach of contract and unjustly enriched by their failure to share the royalty payments.
As part of this settlement, Dr. Krystal agreed to forego any entitlement to share in the settlement paid to VA, pursuant to rights that he would otherwise have as a VA employee inventor. Simultaneously with this settlement, Yale, Dr. Krystal and the VA also entered into a separate agreement, under which Yale and VA agreed to share future royalties associated with the ketamine patents and assign the patents to the VA.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the District of Connecticut and the VA’s Office of General Counsel.
Fraud Section Attorney Jonathan T. Thrope and Assistant U.S. Attorney Richard M. Molot for the District of Connecticut handled this matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementYale University and Its Professor Agree to Pay $1.5 Million for Failure to Share Patent Royalties with VARead the Press Release
WASHINGTON – Yale University and Dr. John Krystal have agreed to pay $1,507,743.67 to resolve False Claims Act and common law allegations that they failed to disclose certain patents and failed to share patent royalties with the Department of Veteran Affairs (VA) for inventions made by Dr. Krystal when he worked for both institutions. The settlement resolves alleged conduct between March 2006 and February 2023.
“Universities and their professors must properly disclose and share royalties on inventions they discover while working for the government,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will ensure that those who benefit from government funding and resources properly compensate the taxpayers.”
“It is critical that inventions funded with taxpayer money be fully and timely disclosed to the government,” said U.S. Attorney Vanessa Roberts Avery for the District of Connecticut. “This settlement shows our commitment to ensuring that the government is fairly compensated for all taxpayer funded inventions.”
“The VA Office of Inspector General is committed to ensuring the VA is appropriately and fairly compensated for all intellectual property developed through VA-funded research projects,” said Special Agent in Charge Christopher Algieri with the Department of Veterans Affairs Office of Inspector General’s (VA OIG) Northeast Field Office. “The VA OIG thanks the Department of Justice for its efforts to reach this settlement.”
At the time of the inventions, Dr. Krystal was employed part time at Yale in various positions and with various research responsibilities, including as a Professor of Psychiatry, Neuroscience and Psychology, and Chair of the Department of Psychiatry in the Yale School of Medicine. He was also employed part time by the VA as a salaried clinical psychiatrist with research responsibilities at the VA Medical Center located in West Haven, Connecticut.
VA and Yale are parties to an agreement under which Yale and the VA agreed to promptly and in confidence disclose to each other all “Joint Inventions,” which included “any future invention or discovery, which is or may be patentable… in which at least one employee with compensation from the VA and at least one person who has an appointment with Yale is named as a co-inventor.” In addition, VA regulations require all VA employees to promptly disclose their inventions to the VA so the VA can make a determination as to whether it is entitled to ownership.
Beginning in March 2006, Dr. Krystal and four co-inventors applied for several patents related to the use of intranasal ketamine for treatment of depression and suicidal ideation. The patent applications allegedly acknowledged VA funding support. The U.S. Patent and Trademark Office issued three patents. Dr. Krystal assigned his interests in those three patents to Yale.
In February 2015, Yale and Dr. Krystal began receiving royalty payments arising from the three ketamine patents. The United States alleged they never shared these royalty payments, now totaling more than $3 million, with the VA, and did not disclose the patents to the VA until 2017. In September 2017 and then again in January and June 2019, another school (which had been assigned as agent for the ketamine patents), in coordination with Krystal and Yale, allegedly submitted documents to the U.S. Patent and Trademark Office removing the acknowledgement of VA support from the three ketamine patents.
The United States alleged that after a VA employee reminded Dr. Krystal of VA employees’ obligations to disclose inventions to the VA, in December 2017, Dr. Krystal submitted the required disclosure to the VA of the three ketamine patents. The VA then issued a determination that it was entitled to an ownership interest in the patents. Dr. Krystal appealed that determination to the National Institute of Standards and Technology, and the VA prevailed.
The settlement announced today resolves allegations that during the time-period from March 2006, when Dr. Krystal and the other co-inventors filed the first patent application, to Dec. 8, 2017, when Dr. Krystal disclosed the ketamine patents to the VA, Yale and Dr. Krystal knowingly and improperly avoided their obligations to disclose the ketamine patents to the VA and to pay the VA its share of the royalty payments for the patents. The settlement also resolves allegations that from the date that Dr. Krystal disclosed the patents through Feb. 3, Yale and Dr. Krystal were in breach of contract and unjustly enriched by their failure to share the royalty payments.
As part of this settlement, Dr. Krystal agreed to forego any entitlement to share in the settlement paid to VA, pursuant to rights that he would otherwise have as a VA employee inventor. Simultaneously with this settlement, Yale, Dr. Krystal and the VA also entered into a separate agreement, under which Yale and VA agreed to share future royalties associated with the ketamine patents and assign the patents to the VA.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the District of Connecticut and the VA’s Office of General Counsel.
Fraud Section Attorney Jonathan T. Thrope and Assistant U.S. Attorney Richard M. Molot for the District of Connecticut handled this matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Woodbridge Man Sentenced for Defrauding the Elderly in Romance Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A Woodbridge man was sentenced today to 15 months in prison for conspiring to launder money in relation to romance and investment frauds.
According to court documents, from 2014 to March 2019, Ishmael Kayede, 40, conspired and agreed with multiple co-conspirators to launder funds derived from mail or wire fraud schemes, including romance fraud, gold and diamond investment fraud, and other fraud scams. During his participation in this money laundering conspiracy, Kayede received funds in his bank accounts from victims of those romance and other fraud schemes while working with and at the direction of associates located in foreign jurisdictions, including Ghana.
Kayede’s co-conspirators largely targeted elderly victims in the United States, primarily using online dating websites such as match.com. They would befriend potential victims on the dating websites using false pretenses and would then exploit that trust to convince the victims to send money to Kayede’s bank accounts. Kayede would then transmit the funds to Ghana. If he had trouble moving the money, he would lie to bank officials about the source and nature of the funds. Some victims targeted by the scheme lost thousands of dollars; others lost more than a hundred thousand dollars to the defendant’s activities. In total, Kayede received and laundering approximately $1.3 million over the course of his involvement with the scheme.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after sentencing by U.S. District Judge Michael S. Nachmanoff.
Assistant U.S. Attorney Jonathan Keim and former Assistant U.S. Attorney Carina Cuellar prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-94.
Wilson Business Owner Latest to be Sentenced in National COVID-19 Fraud SchemeRead the Press Release
RALEIGH, N.C. – Isaac Lamont Dawson, 45, was sentenced to 36 months in prison for fraudulently obtaining Paycheck Protection Act (“PPP”) COVID-19 loans on behalf of two separate businesses he owned. He is the seventh defendant to be sentenced for his role in the scheme, and he has received the longest sentence so far. To date, 16 defendants have pled guilty to this scheme in the Eastern District of North Carolina. Sentencing is pending for the remaining nine.
“Stealing taxpayer money intended to help struggling businesses during a pandemic is shameless,” said U.S. Attorney Michael Easley. “We will continue to hold accountable those who criminally took advantage of our country in its time of need.”
According to the filed charges and information summarized in court, Dawson conspired with Edward Whitaker, Schunda Coleman, and others to obtain fraudulent PPP loans on behalf of their businesses. Dawson’s businesses included a construction company and a holding company. Whitaker and Coleman pled guilty on January 19, 2023 for their role in operating a nation-wide scheme to help people across the country commit millions of dollars of PPP fraud from their home in Texas.
Whitaker and Coleman created fraudulent supporting documents and applications for each PPP loan in exchange for 25% of the total loan proceeds. The fraudulent applications falsified the number of employees and gross wages being paid prior to the COVID-19 pandemic by backdating fraudulent IRS Forms 940 and 941, in order to help qualify for the PPP loans. Following the disbursement of the PPP loans, Whitaker gave each defendant, via text messages subsequently obtained by law enforcement, detailed instructions as to how to make it appear that the PPP loans were being paid out to employees. In reality, most or all of the money was transferred back to the defendants. The fraudulent payroll records were then submitted to the Small Business Administration (SBA) to obtain 100% loan forgiveness.
Late last year, Quentin Jackson pled guilty in the same conspiracy which included the recruitment of numerous individuals within the Eastern District of North Carolina to use Whitaker and Coleman to obtain fraudulent PPP funds.
“The Paycheck Protection Program was designed to help small businesses facing financial difficulties during the COVID-19 pandemic,” said Donald “Trey” Eakins, Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge in the Charlotte Field Office. “Through our partnership with the U.S. Attorney’s Office and our federal law enforcement partners, IRS Criminal Investigation Special Agents will continue to aggressively pursue individuals who try to exploit federal relief programs for their personal gain.”
Defendants that have been sentenced so far include:
- Shakeerah Kaneisha Yvette Vinson [Case No. 5-23-cr-00027-D]
- Monica Faye Barnes [Case No. 5:23-cr-00094-D]
- Terron Cortez Parker [Case No. 5-23-cr-00081-D]
- Kami D. Woodard [Case No. 5-23-cr-00095-D]
- Eugene Miller, Jr. [Case No. 5-23-cr-00290-D]
- Jonathan Fleming [Case No. 5-23-cr-00227-D]
All but Fleming received sentences of 12 months plus one day. Fleming received a 15- month prison sentence.
Defendants awaiting sentencing include:
- Quentin Jackson [Case No. 5-23-cr-180-D]
- Edward Whitaker [Case No. 5-22-cr-00257-D]
- Schunda Coleman [Case No. 5-22-cr-00257-D
- Nekita Hooks [Case No. 5-23-cr-00025-D]
- Denise Alston [Case No. 5-23-cr-00077-D]
- Dontrell Barnes [Case No. 5-23-cr-00094-D]
- Lenille Woodard [Case No. 5-23-cr-00138-D]
- Irene Edwards [Case No. 5-23-cr-00098-D]
- Jackson Ndoyo [Case No. 5-23-cr-00118-D]
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to provide emergency financial assistance to the millions of Americans who were economically suffering from the COVID-19 pandemic. The CARES Act and additional appropriations authorized up to $649 billion in forgivable loans to small businesses through the Paycheck Protection Program (PPP). Financial institutions issued the PPP loans, which were guaranteed by the SBA.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. District Judge James C. Dever III announced the sentence. Internal Revenue Service (IRS) Criminal Investigation is leading the investigation, and Assistant U.S. Attorney David G. Beraka is prosecuting the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:23-CR-00097-D.
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West Sacramento Man Indicted for Distributing Fentanyl and Being a Felon in Possession of a GunRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Kamaal Yusuf, 22, of West Sacramento, charging him with conspiracy to distribute and possession with intent to distribute 400 grams of fentanyl, distribution of fentanyl, possession with intent to distribute 400 grams of fentanyl, being a felon in possession of a firearm, and possession of an unregistered short-barrel rifle, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in May 2022 Yusuf was conspiring to distribute 400 grams of fentanyl in El Dorado, Sacramento, and Yolo Counties. On three occasions, twice in Sacramento County and once in Yolo County, he distributed fentanyl pills. Yusuf also possessed another 400 grams of fentanyl in Yolo County. Yusuf, who is a previously convicted felon, is also charged with illegally possessing a Glock handgun and an unregistered short-barreled rifle.
This case is the product of an investigation by the West El Dorado Narcotics Enforcement Team, the El Dorado County District Attorney’s Office, the Yolo County District Attorney’s Office, the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Homeland Security Investigations. Special Assistant U.S. Attorney Matthew De Moura is prosecuting the case.
If convicted, Yusuf faces a mandatory minimum of 10 years in prison, a maximum penalty of up to life in prison and a $10 million fine for conspiracy to distribute fentanyl; a maximum of 20 years in prison and a $1 million fine for distribution of fentanyl; and 10 years in prison and a $250,000 fine for the counts of being a felon in possession of a firearm and possession of an unregistered short-barrel rifle. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case 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 U.S. 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.
Voorhees Man Sentenced to 80 Months in Prison for Possessing Child Pornography in Camden CountyRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced to 80 months in prison for possessing images of child sexual abuse, U.S. Attorney Philip R. Sellinger announced today.
Bruce Makley, 68, of Voorhees, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with one count of possession of child pornography. Judge Kugler imposed the sentence on Sept. 20, 2023, in Camden federal court.
According to documents filed in this case and statements made in court:
On Aug. 14, 2020, law enforcement agents executed a search warrant at the defendant’s residence. Makley admitted possessing more than 600 images of child sexual abuse, including images of sadistic or masochistic conduct or other depictions of violence, or sexual abuse or exploitation of an infant or toddler.
In addition to the prison term, Judge Kugler sentenced Makley to 10 years of supervised release, and ordered him to pay $152,000 in restitution.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Acting Special Agent in Charge Robert Kurtz; the Camden County Prosecutor’s Office, under the direction of Camden County Prosecutor Grace C. MacAulay; officers of the Voorhees Police Department, under the direction of Chief Louis Bordi; and officers of the Mt. Laurel Police Department, under the direction of Chief Judy Lynn Schiavone, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the United States Attorney’s Office in Camden.
Van Buren Man Sentenced to More Than 10 Years in Federal Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Fort Smith – A Van Buren man was sentenced today to 130 months in prison followed by three years of supervised release on one count of Possession of Methamphetamine with the Intent to Distribute. The Honorable P.K. Holmes, III presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court documents, in September 2022, a patrol officer with Van Buren Police Department attempted to perform a traffic stop on Philip Ray Jones, age 44. Jones failed to pull over and a high-speed chase ensued. Ultimately Jones abandoned his vehicle in a residential area and tried to flee on foot. During the foot pursuit Jones dropped a bag on the ground. A search of Jones and the bag yielded methamphetamine, cash, a digital scale and other illegal controlled substances.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Drug Enforcement Administration, Van Buren Police Department and Crawford County Sheriff’s Office investigated the case.
Assistant U.S. Attorneys Carly Marshall and Tyler Williams prosecuted the case.
Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov.
Vallejo Man Indicted for Assaulting Federal Agents with a Firearm and Being a Felon in Possession of a Firearm and AmmunitionRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Sean Thomas Delapp, 37, of Vallejo, charging him with assaulting federal officers with a deadly weapon and being a felon in possession of a firearm and ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Delapp assaulted two FBI special agents by chasing them with his car, pulling up alongside them, and aiming a firearm at them through the window, making a recoil motion with the firearm. A subsequent search warrant at his residence resulted in the discovery of a Glock 29 firearm, ammunition, and various firearm parts. Delapp is prohibited from possessing firearms or ammunition because he was previously convicted of a felony evasion offense.
This case was the product of an investigation by the Federal Bureau of Investigation, the California Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, Delapp faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case 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 U.S. 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.
United States Attorney Brandon B. Brown Convenes Annual Training, Leadership Development and Award Conference in Bossier CityRead the Press Release
SHREVEPORT, La. – United States Attorney Brandon B. Brown announced today that the Western District of Louisiana’s United States Attorney’s Office Annual Training and Leadership Development Conference will be held September 20-22, 2023, at the Bossier Parish Sheriff Substation in Bossier City, LA. The district is headquartered in Shreveport with approximately 50 employees and has a branch office in Lafayette with roughly another 40 employees. The annual conference is the only time over the course of each fiscal year when the District’s employees convene in one location and the conference usually rotates between the Shreveport and Lafayette areas.
Sheriff Julian Whittington assisted U.S. Attorney Brandon B. Brown with the opening of the conference. The remainder of the agenda for the conference included presentations by: Chief District Judge Terry Doughty, General Counsel for the Executive Office for United States Attorneys (EOUSA) Jay Macklin, Deputy Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives Marvin Richardson EOUSA White Collar Crime & Covid-19 Fraud Coordinator Mandy Riedel and EOUSA Attorney Advisor Cristina Burbach. Additionally, Britney Green, Susette Bryant and retired Assistant United States Attorney William J. Flanagan will conduct leadership development sessions and renowned trial attorney, Roger Dodd of the Dodd Trial Skills Clinic will instruct on cross examination strategy and techniques.
The conference also included several team building exercises and for the first time a district award’s luncheon. During the luncheon, US Attorney Brown recognized the exceptional work of federal, state and local law enforcement officers, Assistant United States Attorneys and members of the district’s professional staff for their efforts in outstanding investigations, prosecutions, appellate advocacy and leadership over the last fiscal year. “Over the years, we have given out awards at our conference, but I wanted to put more of an emphasis on the awardees’ work this year with a luncheon. Every day, the men and women of this district have accepted the calling to show up and give the government an honest day’s work and it is incumbent upon upper management to celebrate them for their achievements. Likewise, law enforcement officers across the district have collaborated with us as partners to help keep our communities safe, hold those accountable who defraud the government and those who violate the civil rights of the citizens of this district,” said United States Attorney Brown. “Today’s awardees exemplify that it takes a team effort from our attorneys, professional staff and our law enforcement partners to support and defend the Constitution of the United States to the best of our ability.”
The following case related awards were announced by U.S. Attorney Brown:
Outstanding Appellate Award
Awarded to the following for outstanding appellate advocacy in the prosecution of United States v. William Holdman.
Recipients: Assistant United States Attorney Michael Shannon
Assistant United States Attorney Forrest Phillips
Legal Assistant Stephanie Stewart
Paralegal Specialist Lisa Alwert
Special Agent Brad Rabalais, U.S. Department of Wildlife & Fisheries
Game Warden Kurt Hatten, LA Department of Wildlife & Fisheries
Outstanding Affirmative Civil Enforcement Award
Awarded to the following for the investigative and prosecutive efforts in a civil action to recover government money lost to fraud and other misconduct in the matter of US ex rel Goodley, Acadiana Management Group, Lafayette Physical Rehabilitation Hospital & Dr. Carolyn Smith.
Recipients: Assistant United States Attorney Missy Theriot
Legal Assistant Tanya Trahan
Special Agent Rita Bergeron, Department of Health & Human Services
Outstanding Defensive Litigation Award
Awarded to the following for the civil defensive employment law litigation on behalf of the United States in the matter of Steven Katz v. Christine Wormuth.
Recipients: Assistant United States Attorney Jennifer Frederick
Paralegal Specialist Terri Comeaux
Outstanding Civil Rights Prosecution Award
Awarded to the following for superior investigative and prosecutive performance in the hate crime related matter of United States v. Chance Seneca.
Recipients: Deputy Criminal Chief Myers Namie
Former Assistant United States Attorney Robert Abendroth
Legal Administrative Specialist Melissa Morris
Paralegal Specialist Jennifer Broussard
Special Agent Dan English (Ret.), Federal Bureau of Investigation
Outstanding Organized Crime Drug Enforcement Task Force/Narcotics Prosecution Award
Awarded to the following for superior performance in the thwarting of drug/narcotics trafficking in the matter of United States v. Brian Broussard.
Recipients: Assistant United States Attorney Daniel Vermaelen
Paralegal Specialist Denise Duhon
Special Agent Doug Herman, Federal Bureau of Investigation
Special Agent Bobby Bodin, Bureau of Alcohol, Tobacco & Firearms
Outstanding Public Corruption Prosecution Award
Awarded to the following for an investigation revealing conduct that affected government integrity and/or offenses involving public official misconduct in the prosecution of United States v. Harold Wayne Sanford, Jr.
Recipients: Special Counsel to United States Attorney Alexander C. Van Hook
Legal Assistant Kristi Viola
Paralegal Specialist Emily Favrot
Legal Administrative Specialist Ginger Green
Legal Administrative Specialist Melissa Morris
Secretary to USA Tanya’ Porter
Victim Witness Coordinator Vicki Chance
Special Agent Raquel Mobley, Federal Bureau of Investigation
Outstanding Violent Crime/Domestic Terrorism Prosecution Award
Awarded to the following for outstanding performance in an investigation leading to the arrest and prosecution of an individual who committed acts of violent crime in the prosecution of United States v. Daniel Aikens.
Recipients: Assistant United States Attorney Jamilla Bynog
Assistant United States Attorney Daniel McCoy
Assistant United States Attorney LaDonte Murphy
Paralegal Specialist Emily Lanphier
Legal Administrative Specialist Melissa Morris
Victim Witness Coordinator Vicki Chance
Special Agent Theresa Mesa, Bureau of Alcohol, Tobacco & Firearms
Special Agent Andrew Erdmann, Bureau of Alcohol, Tobacco & Firearms
Outstanding White Collar Fraud Prosecution Award
Awarded to the following for outstanding performance in white collar crime involving bankruptcy fraud and tax evasion in the prosecution of United States v. Joseph Boswell.
Recipients: Assistant United States Attorney Cytheria Jernigan
Criminal Chief Earl Campbell
Paralegal Specialist Emily Lanphier
Legal Administrative Specialist Laura Borque
Victim Witness Coordinator Vicki Chance
Special Agent Cory Moton, Internal Revenue Service
Special Agent Holly Deshotel, Internal Revenue Service
Outstanding White Collar Fraud Prosecution Award
Awarded to the following for outstanding performance in white collar crime involving Cares Act (Covid-19) fraud in the prosecution of United States v. Michael A. Tolliver.
Recipients: Assistant United States Attorney Seth Reeg
Legal Assistant Kristi Viola
Special Agent Darrin Heusel, Internal Revenue Service.
Additional federal, state and local law enforcement officers were also recognized for overall exemplary performance in violent crime investigative efforts and they are as follows: Bureau of Alcohol, Tobacco & Firearms Special Agent Christina Curtis, Drug Enforcement Administration Special Agent Travis Coyman, Federal Bureau of Investigation Special Agent Heath White, Deputies Steven Shankle and Erik Wikstrom of the Bossier Parish Sheriff’s Office, Deputy Brent Young of the Calcasieu Parish Sheriff’s Office, Detective Anthony Cowan of the Monroe Police Department, and Shreveport Police Department officers/analysts Stacy Coleman, Sara Gilmour, Erin Heflin, Donald Henry and Brent Ouzts.
Lastly, in late 2022, US Attorney Brown convened a community advisory group called “Focusing on the Future” that U.S. Attorney Brown meets with on a monthly basis. This group will be recognized for their contributions to the U.S. Attorney’s Office in an advisory role in terms of violent crime prevention strategies and civil rights awareness matters. Members of that group are: Mario Chavez, MersaTech; Dr. Jerome Cox, We Care Ministries Outreach Program; Dr. Lamar Goree, Caddo Parish Schools; Dr. John Henson, Church for the Highlands; Dr. Theron Jackson, Morning Star Baptist Church; Ms. Von Jennings, City of Shreveport; Rev. Lee Jeter, Bossier Parish NAACP; Mansfield Mayor Thomas Jones, Ms. Debbie Martin, Roberts & Murphy, Inc.; Dr. Russell Minor, Community Renewal; Dr. Heath Peloquin, Summer Grove Baptist Church; Oil City Mayor James Sims; Clay Walker, Caddo Parish Assistant Administrator; Billy Wayne, Urban Support Agency, Inc.; and Ryan Williams, Seedlinks Behavioral Management. “I have learned a great deal this year from this group, and they have educated me on ways prosecutors, law enforcement and the community can work together for the common good. Simultaneously, my goal was to educate the group on how the Department of Justice and our local district functions so that citizens will start to have a better understanding of what our purpose is and why we exist,” said U.S. Attorney Brown.
For more information on the Western District of Louisiana’s U.S. Attorney’s Office, its priorities and resources available to help the community, please visit https://www.justice.gov/usao-wdla.
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Union Financial Secretary from Franklinton Louisiana Sentenced for Stealing Union FundsRead the Press Release
NEW ORLEANS, LOUISIANA – BRIAN GERALD, age 51, a resident of Franklinton, Louisiana, was sentenced yesterday by U.S. District Judge Lance M. Africk to (5) five years of probation and (6) six months of house arrest for stealing money from a local labor union, announced United States Attorney Duane A. Evans. The Court also ordered GERALD to pay restitution in the amount of $112,594.18.
According to court records, GERALD was the Financial Secretary of United Steelworkers Local 13-189. GERALD was responsible for organizing Local 13-189’s financial records, keeping an accounting of its income, and filing IRS forms and reports. GERALD was also responsible for maintaining Local 13-189’s debit card in a safe location. From January 2015 through September 2020, GERALD used the union’s debit card to make 493 ATM cash withdrawals totaling $107,387.90 in cash and fees. GERALD also used the union’s debit card to make payments for his personal accounts for a total of $36,589.41. GERALD misappropriated a total of $143,977.31 of union funds.
U.S. Attorney Evans praised the work of the U.S. Department of Labor in investigating this matter. Assistant U. S. Attorneys Rachal Cassagne of the Narcotics Unit and Troy Bell of the General Crimes Unit are in charge of the prosecution.
Ugandan Man Sentenced to 121 Months in Federal Prison for Money Laundering ChargeRead the Press Release
DAVENPORT, IA – A Ugandan man was sentenced on Wednesday, September 20, 2023, to 121 months in prison for Conspiracy to Commit Money Laundering.
According to public court documents, Kingsley Ogbeide, 50, also known as “James Oreye,” “Emmanual Richson,” and “King,” was involved in a business email compromise (BEC) scam which defrauded a business within the Southern District of Iowa. Ogbeide worked with co-conspirators and co-defendants to trick employees of legitimate businesses to change their bank information via email. Large sums of money were subsequently wired to illegitimate bank accounts controlled by fraudsters. Ogbeide worked as a top-level conspirator arranging and communicating on which fraudulent bank accounts would receive illegally obtained funds and managed how the funds would be distributed to other members of the conspiracy. Ogbeide admitted to helping to manage fraudulent activity totaling between approximately $3.5 million and $9.5 million.
Following his prison sentence, Ogbeide was ordered to serve three years of supervised release. There is no parole in the federal system. Ogbeide was ordered to pay about $1.5 million in restitution to 16 victims.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation investigated the case.
U.S. Government Contractor Arrested on Espionage ChargesRead the Press Release
A U.S. government contractor was arrested on Aug. 24 based on espionage charges in a complaint unsealed today. Abraham Teklu Lemma, 50, a naturalized U.S. citizen of Ethiopian descent, of Silver Spring, Maryland, is charged with delivering national defense information to aid a foreign government, conspiracy to deliver national defense information to aid a foreign government, and the willful retention of national defense information.
According to the criminal complaint, between on or about Dec. 19, 2022, and Aug. 7, 2023, Lemma copied classified information from intelligence reports and deleted the classification markings from them. Lemma then removed the information, which was classified as SECRET and TOP SECRET, from secure facilities at the Department of State. This material related to a specific country and/or geographic region. Lemma accessed, copied, removed, and retained this information without authorization.
According to the charging documents, Lemma used an encrypted application to transmit classified national defense information to a foreign government official associated with a foreign country’s intelligence service. In these communications, Lemma expressed an interest and willingness to assist the foreign government official by providing information. In one communication, the foreign official stated, “[i]t’s time to continue ur support.” Lemma responded, “Roger that!” In other chats, the foreign official tasked Lemma to focus on information related to particular subjects, and Lemma responded “[a]bsolutely, I have been focusing on that all this week . . . .” As alleged in the criminal complaint, the classified national defense information Lemma transferred to the foreign official included satellite imagery and other information regarding military activities in the foreign country and region.
The two espionage charges carry a potential penalty of death or any term of years up to life in prison, and the willful retention charge carries a maximum penalty of 10 years in prison. A federal judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors.
The FBI’s Washington Field Office, the State Department’s Diplomatic Security Service, and the Justice Department’s Office of the Inspector General are investigating the case.
Assistant U.S. Attorneys Tejpal Chawla and Alexandra Hughes for the District of Columbia and Trial Attorneys Heather Schmidt and Kathryn DeMarco of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Lemma complaint Lemma affidavitTwo Shipping Container Cases Between Arizona and Federal Officials DismissedRead the Press Release
Two cases between Arizona and Federal officials involving shipping containers were voluntarily dismissed on Sept. 15. Both cases generated national media attention regarding the State of Arizona’s unauthorized installation of shipping container barriers on federal property at the international border with Mexico. In the first case, the then-governor brought a declaratory action against the U.S. Bureau of Reclamation and the U.S. Forest Service, claiming that Arizona was legally entitled to install shipping containers at the border. The United States followed with an affirmative lawsuit against various Arizona officials that sought a halt to the project, removal of the shipping containers and damages for trespass, ejectment, interference with easements and other constitutional violations on federal lands.
Immediately upon the filing of the United States’ lawsuit, the State agreed to stop the installation project and to remove all the shipping containers from federal lands. Both cases were then stayed pending further resolution between the parties. During the stay, Arizona removed all shipping containers from United States’ properties and completed extensive remediation work on National Forest lands that had been damaged by the installation and subsequent removal of the shipping containers. Arizona also paid the United States an additional $2.1 million dollars under a Collection Agreement to allow the U.S. Forest Service to complete additional remediation and revegetation work along the border.
“We worked to ensure that U.S. property rights and agency missions were respected especially since the placement of the shipping containers by the State of Arizona abutted on our international border with Mexico,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “We appreciate the collective support of U.S. Attorney Restaino and his office, the Department of the Interior and the Department of Agriculture in seeing this situation through, including remediating the land where the containers were placed.”
“Comprehensive border solutions require collaboration and common sense,” said U.S. Attorney Gary Restaino for the District of Arizona. “When Arizona unilaterally placed hundreds of shipping containers on tribal and federal land back in 2022, it made the border less safe. The containers have now been removed and the land restored. Thanks to the Department of the Interior (through the Bureau of Reclamation) for supporting the rights of the Cocopah Tribe, and to the Department of Agriculture (through the Forest Service) for its vigilance against environmental degradation.”
Because Arizona has resolved its trespass and remediated or paid to remediate the damage to federal property, the United States determined that its lawsuit was no longer necessary and voluntarily dismissed the litigation.
Senior Trial Attorneys Andrew Smith and Shaun Pettigrew of the Environment and Natural Resources Division's Natural Resources Section prosecuted the cases.
Two Drug Traffickers Sent to Prison for Decades for the Execution-Style Murder of Two MenRead the Press Release
DETROIT – Two drug traffickers were sentenced to 25 and 30 thirty years in prison for murdering two individuals over a drug debt, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Acting Special Agent in Charge Devin J. Kowalski, Federal Bureau of Investigation, Detroit Division.
Mariano Garcia, age 53, of Brownsville, Texas, was sentenced by United States District Judge Terrence G. Berg to a 25-year prison term. His co-defendant Michael Griffin, age 40, of Birmingham, Alabama, was sentenced by Judge Berg to 30 years in prison. Both men previously pleaded guilty to (1) conspiracy to possess with intent to distribute cocaine and heroin, (2) interstate travel with the intent to kill or injure where death resulted, and (3) interstate travel in aid of illegal activity where death resulted.
As part of their guilty pleas, both Garcia and Griffin admitted to engaging in a long-term drug trafficking conspiracy involving cocaine supplied by Garcia in Texas and distributed by Griffin and others in Birmingham, Alabama, and Detroit, Michigan. At his plea, Garcia admitted to encouraging Griffin to travel from Alabama to Detroit to collect a drug debt from a Detroit-based member of the conspiracy. In December 2016, Griffin and another individual came to Detroit for the purpose of killing that member of the conspiracy. After coming to the conspirator’s home, Griffin and the other individual tied up and shot to death the Detroit-based co-conspirator and another man. They used pillows to muffle the sounds of the gunshots. At his plea, Garcia, who remained in Texas, also admitted he encouraged Griffin to hurt the co-conspirator to collect the drug debt. After the murders, Griffin and Garcia returned to their drug business. Garcia and Griffin also admitted that they had distributed between 50 and 150 kilograms of cocaine during the conspiracy.
“Today’s sentences should serve as a warning to drug dealers who commit violence in our community that my office will use every resource at its disposal to bring you to justice. I am hopeful that the families of the victims will receive some measure of solace from these substantial sentences.” U.S. Attorney Ison said.
“Our hope is that today's sentencings bring a sense of relief and justice to the victims’ families, whose loved ones were murdered to further a drug distribution conspiracy,” said Devin J. Kowalski, Acting Special in Charge of the FBI’s Detroit Field Office. “The defendants' actions were indefensible, cruel, and unjust. We are grateful for our federal, state, and local partners who worked so closely to solve this case.”
The case was investigated by special agents of the Federal Bureau of Investigation, Drug Enforcement Administration, and Detroit Police Department’s Homicide Task Force. It was prosecuted by Assistant U.S. Attorneys Rajesh Prasad and Robert Moran.
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
Texas Man Pleads Guilty to Conspiring with Former ValueWise CEO Michael Mann to Defraud LendersRead the Press Release
ALBANY, NEW YORK – Derek R. Schwartz, age 54, of Coppell, Texas, pled guilty today to conspiring with former ValueWise CEO Michael T. Mann to defraud companies that loaned millions of dollars to ValueWise subsidiaries.
United States Attorney Carla B. Freedman and Alfred Watson, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Schwartz pled guilty to one count of conspiring to commit wire fraud and four counts of wire fraud.
Mann obtained millions of dollars in loans from two financing companies, located in New York and Colorado, respectively, by falsifying his companies’ receivables. Mann falsely told the financing companies that Minnesota-based UnitedHealth Group Incorporated (“UHG”) and its subsidiary OptumInsight Inc. (“Optum”) owed millions of dollars to his Clifton Park-based companies. Mann routinely created fake invoices reflecting the fictitious debt and assigned them to the financing companies as collateral for loans.
Schwartz was a high-level executive at Optum, and then began working for ValueWise in October 2013. Until about August 2016, he operated TrueHR, LLC, a ValueWise subsidiary based in Dallas, Texas. He continued to work for ValueWise until its collapse in September 2019.
Schwartz was indicted in August 2021. In pleading guilty today, he admitted that in October 2013, he and Mann asked Luke Steiner, a UHG/Optum employee whom Schwartz used to supervise at Optum, to represent to the financing companies that the fake invoices created by Mann were valid and payable by Optum. With Schwartz’s encouragement, Steiner regularly made these false verifications for six years, ending in August 2019.
Schwartz also admitted he took these other actions in furtherance of the fraudulent scheme:
- In 2014 and 2015, he asked two other UHG/Optum employees to verify false invoices that Mann submitted to one of the financing companies, identified in the indictment as “Financing Company-1.” Schwartz instructed these employees to respond to Financing Company-1’s inquiries in the same manner as Steiner.
- From 2014 through 2019, Schwartz lied directly to one of Mann’s lenders, identified in the indictment as “Financing Company-2.” Mann falsely represented to Financing Company-2 that one of his companies, Weitz & Associates, needed loans in order to pay its vendors. As part of its due diligence process, Financing Company-2 verified, with Weitz’ purported vendors, that they were receiving payments from Weitz. One such purported vendor was TrueHR, a ValueWise company operated by Schwartz. In fact, TrueHR was not a Weitz vendor, and Schwartz regularly lied to Financing Company-2 about TrueHR receiving payments from Weitz – and continued to do so even after TrueHR ceased to exist as a company.
Sentencing is scheduled for January 24, 2024, before Senior United States District Judge Lawrence E. Kahn. On each count, Schwartz faces up to 20 years in prison and up to 3 years of post-imprisonment supervised release. The Government will be seeking $12,968,505.20 in restitution. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Mann, formerly of Saratoga County, New York, pled guilty to various crimes in connection with his fraudulent scheme, and was sentenced in August 2021 to 144 months in prison. Steiner pled guilty in February 2020 to conspiring with Mann and is scheduled for sentencing on November 9.
The FBI investigated this case, and Assistant U.S. Attorneys Michael Barnett and Cyrus P.W. Rieck are prosecuting this case.
Tampa Fentanyl Dealer Sentenced to 15 Years for Leading A Drug Trafficking ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Kimball Mizelle has sentenced Ahmoi Cecil Lewis (32, Tampa) to 15 years in federal prison for conspiracy to distribute fentanyl, cocaine, and methamphetamine, and armed drug trafficking. The court also ordered Lewis to forfeit $10,000 and five firearms. Lewis had pleaded guilty on June 27, 2023.
According to court documents, from October 2020 through February 2022, Lewis oversaw a drug trafficking organization operating in Tampa. Throughout the course of the conspiracy, Lewis distributed or caused to be distributed over 400 grams of fentanyl, over 100 grams of cocaine base, and over 28 grams of cocaine. In February 2022, law enforcement officers executed a search warrant at Lewis’s home in Tampa and seized 188 grams of fentanyl, over one kilogram of cocaine, 89 grams of methamphetamine, over eight kilograms of marijuana, three pistols, two assault rifles, a high capacity drum-style magazine, and $10,000 in cash.
This case was investigated by the Drug Enforcement Administration and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. 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 www.justice.gov/OCDETF.
St. Thomas Man Sentenced to 30 Months in Prison for Firearm ChargesRead the Press Release
St. Thomas, USVI – U.S. Attorney Delia L. Smith announced today that on September 8, 2023, St. Thomas resident Nijontea Walker, 21, was sentenced by Chief District Court Judge Robert A. Malloy to 30 months imprisonment followed by 30 months supervised release for possessing a firearm with an obliterated serial number and for possessing a firearm within 1,000 feet of a school zone.
According to court documents, Walker was arrested after an April 8, 2020 incident which occurred while Virgin Islands Police Department (VIPD) officers were patrolling the Hospital Ground neighborhood in St. Thomas due to recent shootings. VIPD officers pursued a group of individuals, including Walker, after the group ran when officers approached. Walker was observed holding a black bag containing an AK-47 firearm with an obliterated serial number. The bag and firearm were later recovered after being abandoned during the pursuit.
This case was investigated by VIPD and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and prosecuted by Assistant United States Attorney Kyle Payne.
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.
St. Louis County Man Sentenced to 15 Years in Prison for Selling Fake Pain Pills Containing FentanylRead the Press Release
ST. LOUIS – U.S. District Judge John A. Ross on Thursday sentenced a man to 15 years in prison for selling the fake prescription pain pills containing fentanyl that killed a St. Charles County man last year.
Andrew Kendall Edwards, 27, of St. Louis County, pleaded guilty in May to one count of distribution of fentanyl and one count of possession with the intent to distribute fentanyl. He admitted selling the pills containing fentanyl that killed the victim on Aug. 28, 2022.
After the man was discovered dead, investigators from the St. Charles County Police Department and the St. Charles County Regional Drug Task Force found four tablets in his bedroom. Two were imitation oxycodone tablets that contained fentanyl. Investigators also found text messages between the victim and Edwards. They then used the victim’s phone, posing as the victim, to arrange the purchase of more drugs from Edwards.
On Aug. 30, 2022, Edwards was arrested at the planned meeting spot with the tablets that he’d agreed to sell. He also had a Glock .40 caliber pistol and two more tablets in a bag inside the nearby building where he worked. Some of the tablets seized at Edwards’ arrest were imitation oxycodone tablets that contained fentanyl.
Edwards then admitted in an interview with St. Charles County Regional Drug Task Force and Drug Enforcement Administration investigators that he’d sold purported prescription tablets to the victim, who was also his friend and coworker, at least ten times, including the day before his death.
In a letter to Judge Ross, the victim’s mother wrote that her son had just started a new job and was on the road to recovery. His “life was changing, he just needed more time,” she wrote. She said her son knew the risks of fentanyl, and knew it could kill him, but was reassured by Edwards in a text message that the pills were real. The victim left behind a son, who was almost two years old at the time of the victim’s death.
"The callous disregard drug traffickers have for human life is obvious when you hear about cases like this one," said Assistant Special Agent in Charge Colin Dickey, lead of Drug Enforcement Administration investigations in Eastern Missouri. "For a few dollars, this man's action took a life, someone who mattered to his family and friends. DEA’s efforts on overdose death investigations with partner agencies like the St. Charles County Regional Drug Task Force reminds drug dealers that their conduct has penalties, which include plenty of time in prison to think about the impact of their actions.”
The case was investigated by St. Charles County Regional Drug Task Force and the Drug Enforcement Administration. Special Assistant U.S. Attorney Samantha Reitz prosecuted the case.
St. Croix Man Pleads Guilty to Firearm ChargeRead the Press Release
St. Croix, USVI – United States Attorney Delia L. Smith announced that Victor Hugo Cannegieter, II, 31, pleaded guilty in U.S. District Court in St. Croix to illegal possession of a machine gun. U.S. Magistrate Judge Emile A. Henderson, III set a sentencing date for January 5, 2024, Cannegieter faces a maximum sentence of 10 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, during the evening hours of June 7, 2023, Cannegieter arrived at Castaways Restaurant, located at Estate Solitude on St. Croix, in an inebriated state. Cannegieter engaged in a verbal altercation with two men, before being asked to leave Castaways by the bartender. Later that same evening, Cannegieter returned to Castaways and engaged in a physical brawl with two women. During that brawl, Cannegieter attempted to pull a .40 caliber Glock pistol out of his waistband. The bartender wrestled the pistol from Cannegieter and kept it away from him. Virgin Islands Police Department (VIPD) officers subsequently arrived at the scene and placed Cannegieter under arrest.
Upon examination, law enforcement authorities determined that the pistol had been fitted with a “chip,” which is a part designed and intended for use in converting a firearm into a weapon capable of fully automatic fire, without manual reloading, by a single function of the trigger. The pistol was fully operable and it had been fitted with an extended magazine that had been loaded with 27 rounds of ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case with the assistance of the VIPD. Assistant U.S. Attorney Evan Rikhye is prosecuting the case.
###Schuylkill County Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Javier Guzman, age 51, of Pottsville, Schuylkill County, pleaded guilty on September 20, 2023, before U.S. District Court Judge Robert D. Mariani, to the charge of possession with intent to distribute crystal methamphetamine.
According to United States Attorney Gerard M. Karam, Guzman admitted to possessing between 50 and 200 grams of high-quality crystal methamphetamine for distribution in the Schuylkill County area in 2022. The charge stems from an investigation in which investigators made purchases of high-quality crystal methamphetamine from Guzman in March 2022 in Schuylkill County.
The charge against the defendant resulted from an investigation conducted by the Federal Bureau of Investigation and the Schuylkill County Drug Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Under federal law the charge carries a maximum sentence of up to twenty years in prison, a term of supervised release and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Round Rock Pastor Sentenced to Federal Prison for Child PornographyRead the Press Release
AUSTIN, Texas – A Georgetown man was sentenced in a federal court in Austin on Wednesday to 70 months in prison and 10 years of supervised release for an enhanced charge of possession of child pornography.
According to court documents, David Lloyd Walther, 57, knowingly searched for, downloaded, distributed and possessed child sexual abuse material, including child pornography—some of which depicted prepubescent minors—using BitTorrent, a peer-to-peer file sharing network. During a search of Walther’s home and vehicle in November 2022, two large computer hard drives were located and found to contain more than 100,000 images and more than 5,000 videos of child sexual abuse material. At the time of his arrest, Walther was the pastor of Faith Baptist Church in Round Rock.
In addition to the prison and supervised release terms, the judge also ordered Walther to pay restitution of $61,000.
“Many families in the Round Rock area placed their trust in this man when he served as a leader in faith for their community,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “I hope that those families can find comfort in knowing our law enforcement partners and justice system are committed to protecting them, ensuring that predators such as Walther cannot continue to pose a threat to innocent children.”
“This case was especially disturbing given the defendant’s position of trust in the community,” said Special Agent in Charge Oliver E. Rich, Jr. for the FBI San Antonio Division. “This sentencing sends a strong message to child predators that the FBI and our law enforcement partners will never relent in our duty to protect children from sexual abuse and exploitation wherever these crimes are present in our nation.”
The FBI San Antonio Division's Child Exploitation and Human Trafficking Task Force investigated the case with assistance from the Round Rock Police Department, the Collin County Sheriff’s Office, the Williamson County Sheriff's Office and the Williamson County Children's Advocacy Center.
Assistant U.S. Attorney Matthew Devlin prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Rochester Man Sentenced to 15 Years in Prison for Sexually Exploiting a MinorRead the Press Release
CONCORD – A Rochester man was sentenced today in federal court for sexually exploiting a minor, U.S. Attorney Jane E. Young announces.
Richard Crispin, 26, was sentenced by Chief U.S. District Court Judge Landya McCafferty to 15 years in prison and 10 years of supervised release. Crispin plead guilty to sexual exploitation of a minor on June 15, 2023
“Sexually exploiting children is a particularly heinous crime,” said U.S. Attorney Jane E. Young. “Thanks to the survivor’s courage, the defendant will no longer be able to abuse other vulnerable minors. The U.S. Attorney’s Office will continue to work tirelessly with our law enforcement partners to prevent the production of child sexual abuse material and ensure that those who produce such material are prosecuted and sentenced to long periods of incarceration.”
“Crispin abused and exploited a minor for years, creating videos documenting his abuse and soliciting her to send him even more. It takes real bravery to come forward to report an abuser, and HSI commends this survivor for speaking up. Today’s sentence ensures Crispin will be behind bars and unable do harm for a long time,” said Michael Krol, Special Agent in Charge for Homeland Security Investigations in New England.
According to documents and statements made in Court, the defendant engaged in sexual acts with a minor beginning when the minor was fourteen years old. The defendant made videos depicting some of these sexual acts, which are the subject of the federal charges. The defendant also requested that the survivor send him sexually explicit images via text message. The offense took place over an extended period of time and came to light when the survivor disclosed her contacts with the defendant to a school resource officer. The defendant has pending state charges in both New Hampshire and Maine related to the same survivor.
Homeland Security Investigations led the investigation. Valuable assistance was provided by Somersworth Police Department, Stratford County Sheriffs Office, Rochester Police Department and North Berwick, Maine Police Department. Assistant U.S. Attorneys Cam Le and Kasey Weiland prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
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Retired San Angelo Police Officer Sentenced to 35 years for Possession of Child Sexual Abuse MaterialRead the Press Release
A retired San Angelo Police Officer was sentenced to a term of 420 months imprisonment and a lifetime of supervised release for possession of child pornography, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Ricky Lynn Keeling, 62, was indicted in March 2023 and pleaded guilty in May 2023 to three counts of possession of child pornography involving a prepubescent minor. Mr. Keeling was sentenced Thursday by U.S. District Judge James Wesley Hendrix, who also ordered him to pay a $15,000 assessment for the Justice for Victim’s of Trafficking Act, and a $51,000 assessment for the Amy, Vicky, and Andy Child Pornography Victim Assistance Act.
“Crimes involving child pornography are some of the most serious that the Department of Justice prosecutes,” said U.S. Attorney Leigha Simonton. “For a former law enforcement officer to possess child pornography is more than shocking—it is despicable. Our office will not let such crimes against children happen without repercussion.”
“We swear an oath to protect and serve and the sentence imposed today will ensure the community that no matter who you are, you will be held accountable for your actions,” said HSI Dallas Special Agent in Charge Lester R. Hayes Jr. “HSI Dallas will never relent in our pursuit to protect children from predators.”
"The gravity of this situation cannot be overstated and our agency's commitment to the safety of our community remains unwavering. Crimes perpetrated against children are of the most serious in nature and cannot be tolerated. As soon as we became aware of these disturbing allegations against retired San Angelo Police Officer Rick Keeling, we immediately referred the matter to the Tom Green County Sherriff's Office and the Department of Homeland Security for investigation,” said San Angelo Police Chief Frank Carter
According to plea documents, Mr. Keeling’s roommate inadvertently discovered child pornography on Mr. Keeling’s computer. The roommate reported the discovery to law enforcement and an investigation began. Mr. Keeling admitted to officers that he searched for prepubescent material up to three times a week and had been looking at child pornography since 2005.
Homeland Security Investigations’ San Angelo Field Office and the Tom Green County Sheriff’s Office, conducted the investigation, with support from the San Angelo Police Department. Assistant U.S. Attorney Callie Woolam prosecuted the case.
Queens Physician Settles Health Care Fraud Claims for $1.3 Million and Enters into Integrity Agreement to Ensure Future ComplianceRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today a settlement agreement with Queens-based physician Arun Arora. The settlement agreement addresses allegations that Dr. Arora violated the federal False Claims Act by billing Medicare for critical care services to residents of nursing homes when, in fact, he provided only routine care.
“Our Medicare program, which provides health care services to the elderly, works only if its funds are expended properly,” stated United States Attorney Breon Peace. “When health care providers overbill the program, Medicare cannot ensure that services are going to the people who need them most.”
Mr. Peace thanked the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation for its work on this case.
Dr. Arora provided care to residents of nursing homes. That care was, for the most part, routine care, such as regular medical checkups. The Government contends that, rather than billing for his services as routine care, Dr. Arora billed Medicare for critical care services. Critical care services involve imminent life-threatening deterioration of the patient’s condition. Medicare reimburses health care providers at a higher rate for critical care services than for routine care. By billing for critical care services when he provided only routine care, as the Government contends, Dr. Arora received extra payment for care that he did not provide.
Under the terms of the agreement with the United States, Dr. Arora will pay $1.3 million for conduct that took place in the years 2019 to 2023. In addition to the payment to resolve the government’s fraud claims, Dr. Arora has entered into a separate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General. The Integrity Agreement imposes a number of obligations on Dr. Arora, all of which are meant to ensure that he complies with Medicare rules and regulations going forward.
The claims resolved by the settlement are allegations only and there has been no admission of or determination of liability.
The case is being handled by Assistant U.S. Attorney Michael Blume of the Office’s Civil Division.
Quad City Man Sentenced to 21 Months in Prison Related to EscapeRead the Press Release
DAVENPORT, IA – A Quad City man was sentenced on yesterday to 21 months in federal prison for escape.
According to public court documents, and evidence presented at sentencing, Maurice La’Von Cowan, 31, had been transferred from federal prison to the Residential Re-entry Center to serve the remainder of his federal prison sentence stemming from a conviction for being a felon in possession of a firearm. On February 18, 2023, Cowan walked out of the Residential Re-entry Center. Staff members noticed Cowan was not in his bed when conducting a head count. Surveillance footage showed Cowan leaving the center around 5:00 p.m. Cowan was arrested on May 2, 2023.
After completing his term of imprisonment, Cowan will be required to serve three years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the United States Marshals Service.
Port Charlotte Armed Career Criminal Pleads Guilty to Methamphetamine and Heroin Distribution Offenses and to Possessing A Firearm as A Convicted FelonRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Michael Edward Lindsey (47, Port Charlotte) has pleaded guilty to possessing a firearm as a convicted felon and possessing a controlled substance with the intent to distribute it. Under the Armed Career Criminal Act, Lindsey faces a minimum mandatory sentence of 15 years, and up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, Lindsey is a multi-time convicted felon for narcotics distribution and violent offenses dating back to 1996. On June 9, 2022, officers from the North Port Police Department (NPPD) conducted a traffic stop in the area of 12145 Tamiami Trail in North Port and found Lindsey in possession of a Smith & Wesson Bodyguard .380 caliber pistol loaded with five rounds of ammunition and approximately 1.6 grams of methamphetamine. As NPPD officers approached Lindsey’s vehicle, Lindsey consumed a large quantity of drugs by emptying the contents of a bag into his mouth. The 1.6 grams of methamphetamine were all that NPPD could recover after Lindsey had consumed the remainder.
On November 13, 2022, NPPD officers arrested Lindsey on an active warrant. During a search incident to his arrest, the officers found Lindsey in possession of distribution quantities of methamphetamine and heroin.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the North Port Police Department. It is being prosecuted by Assistant United States Attorneys David W.A. Chee and Samantha C. Beckman.
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.
Plainview Man Sentenced for Filing a False Tax ReturnRead the Press Release
Acting United States Attorney Susan Lehr announced that Joseph T. Pearce, II, 41, of Plainview, Nebraska, was sentenced on September 20, 2023, in federal court in Omaha, Nebraska, for filing a false tax return. United States District Judge Brian C. Buescher sentenced Pearce to four years’ probation. Judge Buescher also order Pearce to pay $200,411.33 in restitution.
Pearce owned and operated a painting and maintenance business between 2014 and 2018 in Nebraska and Texas. Pearce’s tax returns for 2014 through 2018 reported profit from the painting and maintenance business. Pearce signed each of the tax returns under penalties of perjury, declaring that he examined a copy of the tax returns and that they were true, correct, and complete. At the time Pearce made the written declaration for each tax year, Pearce knew the reported income in the tax returns for each tax year was not correct.
An investigation conducted by the Internal Revenue Service determined that for tax years 2014 through 2018, Pearce filed tax returns that reported substantially less income than had been actually paid to Pearce’s painting and maintenance business. The Internal Revenue Service’s investigation included interviews of Pearce’s clients and review of Pearce’s financial records. The Internal Revenue Service determined that Pearce’s tax returns failed to report $760,629 in income from between 2014 and 2018. Taxes owed to the Internal Revenue Service on the unreported income total $200,411.
This case was investigated by the Internal Revenue Service, Criminal Investigations.
Picayune Man Sentenced to 52 Months in Prison for Conspiracy to Possess with Intent to Distribute MethamphetamineRead the Press Release
Gulfport, Miss. – A Picayune man was sentenced to 52 months in federal prison for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Justin Paul Berry, Jr., 35, was sentenced in U.S. District Court in Gulfport.
According to court records, in 2015, an investigation began into a large-scale drug trafficking organization (DTO), located largely in Picayune, MS (Pearl River County). In 2018, Justin Paul Berry, Jr. was identified as being part of the conspiracy. Federal Agents determined that Berry was responsible for the exchange of narcotics and currency in furtherance of the large-scale drug trafficking organization.
Berry pled guilty on June 21, 2023 to conspiracy to possess with intent to distribute methamphetamine.
The case was investigated by the Drug Enforcement Administration and Homeland Security Investigations.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. 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.
Philip George Turner Sentenced to 17 Years for Distribution and Possession of Child Pornography and Felon in Possession of A FirearmRead the Press Release
KNOXVILLE, Tenn. – On September 21, 2023, Philip George Turner, 39, currently of Kingston, TN, was sentenced to 204 months by the Honorable Katherine A. Crytzer, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Knoxville.
As part of the plea agreement filed with the court, Turner waived an indictment by a Federal Grand Jury and agreed to plead guilty to an information charging him with, one count of distribution of child pornography in violation of 18 U.S.C. § 2252A(a)(1)(2); one count of possession of child pornography in violation of 18 U.S.C. § 2252A(a)(5)(B); and, one count of felon in possession of a firearm and ammunition in violation of 18 U.S.C. § 922(g)(1). Following his incarceration, Turner will be on supervised release for 20 years and will be required to register with state sex offender registries and to comply with special sex offender conditions.
According to court records, in May 2022, local law enforcement received a tip from an out of state undercover officer that Turner was distributing child pornography on an Internet site. The Federal Bureau of Investigation (FBI) became involved as the FBI was also investigating a Cybertip that asserted Turner uploaded 120 files of child pornography containing still images and videos. As the investigation progressed, law enforcement learned that Turner was on parole for convictions from Illinois.
In June 2022, law enforcement went to Turner’s home with a search warrant. Upon entering, multiple firearms were seen lying about the residence to which Turner admitted he was going to attempt to sell. The seizure yielded five pistols and ammunition, and child pornography.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; Special Agent in Charge, Joseph E. Carrico, of the FBI; and Special Agent in Charge, Marcus Watson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) made the announcement.
The criminal information was the result of an investigation by Agent Cortny Dugger and Criminal Investigator Chanel Finnell with the Tennessee Ninth Judicial District Attorney General Office-Internet Crimes Against Children’s Unit, the FBI, and ATF.
Assistant United States Attorney Jennifer Kolman represented the United States.
This case was brought as part of Project Safe Childhood (PSC), 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, PSC 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 PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Omaha Man Sentenced to 10 Years for Drug Trafficking Conspiracy and Possession of a FirearmRead the Press Release
Acting United States Attorney Susan Lehr announced that Glenn Lemar Cass, 52, of Omaha, Nebraska, was sentenced today in Omaha by United States District Judge Brian C. Buescher for Conspiracy to Distribute more than 40 grams of fentanyl and Possessing a Firearm in Furtherance of a Drug Trafficking Crime. Cass was sentenced to 120 months in prison and will also serve 5 years on supervised release. There is no parole in the federal system.
On Dec. 29, 2021, the Omaha Police Department executed a search warrant on Cass’s North Omaha residence. Officers encountered Cass in the main floor hallway and secured him in handcuffs. Officers searched the residence and found 164 grams of fentanyl, a loaded .40 caliber handgun, and drug dealing paraphernalia in Cass’s bedroom closet. In the basement, officers located 782 grams of marijuana, 8.9 grams of heroin, more than 6 grams of fentanyl and $23,411. The money was found to be drug trafficking proceeds and forfeited to the United States at sentencing.
This case was investigated by the Omaha Police Department.