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Monday 11 September 2023
Grandview Woman Pleads Guilty to $209,000 Disability Benefits FraudRead the Press Release
KANSAS CITY, Mo. – A Grandview, Mo., woman pleaded guilty in federal court today to fraudulently receiving more than $200,000 in disability benefits while operating a childcare business.
Sandra D. Mondaine, 63, pleaded guilty before U.S. Chief District Judge Beth Phillips to one count of theft of government money.
By pleading guilty today, Mondaine admitted that she received $209,309 in disability benefits over a 10-year period while she was self-employed as a childcare provider. Under the terms of today’s plea agreement, Mondaine must forfeit to the government a money judgment of $209,309.
Mondaine received Title II Disability Insurance benefits from January 2008 through December 2017. Less than a year after she was rewarded benefits, Mondaine became self-employed and filed taxes as a self-employed childcare provider. She did not report her self-employment to the Social Security Administration when she began her business.
Mondaine responded to several inquiries from the Social Security Administration in which she minimized and fraudulently represented earnings from her self-employment. Mondaine falsely claimed that her sons (who were incarcerated during a significant portion of her self-employment) were performing most of the work for her childcare business and were paid most of the profits.
Under federal statutes, Mondaine is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the Social Security Administration, Office of Inspector General.
Four Sentenced to Total of over 42 Years in Prison for 24 Hour String of Armed Robberies in IndianapolisRead the Press Release
INDIANAPOLIS- Crystal Daniels, Detavion Daniels, Brandon Brinson, and Aaron Collier have all be sentenced for their roles in a series of armed robberies that took place in Indianapolis.
Crystal Daniels, 23, was sentenced to 14 years’ imprisonment after pleading guilty to three counts of interference with commerce by robbery and two counts of brandishing a firearm in furtherance of a crime of violence. She was also ordered to pay $1,420 in restitution.
Detavion Daniels, 22, was sentenced to 15 years’ imprisonment after pleading guilty to three counts of interference with commerce by robbery and two counts of brandishing a firearm in furtherance of a crime of violence. He was also ordered to pay $1,420 in restitution.
Brandon Brinson, 25, was sentenced to 27 months’ imprisonment after pleading guilty to interference with commerce by robbery and was ordered to pay a $500 fine.
Aaron Collier, 21, was sentenced to 135 months’ imprisonment after pleading guilty to two counts of interference with commerce by robbery and brandishing a firearm in furtherance of a crime of violence and was ordered to pay $1,420 in restitution.
According to court documents, on April 21, 2021, at approximately 3:45pm Collier, C. Daniels, and D. Daniels entered the Cricket Wireless on Arlington Avenue in Indianapolis, wearing face masks, ball caps, and carrying backpacks. C. Daniels pretended to shop while D. Daniels distracted a female employee at the service counter. Collier entered the store last, walked directly to the female employee and held her at gun point while demanding her to open the register. The trio was unsuccessful in their attempt to rob the store and quickly fled in a Chevy Suburban.
Just 15 minutes after the attempted robbery at Cricket Wireless, the trio drove 4 miles north to a Dollar General, located on N. Shadeland Avenue, to commit another robbery. At approximately 4:00pm, the three robbers entered the store, Collier brandished a black semiautomatic pistol, jumped over the counter, and forced a female employee on her knees while he held her at gunpoint, demanding her to open the registers and the safe. The other two robbers took an employee to the safe behind the counter and demanded her to open it. Once she did, C. Daniels took the money and dumped it into a yellow Dollar General bag. Additionally, D. Daniels approached a male customer standing in line and robbed him of $40 cash and GMC car keys.
Later that same day, IMPD detectives and FBI agents located the getaway Suburban parked in the parking lot of the Liquor Cabinet. The trio robbed a nearby Family Dollar, using the same process as before, and leaving in the getaway vehicle. IMPD officers conducted a traffic stop on the van and searched it. Located inside the vehicle were four suspects: getaway driver, Brandon Brinson, and all three robbers. Officers also located the following items:
- a 10mm semi-automatic handgun.
- Black handgun magazine containing 15 live rounds of 10mm ammunition.
- 6 packs of Newport cigarettes taken from the Family Dollar.
- Collier’s face mask.
- 4 Swisher Sweet cigar packs taken from the Family Dollar.
- Blue PPU box of 10mm ammunition containing 5 live rounds.
- $187 in loose cash
Officers placed all four individuals under arrest and located the following cash amounts on each person:
- Brinson – $521 in cash and a black ski mask.
- Collier – $753 in cash
- C. Daniels – $497 in cash
- D. Daniels - $25 in cash
U.S. Attorney for the Southern District of Indiana, Zachary A. Myers and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office made the announcement.
“Every person deserves to feel safe where they live and work. These defendants terrorized and violently robbed innocent employees and customers,’ said U.S. Attorney for the Southern District of Indiana Zachary A. Myers. “Their violent, senseless crimes have no place in our communities, and we are safer with these individuals behind federal prison bars. I am grateful to the FBI and IMPD for ensuring that they are held accountable for their actions.”
The FBI and the Indianapolis Metropolitan Police Department investigated this case. The sentence was imposed by U.S. District Court Chief Judge, Tanya Walton Pratt. Judge Pratt also ordered that the defendants be supervised by the U.S. Probation Office following their release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Lawrence D. Hilton, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department 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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Former State Credit Union Advisor Indicted for Embezzling Money from Credit UnionRead the Press Release
KANSAS CITY, KAN. – A Kansas woman was arraigned today on federal charges in connection with a years-long scheme to steal hundreds of thousands of dollars from her employer, Muddy River Credit Union. Rita Hartman, 68, of Atchison was indicted by a federal grand jury on August 23, 2023.
According to court documents and other information presented in court, Hartman was the manager of Muddy River Credit Union (formerly Bradken Federal Credit Union) from the early 1990s through January 2021. Muddy River served the employees of the Bradken foundry located in Atchison, Kansas. In 2013, the Governor of the State of Kansas appointed Hartman to the Kansas Credit Union Council, which advises the Kansas Department of Credit Unions on issues and needs of credit unions.
As manager, Hartman had responsibility for and control over all aspects of Muddy River’s finances and books and records. From at least 2010 through December 2020, Hartman is accused of using her position to steal money from Muddy River. Hartman allegedly did so by crediting fraudulent deposits and loan payments to her or her relatives’ accounts or by stealing cash deposits, then concealing her conduct by altering Muddy River’s books and records, and falsifying information submitted to Muddy River’s regulators.
The Federal Bureau of Investigation (FBI) investigated the case.
Assistant U.S. Attorney Ryan J. Huschka is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Ithaca Postal Employee Pleads Guilty to Stealing Money OrdersRead the Press Release
SYRACUSE, NEW YORK – Stephen Perrine, age 40, of King Ferry, New York, pled guilty today in federal court in Syracuse to stealing money orders from the United States Postal Service (USPS). United States Attorney Carla B. Freedman and Special Agent in Charge Matthew Modafferi, United States Postal Service Office of Inspector General (USPS-OIG), Northeast Area Field Office, made the announcement.
In pleading guilty, Perrine admitted that while working for the USPS in Ithaca, New York, he stole ten money orders totaling $2,480, by issuing them to himself and entering fraudulent justifications in an USPS accounting system. For example, Perrine admitted that he stole and cashed a $400 money order on or about September 13, 2022, and that he documented the money order as having been issued as payment for “local transport.” Similarly, Perrine admitted that on November 15, 2022, he stole and cashed a $200 money order, which he fraudulently documented as having been issued as payment for “office supplies.” Perrine resigned his position with the USPS after he was charged criminally in this case. As part of his plea agreement, Perrine agreed to pay full restitution of $2,480 to the USPS.
The charges to which Perrine pled guilty carry a maximum sentence of 1 year in prison, a fine of up to $100,000, and a term of supervised release of up to 1 year. 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. Perrine will be sentenced on December 13, 2023, by United States Magistrate Judge Thérèse Wiley Dancks, who presides over the case.
USPS-OIG is the investigative agency, and Assistant U.S. Attorney Michael F. Perry is prosecuting the case.
Florida Woman Sentenced to More than 16 Years in Prison for Defrauding an Elderly Galesburg Woman and Others Throughout the United StatesRead the Press Release
PEORIA, Ill. – An Orlando, Florida, woman, Jasmine Annette Bradley, 37, was sentenced on September 6, 2023, to 16.5 years (198 months) for her role in a conspiracy to defraud and steal the identities of victims throughout the United States. The victims included an elderly woman from Galesburg who was suffering from dementia when Bradley stole her identity and credit.
In February 2023, Bradley had pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, two counts of mail fraud, five counts of wire fraud and two counts of aggravated identity theft in connection with the offense conduct.
At the sentencing hearing before U.S. District Judge James E. Shadid, the government presented evidence that between April 2018 and June 2019, Bradley participated in an elaborate scheme to steal the identities of individuals, obtain control of their phone numbers, and steal their mail. Using these stolen identities, Bradley and her co-conspirators rented luxury apartments, purchased utilities, rented cars, and otherwise lived a lavish lifestyle, including shopping trips and spa appointments. The people Bradley victimized were scattered across the United States and tended to be older individuals who had established a good working history and credit rating.
At Bradley’s sentencing, Judge Shadid heard from several of the victims in person. These victims discussed the damage Bradley had inflicted upon their lives and spoke about their resulting anxiety. One victim relayed a story about how Bradley stole the phone number that was connected to her terminally ill husband’s medical monitoring device and as a result it was not connected to his doctor’s office for several days. And the government explained how Bradley had exploited the Galesburg woman’s dementia in order to further her fraud and delay detection so that she could continue to spend the woman’s money.
Overall, Bradley’s scheme had at least 22 victims including three property-management companies, ten financial institutions, and nine individuals from Missouri, Ohio, Arizona, Florida, and Galesburg, Illinois. Bradley was responsible for a combined intended loss of $430,409.34.
At the hearing, Judge Shadid commented on the fact that the victims had all lived their lives in an exemplary fashion, despite personal challenges including a terminally ill spouse and other issues. He further noted that the victims had abided by a simple rule: “If it’s not yours, keep your hands off it.” The judge contrasted the lives of the victims with Bradley, whom he described as the type of person who only takes and does nothing to give back or try to make things better.
Given the severity of the offense conduct and the resulting harm to the victims and their families, Judge Shadid found that the sentencing guidelines range was not sufficient. The judge therefore imposed above-guidelines, concurrent sentences of 150 months’ imprisonment on the conspiracy, mail fraud, and wire fraud counts. Judge Shadid also imposed two consecutive 24-month sentences for the aggravated identity theft offenses, resulting in an aggregate sentence of 198 months.
The United States Postal Inspection Service investigated the case, with assistance from the Federal Bureau of Investigation, Springfield Office; the North Olmstad, Ohio, Police Department; Cape Girardeau, Missouri, Police Department; the Yuma, Arizona, Police Department; and Seminole County, Florida, Sheriff’s Office. Assistant U.S. Attorneys Douglas F. McMeyer and Paul B. Morris represented the Government in the prosecution.
Federal Grand Jury Indicts Shelbyville Woman for Wire FraudRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky returned an indictment on September 6, 2023, charging a Shelbyville woman with seven counts of wire fraud.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Robert Holman of the United States Secret Service Louisville Field Office made the announcement.
According to the indictment, between December 2019 and September 2021, Amy Hall, 37, as the Accounting Controller for a local design and construction company, stole more than $260,000 from her employer. She used access to the company’s credit card and bank account granted to her by virtue of her position as accountant to devise and execute a scheme to steal the company’s funds for her own use and benefit and for the use and benefit of others.
Hall made her initial court appearance on September 8, 2023, before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, Hall faces a maximum sentence of 140 years 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.
United States Secret Service is investigating the case.
Assistant U.S. Attorney Nicole Elver is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Indicts Buffalo Brothers on Charges of Narcotics Conspiracy and Selling FentanylRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an 11-count indictment charging Arquan Butler aka Easy, 25, and Jahaun Butler, 25, both of Buffalo, NY, with narcotics conspiracy, and distribution of crack cocaine and fentanyl. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine up to $1,000,000.
Assistant U.S. Attorney Louis A. Testani, who is handling the case, stated that according to the indictment, between May 9 and July 5, 2023, the defendants conspired with others to sell fentanyl and crack cocaine in the Buffalo and Cheektowaga, NY, areas. The investigation included controlled purchases of crack cocaine and/or fentanyl on 10 separate occasions.
Jahuan Butler appeared before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. today for a detention hearing and was released on conditions. Arquan Butler will be arraigned on September 28, 2023.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the New York State Police, under the direction of Major Brian Ratajczak, and the Amherst Police Department, under the direction of Chief Scott Chamberlin.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Federal Grand Jury Indicts Buffalo Brothers on Charges of Narcotics Conspiracy and Selling FentanylRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an 11-count indictment charging Arquan Butler aka Easy, 25, and Jahaun Butler, 25, both of Buffalo, NY, with narcotics conspiracy, and distribution of crack cocaine and fentanyl. The charges carry a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine up to $1,000,000.
Assistant U.S. Attorney Louis A. Testani, who is handling the case, stated that according to the indictment, between May 9 and July 5, 2023, the defendants conspired with others to sell fentanyl and crack cocaine in the Buffalo and Cheektowaga, NY, areas. The investigation included controlled purchases of crack cocaine and/or fentanyl on 10 separate occasions.
Jahuan Butler appeared before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. today for a detention hearing and was released on conditions. Arquan Butler will be arraigned on September 28, 2023.
The indictment is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the New York State Police, under the direction of Major Brian Ratajczak, and the Amherst Police Department, under the direction of Chief Scott Chamberlin.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Family Members of Woman Convicted of Fraud Settle Claims Arising from Pandemic Relief LoansRead the Press Release
ALBANY, NEW YORK – Several family members of an Albany woman convicted of pandemic relief fraud recently agreed to pay the Government a total of about $305,000. The civil settlements are related to the prosecution of Debra Hackstadt, of Albany, who was sentenced to 16 months in prison, on November 8, 2022, for fraudulently obtaining 32 government-backed loans meant for businesses struggling with the financial effects of the coronavirus pandemic.
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.
Two of the fraudulently obtained loans were made to Albany resident Danielle Hackstadt, Debra’s daughter. Danielle Hackstadt has agreed to pay $114,816 under the False Claims Act for fraudulently obtaining, with her mother’s assistance, a $42,500 Economic Injury Disaster Loan (EIDL), which was issued by the U.S. Small Business Administration (SBA), and a $14,908 loan under the Paycheck Protection Program (PPP), which was issued by a private financial institution and backed by the federal government.
In her July 2020 EIDL application, Danielle Hackstadt was listed as the sole proprietor of a “health services” company with gross revenue of $85,000. And in her August 2020 PPP loan application, Danielle Hackstadt was listed as the sole proprietor of a “cleaning company” with gross receipts of $82,547. She has admitted that, in July and August 2020, she was an employee of an insurance company and had no sole proprietorship. She further admitted that she knew that her mother was applying for the PPP loan and EIDL in her name; she personally received the loaned funds, knowing they came from COVID-relief programs intended to benefit struggling businesses; and she spent the loaned funds for her personal benefit.
In a separate matter, in February 2023, the U.S. Attorney’s Office filed a lawsuit seeking the civil forfeiture of a lakefront residence and property off Great Sacandaga Lake in Saratoga County, New York, alleging that a portion of the property had been purchased with pandemic relief funds that Debra Hackstadt fraudulently obtained and then transferred to family members.
In June 2023, the Government and Albany residents Gerald and Traci Hackstadt, Debra’s son and daughter-in-law, entered into a settlement agreement in which the Hackstadts agreed to pay $190,000 to satisfy the claim; payment of the $190,000 has since been made.
United States Attorney Carla Freedman stated: “Debra Hackstadt showered ill-gotten pandemic relief funds upon her family members. These settlements prove that her crimes did not pay, and that we will use every tool at our disposal to follow the money and recover ill-gotten gains. In addition to criminal prosecutions, we can file False Claims Act lawsuits – with the potential for treble damages – and asset forfeiture actions. When appropriate, we can also seek recovery from people who financially benefitted from fraud even if they did not commit fraud themselves.”
FBI Acting Special Agent in Charge Alfred Watson stated: “Debra Hackstadt deliberately took money from programs designed to help American businesses struggling financially during the pandemic and instead used it to line the pockets of her own family members. These settlements should prove the FBI is committed to working closely with our federal, state, and local partners to protect federally funded relief programs. Together, we will work diligently to ensure fraudulently obtained funds are tracked down and returned so they can be put to use to assist the millions of honest Americans who need them most.”
The FBI and the U.S. Attorney’s Office’s Asset Recovery Unit conducted the investigation that led to these settlements.
Assistant U.S. Attorney Adam J. Katz represented the United States in the Danielle Hackstadt matter, and Assistant U.S. Attorney Elizabeth Conger represented the United States in the asset forfeiture action.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Fairfax Man Pleads Guilty to Child Sexual Abuse Material ChargesRead the Press Release
ALEXANDRIA, Va. – A Fairfax man pleaded guilty today to receipt of child sexual abuse material (CSAM), receipt of obscene visual representations of the sexual abuse of children, and possession of CSAM.
According to court documents, since at least April 2018, James Andrew Whitney, 62, used an Internet‑based peer‑to‑peer file‑sharing service to seek out and download video and image files depicting minors engaged in sexually explicit conduct. Some of the images and videos depicted prepubescent minors and minors under the age of 12. Moreover, as early as April 2010, Whitney used the CSAM he downloaded to create projects in which he photoshopped prepubescent, naked minor females into photographs around his residence and narrated a sexual encounter between himself and the minor victims. Whitney also used the file‑sharing service to seek out and download obscene, computer‑generated material depicting, among other scenes, the abduction of a child from a playground and subsequent rape of that minor.
Whitney is scheduled to be sentenced on January 12, 2024. He faces a mandatory minimum of 5 years in prison and a maximum penalty of 20 years imprisonment for each charge. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
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 U.S. District Judge Patricia Tolliver Giles accepted the plea.
Special Assistant U.S. Attorney Rachel L. Rothberg and Assistant U.S. Attorney Vanessa Strobbe are prosecuting the case.
The forensic examiners of the Child Exploitation and Obscenity Section’s High Technology Investigative Unit provided significant assistance in this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
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-124.
Four Nashville Residents Charged with Unlawful Trafficking of FirearmsRead the Press Release
NASHVILLE – Arnold Marks, 25, Kamal Fakhry, 43, Mykyta Strukov, 30, and Cassetty Carver, 22, all of Nashville, Tennessee, were arrested after being charged with weapons trafficking and a conspiracy to commit weapons trafficking. Marks was also charged with numerous additional crimes related to being a previously convicted felon in possession of a firearm and unlawfully possessing a machine gun, announced United States Attorney Henry C. Leventis for the Middle District of Tennessee.
The indictment alleges that from April 2023 to August 2023, defendants were unlawfully selling firearms to previously convicted felons, and using a convenience store in Nashville operated by Fakhry as a front for selling firearms illegally.
Over the course of the months-long investigation, law enforcement recovered thirty-four firearms that the defendants were attempting to unlawfully sell to convicted felons and other individuals who were prohibited by state and federal law from possessing firearms. Federal agents also recovered two machine guns that Marks intended to sell to someone that he knew was a previously convicted felon. Marks himself is a previously convicted felon for committing attempted especially aggravated robbery in 2017. Marks was on probation throughout the course of the conspiracy alleged in the indictment.
Last week, federal, state, and local law enforcement officers searched seven locations throughout Nashville and arrested all of the defendants. During these searches, law enforcement recovered 45 additional firearms, including a short-barreled shotgun and short-barreled rifle that were illegally modified, thousands of rounds of ammunition, approximately sixteen pounds of marijuana, and other suspected controlled substances that will undergo laboratory testing.
“Illegal gun trafficking is fueling the violent crime taking place in communities throughout Middle Tennessee,” said United States Attorney Henry C. Leventis. “We will continue to focus our efforts on preventing criminals from gaining access to guns and holding gun traffickers accountable.”
This case is being prosecuted under the new criminal provisions of the Bipartisan Safer Communities Act, which Congress enacted and the President signed in June 2022. The Act is the first federal statute specifically designed to target the unlawful trafficking and straw-purchasing of firearms.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Metro Nashville Police Department, and the Tennessee Highway Patrol. Assistant U.S. Attorney Josh Kurtzman is prosecuting the case.
An indictment is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Deputy Attorney General Lisa O. Monaco Statement on the 22nd Anniversary of the Terrorist Attacks of Sept. 11, 2001Read the Press Release
The Justice Department issued the following statement from Deputy Attorney General Lisa O. Monaco on the 22nd anniversary of the terrorist attacks of September 11, 2001:
“Twenty two years ago, we lost almost 3,000 of our fellow Americans in what remains the deadliest terrorist attack in our nation’s history. In the years since, the men and women of the Justice Department have worked tirelessly to prevent terrorist attacks before they happen and hold accountable those who engage in violent extremism. The threats our country faces continue to evolve but our commitment to protecting the American people will never waver.”
Colorado Psychiatry Practice and Owner Agree to Pay $1.9 Million to Settle Allegations of Fraudulent BillingRead the Press Release
DENVER—The United States Attorney’s Office for the District of Colorado announced that Mile High Psychiatry LLC and its owner, Michael K. Chism, II, have agreed to pay $1.9 million to resolve allegations that they violated the False Claims Act by knowingly double-billing time in order to unlawfully obtain increased payments from Medicare and Medicaid.
Mile High Psychiatry is a Colorado company located in Aurora that provides telepsychiatry services throughout Colorado. The United States alleged that from 2017 to 2021, Mile High Psychiatry and Chism submitted inflated bills to Medicare and Medicaid seeking payment both for evaluation and management services and for psychotherapy services, provided during the same patient visit. The rules for Medicare and Medicaid are clear that these services must be separately identifiable, and time spent providing one service cannot be double counted in billing for time spent providing the other service. The United States alleged that Mile High Psychiatry and Chism knowingly disregarded this rule and improperly double-counted time for these separate services to unlawfully obtain increased reimbursement for thousands of patient visits.
The allegations were brought to the federal government’s attention by a whistleblower through a False Claims Act action. The qui tam or whistleblower provisions of the False Claims Act allow a private party to file an action on behalf of the United States and receive a portion of the recovery. The whistleblower will receive approximately $325,000 as her share of the settlement.
“We will forcefully go after providers who unlawfully bill Medicare and Medicaid. These programs provide vital services for our community, and we will not allow providers to abuse the system or waste taxpayer dollars,” said U.S. Attorney Cole Finegan. “This case shows the power of whistleblowers to identify and stop fraud. The law permits generous rewards to whistleblowers who reveal wrongdoing by coming forward with valuable information.”
“We expect health care providers who participate in federal health care programs to submit only appropriate claims. When providers do overbill Medicare and Medicaid, they threaten the integrity of these safety net programs,” said Special Agent in Charge Curt L. Muller with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “In coordination with fellow law enforcement agencies, HHS-OIG will continue to tirelessly investigate and address allegations involving inappropriate billing.”
The claims against Mile High Psychiatry and Chism are allegations, and in agreeing to settle this matter, they did not admit to any liability.
This investigation was the result of a coordinated effort by the U.S. Attorney’s Office for the District of Colorado; HHS-OIG; and the Colorado Attorney General’s Medicaid Fraud Control Unit. The settlement was handled by Assistant United States Attorney David Moskowitz.
Case number: 21-cv-00393
Chinese National Admits to Trafficking Counterfeit Gift Cards to BellevilleRead the Press Release
EAST ST. LOUIS, Ill. – A woman originally from China admitted involvement in counterfeit gift card scheme directed at Target shoppers across the Midwest, after she pled guilty to the federal crime in a U.S. District courtroom in East St. Louis on Thursday.
Hongying Wang, 53, originally of Hunan Province, China, admitted guilt to using and trafficking in a counterfeit access device. For the charge, Wang faces a statutory maximum of ten years imprisonment and a fine of up to $250,000.
“Protecting consumers from fraud is a familiar battle, but individuals deliberately placing fake gift cards onto sales racks with the intention of stealing the funds from patrons is a new low, and I applaud the law enforcement officials who are investigating this case,” said U.S. Attorney Rachelle Aud Crowe.
“Fraud is often mistaken for a victimless crime but when individuals like Wang commit these types of crimes, they are most certainly victimizing consumers and businesses,” said Special Agent in Charge of the HSI Chicago Area of Operations Sean Fitzgerald. “HSI works daily to protect our community from these individuals by partnering with our local and federal partners to not only keep these counterfeit products out of the hands of unsuspecting consumers, but to also hold accountable those who attempt to profit from scamming the public.”
"The Illinois State Police is committed to stopping trafficking, whether it is trafficking in guns, drugs, or in this case - counterfeit goods," said Illinois State Police Director Brendan F. Kelly.
According to court documents, the scheme involved individuals placing altered gift cards on the sales racks at Target while retaining the access numbers. Once a gift card was loaded with money by an unsuspecting patron, the fraudsters would have the codes needed to steal the funds.
In January 2023, a Target security officer observed Wang and a co-defendant placing gift cards onto the racks in the Belleville store for customers to purchase. Upon further review, the gift cards were altered with the codes scratched off and covered by stickers to appear untouched.
In addition to Belleville, the following Target locations across the Midwest were knowingly affected by the scheme: Albuquerque, New Mexico; Norman, Oklahoma; Edmond, Oklahoma; Liberty, Missouri; Independence, Missouri; St. Peters, Missouri; Town and Country, Missouri; and Brentwood, Missouri.
If you believe you are a victim, contact the U.S. Attorney’s Office by emailing: [email protected]. Please provide your full name, mailing address, telephone number, and email address.
Wang admitted to possessing 6,100 fake gift cards with intent to place on the shelves.
Guangwei Gao, also of China, was named and charged in the indictment with one count of using and trafficking in a counterfeit access device.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
Wang’s sentencing is set for 10:30 a.m. on Jan. 22, 2024, at the federal courthouse in East St. Louis.
Homeland Security Investigations (HSI) and the Illinois State Police (ISP) are leading the investigation, and Assistant U.S. Attorney Peter T. Reed is prosecuting the case.
Cherokee County Resident Pleads Guilty to Federal Firearm ChargeRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Cairl Glenn Hayes, Jr., age 48, of Hulbert, Oklahoma, pleaded guilty to one count of felon in possession of a firearm and ammunition.
During the plea hearing, Hayes, Jr. admitted to having previously been convicted of a crime punishable by imprisonment for a term exceeding one year, and to possessing a firearm and ammunition despite knowing he was prohibited from doing so.
The charges arose from an investigation by the Cherokee County Sheriff’s and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Hayes, Jr. will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Richard Lorenz represented the United States.
Canadian Man Accused of Sleight-of-Hand Theft in Missouri, Illinois, ElsewhereRead the Press Release
ST. LOUIS – A man from Canada has been indicted in U.S. District Court in St. Louis and accused of stealing more than $64,000 in cash from Walmart stores across the country using sleight-of-hand.
Mohsen Akbari, 37, was indicted August 16 on one count of wire fraud and one count of interstate transportation of stolen property. He was arrested on September 5 and pleaded not guilty to the charges Monday.
The indictment says Akbari entered the United States on March 1, 2023 from South Korea on a visitor visa. Akbari then traveled across the country, entered various retail stores and used sleight-of-hand to steal cash, the indictment says. After making a small purchase, Akbari would claim that he and his family collect Unites States currency, typically $100 bills, the indictment says. Akbari would ask the cashier to show him the bills in the cash register so he could examine them, and then surreptitiously place some of the bills into his sleeve or pocket, the indictment says.
The indictment accuses Akbari of stealing about $33,700 from 30 different Walmart stores in nine states from March 23 to June 8, 2023. The indictment says Akbari then stole a total of $2,420 from a Walmart in St. Peters, Missouri on June 12, 2023, $6,900 from a Granite City, Ill. store on June 13, $420 from an O’Fallon, Missouri store on June 14 and $900 from a store in Warrenton, Missouri the same day. He stole $580 from a Walmart in Eureka, Missouri and $5,100 from an Arnold, Missouri Walmart on June 15, the indictment says. From June 20 to July 18, Akbari stole $13,992 from seven different Walmart stores in Illinois, Indiana, Virginia and Maryland.
Akbari would deposit the money in a United States bank account he opened and then wire funds to his bank accounts in Canada, the indictment says.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The wire fraud charge carries a potential penalty of 20 years in prison, a $250,000 fine or both. The interstate transportation of stolen property charge is punishable by up to 10 years in prison and the same fine.
Homeland Security Investigations, the Eureka Police Department and the Arnold Police Department investigated the case. Assistant U.S. Attorney Kyle Bateman is prosecuting the case.
Cabell County Man Pleads Guilty to Straw Firearm PurchaseRead the Press Release
HUNTINGTON, W.Va. – Haskell Cornell, 44, of Barboursville, pleaded guilty today to making false statements in acquisition of firearms.
According to court documents and statements made in court, on January 14, 2022, Cornell purchased a Century CAHG2797-N 7.62x39mm semi-automatic firearm, also known as a “Micro Draco,” with a high-capacity magazine from a Huntington business. Cornell admitted that he falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473 that he was the true purchaser of the firearm. Cornell knew he was buying the firearm for two individuals who sent him to the business and provided him with the money for the purchase. Cornell further admitted that the two individuals provided him with controlled substances in exchange for purchasing the firearms.
Cornell bought additional firearms for the two individuals, who sent him into the same Huntington business and provided the money for each purchase. Cornell bought a Ruger-5.7, 5.7x28mm semi-automatic pistol on September 18, 2021, a Glock G21 Gen4 semi-automatic pistol on November 27, 2021, and a Glock G19X 9mm semi-automatic pistol om December 10, 2021, all for the two individuals. Cornell falsely certified on the ATF Form 4473 for these purchases that he was the true buyer of the firearms when he knew he was buying them for someone else.
Cornell is scheduled to be sentenced on December 18, 2023, and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Owen Reynolds 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-60.
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Sunday 10 September 2023
California Man Convicted of Drug Trafficking ChargesRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a jury has convicted Victor Alfonso Leon-Pacheco, age 33, of Bakersfield, California, of Conspiracy to Distribute (fentanyl), Conspiracy to Distribute (methamphetamine), and Use of a Communications Facility to Facilitate a Drug Trafficking Crime, following a three-day jury trial in federal district court in Rapid City, South Dakota. The verdict was returned on September 7, 2023. U.S. District Judge Karen E. Schreier presided over the trial.
The charges carry a maximum penalty of life in custody and/or a $10,000,000 fine, five years of supervised release, and a $300 special assessment to the Federal Crime Victims Fund.
Leon-Pacheco was indicted by a federal grand jury in June of 2022. Since 2016, Leon-Pacheco was in custody in Oklahoma. He obtained a contraband cell phone and used the phone to operate a drug trafficking organization across the United States. Leon-Pacheco arranged for family and friends in California to send packages of drugs to various places, including western South Dakota, through the US Postal Service. Those people also received money wire transfers and cash on behalf of the defendant. The methamphetamine and fentanyl were then further distributed by people in the area. Law enforcement was able to introduce an undercover agent, who communicated with the defendant by an encrypted application over the course of several months. The defendant sent approximately 6,000 fentanyl pills and 10 pounds of methamphetamine to law enforcement. During a search of his cell by Oklahoma officials, the contraband phone was located. A co-conspirator, Eduardo Acosta, has already pleaded guilty and was sentenced to 36 months custody.
This case was investigated by the South Dakota Division of Criminal Investigation, U.S. Postal Inspection Service, Drug Enforcement Administration, and the Oklahoma Department of Corrections. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
A presentence investigation was ordered, and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service.
Saturday 9 September 2023
Omaha Man Sentenced to 90 Months for Possessing Child PornographyRead the Press Release
Acting United States Attorney Susan Lehr announced that Alberto Mejia, 35, of Omaha, Nebraska, was sentenced today in federal court in Omaha by Chief United States District Judge Robert F. Rossiter, Jr. to 90 months’ imprisonment for possession of child pornography. There is no parole in the federal system. After his release from prison, Mejia will begin a five-year term of supervised release. Chief Judge Rossiter ordered Mejia to pay restitution in the amount of $6,000.
On May 17, 2022, law enforcement executed a search warrant at Mejia’s Omaha residence in relation to an ongoing assault investigation. The search warrant allowed for the seizure of digital devices from the residence and searching of the digital devices for evidence related to child pornography. During execution of the search warrant, several digital devices were seized from the residence, including Mejia’s cell phone.
On Mejia’s cell phone, law enforcement located numerous videos and images of minors under the age of 12 engaged in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Bellevue Police Department.
Friday 8 September 2023
YouTuber and Auto Key Card Manufacturer Sentenced to Five Years in Prison for Transferring Unregistered Machinegun Conversion DevicesRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Kristopher Justinboyer Ervin (43, Orange Park) to five years and eight months in federal prison and Matthew Raymond Hoover (39, Wisconsin) to five years in federal prison for conspiring to transfer and transferring unregistered machinegun conversion devices. Ervin additionally was sentenced for structuring cash withdrawals from his bank account consisting of proceeds of the sale of the devices. The court also ordered Ervin to forfeit $68,000, representing the amount of funds involved in the structuring offense. Ervin and Hoover were found guilty by a federal jury on April 21, 2023.
According to court documents, in January 2021, Ervin’s bank contacted the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to report that employees believed that Ervin was trafficking in machinegun conversion devices. Subsequent investigation revealed that Ervin was running an online business selling machinegun conversion devices, known as lightning links, etched into metal cards, which he referred to as Auto Key Cards. Ervin described the Auto Key Card as a “pen holder,” a “novelty,” and a “political sculpture.”
In February 2021, federal agents from ATF and the U.S. Postal Inspection Service (USPIS) surveilled Ervin and observed him dropping off dozens of packages at an Orange Park post office, each of which was determined to contain unregistered machinegun conversion devices. A lightning link can be dropped into an otherwise legal AR-15 type firearm and convert it into a fully automatic machinegun.
ATF examined the Auto Key Cards, and a firearms enforcement officer was able to remove the pieces of a lightning link from an Auto Key Card using a common Dremel rotary tool in about 40 minutes. When the firearms enforcement officer placed the two pieces of the lightning link into an AR-15 type firearm, it converted the semi-automatic firearm to be fully automatic – that is, a machinegun.
Hoover operated a YouTube channel called CRS Firearms on which he advertised Auto Key Cards. Hoover stated that his viewers could cut a lightning link out of the Auto Key Card, “drop it in your receiver, scratch your full auto itch, throw it away when you’re done” and “no one’s the wiser.”
Hoover’s videos advertising the Auto Key Card led to a substantial increase in Ervin’s sales. Ervin sold more than 2,000 Auto Key Cards in only a few months. Multiple purchasers of the Auto Key Card testified at trial that they had learned about it from Hoover’s videos and purchased the Auto Key Card intending to use it to convert their AR-15 type weapons into machineguns. Ervin compensated Hoover for his advertisements by sending cash through the mail and, on one occasion, a Louis Vuitton purse.
In March 2021, federal agents executed a search warrant at Ervin’s home and recovered Auto Key Cards containing etchings for more than 1,500 lightning links. In total, the evidence showed that the conspiracy involved at least 6,600 individual lightning links.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, and the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorneys Laura Cofer Taylor and David B. Mesrobian. The asset forfeiture is being handled by Assistant United States Attorney Mai Tran.
“Investigating this case required dedication and tenacity on behalf of ATF’s Jacksonville Field Office and our partner agencies on this matter—the U.S. Postal Inspection Service, Internal Revenue Service and the U.S. Attorney’s Office,” said ATF Tampa Field Division Special Agent in Charge Kirk Howard, whose agency led the investigation. “Our work was necessary to prove the true nature of the Auto Key Cards being sold by Ervin and Hoover and disrupt their audacious scheme to circumvent federal firearms laws.”
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.
Anyone in possession of an Auto Key Card should contact his or her nearest ATF office or call 1-800-ATF-GUNS and make arrangements to surrender the device to ATF so that it can be destroyed.
Wilmington Blood Gang Member Sentenced to Eight Years for Gang Related ShootingRead the Press Release
WILMINGTON, N.C. – A Wilmington man was sentenced today to 96 months in federal prison for possession of a firearm by a convicted felon. On June 7, 2023, Quajohn Anthony Crews, age 21, pled guilty to the charge.
According to court documents and other information presented in court, on October 12, 2022, members of the Wilmington Police Department responded to two almost simultaneous ShotSpotter notifications in a community known by law enforcement to be associated with Gangster Disciple street gang activity. Upon arrival, officers located 12 spent shell casings and several residences that were damaged by gunfire. One of the residences that suffered damage was occupied by a woman and her children at the time of the shooting and officers located a projectile on the floor of an upstairs bedroom. Law enforcement was able to identify a red four door Ford sedan as a suspect vehicle involved in the shooting.
The next day, on October 13, 2022, members of the Mobile Field Force, a joint task force comprised of officers with the Wilmington Police Department and deputies with the New Hanover County Sheriff’s Office, located the suspect vehicle traveling near the Hillcrest public housing community and determined it was reported stolen on October 1, 2022. Officers got behind the vehicle and attempted to initiate a stop of the vehicle, but the vehicle fled. While officers were in pursuit of the vehicle, they observed a handgun being thrown from the passenger side of the vehicle. After the vehicle stopped, Crews jumped out of the back passenger window and fled on foot, but he was quickly apprehended and placed under arrest. Officers went to the area where the handgun was thrown from the vehicle and located a black Ruger semiautomatic handgun that had been reported stolen.
Following his arrest, Crews was brought to the Wilmington Police Department and interviewed by detectives. During his interview, Crews admitted to being a Blood street gang member and acknowledged there was an ongoing dispute between members of the Blood and Gangster Disciple gangs. He also admitted to traveling to the Creekwood housing community with others on October 12, 2022, and participating in the shooting to “send a message” and retaliate for another shooting that he believed to have been carried out by a Gangster Disciple. Crews also admitted to possessing the Ruger pistol that was thrown from the vehicle and admitted to firing the pistol on October 12, 2022.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Wilmington Police Department Gun Crimes Task Force, the Wilmington Police Department, and the New Hanover County Sheriff’s Office investigated the case and Special Assistant United States Attorney William Van Trigt prosecuted the case.
Special Assistant United States Attorney William Van Trigt represents the government. Van Trigt is a prosecutor with the New Hanover County District Attorney’s Office assigned to the United States Attorney’s Office to prosecute federal violent crimes and other criminal matters. This has been made possible by a grant funded by New Hanover County.
The conviction is a result of the ongoing Violent Crime Action Plan (VCAP) initiative which is collaborative effort with local, state, and federal law enforcement agencies, working with the community, to identify and address the most significant drivers of violent crime. VCAP involves focused and strategic enforcement, and interagency coordination and intelligence-led policing.
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. 7:23-cr-00009-FL-001.
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Wheeling businessman charged with wire fraudRead the Press Release
WHEELING, WEST VIRGINIA – Jeffrey James Morris, age 36, of Wheeling, West Virginia, was charged today with wire fraud.
According to a federal criminal complaint, Morris is charged with fraudulently inducing an individual to provide him with funds to renovate the Scottish Rite Cathedral, a building located at the corner of Fourteenth and Byron Streets in East Wheeling. It is alleged that Morris, who is the managing member and majority owner of Roxby Development, LLC, caused an investor to provide him with $350,000 to rehabilitate the Cathedral but instead used the funds for other purposes. It is further alleged that Morris misrepresented work performed upon the Cathedral, the status of the historic tax credits, and the amount of rental income from a purported tenant.
The principal purpose of Roxby Development, LLC, was to acquire and develop real estate in the region, to include the Cathedral, the McClure House Hotel, and the Mount Carmel Monastery. The Roxby companies received a total of $6.9 million dollars from approximately twenty investors between October 2019 until July 2022.
“Jeffrey Morris made misrepresentations to people in Wheeling, West Virginia, and throughout the country in order to fund a fraudulent scheme,” said United States Attorney William Ihlenfeld. “His arrest today brings an end to a ruse in which innocent investors were tricked into providing him with millions of dollars.”
According to Ihlenfeld, additional charges will be filed at a later date. Today’s charge and arrest were necessitated by Morris’s plan to travel outside of the United States next week. Morris appeared in federal court this afternoon where he surrendered his passport and then was released under terms and conditions imposed by the court.
U.S. Attorney Ihlenfeld and Assistant U.S. Attorney Jarod Douglas are prosecuting the case on behalf of the government.
The matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-CI.
Morris is presumed innocent unless and until proven guilty.
West Virginia man sentenced for federal firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jessie Ross Duke, age 36, of Fairmont, West Virginia, was sentenced today to 10 years in federal prison for theft from a federal firearms licensee.
According to court documents and statements made in court, Duke broke into a licensed firearms dealer in Fairmont, stealing multiple long guns and handguns. Of the 13 firearms stolen, six were recovered nearby shortly after the burglary. Duke had previously stolen firearms from a licensed dealer in South Carolina and committed several other break-ins and robberies.
Assistant U.S. Attorney Sarah Wagner prosecuted the case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Marion County Sheriff’s Office investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
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Washington, D.C. Man Sentenced to over Four Years in Federal Prison for Two Separate Fraud SchemesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Dion Rashaan Foxworth, age 42, of Washington, D.C., to 51 months in federal prison, followed by five years of supervised release, for wire fraud related to an investment fraud scheme and bank fraud related to a fraudulent Paycheck Protection Program (“PPP”) loan. Judge Chuang also ordered Foxworth to pay restitution of $882,908.66.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, from November 2016 through at least August 2020, Foxworth solicited and received at least $863,901 from investors to invest in foreign currency exchange (“FOREX”). Foxworth admitted that instead of investing the funds in FOREX, as represented to investors, Foxworth converted the funds to his personal use, including credit card expenses, travel expenses, and rent. Foxworth caused losses to at least 25 investors totaling at least $832,408.66.
In addition, Foxworth admitting that he fraudulently obtained a PPP loan, which was part of the assistance authorized to assist small businesses with job retention and other expensed during the COVID-19 pandemic. On February 19, 2021, Foxworth applied for a PPP loan for his company, inflating the company’s average monthly payroll and providing a false 2019 Form 1040 Schedule C showing profits and losses for the business. In fact, Foxworth did not file a tax return for the company in 2019. As a result of his false statements, Foxworth obtained a PPP loan of $50,000. Instead of using the funds for permissible expenses, such as payroll costs and operational expenses, Foxworth used the PPP funds for daily living and travel expenses while he was abroad in South.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys G. Michael Morgan, Jr., and Coreen Mao, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Walnut Grove Man Pleads Guilty in Drug Trafficking CaseRead the Press Release
Jackson, Miss. – A Walnut Grove man pled guilty to possession with intent to distribute methamphetamine on the Choctaw Indian Reservation, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
Roger Devonta Stokes, 40, pled guilty on September 7, 2023, in U.S. District Court in Jackson.
According to court documents, tribal and federal investigators conducted a controlled purchase of methamphetamine from Stokes in the Pearl River Community of the Choctaw Indian Reservation. In June of 2023, a federal grand jury indicted Stokes in a two-count indictment involving the possession and distribution of methamphetamine on the Choctaw Indian Reservation. Stokes entered a plea of guilty to count two of the indictment, which charged possession with the intent to distribute methamphetamine. As stated in Court, Stokes admitted his role in the offense.
Stokes will be sentenced on December 12, 2023, and faces a penalty of not less than five years and a maximum of 40 years in prison and a $5 million fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Choctaw Police Department of the Mississippi Band of Choctaw Indians, the U.S. Department of Interior Bureau of Indian Affairs, and the Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorney Kevin J. Payne and Special Assistant United States Attorney Brian K. Burns.
U.S. Attorney’s Office for the District of Alaska Celebrates Funding Awarded for Legal Services, Improved Court Responses to Domestic, Sexual ViolenceRead the Press Release
ANCHORAGE, Alaska – The U.S. Attorney’s Office for the District of Alaska is proud to announce that the Department of Justice’s Office on Violence Against Women (OVW) awarded $400,000 to an Alaska organization to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence and stalking.
OVW awarded $400,000 under the Expanding Legal Services Initiative (ELSI) to H.O.P.E. – Helping Ourselves Prevent Emergencies, a victim support and advocacy organization in Craig, Alaska. ELSI, which operates under the Legal Assistance for Victims (LAV) Program, supports developing new legal services programs.
“The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault in Alaska, especially in our rural Alaska communities where women and girls are experiencing violence at a high rate,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The announcement of ELSI funding for H.O.P.E. is another step in our efforts to support survivors and families impacted by violence in all corners of our state.”
“The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system's approach to supporting families affected by violence," said OVW Director Rosemarie Hidalgo. "These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety.”
OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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U.S. Attorney’s Office for Western District of Washington celebrates funding awarded for legal services and improved court responses for domestic and sexual violenceRead the Press Release
The U.S. Attorney’s Office for the Western District of Washington is proud to announce that the Department of Justice Office on Violence Against Women (OVW) awarded $1.3 million to two programs in Western Washington to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking.
- OVW awarded $750,000 under the Legal Assistance for Victims (LAV) Program to the YMCA of Clark County, Washington. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking.
- OVW awarded $591,457 under the Justice for Families (JFF) Program to the Coalition for ending Gender Based Violence. The JFF Program aims to improve the capacity of communities and courts to respond to families impacted by violence.
“Both of these programs provide crucial services in Western Washington to survivors of domestic violence and sexual assault,” said Acting U.S. Attorney Tessa M. Gorman. “The YMCA of Clark County is a leader in Southwest Washington on programs and services for survivors. In the Seattle area, the Coalition Ending Gender Based Violence has a number of projects and tools to assist survivors with housing, metal health and access to justice. These grants are highly competitive, and it speaks to the quality of these programs that they have been chosen for DOJ funding.”
“The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system's approach to supporting families affected by violence," stated OVW Director Rosemarie Hidalgo. "These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety.”
You can learn more about each of these Washington State Organizations here: https://ywcaclarkcounty.org/ and here https://endgv.org/.
coalition_grant.pdf ymca_clark_co_grant.pdf###
OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw
U.S. Attorney’s Office for the District of Vermont Celebrates Funding Awarded to Combat Domestic and Sexual ViolenceRead the Press Release
Burlington, Vermont – The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault. These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety. The U.S. Attorney’s Office for the District of Vermont is proud to announce that the Department of Justice’s Office on Violence Against Women (OVW) awarded $1,350,000 to Vermont organizations that provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking.
OVW awarded $750,000 under the Legal Assistance for Victims (LAV) Program to Vermont Network Against Domestic Violence and Sexual Assault, Inc. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking.
OVW awarded $600,000 under the Justice for Families (JFF) Program to Champlain Valley Office of Economic Opportunity, Inc. The JFF Program aims to improve the capacity of communities and courts to respond to families impacted by violence.
U.S. Attorney Nikolas P. Kerest commented: “Domestic violence is destructive to families and communities and cannot be tolerated. The OVW grants announced today serve to bolster important non-prosecutorial tools to combat domestic violence in Vermont. In addition, this office, working with our partners in law enforcement, will continue to use federal statutes to hold domestic abusers accountable.”
“The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system’s approach to supporting families affected by violence,” stated OVW Director Rosemarie Hidalgo. “These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety.”
OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
U.S. Attorney’s Office Hosts Event for United Against Hate InitiativeRead the Press Release
ANCHORAGE, Alaska – The U.S. Attorney’s Office for the District of Alaska is partnering with Federal, State and local law enforcement to deliver a series of community events designed to educate the public about hate crimes, hate incidents and discrimination.
The first outreach event was held in Anchorage on Sept. 7, 2023. It focused on building relationships with organizations and local leaders who interact with the LGBTQ2SIA+ community in Alaska. The events are part of the U.S. Justice Department’s “United Against Hate” initiative.
United Against Hate is a nationwide initiative focused on convening local forums that connect community groups to Federal, State and local law enforcement to increase community understanding and reporting of hate crimes; build trust between law enforcement and communities; and create and strengthen alliances between law enforcement and other government partners and community groups to combat unlawful acts of hate. The program was launched in September 2022.
“The United Against Hate initiative serves as an avenue to protect our communities, share methods for reporting, encourage reporting of hateful acts, and educate community leaders and members on laws surrounding hate crimes and discrimination,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “We were honored to share the stage with leaders and first responders yesterday as we discussed this important topic. The conversations had at the recent event are a crucial step in combatting acts of hate in the LGBTQ2SIA+ community and continuing to build important relationships between law enforcement and communities in Alaska.”
Yesterday’s event featured a joint presentation from Federal, State and local law enforcement officials and prosecutors. An official from the U.S. Justice Department’s Community Relations Service was in attendance as well. The presentation included information regarding the differences between hate crimes and hate incidents, anti-discrimination laws and the importance of reporting acts of hate to law enforcement. Participants were invited to share views on how law enforcement can best support LGBTQ2SIA+ community members who experience a hate crime or incident.
The event also included a panel of Federal, State and local law enforcement personnel. Participants in the panel included:
- U.S. Attorney Tucker
- Supervisory Special Agent Andy Smith, FBI Anchorage White Collar Squad Supervisor
- Jenna Gruenstein, Alaska Department of Law, Chief Assistant Attorney General
- Captain Tony Wegrzyn, Alaska State Troopers
- Deputy Chief Sean Case, Anchorage Police Department
The U.S. Attorney’s Office will host additional events as part of the United Against Hate initiative, and future events will focus on communicating with different communities across Alaska. These events will encourage further collaboration, support hate crime prevention efforts and encourage the reporting of hate crimes and incidents.
If you are interested in holding an event for a specific community in Alaska, send an email to [email protected].
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U.S. Attorney’s Office Celebrates Funding Awarded for Legal Services and Improved Court Responses to Domestic and Sexual ViolenceRead the Press Release
GRAND RAPIDS, Mich. – The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault. These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety. The U.S. Attorney’s Office for the Western District of Michigan is proud to announce that the Department of Justice Office on Violence Against Women (OVW) awarded $1.783 million to statewide and local agencies in the district to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking.
- OVW awarded $600,000 under the Legal Assistance for Victims (LAV) Program to the Michigan Coalition to End Domestic and Sexual Violence. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking.
- OVW awarded $1.183 million under the Justice for Families (JFF) Program, which includes $583,000 to the Michigan Department of Health and Human Services and $600,000 to the Child and Family Services of Northwest Michigan. The JFF Program aims to improve the capacity of communities and courts to respond to families impacted by violence.
“I am pleased to announce that these two organizations in the Western District of Michigan have been awarded funding from the Office on Violence Against Women,” said U.S. Attorney Mark Totten. “Protecting the victims of gender-based violence and discrimination is a critical part of our mission. This funding will help our statewide and local partners and the justice system continue to support survivors of sexual assault, domestic violence, dating violence, and stalking.”
“The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system's approach to supporting families affected by violence," stated OVW Director Rosemarie Hidalgo. "These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety.”
Following are several cases prosecuted by the U.S. Attorney’s Office for the Western District concerning gender-based discrimination Muskegon Man Sentenced To 15 Years In Prison For Stalking His Ex-Wife And Possessing Firearms and U.S. Attorney Announced Justice Department Settlement In Sexual Harassment Lawsuit Against Michigan Landlord.
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OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
U.S. Attorney's Office for District of South Carolina Celebrates Funding Awarded for Legal Services and Improved Court Responses to Domestic and Sexual ViolenceRead the Press Release
COLUMBIA, SOUTH CAROLINA -- The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault. These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety. The U.S. Attorney’s Office for the District of South Carolina is proud to announce that the Department of Justice Office on Violence Against Women (OVW) awarded $1,500,000 to South Carolina to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking.
OVW awarded $750,000 to the South Carolina Coalition Against Domestic Violence and Sexual Assault (SCCADVASA) and $750,000 to the South Carolina Victim Assistance Network (SCVAN) under the Legal Assistance for Victims (LAV) Program. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking.
“These grants reflect our commitment to making South Carolina a more difficult place for violent actors to operate and a safer place for survivors,” said U.S. Attorney Adair F. Boroughs. “We are grateful to SCCADVASA and SCVAN for their tireless work in helping victims of domestic violence and sexual assault find both justice and safety.”
“The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system’s approach to supporting families affected by violence," stated OVW Director Rosemarie Hidalgo. “These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don’t merely navigate our legal system, but genuinely find a path to justice and safety.”
These grants are just one way the U.S. Department of Justice partners with community organizations to support and protect victims of domestic violence and sexual assault. Earlier this week, representatives from the U.S. Attorney’s Office participated in the 2023 POWER Act Conference hosted by the United States District Court and SCCADVASA. The conference provided attorneys, victim service professionals, and law enforcement officers with an overview of South Carolina’s civil protective orders and how they can trigger federal firearms prohibitions. A team of federal and state experts led a roundtable discussion on ways to improve collaboration between civil attorneys and criminal justice professionals to help protect victims from threats of gun violence.
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OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
U.S. Attorney's Office Announces $600,000 in Federal Funding Awarded to Mecklenburg CountyRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that $600,000 in federal grants has been allocated to Mecklenburg County by the Justice Department’s Office on Violence Against Women (OVW), to expand access to legal services and enhance processes impacting the safety of victims and their families.
“I am pleased to announce that the Western District of North Carolina has been awarded funding from the Office on Violence Against Women,” said U.S. Attorney King. “Federal grants are a vital resource for organizations with programs that support the Justice Department’s mission to improve access to legal services and enhance the safety of victims, survivors, and their families.”
The OVW grant was allocated under the Justice for Families (JFF) Program, authorized in the Violence Against Women Reauthorization Act of 2013, to improve the response of the civil and criminal justice system to families with a history of domestic violence, dating violence, sexual assault, and stalking, or in cases involving allegations of child sexual abuse. The grant was awarded by the JFF Program to Mecklenburg County Community Support Services, to fund a project related to supervised visitation and safe custody exchange services, provide legal representation and legal assistance services for victims of domestic violence, and expand legal services, including language access, to underserved communities and communities with limited English proficiency.
“The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system’s approach to supporting families affected by violence,” stated OVW Director Rosemarie Hidalgo. “These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don’t merely navigate our legal system, but genuinely find a path to justice and safety.”
Created in 1995, OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act (VAWA) and subsequent legislation. OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Two Men Sentenced for $7.6 Million COVID Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A Manassas man and a Bealeton man were sentenced today to a combined 6 years in prison for engaging in a joint scheme to defraud banks and the Small Business Administration of over $7 million in COVID relief funds.
According to court documents, from approximately April 2020 to March 2021, Bennie Earl Magee, 55, falsified payroll records, created fake IRS business tax returns, and submitted to lenders and the SBA falsified revenue reports of multiple companies to obtain over $7 million in PPP and EIDL loans for himself and others. Michael Gilcher, 46, obtained $1.4 million of the total, but wrote checks back to Magee’s company, Bull Run Capital, totaling approximately $620,000. Magee also involved another individual in the scheme and proposed the fraud to yet others. Magee used over $5 million of the PPP fraud proceeds to invest in crypto currency, to purchase vehicles, and to pay other personal and business expenses.
“PPP and EIDL loans were created to assist those financially effected by the COVID-19 pandemic. Mr. Magee and Mr. Glicher not only lied to the IRS and stole millions of taxpayer funds, but frivolously spent it on items such as vehicles and cryptocurrency,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “EDVA will continue to work with the SIGPR and other law enforcement partners to prosecute those who take advantage of all of us.”
Magee was sentenced to 5 years and Gilcher was sentenced to 1 year in prison for their roles in the conspiracy.
“This prosecution and investigation resulted in the sentencing of two individuals responsible for defrauding the taxpayers of millions of dollars by abusing federal programs designed to bring relief to struggling small businesses that were hit hard by the pandemic,” said Brian Miller, the Special Inspector General for Pandemic Recovery. “SIGPR is glad to have played a significant role teaming with the FBI and the United States Attorney’s Office to hold these individuals accountable.”
"At a time when many small businesses were trying to keep their doors open and support their employees, these fraudsters chose to lie and steal from small business relief programs to line their own pockets," said Inspector General Michael E. Horowitz, Chair of the PRAC. "Today's sentencing demonstrates the commitment of the Inspector General community and federal prosecutors to bring to justice those who brazenly stole money from taxpayers. We appreciate the partnership with the investigating agents, the FBI, and U.S. Attorney Aber to protect COVID-19 relief funds for the public."
“Today’s sentencings are an example of the continued commitment of the FBI to identify and hold to account those who engaged in COVID relief fraud,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal and Cyber Division. “Magee and Glicher engaged in a joint scheme to defraud banks and the Small Business Administration of over $7 million in COVID relief funds. Even years after COVID relief funds were distributed, the FBI and our partners continue to investigate these schemes which defrauded the government and stole from taxpayers.”
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Miller, Special Inspector General for Pandemic Recovery (SIGPR); and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
This case was investigated by a SIGPR agent assigned to the Pandemic Response Accountability Committee (PRAC) Fraud Task Force. The PRAC was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 21 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending. The PRAC Fraud Task Force brings together agents from 16 Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program. Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.
Assistant U.S. Attorneys Russell L. Carlberg and Kathleen Robeson 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 Nos. 1:23-cr-86 and 1:23-cr-91.
Two District Men Charged for September 6, 2023, Murder in Southwest Apartment BuildingRead the Press Release
WASHINGTON – Keshawn Lavender, 22, and Deandre Sams, 27, both of Washington, D.C., were presented in Superior Court yesterday on first degree felony murder while armed charges stemming from the homicide of 32-year-old Matthew Miller on September 6, 2023, in the Wharf neighborhood, in Southwest, Washington, D.C., announced U.S. Attorney Matthew M. Graves.
Lavender and Sams were arraigned before Magistrate Judge Judith Pipe on the charges in Courtroom C-10, D.C. Superior Court, where both entered pleas of not guilty. The court heard arguments and found probable cause to believe that the defendants committed first degree felony murder while armed. The court held the defendants without bond pending a preliminary hearing to be held on September 27, 2023, before Judge Anthony Epstein.
An arrest on a complaint is merely a formally charged allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charge, U.S. Attorney Graves commended the work of those investigating the case from the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office.
Two Brothers Plead Guilty to $7.6M COVID-19 Relief FraudRead the Press Release
Two brothers pleaded guilty yesterday to their participation in a scheme to file fraudulent loan applications seeking approximately $7.6 million in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, between April and September 2020, Larry Jordan, 45, of Lancaster, New York, and Sutukh El, aka Curtis Jordan, aka Hugo Hurt, aka Hugo Hermes Hurtington, 41, of Buffalo, New York, conspired to submit eight fraudulent PPP loan applications on behalf of companies they owned or controlled. The defendants submitted three of the applications to Evolve Bank & Trust and five to Lendio, a financial technology company based in Utah. The applications contained false statements about the 2019 payroll expenses of each company, which the SBA used to calculate the amount of PPP funds to which the applicant-companies would be entitled. To corroborate the applications, Jordan and El submitted IRS forms, which they had never filed with the IRS, as well as fraudulent payroll registers that purported to identify the names, personal information, and salary of the employees identified on the PPP applications. The money was then deposited into an account controlled by El, which the brothers used for their own investments, personal expenses, and home improvements.
Jordan and El pleaded guilty to conspiracy to commit bank fraud and wire fraud, which carries a maximum penalty of 30 years in prison and a $1 million fine. Jordan also pleaded guilty to bank fraud, which carries a maximum penalty of 30 years in prison, and engaging in monetary transactions in criminally derived property, which carries a maximum sentence of 10 years in prison. The brothers are scheduled to be sentenced on Jan. 17, 2024. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; U.S. Attorney Trini E. Ross for the Western District of New York; Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), New York Region; Special Agent in Charge Brian Tucker of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau’s Office of the Inspector General (FRB-CFPB OIG), Eastern Region; Special Agent in Charge Robert Manchak of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), Northeast Region; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector General (SBA-OIG), Eastern Region made the announcement.
The FDIC OIG, FRB-CFPB OIG, FHFA-OIG, FBI, and SBA-OIG are investigating the case.
Trial Attorneys Ariel Glasner and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Charles Kruly and Grace Carducci for the Western District of New York are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Two Brothers Plead Guilty to COVID Relief FraudRead the Press Release
BUFFALO, NY – U.S. Attorney Trini E. Ross announced today that two brothers, Larry Jordan, 45, of Lancaster, NY, and Sutukh El a/k/a Curtis Jordan a/k/a Hugo Hurt a/k/a Hugo Hermes Hurtington, 41, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to commit bank fraud and wire fraud for their participation in a scheme to file fraudulent loan applications seeking forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine. In addition, Jordan pleaded guilty to bank fraud, which carries a maximum penalty of 30 years in prison and engaging in monetary transactions in criminally derived property, which carries a maximum sentence of 10 years in prison.
According to court documents, between April and September 2020, Jordan and El conspired to submit eight fraudulent PPP loan applications on behalf of companies they owned or controlled. Three of the applications were submitted to Evolve Bank & Trust and the other five were submitted to Lendio, a financial technology company based in Utah. The applications contained false statements about the 2019 payroll expenses of each company, which were used to calculate the amount of PPP funds to which the applicant-companies would be entitled. To corroborate the applications, Jordan and El submitted IRS forms, which had never been filed with the IRS, as well as fraudulent payroll registers that purported to identify the names, personal information, and salary of the employees identified on the PPP applications.
For example, a PPP loan application was submitted on behalf of 5 Stems Inc to Evolve. The application represented that in 2019, 5 Stems Inc had 194 employees and an average monthly payroll of $242,133.33. In truth, 5 Stems Inc had nine employees in 2019 and paid those employees a total of approximately $57,380 for all of 2019. Evolve approved the application and funded a $605,200 loan. The money was deposited into an account controlled by defendant El. Some of the money was used for the defendants’ own investments, as well as personal expenses and home improvements.
This case was investigated by the Federal Deposit Insurance Corporation’s Office of Inspector General, the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection’s Office of the Inspector General, the Federal Housing Finance Agency’s Office of the Inspector General, the Federal Bureau of Investigation, and the Small Business Administration’s Office of Inspector General. Assistant U.S. Attorneys Charles Kruly and Grace Carducci for the Western District of New York and Trial Attorneys Ariel Glasner and Della Sentilles of the Criminal Division’s Fraud Section are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Sentencing is scheduled for January 17, 2024, before Judge Sinatra.
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Thompson Man Pleads Guilty to Trafficking in Stolen Human RemainsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeremy Pauley, age 41, of Thompson, Pennsylvania, pleaded guilty yesterday before U.S. District Court Judge Matthew W. Brann to conspiracy and interstate transportation of stolen property.
According to United States Attorney Gerard M. Karam, Pauley admitted to his role in a nationwide network of individuals who bought and sold human remains stolen from Harvard Medical School and an Arkansas mortuary. In pleading guilty to a felony Information, Pauley admitted that he purchased human remains from multiple individuals knowing that those remains were stolen. Pauley also admitted to selling many of the stolen remains to others, at least one of whom also knew they had been stolen.
Previously, other individuals were also indicted on charges of conspiracy and interstate transport of stolen property as part of the same investigation. The indictments allege that from 2018 through 2022, Cedric Lodge, who managed the morgue for the Anatomical Gifts Program at Harvard Medical School, located in Boston, Massachusetts, stole organs and other parts of cadavers donated for medical research and education before their scheduled cremations. Lodge at times allegedly transported stolen remains from Boston to his residence in Goffstown, New Hampshire, where he and his wife, Denise Lodge, sold the remains to Katrina Maclean, Joshua Taylor, and others, making arrangements via cellular telephone and social media websites. At times, Cedric Lodge allegedly allowed Maclean and Taylor to enter the morgue at Harvard Medical School and examine cadavers to choose what to purchase. On some occasions, Taylor transported stolen remains back to Pennsylvania. On other occasions, the Lodges shipped stolen remains to Taylor and others out of state.
Maclean and Taylor allegedly sold the stolen remains for profit, including to Jeremy Pauley in the Middle District of Pennsylvania. Jeremy Pauley also allegedly purchased stolen human remains from Candace Chapman Scott, who stole remains from her employer, a Little Rock, Arkansas mortuary and crematorium. Scott allegedly stole parts of cadavers she was supposed to have cremated, many of which had been donated to and used for research and educational purposes by an area medical school, as well as the corpses of two stillborn babies who were supposed to be cremated and returned as cremains to their families. Scott allegedly sold the stolen remains to Pauley and shipped them to Pauley in the Middle District of Pennsylvania. Pauley sold many of the stolen remains he purchased to other individuals, allegedly including Matthew Lampi. Lampi and Pauley bought and sold from each other over an extended period and exchanged over $100,000 in online payments.
The individuals charged along with Pauley as a result of the investigation are pending trial:
- Cedric Lodge, age 55, of Goffstown, New Hampshire;
- Katrina Maclean, age 44, of Salem, Massachusetts;
- Joshua Taylor, age 46, of West Lawn, Pennsylvania;
- Denise Lodge, age 63, of Goffstown, New Hampshire; and
- Mathew Lampi, age 52, of East Bethel, Minnesota.
Additionally, Candace Chapman-Scott has been indicted in federal court in the District of Arkansas for her role in the conspiracy and for defrauding the mortuary that employed her.
The United States Attorney’s Office has and will continue to attempt to identify and contact as many of the victims and victims’ families affected by this case as possible. If anyone believes they or a family member may have been affected by the conduct described above, please contact our Victim and Witness Unit at [email protected] or (717) 614-4249.
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the East Pennsboro Township Police Department, and the Cumberland County District Attorney’s Office. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
The maximum penalty under federal law for this offense is 15 years of imprisonment, a term of supervised release following imprisonment, 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.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Third Defendant Charged in September 6th Murder in Southwest Apartment BuildingRead the Press Release
WASHINGTON – Raymond Mathis, 36, of Washington, D.C., was presented in Superior Court today on charges of first degree felony murder while armed stemming from the homicide of 32-year-old Matthew Miller, on September 6, 2023, in the city's Wharf neighborhood, U.S. Attorney Matthew M. Graves announced.
Mathis is the third defendant charged in the case. He was arraigned before Magistrate Judge Judith Pipe and entered a plea of not guilty. The court found probable cause to believe that the defendant committed first degree felony murder while armed. Mathis is being held without bond pending a September 27 preliminary hearing before Judge Anthony Epstein.
An arrest on a complaint is merely a formally charged allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charge, U.S. Attorney Graves commended the work of those investigating the case from the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office.
Tampa Woman Pleads Guilty to Identity Theft, Passport and Food Stamp FraudRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Nilda Medina-Veguilla (38, Tampa) has pleaded guilty to making false statements in an application for a United States passport, aggravated identity theft, and theft of government property. Medina faces a maximum penalty of 10 years in federal prison and a minimum mandatory penalty of 2 years’ imprisonment. Medina-Veguilla has also agreed to forfeit the proceeds of the charged criminal conduct.
According to the plea agreement, Medina-Veguilla is a U.S. citizen who was born in Puerto Rico. In 2005, she was charged with counterfeiting and illegal appropriation. In 2008, a warrant was issued for her arrest. That same year, Medina-Veguilla left Puerto Rico and moved to the continental United States. There, she assumed the identity of “N.T.D.,” an individual she knew from Puerto Rico. Medina-Veguilla was married and divorced, arrested, employed, and taxed, all in the victim’s name. In February 2021, Medina-Veguilla applied for a U.S. passport using N.T.D.’s name, date of birth, Social Security number, and birth certificate. She also applied for and received “SNAP” benefits in N.T.D.’s name. The Supplement Nutrition Assistance Program (“SNAP” – formerly known as “food stamps”) is a program of the United States Department of Agriculture that was authorized by congress to provide federal benefits to help low-income families buy food. In total, Medina-Veguilla fraudulently obtained more than $43,000 in SNAP benefits.
Medina-Veguilla’s fraudulent activity was exposed when Consular Affairs discovered the real N.T.D. had been issued a U.S. passport several years before Medina-Veguilla’s application.
This case was investigated by U.S. Department of State’s Diplomatic Security Service, the U.S. Department of Agriculture - Office of Inspector General, and the Social Security Administration – Office of the Inspector General. It is being prosecuted by Special Assistant United States Attorney Rachel S. Lyons.
Syracuse Man Sentenced to 33 Months for Cocaine OffenseRead the Press Release
SYRACUSE, NEW YORK – Redell Williams, III, age 43, of Syracuse, was sentenced today to serve 33 months’ imprisonment for possession with intent to distribute cocaine.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA)-New York Division, made the announcement.
As part of his earlier guilty plea, Williams admitted that on November 10, 2022, he possessed a total of approximately 531 grams of cocaine and approximately 211 grams of cocaine base at his home in Syracuse, New York with the intent to distribute it. Williams further admitted that in his residence, he “cooked” powder cocaine to manufacture cocaine base, also known as “crack” cocaine, and that $4,587 in cash found at his residence was narcotics proceeds.
Chief United States District Judge Brenda K. Sannes also imposed a 3-year term of post-release supervision and ordered Williams to forfeit $4,587 as proceeds of the offense.
DEA investigated the case, with assistance from Onondaga County District Attorney’s Office, Onondaga County Sheriff’s Office, and the Syracuse Police Department. Assistant U.S. Attorney Matthew J. McCrobie prosecuted the case.
Suspended Indianapolis Police Sergeant Sentenced to 1 Year in Federal Prison for Using Excessive Force During ArrestRead the Press Release
INDIANAPOLIS- Suspended Indianapolis Metropolitan Police Department Sergeant, Eric Huxley, 44, has been sentenced to 1 year and 1 day in federal prison after pleading guilty to violating the civil rights of an arrestee by using excessive force.
According to court documents, on Sept. 24, 2021, Huxley, was on patrol in downtown Indianapolis when another officer requested his assistance in confronting a disorderly person on Monument Circle. After officers placed the victim, identified as J.V., under arrest for disorderly conduct, Huxley assisted other officers with conducting an inventory of J.V.’s property.
When officers began to remove J.V.’s belt, he became confrontational with the officers. The primary arresting officer used a department-approved takedown maneuver to bring J.V., who had already been handcuffed, to the ground. The arresting officer held J.V. down with one hand while a second officer restrained his legs. This reasonable and appropriate use of force effectively overcame J.V.’s resistance and rendered him physically unable to move.
Despite knowing that J.V. had been effectively restrained and posed no further danger to officers or the public, Huxley then intentionally raised his right foot and drove it down onto J.V.’s head and face.
“This sentence holds a former police officer accountable for abusing his authority when he violently assaulted a homeless man who posed no threat,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to aggressively investigating and prosecuting law enforcement officials who violate federal civil rights laws.”
“In addition to the trauma inflicted on victims, police officers who break the law and use excessive force damage the community’s trust in the law enforcement profession,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “Officers put themselves at risk every day doing a difficult and sometimes dangerous job to uphold the law and protect their communities. Those who instead commit crimes must be identified and prosecuted. This sentence demonstrates that the FBI, Department of Justice, and our U.S. Attorney’s Office are committed to seeking accountability for those who violate people’s civil rights under the color of law.”
“Every day, law enforcement officers in this country face dangerous situations which require the application of reasonable force to protect themselves and others. Unfortunately, some officers fail to adhere to the applicable standards of law and policy, inflicting harm instead of preventing it,” said Special Agent in Charge Herbert J. Stapleton of the FBI Indianapolis Field Office. “This sentence reflects the FBI’s commitment to protecting the civil rights of all citizens, and I commend the work of the Special Agents and prosecutors who helped ensure the defendant was held accountable for his illegal conduct.”
Assistant Attorney General Kristen Clarke, U.S. Attorney for the Southern District of Indiana, Zachary A. Myers and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office made the announcement.
The FBI Indianapolis Field Office investigated the case. The sentence was imposed by U.S. District Court Judge Jane Magnus-Stinson. Judge Stinson ordered that Huxley be supervised by the U.S. Probation Office for 2 years following his release from federal prison.
Assistant U.S. Attorney Tiffany Preston for the Southern District of Indiana and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section prosecuted the case.
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Suspended Indianapolis Police Sergeant Sentenced for Using Excessive Force During ArrestRead the Press Release
A suspended Indianapolis Metropolitan Police Department Sergeant was sentenced to 12 months and a day in prison, with six months of home detention and 18 months of supervised release, after pleading guilty to violating the civil rights of an arrestee by using excessive force.
According to court documents, on Sept. 24, 2021, Eric Huxley, 44, was on patrol in downtown Indianapolis when another officer requested his assistance in confronting a disorderly person on Monument Circle. After officers placed the victim, identified as J.V., under arrest for disorderly conduct, Huxley assisted other officers with conducting an inventory of J.V.’s property.
When officers began to remove J.V.’s belt, he became confrontational with the officers. The primary arresting officer used a department-approved takedown maneuver to bring J.V., who had already been handcuffed, to the ground. The arresting officer held J.V. down with one hand while a second officer restrained his legs. This reasonable and appropriate use of force effectively overcame J.V.’s resistance and rendered him physically unable to move.
Despite knowing that J.V. had been effectively restrained and posed no further danger to officers or the public, Huxley then intentionally raised his right foot and drove it down onto J.V.’s head and face.
“This sentence holds a former police officer accountable for abusing his authority when he violently assaulted a homeless man who posed no threat,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to aggressively investigating and prosecuting law enforcement officials who violate federal civil rights laws.”
“In addition to the trauma inflicted on victims, police officers who break the law and use excessive force damage the community’s trust in the law enforcement profession,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “Officers put themselves at risk every day doing a difficult and sometimes dangerous job to uphold the law and protect their communities. Those who instead commit crimes must be identified and prosecuted. Today’s sentencing demonstrates that the FBI, Justice Department and our U.S. Attorney’s Office are committed to seeking accountability for those who violate people’s civil rights under the color of law.”
“Every day, law enforcement officers in this country face dangerous situations which require the application of reasonable force to protect themselves and others. Unfortunately, some officers fail to adhere to the applicable standards of law and policy, inflicting harm instead of preventing it,” said Special Agent in Charge Herbert J. Stapleton of the FBI Indianapolis Field Office. “This sentence reflects the FBI’s commitment to protecting the civil rights of all citizens and I commend the work of the Special Agents and prosecutors who helped ensure the defendant was held accountable for his illegal conduct.”
The FBI Indianapolis Field Office investigated the case.
Assistant U.S. Attorney Tiffany Preston for the Southern District of Indiana and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section prosecuted the case.
Seattle Barrel cleaning company and its owner sentenced for ten-year water pollution schemeRead the Press Release
Seattle – A barrel cleaning and reconditioning operation, Seattle Barrel and Cooperage Company, and its owner, Louie Sanft, 55, were sentenced today in U.S. District Court in Seattle for conspiracy, making false statements, and 33 Clean Water Act violations, announced Acting U.S. Attorney Tessa M. Gorman. Sanft was sentenced to 18 months in prison, a $250,000 fine, and three years of supervised release. The company was sentenced to be on five years of probation.
U.S. District Judge Richard A. Jones, who presided over the three-week trial, said, “These discharges were not done by accident or mistake… they were done with disregard for the consequences… An enormous amount of caustic waste – an estimated 26,000 gallons of caustic water -- into our system with no idea of what harm it could have done. You had no justifiable reason to engage in this deceitful and dangerous activity.”
“These defendants sent dangerous caustic chemicals into our sewer system once a week for years,” said Acting U.S. Attorney Gorman. “This risked environmental harm to Elliott Bay and the Duwamish River, damaged critical sewer infrastructure, and could have seriously injured utility workers. At many points Mr. Sanft and his company could have reformed their ways – the refusal to do so results in these sentences today.”
According to records in the case and testimony at trial, Seattle Barrel’s business involves collecting used industrial and commercial drums and reconditioning and reselling them. Part of the reconditioning process involved washing the barrels in a highly corrosive chemical solution. The caustic solution has a very high pH level. Since at least 2009, Seattle Barrel has operated under a discharge permit that prohibits it from discharging wastewater over a certain level of corrosivity (a pH exceeding 12) to the sewer system. Wastewater above pH 12 will corrode the sewer system and treatment plant, and potentially cause pass-through pollution to Elliott Bay and Puget Sound.
In 2013, King County conducted covert monitoring of Seattle Barrel, and discovered the company was illegally dumping effluent with a pH above 12 in violation of its permit. King County fined the company, but the pollution did not stop. Beginning in 2016, Louie Sanft represented to King County in written monthly certifications that the company had become a “zero discharge” facility and was not discharging any industrial wastewater to the sewer.
In fact, in 2018 and 2019, additional covert monitoring by the EPA’s Criminal Investigation Division revealed that Seattle Barrel was continuing to routinely dump wastewater with a pH above 12 into the sewer system despite telling local regulators that no industrial wastewater was being discharged. Agents then installed real-time monitoring equipment that allowed them to determine when the dumping was taking place.
Early on the morning of March 8, 2019, the covert monitors indicated Seattle Barrel was dumping high-pH material into the sewer. Agents immediately executed a search warrant and entered the building. Inside, they discovered a portable pump on the floor near the tank of caustic solution. They then discovered that the pump was being used to pump solution to a nearby hidden drain that had never been disclosed to King County. The drain led directly to the sewer system.
Seattle Public Utilities says the sewer lines downstream from Seattle Barrel are prematurely damaged and will need early repair. These discharges put utility workers at risk, as such caustic chemicals can cause blindness, skin necrosis, bone damage, and even death.
Louie Sanft, the owner and operator of Seattle Barrel, was convicted after a three-week trial of conspiracy, 29 violations of the Clean Water Act for discharging pollutants to the sewer, four counts of submission of False Clean Water Act Certifications, and making a false statement to special agents of the EPA.
Asking the court to impose a five-year prison sentence, Assistant United States Attorney Seth Wilkinson wrote, “Louis Sanft affirmatively chose to pollute and engaged in a campaign of deceit to cover it up, despite regulators efforts to help him comply… Louis Sanft simply stonewalled, or lied and continued his illegal practices… Sanft… lied to federal agents…tried to mislead the U.S. Attorney’s Office and EPA …and finally, Louis Sanft lied to the jury at trial.”
As part of the sentence for the company, Judge Jones is requiring the company to certify every quarter that it has complied with all federal, state, and local requirements including compliance with its National Pollutant Discharge Elimination System permit.
"For nearly a decade, the defendants dumped caustic industrial waste into the Seattle sewer system and then conspired to conceal their illegal activities by submitting false monthly reports and lying to investigators," said Acting Special Agent in Charge Benjamin Carr of EPA’s Criminal Investigation Division for Washington. “Today’s sentencing demonstrates the seriousness of these crimes and sends a clear message that businesses will be held criminally responsible if they fail to manage industrial wastes in accordance with laws designed to protect the health of our communities, national infrastructure, and the environment.”
According to Seattle Barrel, the company stopped using caustic solution after EPA executed the search warrant in 2019.
This case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, with assistance from the King County Industrial Waste Program and the Seattle Public Utilities, Drainage and Wastewater Source Control Division.
The case was prosecuted by Assistant United States Attorneys Seth Wilkinson and Thomas Woods, and Special Assistant United States Attorneys Karla Perrin and Gwendolyn Russell, Regional Criminal Enforcement Counsel with the Environmental Protection Agency.
Salt Lake City Man Indicted for Carjacking After Allegedly Attacking a Woman with a Child in the VehicleRead the Press Release
Salt Lake City, Utah – A federal grand jury in Salt Lake City returned an indictment Wednesday charging a Salt Lake City man after he allegedly attempted to violently take a woman’s vehicle with her daughter in the backseat.
According to court documents, Zachery Cover, 32, of Salt Lake City, attempted to steal a black BMW in the area of 1000 West 200 North in Salt Lake City on August 30, 2023.
According to the allegations in the complaint, dispatch received a 911 call at 9:14 a.m. from the victim who stated she had been driving with her 7-year-old daughter when she stopped due to a tire problem. The victim left the vehicle running with the driver’s door open while she checked the tire pressure. A man, later identified as Cover, jumped in the vehicle, and shut the door. In an attempt to stop Cover from leaving with her daughter, who was in the backseat, the victim reached through the open driver’s door window and pleaded with Cover not to take the car because her daughter was inside. Cover told the victim to take her daughter and get out. The victim pulled Cover from the vehicle and a physical altercation ensued. The victim was struck several times by Cover. At one point, Cover displayed a firearm and pointed it at the victim and her child. A second struggle occurred, and the victim knocked the gun away, broke free, drove off and called 911. A responding officer took Cover into custody. The recovered firearm was a facsimile .22 caliber Walther style BB gun.
Cover is charged with carjacking. Cover had his initial court appearance on the indictment, September 7, 2023 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City. A two day trial is scheduled for November 13, 2023.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated by a Salt Lake City Police Officer with the FBI's Violent Crime Task Force.
Assistant United States Attorney Carlos A. Esqueda for the District of Utah 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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Porterville Man Sentenced to over 17 Years in Prison for Conspiracy to Possess with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss. – Cordaryl Deshean Ford, 37, of Porterville, was sentenced to 210 months in federal prison for conspiracy to possess with intent to distribute 50 grams of more of methamphetamine, announced U.S. Attorney Darren LaMarca and acting Special Agent in Charge Eric DeLaune of Homeland Security Investigations in New Orleans.
According to court documents, in May 2020, Cordaryl Deshean Ford conspired with others to distribute methamphetamine in and around the Kemper County area. Ford and his co-conspirators were charged in a federal indictment with conspiracy to possess with intent to distribute methamphetamine. Ford entered a plea of guilty to his charge on the first day of trial in U.S. District Court in Jackson.
The case was investigated by Homeland Security Investigations, the Drug Enforcement Administration, Mississippi Bureau of Narcotics, Mississippi Attorney General’s Office, Kemper County Sheriff’s Office, Neshoba County Sheriff’s Office, Philadelphia Police Department, Mississippi Department of Wildlife, Fisheries and Parks, Mississippi National Guard Counterdrug Task Force, and the Madison Police Department. Assistant United States Attorneys Keesha Middleton and Carla Clark prosecuted the case.
This case is the result of an extensive investigation targeting illegal drug trafficking in the Neshoba and Kemper County areas. The case 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.
Philadelphia Man Sentenced to 96 Months in Prison for Fentanyl TraffickingRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Naim Taylor, age 25, of Philadelphia, Pennsylvania, was sentenced to 96 months of imprisonment on charges related to fentanyl trafficking.
According to United States Attorney Gerard M. Karam, Taylor was the manager of a drug trafficking organization that brought fentanyl from Philadelphia to Williamsport and other areas in the Middle District of Pennsylvania. Taylor previously entered a guilty plea in which he admitted to being responsible for trafficking at least 74 grams of fentanyl, the equivalent of nearly 3,000 individual doses. Taylor’s sentence was enhanced because of his possession of a firearm in connection with these activities.
This case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorney Geoffrey W. MacArthur 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 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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NuDay Charity Pleads Guilty in Connection with the Illegal Export of Goods to SyriaRead the Press Release
CONCORD – A New Hampshire charity pleaded guilty today in federal court to export offenses, U.S. Attorney Jane E. Young announces.
NuDay, a/k/a NuDay Syria, pleaded guilty to three counts of Failure to File Export Information. U.S. District Court Judge Joseph Laplante scheduled sentencing for December 28, 2023.
NuDay was founded by Nadia Alawa as a non-profit charity in 2013 and is headquartered in Windham, New Hampshire. Alawa served as NuDay’s President. Between 2018 and 2021, NuDay made over 100 shipments to Syria, a country that was subject to sanctions and export restrictions. NuDay had the items shipped to Mersin, Turkey, where another company would transship them into Syria. U.S. Department of Commerce regulations require exporters, such as NuDay, to report true and accurate information about the items being exported, including the shipment’s description, end user, and monetary value. However, NuDay falsely reported that the end destination of the shipments was Turkey and not Syria, and artificially deflated the value of the goods to be below the $2,500 reporting threshold. For example, on May 5th, 2019, NuDay falsely reported that their shipment was intended for Turkey and that the value of the container was less than $2,500. NuDay now admits that this container was actually intended for Syria and claims its true value was $8.3 million.
For an organizational defendant, the charging statute provides a sentence of no greater than five years of probation and a fine of $10,000 per count. 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. As a condition of the plea, Nadia Alawa and her family members will have no further involvement with NuDay.
The Federal Bureau of Investigation, U.S. Department of Commerce’s Office of Export Enforcement, Internal Revenue Service’s Criminal Investigations division, and Homeland Security Investigations led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
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North Carolina Woman Pleads Guilty to Fatally Stabbing a Man During a Visit to Washington DCRead the Press Release
Incident Occurred in January 2023
WASHINGTON – Cynthia Battle, 54, of Washington, D.C., pleaded guilty today to stabbing a man to death on January 16, 2023, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela A. Smith, of the Metropolitan Police Department (MPD). Battle pleaded in the Superior Court of the District of Columbia, to a charge of voluntary manslaughter. The Honorable Michael O’Keefe accepted the plea and scheduled sentencing for November 17, 2023.
According to the government’s evidence, on January 15, 2023, Cynthia Battle and two friends drove from their homes in North Carolina to visit a friend in Washington DC. The following day, the decedent, Raymond Johnson, joined them all at the friend’s house. At approximately 11:45 pm on January 16, 2023, Battle, Johnson, and a witness walked together down Minnesota Ave. Southeast, to purchase crack cocaine. While outside on the street, and in the midst of this drug transaction, Battle was captured on surveillance camera lunging towards Johnson. Battle, Johnson, and the witness then quickly separated, walking in opposite directions. Minutes later, a 911 caller found Johnson further down the street. Johnson was laying face down and unconscious, bleeding from a single stab wound to his chest.
The sole eyewitness to the stabbing immediately drove back to North Carolina, leaving Battle behind. Battle caught her own ride back to North Carolina the next day, after which she absconded. Members of the Metropolitan Police Department (MPD) worked with members of the Halifax County Sherriff’s Office to locate and interview the witness within days of the stabbing. The witness initially claimed not to have seen anything, but later admitted to seeing a flash of silver in Battle’s hand as Battle struck Johnson in the chest. Law enforcement from these two jurisdictions also worked together to search Battle’s home, where they found the clothing she wore on the night of the murder. Battle was arrested in March 2023, and has been in custody ever since.
In announcing the plea, U.S. Attorney Graves and Acting Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the cooperation from the Halifax County Sherriff’s Office, and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Latrice Washington-Williams and Paralegal Specialist Lauren Douglas. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Lisa Lindhorst, who investigated and prosecuted the case.
Nebraska Man Sentenced on Firearm ChargeRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Court Chief Judge Robert A. Lange has sentenced a Hastings, Nebraska, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on September 5, 2023.
Joaquin Cervantes, 39, was sentenced to five years in federal prison, follow by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Cervantes was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in May of 2023. He pleaded guilty on June 16, 2023.
The conviction stems from Cervantes, a previously convicted felon who is prohibited from possessing firearms, knowingly being in possession of a Remington semi-automatic rifle in Rapid City, South Dakota, in March of 2023.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Cervantes was immediately remanded to the custody of the U.S. Marshals Service.
Maryland Man Pleads Guilty to Extorting Massachusetts Victims He Met via Online Dating WebsiteRead the Press Release
BOSTON – A Maryland man pleaded guilty today to making extortionate threats toward victims in Massachusetts.
Brandon D. Kane, 27, of Baltimore, pleaded guilty to making extortionate threats in interstate commerce. U.S. District Court Judge Patti B. Saris scheduled sentencing for Jan. 11, 2024. Kane was arrested and charged in April 2023.
Kane used an online dating website to meet victims locally in Eastern Massachusetts. During such meetings, Kane made unauthorized videos of his victims engaging in illicit drug use or sexual activity with him. Kane then threatened to release the videos to the victims’ families and employers unless his victims paid him.
The charge of making extortionate threats in interstate commerce provides for a sentence of up to two years in prison, one year 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 Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Jessica Soto and Benjamin Tolkoff of the Criminal Division are prosecuting the case.