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29 September 2023
U.S. Attorney's Office Announces Nearly $16.5 Million in Federal Grants Awarded to Western District of North Carolina to Support Community SafetyRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that $16,470,958 in federal grants has been allocated to the Western District of North Carolina to support public safety and community justice initiatives. The grants are part of the $4.4 billion in funding awarded by the Justice Department’s Office of Justice Programs (OJP), to help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.
“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”
From, Dena J. King, United States Attorney“Federal grants are critical to support my Office’s efforts to increase and restore the health and safety of communities throughout the Western District of North Carolina. Federal funding supports comprehensive public safety solutions tailored to each community’s unique needs, and ensures that local governments and law enforcement have the tools and resources they need to do their jobs effectively.”
The more than 3,700 OJP grants being awarded this fiscal year will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.
In the Western District of North Carolina, nearly $9 million has been awarded under OJP’s Bureau of Justice Assistance (BJA) to the cities of Asheville, Boone, Charlotte (and Mecklenburg County), Gastonia (and Gaston County), Monroe, Morganton, Newton, Shelby, and Statesville. BJA provides leadership and assistance to local criminal justice programs that improve and reinforce the nation’s criminal justice system. BJA’s goals are to reduce and prevent crime, violence, and drug abuse and to improve the way in which the criminal justice system functions. BJA funding announcements are posted at: https://www.bja.gov/funding.aspx.
In addition, more than $6.5 million has been awarded to the City of Newton and the National Association of Police Athletic/Activities Leagues, Inc. (National PAL) in Charlotte under OJP’s Office of Juvenile Justice and Delinquency Prevention (OJJDP). A component of the OJP within the Department of Justice, OJJDP works to prevent and respond to youth delinquency and protect children by sponsoring research, program, and training initiatives, disseminating information about juvenile justice issues, and awarding funds to support local programming. OJJDP funding announcements are posted at: https://ojjdp.ojp.gov/funding.
Lastly, $1 million has been awarded to Mecklenburg County under OJP’s National Institute on Justice (NIJ). NIJ is the research, development and evaluation agency of the Department of Justice, dedicated to improving knowledge and understanding of crime and justice issues through science. NIJ funding announcements are posted at: https://nij.ojp.gov/funding.
“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”
“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”
“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”
In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending. More information about the awards announced today can be found by visiting www.ojp.gov/funding/fy23awards.
U.S. Attorney participates in United Against Hate community event at Temple IsraelRead the Press Release
Memphis, TN – The United States Attorney’s Office for the Western District of Tennessee participated in a United Against Hate outreach event bringing DOJ officials and FBI partners to community members to elevate effective strategies to prevent, report, and respond to hate crimes and incidents.
United Against Hate is a nationwide Department of Justice initiative to inform communities about hate crimes and reporting hate-related incidents. The Department launched the initiative in 2022 with the goal of building trust, opening lines of communication, and strengthening coordination between relevant partners and the community to help combat a growing number of hate and bias-related incidents since 2021.
“One of our biggest concerns is that people may not know what a hate crime looks like, or who to tell if they have concerns, so these serious violations may never come to our attention,” said U.S. Attorney Kevin Ritz. “We can’t fight what we can’t find. When hate crimes go unreported, it becomes more difficult for law enforcement agencies to allocate resources for the fight.”
This recent event took place on September 25 at Temple Israel, the oldest and largest Jewish congregation in Tennessee, and featured U.S. Attorney Kevin Ritz, Rabbi Micah Greenstein, former U.S. Attorney Edward Stanton, and FBI Special Agent Taneka Blacknell.
The event also featured the story of Mickey Wright, the Shelby County code enforcement officer who was murdered in 2001 while on the job, after he wrote a citation to a business owner on Lamar Avenue. Dale Mardis was eventually convicted of civil rights violations for dismembering Wright’s body and disposing him. Wright’s remains were never located. Mardis, who is currently serving life in federal prison, admitted to murdering Wright because of the ticket, but also because Wright was African American.
Wright’s wife and daughter were honored guests at the Temple Israel event.
The following is an excerpt from U.S. Attorney Ritz’s remarks as prepared for delivery:
“As federal law enforcement, we have a fundamental obligation to protect the right of each person to dwell in their home, work at their job, jog down a street, shop at a store and engage in acts of daily living without fear of attack based on how they look, where they are from, how they worship or who they love.
From Charleston to Charlottesville to Pittsburgh to El Paso to Buffalo—the threat of hate-based and extremist violence is real. My oath commands me to protect our country from threats foreign and domestic. I’m going to do that.
But we can’t fight what we can’t find.
When hate crimes go unreported, it becomes more difficult for law enforcement agencies to allocate resources for the fight. If there aren’t enough officers to investigate, or prosecutors to try those cases, people may never see justice served.
That’s why we were so proud earlier this summer to announce our district’s new National Security and Civil Rights Unit. We now have a dedicated team of prosecutors within the Criminal Division focusing on prosecuting hate-based crimes, civil rights violations, violent extremism, and related crimes. This is a major part of our mission and deserves to always have a clear, formal home in our office.
But staying silent in the face of hate crimes and incidents also sends a chilling message to our neighbors of various races, religions, and genders: that what happens to them isn’t important. That they don’t matter.
Nothing could be further from the truth.
Instead, I want to urge you to take action. You can help us to prevent hate crimes from happening, hold people who commit acts of hate accountable for their actions, and support those who have been targeted.
Over the weekend, Rabbi Greenstein wrote in a local publication about the significance of Yom Kippur. He wrote that ‘the big idea is that what God cares about most is not that a person believes what is right, but that a person does what is right.’
We work hard every day in my office to do the right thing. As you listen to the presenters today, I want you remember that our work begins with raising awareness on attacks against people based on prejudice, bias, and hate.”
Community organizations or leaders that wish to partner with the United States Attorney’s office to explore holding such an event in their community should contact the District at 901-544-4231.
Anyone who feels they have been the victim of a hate crime or may have witnessed a hate crime should immediately report the crime to state or local police by dialing 9-1-1, then quickly report the incident to the FBI at tips.FBI.gov or by calling 1-800-CALL-FBI (1-800-225-5324). Next, please report the incident to the Department of Justice’s Civil Rights Division at civilrights.justice.gov or by contacting the Civil Rights Coordinator in the Civil Division at the U.S. Attorney’s Office at 901-544-4231.
U.S. Attorney Christopher R. Kavanaugh Appointed to Serve on Attorney General Merrick B. Garland’s Advisory CommitteeRead the Press Release
CHARLOTTESVILLE, Va. – Attorney General Merrick B. Garland has appointed United States Attorney Christopher R. Kavanaugh of the Western District of Virginia to serve on the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). The AGAC was created in 1973 and advises the Attorney General on matters of policy, procedure, and management impacting the Offices of the U.S. Attorneys and elevates the voices of U.S. Attorneys on essential matters facing the Department of Justice.
“I am honored to have been selected by Attorney General Garland to serve on the AGAC,” said United States Attorney Christopher Kavanaugh. “Working collaboratively with other United States Attorneys from across the country to collectively shape Department policy and reaffirm the rule of law has been one of the most rewarding aspects of this job. I appreciate having the opportunity to amplify the contributions our team here in the Western District of Virginia is making toward achieving the Department’s core priorities of upholding the rule of law, keeping our country safe, and protecting civil rights.”
Mr. Kavanaugh was appointed by the President Biden and sworn in as United States Attorney on October 7, 2021. As United States Attorney, Mr. Kavanaugh is the chief federal law enforcement officer in the Western District of Virginia. He also serves as chair of the Terrorism and National Security Subcommittee to the Attorney General’s Advisory Committee and co-chair of the Domestic Terrorism Executive Committee.
Prior to his nomination, Mr. Kavanaugh had been an Assistant United States Attorney for 14 years, having served in United States Attorney’s Offices for both the Western District of Virginia and the District of Columbia. During his career, Mr. Kavanaugh directed numerous multi-agency investigations and prosecutions, with a focus on national security, civil rights, white-collar crime, and violent crimes involving racketeering and homicides.
The AGAC is comprised of 14 United States Attorneys, and U.S. Attorney Kavanaugh will serve alongside the Committee’s Chair: U.S. Attorney Damian Williams (SDNY), Vice-Chair: U.S. Attorney Gary Restaino (DAZ), as well as U.S. Attorney Darcie McElwee (DME), U.S. Attorney Trini Ross (WDNY), U.S. Attorney Eric Olshan (WDPA), U.S. Attorney Brandon Brown (WDLA), U.S. Attorney Dawn Ison (EDMI), U.S. Attorney Gregory Harris (CDIL), U.S. Attorney Andrew Luger (DMN), U.S. Attorney Natalie Wight (DOR), U.S. Attorney Alexander Uballez (DNM), U.S. Attorney Ryan Buchanan, (NDGA), and U.S. Attorney Matthew Graves (DC).
Two Defendants Sentenced for their Roles in Money Laundering ConspiracyRead the Press Release
LEXINGTON, Ky. —Two men who participated in a far-reaching conspiracy to launder drug proceeds were sentenced on Friday, by Chief U.S. District Judge Danny C. Reeves. Anthony Scott Cossu, 29, of Olympia, Washington, was sentenced to 70 months in federal prison and ordered to forfeit $204,265.00 in money that was proceeds of drug trafficking. Felipe Martinez, age 25, of Los Angeles, California, was sentenced to 60 months in federal prison and ordered to forfeit $347,828.00 that was drug proceeds.
According to their plea agreements, Cossu and Martinez engaged in a money laundering scheme, with six additional defendants, which included criminal activities in Lexington, Chicago, and elsewhere, during the conspiracy. Cossu was responsible for $765,065.00 in laundered funds, while Martinez was held accountable for $347,828,00. Cossu, Martinez, and others, delivered bulk cash drug proceeds to others for conversion to cryptocurrency and transferred to other conspirators based in Mexico. A total of 26 kilograms of cocaine was also seized during the investigation, as well as 3 firearms.
Cossu and Martinez’s four co-defendants have previously been sentenced for their roles. Carlos Gonzalez received 97 months in prison and three years of supervised release; Rudy Guerrero received 80 months and three years of supervised release; Warren Miller received 24 months and three years of supervised release; and Oscar Alberto Palacios Espericuete received 30 months and three years of supervised release.
Under federal law, Cossu and Martinez must serve 85 percent of their prison sentences. After their release from prison, they will be under supervised release for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division, jointly announced the sentences.
The investigation was conducted by the DEA. The United States was represented in the case by Assistant U.S. Attorney Todd Bradbury.
This operation 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.
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Tucson Woman Sentenced to 20 Years for Second Degree MurderRead the Press Release
TUCSON, Ariz. – Yvette Naomi Garcia, 36, of Tucson, Arizona, was sentenced on Tuesday by United States District Judge Scott H. Rash to 20 years in prison, followed by five years of supervised release. Garcia pleaded guilty to Second Degree Murder.
On December 26, 2021, Garcia, an enrolled member of the Pascua Yaqui Tribe, murdered a Pascua Yaqui woman by intentionally running her over multiple times with a vehicle. The offense occurred on the Pascua Yaqui Indian Reservation in Tucson, Arizona.
The FBI and the Pascua Yaqui Police Department conducted the investigation in this case. Assistant U.S. Attorneys Frances M. Kreamer Hope and Scott A. Turk, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR 22-0525-TUC-SHR (BGM)
RELEASE NUMBER: 2023-144_Garcia# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Toledo man Sentenced to over 26 years for Coercion and Enticement of a Minor and Drug TraffickingRead the Press Release
TOLEDO – Derrick Murphy, 40 of Toledo, Ohio was sentenced to 320 months imprisonment by U.S. District Judge Jeffrey Helmick after earlier pleading guilty to enticement of a minor and drug charges. Judge Helmick also ordered Murphy to serve 10 years of supervised release upon release from imprisonment.
Murphy was sentenced to 180 months for his role in a drug conspiracy and for distributing and possessing with intent to distribute narcotics. According to court documents, in late July 2019, FBI agents in Toledo, Ohio received information from FBI agents in San Diego, California and Charlotte, North Carolina that a courier for a Sinaloa Mexico based drug trafficking organization had been identified bringing kilogram quantities of cocaine, heroin, and fentanyl to Toledo. Further investigation by the Toledo agents identified Murphy as the local distributor leader. After a lengthy investigation, agents in late April 2021 received information that Murphy was expecting another large shipment of suspected fentanyl to be delivered. After surveillance, a subsequent traffic stop led to the seizure of approximately 5 kilograms of fentanyl and $17,515 in U.S. currency from members of Murphy’s organization. Subsequent federal search warrants resulted in the seizure of additional quantities of fentanyl, heroin, cocaine, and methamphetamine. Murphy was also sentenced to 140 months for coercing and enticing a minor to engage in the production of sexually explicit materials from December 2020 to May 2021. Both sentences were ordered to be served consecutive to each other.
This case was investigated by the FBI in conjunction with the Toledo Metro Drug Task Force and the Toledo Human Trafficking and Child Exploitation Task Force. The case was prosecuted by Assistant United States Attorney Alissa Sterling.
Toledo Man Sentenced for Multiple Bank Robberies in Michigan and OhioRead the Press Release
TOLEDO – United States Attorney Rebecca C. Lutzko announced that Scott Kelly Hansen, 63, of Toledo, OH, was sentenced to 348 months imprisonment by U.S. District Judge Jack Zouhary after earlier pleading guilty to two bank robberies in Ann Arbor, Michigan and one in Norwalk, Ohio. Hansen was also ordered to pay $44,908.73 in restitution and serve a 5-year term of supervised release upon release from imprisonment.
According to court documents, on July 16, 2022, Scott Kelly Hansen entered the Chase Bank on East Stadium Boulevard in Ann Arbor, Michigan wearing a mask and baseball cap. Hansen approached the teller, while no other customers were in the bank, and said “This is a bank robbery, give me all your cash… including the reserves.” Hansen then patted the area beneath his shirt at his waist, which the teller understood to mean he was implying a weapon. The teller produced approximately $20,000 in cash and gave it to Hansen who fled the bank.
Then on July 19, 2022, Hansen entered the Fifth Third Bank on Washtenaw Avenue in Ann Arbor, Michigan wearing similar clothing and a mask. Hansen drew a pistol, pointed it at both tellers, and said, “Give me all you have.” The teller produced approximately $15,000 in cash, which Hansen took and left. Days later, Hansen returned to the same Fifth Third Bank, but fled once he was recognized by a teller.
On August 25, 2022, Hansen entered Civista Bank in Norwalk, Ohio armed with a pistol, wearing similar clothing and a mask. Hansen ordered everyone to get down on the ground and aimed the pistol at customers and tellers. Hansen then went behind the counter and demanded cash from the drawers and dispensing machines. Hansen said he was just there for the money and didn’t want anyone to get hurt. After growing frustrated with how slowly the teller was retrieving bills from the dispensing machine, Hansen grabbed two plastic money containers from the machine and fled the bank with approximately $82,000. As he left, Hansen instructed everyone to “Stay on the floor. Don’t get up. Don’t watch out the windows.” Customers called 911 and Hansen was apprehended. In Hansen’s vehicle officers found cash and a loaded 9 mm semi-automatic pistol.
This case was investigated by the Federal Bureau of Investigation, the Norwalk Police Department, and the Ann Arbor Police Department. It is being prosecuted by Assistant U.S. Attorneys Ava Rotell Dustin and Matthew Simko.
Texas man charged in $400,000 shipping scam against FedExRead the Press Release
Memphis, TN – A federal grand jury in Memphis has returned a nine-count indictment against a Texas man for operating a mail scheme aimed at defrauding FedEx, a Memphis-based commercial carrier, out of more than $400,000.
According to the indictment, Robert W. Clark, 58, of Travis County, Texas has been charged with nine counts of mail fraud in violation of Title 18, United States Code, Section 1341. Each count carries a maximum sentence of 20 years imprisonment, a fine of $250,000, and a maximum of three years of supervised release following incarceration. There is no parole in the federal system.
Kevin G. Ritz, United States Attorney for the Western District of Tennessee, made the announcement today.
According to the indictment, from December 2019 until September 2022, Clark used mail forwarding services and FedEx drop boxes to ship 67 packages, later claimed that the packages had been lost, and filed claims with FedEx seeking reimbursement for their contents. Using the physical address of the mail forwarding service and a fictional name for the sender, Clark created the appearance of sending packages from Arizona, California, Mississippi, Nebraska, Pennsylvania, South Carolina, and Washington state. The indictment indicates the packages were instead deposited in FedEx drop boxes located in Texas and shipped through the company’s hub in Memphis.
In support of his claims, Clark submitted bogus invoices to FedEx placing the value of each package at $8,000 or more. The claims checks were forwarded to Clark and deposited into a bank account he controlled. FedEx paid claims on 44 out of the 67 packages Clark generated in the scheme, according to court records.
Clark was initially arrested in Texas and had his initial appearance in the Western District of Tennessee on September 25, 2023. His next court appearance is scheduled before U.S. District Court Judge Mark S. Norris on Thursday, October 19, 2023, at 9:45 a.m. at the Federal Building in Memphis.
The case is being investigated by the FBI. Assistant States Attorney Joe Murphy is prosecuting the case on behalf of the federal government.
Tennessee Woman Convicted of Federal Crimes Committed in the Talladega National ForestRead the Press Release
BIRMINGHAM, Ala. – A Tennessee woman was convicted of crimes committed in the Talladega National Forest, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton Peeples.
A federal jury returned a guilty verdict against Krystal Diane Pinkins, 37, of Memphis, Tennessee, after four days of testimony before Judge R. David Proctor. Pinkins was convicted of murder, robbery, and unlawful use of a firearm during a crime of violence.
“Today, the jury held the defendant accountable for her actions,” U.S. Attorney Escalona said. “I want to thank our local, state, and federal partners for their tireless efforts in this investigation and bringing justice to the victims and their families.”
“The victims of this terrible crime were simply being Good Samaritans” said FBI Birmingham SAC Peeples. “Today’s verdict sends a strong message that individuals who commit these crimes will be held accountable for their actions. I would like to thank the many local, state and federal resources that came together to seek justice for the victim. I hope today’s verdict can bring continued healing to the families and friends who will be forever impacted.”
According to court documents and trial testimony, on August 14, 2022, a couple who were college students from Florida, were driving to Cheaha State Park, in Clay County, Alabama, to hike to see the waterfalls. The couple were flagged down by Yasmine Marie Adel Hider, 21, to help “jump start” Pinkins’ car which was broken down. Hider robbed the young male and female and shot the male as he attempted to defend himself and his girlfriend. Evidence proved Pinkins aided in the crimes by providing the firearm, planning the robbery, and watching nearby in the woods as the robbery and murder took place. After the shooting, Pinkins fled into the woods and was found six hours later hidden in a secluded campsite.
The maximum penalty for murder and unlawful use of a firearm during a crime of violence is life in prison. The maximum penalty for robbery is 15 years in prison.
Hider, who testified in Pinkins’ trial, is scheduled to plead guilty before Judge R. David Proctor on October 4, 2023
The FBI and the Forest Service Law Enforcement Investigations - U.S. Department of Agriculture investigated the cases, along with assistance from the Alabama Law Enforcement Agency, Alabama State Park Rangers, Alabama Department of Conservation and Natural Resources, St. Clair Correctional Facility K9 Tracking Team, District Attorney of the 40th Judicial Circuit of the State of Alabama- Joseph “Joe” D. Ficquette (which includes Clay County), Clay County Sheriff’s Office, Cleburne County Sheriff’s Office, Lineville Police Department, Ashland Police Department, Clay County Rescue Squad, Shinbone Valley Volunteer Fire Department, Tri-County Children’s Advocacy Center, and Jacksonville State University Center for Applied Forensics. Assistant U.S. Attorneys Jonathan Cross and John B. Felton are prosecuting the case.
South Carolina Physician and Nephrology Practice Agree to Pay over $585,000 to Settle Laboratory Kickback AllegationsRead the Press Release
Moustafa Moustafa, M.D. and his medical practice, South Carolina Nephrology and Hypertension Center Inc., of Orangeburg and Bamberg, South Carolina, have agreed to pay $585,540 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute in return for referring patients for laboratory testing. Dr. Moustafa and his practice have agreed to cooperate with the Justice Department's investigations of, and litigation against, other participants in the alleged kickback schemes.
“Financial inducements to healthcare providers can influence medical decisions and undermine the integrity of public healthcare programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to hold accountable those who participate in kickback arrangements, including unlawful arrangements involving clinical laboratory testing.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlement announced today resolves allegations that Dr. Moustafa and his practice received kickbacks in violation of the Anti-Kickback Statute in return for Dr. Moustafa’s laboratory referrals and caused the submission of false or fraudulent claims to Medicare and TRICARE.
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Office Rent and Phlebotomy Kickbacks. From June 2017 to December 2021, Dr. Moustafa and his practice allegedly received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments, paid monthly or in a lump sum money order, from a clinical laboratory in Anderson, South Carolina, in return for Dr. Moustafa’s laboratory referrals.
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Clinical Staff Kickbacks. From August 2020 to December 2022, Dr. Moustafa and his practice allegedly received from a clinical laboratory in Kenilworth, New Jersey, remuneration in the form of free clinical staff to provide services to Dr. Moustafa’s practice unrelated to that laboratory, in return for Dr. Moustafa’s referrals for laboratory testing.
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Consulting and Medical Director Kickbacks. From September 2019 to March 2023, Dr. Moustafa allegedly received from marketing company Ralston Health Group Inc. (Ralston) thousands of dollars in remuneration disguised as consulting and medical director payments, paid monthly, in return for Dr. Moustafa ordering clinical laboratory services from five laboratories. The settlement resolves allegations that Ralston kicked back to Dr. Moustafa a portion of the commissions those five laboratories paid to Ralston, in return for Dr. Moustafa ordering laboratory testing from those laboratories.
“Rooting out healthcare fraud is a priority in the District of South Carolina,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Kickbacks raise costs for taxpayers and undermine our healthcare programs by leading to unnecessary medical services. We are committed to holding those who give and receive illegal kickbacks accountable.”
“Kickbacks have no place in our healthcare system,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Health care providers and clinical laboratories are on notice that benefits in exchange for referrals are improper, and may violate the Anti-Kickback Statute. We will continue to pursue those who enter into unlawful arrangements that waste taxpayer dollars and improperly influence healthcare providers’ medical judgments.”
“Healthcare providers who accept kickbacks can allow greed to influence their medical decision-making, putting patients and their healthcare programs at risk of harm,” said Special Agent in Charge Naomi Gruchacz of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to protect HHS programs from abuse and ensure that patient needs drive providers’ decisions.”
“Kickback schemes have no place in federal healthcare programs and will not be tolerated,” said Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “DCIS and our partner agencies continue to stand firm in our dedication to protect the integrity of these programs.”
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the Districts of South Carolina and New Jersey, with assistance from the Federal Bureau of Investigation, HHS-OIG and DCIS. The settlement announced today was handled by Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section), Assistant U.S. Attorney Beth C. Warren for the District of South Carolina and Assistant U.S. Attorney Kruti Dharia for the District of New Jersey.
The government’s pursuit of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Settlement-
South Carolina Doctor and Nephrology Practice Agree to Pay More Than $585,000 to Settle Laboratory Kickback AllegationsRead the Press Release
NEWARK, N.J. – A South Carolina doctor and his medical practice have agreed to pay more than $585,000 to resolve kickback allegations, U.S. Attorney Philip R. Sellinger for the District of New Jersey and Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, announced today.
Moustafa Moustafa M.D. and his medical practice, South Carolina Nephrology and Hypertension Center Inc., of Orangeburg and Bamberg, South Carolina, have agreed to pay $585,540 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute in return for referring patients for laboratory testing. Moustafa and his practice have agreed to cooperate with the Department of Justice’s investigations of, and litigation against, other participants in the alleged kickback schemes.
U.S. Attorney Philip R. Sellinger“Kickbacks have no place in our healthcare system. Health care providers and clinical laboratories are on notice that benefits in exchange for referrals are improper, and may violate the Anti-Kickback Statute. We will continue to pursue those who enter into unlawful arrangements that waste taxpayer dollars and improperly influence healthcare providers’ medical judgments.”
“Financial inducements to healthcare providers can influence medical decisions and undermine the integrity of public healthcare programs,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “We will continue to hold accountable those who participate in kickback arrangements, including unlawful arrangements involving clinical laboratory testing.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlement announced today resolves allegations that Moustafa and his practice received kickbacks in violation of the Anti-Kickback Statute in return for Moustafa’s laboratory referrals and caused the submission of false or fraudulent claims to Medicare and TRICARE.
- Office Rent and Phlebotomy Kickbacks. From June 2017 to December 2021, Moustafa and his practice allegedly received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments, paid monthly or in a lump sum money order, from a clinical laboratory in Anderson, South Carolina, in return for Moustafa’s laboratory referrals.
- Clinical Staff Kickbacks. From August 2020 to December 2022, Moustafa and his practice allegedly received from a clinical laboratory in Kenilworth, New Jersey, remuneration in the form of free clinical staff to provide services to Moustafa’s practice unrelated to that laboratory, in return for Moustafa’s referrals for laboratory testing.
- Consulting and Medical Director Kickbacks. From September 2019 to March 2023, Moustafa allegedly received from marketing company Ralston Health Group, Inc. (Ralston) thousands of dollars in remuneration disguised as consulting and medical director payments, paid monthly, in return for Moustafa ordering clinical laboratory services from five laboratories. The settlement resolves allegations that Ralston kicked back to Moustafa a portion of the commissions those five laboratories paid to Ralston, in return for Moustafa ordering laboratory testing from those laboratories.
“Rooting out healthcare fraud is a priority in the District of South Carolina,” U.S. Attorney Adair F. Boroughs for the District of South Carolina said. “Kickbacks raise costs for taxpayers and undermine our healthcare programs by leading to unnecessary medical services. We are committed to holding those who give and receive illegal kickbacks accountable.”
“Health care providers who accept kickbacks can allow greed to influence their medical decision-making, putting patients and their healthcare programs at risk of harm,” Naomi Gruchacz, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), said. “HHS-OIG is proud to work alongside our law enforcement partners to protect HHS programs from abuse and ensure that patient needs drive providers’ decisions."
“Kickback schemes have no place in federal healthcare programs and will not be tolerated,” Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office, said. “DCIS and our partner agencies continue to stand firm in our dedication to protect the integrity of these programs.”
The settlements were the result of a coordinated effort between the U.S. Attorney’s Offices for the District of New Jersey and South Carolina and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG, FBI, and DCIS.
The government is represented by Assistant U.S. Attorney Kruti Dharia of the U.S. Attorney’s Office, District of New Jersey, Opioid Abuse Prevention and Enforcement Unit, Assistant U.S. Attorney Beth C. Warren in the U.S. Attorney’s Office for the District of South Carolina, and Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section).
The government’s pursuit of these matters illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
moustafa.settlement.pdfSnohomish man sentenced to 17 years in prison for drug, gun, and murder-for-hire related chargesRead the Press Release
Tacoma – A Snohomish, Washington, man who was rearrested following his sentencing in a drug trafficking scheme, was sentenced to 17 years in prison for charges including attempting to hire a hitman to kill a witness in his case, announced Acting U.S. Attorney Tessa M. Gorman.
Michael John Scott, 44, was sentenced today to 17 years in prison for Conspiracy to Distribute Controlled Substances, Possession of a Firearm in Furtherance of Drug Trafficking, Use of Interstate Commerce Facilities in the Commission of Murder for Hire, and Tampering with a Witness, Victim, or Informant. At the sentencing hearing, U.S. District Judge Robert J. Bryan said, “Mr. Scott had a long history of drug dealing capped by using interstate facilities to attempt to commit murder for hire and tampering with a witness.” Judge Bryan called these crimes “most serious offenses.”
Scott was sentenced in January 2020 to 78 months in prison for dealing fentanyl-laced pills and cocaine. According to documents filed with the court, as Scott was awaiting sentencing for his earlier drug distribution crimes, he continued to set up drug deals. Prior to Scott being remanded to custody for his 78-month sentence, he attempted to execute a drug deal. On January 30, 2020, he was arrested as he arrived to sell fentanyl pills to a person in Whatcom County. That person was working with law enforcement.
Following the January 2020 arrest, while in custody at the Federal Detention Center in SeaTac, Washington, Scott agreed to pay an associate $2,000 if he would assist Scott in finding a hitman to kill a witness against him and an associate of that witness. Scott said he would pay $10,000 each for the murders. Scott told his associate that he wanted the deaths to appear to be fentanyl overdoses. In June and July 2021, Scott wrote letters disguised as ‘legal mail’ to the person he thought was the hitman and to a friend he wanted to handle payment for the crimes. Through that friend, Scott made the upfront agreed upon payment to someone who he believed to be a hitman.
Scott pleaded guilty in June 2019 for his role in U.S. v Hernandez et al, a 32-defendant drug trafficking case that was unsealed in December 2018. Scott was a high-volume redistributor of fentanyl-laced imitation oxycodone pills and cocaine, who delivered hundreds of thousands of dollars in cash to his cartel suppliers for the drugs–sometimes as much as $150,000 at a time. When Scott’s home was searched in December 2018, law enforcement recovered illegal drugs, more than $40,000 in cash, and other tools of the drug trade.
The case was investigated by the FBI, the Whatcom County Sheriff’s Office, and the Drug Enforcement Administration (DEA).
The case is being prosecuted by Assistant United States Attorneys Kristine Foerster and Max Shiner.
Sioux Falls Man Charged with Wire Fraud and Money LaunderingRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Sioux Falls, South Dakota, man for Wire Fraud and Money Laundering (Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity.)
Richard Kamolvathin, a/k/a Danuj Richard Kamolvathin, d/b/a Zolvent Pro, LLC, age 57, was indicted in August of 2023. He appeared before U.S. Magistrate Judge Veronica L. Duffy on September 12, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, three years of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning on or about October 13, 2020, and continuing through June 30, 2021, Kamolvathin knowingly devised a scheme to defraud where he fraudulently submitted two applications to the South Dakota Bureau of Finance and Management for Small Business Start-Up Grants for his business, Zolvent Pro, LLC. Kalmovathin’s grant applications and supporting documentation contained false statements, including the date of the registration of the business and the claimed business expenses. As the result, Kamolvathin received two grants: one for $350,000 and one for $13,800. Kamolvathin then used the funds for his own purposes, including the purchase of a luxury watch for $26,710.19.
The charges are merely accusations and Kamolvathin is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Department of the Treasury, Office of Inspector General, Office of Investigations. Assistant U.S. Attorney Ann M. Hoffman is prosecuting the case.
Kamolvathin was released on bond pending trial which has been set for February 20, 2024.
Settlement for $1.25 Million with Edgewater Systems for Balanced Living, Inc. for Fraudulently Billing the Indiana Medicaid ProgramRead the Press Release
HAMMOND - United States Attorney Clifford D. Johnson announced today a pre-suit settlement for $1.25 million to resolve civil claims of the United States of America and the State of Indiana against Edgewater Systems for Balanced Living, Inc., a healthcare provider in Gary, Indiana that provides mental health services, for fraudulently billing the Indiana Medicaid program.
The Indiana Medicaid program provides healthcare for low income, often uninsured, Indiana residents who cannot otherwise afford needed medical care. Indiana Medicaid is jointly funded by the United States and the State of Indiana. The case involves Indiana Medicaid’s requirement that, before conducting, and billing Indiana Medicaid for, mental health counseling sessions, the provider first must draft an Individualized Integrated Care Plan (Care Plan), and the Care Plan must be signed and approved by either a physician or a Health Service Provider in Psychology, which is a provider with a Ph.D. Degree in Psychology. Despite knowing of the requirement because of negative Indiana Medicaid audits during prior time periods, during the period from November 1, 2012 through and including December 31, 2017, Edgewater repeatedly billed Indiana Medicaid for mental health counseling sessions that failed to meet the requirement.
The False Claims Act prohibits an entity from knowingly submitting claims for payment to a Medicaid program that fail to comply with required billing standards. Under the False Claims Act such non-compliant billing constitutes a fraudulent claim even though services were in fact rendered. Edgewater has agreed to pay the United States and the State of Indiana $1.25 million for falsely billing Indiana Medicaid for the mental health counseling sessions.
The settlement was reached as a result of an investigation initiated by United States Attorney’s Office for the Northern District of Indiana with assistance from the Indiana Medicaid Fraud Control Unit within the Indiana Attorney General’s Office. Assistant United States Attorney Wayne T. Ault handled the settlement negotiations.
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Scotia Man Charged with Attempted Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Zachary Long, age 23, of Scotia, New York, was arrested on September 27 and charged with attempted coercion and enticement of a minor.
United States Attorney Carla B. Freedman and Alfred A. Watson, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
The criminal complaint alleges that between August 22, 2023 and September 27, 2023, Long exchanged text messages with someone in Albany. In these messages, Long expressed interest in engaging in sexual conduct with a minor child. Long and the other person discussed plans in which Long would meet the other person at a prearranged location in order to engage in sexual acts with the child. On September 27, 2023, Long was encountered by law enforcement at the prearranged location and arrested. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty
Long appeared yesterday before United States Magistrate Daniel J. Stewart, who ordered Long detained pending trial.
The charges filed against Long carry a mandatory minimum term of 10 years in prison, a maximum term of life in prison, a fine of up to $250,000, and a term of supervised release of at least 5 years and up to life. 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. Long would also have to register as a sex offender upon his release from prison.
This case is being investigated by the FBI and its Child Exploitation Task Force, including investigators from the Colonie Police Department, and is being prosecuted by Assistant United States Attorney Allen J. Vickey.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice/gov/psc/.
Santan Man Sentenced to over 17 Years for Shooting DeathRead the Press Release
PHOENIX, Ariz. – Fernando Ray White, 42, of Santan, Arizona, a member of the Gila River Indian Community, was sentenced on Monday by United States District Judge Diane J. Humetewa to 210 months in prison, followed by five years of supervised release. On December 9, 2019, White shot the victim multiple times, killing her. The defendant pleaded guilty on July 14, 2023, to Second Degree Murder.
The Gila River Police Department and the FBI conducted the investigation in this case. Assistant U.S. Attorneys Raynette Logan and Vinnie Lichvar, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00766-PHX-DJH
RELEASE NUMBER: 2023-143_White# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.San Antonio Business Owner and Associates Arrested for Defrauding SBA ProgramRead the Press Release
SAN ANTONIO – A Converse man and six alleged co-conspirators were arrested this week on criminal charges related to their alleged conspiracy to commit wire fraud.
According to court documents Aaron Sams, 39, owns and operates Sams Contracting Consulting and Training LLC. The indictment alleges he used his business to advertise and market a service to historically underutilized business zone (HUBZone) companies.
HUBZone is a Small Business Administration (SBA) program designed to provide federal contracting assistance for qualified small businesses to increase employment opportunities, investment and economic development in such areas. The program gives preferences in government contracting to businesses that qualify as a HUBZone small business. To qualify for the HUBZone program a business must maintain its principal office in an SBA-designated HUBZone and have at least 35% of its employees living in a HUBZone.
The indictment alleges that Beverly Smith, 40, of Converse; Jesus Rodriguez, 63, of San Antonio; Uchennaya Ogba, 35, of San Antonio; Kristin Harrison, 37, of Killeen; Jonathan Adams, 36, of Lawrenceville, Georgia; and Barbara Sanders, 41, of San Antonio, all conspired with Sams and his business to defraud the United States.
According to the indictment, Sams and Rodriguez worked together to identify a group of close friends and family who would serve as fake employees and provide them with personal identifying information such as their driver’s license and social security card. The fake employees, who are co-defendants in this case, are alleged to have known that Sams would send their information to companies in order to be placed on a particular company’s payroll, and each fake employee purportedly paid a kickback to Sams and/or Rodriguez of approximately 20 percent of each payroll deposit they would receive.
The indictment also alleges that Sams and his co-conspirators created email addresses for the fake employees using an email address at a domain that Sams had complete control of, and that Sams and Rodriguez would sanitize the fake employees’ resumes by removing real phone numbers and email addresses from the resumes to ensure that HUBZone companies could never contact any fake employees directly.
The seven defendants are each charged with one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the United States. If convicted, each defendant faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Oliver E. Rich, Jr. for the FBI San Antonio Division made the announcement.
The FBI is investigating the case with valuable assistance from the Department of the Air Force Office of Special Investigations; Department of Defense Office of the Inspector General’s Defense Criminal Investigative Service; Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office; Small Business Administration Office of General Counsel; Small Business Administration Office of Inspector General’s Central Region; U.S. General Services Administration Office of Inspector General; and the Naval Criminal Investigative Service.
Assistant U.S. Attorney Daphne Newaz 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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SW Georgian Sentenced in Americus Walmart Stolen Gun CaseRead the Press Release
ALBANY, Ga. – An Americus, Georgia resident prohibited from having a firearm because of past criminal convictions was sentenced to serve more than seven years in prison for illegally possessing a gun when he was arrested for stealing rifles from the local Walmart; he sold the guns in the community for cash and drugs.
Brandon Michael Hatfield, 31, was sentenced to serve 85 months in prison to be followed by three years of supervised release by U.S. District Judge Louis Sands on Sept. 28 after he previously pleaded guilty to illegal possession of a firearm by a convicted felon on May 25. Hatfield is not eligible for parole.
“Illegal firearms trafficking at any level is directly contributing to violence on our streets by supplying dangerous people with weapons,” said U.S. Attorney Peter D. Leary. “Law enforcement is working to reduce the number of firearms in the hands of criminals in an effort to improve the safety in Americus and within every community across the Middle District of Georgia.”
“The unlawful acquisition and selling of firearms are serious crimes that feed and intensify the violence that plagues so many communities here and abroad," said Assistant Special Agent in Charge Beau Kolodka. "This investigation illustrates the collective resolve of ATF and our law enforcement partners working together to make a safer community.”
According to court documents, Hatfield attempted to steal a Rossi, 22LR caliber rifle from the Walmart in Americus, Georgia, on Nov. 18, 2022, but was stopped by Walmart employees before he could exit the store with the weapon. An investigation by Walmart’s security team revealed that Hatfield stole a total of five rifles on five different occasions from the store between Nov. 1 and Nov. 16. Hatfield admitted that he stole the firearms and traded them for money and drugs.
Hatfield has been convicted of several felonies, including dealing methamphetamine, escape and residential entry in Decatur County, Indiana, Superior Court. It is illegal for a convicted felon to possess a firearm.
The case was investigated by ATF and the Americus Police Department. Assistant U.S. Attorney Matthew Redavid is prosecuting the case for the Government.
SMC Systems Inc. to Pay $2.35 Million to Resolve Allegations of False Statements Relating to Energy Star ProgramRead the Press Release
WASHINGTON – SMC Systems Inc., dba Skyetec, headquartered in Jacksonville, Florida, has agreed to pay $2.35 million to resolve allegations that it violated the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), between 2014 and 2021, by knowingly and intentionally making false statements to the Environmental Protection Agency (EPA) and other entities about the results of inspections it was performing under the EPA’s Energy Star Program. FIRREA imposes civil penalties on any person or entity that violates certain predicate federal statutes involving false statements and financial fraud. On July 15, 2021, Skyetec was acquired by Quality Built, LLC, and re-organized as SMC Systems LLC.
“EPA’s Energy Star program is an important vehicle for promoting energy efficiency and improving energy security,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “We will hold accountable those who undermine these critical objectives and seek to profit by knowingly failing to comply with the program’s requirements.
“The strength and integrity of the Energy Star program depends on accurate information provided by those who inspect and certify homes as energy efficient,” said U.S. Attorney Handberg for the Middle District of Florida. “The U.S. Attorney’s Office is committed to ensuring integrity in that process for both home buyers and financial institutions that assist borrowers in financing their homes, as well as holding accountable those who falsely certify Energy Star homes.”
“The integrity of the Energy Star program relies on an honest and transparent public-private partnership,” said Special Agent in Charge Nic Evans of the EPA Office of Inspector General (EPA-OIG). “These allegations and subsequent penalties send a clear message that oversight is imperative to bring to light partners that diminish the value of the Energy Star program.”
The Energy Star Program is a voluntary public-private partnership to identify and promote energy-efficient products and buildings, to reduce energy consumption, to improve energy security and to reduce pollution through labeling of, or other communication about, products and buildings that meet the highest energy conservation standards. As part of the Energy Star Program, the EPA oversees the Energy Star Home Certification Program along with RESNET, a private Home Certification Organization that accredits and audits rating providers. Under the Home Certification Program, newly constructed homes receive energy inspections and obtain Energy Star Certificates reflecting that the home meets the required energy efficiency standards. An essential feature of this program is third-party verification that the home meets energy efficiency standards set by EPA. EPA relies on rating providers, like Skyetec, to ensure that all homes certified as Energy Star meet all Energy Star requirements. The rating provider must sign a partnership agreement with the EPA and must report all homes certified as Energy Star to the EPA.
An essential component of the Energy Star Home Certification Program is a pre-drywall inspection to verify the presence and installation quality of a home’s insulation, alignment of air barriers, presence of prescribed framing and proper overall seal of a home. This is known as a “thermal bypass inspection.” The United States alleged that between 2014 and 2021, Skyetec knowingly and intentionally made false statements to the EPA, RESNET and others that it had properly performed these thermal bypass inspections when, in fact, it had failed to do so. Skyetec obtained both payment from a third party for a thermal bypass inspection and an Energy Star certificate from EPA based on the material misrepresentation that a thermal bypass inspection occurred. Skyetec reported information about these homes through internet platforms to both the EPA and RESNET as having satisfied Energy Star requirements when in fact they had not verified this through a thermal bypass inspection.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from EPA-OIG.
The matter was investigated by Senior Trial Counsel Don Williamson and Assistant U.S. Attorneys Lindsay Griffin, Charles Harden and Soma Nwokolo for the Middle District of Florida.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SMC Systems Inc. to Pay $2.35 Million to Resolve Allegations of False Statements Relating to Energy Star ProgramRead the Press Release
SMC Systems Inc., dba Skyetec, headquartered in Jacksonville, Florida, has agreed to pay $2.35 million to resolve allegations that it violated the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), between 2014 and 2021, by knowingly and intentionally making false statements to the Environmental Protection Agency (EPA) and other entities about the results of inspections it was performing under the EPA’s Energy Star Program. FIRREA imposes civil penalties on any person or entity that violates certain predicate federal statutes involving false statements and financial fraud. On July 15, 2021, Skyetec was acquired by Quality Built, LLC, and re-organized as SMC Systems LLC.
“EPA’s Energy Star program is an important vehicle for promoting energy efficiency and improving energy security,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “We will hold accountable those who undermine these critical objectives and seek to profit by knowingly failing to comply with the program’s requirements.
“The strength and integrity of the Energy Star program depends on accurate information provided by those who inspect and certify homes as energy efficient,” said U.S. Attorney Handberg for the Middle District of Florida. “The U.S. Attorney’s Office is committed to ensuring integrity in that process for both home buyers and financial institutions that assist borrowers in financing their homes, as well as holding accountable those who falsely certify Energy Star homes.”
“The integrity of the Energy Star program relies on an honest and transparent public-private partnership,” said Special Agent in Charge Nic Evans of the EPA Office of Inspector General (EPA-OIG). “These allegations and subsequent penalties send a clear message that oversight is imperative to bring to light partners that diminish the value of the Energy Star program.”
The Energy Star Program is a voluntary public-private partnership to identify and promote energy-efficient products and buildings, to reduce energy consumption, to improve energy security and to reduce pollution through labeling of, or other communication about, products and buildings that meet the highest energy conservation standards. As part of the Energy Star Program, the EPA oversees the Energy Star Home Certification Program along with RESNET, a private Home Certification Organization that accredits and audits rating providers. Under the Home Certification Program, newly constructed homes receive energy inspections and obtain Energy Star Certificates reflecting that the home meets the required energy efficiency standards. An essential feature of this program is third-party verification that the home meets energy efficiency standards set by EPA. EPA relies on rating providers, like Skyetec, to ensure that all homes certified as Energy Star meet all Energy Star requirements. The rating provider must sign a partnership agreement with the EPA and must report all homes certified as Energy Star to the EPA.
An essential component of the Energy Star Home Certification Program is a pre-drywall inspection to verify the presence and installation quality of a home’s insulation, alignment of air barriers, presence of prescribed framing and proper overall seal of a home. This is known as a “thermal bypass inspection.” The United States alleged that between 2014 and 2021, Skyetec knowingly and intentionally made false statements to the EPA, RESNET and others that it had properly performed these thermal bypass inspections when, in fact, it had failed to do so. Skyetec obtained both payment from a third party for a thermal bypass inspection and an Energy Star certificate from EPA based on the material misrepresentation that a thermal bypass inspection occurred. Skyetec reported information about these homes through internet platforms to both the EPA and RESNET as having satisfied Energy Star requirements when in fact they had not verified this through a thermal bypass inspection.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from EPA-OIG.
The matter was investigated by Senior Trial Counsel Don Williamson and Assistant U.S. Attorneys Lindsay Griffin, Charles Harden and Soma Nwokolo for the Middle District of Florida.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementRock Hill Man Sentenced to 7 Years in Federal Prison for Possessing a Firearm and AmmunitionRead the Press Release
COLUMBIA, SOUTH CAROLINA — Davon Thompson, 29, of Rock Hill, was sentenced to 7 years in federal prison after pleading guilty to felon in possession of a firearm and ammunition.
Evidence presented to the court showed that on August 31, 2020, Rock Hill Police Department officers responded to a report of a man with a gun. During their investigation, a loaded .45 caliber pistol was found in a diaper bag belonging to a woman who was on scene. Thompson later admitted to hiding the pistol in the diaper bag. Thompson’s federal sentence was enhanced in part due to arrests in November 2020 and August 2021 for possessing firearms and drug trafficking. In the August incident, Thompson admitted to possessing a firearm equipped with a gun sight and a high-capacity ammunition magazine.
Thompson was prohibited from possessing a firearm and ammunition due to previous state court convictions for burglary, failure to stop for a blue light, attempt to purchase oxycodone and possession with intent to distribute oxycodone.
Senior United States District Judge Joseph F. Anderson, Jr., sentenced Thompson to 84 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Rock Hill Police Department (RHPD), the Fort Mill Police Department (FMPD) and the York County Sheriff’s Office (YCSO). Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
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Rock Hill Man Sentenced to 15 Years in Federal Prison for Possessing a Firearm and AmmunitionRead the Press Release
COLUMBIA, SOUTH CAROLINA — Donnell S. Durham, 35, of Rock Hill, was sentenced to 15 years in federal prison after pleading guilty to felon in possession of a firearm and ammunition.
Evidence presented to the Court showed that on July 27, 2021, Rock Hill Police Department officers stopped a car with a suspended license tag. Durham was a passenger in the car. Officers smelled marijuana coming from the car and asked Durham and the others inside the car to step out. Officers soon learned that Durham had an outstanding arrest warrant. When officers tried to arrest Durham, he resisted arrest leading to a struggle between Durham and the officers over a loaded pistol Durham had hidden in his waistband. After officers gained control of the pistol, Durham was placed under arrest. Durham was also found to be in possession multiple drugs including methamphetamine, fentanyl, and cocaine.
Durham was prohibited from possessing a firearm and ammunition due to various state felony convictions. In 2012, Durham was convicted of attempted murder and aggravated assault and battery after striking one RHPD officer with a car and almost hitting another officer while trying to flee from the officers. In 2014, Durham was convicted of aggravated assault and battery after shooting another man. In 2016, Durham was convicted of possession with intent to distribute crack cocaine.
United States District Judge Sherri A. Lydon sentenced Durham to 180 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Department of Homeland Security, Homeland Security Investigations (HSI), the Rock Hill Police Department (RHPD) and the York County Sheriff’s Office (YCSO). Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
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Real Estate Executive Pleads Guilty to Multi-Year Conspiracy to Falsify Financial StatementsRead the Press Release
A California real estate executive pleaded guilty yesterday to engaging in an extensive multi-year conspiracy to falsify financial statements.
According to court documents, Tyler Ross, 37, formerly of Michigan, served as co-chief executive officer of ROCO Real Estate LLC and ROCO Management LLC, both of which are based in Bloomfield Hills, Michigan. The ROCO companies, and related entities, operated as a commercial real estate firm engaged in the business of purchasing, managing, and selling multi-family residential properties, such as apartment complexes, located in Michigan and elsewhere.
“Tyler Ross falsified corporate records to deceive lenders by fraudulently inflating the income of ROCO properties,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The guilty plea demonstrates the Department’s commitment to holding accountable those who lie to lenders and banks, including executives in commercial real estate.”
“Honest financial reporting is the foundation of our banking and lending system,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “My office will not hesitate to prosecute those who lie in order to engage in financial crimes, regardless of the titles they may have.”
Between 2015 and 2019, Ross and his co-conspirators caused false financial documents to be submitted to mortgage-lending businesses for underperforming ROCO properties, making the properties appear to be more profitable than they were. Ross, who is also a licensed attorney, personally falsified historical operating statements during the conspiracy and directed other members of the conspiracy to assist with the creation and submission of falsified financial statements to submit to mortgage-lending businesses. Ross and his co-conspirators deleted or reduced actual expenses from historical operating statements for certain underperforming ROCO properties and caused the falsified statements to be submitted to lenders.
“The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) aggressively investigates allegations of mortgage fraud,” said Special Agent in Charge Catherine Huber of FHFA-OIG’s Central Region. “We investigate and hold accountable anyone who has engaged in unlawful activities to illegally profit through the mortgage loan process, whether residential or commercial.”
“Those who willfully provide false financial information limit the amount of money that is available for individuals and companies who are doing the right thing,” said Special Agent in Charge Shawn Rice of the Department of Housing and Urban Development Office of Inspector General (HUD-OIG). “This case demonstrates HUD-OIG’s commitment to working with its law enforcement partners to investigate and hold accountable those who violate the law.”
“Mortgage fraud is a serious offense that affects lenders and borrowers alike,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “This case demonstrates the FBI’s continued commitment to protecting our banking and mortgage industry by going after anyone who obtains loans under false pretenses.”
Ross pleaded guilty to one count of conspiring to commit an offense against the United States. He is scheduled to be sentenced on March 12, 2024, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FHFA-OIG, HUD-OIG, and FBI are investigating the case.
Trial Attorneys Andrew Tyler and Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew J. Yahkind for the Eastern District of Michigan are prosecuting the case.
Readout of Department of Justice Federal/Tribal Regional Summit in the Twin Cities in MinnesotaRead the Press Release
The Justice Department’s Environment and Natural Resources Division (ENRD), Office of Environmental Justice and Office of Tribal Justice helped convene a Federal/Tribal Regional Summit in Minnesota’s Twin Cities on Sept. 26 and 27; the event was hosted by the Regional Solicitor’s office of the U.S. Department of the Interior. Summit participants also included Justice Department personnel from the Community Relations Service and Executive Office for U.S. Attorneys as well as Tribal nations representatives from Minnesota, Wisconsin, Nebraska, Michigan, Iowa and South Dakota.
Assistant Attorney General (AAG) Todd Kim of ENRD challenged the group to identify new ways to work together to support Tribal sovereignty and ensure the preservation of sustainable Tribal homelands.
“The United States supports Tribal sovereignty and self-determination and has a unique government-to-government relationship with Tribes,” he said. “And, like the U.S. Constitution and federal statutes, treaties are the supreme law of the land. This administration is fully committed to using all available authorities to protect Tribal treaty and reserved rights and to supporting Tribal efforts to strengthen Tribes’ resilience in responding to climate impacts that include erosion, drought, wildfires and rising sea levels.”
AAG Kim pointed to last week’s historic settlement of litigation by Tribes over management of the Columbia River System. AAG Kim noted that all parties hope the settlement “will further a comprehensive solution to restore salmon populations in the Basin while also advancing clean energy goals.”
The Summit featured an address by Midwest Regional Administrator Debra Shore of the Environmental Protection Agency as well as short presentations and in-depth discussions on environmental justice; Tribal treaty rights related to hunting, fishing and gathering of natural resources; Tribal jurisdictional issues; trespass on Tribal lands; identification and enforcement of environmental crimes; and climate adaptation strategies. Additional sessions focused on best practices for working with federal agencies on ensuring protection of Tribal rights and resources.
This meeting was the second of three Regional Summits planned for 2023, and follows national conversations with Tribes held in Washington, D.C., in November 2022 and Columbia, South Carolina, earlier this year. The Summits are intended to deliver on the promise in the Department’s Comprehensive Environmental Justice Enforcement Strategy to work with Tribal governments and other federal agencies to “address and incorporate Tribal concerns into the Department’s enforcement work.”
The next Regional Federal/Tribal Summit is scheduled for Oct. 15-17 in Albuquerque, New Mexico.
Pontotoc County Resident Sentenced for Abusive Sexual Contact and Sexual Abuse of A Minor in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nathan Dale Smith, age 33, of Pontotoc County, Oklahoma, was sentenced to 87 months in prison for one count of Sexual Abuse of a Minor in Indian Country and 24 months in prison for one count of Abusive Sexual Contact in Indian Country. The sentences were ordered to run concurrently.
The charges arose from investigations by the Federal Bureau of Investigation and the Ada Police Department.
On September 9, 2022, a federal jury found Smith guilty of Sexual Abuse of a Minor in Indian Country and Abusive Sexual Contact in Indian Country. During the trial, the United States presented evidence that Smith sexually abused a female child under the age of 16 over the course of two years. Once the abuse was disclosed, the Defendant sent an incriminating text message to the victim’s mother apologizing for his actions.
“I commend the Ada Police Department and the FBI for their cooperative work in investigating this case,” said United States Attorney Christopher J. Wilson. “Their efforts allowed Assistant United States Attorneys from our Special Victims Unit to obtain a measure of justice for the victim.”
The crimes occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Smith will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorneys Morgan Muzljakovich and Nicole Paladino represented the United States.
Physician Charged with Distributing A Controlled Substance Appears in Federal CourtRead the Press Release
CHARLOTTE, N.C. – A North Carolina physician appeared before U.S. Magistrate Judge Susan C. Rodriguez this morning on charges related to the alleged unlawful distribution of a controlled substance, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
A criminal indictment charging Henry Ronald Emery, Jr., M.D., 52, of Waxhaw, N.C., with one count of conspiracy to distribute controlled substances outside the bounds of professional medical practice, and 11 counts of distribution of controlled substances outside the bounds of professional medical practice was unsealed following Dr. Emery’s initial court appearance.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office, and Donald "Trey" Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, join U.S. Attorney King in making today’s announcement.
According to allegations contained in the indictment, from no later than September 2018 through in or about 2022, Dr. Emery, then a physician licensed to practice medicine in North Carolina, allegedly conspired with other persons to intentionally and unlawfully prescribe, dispense, and distribute, and did unlawfully prescribe, dispense, and distribute, a mixture and substance containing a detectable amount of buprenorphine, a Schedule III controlled substance. The indictment alleges that Dr. Emery engaged in the illegal distribution of buprenorphine on multiple occasions and while acting and intending to act outside the usual course of professional practice and not for a legitimate medical purpose.
If convicted, Dr. Emery faces a maximum penalty of 10 years in prison and a $500,000 fine on each count in the indictment.
The charges against Dr. Emery are allegations. A defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King thanked the DEA and IRS-CI for their investigation of the case.
Assistant U.S. Attorneys Nick J. Miller and William Bozin of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Philadelphia Man Sentenced to 30 Years in Prison for Enticement of A MinorRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Samuel Ernesto Mendez (29, Philadelphia) to 30 years in federal prison, followed by a lifetime of supervised release, for enticement of a minor to engage in sexual activity. The court also ordered Mendez to forfeit two cellphones and a gaming console, which were used to commit the offense. Mendez had pleaded guilty on March 31, 2023.
According to court documents, in February 2022, Mendez met the 12-year-old victim online. He chatted online with the child for four months before traveling to Orlando in June 2022 to engage in sexual activity with the child. While in Orlando, Mendez picked up the child in the middle of the night, took the child to a local hotel, drank alcoholic beverages with the child, and had sexual intercourse with the child. After returning to his home in Philadelphia, Mendez continued his inappropriate “relationship” with the victim with online written and video chats. Upon his arrest in December 2022, Mendez admitted to having an inappropriate relationship with the victim and traveling to Florida to see the victim.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Courtney D. Richardson-Jones.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Pell City Man Charged with Scheme to Defraud InvestorsRead the Press Release
BIRMINGHAM, Ala. – A Pell City man has been charged with a scheme to defraud investors in his various companies, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.
An information filed in United States District Court charges John Michael Golden, 48, with one count of wire fraud.
According to the information, Golden was the founder and owner of Wolf-Tek, LLC; MountainTop Timber, LLC; and DroneTek, Inc. The information alleges that between January 2018 and July 2022, Golden devised a scheme to persuade individuals to invest in his companies. He made various misrepresentations to the investors, including his businesses were about to be sold for millions of dollars to companies such as Amazon, he had timber leases and an ability to harvest timber for profit, and he had hundreds of pre-orders for drones that he simply needed capital to fulfill. Golden also gave some investors Promissory Notes in which he misrepresented his ability to repay. Golden defrauded investors in his companies of more than $3.5 million dollars. He used the funds to pay back prior investors and for personal expenses.
The maximum penalty for wire fraud is twenty years in prison.
The Federal Bureau of Investigation investigated the case. Assistant United States Attorney Ryan Rummage is prosecuting the case.
New Orleans Man Pleads Guilty to Violations of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – Today, U.S. Attorney Duane A. Evans announced that ALFRED CLAY, age 59, a resident of New Orleans, pled guilty on September 27, 2023 before United States District Judge Jane Triche Milazzo to a two-count indictment. Count One charged CLAY with conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine hydrochloride. Count Two charged CLAY with possession with intent to distribute five kilograms or more of cocaine hydrochloride, announced U.S. Attorney Duane A. Evans.
According to court documents, CLAY and other co-conspirators are responsible for the distribution of multi-kilogram quantities of cocaine, fentanyl, and heroin within the Eastern District of Louisiana.
During the investigation, law enforcement, led by the Drug Enforcement Administration, seized over forty (40) kilograms of cocaine hydrochloride, six (6) kilograms of frntanyl, four ans a half (4.5) kilograms of heroin and nearly $700,000.00 in U.S. Currency and other seized property.
As to each of the two charged counts, CLAY faces a mandatory minimum term of imprisonment of 10 years up to a maximum term of life, a fine of up to $10,000,000.00, at least five years of supervised release following any term of imprisonment, and a mandatory special assessment fee of $100.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This investigation was led by the Drug Enforcement Administration – New Orleans Field Division Office and was assisted by the Federal Bureau of Investigation, the United States Border Patrol, the Gretna Major Crimes Task Force, the Kenner Police Department, the Jefferson Parish Sheriff’s Office, the St. John’s Parish Sheriff’s Office, the Orleans Parish Sheriff’s Office, and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Nevada Residents Convicted of Participating in Sophisticated Wire Fraud Conspiracy That Targeted Elderly Victims in Western Pennsylvania and ElsewhereRead the Press Release
PITTSBURGH, PA – A jury convicted co-defendants Roderick Feurtado, 56, and Tarek Bouanane, 47, both of Las Vegas, Nevada, of conspiracy to commit wire fraud following a five-day trial in federal court in Pittsburgh, Pennsylvania, United States Attorney Eric G. Olshan announced today.
Evidence at trial established that the defendants traveled to the Pittsburgh area in September 2021 to execute a scheme to defraud elderly victims of large amounts of cash. As part of the scheme, members of the conspiracy contacted numerous victims and falsely claimed that a family member of the victims, usually a grandchild, had been detained in connection with a legal proceeding and needed money for bail. The victims were directed to withdraw cash and provide it to a “courier” who would visit them at their homes. In reality, the victims’ family members had not been detained, and the “courier” was actually a member of the conspiracy. Tarek Bouanane acted as one of these “couriers,” while his co-conspirator Roderick Feurtado acted as the “safehouse,” who gave directions to the couriers and collected the money that had been obtained from the victims. The defendants kept a portion of the fraud proceeds for themselves, and they had plans to pass along the rest to other co-conspirators, including by converting it to cryptocurrency. During the investigation, the Pennsylvania State Police seized approximately $220,000 from the defendants; the co-conspirators were responsible for at least $250,000 in total victim losses in the Western District of Pennsylvania and elsewhere as a result of the conspiracy.
“The evidence in this case showed that Bouanane and Feurtado participated in a sophisticated scheme that preyed on elderly victims who were tricked into handing over thousands of dollars in cash because they thought they were helping a loved one who was in trouble,” said U.S. Attorney Olshan. “The jury’s quick verdict provides a measure of justice for the victims in this case and should serve as a reminder that our office and our law enforcement partners will continue to hold accountable those who would victimize the most vulnerable members of our communities.”
“Feurtado and Bouanane represent the worst that society has to offer. They prey upon the love and concern that our amazing senior citizens have for their families,” said Special Agent in Charge of HSI Philadelphia William S. Walker. “HSI Philadelphia is extremely proud of our special agents in the Pittsburgh office. Once again, they have proven that through cooperation and side by side investigations with the United States Attorney’s Office in the Western District of Pennsylvania, the Pennsylvania State Police, and the Bethel Park Police Department, law enforcement can and will protect our most valuable and treasured citizens.”
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorneys Jeffrey R. Bengel and Michael R. Ball prosecuted this case on behalf of the government.
The Department of Homeland Security Investigations, Pennsylvania State Police, and Bethel Park Police Department conducted the investigation leading to the convictions in this case.
Montgomery Man Convicted of Illegally Possessing Ammunition Used During Shooting at Gas StationRead the Press Release
Montgomery, Alabama – On September 28, 2023, a federal jury convicted Maricas Rondell Taylor, 40, from Montgomery, Alabama, on one count of unlawfully possessing ammunition after being convicted of a felony offense, announced United States Attorney Sandra J. Stewart.
According to court records and evidence presented during his trial, on September 30, 2022, Taylor and a cousin entered a gas station on West Fairview Avenue in Montgomery. Taylor’s cousin had been previously barred from entering the store. When the clerk informed the cousin that she was not allowed inside, Taylor became upset and got into a verbal altercation with the clerk. Taylor then left the premises. About 45 minutes later, Taylor returned to the store and again confronted the clerk. Surveillance video from inside the store showed Taylor pulling a gun from his pocket and firing multiple times at the clerk. The clerk was able to seek cover behind the counter and avoid being struck by the bullets fired by Taylor.
During the investigation, law enforcement recovered shell casings from the store. In finding Taylor guilty, the jury determined that the shell casings recovered from the scene came from ammunition possessed by Taylor during the shooting. Taylor has a previous felony conviction and is prohibited by federal law from possessing a firearm or ammunition.
Following the guilty verdict, Taylor faces a sentence of up to 15 years in federal prison. A sentencing hearing will be scheduled for Taylor in the coming months. There is no parole in the federal system.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Montgomery Police Department investigated this case, with Assistant United States Attorneys Brandon W. Bates and Michelle R. Turner prosecuting.
Mobile Check Fraudsters and Identity Thieves Sentenced in Federal CourtRead the Press Release
MOBILE, AL – More than a dozen defendants from Mobile were sentenced for their roles in an organized scheme to commit bank fraud and identity theft. The leader of the scheme was sentenced to 102 months in federal prison.
According to court documents, Arrington Jaylun Gardner, 22, led a ring of individuals that committed widespread fraud and identity theft involving checks stolen from the U.S. mail, which the defendants later altered and deposited at various financial institutions. The fraudulent checks bore the personal identifying information of numerous victim businesses and individuals in the Mobile area and elsewhere. Gardner and his coconspirators used social media and other means to recruit individuals with accounts at various banks, who provided their account information, debit cards, and other support to Gardner to further the scheme. Victims of the scheme suffered more than $125,000 in financial losses.
Federal agents executed a search warrant at Gardner’s apartment in Mobile in July 2022, recovering dozens of altered and stolen checks, fake identifications, counterfeiting tools, stolen vehicles, and more than $2,600 in cash. Agents also uncovered evidence that Gardner had used the stolen identity of a victim in New Jersey to finance and purchase luxury automobiles at a car dealership in Mobile, causing more than $75,000 in losses. Gardner pleaded guilty to two separate conspiracies to commit bank fraud and aggravated identity theft.
In addition to the 102-month prison term, United States District Judge Terry F. Moorer ordered Gardner to serve a five-year term of supervised release upon his release from prison, during which time he will undergo drug testing and treatment, and will be subject to credit restrictions. The court did not impose a fine, but Judge Moorer ordered Gardner to pay $201,293.05 in victim restitution and $300 in special assessments, and forfeited $2,609.50 to the United States.
For their roles in the scheme, the court sentenced Gardner’s codefendants as follows: Reginald Martez Robinson, Jr. (46 months’ imprisonment); Johnathan Earl Kyser (36 months’ imprisonment); Delvin Lee Andrews (33 months’ imprisonment); D’Undra Norwood (24 months’ imprisonment); Travis Ladell Morrissette (13 months’ imprisonment); Jimmy Dejuan Parnell (nine months’ imprisonment); Justin Deandre Betties (six months’ imprisonment); Barbara Jackson (six months’ imprisonment); Kenessa Denise Hackworth (one day in custody and 12 months’ home confinement); Markisha Jakeria Johnson (time served); Danquile Nakrica Westbrook (time served); and Calvin Davis (time served). The court also ordered each of those defendants to serve supervised release terms and pay restitution and special assessments.
Codefendants Jairice Lynn Shelton and Edmund Jamarquis Davis are scheduled to be sentenced in October 2023 and January 2024, respectively.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The United States Postal Inspection Service, United States Secret Service, Mobile Police Department, and Mobile County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
Mississippi Man Charged with Conspiracy to Commit Bank FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JOHN SPOSATO, age 72, a resident of Kiln, Mississippi, was indicted for conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 371 and 1344.
According to the indictment, SPOSATO opened a financial account at Keesler Federal Credit Union (“ Keesler”)in the name of Pegasus Consulting and Development, LLC (“Pegasus Consulting”), a company of which he claimed to be President. In early March 2023, SPOSATO received a $10,000.00 check he knew to be counterfeit from a co-conspirator. The check was purportedly drawn on the financial account of a non-profit organization that supported a public library in Florida. On about March 27, 2023, SPOSATO attempted to deposit the counterfeit check into his financial account at Keesler, thereby placing Keesler at risk of civil liability and financial loss. SPOSATO knew both that he was not entitled to the check and had never performed work for the non-profit.
SPOSATO faces a maximum term of imprisonment of five (5) years in prison, up to three (3) years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Probation Office in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
Maryland Resident Charged with Preparing and Submitting Fraudulent Applications for Cares Act Financial AssistanceRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MARCEL GAVIN, age 36, a resident of Odenton, Maryland, was indicted today for conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 371 (Count One), and wire fraud, in violation of Title 18, United States Code, Section 1343 (Count Two), for his role in preparing and filing false applications for loans related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
According to the indictment, between about April 19, 2021, and May 20, 2021, GAVIN, his significant other (Shaniqua Wilson), and a third individual, Siedah Eley, recruited friends and family members, primarily via word of mouth and text message, to participate in a scheme to fraudulently obtain money from Paycheck Protection Program (PPP) loans with her assistance. They then created and electronically submitted loan applications, that falsely claimed that each applicant had a sole proprietorship in the beauty industry that generated substantial income from such business. GAVIN, Wilson, and Eley charged some of the applicants she recruited up to approximately $5,000.00, once the PPP loan was funded. Among the individuals for whom they filed a false PPP application was a resident of Metairie, Louisiana, who was then employed with a City of New Orleans agency.
GAVIN faces a maximum term of imprisonment of five (5) years as to Count One and twenty (20) years as to Count Two. GAVIN also faces three years of supervised release, up to a $250,000 fine, and a $100 mandatory special assessment fee per count.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Integrity Unit, is in charge of the prosecution.
Man with Lengthy History of Violence Sentenced to More than 15 Years in Federal Prison for Unlawfully Possessing FirearmsRead the Press Release
A man with a lengthy criminal history was sentenced September 27, 2023, to more than 15 years in federal prison.
Marlo Harper, aka Umar Amir Al-Sayyaad Allahdheen, age 46, from Sioux City, Iowa, received the prison term after a March 13, 2023, guilty plea to two counts of possession of a firearm by a felon and drug user and twice violating the Armed Career Criminal Act, a federal law that increases the punishment for violent recidivists. After a jury was selected, but before testimony began, Harper pled guilty and admitted that on two separate occasions in August 2021, he unlawfully possessed firearms.
Evidence in the case revealed on August 10, 2021, Harper was stopped by Sioux City Police for traffic infractions. Upon contact with the occupants in the vehicle, the officer detected an odor of marijuana emitting from the vehicle. The occupants were removed, and a subsequent search of the vehicle was conducted. When Harper exited the vehicle, he admitted having a firearm and a knife on his person. A loaded handgun – with a round in the chamber – was removed from his waistband. Officers also located a fanny pack in the trunk that contained ammunition. Harper also had an open container of alcohol.
On August 24, 2021, Harper was stopped by Iowa State Patrol outside of Sheldon, Iowa. When the State Trooper contacted the occupants, he noted an odor of marijuana emitting from the vehicle. During the traffic stop investigation, approximately 2 grams of marijuana was found, along with a loaded handgun in the center console, which was positioned for easy access by Harper, who was driving the car. Harper also had a set of nunchucks between the driver seat and center console. Three additional firearms were found in the trunk, as well as ammunition and a samurai sword.
Harper’s criminal history includes Assault in the 1st Degree, in Hennepin County, Minnesota; Assault in the Second Degree, in Ramsey County, Minnesota; Two counts of Aggravated Assault (Family Violence), Terroristic Threats, Possession of a Firearm or Knife During the Commission of a Felony and Battery – Family Violence, all in Fulton County, Georgia; and Theft, in Tarrant County, Texas.
Harper was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 198 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
This case was investigated by the Iowa State Patrol, the Iowa Department of Narcotics Enforcement, the O’Brien County Sheriff’s Office, and the Sioux City Police Department. The case was prosecuted by Assistant United States Attorneys Ron Timmons and Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4085.
Follow us on Twitter @USAO_NDIA.
Man indicted for blowing up ATMRead the Press Release
ATLANTA – Abdurrahim Jalal has been indicted for blowing up a bank automated teller machine and for possession of illegal explosive devices.
“The unlawful use and possession of explosives creates a grave danger to our citizens and first responders who must risk their lives to respond to these violent crimes,” said U.S. Attorney Ryan K. Buchanan. “This indictment is the culmination of investigative work conducted by a team of federal and local law enforcement agencies who recovered bombing materials from Jalal’s home and may have prevented additional explosions.”
“The alleged actions of this individual could have led to innocent people being seriously hurt or killed,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This investigation is proof of the strength and tenacity of the FBI and its law enforcement partners in eliminating acts of violence which threaten the communities we serve.”
“ATF will continue to dedicate federal resources in conjunction with crucial Federal and local law enforcement partners to the pursuit of eradicating and forestalling criminal activity in communities we serve,” said ATF Assistant Special Agent in Charge Alicia Jones.
“This indictment comes as a result of the strong partnerships that exist between local, state, and federal agencies. Working together we can continue to keep our streets safe,” said DeKalb Police Chief Mirtha V. Ramos.
According to U.S. Attorney Buchanan, the charges and other information presented in court: At approximately 3:11 a.m. on March 29, 2023, Jalal blew up an ATM at the Bank of America branch located at the North DeKalb Mall in Decatur, Georgia. Jalal took approximately $88,000 from the vault of the machine after the explosion. Investigators identified Jalal and obtained a warrant to search his home. They found additional destructive devices during that search.
Abdurrahim Jalal, 53, of DeKalb County, Georgia, was indicted by a federal grand jury on September 12, 2023, and had his initial appearance on September 27, 2023. Members of the public are reminded that the indictment contains only charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case was investigated by the Federal Bureau of Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, DeKalb County Police Department and the DeKalb County Fire Rescue.
Assistant U.S. Attorney Dash A. Cooper prosecuted the case.
This case was brought as a part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected].
Man Convicted of Fentanyl Conspiracy Charges, Drug-Linked Shooting Death in University CityRead the Press Release
ST. LOUIS – A man from East St. Louis, Illinois was convicted Friday by a jury in U.S. District Court of 11 felony charges linked to fentanyl trafficking, firearm sales and the shooting death of a man in University City in 2019.
Deoman Reeves, 31, was found guilty of all of the charges he faced: one count of conspiracy to distribute and possess with the intent to distribute in excess of 40 grams of fentanyl, four counts of possession with the intent to distribute fentanyl, three counts of possession of firearms in furtherance of a drug trafficking crime, two counts of being a felon in possession of a firearm and one count of possession of a firearm in furtherance of drug trafficking, resulting in death.
The investigation began with a September 2019 shooting. The University City Police Department requested the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Reeves and his co-defendants later sold fentanyl and firearms to those who were working on behalf of the Bureau of Alcohol, Tobacco, Firearms and Explosives and undercover ATF agents.
The death resulting charge stems from the Oct. 21, 2019 fatal shooting of David Anderson in the 1100 block of Kingsland Avenue. Evidence and testimony presented at trial showed that Reeves and others fired multiple shots at Anderson in retaliation for a shooting in St. Louis County the day before.
Reeves and two others were indicted on Jan. 6, 2020 and arrested eight days later. A fourth person was later added to the indictment. The three others have all pleaded guilty and two await sentencing.
Reeves is scheduled to be sentenced December 28 and faces a life sentence in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the University City Police Department investigated the case. Assistant U.S. Attorneys Paul D’Agrosa and Erin Granger are prosecuting the case.
Louisiana Bounty Hunter Convicted of Federal Kidnapping, Conspiracy Charges in MissouriRead the Press Release
ST. LOUIS – A bounty hunter from Louisiana was convicted of kidnapping and conspiracy charges Thursday for forcibly removing a woman from a St. Peters, Missouri home and taking her across state lines.
Jurors in U.S. District Court in St. Louis took less than two hours to convict Wayne D. Lozier Jr., now 44, of the New Orleans area, of the two felony counts.
Testimony and evidence presented at trial, including from Lozier’s body camera, showed that the victim had an arrest warrant from the 22nd Judicial District Court in St. Tammany Parish for two misdemeanor offenses. Lozier and his partner, Jody L. Sullivan, had been hired by A Affordable Bail Bonds as surety recovery agents to locate and retrieve the victim.
Sullivan rented an SUV and the pair traveled to St. Charles County. On May 9, 2019, both were armed with firearms and Tasers. Neither was licensed by Missouri’s Department of Commerce and Insurance to operate as surety recovery agents within Missouri. Without notifying local law enforcement, the pair went to the St. Peters home. Lozier told the homeowner he didn’t need her permission to enter the house. They went into the basement, where the Louisiana woman was staying. They handcuffed her and transported her without her consent in their SUV, heading for Louisiana, the trial showed.
At a gas station in Sullivan, Missouri the victim pleaded with employees to notify the police after learning that Lozier and Sullivan were not police officers. Lozier shocked the victim multiple times with a Taser and he and Sullivan dragged the victim out of the store by the chain that connected her handcuffs and leg shackles. Lozier told local police that he was a surety recovery agent and was licensed by the state of Louisiana.
While they were still in Missouri, a St. Peters Police Department officer told Lozier on a phone call that he was committing crimes and should return the victim to St. Peters or drop her off at the nearest law enforcement agency, according to testimony and evidence. Lozier refused, instead dropping her off at a Mississippi detention facility before returning home and collecting $500 plus expenses. The victim remained at the detention facility for about a week before she was released.
Sullivan, 56, of the New Orleans area, pleaded guilty Sept. 18, 2023, to the conspiracy and kidnapping charges and admitted unlawfully seizing the woman and transporting her across state lines.
Sullivan is scheduled to be sentenced December 20. Lozier is scheduled to be sentenced January 3. Both charges are punishable by up to life in prison.
The FBI and the St. Peters Police Department investigated the case. Assistant U.S. Attorneys Matthew Martin and Donald Boyce are prosecuting the case.Las Vegas Man Sentenced to Prison for Defrauding Thousands of Victims Out of $3.3 Million in Home Rental SchemeRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced today by United States District Judge Gloria M. Navarro to 44 months in prison followed by three years of supervised release for engaging in a fraudulent scheme that spanned numerous states and defrauded more than 3,500 victims seeking to rent houses out of approximately $3.3 million.
Norbert Ozemena Ikwuegbundo, also known as “David Okon Larry” and “Ezekiel Moses Azizi,” (31), a citizen of Nigeria, pleaded guilty in May 2023 to conspiracy to commit wire fraud, wire fraud, possession of document-making implements and authentication features, and concealment money laundering. In addition to imprisonment, Ikwuegbundo was ordered to pay $2,223,124.69 in restitution to victims.
According to court documents and admissions made by Ikwuegbundo, from about May 2018 until about September 2019, Ikwuegbundo, co-defendant Omoniyi Johnathan Omotere, and others conspired to fraudulently induce victims into sending them money through wire transfers. As part of the fraud, the conspirators manufactured counterfeit drivers’ licenses and other identification cards with fictitious names but bearing their own photographs. The conspirators assumed the identities of homeowners who were advertising on websites to rent their properties and posted imposter rental advertisements online at reduced rent prices, using the names and personal identifiers of the real homeowners — but changing the contact information to email addresses and phone numbers controlled by the conspirators. When contacted by potential renters, the conspirators requested that potential renters wire money for first and last month’s rent. Throughout the duration of the conspiracy, the conspirators used various lulling techniques, such as sending false rental agreements for victims to sign, so that they would have more time to pick up the wired money.
After collecting the fraudulently obtained funds, the defendants laundered proceeds from the scheme by purchasing salvaged titled vehicles in the United States and then shipped to and sold the vehicles in Nigeria. The profit from the sales was deposited into bank accounts controlled by Ikwuegbundo and Omotere. In total, the defendants fraudulently obtained more than $3.3 million from more than 3,500 victims.
United States Attorney Jason M. Frierson of the District of Nevada, Special Agent in Charge Christopher Miller of Homeland Security Investigations (HSI) Las Vegas, and Special Agent in Charge Gregory Anderson of the U.S. Department of State’s Diplomatic Security Service (DSS) Los Angeles Field Office made the announcement.
“Over the course of the conspiracy, the defendant repeatedly deceived and defrauded over 3,500 victims out of a total of $3.3 million,” said United States Attorney Frierson. “This case illustrates our continued efforts with law enforcement partners to pursue individuals who take advantage and steal from others. The restitution ordered will be returned to victims located across the country.”
“Today’s sentence holds Ikwuegbundo accountable for shamelessly defrauding thousands of victims of their hard-earned money,” said Special Agent in Charge Miller. “HSI Las Vegas will continue to prioritize investigations of those who prey on our community and are gratified with today’s sentencing. We appreciate the collaboration with our federal, state and local law enforcement partners to get fraudsters out of our communities.”
This case was investigated by HSI and DSS. Assistant United States Attorney Kimberly Frayn prosecuted the case.
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Kansas Man Pleads Guilty to Bank Robbery of Mound City BankRead the Press Release
KANSAS CITY, Mo. – An Ottawa, Kansas, man who was apprehended after he called a tow truck for his getaway car has pleaded guilty in federal court to robbing a Mound City, Mo., bank.
Marvin J. McWhorter III, 41, pleaded guilty before U.S. District Judge Greg Kays on Thursday, Sept. 28, to one count of bank robbery.
By pleading guilty, McWhorter admitted that he stole $4,445 from Citizens Bank & Trust, 904 State Street in Mound City, on Dec. 21, 2022.
According to his plea agreement, McWhorter approached a teller station at the bank and, while holding what appeared to be a handgun, directed the teller to give him all the money in the drawer. McWhorter ran out of the bank and got into a black Chevrolet Malibu with the word “CHEVY” in block white lettering across the top of the front windshield. Witnesses saw McWhorter drive away from the area.
The next morning, McWhorter called a St. Joseph, Mo., towing company to request a tow for the Malibu, which was in Forest City, Mo., about 13 miles southwest of Mound City. The tow driver picked up McWhorter at a nearby café and went to retrieve the vehicle.
A local public official, who had heard the vehicle description of the bank robbery suspect the day before, recognized McWhorter’s vehicle being towed and contacted law enforcement. The Holt County, Mo., Sheriff’s Department then contacted the tow company. Dispatch contacted the driver of the tow truck by phone to confirm that he was towing a black Chevrolet Malibu, with the word “CHEVY” in block white lettering across the top of the front windshield, through Oregon, Mo. Dispatch also confirmed that McWhorter was with the tow driver in the tow truck. Dispatch directed the tow driver to pull over and wait for law enforcement to arrive.
When the tow driver pulled over, McWhorter attempted to take control of the tow truck. McWhorter fought with the tow driver and a passerby who witnessed the altercation and had stopped to assist. The tow driver and passerby were able to get McWhorter to the ground and hold him until law enforcement arrived.
When officers arrested McWhorter, they found in the tow truck a cooler-type bag that contained $3,813 taken in the bank robbery. Officers also found additional evidence in the Malibu, including a box of 9mm ammunition, but no firearm.
Under federal statutes, McWhorter is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Gregg R. Coonrod. It was investigated by the Missouri State Highway Patrol, the Holt County, Mo., Sheriff’s Department, the Andrew County, Mo., Sheriff’s Department, the Mound City, Mo., Police Department, and the FBI.
Kalispell meth, fentanyl trafficker sentenced to 15 years in prisonRead the Press Release
MISSOULA — A Kalispell man accused of trafficking thousands of fentanyl pills and pounds of methamphetamine in the community was sentenced today to 15 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Justin Jose Romo, 30, pleaded guilty in June to possession with intent to distribute controlled substances.
U.S. District Judge Donald W. Molloy presided.
In court documents, the government alleged that from March 2022 to September 2022, a Northwest Drug Task Force investigation determined that Romo was distributing meth and fentanyl in the Flathead Valley. Investigators learned from sources that Romo was distributing pound quantities of meth, thousands of fentanyl pills and possessed firearms on multiple occasions.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case. The Northwest Drug Task Force conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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KC Man Charged with Three Fentanyl Deaths, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been charged with three fentanyl overdose deaths in Belton, Mo., alongside six other metropolitan area residents indicted by a federal grand jury for their roles in a drug-trafficking conspiracy that included illegal firearms and money laundering.
Tiger Dean Draggoo, 23, his brother, Colt Justin Draggoo, 20, Jose Amparan, also known as “Lil Mex” and “Jose Garcia,” 20, Luis Manuel Morales, also known as “Trulu,” “Lulu,” “Luis,” and “Luis Mor,” 23, all of Kansas City, Mo.; Andrew R.A. Williams, also known as “DrewB Grittin,” 22, of Grandview, Mo.; Alexander D. Barnett, also known as “Alex” and “Cobra,” 22, of Lee’s Summit, Mo.; and Javier Armanmdo Alvarez, also known as “Mexxican,” Gomi,” and “Gummi,” 21, of Kansas City, Kan., were charged in a 13-count superseding indictment returned under seal by a federal grand jury in Kansas City, Mo., on Wednesday, Sept. 27. That indictment was unsealed and made public today upon the arrest and initial court appearances of Barnett and Morales. Colt Draggoo also was arrested today and will have an initial court appearance tomorrow.
The superseding indictment replaces the original indictment returned on Feb. 7, 2023, which only charged Tiger Draggoo, and includes additional charges and defendants.
The federal indictment charges Tiger Draggoo with three counts of distributing fentanyl resulting in death. Tiger Draggoo allegedly distributed fentanyl on Sept. 3, 2022, the use of which caused the death of another person. Tiger Draggoo allegedly distributed fentanyl between Aug. 22 and Sept. 13, 2022, the use of which caused the death of another person. Tiger Draggoo allegedly distributed fentanyl between Dec. 7 and 20, 2022, the use of which caused the death of another person.
According to an affidavit filed in support of the original criminal complaint that was filed against Draggoo on Jan. 23, 2023, three Belton teenagers who were associated with Draggoo died from acute fentanyl intoxication. On at least three more occasions, the affidavit says, Belton police officers were called because a juvenile was under the influence of fentanyl (one of those juveniles, who turned 18 after being contacted by police officers, is among the three fentanyl deaths).
The indictment alleges that all seven defendants participated in a conspiracy to distribute fentanyl from Dec. 1, 2021, to May 3, 2023. The indictment also alleges that Tiger Draggoo, Alvarez, Amparan, Morales and Williams participated in a money-laundering conspiracy.
Tiger Draggoo is also charged with one count of possessing fentanyl with the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and one count of possessing an unregistered firearm. According to the indictment, Draggoo was in possession of a Jimenez Arms .380-caliber pistol, an Armscor .45-caliber pistol, a Taurus .357-caliber revolver, a Palmetto State Armory multi-caliber rifle, and a short-barreled Savage 12-gauge on Jan. 20, 2023. Those charges are related to Draggoo’s arrest on the federal complaint. Officers seized the fentanyl and firearms from Draggoo’s residence and vehicle when he was taken into custody.
Additionally, Tiger Dragoo is charged with one count of possessing fentanyl with the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and one count of illegally possessing machine guns. Those charges were basis of the original criminal complaint filed against Draggoo.
According to an affidavit filed in support of that complaint, police officers were conducting surveillance at an apartment complex on Sept. 22, 2022, when Tiger and Colt Draggoo left the apartment and got into a Jeep Renegade. Officers followed the Jeep and saw it commit numerous traffic violations while displaying erratic driving. A Jackson County sheriff’s deputy attempted to conduct a traffic stop, but the vehicle fled from the deputy.
A few minutes later, the Jeep returned to the apartment complex and Tiger and Colt Draggoo entered the apartment. Tiger Draggoo carried a large laundry bag from the apartment and placed it in the backseat of the Jeep. When a Jackson County, Mo., sheriff’s deputy drove into the parking lot, Tiger Draggoo ran back into the apartment building. When officers knocked on the door of Tiger Draggoo’s apartment, the affidavit says, his girlfriend initially told them he wasn’t there. After she allowed officers to enter the apartment, she admitted that Tiger Draggoo had run into the apartment and out the back door.
Officers searched the apartment and found 17 firearms, including two machine guns, ammunition of various calibers, $246,769 in cash, a ballistic vest with plates, a money counter, numerous pills that contained fentanyl, eight suspected LSD tabs, and marijuana. The 17 firearms included a Del-Ton 5.56-caliber rifle (converted into a machine gun), a Glock switch (used to convert a Glock pistol into a machine gun), three Marlin .22-caliber rifles, a Norinco 7.62-caliber rifle, a Mosin-Nagant rifle, an Anderson Manufacturing AM-15 .223-caliber rifle, a Mossberg 12-gauge shotgun, an Armscorp USA .308-caliber rifle, a Century Arms 7.62-caliber rifle, a Herbert Schmidt .22-caliber revolver, a New England Firearms .22-caliber revolver, a Kimber 9mm pistol, a Glock 9mm pistol, a Sig Sauer 9mm pistol, and a Metro Arms .45-caliber pistol.
Williams is also charged with one count of possessing fentanyl with the intent to distribute and one count of possessing firearms in furtherance of a drug-trafficking crime. Williams allegedly was in possession of a Springfield Armory 9mm semi-automatic handgun and a Girsan .45-caliber semi-automatic handgun on April 19, 2023.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Brad K. Kavanaugh and Robert Smith. It was investigated by the Jackson County Drug Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Belton, Mo., Police Department, the Raymore, Mo., Police Department, the Cass County, Mo., Sheriff’s Department, and the FBI.
Justice Department Sues Colorado for Violating the Americans with Disabilities ActRead the Press Release
The Justice Department sued the state of Colorado today for unnecessarily segregating adults with physical disabilities, including older adults, in nursing facilities in violation of the Americans with Disabilities Act (ADA) and the U.S. Supreme Court’s decision in Olmstead v. L.C. The department previously notified Colorado of its findings of civil rights violations in a March 2022 letter to Colorado Governor Polis. The letter identified steps that Colorado should take to remedy the identified violations.
“Far too often, people with physical disabilities – including older adults – are institutionalized in nursing facilities when they could live in their own homes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is steadfast in its commitment to protect the rights of people with disabilities and ensure the promise of community integration enshrined in the Americans with Disabilities Act.”
The ADA and the Olmstead decision require state and local governments to make their services for people with disabilities available in the most integrated setting appropriate to each person’s needs, regardless of their age or type of disability. These include services that help with bathing, dressing, managing medications and preparing meals. But many Coloradans with physical disabilities are denied a meaningful choice to receive the services they need in their own homes and communities, instead of in nursing facilities.
Many of Colorado’s Medicaid-funded nursing facility residents are interested in moving back to their homes and communities and could live at home successfully if the needed services were provided at home. Yet few Coloradans with physical disabilities who want to move out of nursing facilities, or who are at risk of having to enter nursing facilities, get these community-based State services. Most nursing facility residents are unaware of the services available to help them move to and live successfully in the community.
The Civil Rights Division’s Disability Rights Section investigated this case, with assistance from the U.S. Attorney’s Office for the District of Colorado.
For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov/topics/community-integration/.
For more information on the Civil Rights Division, please visit www.justice.gov/crt.
The letter of findings can be viewed here.
colorado_complaint_filed.pdfJustice Department Secures Settlement in Sexual Harassment Lawsuit Against Koreatown Property Manager and Apartment OwnerRead the Press Release
Settlement agreement can be viewed HERE.
LOS ANGELES – The Justice Department announced today an agreement to resolve a federal lawsuit alleging sexual harassment at an apartment building in Koreatown, where a property manager was accused of violating the Fair Housing Act by sexually harassed multiple female residents over a period of years.
Under the consent order filed today in United States District Court, M&F Development, LLC, the owner of the apartment building on South Western Avenue, has agreed to pay $120,000 to compensate individuals harmed by the harassment by property manager Abraham Kesary. In addition to the compensation payment, M&F Development agreed to pay a $10,000 civil penalty to the United States. The consent order permanently bars Kesary from property management and requires the retention of an independent property manager approved by the Department of Justice for the Koreatown rental property. The consent order also bars future discrimination and retaliation, mandates Fair Housing Act training, and requires extensive monitoring and reporting regarding property management activities and compliance with the terms of the consent order.
The lawsuit, which is part of the Justice Department’s nationwide Sexual Harassment in Housing Initiative, alleged that from at least 2012 until at least 2020, Kesary subjected female residents at the apartment complex to unwanted harassment. The complaint alleged Kesary offered housing-related benefits in exchange for sexual acts, made unwelcome sexual comments and advances, entered female residents’ homes without their permission, and subjected these tenants to unwelcome sexual acts.
“Our office will not stand for unlawful discrimination of any type,” said United States Attorney Martin Estrada. “The lengthy course of sexual harassment against female residents alleged in this case is disturbing and unacceptable. We will continue to be vigilant in holding landlords and property managers accountable for discrimination and harassment, and the Fair Housing Act gives us a powerful tool to seek justice for victims.”
“Tenants have the right to live in their homes free from sexual harassment by their landlords,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously enforce fair housing laws against landlords who prey on vulnerable residents.”
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination may contact the Housing Discrimination Tip Line at 1-833-591-0291. Individuals may also email the Justice Department at [email protected] or submit a report online. Reports also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
Individuals in the seven counties of the Central District of California may file a complaint about housing discrimination or other civil rights violations with the Civil Rights Section, Civil Division of the United States Attorney’s Office by completing and submitting this form (English) (Spanish) by email to [email protected].
Assistant United States Attorney Margaret Chen of the Civil Division’s Civil Rights Section and attorneys from the Housing and Civil Enforcement Section of the United States Justice Department’s Civil Rights Division litigated this matter.
Justice Department Secures Agreement in Sexual Harassment Lawsuit Against California Property Manager and OwnersRead the Press Release
The Justice Department announced today that it has secured a $130,000 agreement resolving allegations that Abraham Kesary, violated the Fair Housing Act by sexually harassing multiple female tenants at the Los Angeles rental property he managed. The settlement also resolves claims against M&F Development LLC, the owner of the property.
“Tenants have the right to live in their homes free from sexual harassment by their landlords,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously enforce fair housing laws against landlords who prey on vulnerable residents.”
“Our office will not stand for unlawful discrimination of any type,” said U.S. Attorney Martin Estrada for the Central District of California. “The lengthy course of sexual harassment against female residents alleged in this case is disturbing and unacceptable. We will continue to be vigilant in holding landlords and property managers accountable for discrimination and harassment and the Fair Housing Act gives us a powerful tool to seek justice for victims.”
Under the agreement, subject to approval by the U.S. District Court for the Central District of California, M&F Development LLC will pay $120,000 to compensate individuals harmed by the harassment and a $10,000 civil penalty to the United States.
In addition, the consent order prohibits Kesary from managing rental housing and requires M&F Development LLC to retain an independent property manager to manage the rental property and to implement non-discrimination policies and complaint procedures to prevent sexual harassment at the property in the future. The order also requires both defendants to take fair housing training.
The lawsuit alleged that Kesary sexually harassed female tenants at 445 S. Western Avenue in Los Angeles since at least 2012. According to the complaint, Kesary offered housing-related benefits in exchange for sexual acts, made unwelcome sexual comments and advances to female tenants, entered the homes of female tenants without their permission and subjected female tenants to unwelcome sexual acts. The lawsuit also names M&F Development LLC as a defendant.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative, the department has filed 36 lawsuits alleging sexual harassment in housing and recovered nearly $11 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. The Civil Rights Division is committed to protecting people from sexual misconduct. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
kesary_filed_proposed_consent_order.pdfJustice Department Awards over $4.4 Billion to Support Community SafetyRead the Press Release
The Justice Department announced yesterday that it is awarding more than $4.4 billion to support state, local, and Tribal public safety and community justice activities. The grants, from the Department’s Office of Justice Programs (OJP), will help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.
More than 40 grants totaling approximately $39 million were awarded to Connecticut state agencies, municipalities, and service organizations. Bridgeport, Bristol, Danbury, East Hartford, Hamden, Hartford, New Britain, New Haven, New London, Norwalk, Norwich, Stamford, Stratford, Waterbury, and West Haven will each receive grants through the Edward Byrne Memorial Justice Assistance Grant (JAG) Program. The full list of Connecticut grant awardees can be found here.
“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”
“These Justice Department grants will help stem violence, solve crimes, assist victims, treat addiction, and support law enforcement throughout our state to keep our officers and the Connecticut communities they serve healthy and safe,” said Vanessa Roberts Avery, U.S. Attorney for the District of Connecticut.
The more than 3,700 OJP grants being awarded this fiscal year will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.
“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”
“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”
“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”
Grants will support five major community safety and justice priorities:
- Awards totaling more than $1 billion will promote safety and strengthen trust, helping communities tackle the proliferation of gun violence in America and restore bonds of trust between community residents and the justice system. Grants will support innovative and evidence-based strategies designed to prevent and reduce violent crime, support the health and safety of law enforcement and public safety professionals, promote rehabilitation and reentry success, and address the rise in hate crimes across the country.
- More than $437 million in grant awards will accelerate justice system reforms designed to achieve equal justice and fair treatment for all. Grants will expand access to services among historically underserved and marginalized communities, reduce counterproductive involvement in the justice system, increase opportunities for diversion, and build pathways to treatment for people with substance use and mental health disorders.
- Over $192 million will improve the fairness and effectiveness of the juvenile justice system by supporting developmentally appropriate and culturally responsive interventions for youth. Funding will ensure that young people are served at home in their communities whenever possible, are equipped to transition to a healthy adulthood free of crime, and are protected from violence and abuse.
- More than $1.7 billion will expand access to victim services by investing in programs that provide trauma-informed and culturally responsive services to victims. Funding will support thousands of local victim assistance programs across the country and victim compensation programs in every state and U.S. territory, while helping these programs build their capacity to reach those disproportionately affected by crime and victimization.
- Over $418 million in awards will advance science and innovation to strengthen the base of knowledge that policymakers and practitioners can use to design and deploy effective community safety strategies. Awards will support research and data collection on a wide range of public safety issues, help maintain timely and accurate criminal history records, and improve the capacity of crime labs and forensic analysts to solve crimes, absolve the innocent, and deliver justice to victims.
In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending.
More information about the awards announced today can be found by visiting www.ojp.gov/funding/fy23awards.
Justice Department Awards over $4.4 Billion to Support Community SafetyRead the Press Release
WASHINGTON – The Justice Department announced today that it is awarding more than $4.4 billion to support state, local, and Tribal public safety and community justice activities. The grants, from the Department’s Office of Justice Programs (OJP), will help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.
“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”
The more than 3,700 OJP grants being awarded this fiscal year will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.
“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”
“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”
“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”
Grants will support five major community safety and justice priorities:
- Awards totaling more than $1 billion will promote safety and strengthen trust, helping communities tackle the proliferation of gun violence in America and restore bonds of trust between community residents and the justice system. Grants will support innovative and evidence-based strategies designed to prevent and reduce violent crime, support the health and safety of law enforcement and public safety professionals, promote rehabilitation and reentry success, and address the rise in hate crimes across the country.
- More than $437 million in grant awards will accelerate justice system reforms designed to achieve equal justice and fair treatment for all. Grants will expand access to services among historically underserved and marginalized communities, reduce counterproductive involvement in the justice system, increase opportunities for diversion, and build pathways to treatment for people with substance use and mental health disorders.
- Over $192 million will improve the fairness and effectiveness of the juvenile justice system by supporting developmentally appropriate and culturally responsive interventions for youth. Funding will ensure that young people are served at home in their communities whenever possible, are equipped to transition to a healthy adulthood free of crime, and are protected from violence and abuse.
- More than $1.7 billion will expand access to victim services by investing in programs that provide trauma-informed and culturally responsive services to victims. Funding will support thousands of local victim assistance programs across the country and victim compensation programs in every state and U.S. territory, while helping these programs build their capacity to reach those disproportionately affected by crime and victimization.
- Over $418 million in awards will advance science and innovation to strengthen the base of knowledge that policymakers and practitioners can use to design and deploy effective community safety strategies. Awards will support research and data collection on a wide range of public safety issues, help maintain timely and accurate criminal history records, and improve the capacity of crime labs and forensic analysts to solve crimes, absolve the innocent, and deliver justice to victims.
As a part of the $4.4 Billion allocated, U.S. Attorney Evans announced that in the Eastern District of Louisiana $12,165,685 have been allocated to the district to support community safety.
Award grantees include:
Terrebonne Parish Sheriff’s Office$20,395
Terrebonne Parish Consolidate$320,721
Terrebonne Parish$17,578
St. Charles Parish Sheriff’s Office$12,811
City of Hammond$19,718
Tangipahoa Parish Sheriff’s Office$74,537
Jefferson Parish Sheriff’s Office$100,404
City of Kenner$16,115
Orleans Parish Sheriff’s Office$3,907,000
Orleans Parish District Attorney’s Office$2,500,000
Orleans Parish District Attorney’s Office$1,400,000
City of New Orleans$131,796
City of New Orleans$388,452
Orleans Parish Sheriff’s Office$985,054
Tulane University$1,250,000
Tulane University
$998,136
St. Tammany Parish Sheriff’s Office$22,968
In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending. More information about the awards announced today can be found by visiting www.ojp.gov/funding/fy23awards.
Justice Department Awards over $4.4 Billion to Support Community SafetyRead the Press Release
SHREVEPORT, La. – The Justice Department has announced that it is awarding more than $4.4 billion to support state, local and Tribal public safety and community justice activities. The grants, from the Department’s Office of Justice Programs (OJP), will help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.
“The fact that nearly $60 million in grant money is being pumped into Louisiana alone is staggering,” said United States Attorney Brandon B. Brown. “These grants will provide much needed funding for our local agencies to continue their work in making our communities a safer place to live. We look forward to continuing our partnerships with these local agencies in that effort.”
“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”
The more than 3,700 OJP grants being awarded this fiscal year will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.
“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”
“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”
“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”
Grants will support five major community safety and justice priorities:
- Awards totaling more than $1 billion will promote safety and strengthen trust, helping communities tackle the proliferation of gun violence in America and restore bonds of trust between community residents and the justice system. Grants will support innovative and evidence-based strategies designed to prevent and reduce violent crime, support the health and safety of law enforcement and public safety professionals, promote rehabilitation and reentry success, and address the rise in hate crimes across the country.
- More than $437 million in grant awards will accelerate justice system reforms designed to achieve equal justice and fair treatment for all. Grants will expand access to services among historically underserved and marginalized communities, reduce counterproductive involvement in the justice system, increase opportunities for diversion, and build pathways to treatment for people with substance use and mental health disorders.
- Over $192 million will improve the fairness and effectiveness of the juvenile justice system by supporting developmentally appropriate and culturally responsive interventions for youth. Funding will ensure that young people are served at home in their communities whenever possible, are equipped to transition to a healthy adulthood free of crime, and are protected from violence and abuse.
- More than $1.7 billion will expand access to victim services by investing in programs that provide trauma-informed and culturally responsive services to victims. Funding will support thousands of local victim assistance programs across the country and victim compensation programs in every state and U.S. territory, while helping these programs build their capacity to reach those disproportionately affected by crime and victimization.
- Over $418 million in awards will advance science and innovation to strengthen the base of knowledge that policymakers and practitioners can use to design and deploy effective community safety strategies. Awards will support research and data collection on a wide range of public safety issues, help maintain timely and accurate criminal history records, and improve the capacity of crime labs and forensic analysts to solve crimes, absolve the innocent, and deliver justice to victims.
In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending. More information about the awards announced today can be found by visiting www.ojp.gov/funding/fy23awards.
An interactive map that shows where grants are going can be found at: Workbook: OJP Awards Dashboard (usdoj.gov).
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Justice Department Awards over $4.4 Billion to Support Community SafetyRead the Press Release
WASHINGTON – The Justice Department announced on Thursday, Sept. 28, that it is awarding more than $4.4 billion to support state, local, and Tribal public safety and community justice activities. The grants, from the Department’s Office of Justice Programs (OJP), will help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.
Montana will receive $19,728,000 in grants in 35 awards from the Justice Department.
“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”
“I am pleased to announce that Montana is receiving nearly $20 million in grant funding, which will further assist our office in making our communities safer, help reduce violent crime, and expand services for victims of crime. This money will provide much needed support to law enforcement and public safety professionals who work hard every day to keep us safe,” U.S. Attorney Laslovich said.
The more than 3,700 OJP grants being awarded this fiscal year will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.
“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”
“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”
“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”
Grants will support five major community safety and justice priorities:
- Awards totaling more than $1 billion will promote safety and strengthen trust, helping communities tackle the proliferation of gun violence in America and restore bonds of trust between community residents and the justice system. Grants will support innovative and evidence-based strategies designed to prevent and reduce violent crime, support the health and safety of law enforcement and public safety professionals, promote rehabilitation and reentry success, and address the rise in hate crimes across the country.
- More than $437 million in grant awards will accelerate justice system reforms designed to achieve equal justice and fair treatment for all. Grants will expand access to services among historically underserved and marginalized communities, reduce counterproductive involvement in the justice system, increase opportunities for diversion, and build pathways to treatment for people with substance use and mental health disorders.
- Over $192 million will improve the fairness and effectiveness of the juvenile justice system by supporting developmentally appropriate and culturally responsive interventions for youth. Funding will ensure that young people are served at home in their communities whenever possible, are equipped to transition to a healthy adulthood free of crime, and are protected from violence and abuse.
- More than $1.7 billion will expand access to victim services by investing in programs that provide trauma-informed and culturally responsive services to victims. Funding will support thousands of local victim assistance programs across the country and victim compensation programs in every state and U.S. territory, while helping these programs build their capacity to reach those disproportionately affected by crime and victimization.
- Over $418 million in awards will advance science and innovation to strengthen the base of knowledge that policymakers and practitioners can use to design and deploy effective community safety strategies. Awards will support research and data collection on a wide range of public safety issues, help maintain timely and accurate criminal history records, and improve the capacity of crime labs and forensic analysts to solve crimes, absolve the innocent, and deliver justice to victims.
In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending. More information about the awards announced today can be found by visiting www.ojp.gov/funding/fy23awards.
OAG/ODAG/OASG/OJP
23-1066
Justice Department Awards over $4.4 Billion to Support Community SafetyRead the Press Release
CHARLOTTESVILLE, Va. – The Justice Department announced today that it is awarding more than $4.4 billion to support state, local, and Tribal public safety and community justice activities. The grants, from the Department’s Office of Justice Programs (OJP), will help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.
“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”
“In the Western District of Virginia, addressing the root causes behind criminal behavior involves impactful diversion initiatives like Adult Drug Courts, which have emerged as catalysts for bolstering community security while curbing repeat offenses through treatment services, defendant supervision, and graduated levels of incentives and sanctions related to program compliance,” United States Attorney Christopher R. Kavanaugh said today.
Through its focus on addressing the root causes contributing to criminal conduct, programs such as Adult Drug Courts play a pivotal role in
The more than 3,700 OJP grants being awarded this fiscal year will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.
“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”
“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”
“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”
Grants will support five major community safety and justice priorities:
- Awards totaling more than $1 billion will promote safety and strengthen trust, helping communities tackle the proliferation of gun violence in America and restore bonds of trust between community residents and the justice system. Grants will support innovative and evidence-based strategies designed to prevent and reduce violent crime, support the health and safety of law enforcement and public safety professionals, promote rehabilitation and reentry success, and address the rise in hate crimes across the country.
- More than $437 million in grant awards will accelerate justice system reforms designed to achieve equal justice and fair treatment for all. Grants will expand access to services among historically underserved and marginalized communities, reduce counterproductive involvement in the justice system, increase opportunities for diversion, and build pathways to treatment for people with substance use and mental health disorders.
- Over $192 million will improve the fairness and effectiveness of the juvenile justice system by supporting developmentally appropriate and culturally responsive interventions for youth. Funding will ensure that young people are served at home in their communities whenever possible, are equipped to transition to a healthy adulthood free of crime, and are protected from violence and abuse.
- More than $1.7 billion will expand access to victim services by investing in programs that provide trauma-informed and culturally responsive services to victims. Funding will support thousands of local victim assistance programs across the country and victim compensation programs in every state and U.S. territory, while helping these programs build their capacity to reach those disproportionately affected by crime and victimization.
- Over $418 million in awards will advance science and innovation to strengthen the base of knowledge that policymakers and practitioners can use to design and deploy effective community safety strategies. Awards will support research and data collection on a wide range of public safety issues, help maintain timely and accurate criminal history records, and improve the capacity of crime labs and forensic analysts to solve crimes, absolve the innocent, and deliver justice to victims.
In the Western District of Virginia, several communities that will receive grant money as part of today’s announcement include, but are not limited to:
- The Alleghany County/City of Covington Adult Drug Court (ACADTC) will receive $999,805 in order to assist in finding housing and transportation, increase the number of visits per week, improve family and peer supports, assist with job training and employment skills, and address the mental health needs of the ACADTC participants. The grant will provide funding for multiple staff positions and operating costs for 48 months.
- Piedmont Regional Community Services (Piedmont) in Martinsville will receives $1 million to expand the adult drug court that supports Henry County. This grant funding will allow Piedmont to expand its capacity to serve an additional 60 participants over the next four years.
In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending. More information about the awards announced today can be found by visiting www.ojp.gov/funding/fy23awards.