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28 September 2023
Georgia Man Sentenced for Transport of an AlienRead the Press Release
ALBANY, NEW YORK – Eloy Vargas, age 60, a resident of Georgia, was sentenced today to time served (more than 6 months in jail) for the transport of another person illegally present in the United States. United States Attorney Carla B. Freedman and Chief Patrol Agent Robert N. Garcia, United States Border Patrol, Swanton Sector, made the announcement.
As part of his previously entered guilty plea, Vargas admitted that in March 2023, he drove from Georgia to Franklin County, New York, to pick up a person illegally present in the United States and transport that person further south into the country. Specifically, on March 2, 2023, Vargas picked up a Mexican citizen who had illegally crossed into the United States from Canada, and the defendant then stayed at a motel for the night. The following day, the defendant began driving the Mexican citizen south away from the border; they were then encountered by Border Patrol and arrested.
Border Patrol investigated this case. Assistant United States Attorney Allen J. Vickey prosecuted the case.
Gary Man Sentenced to 60 Months in PrisonRead the Press Release
HAMMOND- Yesterday, Gary Burnett, 62 years old, of Gary, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio after pleading guilty to possessing a firearm in furtherance of a drug trafficking crime, announced United States Attorney Clifford D. Johnson.
Burnett was sentenced to 60 months in prison followed by 2 years of supervised release.
According to documents in the case, in April 2021, law enforcement purchased cocaine from Burnett. Later, during the execution of a search warrant conducted on his residence, law enforcement recovered 5 grams of heroin, 44.6 grams of cocaine, 22 grams of methamphetamine, a drug ledger as well as a .223 rifle with an extended magazine and multiple handguns.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force. This case was prosecuted by Assistant United States Attorney Caitlin M. Padula.
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.
Fulton County jail officer indicted on excessive force chargesRead the Press Release
ATLANTA – Former Fulton County Detention Officer Monique Clark has been indicted by a federal grand jury on charges of using excessive force against a pretrial detainee at the Fulton County Jail.
“We recognize that detention officers have a particularly challenging job as they work to maintain order and protect detainees in our district’s jails and prisons,” said U.S. Attorney Ryan K. Buchanan. “However, this detention officer allegedly abused a handcuffed Fulton County detainee by strangling her and must be held accountable for such outrageous conduct.”
“While those behind bars may have lost their freedom, they retain their humanity — and their civil rights,” said Special Agent in Charge Keri Farley of FBI Atlanta. “This case serves as an example that the FBI is committed to identifying and investigating those law enforcement officers who choose to abandon their oath and violate the public’s civil rights.”
According to U.S. Attorney Buchanan, the charges, information presented in court and other public information: At the time of the alleged misconduct, Monique Clark was employed as a detention officer at Fulton County Jail. On June 5, 2023, while Clark was working at the North Jail Annex in Alpharetta, Clark allegedly strangled a pretrial detainee without any legal justification. The detainee lost consciousness and suffered bodily injury as a result of the assault.
Monique Clark, 32, of Stone Mountain, Georgia, has been indicted on charges of using excessive force against a pretrial detainee. 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 is being investigated by the Department of Justice’s Office of Inspector General.
Assistant U.S. Attorneys Bret R. Hobson and Brent Alan Gray and DOJ Civil Rights Division Trial Attorney Alec C. Ward are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fresno Man Indicted for EscapeRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Doroteo Gonzales, 28, of Fresno, charging him with escape, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in October 2021 Gonzalez was sentenced to federal prison after a conviction for being a felon in possession of a firearm. On Jan. 9, 2023, Gonzalez was transferred to the Turning Point Residential Reentry Center (RRC) in Fresno to finish serving his sentence. On Jan. 23, 2023, two weeks after Gonzalez arrived at the RRC, staff discovered that Gonzales was not present while conducting a count of the RRC’s residents. Gonzales was not authorized to leave the RRC and was not scheduled to be released until months later on April 11, 2023. The RRC Staff conducted a search of the facility and contacted local hospitals and jails attempting to locate Gonzales but were unsuccessful in locating him. Gonzalez is currently in federal custody.
This case is the product of an investigation by the U.S. Marshals Service. Assistant U.S. Attorney Arin C. Heinz is prosecuting the case.
If convicted, Gonzales faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Fraudulent Nursing Diploma Scheme Leads to Federal ConvictionsRead the Press Release
MIAMI – Twenty defendants have pled guilty or been convicted at trial in U.S. District Court in South Florida for their participation in a wire fraud scheme, known as Operation Nightingale, that created an illegal licensing and employment shortcut for aspiring nurses.
According to public records, residents of Florida, along with individuals from other states, were charged for their involvement in a scheme to sell fraudulent nursing degree diplomas and transcripts obtained from accredited Florida-based nursing schools to individuals seeking licenses and jobs as registered nurses (RNs) and licensed practical/vocational nurses (LPN/VNs).
The bogus diplomas and transcripts qualified purchasers to sit for the national nursing board exam and, after passing it, to obtain licenses and jobs in various states as RNs and LPN/VNs. The overall scheme involved the distribution of more than 7,600 fake nursing diplomas issued by three South Florida-based nursing schools: Siena College in Broward County, Florida (Fla.), Palm Beach School of Nursing in Palm Beach County, Fla., and Sacred Heart International Institute in Broward County. These schools are now closed. Nursing applicants used the fraudulent diplomas to obtain RN or LPN/VN licenses in various states and nursing jobs with unwitting health care providers throughout the country.
The following defendants have pled guilty or were convicted at trial for their involvement in the fraudulent nursing diploma scheme (sentencing information is noted where available):
Defendants Associated with Fraudulent Nursing Diplomas and Transcripts from Siena College –
- Stanton Witherspoon, of Burlington County, New Jersey (N.J.), pled guilty on August 24, 2023, to conspiracy to commit wire fraud (Case No. 23-60005-Cr-Smith). Witherspoon is scheduled to be sentenced on November 2, 2023.
- Alfred Sellu, of Burlington County, N.J., pled guilty on August 18, 2023, to conspiracy to commit wire fraud (Case No. 23-60005-Cr-Smith). Sellu is scheduled to be sentenced on November 2, 2023.
- Rene Bernadel, of Westchester County, New York (N.Y.), pled guilty on August 24, 2023, to conspiracy to commit wire fraud (Case No. 23-60005-Cr-Smith). Bernadel is scheduled to be sentenced on November 2, 2023.
- Eunide Sanon, of Ft. Lauderdale, Fla., pled guilty on March 14, 2023, to an information charging her with conspiracy to commit wire fraud (Case No. 23-60013-Cr-Moreno). Sanon was sentenced on May 23, 2023, to 27 months in prison, to be followed by three years of supervised release, and ordered to forfeit $1,287,633.
Defendants Associated with Fraudulent Nursing Diplomas and Transcripts from Palm Beach School of Nursing –
- Krystal Lopez, of Palm Beach County, Fla., pled guilty on May 10, 2023, to conspiracy to commit wire fraud (Case No. 23-60007-Cr-Singhal). Krystal Lopez is scheduled to be sentenced on December 14, 2023.
- Damian Lopez, of Palm Beach County, Fla., pled guilty on May 10, 2023, to conspiracy to commit wire fraud (Case No. 23-60007-Cr-Singhal). Damian Lopez is scheduled to be sentenced on December 14, 2023.
- Francois Legagneur, of Nassau County, N.Y., pled guilty on May 10, 2023, to conspiracy to commit wire fraud (Case No. 23-60007-Cr-Singhal). Legagneur is scheduled to be sentenced on December 13, 2023.
- Reynoso Seide, of Union County, N.J., pled guilty on May 10, 2023, to conspiracy to commit wire fraud (Case No. 23-60007-Cr-Singhal). On September 19, 2023, Seide was sentenced to 24 months in prison, to be followed by three years of supervised release.
- Yelva Saint Preux, of Suffolk County, N.Y., pled guilty on May 10, 2023, to conspiracy to commit wire fraud (Case No. 23-60007-Cr-Singhal). Preux is scheduled to be sentenced on December 14, 2023.
- Palm Beach School of Nursing’s owner Johanah Napoleon pled guilty, on November 21, 2022, to wire fraud (Case No 22-60111-Cr-Smith) and conspiracy to commit wire fraud (Case No. 22-60118-Cr-Smith). Napoleon was sentenced on July 18, 2023, to 21 months in prison, to be followed by three years of supervised release, and was ordered to forfeit $3.2 million.
Defendants Associated with Fraudulent Nursing Diplomas and Transcripts from Sacred Heart International Institute –
- Rhomy Louis, of Suffolk County, N.Y., pled guilty on September 15, 2023, to conspiracy to commit wire fraud (Case No. 23-60010-Cr-Smith). Louis is scheduled to be sentenced on November 28, 2023.
- Simon Itaman, of Harris County, Texas (TX), pled guilty on September 15, 2023, to conspiracy to commit wire fraud (Case No. 23-60010-Cr-Smith). Simon Itaman is scheduled to be sentenced on November 28, 2023.
- Anna Itaman, of Harris County, TX, pled guilty on September 15, 2023, to conspiracy to commit wire fraud (Case No. 23-60010-Cr-Smith). Anna Itaman is scheduled to be sentenced on November 28, 2023.
- Serge Jean, of Harris County, TX, pled guilty on September 15, 2023, to conspiracy to commit wire fraud (Case No. 23-60010-Cr-Smith). Serge Jean is scheduled to be sentenced on November 28, 2023.
- Ludnie Jean, of Harris County, TX, pled guilty on September 15, 2023, to conspiracy to commit wire fraud (Case No. 23-60010-Cr-Smith). Ludnie Jean is scheduled to be sentenced on November 28, 2023.
- Cimoyne Alves, of Lincoln, Rhode Island, pled guilty on August 18, 2023, to conspiracy to commit wire fraud (Case No. 23-6006-Cr-Smith). Alves is scheduled to be sentenced on October 30, 2023.
- Charles Etienne, of Lake Worth, Fla., pled guilty on April 11, 2023, to an information charging him with conspiracy to commit wire fraud (Case No. 23-60012-Cr-Singhal). Etienne is scheduled to be sentenced on November 2, 2023.
- Nadege Auguste, of Coral Springs, Fla., was found guilty of conspiracy to commit wire fraud on September 28, 2023. Auguste is scheduled to be sentenced on January 3, 2024.
Defendants Associated with Fraudulent Nursing Diplomas and Transcripts through PowerfulU Healthcare Services LLC -
- Geralda Adrien, of Ft. Lauderdale, Fla, pleaded guilty to conspiracy to commit wire fraud and mail fraud (Case No. 21-60198-Cr-WPD) and was sentenced on August 10, 2022, to 27 months in prison, to be followed by three years of supervised release, and was ordered to forfeit $3,309,000.
- Woosevelt Predestin, of Ft. Lauderdale, Fla., pleaded guilty to conspiracy to commit wire fraud and mail fraud and was sentenced on August 10, 2022, to 27 months in prison, to be followed by three years of supervised release, and was ordered to forfeit $3,309,000 (Case No. 21-60198-Cr-WPD).
U.S. Attorney for the Southern District of Florida Markenzy Lapointe; Special Agent in Charge Jeffrey B. Veltri, FBI, Miami Field Office; and Special Agent in Charge Omar Pérez Aybar, HHS-OIG, made the announcement.
FBI Miami and HHS-OIG Miami investigated these cases. Valuable assistance was provided by Homeland Security Investigations, Miami Field Office; U.S. Department of Veterans Affairs-Office of Inspector General; and Florida Attorney General-Florida Medicaid Fraud Control Unit, Mid-Atlantic Field Office. Assistant U.S. Attorney Christopher J. Clark is prosecuting these cases and Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Fourth Defendant Charged with Federal Narcotics Offenses Resulting in Death in Connection with the Poisoning of Four Children at A Bronx DaycareRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Anne Milgram, the Administrator of the Drug Enforcement Administration (“DEA”), and Edward A. Caban, the Commissioner of the New York City Police Department (“NYPD”), announced today the unsealing of a criminal Complaint in Manhattan federal court charging FELIX HERRERA GARCIA with conspiracy to distribute narcotics resulting in death in connection with the poisoning of four children under the age of three, one of whom died, at a daycare facility in the Bronx. HERRERA GARCIA is in custody and will be presented today before U.S. Magistrate Judge Michael S. Berg, in U.S. District Court for the Southern District of California.
U.S. Attorney Damian Williams said: “Last night, Felix Herrera was arrested for his alleged role in running a fentanyl mill hidden inside a Bronx daycare, which caused the tragic death of a one-year-old boy and seriously injured three other children. Herrera’s arrest on the other side of the nation reflects our tireless pursuit of Herrera, who fled the daycare even as the children he abandoned inside were suffering from his poisonous trade. As I vowed in the wake of this horrific crime, Herrera’s arrest demonstrates once again that my Office and our dedicated law enforcement partners will stop at nothing to bring those who contribute to the deadly opioid crisis, which impacts even our most vulnerable community members, to justice.”
DEA Administrator Anne Milgram said: “Let me be clear: when it comes to protecting our communities and seeking justice, there are no boundaries, no safe havens, and no stones left unturned. This case is a stark reminder of the evil we face. The DEA will stop at nothing, and we will relentlessly pursue those responsible, no matter where they hide."
NYPD Police Commissioner Edward A. Caban said: “New York City law enforcement has a very long reach, and anyone who participates in the distribution of fentanyl in our communities will be held fully accountable – no matter where they run and try to hide. Today's charges reflect abhorrent criminality that will always be intolerable here, and the NYPD and our dedicated state and federal partners vow to investigate and arrest all those responsible for this proliferating threat.”
As alleged in the Complaint:[1]
From at least in or about July 2023 through at least in or about September 2023, FELIX HERRERA GARCIA and others, including GREI MENDEZ, CARLISTO ACEVEDO BRITO, and RENNY PARRA PAREDES, a/k/a “El Gallo,”[2] conspired to distribute fentanyl, including at a children’s daycare center in the Bronx, New York (the “Daycare”). There, despite the daily presence of children, including infants, HERRERA GARCIA and his co-conspirators maintained large quantities of narcotics, including a kilogram of fentanyl stored on top of children’s playmats and large quantities of suspected narcotics in hidden compartments known as “traps” located in the floor of the room in which the children played and slept. Also found in the daycare were materials used to package narcotics, including three “kilo presses.” One of the traps found in the floor of the Daycare is pictured below:
As a consequence of the drug conspiracy engaged in by HERRERA GARCIA and his co-conspirators, on or about September 15, 2023, four children at the Daycare, who were all under three years of age, appear to have experienced the effects of poisoning from exposure to fentanyl. Three of the children were hospitalized with serious injuries. The fourth child, a one-year-old boy, died.
Immediately prior to calling 911 to report that the children in her care were unresponsive, MENDEZ – HERRERA GARCIA’s wife – called HERRERA GARCIA twice. The first phone call went unanswered, the second phone call lasted just over 10 seconds. Then, only minutes before emergency personal arrived at the scene, surveillance footage shows HERRERA GARCIA walking swiftly from the building next door to the Daycare, where he and MENDEZ resided, and into the Daycare. When HERRERA GARCIA entered the Daycare, he was empty-handed. Approximately two minutes later, HERRERA GARCIA exited the Daycare again moving swiftly, but carrying what appears to be two shopping bags weighted with contents. Instead of exiting through the front door, HERRERA GARCIA exited out a back alley. And instead of following the paved alleyway behind the Daycare’s building, HERRERA GARCIA hurried through overgrown grass and bushes to exit the area. Photographs of HERRERA GARCIA hurrying out the rear of the Daycare’s building and then moving through the bushes to exit the area are below:
Furthermore, MENDEZ deleted approximately 21,526 messages from an encrypted messaging application on which she had exchanged messages with HERRERA GARCIA between approximately on or about March 30, 2021, and September 15, 2023. However, messages that have been recovered reveal that while MENDEZ was with members of law enforcement later on September 15, 2023, following the incident at the Daycare, MENDEZ informed HERRERA GARCIA that law enforcement was asking questions about him, including questions regarding his whereabouts. HERRERA GARCIA instructed MENDEZ to tell law enforcement, among other things, that he was working.
HERRERA GARCIA had been at large since he fled out the back alley behind the Daycare on September 15, 2023. He was apprehended by Mexican authorities working in coordination with U.S. law enforcement and arrested last night upon entry to the United States.
* * *
HERRERA GARCIA, 34, of the Bronx, New York, is charged in Count One with conspiracy to distribute narcotics resulting in death and in Count Two with possession with intent to distribute narcotics resulting in death. Both Count One and Count Two carry a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the DEA, the NYPD, the SDNY Digital Forensic Unit, the Complex Analytical and Social Media Enhancement Team at the New York/New Jersey High Intensity Drug Trafficking Area, and the Organized Crime Drug Enforcement Task Force (“OCDETF”) New York Strike Force. Mr. Williams also thanked the NY/NJ Regional Fugitive Task Force of the U.S. Marshals Service (“USMS”); the USMS Office of International Operations; the USMS for the Southern District of New York; the USMS for the Southern District of Texas; the USMS for the Southern District of California; the USMS Mexico Field Office; the USMS Investigative Operations Division; the DEA Resident Office in Allentown, Pennsylvania; the DEA District Office in McAllen, Texas; the DEA Country Office in Mexico City, Mexico; the DEA Resident Office in Hermosillo, Mexico; the DEA Resident Office in Monterrey, Mexico; the DEA Special Operations Division; the NYPD 52nd Precinct Detective Squad; the NYPD Bronx Homicide Squad; the U.S. Department of Justice’s Office of International Affairs; the U.S. Attorney’s Office for the Southern District of Texas; the U.S. Department of Homeland Security; and Mexican authorities.
The OCDETF New York Strike Force provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the New York Strike Force is to target, disrupt, and dismantle drug trafficking and money laundering organizations, reduce the illegal drug supply in the United States, and bring criminals to justice. The Strike Force is affiliated with the DEA’s New York Division and includes agents and officers of the DEA; NYPD; New York State Police; Homeland Security Investigations; U.S. Internal Revenue Service, Criminal Investigation; U.S. Customs and Border Protection; New York National Guard; U.S. Coast Guard; New York State Department of Corrections and Community Supervision; Bergen County Prosecutor’s Office; Fort Lee Police Department; Palisades Interstate Parkway Police; Teaneck Police Department; Hillsdale Police Department; Closter Police Department; Northvale Police Department; River Vale Police Department; Englewood Police Department; Saddle River Police Department; Bergen County Sheriff’s Department; Hawthorne Police Department; and Hackensack Police Department.
This case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Brandon C. Thompson and Maggie Lynaugh are in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact descried therein should be treated as an allegation.
[2] GREI MENDEZ, CARLISTO ACEVEDO BRITO, and RENNY ANTONIO PARRA PAREDES, a/k/a “El Gallo,” have been charged in complaints under docket numbers 23 Mag. 6444 and 23 Mag. 6533.
Four Time Deported Honduran National Sentenced to 24 Months for Illegal Re-EntryRead the Press Release
NEW ORLEANS – LUIS ALFREDO LEZAMA-RAMIREZ, age 43, was sentenced for illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a), on September 28, 2023 announced U.S. Attorney Duane A. Evans.
According to court documents, LUIS ALFREDO LEZAMA-RAMIREZ ("LEZAMA-RAMIREZ“), admitted reentering the United States after being previously deported on June 8, 2018. LEZAMA-RAMIREZ had also been deported in 2006, 2009, and 2012. LEZAMA-RAMIREZ was sentenced by Judge Carl J. Barbier, to 24 months in federal prison. He will be deported once again, following completion of his sentence. He was also ordered to pay a $100.00 mandatory special assessment fee.
U.S. Attorney Evans praised the work of United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K.D. Guice, Jr. of the General Crimes Unit is in charge of the prosecution.
Former Missouri Police Officer Indicted, Accused of Sexually Abusing Handcuffed DetaineesRead the Press Release
ST. LOUIS – A former officer with the North County Police Cooperative was accused in an indictment Wednesday of sexually assaulting men that he’d detained or arrested.
Marcellis Blackwell, 34, of St. Louis, was indicted on 21 felony counts: 16 counts of deprivation of rights under color of law, namely the right to bodily integrity, and five counts of altering records in a federal investigation. The indictment says that between Nov. 8, 2022 and June 5, 2023, Blackwell fondled the genitals of eight men who he had detained or handcuffed, committing abusive sexual contact. Blackwell also is accused in the indictment of sodomizing one of the men with his finger, an act of aggravated sexual abuse. The indictment also says Blackwell kidnapped the men and turned off his body camera prior to some of the incidents.
A motion seeking to have Blackwell, formerly known as Willis Green Overstreet III, held in jail until trial said Blackwell “victimized people he thought would be less likely to report his behavior.” Following media coverage of one victim’s report, seven more victims came forward, the motion says. The motion also says Blackwell’s phone contains videos of as-yet unidentified victims.
“The conduct alleged in the indictment is unacceptable for anyone, but infinitely more so for a police officer and when it involves handcuffed, helpless victims,” said U.S. Attorney Sayler A. Fleming. “We still have not identified all of the men who appear in recordings on the defendant’s phone and I’d like to encourage any potential victims to contact the FBI in St. Louis or the U.S. Attorney’s Office.”
“We are not investigating the violation Blackwell cited to detain his victims,” said Special Agent in Charge Jay Greenberg of the FBI St Louis Division. “Our focus is on Blackwell’s alleged abuse of power to sexually assault his victims. Our goal is to bring justice to victims and to provide victim services.”
FBI St. Louis has established a hotline for potential victims of Marcellis Blackwell. Please call (314) 589-2682.Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The FBI investigated the case, following an initial investigation conducted by the North County Police Cooperative. Assistant U.S. Attorney Christine Krug is prosecuting the case.
Former Employee of Two Leading Global Financial Institutions and His Associates Charged with Insider TradingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an Indictment charging ANTHONY VIGGIANO and his co-conspirator, STEPHEN FORLANO, Jr., with securities fraud and conspiracy. VIGGIANO and FORLANO were arrested this morning and will be presented later today. The case has been assigned to U.S. District Judge Valerie E. Caproni.
Also unsealed is the guilty plea of CHRISTOPHER SALAMONE. SALAMONE pled guilty before U.S. District Judge Katherine Polk Failla on September 21, 2023, to charges arising from his participation in the insider trading scheme, and he is cooperating with the Government.
U.S. Attorney Damian Williams said: “As alleged, Anthony Viggiano betrayed the trust of his employers by tipping his friends with material non-public information, undermining the integrity of our financial markets in the process. No matter how evasive insider traders’ conduct, or the lengths gone to hide their offenses, this Office will track down and prosecute those who attempt to cheat the system.”
FBI Assistant Director in Charge James Smith said: “This indictment is yet another example of individuals believing they can get away with benefiting from trading on material non-public information. As we have shown before, this type of alleged corporate self-dealing will not be tolerated. The FBI will ensure that those responsible for insider trading face the consequences in the criminal justice system.”
According to the allegations contained in the Indictment unsealed in Manhattan federal court and court filings:[1]
ANTHONY VIGGIANO was employed at two different, leading global financial institutions located in New York, New York, specifically an investment management firm (“Firm-1”) and an investment bank (“Firm-2,” and together with Firm-1, the “Firms”). VIGGIANO worked as an analyst in Firm-1’s New York, New York, office between in or about April 2021 and in or about October 2021 and then worked at Firm-2 in New York, New York, as an associate in the asset management department. While working at the Firms, VIGGIANO received confidential internal communications that contained detailed information about non-public potential strategic partnerships involving Firm-1 and acquisitions involving Firm-2.
VIGGIANO attended college with FORLANO and was a childhood friend of SALAMONE. In violation of the duties that he owed to each of the Firms, VIGGIANO tipped FORLANO and SALAMONE with material nonpublic information (“MNPI”) relating to the names of potential counterparties for Firm-1’s strategic partnerships and, later, information that VIGGIANO learned during his employment at Firm-2 about companies that were potential acquisition targets. After VIGGIANO started working at Firm-2, he continued tipping FORLANO with MNPI that VIGGIANO obtained through his employer. In total, VIGGIANO tipped FORLANO and/or SALAMONE with inside information in advance of at least seven different transactions involving publicly traded companies.
FORLANO and SALAMONE each used MNPI provided by VIGGIANO to purchase shares in companies and to trade call options, including short-dated, out-of-the-money call options. VIGGIANO and SALAMONE agreed to split the profits from their illegal trading, which yielded total illegal profits of over approximately $300,000. FORLANO further provided this MNPI to friends and family through, among other means, a video game console’s audio chat function in order to evade detection by law enforcement. FORLANO himself illegally profited at least approximately $100,000 from the scheme.
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VIGGIANO, 26, of Baldwin, New York, has been charged with eight counts of securities fraud under Title 15, each of which carries a maximum sentence of 20 years in prison, and one count of conspiracy, which carries a maximum sentence of five years in prison.
FORLANO, 27, of Tampa, Florida, has been charged with three counts of securities fraud under Title 15, each of which carries a maximum sentence of 20 years in prison, and one count of conspiracy, which carries a maximum sentence of five years in prison.
SALAMONE, 35, of Long Beach, New York, has been charged with three counts of securities fraud under Title 15, each of which carries a maximum sentence of 20 years in prison, and one count of conspiracy, which carries a maximum sentence of five years in prison.
Mr. Williams praised the outstanding investigative work of the FBI. He also expressed appreciation for the work of the U.S. Securities and Exchange Commission, which separately initiated parallel civil proceedings against the defendants today.
This prosecution is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Peter Davis and Jared Lenow are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Chair of Marijuana Board, Rick Johnson, Sentenced to 55 Months in Federal Prison for BriberyRead the Press Release
Johnson Obtained More Than $110,000 In Bribe Payments; U.S. Attorney Mark Totten Affirms Commitment to Fight Public Corruption
GRAND RAPIDS, MICHIGAN – U.S. Attorney for the Western District of Michigan Mark Totten today announced that Rick Vernon Johnson, 70, of LeRoy, Michigan, was sentenced to serve 55 months in federal prison and fined $50,000 for soliciting and accepting bribes in his role as the former Chairperson of the Michigan Medical Marijuana Licensing Board (MMLB). Johnson was also ordered to forfeit an additional $110,200. Following his release from prison, Johnson will serve two years on supervised release. U.S. District Court Judge Jane Beckering imposed the sentence.
“Rick Johnson’s brazen corruption tainted an emerging industry, squandered the public’s trust, and scorned a democracy that depends on the rule of law,” said U.S. Attorney Mark Totten. “My office stands ready to fight public corruption whenever and wherever we find it, without fear or favor, following the evidence wherever it leads, with independence and impartiality.”
Rick Johnson was a member and the Chairperson of the MMLB between May 2017 and April 2019. Prior to his appointment to that Board, Johnson worked as a lobbyist in Lansing, Michigan, and served as Speaker of the Michigan House of Representatives between 2001 and 2004.
Johnson received at least $110,200 in bribes while he was MMLB Chair, including cash payments, flights to Canada on private aircraft, and commercial sex paid for by others. Co-defendant John Dalaly, who was sentenced to 28 months in federal prison by Judge Beckering on September 14, 2023, paid Johnson $68,200 in bribes. Co-defendants Brian Pierce and Vincent Brown, who will be sentenced on October 18, 2023, paid $42,000 to or for the benefit of Johnson.
Johnson took several steps to conceal the bribes, such as using a second “burner” phone and laundering bribes through various limited liability companies he controlled to hide their purpose. In addition, several bribe payers referred to Johnson using the alias “Batman.”
In return for those payments, Johnson provided an unfair advantage to bribe payers in the form of his favorable vote on license applications, his help and support throughout the licensing process, and confidential inside information pertaining to the MMLB’s work and other applicants.
The remaining defendants, Brian Pierce and Vincent Brown, will be sentenced for conspiracy to commit bribery on Wednesday, October 18, 2023, at 11 a.m. and 1:30 p.m., respectively, in Grand Rapids. Judge Beckering will also impose those sentences.
“Public corruption is the top criminal investigative priority for the FBI,” said Cheyvoryea Gibson, Special Agent in Charge of the FBI in Michigan. “I am thankful for the outstanding FBI personnel for their daily commitment to following the facts, not politics, wherever they lead, particularly in this case. The FBI continues to urge concerned citizens to report public corruption information they believe they may have by calling FBI at 1-800-CALL-FBI or submitting tips online at tips.fbi.gov.”
Assistant United States Attorneys Chris O’Connor and Clay Stiffler are prosecuting the case on behalf of the United States.
Filed Governments Sentencing Memorandum Johnson###
MEDIA NOTE: U.S. Attorney Totten’s remarks following today’s sentencing can be viewed on the U.S. Attorney’s Facebook Page at streamed live @usao.wdmi on the U.S. Attorney’s Facebook Page.
Previous press releases concerning this case can be viewed by visiting the below links.
- Oakland County Businessman Sentenced to 28 Months in Federal Prison for Paying Bribes to Rick Johnson
- Four Charged in State Bribery Scheme
- Rick Johnson, former Chairperson of the Michigan Medical Licensing Board, and three others have agreed to plead guilty and cooperate in ongoing investigation
Former California Prison Correctional Officer Indicted for Accepting BribesRead the Press Release
SACRAMENTO, Calif. — On Sept. 14, 2023, a federal grand jury returned a two-count indictment against Stephen Joseph Crittenden, 43, of Suisun City, charging him with bribery concerning programs receiving federal funds, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed following Crittenden’s arrest.
According to court documents, Crittenden was a California Department of Corrections and Rehabilitation correctional officer at the California Medical Facility in Vacaville. In 2021 and 2022 he accepted bribes to smuggle cellphones into the California Medical Facility.
This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.
If convicted, Crittenden faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
crittenden_indictment.pdfFormer CEO and Former CFO of Telecommunications Company Charged in Connection with Massive Accounting Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging Victor Bozzo, former Chief Executive Officer and former Chief Commercial Officer of Pareteum Corporation, and EDWARD O’DONNELL, Pareteum’s former Chief Financial Officer, with conspiracy, securities fraud, making false Securities and Exchange Commission (“SEC”) filings, and improperly influencing the conduct of audits for their roles in a scheme to overstate Pareteum’s revenue by tens of millions of dollars. BOZZO and O’DONNELL were arrested earlier today and will be presented this afternoon before U.S. Magistrate Judge Ona T. Wang. The case has been assigned to U.S. District Judge Arun Subramanian.
Also unsealed is the guilty plea of STANLEY STEFANSKI, Pareteum’s former Controller. STEFANSKI pled guilty before U.S. District Judge Andrew L. Carter on September 14, 2023, to charges arising from his participation in the scheme to fraudulently inflate Pareteum’s revenue and related crimes, and he is cooperating with the Government.
U.S. Attorney Damian Williams said: “Victor Bozzo, the former CEO of Pareteum, and Edward O’Donnell, the former CFO, and their co-conspirators allegedly schemed to inflate the company’s revenue, thereby making the company appear more profitable than it was and allowing Bozzo and O’Donnell to obtain performance bonuses they had not earned. To conceal their alleged fraud, Bozzo and O’Donnell then took steps to mislead the independent certified public accountants engaged to audit Pareteum’s financial statements. With today’s Indictment, Bozzo and O’Donnell’s alleged deceit comes to an end.”
FBI Assistant Director in Charge James Smith said: “This indictment reflects the serious harm executives caused by deliberately misleading shareholders, auditors, and the general public about the financial strength of a public company. The FBI remains committed to fighting white-collar crime, protecting investors, and holding fraudsters who degrade the integrity of our markets accountable.”
According to the allegations in the Indictment unsealed today in Manhattan federal court:[1]
The defendants, and other senior executives at the company, engaged in a scheme to improperly and misleadingly recognize revenue at Pareteum, which owned and managed a mobile device network platform. The defendants and their co-conspirators made the revenue appear to have been earned in its records based on aspirational, non-binding purchase orders that did not impose any obligation on customers to pay Pareteum. The defendants, and other senior executives at Pareteum, knew that in many cases Pareteum was recognizing revenue before Pareteum had delivered any products or services to its customers. In order to conceal Pareteum’s fraudulent accounting practices, BOZZO, O’DONNELL, and other senior executives at Pareteum took steps to mislead the independent certified public accountants engaged to audit Pareteum’s financial statements.
Pareteum’s inflated revenue gave the appearance that Pareteum was meeting aggressive revenue and growth projections, which served the ultimate goal of increasing Pareteum’s share price. In press releases accompanying Pareteum’s quarterly filings, Pareteum provided guidance on its expected revenue and revenue growth for the year. During each period, Pareteum touted its quarter-over-quarter revenue and revenue growth. Pareteum publicly identified revenue as the principal metric demonstrating its growth and touted its consistent record of quarter-over-quarter revenue growth and meeting or exceeding revenue guidance, which itself typically increased quarter-over-quarter. However, this ostensible pace of revenue growth was only possible because of the fraud orchestrated by the defendants.
In order to carry out the fraud, the defendants and their co-conspirators improperly recognized revenue from customers based on non-binding contracts. Specifically, Pareteum’s customers were cellular providers that paid to use Pareteum’s platform to monitor, meter, and bill their own individual customers, who were individual cellphone or connected device end users. Typically, before a customer could use Pareteum’s platform, the customer and Pareteum would sign a Master Services Agreement, which set forth Pareteum’s obligations to provide the customer with SIM cards that provided cellphone users, who obtained cellphone service through Pareteum’s customer, access to Pareteum’s mobile network. At this stage, the customer did not owe Pareteum any money and no revenue had been earned by Pareteum; instead, Pareteum had first to develop and implement a platform for the customer and ensure that it functioned such that the customer could go “live” on the Pareteum network. Once the Pareteum customer was live on the network and sold a SIM card to an actual cellphone user, that user could put the SIM card into his or her phone and begin making calls or consuming mobile data. It was only at that point that Pareteum’s customer would be required to pay Pareteum for the data usage.
BOZZO and O’DONNELL understood that purchase orders were not sales contracts because, as they and others at Pareteum well knew, and Paretuem’s customers understood, the purchase orders did not reflect binding commitments. Instead, purchase orders typically reflected anticipated future sales. Purchase orders typically set forth the customer’s intention to purchase SIM cards from Pareteum and to generate usage fees if and when the customer was able to sell the SIMs to end users who then activated the SIM cards and used Pareteum’s platform.
However, in violation of Generally Accepted Accounting Principles, Pareteum executives, including VICTOR BOZZO and EDWARD O’DONNELL, caused Pareteum at times to recognize revenue at the time a purchase order was signed for the full projected value of the purchase order, even though they were aware that typically the relevant counterparties were obligated to pay that amount only if and when in the future all SIM cards in the purchase order had been shipped, were activated by Pareteum’s customers, and were used for one month on Pareteum’s network. As BOZZO and O’DONNELL were also aware, in many cases, pervasive technical and operational issues meant that Pareteum was actually incapable of satisfying its performance obligations under the terms of its agreements with customers.
As a result of this fraudulent revenue recognition practice, from at least in or about 2018 through the first half of 2019, Pareteum improperly recognized and reported to the investing public more than $40 million of revenue that it should not have.
As to one customer, referred to in the Indictment as Customer-4, Pareteum recognized revenue totaling $4.4 million based on an unsigned, draft purchase order for €6.3 million, which Customer-4 had not accepted. Instead, Customer-4 had signed a purchase order, which itself did not reflect a binding commitment but merely reflected anticipated future sales, for only €630,000 – in other words, one tenth of the draft €6.3 million purchase order and far less than the revenue Pareteum recognized. Pareteum nonetheless recognized $4.4 million in revenue for Customer-4 in three tranches, and at the time it recognized each of those tranches, Customer-4’s platform was not yet live and so it could not yet use Pareteum’s services.
* * *
BOZZO, 54, of Ringoes, New Jersey, and O’DONNELL, 58, of East Atlantic Beach, New York, are each charged with one count of conspiracy to commit securities fraud, make false SEC filings, and improperly influence the conduct of audits, which carries a maximum penalty of five years in prison; one count of securities fraud under Title 15, which carries a maximum penalty of 20 years in prison; one count of false SEC filings, which carries a maximum sentence of 20 years in prison; and one count of improperly influencing the conduct of audits, which carries a maximum penalty of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams further thanked the SEC, which today filed a parallel civil action against BOZZO and O’DONNELL and also announced settled charges against STEFANSKI.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Kiersten A. Fletcher, Margaret Graham, and Allison Nichols are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Former Airline Gate Agent Sentenced for Cheating Airline Ticketing SystemRead the Press Release
BOSTON – A Chelsea woman was sentenced today in federal court in Boston for using her position as an airline gate agent to convert low-cost flights to more expensive flights and destinations for friends, family and acquaintances.
Tiffany Jenkins, 35, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to time served (one day) and 18 months of supervised release with the first three months to be served on curfew. Jenkins pleaded guilty to three counts of wire fraud in October 2019.
As a gate agent, Jenkins had access to the airline’s computer reservation database and had the ability to use a special code, referred to as an involuntary exchange or “INVOL,” to change flights for customers at no additional cost. This code enables agents to change flights for customers who miss their flights or experience a death in the family.
During a 15-month period, from approximately July 1, 2016, through Sept. 27, 2017, Jenkins executed approximately 505 involuntary ticket exchanges for more than 100 different passengers. Many of those exchanges occurred after the passenger was first booked on domestic flights at one of the airline company’s lowest available fares—often, roundtrip flights between Las Vegas, Nev., and Long Beach, Calif. A short time later, Jenkins exchanged those tickets for a completely different city pair, generally involving much more expensive international locations, for friends, family and acquaintances.
Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney David M. Holcomb of the Securities, Financial & Cyber Fraud Unit prosecuted the case.
Five sent to prison in nationwide fraud scheme targeting elderly victimsRead the Press Release
HOUSTON – All people charged in a conspiracy to commit mail fraud have been ordered to federal prison, announced U.S. Attorney Alamdar S. Hamdani.
Indian citizens MD Azad, 26, Sumit Kumar Singh, 30, Himanshu Kumar, 26, MD Hasib, 28, and Anirudha Kalkote, 26, admitted they participated in a fraud ring from 2019-2020 which operated out of various cities including Houston. All illegally resided in Houston.
U.S. District Judge Kenneth Hoyt has now ordered Hasib to serve 78 months in federal prison. The court previously sentenced Singh, Kumar and Kalkote each also to 78 months, while Azad, the highest ranking member of the conspiracy in the United States, received 188 months. Not U.S. citizens, all are expected to face removal proceedings following the prison terms.
At the respective hearings, the court heard evidence from victim impact letters that described the suffering that almost 200 victims, many of whom were elderly, had endured because of this fraud. Some victims lost their life savings. Others were threatened when they refused to continue to pay and described continuing fear and ongoing anxiety after being watched through the video cameras on their home computers. In handing down the sentences, the court noted that the victim letters sounded like a “horror show.”
“Anxiety, fear, humiliation and devastating financial loss are what these victims endured,” said Hamdani. “The criminals were relentless, preying on the elderly, often revictimizing their targets. These scammers from India didn’t care what impact their scheme had; all they cared about was money and a lot of it. Thankfully, the court imposed a just sentence for each of these ruthless fraudsters, bringing the victims peace and closure.”
“The sentences imposed for the defendants in this case should serve as a harbinger for anyone attempting to defraud and manipulate our nation’s elderly. Prison awaits you,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation (CI). “This was an effort that combined the investigative skills of multiple law enforcement agencies that partnered together to uphold our commitment to the Elder Justice Initiative. We will continue to protect our seniors.”
The scheme targeted elderly victims throughout the United States and elsewhere.
The ring tricked and deceived victims using various ruses and instructed them to send money via wire through a money transmitter business such as Western Union or MoneyGram, by buying gift cards and providing to the fraudsters or by mailing cash to alias names via FedEx or UPS.
Part of the scheme involved fraudsters contacting victims by phone or via internet sites for computer technical support and directing victims to a particular phone number. Once victims contacted the fraudsters, they were told various stories such as they were communicating with an expert that needed remote access to their computer in order to provide technical support services. The fraudsters then gained access to victims’ personal data and bank and credit card information.
Victims typically paid a fee to conspirators for the fake technical support but were later told they were due a refund. Through paying for “technical support” or through the “refund” process, the ring gained access to the victim’s bank account(s) and credit cards and manipulated the accounts to make it appear the victim was paid too large a refund due to a typographical error. Victims were then instructed to reimburse the ring by various means.
Victims were sometimes re-victimized multiple times and threatened with bodily harm if they did not pay.
All five individuals will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI, U.S. Postal Inspection Service and IRS CI conducted the investigation with assistance from Homeland Security Investigations, Fort Bend County Sheriff’s Office and other local law enforcement agencies throughout the United States including the Sheriff’s Office and Commonwealth’s Attorney’s Office of Augusta County, Virginia. Assistant U.S. Attorneys Belinda Beek and Quincy Ollison prosecuted the case.
The case is brought as a part of the Elder Justice Initiative. Its goal is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults.
In March 2020, the U.S. Department of Justice launched National Elder Fraud Hotline to help combat fraud against older Americans and provide services to victims. If you or someone you know is a victim of elder fraud, we encourage you to call the National Elder Fraud Hotline at 833–FRAUD–11 (833–372–8311).
The hotline is open Monday through Friday from 10 a.m. to 6 p.m. eastern time. Services are available for speakers of English, Spanish and other languages.
Felon Sentenced to 30 Months Imprisonment on Federal Gun ChargeRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that ORONDE GABRIEL, age 39 of New Orleans, Louisiana, was sentenced today by United States District Judge Eldon E. Fallon to 30 months of imprisonment after pleading guilty to possessing a firearm as a convicted felon, in violation of the Federal Gun Control Act, Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). GABRIEL was also sentenced to three (3) years of supervised release following his release from prison and a mandatory $100 special assessment fee.
According to court documents, GABRIEL was in an automobile accident on September 27, 2021. A police officer observed the crash and found GABRIEL in possession of a fully loaded Taurus Model G2C, nine-millimeter handgun, with an extended high-capacity magazine. GABRIEL was previously convicted of conspiracy to make false and fictitious statements in connection with the acquisition of a firearm in the United States District Court for the Eastern District of Louisiana.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Orleans Levee District Police. It was prosecuted by Assistant U.S. Attorney Edward Rivera of the Financial Crimes Unit.
El Departamento de Justicia Llega a un Acuerdo con una Compañía de Servicios de Consejería que Resuelve Acusaciones de Discriminación Relacionada con la InmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Greene Kleen of South Florida, Incorporated (Greene Kleen), una empresa de servicios de conserjería con sede en Miami, Florida. El acuerdo conciliatorio resuelve la determinación del Departamento de que Greene Kleen vulneró la ley de Inmigración y Nacionalidad (INA) al discriminar a no ciudadanos de los EE. UU. al verificar su permiso para trabajar en los Estados Unidos.
«Los empleadores no pueden imponer requisitos de documentos específicos a los trabajadores para demostrar su permiso para trabajar que difieran en función de la ciudadanía o el estatus migratorio», dijo Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento no tolerará estas prácticas ilegales y discriminatorias, que crean barreras innecesarias al empleo para las personas que solo están intentando ganarse la vida».
La investigación del Departamento determinó que, desde al menos el 1 de enero del 2019, hasta el 28 de febrero del 2022, Greene Kleen permitía, de forma rutinaria, a los ciudadanos de los EE. UU. elegir la documentación aceptable que deseaban presentar para demostrar su permiso para trabajar, pero, de forma rutinaria, requería que residentes permanentes legales y otros no ciudadanos de los EE. UU. presentaran solamente un tipo de documentación.
Conforme los términos del acuerdo, Greene Kleen pagará $140,000 en sanciones civiles a los Estados Unidos, capacitará a sus empleados en cuanto a los requisitos antidiscriminatorios de la INA, revisará sus políticas de empleo y se someterá a supervisión por parte del Departamento.
Las leyes federales permiten a todos los trabajadores elegir la documentación válida y legalmente aceptable que desean presentar para demostrar su identidad y permiso para trabajar en los EE. UU., independientemente de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen. La disposición antidiscriminatoria de la INA prohíbe a los empleadores solicitar documentos específicos o innecesarios por motivos del estatus de ciudadanía, estatus migratorio o nacionalidad de origen de un trabajador. De hecho, muchos no ciudadanos de los EE. UU., incluidos los residentes permanentes legales, son elegibles para varios de los mismos tipos de documentos para demostrar su permiso para trabajar como lo son los ciudadanos de los EE. UU. (por ejemplo, un carnet de identidad estatal o licencia de conducir y una tarjeta de Seguro Social sin restricciones). Los empleadores deben permitir que los trabajadores presenten cualquier documentación aceptable que los trabajadores mismos elijan y no pueden rechazar documentación válida que parezca razonablemente genuina y relacionada con el trabajador.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminar al verificar el permiso para trabajar de alguien en el sitio web de IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito o visualizar una presentación a la carta; o visitar los sitios web de la IER en inglés y español. Suscribirse a actualizaciones por correo electrónico de la IER.
greene_kleen-signed-settlement.pdfEl Departamento de Justicia Llega a un Acuerdo con un Fabricante con Sede en California que Resuelve Acusaciones de Discriminación Relacionada con la InmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha conseguido un acuerdo conciliatorio con Home and Body Company (Home and Body), un fabricante de jabones y cremas con sede en Huntington Beach, California. El acuerdo resuelve la determinación del Departamento que Home and Body vulneró la ley de Inmigración y Nacionalidad (INA) al discriminar a no ciudadanos de los EE. UU. cuando verificó su permiso para trabajar en los Estados Unidos.
«Los empleadores no pueden limitar el tipo de documentos que los trabajadores pueden usar para demostrar su permiso para trabajar», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento se compromete a eliminar las barreras discriminatorias ilegales que dificultan el trabajo para personas en los EE. UU.».
La investigación del Departamento determinó que, desde al menos el 23 de septiembre del 2019 hasta el 1 de octubre del 2020, Home and Body requerían, de forma rutinaria, que los residentes legales permanentes presentaran un documento de inmigración específico al verificar su permiso para trabajar, en función de su ciudadanía o estatus migratorio.
Conforme los términos del acuerdo, Home and Body pagará $130,000 en sanciones civiles a los Estados Unidos, capacitará a sus empleados en cuanto a los requisitos de la INA, revisará sus políticas de empleo y se someterá a supervisión por parte del Departamento.
Las leyes federales permiten a todos los trabajadores elegir la documentación válida y legalmente aceptable desean presentar para demostrar su identidad y permiso para trabajar en los EE. UU., independientemente de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen. La disposición antidiscriminación de la INA prohíbe a los empleadores solicitar documentos específicos o innecesarios por motivos del estatus de ciudadanía, estatus migratorio o nacionalidad de origen de un trabajador. De hecho, muchos no ciudadanos de los EE. UU., incluidos los residentes permanentes legales, son elegibles para varios de los mismos tipos de documentos para demostrar su permiso para trabajar como lo son ciudadanos de los EE. UU. (por ejemplo, un carnet de identidad estatal o licencia de conducir y una tarjeta de Seguro Social sin restricciones). Los empleadores deben permitir que los trabajadores presenten cualquier documentación aceptable que los trabajadores mismos elijan y no pueden rechazar documentación válida que parece ser genuina.
La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Puede obtener más información sobre cómo los empleadores pueden evitar la discriminar al verificar el permiso para trabajar de alguien en el sitio web de IER. Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1‑800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito o visualizar una presentación a la carta; o visitar los sitios web de la IER en inglés y español. Suscribirse a actualizaciones por correo electrónico de la IER.
home_and_body_settlement.pdfEDVA Honors Federal, State, and Local Law Enforcement for Exceptional Service to the CommunityRead the Press Release
ALEXANDRIA, Va. – Today U.S. Attorney Jessica D. Aber recognized over 300 officers and agents from federal, state, and local law enforcement agencies with Public Service Awards.
The Eastern District of Virginia (EDVA) typically holds annual awards ceremonies to recognize the law enforcement officials for their service and contribution to various criminal and civil cases investigated and prosecuted here in EDVA. Award ceremonies took place September 6 in Newport News, September 7 in Norfolk, September 26 in Richmond, and today in Alexandria.
“Here in EDVA, as part of the Department of Justice, our mission is to uphold the rule of law, keep our country safe, and protect civil rights.” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “But we do not – and we cannot – do this work alone. Every day, federal, state, and local law enforcement officers from across the country work to protect their communities. These awardees were critical teammates on federal cases that represent the very best of this noble work.”
The awards highlighted federal cases, operations, and initiatives from 2022. The federal, state, and local law enforcement agencies listed below had officers and/or agents who were recognized for their bravery, outstanding collaboration, investigative achievement, investigative excellence, and victim assistance. Members of the following agencies were recognized at each of the ceremonies:
Alexandria
Newport News
Norfolk
Richmond
Alexandria Police
ATF Washington Field Division
ATF Washington Field Division
ATF Washington Field Division
Arlington County Police
Department of Labor OIG
Chesapeake Police Department
Department of Education – OIG
ATF Washington Division
FBI Cincinnati
Department of Homeland Security – OIG
Department of Homeland Security - OIG
Child Exploitation and Obscenity Section – HTIU
FBI Norfolk Field Office
Department of Labor – OIG
Department of Labor – OIG
Defense Contract Audit Agency
Gloucester County Sheriff’s Office
Drug Enforcement Administration
Drug Enforcement Administration Washington
Defense Criminal Investigative Services
Hampton Police
FBI-Norfolk Field Office
FBI-Richmond Field Office
Defense Intelligence Agency-Office of Inspector General
Homeland Security Investigations
General Services Administration– OIG
FDIC- OIG
Department of Homeland Security
Mathews County Sheriff’s Office
Homeland Security Investigations
Henrico County Police
Drug Enforcement Administration Memphis
Naval Criminal Investigative Service
Naval Criminal Investigative Service
Homeland Security Investigations
Drug Enforcement Administration Washington
Newport News Police
Norfolk Police
IRS-Criminal Investigation
FBI Washington Field Office
U.S. Marshals Service
U.S. Marshals Service
Richmond Police
Homeland Security Investigations
U.S. Postal Inspection Service
U.S. Postal Inspection Service
Small Business Administration – OIG
IRS-Criminal Investigations
Virginia Beach Police
Virginia Attorney General’s Office
Social Security Administration- OIG
Loudoun County Sheriff’s Office
Virginia State Police
Virginia Beach Police
U.S. Postal Inspection Service
Manassas City Police Department
Virginia Dept. of Forensic Science
VCU Police
Metropolitan Washington Airport Authority Police
Virginia Medicaid Fraud Control Unit
Virginia Office of Attorney General
Montgomery County Police Department
Virginia State Corporation Commission
Virginia Office of the State Inspector General
Naval Criminal Investigative Service
Virginia State Police
Virginia State Corporation Commission
Small Business Administration - OIG
TSA Federal Air Marshal Service
U.S. Air Force – Office of Special Investigations
U.S. Citizenship and Immigration Service
U.S. Department of State's Diplomatic Security Service (DSS)
U.S. Marine Corps
U.S. Park Police
U.S. Postal Inspection Service
U.S. Secret Service
Virginia State Police
In addition to awards presented for investigative efforts, the peer recovery specialists of Project Recover and their law enforcement and emergency medical partners were also recognized with an award at the Richmond ceremony. Project Recover funds certified peer recovery specialists (CPRS) assigned to Richmond City PD, Richmond Ambulance Authority, Chesterfield County PD, Hanover County Sheriff’s Office, eleven Bon Secours hospitals, and the Bon Secours’ Partial Hospitalization Program. These CPRSs assist overdose victims in getting into treatment and recovery programs immediately following drug overdose resuscitation and provide follow-up services and support. These individuals and their medical and law enforcement counterparts were awarded for their significant impact on public health and safety through trainings, Naloxone distribution, engagements with individuals suffering from substance use disorder, and increasing public awareness of treatment and recovery services.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia.
Dorchester Man Indicted for Illegal ReentryRead the Press Release
BOSTON – A Dorchester man was indicted today by a federal grand jury in Boston for unlawfully reentering the United States after deportation.
Tommy Raul Jimenez-Perez, 26, was charged with illegal reentry and will appear in U.S. District Court in Boston at a later date.
According to the indictment, Jimenez-Perez was removed on March 3, 2020. It is alleged that, sometime after his removal, Jimenez-Perez unlawfully reentered the United States.
The charge of illegal reentry provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Todd M. Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and Boston Police Commissioner Michael Cox made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of the Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Davenport Man Convicted of Producing, Distributing, and Possessing Child PornographyRead the Press Release
DAVENPORT, IA – A federal jury convicted a Davenport man yesterday for producing, distributing, and possessing child pornography.
According to public court documents and evidence presented at trial, David Michael Woods, 51, sexually abused two minor victims in his care and produced recordings of the abuse and other sexual images of the minor victims, which he sent to others.
Jason Richard Heider, 47, of Moline, Illinois, was also charged. In July 2022, Heider pled guilty to production and receipt of child pornography and admitted to his involvement in the abuse and production of child pornography of the minor victims.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Cumberland County Man Charged with Producing and Distributing Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that James Sollenberger, age 54, of Cumberland County, Pennsylvania, was indicted by a federal grand jury with producing and distributing child pornography.
According to U.S. Attorney Gerard M. Karam, the indictment alleges that between March 5-17, 2017, in Cumberland County, Sollenberger enticed a minor to engage in sexually explicit conduct for the purpose of producing child pornography. It is further alleged that Sollenberger distributed child pornography on March 21, 2017.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
The investigation was conducted by the Department of Homeland Security. Assistant U.S. Attorney Christian Haugsby is prosecuting the case.
The maximum penalty under federal law for these offenses is up to 50 years’ imprisonment, a term of up to lifetime supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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County Water District Agrees to Pay over $1.5 Million to Resolve False Claims Act Allegations That It Knowingly Retained Overpayment of Federal and State Grant FundsRead the Press Release
SAN FRANCISCO – The Clearlake Oaks County Water District (District), located in Lake County, California, has agreed to pay approximately $1.6 million to resolve claims that it failed to repay federal and state grant funds that it received, but was not entitled to keep.
In February 2017, severe winter storms, flooding, and mudslides affected California counties statewide. In June, the Federal Emergency Management Agency (FEMA) declared a major disaster and allowed eligible entities, including public entities, to apply for assistance in the form of reimbursement for disaster-related expenses from FEMA and the California Governor’s Office of Emergency Services (Cal OES). One such applicant was the District, a county water district formed pursuant to the California Water Code.
The United States alleges that following the District’s application for disaster relief funds, the District received reimbursements from FEMA and Cal OES for expenses for which the District had already been reimbursed by its insurer California Joint Powers Insurance Authority (CJPIA). The United States alleges further that the District knew the funds it received from FEMA and Cal OES were an overpayment, but instead of returning those funds, retained the funds in violation of the False Claims Act and state law. The United States alleges that the District knowingly concealed the funds and made false statements to the United States and Cal OES material to its obligation to return the funds. These false statements included quarterly reports in which the District stated that it had not received excess funds and project closeout certifications in which the District claimed that it was entitled to the full dollar amount approved without deducting the amount it had already received from its insurer.
“FEMA disaster relief funds play a critical role in helping communities recover from natural disasters,” said U.S. Attorney Ismail J. Ramsey. “It is unacceptable for any entity, including a public entity, to divert funds from these programs through fraud and enrich itself at the expense of the American taxpayer. This Office will continue to pursue recipients of disaster relief funds that misused the program by retaining funds to which they were not entitled.”
Dr. Joseph V. Cuffari, Inspector General of the U.S. Department of Homeland Security, said, “DHS OIG is grateful for our collaboration with our partners in the United States Attorney’s Office for the Northern District of California. Together, we ensured that more than $1.1 million are repaid to the United States. We will continue to aggressively investigate and support the prosecution of these kinds of fraudsters to ensure that appropriated relief funds are accounted for and used for the purpose Congress intended.”
The total amount of the settlement to be paid is $1,589,725.50, plus interest. Of that amount, the District will pay $1,192,294.12 to the United States and $397,431.38 to Cal OES.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Nicole Mitchell, a former employee of the District. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Nicole Mitchell v. Clearlake Oaks County Water District, Case No. 1:20-cv-02388 (N.D. Cal.).
Assistant U.S. Attorney Savith Iyengar is handling this matter for the government, with assistance from Garland He. The investigation and settlement resulted from a coordinated effort by the U.S. Attorney’s Office for the Northern District of California and DHS-OIG.
The investigation and resolution of this matter illustrate the government’s emphasis on combating fraud in federal grants. 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 Homeland Security Office of Inspector General at www.oig.dhs.gov/hotline.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Cohoes Man Sentenced to 135 Months on Drug and Obstruction ConvictionsRead the Press Release
ALBANY, NEW YORK – Andrew O’Connor, age 36, of Cohoes, New York, was sentenced today to 135 months in prison, to be followed by 5 years of supervised release, for trafficking methamphetamine in the Capital Region and obstructing of justice. United States Attorney Carla B. Freedman; Alfred A. Watson, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Ketty Larco-Ward, Postal Inspector in Charge of the Boston Division of the U.S. Postal Inspection Service (USPIS), made the announcement.
As part of his guilty plea, O’Connor admitted that he distributed ounce quantities of methamphetamine in Cohoes in March, April, and June 2022, and had a shipment of over one pound of methamphetamine sent to him around June 15, 2022; investigators seized the package before it could reach O’Connor. O’Connor also admitted that after his arrest on federal charges, he contacted a co-conspirator to make arrangements to have the co-conspirator delete the information on several of O’Connor’s cell phones.
This case was investigated by USPIS and the FBI’s Capital District Safe Streets Gang Task Force, which includes FBI Special Agents and members of federal, state and local law enforcement agencies. Assistant U.S. Attorney Dustin C. Segovia prosecuted the case.
Chinese National Sentenced to 51 Months in Prison for Meth Trafficking on the Island of SaipanRead the Press Release
Saipan, CNMI – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that the United States District Court for the NMI ordered 51 months imprisonment for Bing Li, age 41, a citizen of the People’s Republic of China (PRC), for Possession with Intent to Distribute Methamphetamine, in violation of 21 U.S.C. § 841(a)(1). The Court also ordered Li to serve three years of supervised release and pay a $100 special assessment fee. He was further ordered to report for deportation proceedings.
In January 2023, Bing Li received a package at the U.S. Post Office in Chalan Kanoa, Saipan. The package was addressed to Li and mailed by a sender in San Leandro, California. During an inspection of the package, Commonwealth of the Northern Mariana Islands Customs and Biosecurity Officers discovered two plastic bags inside the package containing a total of 831.6 grams of methamphetamine with 99% purity levels. Upon questioning by agents of the Drug Enforcement Administration, Li admitted he agreed with others to receive and further distribute the methamphetamine inside the package for personal profit. In January 2023, the street value on Saipan of the seized methamphetamine was at least $332,000.
“This case demonstrates the continued targeting of mail parcels by law enforcement to interdict illicit drugs entering our jurisdictions,” stated United States Attorney Anderson. “The penalties for traffickers are significant and include removal from the United States for foreign nationals.”
This case was investigated by the CNMI Customs & Biosecurity and the U.S. Drug Enforcement Administration. Assistant United States Attorney Albert S. Flores Jr. in the District of the Northern Mariana Islands prosecuted the case.
Chesapeake Man Sentenced for Five-Hour Armed Robbery SpreeRead the Press Release
NORFOLK, Va. – A Chesapeake man was sentenced yesterday to 29 years in prison for his role in a series of armed robberies of 7-Eleven establishments in the cities of Newport News, Norfolk, and Virginia Beach.
According to court documents, starting just before midnight on July 24, 2019, and into the early morning hours of July 25, 2019, Deric Simons, 23; his co-conspirator Ronald Lee Brookins, Jr., 22, of Suffolk; and a third individual conducted a series of armed robberies at 7-Eleven convenience stores. Beginning at a store in Newport News, the three men entered the stores armed with a firearm, a knife, and a BB gun that resembled a real firearm. While brandishing their weapons, they demanded U.S. currency and commercial products from frightened employees. After leaving Newport News, the three conspirators committed four additional robberies, moving between locations in Norfolk and Virginia Beach. During the fifth and final robbery, Brookins and the third co-conspirator entered the convenience store while Simons remained in the getaway vehicle. In addition to the store employee, there were three customers inside the store at the time of the robbery. Brookins and the third co-conspirator brandished the BB gun and the loaded firearm at the employee and customers. As Brookins began to empty the register, an armed customer, fearing for everyone’s safety, discharged his personal weapon, injuring Brookins and killing the third co-conspirator.
In June, Brookins was sentenced to 25 years in prison for his role in the robberies.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Steve R. Drew, Chief of Newport News Police; Mark Talbot, Chief of Norfolk Police; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement after sentencing by Senior U.S. District Judge Rebecca Beach Smith.
Assistant U.S. Attorneys Kristin Bird and Megan Montoya prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-168.
COVID Fraud Lands Norman Man in Federal Prison for Two YearsRead the Press Release
OKLAHOMA CITY – Earlier this week, BRIAN LEE FOSTER, 54, of Norman, Oklahoma, was sentenced to serve two years in prison for his role in a Coronavirus Aid, Relief, and Economic Security ("CARES") Act fraud scheme, announced U.S. Attorney Robert J. Troester.
On September 7, 2022, a federal grand jury returned a two-count indictment against Foster, charging him with making false statements to a financial institution on loan applications under the Paycheck Protection Program (PPP). The CARES Act provided more than $2 trillion in relief for individuals and businesses adversely affected by the COVID-19 pandemic. The CARES Act also authorized the U.S. Small Business Administration to create the PPP to promote lending to small businesses affected by the pandemic for job retention and certain other expenses.
According to the indictment, Foster applied for and obtained more than $40,000 in PPP loans in his name and the name of another. The indictment alleges that Foster made false statements on the PPP loan applications, by providing false payroll information and providing false tax documentation. The indictment alleges Foster used the loan proceeds for his personal benefit.
On November 15, 2022, Foster pleaded guilty to Count 2 of the indictment and admitted that he made false statements to a financial institution on a PPP loan application. He further admitted to submitting false income information in connection with the loan application.
At a sentencing hearing yesterday, U.S. District Judge Scott Palk sentenced Foster to serve 24 months in federal prison, followed by three years of supervised release. In announcing the sentence, the court noted that the defendant’s conduct was dishonest and demonstrated his willingness to lie for personal gain, at the risk of others who were entitled to relief benefits. The court also noted that Foster committed the offense while awaiting sentencing in another federal criminal case and ordered Foster to pay $21,474.76 in restitution to the U.S. Small Business Administration.
This case is the result of an investigation by the FBI Oklahoma City Field Office and the U.S. Small Business Administration Office of Inspector General. Assistant U.S. Attorney Jessica Perry prosecuted the case.
Reference is made to court filings for further information.
CEO of Immigration Services Company Sentenced to 10 Months in Prison Following Trial Conviction for Immigration Fraud OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ULADZIMIR DANSKOI, the CEO of an immigration services firm, was sentenced today by U.S. District Judge J. Paul Oetken to 10 months in prison for conspiracy to defraud the United States and conspiracy to commit immigration fraud.
U.S. Attorney Damian Williams said: “Uladzimir Danskoi, an experienced immigration practitioner who ran an immigration services firm’s Brooklyn office, disregarded the law and helped make a mockery of the U.S. immigration system by conspiring to defraud the United States and commit asylum and visa fraud. Asylum is meant to help vulnerable people who justifiably fear imprisonment, assault, torture, or death, because of their religion, nationality, ethnicity, political views, gender, or sexual orientation. Danskoi and his codefendants exploited the immigration system for financial gain by knowingly peddling false claims and coaching clients to lie under oath. They now face time in prison for these crimes.”
According to the allegations in the Indictment and evidence presented at trial:
A New York City immigration services firm, “Russian America,” worked with clients – primarily aliens from Russia and the Commonwealth of Independent States – seeking visas, asylum, citizenship, and other forms of legal status in the United States. Among other things, Russian America advised certain of their clients in the manner in which they were most likely to obtain asylum in this country, fully understanding that those clients did not legitimately qualify for asylum. The firm also prepared and submitted to U.S. Citizenship and Immigration Services (“USCIS”) clients’ fraudulent Form I-589 asylum applications, as well as asylum affidavits – statements of an asylum applicant’s personal history and claimed basis for asylum, often including allegations of past persecution – and related supporting documentation. Members and associates of each firm also coached certain clients to lie under oath during interviews conducted by USCIS Asylum Officers and provided legal representation to their clients during various immigration proceedings.
ULADZIMIR DANSKOI and previously convicted codefendant YURY MOSHA operated and maintained Russian America’s Brooklyn and Manhattan offices, respectively. Each advised and aided their clients to seek asylum under fraudulent pretenses. Among other things, DANSKOI advised a client, a confidential Federal Bureau of Investigation (“FBI”) source (the “Source”), to seek asylum on the fraudulent basis that the client was persecuted in Ukraine for being a gay male, when in fact DANSKOI fully understood that the Source was a heterosexual male who suffered no such persecution. DANSKOI also advised the Source on how to most effectively advance this fraudulent claim; connected the Source with previously convicted codefendant KATERYNA LYSYUCHENKO, who helped the Source prepare a fraudulent personal history (or “Affidavit”); and personally submitted the Source’s fraudulent asylum application and Affidavit, filed under penalty of perjury, to USCIS.
Meanwhile, MOSHA encouraged a second client, a Government cooperating witness posing as a person seeking asylum (the “Client”), to establish and maintain online blogs that were critical of the Client’s home country as a way to generate a claim that, based on the Client’s invented political opinion, it was unsafe for him to return to his native country. MOSHA did so understanding that the Client’s decision to blog was prompted not by his own idea or initiative, but by MOSHA’s instruction, and that the Client’s motive for blogging was to contrive a basis for asylum rather than to publicly express a sincerely held opinion. MOSHA also understood that the Client lacked the desire, topical knowledge, journalistic ability, and technical expertise to write blogposts and maintain these blogs. Accordingly, Mosha connected the Client with unapprehended codefendant TYMUR SHCHERBYNA, a Ukraine-based purported journalist, with the understanding that, in exchange for a fee, SHCHERBYNA would and did maintain and ghost-write the Client’s blog. MOSHA also personally prepared and submitted the Client’s asylum application, Affidavit, and related paperwork under penalty of perjury, knowing that these documents contained material falsehoods.
When the Source and Client needed to prepare for an interview, conducted under oath by a USCIS asylum officer, DANSKOI and MOSHA connected each to previously convicted codefendant JULIA GREENBERG, a New York immigration attorney, who coached both clients to lie to Asylum Officers and provided legal representation to these clients during immigration proceedings. For example, GREENBERG, understanding that the Source was a heterosexual male who did not suffer persecution in his home country, prepared the Source for questioning by an Asylum Officer, advised the Source how to falsely answer certain anticipated questions from the Asylum Officer, and instructed the Source to dress and change the Source’s appearance in a manner that comported with GREENBERG’s vision of a gay male.
DANSKOI and MOSHA also agreed to help certain Russian America clients obtain L1 employment visas by creating fake leases and staging offices to create the impression to USCIS that these clients had legitimate jobs waiting for them in the United States.
A similar investigation into another Brooklyn-based firm engaged in asylum fraud on behalf of clients from Russia and the Commonwealth of Independent States resulted in the convictions of three additional individuals: attorneys ILONA DZHAMGAROVA and ARTHUR ARCADIAN, and IGOR REZNIK.
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DANSKOI, 56, of Staten Island, New York, was previously convicted of one count of conspiring to defraud the United States and conspiring to commit immigration fraud following a two-week trial before Judge Oetken.
DANSKOI is the seventh defendant to have been sentenced in two immigration fraud cases pending before Judge Oetken and U.S. District Judge Mary Kay Vyskocil. The six other defendants who have been sentenced by Judges Oetken or Vyskocil are:
- ILONA DZHAMGAROVA, 46, of Brooklyn, New York, who was sentenced to two years in prison;
- YURY MOSHA, 47, of Staten Island, New York, who was sentenced to 10 months in prison;
- IGOR REZNIK, 40, now of Pennsylvania, who was sentenced to 10 months in prison;
- ARTHUR ARCADIAN, 44, of Brooklyn, New York, who was sentenced to 6 months in prison;
- JULIA GREENBERG, 43, of Staten Island, New York, who was sentenced to 3 months in prison; and
- KATERYNA LYSYUCHENKO, of Milan, Italy, who was sentenced to time-served (approximately 2 months in prison).
Mr. Williams praised the outstanding investigative work of the FBI’s New York Eurasian Organized Crime Task Force, Homeland Security Investigations, and USCIS’s New York Asylum Office and Fraud Detection and National Security Unit, and he thanked U.S. Customs and Border Protection for its assistance.
This case is being prosecuted by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys David R. Felton and Jonathan E. Rebold are in charge of the prosecution.
Buffalo man pleads guilty to production of child pornographyRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Michael Regan, 41, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to production of child pornography, which carries a mandatory minimum penalty of 15 years in prison, a maximum of 30 years and a $250,000 fine.
Assistant U.S. Attorney Caitlin M. Higgins, who is handling the case, stated that in August 2020, Regan took a sexually explicit photo of Minor Victim 1 using his cellular telephone. Also in August 2020, during communications over the social media application TextNow, Regan directed Minor Victim 2 to send him sexually explicit images of herself. Regan then met Minor Victim 2 to engage in sexual contact. After the sexual contact, Regan instructed Minor Victim 2 not to tell anyone or he would come to her house. Minor Victim 2 felt threatened by Regan’s statement.
The plea is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia, and the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Matthew Miraglia.
Sentencing is scheduled for January 25, 2024, before Judge Sinatra.
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Bossier City Man Sentenced for Illegally Distributing and Possessing CocaineRead the Press Release
SHREVEPORT, La. – United States Attorney Brandon B. Brown announced that Demetrius Demontrae Richmond, 26, of Bossier City, Louisiana, was sentenced today by United States District Judge Elizabeth E. Foote. Richmond was sentenced to 51 months in prison, followed by 3 years of supervised release, for conspiracy to distribute and possession with intent to distribute cocaine and crack cocaine.
According to information presented in court, Richmond began obtaining cocaine and crack cocaine from an individual in approximately January 2020. Richmond would purchase the narcotics from this individual at various places in Shreveport and then distribute to other individuals. Richmond admitted to conspiring to distribute and possess with intent to distribute at least 267 grams of powder cocaine and 72 grams of crack cocaine.
The case was investigated by U.S. Drug Enforcement Administration, Federal Bureau of Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted by Assistant United States Attorney Jessica D. Cassidy.
The investigation and conviction of Richmond is part of an Organized Crime Drug Enforcement Task Force (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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Boise Tax Return Preparer Convicted by Jury of Filing False Tax Returns Sentenced to One Year in Federal PrisonRead the Press Release
BOISE – Andres Sanchez, 34, of Boise, was sentenced to one year in federal prison for willfully aiding and assisting in the preparation and filing of false or fraudulent tax returns on behalf of several clients, U.S. Attorney Josh Hurwit announced today.
Sanchez was convicted of six counts after a four-day jury trial in U.S. District Court before the Honorable B. Lynn Winmill. The federal jury was unable to reach a verdict on one remaining count.
During the trial, the jury heard evidence that Sanchez worked as a paid tax return preparer in Boise. For tax returns filed for tax years 2014, 2015, and 2016, the jury heard evidence that Sanchez counseled his clients to include ineligible dependents on their tax returns to increase tax refunds. The ineligible dependents resulted in dependency exemptions and refundable tax credits for Sanchez’s clients, including the child tax credit, additional child tax credit, and earned income credit. The ineligible dependents resulted in significant refunds in many cases where Sanchez’s clients would have otherwise owed taxes.
After Sanchez completes his prison term, he will serve one year of supervised release wherein he will be supervised by the U.S. Probation Office. In addition to the prison sentence, Sanchez was ordered to pay $38,119 in restitution.
“Prosecuting tax cheats is about ensuring fairness for the rest of Idahoans who follow the law,” said U.S. Attorney Hurwit. “We will continue to hold accountable anyone who prepares false tax returns and undermines the integrity of our tax system.”
“Tax return preparer fraud remains a top priority for IRS Criminal Investigation and we will continue to identify, investigate and recommend the prosecution of abusive return preparers,” said Andy Tsui, Special Agent in Charge, Denver Field Office. “I applaud the efforts of our special agents working these cases for promoting voluntary compliance with our tax laws, and reinforcing the message that tax preparers who file false information on tax returns will be prosecuted.”
U.S. Attorney Hurwit credited the investigative work of the IRS Criminal Investigation, which led to the charges. Assistant U.S. Attorneys Sean Mazorol and Darci Crane prosecuted the case.
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Boeing to Pay $8.1 Million to Resolve Alleged False Claims Act Violations Arising from Manufacture of V-22 Osprey AircraftRead the Press Release
The Boeing Company will pay $8,100,000 to settle allegations that it violated the False Claims Act by failing to adhere to critical manufacturing specifications in the production of composite parts for V-22 Osprey military aircraft, announced United States Attorney Jacqueline C. Romero.
The allegations against Boeing were brought to light by three whistleblowers who worked at Boeing’s manufacturing facility in Ridley Park, Pennsylvania.
The United States alleges that Boeing falsely certified to the government that it had complied with all manufacturing specifications for the fabrication of certain composite parts for the V-22 Osprey aircraft.
Composite parts for the V-22 Osprey are manufactured using a process that involves curing these parts in autoclaves. The autoclaves are large, precisely controlled chambers that regulate temperature and pressure over the extended period of time required to properly cure composite parts. Every composite part used in the V-22 must be cured at a particular temperature and pressure. The V-22 manufacturing specifications require Boeing to assure the accurate performance of the autoclaves by performing monthly temperature uniformity surveys, among other requirements. Temperature uniformity surveys are intended to verify that an autoclave is performing at expected temperatures or identify when an autoclave deviates from specified temperatures.
The United States contends that Boeing failed to comply with manufacturing specifications for certain V-22 composite parts manufactured at the Ridley Park facility. The government alleges that Boeing failed to conduct routine checks designed to ensure the consistent performance of autoclaves in which composite parts were cured. Specifically, the United States alleges that from 2007 through 2018 Boeing failed to perform monthly temperature uniformity surveys on autoclaves, failed to collect and analyze temperature uniformity survey data on a monthly basis, failed to verify that calibration and certification tags on autoclaves were current, and failed to direct random surveillance of autoclave processes – all in violation of the V-22 manufacturing specifications. The United States further alleges that Boeing failed to use appropriate thermal testing equipment and failed to maintain required documents concerning autoclave testing.
“Taxpayers deserve to get what they pay for, and members of our military deserve to know that no shortcuts have been taken in the manufacture of aircraft and other equipment upon which they depend. My office will continue to investigate vigorously all credible allegations of government contractors cutting corners and submitting false certifications in connection with payments from the Treasury,” said United States Attorney for the Eastern District of Pennsylvania Jacqueline C. Romero.
“Maintaining the integrity of the U.S. Department of Defense supply chain is a top priority for the Office of Inspector General’s Defense Criminal Investigative Service. The Department of Defense expects its contractors to adhere strictly to contract specifications when providing products to the U.S. military,” stated Patrick J. Hegarty, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office. Hegarty continued: “We are committed to working with our law enforcement partners and the U.S. Attorney’s Office for the Eastern District of Pennsylvania to investigate allegations of contractors circumventing required testing protocols and submitting false claims during the procurement process.”
“The integrity of the military procurement process, and ultimately warfighter safety and our national security, demand that our contractors comply strictly with manufacturing requirements, including protocols for equipment testing,” said Special Agent-in-Charge Greg Gross of the Navy Criminal Investigative Service Economic Crimes Field Office. “NCIS and our partners remain committed to rooting out any noncompliance with manufacturing specifications that threatens warfighter readiness.”
The False Claims Act provides for whistleblowers to receive a portion of the amount recovered because of their disclosures. In this case, the three whistleblowers collectively will receive $1,539,000 of the settlement proceeds.
The government’s investigation was led by Assistant United States Attorneys Joel M. Sweet and David A. Degnan, Auditor Dawn Wiggins, and Investigator Jeffrey Braun, all of the United States Attorney’s Office for the Eastern District of Pennsylvania, along with Trial Attorney Amy Likoff of the U.S. Department of Justice Commercial Litigation Branch, Fraud Section, and Special Agents of the Defense Criminal Investigative Service and the Navy Criminal Investigative Service. The whistleblower lawsuit is captioned United States ex rel. Robert C. Roath, et al. v. The Boeing Company, No. 16-cv-6547 (E.D. Pa.). The whistleblowers are represented by F. Emmett Fitzpatrick, III of Flamm Walton Heimbach and Joseph D. Mancano of Mancano Law, PLLC.
The settlement is not an admission by Boeing that it is liable under the False Claims Act.
Billings man sentenced to prison for possessing unregistered silencerRead the Press Release
BILLINGS — A Billings man who admitted to possessing an unregistered silencer that was recovered at a Billings bar after a shooting incident was sentenced today to one year and one day in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Elias Miguel Nava, 19, pleaded guilty in June to possession of an unregistered silencer.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that on Oct. 16, 2022, Billings Police Department officers recovered a silencer at Bullwhackers Bar after a shooting incident. On Oct. 23, 2022, police officers recovered a .22-caliber pistol and other firearms at the Wild West Bar after a shooting incident involving Nava. The pistol was in the possession of Nava and one of his co-defendants at the time. Social media, photos and videos showed Nava and his co-defendant in possession of the pistol with the silencer that was recovered on Oct. 16 attached.
Assistant U.S. Attorney Thomas K. Godfrey prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department 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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Bangladesh Citizen Sentenced to 14 Months in Federal Prison for Illegally Possessing a Stolen FirearmRead the Press Release
Saipan, CNMI – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that the United States District Court for the NMI ordered 14 months imprisonment for MD Ikbal, age 37, a citizen of Bangladesh living on the island of Rota, after being convicted of Illegal Alien in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(5)(A). Ikbal will enter deportation proceedings following his release from prison.
During June 2016, Ikbal arrived in the Commonwealth of the Mariana Islands (CNMI) pursuant to a CNMI-Only Transitional Worker (CW-1) visa. A CW-1 is a nonimmigrant visa that allows employers in the CNMI to apply for permission to employ individuals who are otherwise ineligible to work under other nonimmigrant worker categories. Following the expiration of his visa in January 2017, Ikbal remained on the island of Rota without lawful immigration status. In October 2021, Ikbal entered the home of another without permission and threatened to kill occupants. Ikbal was subsequently charged in local court for trespassing and assault, then released on bail.
During May 2022, police on Rota received a report that Ikbal was in possession of a firearm. Officers from the CNMI Department of Public Safety searched the island for Ikbal. After nine hours, they located Ikbal hiding in a jungle area, armed with a stolen .40 caliber handgun containing a fully loaded magazine. The firearm was a service weapon issued to a Rota police officer. The gun was reported stolen a week prior.
“Federal law prohibits foreign nationals from possessing firearms and ammunition except in limited circumstances,” stated United States Attorney Anderson. “These cases will be aggressively prosecuted by our office in an effort to keep our communities safe from gun crime.”
The CNMI Department of Public Safety, the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and U.S. Homeland Security Investigations investigated this case.
Assistant United States Attorney Albert S. Flores Jr. in the District of the Northern Mariana Islands prosecuted this case.
Assault of a Federal Officer Gets Man 18 Months in PrisonRead the Press Release
TUCSON, Ariz. – Last week, Jorge Oliverio Moran-Can, 42, of Guatemala, was sentenced by United States District Judge Scott H. Rash to 18 months in prison, followed by 36 months of supervised release. Moran-Can was previously convicted of one count of Assault of a Federal Officer.
A jury convicted Moran-Can on April 24, 2023, of assaulting a United State Border Patrol agent by intentionally shoving the agent down a steep, rocky incline. The agent sustained minor injuries.
The U.S. Border Patrol conducted the investigation in this case. Assistant U.S. Attorneys Sarah B. Houston, Frances Kreamer Hope, and Matthew C. Cassell, District of Arizona, Tucson, handed the prosecution.
CASE NUMBER: CR 22-01661-TUC-SHR
RELEASE NUMBER: 2023-141_Moran-Can# # #
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.Additional Five-Year Sentence for Prison AssaultRead the Press Release
TUCSON, Ariz. – Robert Cameron Foust, 39, of Alabama, was sentenced last week by United States District Judge Scott H. Rash to five years in prison. Foust will serve his five years consecutive to the sentence he is currently serving in CR 09-10100-JTM (District of Kansas). Foust previously pleaded guilty to Assault with a Dangerous Weapon.
On October 18, 2018, Foust, an inmate at the Federal Bureau of Prison’s Federal Correctional Center, in Tucson, Arizona, attacked another inmate with a prison-made knife. The victim fell to the ground and Foust continued to stab him. In total, the victim sustained more than 20 non-life-threatening wounds. Foust later told agents that had the victim resisted or defended himself during the stabbing event, Foust would have “smoked” the victim. Foust also admitted that he had made the five-inch knife. At the time of the attack, Foust was already serving a 185-month sentence for Commercial Robbery, Use of a Firearm During a Crime of Violence, and Felon in Possession of a Firearm.
The FBI and the Federal Bureau of Prisons conducted the investigation in this case. Assistant U.S. Attorney Serra M. Tsethlikai, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-19-00841-TUC-SHR
RELEASE NUMBER: 2023-142_Foust# # #
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.Ada Resident Pleads Guilty to Assault Resulting in Serious Bodily Injury in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Amya Elise Walker, age 20, of Ada, Oklahoma, entered a guilty plea to one count of Assault Resulting in Serious Bodily Injury in Indian Country.
On May 13, 2023, Walker violently attacked an elderly woman at an Ada residence, leaving the victim with multiple bruises and lacerations requiring medical care.
The crime occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, in the Eastern District of Oklahoma.
The charges arose from an investigation by the Chickasaw Nation Lighthorse Police and the Bureau of Indian Affairs.
The Honorable D. Edward Snow, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the plea and ordered the completion of a presentence investigation report. Walker will remain in the custody of the U.S. Marshal pending sentencing.
Assistant United States Attorney Kevin Gross represented the United States.
Acadiana Man Sentenced to 30 Years in Prison for Production of Child PornographyRead the Press Release
LAFAYETTE, La. – United States Attorney Brandon B. Brown announced that Jason Eric Lott, 40, of the Acadiana area in Louisiana, has been sentenced by United States District Judge Robert R. Summerhays to 360 months (30 years) in prison, followed by a lifetime of supervised release, for production of child pornography.
Lott developed a relationship with a 12-year-old minor female. Unbeknownst to the minor victim’s parents, Lott began engaging in a sexual relationship with the victim. In addition, Lott produced images of the minor victim engaging in sexually explicit conduct with him.
The case was investigated by Federal Bureau of Investigation and prosecuted by Assistant United States Attorney J. Luke Walker.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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15 KC-Area Residents Indicted for PCP Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – Fifteen Kansas City, Mo., area residents have been indicted by a federal grand jury for their roles in a conspiracy to distribute PCP and for illegally possessing firearms.
Russell L. Spencer II, also known as “Russ,” 44, Charles N. Hill, also known as “Chuck Wagon,” 42, Kessa R. Gines, 45, Charles J. Wiley, 44, Raven Hicks, 44, Dorothea L. Cain, also known as “Dea,” 52, Chaitez A. Sexton, also known as “Choddy,” 47, Bobby Graves III, 43, Robert E. Ridley, 46, Raymond D. Stewart, 31, Jabari M. Craddock, 28, Aaron J. Schultz, also known as “Tink,” 45, Austin W. Smith, 57, and Jimmy L. Abron, 41, all of Kansas City, Mo.; and Ra’Shaan R.Wilson, also known as “Rah Rah,” 28, of Belton, Mo., were charged in a 13-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, Sept. 26. That indictment was unsealed and made public today following the arrests of all 15 defendants.
The federal indictment alleges that each of the 15 defendants participated in a conspiracy to distribute one kilogram or more of PCP in Jackson County, Mo., from Oct. 15, 2021, to Sept. 16, 2023.
In addition to the drug-trafficking conspiracy, Cain is charged with one count of possessing PCP with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime and one count of being a felon in possession of a firearm. Cain allegedly possessed a Taurus 9mm semi-automatic handgun on March 24, 2023. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Cain has a prior federal felony conviction for conspiracy to distribute PCP, two prior felony convictions for possession of a controlled substance, two prior felony convictions for stealing, and prior felony convictions for robbery, distributing or manufacturing a controlled substances,
In addition to the drug-trafficking conspiracy, Sexton and Graves are charged together with one count of possessing fentanyl with the intent to distribute, one count of possessing a firearm in furtherance of a drug-trafficking crime and one count of being felons in possession of a firearm. Sexton and Graves allegedly possessed a Kimber .45-caliber semi-automatic handgun and a Taurus 9mm semi-automatic handgun on Aug. 17, 2022. Sexton has a prior federal felony conviction for being a felon in possession of a firearm, two prior convictions for distributing a controlled substance near a school, and a prior felony conviction for burglary. Graves has a prior federal felony conviction for possessing crack cocaine with the intent to distribute, two prior felony convictions for trafficking in drugs and a prior felony conviction for possession of a controlled substance.
In addition to the drug-trafficking conspiracy, Ridley is charged with one count of possessing PCP with the intent to distribute.
In addition to the drug-trafficking conspiracy, Stewart is charged with one count of possessing PCP with the intent to distribute and one count of possessing a firearm in furtherance of a drug-trafficking crime. Stewart allegedly possessed a Taurus 9mm semi-automatic handgun on July 6, 2023.
In addition to the drug-trafficking conspiracy, Craddock is charged with one count of possessing PCP with the intent to distribute and one count of possessing a firearm in furtherance of a drug-trafficking crime. Craddock allegedly possessed a Heckler & Koch 9mm semi-automatic handgun on July 6, 2023.
In addition to the drug-trafficking conspiracy, Smith is charged with one count of possessing PCP with the intent to distribute.
The federal indictment also includes a forfeiture allegation, which would require the defendants to forfeit to the government a residential property, two vehicles, and a money judgment in the amount of proceeds obtained as a result of their participation in the drug-trafficking conspiracy.
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 Special Assistant U.S. Attorney Brandon Gibson. It was investigated by the Drug Enforcement Administration and the Kansas City, Mo., Police Department.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
27 September 2023
Woodhull Man Sentenced to 240 Months in Prison for Attempted Crimes Against ChildrenRead the Press Release
ROCK ISLAND, ILL. – A Woodhull, Illinois, man, Scott Edward Raschke, 39, of the 200 block of Southeast Third Avenue, was sentenced on September 21, 2023, to 240 months of imprisonment for Attempted Sex Trafficking of Children, Attempted Enticement of a Minor, and Sexual Exploitation of a Child. He was further sentenced to a lifetime term of supervised release and a $300.00 special assessment.
At the sentencing hearing, the government proffered evidence that Raschke engaged in a months’ long online conversation in which he arranged to pay for sex with an eleven-year-old child. Ultimately, Raschke traveled to Moline, Illinois to meet the eleven-year-old for sex and to take sexually explicit photos of the child. Upon arriving in Moline, Raschke was apprehended by law enforcement.
Also at the hearing, Chief U.S. District Court Judge Sara Darrow discussed the seriousness of Raschke’s conduct, commenting on graphic nature of the conversations Raschke engaged in and his intent to memorialize the abuse of a child.
Raschke pled guilty to the charges in May of 2023. The statutory penalties for the offenses are a minimum of 15 years up to life imprisonment for Attempted Sex Trafficking of Children, a minimum of 15 years up to 30 years imprisonment for Sexual Exploitation of a Child, and a minimum of 10 years up to life imprisonment for Attempted Enticement of a Minor. The convictions also provided for a term of supervised release from five years to life.
The investigation was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jennifer L. Mathew represented the federal government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Wheeling man indicted for defrauding investors, tax evasionRead the Press Release
WHEELING, WEST VIRGINIA – Jeffrey James Morris, age 36, of Wheeling, West Virginia, has been indicted on twenty-eight counts of wire fraud and tax evasion in connection with the defrauding of investors and employees of his real estate development company.
Morris, the managing member and majority owner of Roxby Development, LLC, was charged yesterday by a special grand jury in Wheeling with eighteen counts of wire fraud and ten counts of failure to pay taxes. Morris, who was arrested earlier this month on one count of wire fraud, is accused of making misrepresentations to induce individuals to invest in Ohio County real estate, to include the McClure House hotel, the Mount Carmel Monastery, and the Scottish Rite Cathedral.
According to the indictment, Morris received nearly $7 million from approximately twenty investors. Morris allegedly used investor funds to pay for credit card transactions unrelated to Roxby renovations, to pay the debts of a company unrelated to Roxby, to pay personal expenses, and to pay other investors. He is accused of misrepresenting the status of improvements made to the properties to induce additional investment and to lull investors into not taking action for failing to comply with their agreements. Morris allegedly used deception to induce the sale of properties to him, to include providing false screenshots of bank account balances, and to have misled potential lenders by not disclosing all the payables of the Roxby entities.
Morris is also charged with withholding taxes from his employees’ pay checks but then failing to pay over $252,000 to the Internal Revenue Service, to include Medicare and social security taxes.
“Many were harmed by the actions of Jeffery Morris, including investors, employees, and vendors,” said United States Attorney William Ihlenfeld. “Thanks to the outstanding work of the FBI and IRS-CI, Mr. Morris will be held accountable.”
“Mr. Morris is accused of taking advantage of innocent investors and creating a deceptive scheme for his own personal gain,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “The FBI will relentlessly pursue those who attempt to defraud and mislead people in our community.”
U.S. Attorney Ihlenfeld and Assistant U.S. Attorney Jarod Douglas are prosecuting the case on behalf of the government. The matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-CI.
A jury trial has been scheduled for November 14, 2023, at 9:00 am.
An indictment is merely an accusation, and all defendants are presumed innocent until proven guilty.
Westfield Child Predator Sentenced to 38 Years in Federal Prison for Seeking Sex with a 14-Year-Old and Trafficking in Child Sex Abuse MaterialsRead the Press Release
INDIANAPOLIS- Erik Hanson, 31, of Westfield, Indiana, has been sentenced to 38 years in federal prison after pleading guilty to sexual exploitation of a child, conspiracy to commit sexual exploitation of a child, and transportation of child sexual abuse material.
According to court documents, after an online undercover investigation, the Federal Bureau of Investigation alerted detectives with the Westfield Police Department to evidence that Erik Hanson was using the Kik communications application solicit sex with a 14-year-old girl. In fact, an undercover FBI Special Agent was communicating with Hanson posing as the child and the child’s father. In the conversations, Hanson stated that 14-year-old girls were his “favorite age” for sex, and that it was not a fantasy, but something he intended to act on. Hanson asked the ‘girl” for sexually explicit photos, sent her images of his penis, and attempted to meet with her for sex at a hotel in Tennessee. Hanson asked how soon he could meet with the 14-year-old girl because he wanted her to be “as young as possible.”
Investigators obtained a warrant to search Hanson’s Kik account and located 91 91 photos and videos of child sexual abuse material including the sexual abuse of infants, child bondage, and child bestiality.
On April 22, 2022, Hanson’s Westfield home was searched by HCMCETF and Homeland Security agents, who located multiple electronic iPhones and an iPad Hanson admitted contained child sexual abuse material. During an interview with agents, Hanson admitted to owning two Kik accounts for the purpose of viewing child sexual abuse material, and that he belonged to many online groups that traded these images. Over a period of three months, Hanson used CashApp multiple times to pay another individual a total of $75 to produce child sexual abuse material involving Minor Victim 1, who Hanson believed was the producer’s 11-year-old daughter. Hanson directed the other user to engage in specific sex acts with the child, and distributed some of this material to another individual.
“Child predators wrongly believe that the internet will protect them. This defendant’s actions demonstrate that he is a dangerous pedophile, who must be kept away from our children in person and online,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “The sentence imposed here ensures that the defendant will not be in a position to exploit or abuse any more children for many years. I commend the work of the dedicated investigators at the FBI, Homeland Security Investigations, the Hamilton County Metropolitan Child Exploitation Task Force, and the Westfield Police Department, to hold this predator accountable and remove him from our community.”
“Today’s sentencing of Hanson sends an important message to all would-be predators: we will not allow this type of crime against children to go unpunished,” said HSI Chicago Special Agent in Charge Sean Fitzgerald. “HSI, along with our law enforcement partners, is dedicated to the eradication of sexual exploitation and will continue to pursue those who seek gratification from the abuse and pain of the most vulnerable members of society, our children.”
FBI, Homeland Security Investigations, Hamilton County Metropolitan Child Exploitation Task Force, and the Westfield Police Department investigated this case. The sentence was imposed by U.S. District Court Judge, Chief Tanya Walton Pratt. Judge Pratt also ordered that Hanson be supervised by the U.S. Probation Office for life following his release from federal prison. Hanson must also pay $30,000 in restitution to his victims.
U.S. Attorney Myers thanked Assistant United States Attorney Kyle Sawa, who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims.
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Washington, D.C. Man Sentenced to 30 Years in Federal Prison for Federal Kidnapping and Attempted Witness TamperingRead the Press Release
Greenbelt, Maryland – Judge Paula Xinis today sentenced Kyrie Rashuad Thompson, age 29, formerly of Washington, D.C., to 30 years in prison, followed by 5 years of supervised release for kidnapping and attempted witness tampering.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation.
According to the Court’s findings, on September 22, 2019, the victim drove her car to the residence of Thompson in the District of Columbia to drop off their three-year-old child to Thompson in a prearranged visit. Instead of retrieving their child, Thompson opened the front passenger door and sat down in the victim’s vehicle and ordered her to drive to Bald Eagle Drive in Maryland. After the victim refused, Thompson become angry and threatening. As a result, the victim began driving. Once they crossed into Maryland, the victim pulled into a parking lot in Forest Heights, Maryland, hoping to diffuse the situation. During that time, the victim’s boyfriend called the victim’s cell phone. Thompson answered the call, and told the caller that the victim was going to perform a sex act on him. When Thompson concluded the call, he started choking the victim around her neck with his hands and pulling her head toward the passenger side floorboard, pinning her down so she could not breathe. During this struggle, their three-year-old child was in the backseat of the vehicle crying.
At some point, Thomson stopped choking the victim and ordered her to continue driving to Bald Eagle Drive. They ended up on Bald Eagle Drive, near the entrance to the Oxon Hill Children’s Farm in Prince George’s County, Maryland. There, Thompson pulled out his phone, and ordered the victim to perform a sex act on him. When the victim refused, Thompson choked the victim again and then pushed the victim’s head toward his crotch, holding it there while he used his cellphone to record the sex act. On the recording, their three-year-old child could be heard crying and telling him to stop. After the victim performed the sex act, she drove back toward the District of Columbia, where Thompson took their child out of the car. He threatened the victim not to call the police or something would happen.
On December 18, 2019, a federal grand jury in the District of Maryland returned an indictment charging Thompson with kidnapping. Thereafter, on August 25, 2020, Thompson sent the victim a letter in which he wrote: “I talked to my lawyer and they told me they talked to you. Only thing is you have to change the facts [victim’s name]. You gotta say I didn;t kidnap you. You gotta say nothing happened until we were already in MD. They told me they know you probably think if you don’t go to court it’ll go away like before but its different with federal cases. You gotta call back and say I didn’t kidnap you. Please . . . . Tell them I didn’t force you to go to MD . . . Please call and say I didn’t kidnap you and you willing to tell a jury or judge that at court as well.”
United States Attorney Erek L. Barron commended the FBI for its work in the investigation and thanked the Federal Bureau of Investigation- Washington Field Office and the U.S. Park Police for their assistance. Mr. Barron thanked Assistant U.S. Attorney Leah Grossi, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Violent Recidivist Pleads Guilty to Being a Felon in Possession of a Firearm After Car ChaseRead the Press Release
RICHMOND, Va. – A Richmond City man pleaded guilty yesterday to being a felon in possession of a firearm.
According to court documents, on November 17, 2022, Shalik Mitchell, 30, was pulled over by Richmond Police officers during a traffic stop. Officers on routine patrol on Hull Street noticed a vehicle speeding and swerving around other motorists while failing to use a turn signal. Officers tried to catch up to the vehicle, which was still gaining separation at nearly 80 mph. The vehicle nearly veered off the roadway as it came to a stop, and officers noticed the front seat passenger making stuffing movements.
A loaded Stoeger STR-9, 9mm, semi-automatic pistol was stuffed in between the driver’s seat and center console, where Mitchell sat. At the time he possessed the pistol, Mitchell was a multiple time convicted felon and was approximately seven months into a term of supervised release for a 2019 conviction of being a felon in possession of a firearm. Mitchell was also previously convicted in 2015 by the City of Richmond Circuit Court of malicious wounding and use of a firearm in commission of a felony.
Mitchell is scheduled to be sentenced on December 21. He faces a maximum penalty of fifteen years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Craig Kailimai, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division; and Rick Edwards, Chief of Richmond Police, made the announcement after U.S. Magistrate Judge Mark R. Colombell accepted the plea.
Special Assistant U.S. Attorney Devon Schulz and Assistant U.S. Attorney Stephen Anthony are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-39.
United States Files Civil Complaint Against eBay Alleging its Sales of Illicit Products Results in Environmental HarmRead the Press Release
BROOKLYN, NY — The United States, on behalf of the U.S. Environmental Protection Agency (EPA), filed a civil complaint today in federal court in Brooklyn against eBay Inc. (eBay) for unlawfully selling and distributing hundreds of thousands of products in violation of the Clean Air Act (CAA); the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the Toxic Substances Control Act (TSCA). The complaint was filed in federal court in Brooklyn.
Breon Peace, United States Attorney for the Eastern District of New York, Todd Kim, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division, and David M. Uhlmann, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance, announced the filing.
“eBay’s sale of emission control defeat devices, pesticides, and other unsafe products poses unacceptable risks to our communities disproportionately impacted by environmental and health hazards,” stated United States Attorney Peace. “Together with our partners, this Office will vigorously enforce federal law against those whose conduct endangers public health and the environment.”
“Laws prohibiting the sale of products that harm human health and the environment apply to e-commerce retailers just as they do to brick-and-mortar stores,” stated Assistant Attorney General Kim. “The Department of Justice will pursue violators of these laws regardless of their place in the sale or distribution chain.”
“Our nation’s environmental laws protect public health and the environment by prohibiting the unlawful sale of defeat devices; unregistered, misbranded and restricted use pesticides; and unsafe products containing toxic chemicals such as methylene chloride,” stated EPA Assistant Administrator Uhlmann. “The complaint filed today demonstrates that EPA will hold online retailers responsible for the unlawful sale of products on their websites that can harm consumers and the environment.”
The Clean Air Act prohibits selling, offering for sale, or causing the sale or offer of aftermarket parts that defeat motor vehicle emission controls (commonly known as “aftermarket defeat devices”). Today’s complaint alleges that eBay sold, offered for sale or caused the sale of more than 343,000 such devices. By enabling vehicle emission controls to be evaded, aftermarket defeat devices contribute to air pollution and harm public health. They also impede efforts by the EPA, states, tribes, and local agencies to plan for and meet air quality standards. For example, the use of defeat devices significantly increases emissions of particulate matter, carbon monoxide, nitrogen oxides and nonmethane hydrocarbons.
FIFRA prohibits the unlawful distribution or sale of unregistered, misbranded, and restricted use pesticides, and authorizes EPA to issue Stop Sale, Use, or Removal Orders to anyone with ownership, custody or control of such pesticides being unlawfully sold or distributed. Today’s complaint alleges that eBay unlawfully distributed or sold at least 23,000 such pesticides, and that some of those sales were in direct violation of a stop sale order issued to eBay in 2020 and amended in 2021. Examples of the pesticides at issue include a high toxicity insecticide banned in the U.S., a restricted use pesticide that only certified applicators may apply, and a product falsely claiming to protect users against the SARS-CoV-2 virus.
TSCA’s Methylene Chloride Rule prohibits retailers from distributing in commerce products containing methylene chloride for paint and coating removal to prevent unreasonable risks, including the risk of death, presented by these types of products. The complaint alleges that eBay has distributed over 5,600 items in violation of TSCA’s Methylene Chloride Rule.
The complaint seeks a Court order that eBay’s business practices as an e-commerce retailer violated the CAA, FIFRA, and TSCA and injunctive relief to enjoin eBay from further violations of the CAA, FIFRA, and TSCA, as well as civil penalties for each violation of the CAA.
The lawsuit is being handled by Assistant United States Attorneys Michael Blume and Paulina Stamatelos of the United States Attorney’s Office for the Eastern District of New York, James Freeman, Senior Attorney, Environmental Enforcement Section, working with Caitlin Meisenbach, Lindsay Simmons, and Adrienne Trivedi from EPA’s Office of Enforcement and Compliance Assurance.
In June 2021, the United States Attorney’s Office for the Eastern District of New York created an Environmental Justice Team within the Office’s Civil Division. The focus of the Environmental Justice Team is the protection of the rights of residents of the Eastern District of New York who are disproportionately burdened by environmental and health hazards.
Undercover jaguar cub deal results in Big Cat Act chargesRead the Press Release
McALLEN, Texas – An Alamo couple have been arrested for selling protected wildlife in the first case filed under The Big Cat Act, announced U.S. Attorney Alamdar S. Hamdani.
Legal permanent resident Rafael Gutierrez-Galvan, 29, and his wife Deyanira Garza, 28, made their initial appearances in federal court in McAllen Sept. 27.
According to the criminal complaint, Gutierrez-Galvan had sold a margay cub Aug. 24 for $7,500 in a local Academy Sports and Outdoors parking lot.
On Sept. 26, Gutierrez-Galvan then attempted to sell a jaguar cub to the same individual. He allegedly instructed his wife to bring a case of cash from their residence to the location. However, law enforcement conducted a traffic stop before she could arrive and discovered the money.
Neither Gutierrez-Galvan or Garza possess a license to buy, sell, trade or transport exotic animals such as margays and jaguars.
Authorities recovered both animals.
The Big Cat Act was enacted in December 2022 and prohibits the importation, transportation, sale and possession of prohibited wildlife species. A jaguar is a prohibited species. Additionally, the Endangered Species Act prohibits the importation, exportation, sale and transportation of threatened and endangered species. Jaguars are listed as an endangered species.
If convicted, Gutierrez-Galvan and Garza face up to five years in federal prison and a possible $20,000 maximum fine.
Fish and Wildlife Service and Homeland Security Investigations conducted the investigation with the assistance of Texas Parks and Wildlife and the Houston and San Antonio Zoos. Assistant U.S. Attorney Devin V. Walker is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
U.S. Attorney's Office for the Eastern District of Tennessee Announces over 1.3 Million in Department of Justice Programs Grant FundingRead the Press Release
KNOXVLLE, Tenn. On September 27, 2023, the United States Attorney’s Office for the Eastern District of Tennessee announced $1,338,556 in Department of Justice, Office of Justice Programs (OJP) funding.
- City of Bristol - $11,487.
- City of Knoxville - $632,355.
- County of Greene - $14,364.
- Middle Tennessee State University- $99,818.
- University of Tennessee Knoxville - $229,454.
- University of Tennessee Knoxville - $351,078.
The Office of Justice Programs is a federal agency that provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and uphold the rule of law by strengthening the criminal and juvenile justice systems. OJP’s six program offices support state, local, and tribal community safety efforts; crime victim assistance and compensation programs; juvenile justice and child protection activities; sex offender management; a wide range of training and technical assistance opportunities; ground-breaking criminal justice research; and, statistical collections covering a host of justice system topics.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. Additional information about FY23 awards can be found on OJP’s website here: www.ojp.gov/funding/explore/ojp-award-data. For more information, please contact [email protected].
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U.S. Attorney Josh Hurwit Announces Update on the Success of the District of Idaho’s COVID-19 Fraud Task ForceRead the Press Release
BOISE – U.S. Attorney Josh Hurwit announced today results of the work of the District of Idaho’s COVID-19 Fraud Task Force that was formed last September. In the past 12 months, the Task Force has built a team consisting of federal prosecutors and 11 federal agencies focused on prosecuting cases related to pandemic-related programs including the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan (EIDL), Unemployment Insurance (UI), and Coronavirus Food Assistance Program (CFAP). The Task Force has now charged a dozen defendants criminally and obtained civil judgments against three defendants. The amount of fraud associated with the cases is over $7 million.
“Credit goes to the prosecutors and investigators who are sparing no effort to identify COVID fraud, to hold the perpetrators accountable, and to return stolen funds to the taxpayers,” said U.S. Attorney Hurwit. “While I am proud of the successes we have had so far, the Task Force is still in its early phases. We will not rest until we have done everything in our power to seek justice against those who took advantage of the COVID-19 pandemic to line their pockets through fraud.”
“OIG will leverage partnerships and collaborate across the law enforcement spectrum to bring fraudsters to justice,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “These judicial outcomes demonstrate the consequences for these wrongful acts are significant. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“The Treasury Inspector General for Tax Administration will continue to aggressively pursue those who misuse IRS online systems to further fraudulent schemes and those who fraudulently obtain relief from the Coronavirus Aid, Relief, and Economic Security Act and its Paycheck Protection Program,” said Special Agent in Charge Rod Ammari of the TIGTA Western Field Division. “We appreciate the efforts of our law enforcement partners and the United States Attorney’s Office to ensure this criminal activity is held to account.”
The following are cases recently prosecuted by the District of Idaho’s COVID Fraud Task Force:
Lawrence Sikutwa, 43, of Boise, was sentenced to 30 months followed by 5 years of supervised release on September 25, 2023, for bank fraud and money laundering. According to court documents, between April 2020 and February 2021, Sikutwa submitted three fraudulent PPP loan applications and, as a result, obtained approximately $347,000 in fraudulent loan proceeds. Sikutwa used the identities of two individuals known to him to submit two of the PPP loan applications. All three of the loan applications Sikutwa submitted contained false certifications about the dates the companies were opened, the number of employees and amount of payroll, and that the loan proceeds would be used for business related expenses. Sikutwa also submitted false and fraudulent documents with the loan applications in an effort to substantiate the information contained on the applications. After receiving the loan proceeds, Sikutwa caused more than $190,000 to be transferred offshore. Other proceeds were transferred to various individuals and appeared to be used for personal expenses.
Valentin Lapatskiy, 34, of Meridian, was sentenced to 15 months followed by 2 years of supervised release on September 26, 2023, for wire fraud. Lapatskiy fraudulently obtained $300,000 in EIDLs by making materially false and fraudulent representations to the SBA in applications for two businesses. Lapatskiy falsely claimed in an application that his purported company Valdi Homes INC opened in November 2017 and he became the owner in February 2018. He also made false representations about a purported limousine company in his wife’s name. In both applications, Lapatskiy falsely claimed gross revenues, cost of goods sold, and employees for 2019.
Anubor Bagbi, 63, of Las Vegas, Nevada, pleaded guilty to aggravated identity theft and bank fraud and is set for sentencing on December 7, 2023. While investigating Bagbi for opening fraudulent business accounts and trying to cash stolen and/or counterfeit business checks, it was discovered that he previously used some of the same accounts, business names, and identities to fraudulently apply for, obtain, and spend PPP and EIDL funds. Beginning in April 2020 and continuing, Bagbi caused losses of $664,828 in PPP and EIDL funds, by submitting false and fraudulent applications.
Craig Marlow, 40, of Blackfoot, Idaho, was indicted by a federal grand jury on September 13, 2023, on wire fraud charges for allegedly obtaining more than $900,000 in fraudulent EIDL program proceeds. According to allegations in the indictment, between May 2020 and July 2021, Marlow used identities of individuals known to him—primarily family members—to illegally obtain EIDLs disbursed by the SBA. He also submitted at least two fraudulent applications using his own identity. As alleged in the indictment, Marlow submitted the applications using shell entities and provided false statements in the applications, including false statements about the gross revenue, monthly revenue, cost of goods, cost of operations, and number of employees for the entities in whose names the applications were submitted. Marlow allegedly submitted, and caused to be submitted, ten fraudulent loan applications and obtained $926,700. An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Patricia Pischel, 38, of Star, Idaho, pleaded guilty to wire fraud and is set for sentencing on November 15, 2023. Pischel fraudulently obtained $219,409 in PPP and EIDL funds. Pischel made materially false and fraudulent misrepresentations about three businesses and, in reliance on those misstatements, she obtained approximately five PPP loans and EIDLs. Pischel’s misrepresentations included the number of employees, monthly payroll, and wage information included in purported IRS Forms W-3.
Nels Anderson, 58, of Holbrook, Idaho, was sentenced to 6 months followed by 3 years of supervised release for a false claim. Anderson was charged for submitting a CFAP 2 application that contained a materially false, fictitious, and fraudulent livestock claim. When asked for additional documentation, Anderson submitted fraudulent invoices. Anderson did not receive the CFAP 2, but the intended loss was $114,557.19.
Jimmy Winebrenner, 79, of Post Falls, Idaho, pleaded guilty to using or trafficking in unauthorized access devices, and is set for sentencing on November 14, 2023. Between May and August 2020, Winebrenner received at least 16 unemployment benefits cards in the mail from various state agencies in names other than his own. Between July and August 2020, Winebrenner obtained $81,180 in unemployment benefits from state agencies.
Daniel Labrum, 42, of South Jordan, Utah, pleaded guilty to bank fraud and is set for sentencing on November 16, 2023. Labrum’s scheme included submitting six PPP loan applications to financial institutions, one of which was based in Boise, on behalf of several businesses. The applications contained false information about the businesses concerning, among other things, the number of employees and their monthly payroll, certifications about the businesses and the intended use of the PPP funds. In total, the applications sought approximately $1,914,571 in PPP loans.
Eric O’Neil, 58, of Bethel, Connecticut, pleaded guilty to bank fraud and is set for sentencing on December 7, 2023. O’Neil submitted two PPP loan applications to financial institutions, one of which was based in Boise, on behalf of his company. The applications contained false information about his business concerning, among other things, the number of employees and its monthly payroll, certifications about the business and the intended use of the PPP funds. In total, the two applications sought approximately $777,501 in PPP loans.
U.S. Attorney Hurwit thanked the members of the COVID Fraud Task Force for their efforts. The federal law enforcement agencies participating are (i) the Small Business Administration, Office of Inspector General, (ii) the U.S. Department of Treasury, Inspector General for Tax Administration, (iii) the U.S. Secret Service, (iv) the Internal Revenue Service, Criminal Investigation, (v) the Federal Bureau of Investigation, (vi) the U.S. Department of Agriculture, Office of Inspector General, (vii) the U.S. Postal Inspection Service, (viii) the Social Security Administration, Office of Inspector General, (ix) the Federal Deposit Insurance Corporation, (x) the U.S. Department of Health and Human Services, Office of Inspector General, and (xi) the U.S. Department of Homeland Security Investigations, Office of Inspector General.
Assistant U.S. Attorneys Darci Crane, Brittney Campbell, and Sean Mazorol are prosecuting these cases with the assistance of the Criminal Division’s Fraud Section.
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: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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U.S. Attorney Alexander M.M. Uballez announces Selection of Missing or Murdered Indigenous Persons Assistant United States Attorney for the Southwest RegionRead the Press Release
ALBUQUERQUE, N.M. – Today, United States Attorney for the District of New Mexico Alexander M.M. Uballez, announced the selection of Assistant United States Attorney (AUSA) Eliot Neal as the Missing or Murdered Indigenous Persons (MMIP) AUSA for the Southwest Region, which encompasses the Districts of New Mexico, Colorado, Utah, Nevada and Arizona. AUSA Neal is one of five MMIP AUSAs who will provide specialized support to United States Attorneys’ offices to address and combat the issues of MMIP. This support includes assisting in the investigation of unresolved MMIP cases and related crimes, and promoting communication, coordination, and collaboration among federal, Tribal, local, and state law enforcement and non-governmental partners on MMIP issues.
Eliot was selected for the MMIP AUSA position based on his background and experience, as well as his proven success in his position as the District’s Tribal Liaison to the Mescalero Apache Tribe. Eliot’s innate ability to develop positive professional and personal relationships with everyone and anyone makes him the perfect person to move seamlessly into this new position.
Eliot grew up in Wilson, Wyoming, at the foot of the Teton mountain range, a historical crossroads for the Crow, Gros Ventre, Blackfeet, Nez Perce, Bannock, Eastern Shoshone, and Sheep Eaters tribes. Close to the modern-day Wind River and Fort Hall reservations, Eliot gained exposure at a young age to both the cultural significance and beauty of Indian Country, as well as the many hardships and challenges faced by Indigenous Americans.
After attending Middlebury College for his undergraduate degree and law school at Emory University, Eliot began his legal career with Cooley LLP in Palo Alto, California. There, Eliot worked in the business litigation group, focusing primarily on securities litigation for large public technology companies. Fueled by a desire to serve the public on a more personal level, Eliot then left securities litigation and became an Assistant United States Attorney for the District of New Mexico in the Las Cruces Branch Office in 2022.
Since he joined the USAO, Eliot has worked on a wide variety of cases including child exploitation, gun crimes, and Indian Country crimes. Most recently, Eliot was asked to serve as the District’s Tribal Liaison to the Mescalero Apache Tribe. In that capacity, Eliot reestablished the District’s relationship with Mescalero after a fifteen-year lapse and has made it one of the strongest government-to-government relationships between the District and tribal leadership in the state. In his role as a Tribal Liaison, Eliot has gained a deeper understanding and appreciation of the issues threatening tribal communities—in particular persistent cycles of physical and sexual violence, drug and alcohol addiction, and poverty, all of which have outsized impacts on small, tight-knit families and communities—and ways the U.S. Attorney’s Office can better serve tribal communities and bring about justice.
“I am excited to be joining the Department of Justice’s response to the crisis of missing and murdered indigenous persons,” said Eliot. “After losing my own brother, I know how devastating it is to have a loved one taken from you. In my new role, I will do everything I can to help bring about closure and justice to those impacted by the MMIP crisis. I look forward to working with tribal and law enforcement partners throughout the Southwest region and can’t wait to get to work!”
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U. S. Attorney Rebecca C. Lutzko Announces over $1.2 Million in Justice Department Grants to Address Behavioral and Mental Health Programs and to Support the Ohio Internet Crimes Against Children Task Force ProgramRead the Press Release
CLEVELAND ― U.S. Attorney Rebecca C. Lutzko today announced awards of over $1.2 million in Department of Justice grants to help various programs in the Northern District of Ohio. The grants were awarded by the Department’s Office of Justice Programs and are being awarded to communities nationwide.
The following organizations received funding:
- The City of Cleveland, Law Enforcement Behavioral Health Response Program, Connect and Protect awarded $549,998.00;
- Findlay, Hancock County, Justice and Mental Health Collaboration Program, The Steady Path Forward awarded $550,000.00; and
- Cleveland, Cuyahoga County, Internet Crimes Against Children Task Force Programs awarded $678,139.00.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page.
About the Office of Justice Programs The Office of Justice Programs provides federal leadership, grants, training, technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime; advance equity and fairness in the administration of justice; assist victims; and uphold the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Two Long Island Men Separately Indicted for Running National Sex Trafficking BusinessesRead the Press Release
Earlier today in federal court in Central Islip, an 11-count indictment was unsealed charging Lamont Young, also known as “Paper,” with sex trafficking by force, sex trafficking of a minor and interstate prostitution. Young was arrested today on Long Island and was arraigned this afternoon before United States Magistrate Judge James M. Wicks. Young was ordered detained pending trial.
Earlier this week, on September 26, 2023, a six-count indictment was also unsealed in federal court in Central Islip charging Michail McKen, also known as “Kells,” with sex trafficking by force and interstate prostitution. McKen was arrested this morning in Arizona. He will make his initial appearance in federal court in Phoenix later this afternoon.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the indictments.
“As alleged, Young and McKen each ran a national sex trafficking business, including on Long Island, forcing vulnerable females into commercial sex work for the defendants’ financial benefit,” stated United States Attorney Peace. “These indictments demonstrate that the United States Attorney’s Office is committed to working with both local and federal partners to ensure that sex trafficking on Long Island is not tolerated, and those who engage in such violent, cruel crimes are held accountable.”
Mr. Peace also expressed his thanks to the New York City Police Department for their assistance with the Young case, and to the Greater Phoenix Human Trafficking Task Force and the FBI Phoenix Violent Crimes Task Force for their assistance with the McKen arrest.
“The commercial sexual exploitation of women is a heinous act that causes long-lasting harm to victims and their families,” stated FBI Assistant Director-in-Charge Smith. “Combating sex trafficking and violence in our communities is one of the top priorities for the FBI and our law enforcement partners across New York.”
“This pair preyed on and recruited vulnerable young women for years using violence and other measures to force them to engage in sex acts for their own financial gain,” stated SCPD Commissioner Harrison. “The Suffolk County Police Department remains committed to working with our law enforcement partners throughout the nation to bring justice to victims of human trafficking.”
As set forth in Young’s indictment and other court filings, between 2011 and at least 2021, Young recruited his victims online, sold them a dream of stability and financial wellbeing, and then once they accepted his invitation to work for him, he used violence, fraud and coercion to cause them to engage in commercial sex acts for his benefit. At least one of his victims was a minor, who engaged in numerous sex acts on Long Island in 2016 and 2017 at Young’s direction. Young referred to the women that worked for him as a “program” or a “movement,” had numerous rules and inflicted violence on the victims when he perceived they disobeyed him. Young also had some of his victims brand themselves with tattoos, including the letter “P” for his street name “Paper,” which is a reference to cash.
As alleged in McKen’s indictment and other court filings, between 2019 and 2022, McKen used violence and threats of violence to compel multiple women to engage in commercial sex acts for his financial benefit. McKen often recruited sex workers in Virginia, and then caused them to travel to Long Island, where McKen is originally from, to engage in commercial sex acts. McKen sent his victims all over the country to work, including Massachusetts, Pennsylvania, Arizona, Kentucky, Alabama and Oregon. Of the individuals that he trafficked, McKen separated them into two tiers – high-end, experienced females, for whose services he could charge large sums of money, and lower-end, less competitive females, who often struggled with drug addiction, and for whose services McKen would charge less. McKen maintained leverage over those suffering with drug addiction by forcing them to engage in commercial sex acts in exchange for a rationed supply of narcotics that would prevent them from going through complete withdrawal. At the time of his arrest, law enforcement recovered a loaded Smith & Wesson 9mm handgun from the Mercedes Benz vehicle he was driving.
The charges in the Young and McKen indictments are allegations and both defendants are presumed innocent unless and until proven guilty. If convicted, they face a mandatory minimum sentence of 15 years in prison and up to life in prison.
If you are a victim of trafficking—whether by Young, McKen or someone else—and have information to provide, please contact the Federal Bureau of Investigation, which is prepared to help regardless of your immigration status, at tips.fbi.gov or call 1-800-CALL-FBI.
The government’s cases are being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Megan Farrell is in charge of both prosecutions.
The Defendants:
LAMONT YOUNG (also known as “Paper”)
Age: 41
Hauppauge, Central Islip and Patchogue, New York
E.D.N.Y. Docket No. 23-CR-382(JMA)MICHAIL MCKEN (also known as “Kells” and “Cavalli”)
Age: 35
Baldwin, New York and Phoenix, Arizona
E.D.N.Y. Docket No. 23-CR-377(JMA)