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20 September 2023
One Detroit Partnership Announces Results of Unified Summer Enforcement, Prevention, and Reentry Strategy Targeting Designated High Crime Areas in DetroitRead the Press Release
DETROIT – Today, United States Attorney Dawn N. Ison, along with Detroit Mayor Mike Duggan, Wayne County Prosecuting Attorney Kym Worthy, and Detroit Police Chief James E. White as part of the One Detroit Violence Reduction Partnership announced the results of the targeted strategy aimed at reducing gun violence in Detroit’s neighborhoods with the highest incidence of violent crime – Detroit’s 8th and 9th Precincts. The strategy had three components—prevention, enforcement, and reentry—and is a part of the One Detroit partnership announced earlier this year. One Detroit is a coalition of community and law enforcement partners working together to develop and execute the best strategies to reduce violent crime.
Joining in the announcement were Alvin Stokes, President, Citywide Citizens Police Community Relations, Acting Special Agent in Charge Devin J. Kowalski, Federal Bureau of Investigation, Detroit Division, Bishop Edgar Vann, II, Second Ebenezer Church, Special Agent in Charge James Deir, Bureau of Alcohol, Tobacco, Firearms and Explosives, Kenyatta Stephens, CEO Black Family Development, Special Agent in Charge Orville Greene, Drug Enforcement Administration, Detroit Division, and Beverly Smith, Assistant Deputy Director, Operations Office, Michigan Department of Corrections.
The initiative began on Memorial Day and ended on Labor Day. One part of the effort was an enforcement strategy designed to prosecute the most violent individuals and crimes in federal court when that was possible. This effort resulted in 22 defendants being charged with federal firearms offenses including being a felon in possession of a firearm, illegal possession of a machine gun, possession of a stolen firearm and possession of a firearm with an obliterated serial number. Of those charged, 13 defendants have been detained pending trial, three defendants have pleaded guilty to charges, and 18 defendants are pending trial.
According to Detroit Police Department statistics, from June 1 to August 31, there was nearly a 20% reduction in target violent offenses in the 8th Precinct, an 11% reduction in the 9th Precinct, and a nearly 6% reduction citywide compared to the same time last year.
The One Detroit partnership also engaged in preventing crime in the targeted areas through Peacenics, a collective gathering of the community and law enforcement where we shared in food, fellowship and fun in the name of peace. The events featured vendors offering a variety of resources, including job training, literacy programs, mental health and medical screenings, utility assistance, educational and vocational opportunities, tutorial, career development. The Peacenics allowed residents to have fun, engage with law enforcement, and obtain resources to improve the quality of their lives. Approximately, 4800 Detroit residents attended the two Peacenics held on July 8 in O’Hair Park and July 15 in Heilmann Park.
Finally, the One Detroit partnership also focused on reentry as a way of preventing recidivism by empowering returning citizens to become stable, contributing members of the Detroit community. As a result of these efforts, 50 returning citizens participated in community roundtables intended to provide motivation and insight about taking advantage of second chances after a criminal conviction. At the events, family members of probationers were also invited to participate in breakout sessions to discuss barriers to stability. One Detroit partners also assisted with employment needs and helped connect attendees with resources.
United States Attorney Dawn N. Ison stated, “We are encouraged about the progress we made toward our goal to make this city safer, but there is still work to do. My office and our One Detroit Partners won’t stop working until we can meaningfully reduce violence in this city.”
Mayor Duggan stated, "We've never had a US Attorney here in Detroit as passionate about crime prevention in our neighborhoods than Dawn Ison, and the results of her strategy speak for themselves. We saw a nearly 20% reduction in violent crime in the 8th Precinct alone this summer. The balanced approach of strict multi-agency enforcement against those who commit acts of violence and support for those willing to participate in programs that keep them out of trouble, surely made a big difference."
“This partnership is something that we must continue. It is always vitally important to work together to reduce crime and improve the quality of life in Detroit. The initiative has wisely included supporting our returning citizens. This component is a welcome addition that will pay dividends in the future,” said Wayne County Prosecutor Kym Worthy.
“We’re encouraged by the results of this year’s One Detroit Partnership, which brought agencies at all levels of the system and members of the community together to keep people safe in some of the city’s neighborhoods that are most impacted by crime,” said Chief James E. White. “I look forward to continued collaboration with these partners in our mission to make Detroit a safer place for all.”
Omaha Man Sentenced to 106 Months for Possessing Crack Cocaine and FirearmsRead the Press Release
Acting United States Attorney Susan Lehr announced that James L. Bennett, Jr., 56, of Omaha, Nebraska, was sentenced today by United States District Court Judge Brian C. Buescher to 46 months’ imprisonment for possessing with the intent to distribute crack cocaine and 60 months’ imprisonment for possessing a firearm during a drug trafficking crime. Those sentences were ordered to run consecutive for a total sentence of 106 months in the Bureau of Prisons. There is no parole in the federal system. Bennett was also sentenced to a five-year term of supervised release to be served after he completes his prison sentence. Bennett pleaded guilty to the offenses on June 21, 2023.
On August 31, 2022, Omaha police officers and agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives served a search warrant on Bennett’s home. There, they recovered more than 30 grams of crack cocaine and several firearms, including a Sig Sauer 9mm handgun found inside a leather coat with a “Los Diablos” motorcycle club patch.
The investigation was conducted by the Omaha Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives assisted with an examination of the firearm. 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.
Ocean View Man Sentenced to 48 Months in Federal Prison for Distribution of MethamphetamineRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Vincent Mitchell, age 35 and an Ocean View resident, was sentenced yesterday to 48 months in prison for distribution of methamphetamine. The Honorable Colm F. Connolly, Chief Judge of the U.S. District Court for the District of Delaware, pronounced the sentence.
According to court documents, in July 2022 investigators executed a search warrant at Mitchell’s home and seized one pound of methamphetamine and $6,000 in cash. The investigation revealed that, on a monthly basis, Mitchell drove to Philadelphia to buy a pound of methamphetamine which he then sold in the Ocean View area.
U.S. Attorney Weiss stated, “Methamphetamine remains among the deadliest drugs plaguing our streets today. Peddling this poison endangers the safety of our community. I am grateful for the continuing efforts of our federal, state and local law enforcement partners to stem the tide of illegal drug sales. My office will continue to seek significant prison sentences for those, like Mr. Mitchell, who profit from illegal drug trafficking.”
The case was investigated by the Ocean View Police Department and the Drug Enforcement Administration.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 23-cr-03.
New Orleans Man Sentenced to Ten Years in Prison for Violations of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – On September 19, 2023, United States District Judge Wendy B. Vitter sentenced JAVEN JONES, age 20, a resident of New Orleans, to (10) ten years in federal prison for violating the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to court records, JONES pleaded guilty to two separate counts of possessing a firearm in furtherance of a drug trafficking crime. The first count related to an April 2022 incident in which New Orleans Police Department officers found JONES asleep in a stolen vehicle. During a search of the vehicle, the police found crack, fentanyl, over $2,000 in cash, and two pistols, a Glock Model 23, .40 caliber pistol and a Sig Sauer Model P320, nine-millimeter pistol. The second count related to an August 2022 incident in which New Orleans Police Department officers arrested JONES while JONES was in possession of fentanyl and a Glock pistol.
Judge Vitter sentenced JONES to five years in prison on each of the two counts of conviction, to run consecutively, for a total sentence of ten years. Judge Vitter also ordered that JONES serve five years of supervised release after his release from prison. JONES also was ordered to pay a mandatory special assessment fee of $100 per count.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. The prosecution is being handled by Assistant United States Attorney David Haller of the Violent Crime Unit.
New Haven Man Charged with 2 Gunpoint RobberiesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that a federal grand jury in New Haven has returned a five-count indictment charging GARY GIBSON, JR., 24, of New Haven, with offenses stemming from the armed robberies of two convenience stores in May.
The indictment was returned on September 12, 2023. Gibson appeared today before U.S. Magistrate Judge Robert M. Spector in New Haven and pleaded not guilty to the charges. He has been detained since his arrest on related state charges on May 8, 2023.
As alleged in the indictment, on May 7, 2023, Gibson, brandishing a Glock semiautomatic handgun, robbed the Star Food & Convenience Store, located at 193 Boston Post Road in West Haven. On May 8, 2023, Gibson robbed the 7th Haven Convenience Store, located at 129 Sylvan Avenue in New Haven, and discharged the same handgun during the robbery. Gibson stole cash from both stores.
New Haven Police, with the assistance of West Haven Police, arrested Gibson shortly after the New Haven robbery and seized from him the handgun he allegedly used during the robberies. The gun had an attached laser sight and a loaded 15-round magazine.
It is alleged that Gibson’s criminal history includes six felony convictions for weapon possession, robbery, and larceny offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Gibson with two counts of interference with commerce by robbery (Hobbs Act robbery), an offense that carries a maximum term of imprisonment of 20 years on each count; one count of brandishing a firearm during and in relation to a crime of violence, an offense that carries a mandatory consecutive term of imprisonment of at least seven years; one count of discharging a firearm during and in relation to a crime of violence, an offense that carries a mandatory consecutive term of imprisonment of at least 10 years; and one count of unlawful possession of a firearm by a felon, an offense that carries a maximum term of imprisonment of 15 years.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the FBI’s Connecticut Violent Crimes Task Force with the assistance of the New Haven and West Haven Police Departments. The case is being prosecuted by Assistant U.S. Attorney Robert S. Ruff through Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Massachusetts Man Convicted in Rideshare and Delivery Account Fraud SchemeRead the Press Release
PROVIDENCE – A Revere, MA, man was convicted Tuesday by a federal jury in Boston of defrauding rideshare companies using fraudulent driver accounts that he created using stolen identities.
Thiago De Souza Prado, 39, was convicted of one count of conspiracy to commit wire fraud, three counts of wire fraud, and three counts of aggravated identity theft. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 18, 2023. Prado was indicted in May 2021 along with 17 others, including co-conspirators Flavio Da Silva, Wemerson Dutra Aguiar and Luiz Neto. In March 2023, Aguiar was sentenced to 45 months in prison after pleading guilty to related charges. Da Silva is scheduled to be sentenced on Oct. 10, 2023. Neto pleaded guilty on Nov. 22, 2022, and fled the country before his scheduled sentencing in April 2023.
According to the evidence presented at trial, starting in 2019, Prado obtained stolen Massachusetts driver’s licenses and bought social security numbers on the darknet. He and his co-conspirators then used the stolen identities to pass the criminal background checks, the sex offender registry check and the driving record check required by the rideshare companies and by the Massachusetts Department of Public Utilities. Prado and his co-conspirators also used the stolen social security numbers for tax reporting on their fraudulent accounts. Once the driving accounts were active, Prado either used the accounts himself or rented them out to others, who also could not pass the background checks, often because they did not have social security numbers and were in the United States illegally. Prado also used his fake driver accounts to get bonuses from rideshare companies by referring his other fake driver accounts as new drivers. In addition, Prado and his co-conspirators used an app, which they called “the drone,” to spoof rides and ride lengths, so that they were paid by the rideshare companies for “ghost rides” or for rides that were longer and more expensive than those actually provided. Prado received payments via bank accounts that he opened in the names of identity theft victims.
The charges of wire fraud conspiracy and wire fraud each carry a maximum sentence of 20 years of in prison, three years of supervised release, and a fine of $250,000, or twice the gain or loss from the crime. Each charge of aggravated identity theft carries a mandatory sentence of 24 months, in addition to any other sentence imposed, a year of supervised release, and a fine of $250,000, or twice the gain or loss from the crime. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Zachary Cunha and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Valuable assistance was provided by the Social Security Administration, the Massachusetts Department of Public Utilities and the Massachusetts Registry of Motor Vehicles. Assistant U.S. Attorneys David Holcomb and Kriss Basil of the Securities, Financial & Cyber Fraud Unit of the U.S. Attorney’s Office for the District of Massachusetts are prosecuting the case.
Mr. Cunha was assigned to oversee this matter by the Department of Justice upon recusal of the U.S. Attorney for the District of Massachusetts.
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Man Sentenced for Defrauding Hundreds of Victims OnlineRead the Press Release
BOSTON – A Nigerian man was sentenced yesterday for using various online scams to steal more than $1.3 million from approximately 125 victims.
Esogie Osawaru, 30, was sentenced by U.S. District Court Judge Leo T. Sorokin to six months in prison and two years of supervised release. Osawaru was also ordered to pay $1,340,516 in restitution and forfeiture. In November 2020, Osawaru pleaded guilty to one count of conspiracy to commit mail and wire fraud and one count of money laundering. Osawaru was arrested in June 2020 along with a co-defendant, Nosayamen Iyalekhue.
Osawaru and Iyalekhue participated in a series of romance, pandemic unemployment insurance and other online scams designed to defraud victims by convincing them to send money to accounts controlled by the defendants. Osawaru opened at least six bank accounts using fake foreign passports in the names of aliases but bearing photos of him, to which co-conspirators directed victims to send money. Osawaru and Iyalekhue then rapidly withdrew the victims’ money from various bank branches and ATMs, often multiple times during a single day. The victims, who were often elderly, were deprived of thousands of dollars and in some instances, their life savings. The schemes also included collecting unemployment insurance in the name of others during the COVID-19 pandemic.
In March 2021, Iyalekhue was sentenced to 63 months in prison and three years of supervised release after previously pleading guilty to his role in the scheme.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorneys Kristen A. Kearney and Ian J. Stearns of the Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Man Accused of $730,000 Pandemic Loan Fraud Appears in Federal Court in St. LouisRead the Press Release
ST. LOUIS – A man from Slovakia who also lists an address in St. Louis, Missouri appeared in U.S. District Court in St. Louis on Wednesday to answer an indictment that accuses him of fraudulently obtaining $730,500 in pandemic loans.
Mark Ethan Jermain, 40, pleaded not guilty Wednesday to three felony counts of wire fraud.
An August 20 indictment accuses Jermain, aka Arsene Millogo, of submitting fraudulent Paycheck Protection Program loan applications from April 26, 2020 to July 16, 2021. The PPP loans were intended to save American businesses and jobs during the COVID-19 pandemic and the money was supposed to be spent on payroll and business expenses.
Jermain submitted a fraudulent loan application for Crazyeats LLC and two applications for Unimentors LLC , falsely inflating the monthly payroll for both companies and submitting falsified documents, including a credit card statement, to support the loan, the indictment says.
Jermain received three loans totaling $730,550, transferred the money to a Slovakian bank account and spent the money for unauthorized purposes, including personal expenses, the indictment says.
A motion seeking to have Jermain held in jail until trial says Jermain has lived overseas since 2019. Jermain returned to the U.S. on August 17, 2023, and was scheduled to fly to Poland Sept. 21 but changed his flight to Sept. 7, the day he was arrested in New York. Jermain was in the Slovak Republic at the time of the alleged fraud, the motion says.
The U.S. Attorney’s Office in St. Louis has prosecuted or is involved in the investigation of at least 60 individuals who exploited pandemic-era programs.
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. Assistant U.S. Attorney Gwen Carroll is prosecuting the case.
Lincoln Man Sentenced to 76 Months for Receipt of Child PornographyRead the Press Release
Acting United States Attorney Susan Lehr announced that Will Alexander Reifschneider, 25, of Lincoln, Nebraska, was sentenced on September 19, 2023, by Senior United States District Court Judge John M. Gerrard to 76 months following his conviction for receipt of child pornography. Reifschneider was also sentenced to a five-year term of supervised release to be served after he completes his prison sentence, and he was ordered to pay a $3,000 special assessment. There is no parole in the federal system. Reifschneider pleaded guilty to his offense on June 14, 2023.
The National Center for Missing and Exploited Children (NCMEC) received a report about a Kik user sharing dozens of video files containing child pornography during the month of December 2021. The IP address traced back to Reifschneider’s residence in Lincoln. Investigators contacted Reifschneider at his place of employment. Reifschneider acknowledged having used Kik at one point. Reifschneider confessed to possessing and uploading child pornography material. He said that his material was saved on two older phones which were underneath his bed at his residence. He consented to the investigators going to his house to retrieve the cell phones and he turned over the phones to them. While conducting an initial review of the phones, the investigators found several images or videos depicting child pornography.
A forensic examination of the phones was completed later. On the phones, investigators estimate they found a combined total from both phones of approximately 1,200 files depicting children engaged in sexually explicit conduct. Investigators located five video files with hash values matching the NCMEC report. In reviewing the files, the investigators noted files depicting a victim under 12 years of age, and other files depicting infants or toddlers in sexually explicit conduct.
The investigation was conducted by the Nebraska State Patrol and this case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States 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.
Lexington Man Sentenced to 120 Months for Armed Methamphetamine TraffickingRead the Press Release
FRANKFORT, Ky. — A Lexington man, John M. Hoskins, III, 33, was sentenced to 120 months in federal prison on Wednesday, by U.S. District Judge Gregory Van Tatenhove, for multiple counts of distributing 50 grams or more of methamphetamine and one count of carrying a firearm during and in relation to a drug trafficking crime.
Between May and July 2022, law enforcement conducted multiple controlled drug transactions with Hoskins using a confidential informant. Through these transactions, Hoskins sold a total of nearly 500 grams of methamphetamine and at least one firearm to the confidential informant. In addition, Hoskins was observed armed with another firearm during at least one of the drug transactions.
Hoskins pleaded guilty to the charges in June 2023.
Under federal law, Hoskins must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Phillip J. Burnett, Commissioner of the Kentucky State Police (KSP), jointly announced the sentence.
The investigation was conducted by ATF, the KSP, and the Bluegrass Narcotics Task Force. The United States was represented by Assistant U.S. Attorney Paco Villalobos.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Latest U.S. Marshals Operation Nabs More Than 4,400 FugitivesRead the Press Release
The U.S. Marshals Service arrested 4,455 violent fugitives during the latest phase of its high-impact fugitive apprehension initiative, dubbed Operation North Star III (ONS III). ONS III targeted violent offenders in 20 cities and resulted in the clearance of 2,818 violent warrants, to include homicide, forcible sexual assault, robbery, aggravated assault, and firearms violations. During this 3-month enforcement effort, investigators also seized 555 firearms, more than $1 million in U.S. currency, and 85 kilograms of illegal narcotics.
The primary jurisdictions of ONS III were Albuquerque; Baltimore; Buffalo, New York; Chicago; Cleveland; Columbus, Ohio; Detroit; Houston; Indianapolis; Jackson, Mississippi; Kansas City, Missouri; Los Angeles; Memphis, Tennessee; Milwaukee; New Orleans; New York; Oakland, California; Philadelphia; Puerto Rico; and Washington, D.C.
“Together with our law enforcement partners across the country, the Justice Department is zeroing in on the violent fugitives responsible for the greatest crime in our communities,” said Attorney General Merrick B. Garland. “The U.S. Marshals Service conducted Operation North Star III to target the most violent criminals, and together with state and local law enforcement arrested over 4,400 fugitives across 20 cities in just three months.”
“ONS is an evidence-based strategy that targets the drivers of violence in our communities,” said U.S. Marshals Service Director Ronald Davis. “ONS is part of the Attorney General’s violent crime reduction strategy, and its success is based on community partnerships and collaboration with our local and state law enforcement partners. I want to thank the outstanding work of the women and men of the USMS and our partnering law enforcement agencies. Together with the community, these efforts have contributed to successful violence reduction efforts in ONS cities.”
This enforcement action marks the third ONS since July 2022. In total, U.S. Marshals have apprehended more than 6,700 wanted fugitives, including 900 charged with homicide, in addition to removing more than 900 weapons associated to violent crime. The concept behind interagency law enforcement operations such as ONS evolved largely from regional and district fugitive task forces. Since the 1980s, the U.S. Marshals Service has combined their resources and expertise with local, state, and federal agencies to find and apprehend dangerous fugitives.
For more information visit www.usmarshals.gov.
Key defendant in drug-distribution conspiracy sentenced to 20 years in federal prisonRead the Press Release
BRUNSWICK, GA: A Georgia state prison inmate who participated in a drug trafficking operation while behind bars has been sentenced to 20 years in federal prison.
Jonathan Alvin Pope, 39, of Waycross, Ga., was sentenced to 240 months in prison after previously pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, Fentanyl, and Heroin, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Lisa Godbey Wood also ordered Pope to serve three years of supervised release upon completion of his prison term. There is no parole in the federal system.
“The sentencing of Jonathan Pope represents a key victory in the investigation and prosecution of a significant drug trafficking network distributing illegal narcotics in multiple south Georgia counties,” said U.S. Attorney Steinberg. “We applaud the outstanding work of the local, state and federal agencies who collaborated to dismantle this network and make our communities safer.”
The indictment in Operation Pope’s G.O.A.L., an Organized Crime Drug Trafficking Task Force investigation, was unsealed in July 2022. The indictment charged 14 defendants involved in a drug trafficking conspiracy that distributed methamphetamine, heroin, and fentanyl since as early as 2018. The drug traffickers operated in Glynn, Brantley, Bacon, Pierce, Coffee, Camden, and Ware counties, and beyond. Pope used contraband cell phones and electronic devices to participate in the conspiracy while imprisoned on unrelated state charges.
All of the defendants have pled guilty to various charges related to the conspiracy, including:
- Lena Leigh Davis, 46, of Homeland, Ga., who conducted drug transactions at Pope’s direction. She pled guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, Heroin, and Fentanyl, and is serving 135 months in federal prison.
- Richard Reginald Perkins Jr., a/k/a “Reggie,” 47, of Nahunta, Ga., sentenced to 168 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.
- Kristina Ashley Montgomery, a/k/a Kristina Ashley Crews, 38, of Hortense, Ga., who conducted drug transactions as part of the operation. She is serving 126 months in federal prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, Heroin, and Fentanyl. And,
- Clark Bennett, 51, of Blackshear, Ga., is serving 60 months in prison after pleading guilty to Possession of a Firearm in Furtherance of a Drug Trafficking Crime.
“Poisonous drugs, such as methamphetamine, fentanyl, and heroin have taken a terrible toll on our communities,” said Robert J. Murphy, Special Agent in Charge of the Drug Enforcement Administration Atlanta Division. “Drug trafficker Jonathan Pope must now deal with the consequences of his actions.”
“This case exemplifies our commitment to prevent drug violence and criminal activity from poisoning our communities,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “It also sends a clear message that we will relentlessly pursue and prosecute the leaders and members of these violent drug enterprises.”
“Contraband cell phones in the hands of inmates as a tool to carry out crimes continues to be a challenge within correctional facilities across our state, and we are using every resource at our disposal to combat this issue,” said GDC Commissioner Tyrone Oliver. “Our Agents work closely with our law enforcement partners each and every day in our common goal of public safety, and this case is another great example of that vital collaboration at every level,” continued Oliver. “We are pleased to see justice being served on this individual for his role in jeopardizing the safe operations of our facilities and the safety of the public.”
The case was investigated under the 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.
The investigation was conducted by the Savannah Office of the U.S. Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Georgia Department of Corrections Investigative Unit; the Brantley County Sheriff’s Office; the Ware County Sheriff’s Office; the Glynn County Sheriff’s Office; the Coffee County Sheriff’s Office; the Charlton County Sheriff’s Office; and the Pierce County Sheriff’s Office, with assistance from the Georgia State Patrol, and prosecuted for the United States by Assistant U.S. Attorneys Frank M. Pennington II and OCDETF Coordinator Marcela C. Mateo.
Jefferson County Man Sentenced to 7 Years in Prison on Child Pornography ChargeRead the Press Release
ST. LOUIS – U.S. District Judge Audrey G. Fleissig on Wednesday sentenced a man from Jefferson County, Missouri to seven years in prison on a child pornography charge and ordered him to pay $57,000 to victims.
Matthew Thilges, 60, pleaded guilty June 7, 2023, to one count of receipt of child pornography. He admitted possessing images containing child sexual abuse on his cell phone and computer.
The investigation began after Thilges made a series of threats to kill employees of tech companies, including YouTube, Google, Facebook and Twitter, his plea agreement says. In the beginning of October 2020, Thilges began threatening law enforcement and children. A court-authorized search of Thilges’ home near House Springs, Missouri later that month found electronic devices, a child-like sex doll, eight assault rifles, one handgun and ammunition. Investigators found over 10,000 images containing child pornography on Thilges’ cell phone and computer and concerning images he had taken of a minor child in his home.
Judge Fleissig on Wednesday overruled Thilges’ objections to paying restitution to the victims who have been identified in the images and videos that he possessed. Those victims were notified about Thilges’ possession of the images and his criminal charge, and 17 victims requested restitution to compensate them for mental health treatment and other medical services, as well as other expenses and losses.
The FBI investigated the case. Assistant U.S. Attorney Colleen Lang prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Independence Man Sentenced to 17 Years in Prison for $2.2 Million Fraud SchemesRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., man was sentenced in federal court today for two fraud schemes in which he sold unwitting victims rental equipment and real estate that did not belong to him.
Jeremy Ace Woods, 46, was sentenced by U.S. District Judge Howard F. Sachs to 17 years in federal prison without parole. The court also ordered Woods to pay $798,021 in restitution to 48 victims and to forfeit to the government $336,150, which represents the proceeds he personally received from the charged conduct in this case.
On Dec. 14, 2022, Woods pleaded guilty to three counts of travel fraud and two counts of wire fraud as part of a rental-equipment scheme and a real estate scheme that victimized at least 48 individuals or businesses.
$1,187,177 Rental Equipment Fraud Scheme
As part of the rental-equipment scheme, Woods stole approximately 96 pieces of rental equipment valued at approximately $999,077 from 25 separate rental companies. He then sold at least 41 pieces of equipment to at least 15 victim buyers from across the Midwest, including buyers from Missouri, Kansas, Nebraska, Iowa, Illinois, Oklahoma, and Arkansas. These victim buyers paid Woods a total of $188,100 for the stolen equipment.
According to court documents, Woods used aliases and lies to enter into sexual relationships with multiple women and employment relationships with multiple men. He exploited these relationships by asking these individuals to rent equipment for him, thus acting as straw renters of the equipment — using their real names and banking information to obtain the equipment. Once the rental equipment was obtained, Woods — again, using various aliases — lined up buyers for the stolen equipment by posting the equipment for sale on Facebook Marketplace or similar websites.
Through this scheme, the unwitting straw renters suffered damage to their credit scores and suffered financial losses; the victim rental companies suffered financial losses; and the victim buyers — many of whom were small business owners — sustained devastating financial losses when the equipment they purchased was ultimately returned to the appropriate rental companies. According to the victim declarations, this fraud had a direct impact on multiple victims’ financial solvency and caused substantial loss of retirement, education, or other savings.
Among the rental equipment cited in court documents as being stolen then sold by Woods is a Boxer skid steer from Home Depot in Olathe, Kan., a Bobcat skid steer from United Rentals in Olathe, and a Toro Dingo TX 1000 compact utility loader from Colman Equipment in Smithville, Mo.
As part of the relevant conduct in the scheme, Woods entered into a romantic relationship with a woman with an intellectual disability. Woods exploited this relationship by having the woman buy and rent property for him, including a truck, multiple trailers, and 12 smart phones. Additionally, Woods told the woman they were going to get married, and – based on those lies – used her money to purchase a $3,500 ring for himself.
$1,042,000 Real Estate Fraud Scheme
As part of the real-estate scheme, Woods fraudulently sold 12 homes he did not own, extracting large down payments and monthly installment payments from unsuspecting victim buyers, from September 2021 to February 2022. The scheme involved total payments, made or intended, of over $1 million.
In this scheme, Woods (through his companies, Ace’s Remediation and Lawn Service or Vaughns Property Management) solicited and received subcontracting jobs for maintenance tasks on homes going through the foreclosure process, many of which were owned by the United States Department of Housing and Urban Development. Instead of honoring the contracts and performing the agreed-upon work, Woods posed as the owner of a real-estate company and fraudulently sold the homes to unsuspecting victim buyers. According to court documents, Woods used aliases with each victim of this scheme.
Woods elicited large downpayments from the victims and had the victims enter fraudulent contracts, requiring them to make monthly installment payments until the homes were paid in full. In total, Woods elicited $183,000 in down payments and monthly installments from various victims. Additionally, the victims also spent approximately $33,777 to remodel the homes, leading to a total actual loss of $216,777.
According to court documents, Woods attempted to victimize two additional individuals but the fraud was discovered before a downpayment was made. According to the victim declarations, this fraud — like the rental-equipment scheme — had a devastating financial impact on numerous lives. This fraud had a direct impact on multiple victims’ solvency; has caused substantial loss of retirement, education, or other savings; has caused substantial changes to employment and/or living arrangements; and has impacted victims’ ability to obtain credit.
Among the residential properties cited in court documents as fraudulently sold by Woods is a residence in Shawnee, Kan.
$2,229,177 Total Losses
The intended loss of the two schemes totaled $2,229,177 while the actual loss of the schemes totaled $900,896.
For the rental-equipment scheme, the intended loss was calculated by adding the value of the stolen rental equipment, $999,077, to the amount the victim buyers paid the defendant, $188,100. The intended loss for the real-estate scheme was calculated by adding the amount paid by the victims for the downpayments, home upgrades, and/or monthly installment payments to the total unpaid amount owed under the fraudulent contracts for a total of $1,042,000.
The three counts of travel fraud to which Woods pleaded guilty are related to instances in which he caused his victims to travel across state lines as part of the fraud schemes.
During the schemes, Woods used multiple aliases, including Jeremy Ace, Jeremy Vaughn, Jeremy Brown, James Hanna, and Elvis John.
Woods has 31 prior felony convictions, including several fraud convictions that are relevant conduct in the two schemes in this case. When arrested in this case in May 2022, Woods was on felony probation in four separate cases in four separate Missouri counties and was on misdemeanor probation in Montgomery County, Kansas. Additionally, he has been convicted of 25 misdemeanors and has had his probation or parole revoked 15 times. He also has pending cases in four separate counties, including an active warrant out of Lyon County, Kansas, for escaping from custody.
This case was prosecuted by Assistant U.S. Attorney Nicholas Heberle. It was investigated by the FBI; the U.S. Department of Housing and Urban Development, Office of Inspector General; and the Overland Park, Kan., Police Department with assistance from the Belton, Mo., Police Department; the Blue Springs, Mo., Police Department; the Bonner Springs, Kan., Police Department; the Cole County, Mo., Sheriff’s Department; the Columbia, Mo., Police Department; the Dickinson County, Kan., Sheriff’s Department; the Harrisonville, Mo., Police Department; the Hutchinson, Kan., Police Department; the Independence, Mo., Police Department; the Independence, Kan., Police Department; the Johnson County, Kan., Sheriff’s Department; the Junction City, Kan., Police Department; the Kansas City, Kan., Police Department; the Kansas City, Mo., Police Department; the Lawrence, Kan., Police Department; the Lee’s Summit, Mo., Police Department; the Leavenworth County, Kan., Sheriff’s Department; the Olathe, Kan., Police Department; the Parkville, Mo., Police Department; the Parsons, Kan., Police Department; the Shawnee, Kan., Police Department; the Smithville, Mo., Police Department; and the Topeka, Kan., Police Department.
Independence Man Sentenced to 12 Years in Prison for Child PornographyRead the Press Release
KANSAS CITY, Mo. – An Independence, Mo., man was sentenced in federal court today for possessing and distributing child pornography following two unrelated investigations by separate law enforcement agencies.
Nicholas P. Johnson, 29, was sentenced by U.S. District Judge Greg Kays to 12 years and six months in federal prison without parole. The court also ordered Johnson to pay $19,000 in restitution to his victims and sentenced him to spend the rest of his life on supervised release following incarceration. Johnson will be required to register as a sex offender upon his release from prison and will be subject to federal and state sex offender registration requirements, which may apply throughout his life.
On March 17, 2023, Johnson pleaded guilty to one count of distributing child pornography and one count of possessing child pornography that involves a prepubescent minor.
Johnson admitted that he shared images of child pornography on multiple occasions on Discord, a social media platform. When task force officers with the Western Missouri Cyber Crimes Task Force received reports of two separate Cybertipline reports from Discord, they contacted Johnson on June 17, 2020, and seized his cell phone. A forensic analysis of Johnson’s cell phone found 292 videos and 888 photos of child pornography.
Investigators also found Kik Messenger chats between Johnson and another individual in which Johnson made claims that he had sexually abused children. Johnson was actually communicating with an undercover FBI task force officer, who was conducting a separate and unrelated investigation.
In May 2020, an FBI Child Exploitation Task Force officer was working online in an undercover capacity, monitoring internet forums known to be used for sharing child pornography. During that online investigation, the undercover officer communicated with Johnson via the Kik Messenger application and, later, the Wickr instant messaging application. Johnson shared advice with the undercover officer on the grooming and sexual exploitation of children, made claims that he had sexually abused children, and shared child pornography with the undercover officer.
Federal agents executed a search warrant at Johnson’s residence on July 14, 2020. Johnson told agents that he shared child pornography with about 25 other users. Some the files, Johnson told investigators, included depictions of bondage and of prepubescent girls being raped. Investigators seized two laptop computers, which contained at least 164 files that contained child pornography.
This case was prosecuted by Assistant U.S. Attorney David Luna. It was investigated by the FBI, the Independence, Mo., Police Department, and the Western Missouri Cyber Crimes Task Force.
Project Safe Childhood
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 . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Illegal possession of gun sends Billings felon to prison for 30 monthsRead the Press Release
BILLINGS — A Billings felon who was on probation when officers found him wearing a bandana over his face and a carrying semi-automatic rifle wrapped in a blanket as he walked down a residential street was sentenced today to 30 months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Fermin Joseph Vasquez, 39, pleaded guilty in May to prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that on April 27, 2021 in Billings, a 911 caller spotted Vasquez walking down a residential street with his entire face concealed by a bandana with eyeholes cut out, wearing a black jumpsuit and carrying what appeared to be a shotgun or rifle wrapped in a blanket. When he saw officers approach, Vasquez began doing lunges with the gun over his shoulders. Officers suspected Vasquez was under the influence of drugs. Officers disarmed and handcuffed Vasquez. Vasquez admitted he was a felon and on probation. The gun was a .22-caliber semi-automatic rifle. Vasquez had four prior felony convictions and was on supervision at the time he possessed the firearm.
Assistant U.S. Attorney Julie R. Patten 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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Hammond Woman Pleads Guilty to Theft of More Than $44,000 in Social Security FundsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that MELISSA KING (“KING”), age 53, of Hammond, Louisiana, pled guilty as charged on September 19, 2023 to a one count indictment, charging her with Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
For this crime, KING faces a maximum penalty of ten (10) years of imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000, and a mandatory special assessment fee of $100. United States District Court Judge Greg G. Guidry set the sentencing hearing in this matter for January 9, 2024.
According to court records, beginning in or around December 2016, and continuing until in or around March 2020, KING collected approximately $44,696.00 in Social Security Administration funds to which she was not entitled.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni of the Financial Crimes Unit.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Chippewa Falls Man Charged with Gun & Drug Crimes
In a five-count indictment, Brandon Herman, 42, Chippewa Falls, Wisconsin, is charged with gun offenses and drug crimes involving methamphetamine and fentanyl. The indictment alleges that on May 24, 2023, Herman was a felon in possession of firearms, that he possessed 500 grams or more of methamphetamine with intent to distribute, that he possessed fentanyl with intent to distribute, that he maintained a drug house, and that he possessed a firearm in furtherance of a drug trafficking crime. The indictment alleges that he maintained a place in the Township of Lafayette in Chippewa County for the purpose of distributing methamphetamine and fentanyl, and that he possessed four handguns and a rifle.
If convicted, Herman faces a maximum penalty of 15 years in federal prison on the charge of being a felon in possession of firearms, a mandatory minimum of 10 years and a maximum of life on the charge of possessing 500 grams or more of methamphetamine for distribution, a maximum of 20 years on the fentanyl charge, and a maximum of 20 years on the charge of maintaining a drug house. The charge of possessing a firearm in furtherance of a drug trafficking crime has a mandatory minimum penalty of 5 years and a maximum of life; federal law requires that any sentence imposed on this charge be served consecutive to any other prison sentence imposed.
The charges against Herman are the result of an investigation by the Chippewa County Sheriff’s Office, Eau Claire County Sheriff’s Office, West Central Drug Task Force, St. Paul (Minnesota) Police Department, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kathryn Ginsberg is handling the prosecution.
Two Madison Men Charged with Drug Crimes Involving Fentanyl
Steven P. Dixon, 30, and Tysean J. Pollard, 22, both of Madison, Wisconsin, are charged with distributing fentanyl on June 6, 2023. The indictment alleges that the amount attributable to Dixon as the result of his conduct is 40 grams or more.
The indictment also charges that on June 21, 2023, Dixon distributed 40 grams or more of fentanyl, and that on July 28, 2023, he possessed 400 grams or more of fentanyl with intent to distribute. The indictment also charges that Dixon was a felon in possession of ammunition.
If convicted, Pollard faces a maximum penalty of 20 years in federal prison. Dixon faces a mandatory minimum of 5 years and a maximum of 40 years on each of the two charges alleging 40 grams or more of fentanyl, and a mandatory minimum of 10 years and a maximum of life on the charge alleging 400 grams or more of fentanyl, and 15 years on the charge of being a felon in possession of ammunition. The charges against Dixon and Pollard are the result of an investigation by the Madison Police Department, Drug Enforcement Administration, U.S. Postal Inspection Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Anita Marie Boor is handling the prosecution.
Madison Man Charged with Drug Offenses
Kendal J. Harris, 28, Madison, Wisconsin, is charged in a six-count indictment with drug offenses involving fentanyl. The indictment charges that between July 11 and August 17, 2023, Harris distributed fentanyl on five occasions, with one count alleging the distribution of 40 grams or more. The indictment also charges that on August 24, 2023, Harrison possessed 40 grams or more of fentanyl with intent to distribute.
If convicted, Harris faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison on the two counts alleging 40 grams or more of fentanyl. The other four counts each have a maximum penalty of 20 years. The charges against Harris are the result of an investigation by the Dane County Narcotics Task Force and the Madison Police Department. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
La Crosse Man Charged with Gun Crime
Shane L. Tucker, 30, La Crosse, Wisconsin, is charged with being a felon in possession of a firearm. The indictment alleges that on July 20, 2023, Tucker possessed a .22 caliber handgun.
If convicted, Tucker faces a maximum penalty of 15 years in federal prison. The charge against him is the result of an investigation by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Pepin County Man Charged with Illegally Possessing Firearm & Ammunition
Jesse Turnmire, 34, Durand, Wisconsin, is charged with being a felon in possession of a firearm and ammunition. The indictment alleges that on July 7, 2023, Turnmire possessed a .22 caliber revolver and ammunition.
If convicted, Turnmire faces a maximum penalty of 15 years in federal prison. The charge against him is the result of an investigation by the Eau Claire County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Robert Anderson is handling the prosecution.
Gary Man Sentenced to 30 Months in PrisonRead the Press Release
HAMMOND- Milton Daniels, 35 years old, of Gary, Indiana, was sentenced by United States District Court Senior Judge Jon E. DeGuilio after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Daniels was sentenced to 30 months in prison followed by 2 years of supervised release.
According to documents in the case, on August 5, 2022, Daniels was arrested on an outstanding warrant. At the time of his arrest, Daniels possessed a loaded 9mm semi-automatic firearm. His criminal history revealed he had a prior felony conviction for residential entry and escape, and as such is prohibited from possessing the firearm in this case.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives in coordination with Indiana High Intensity Drug Trafficking Task Force and the Gary Police Department. This case was prosecuted by Assistant United States Attorney Michael J. Toth.
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.
Former Stoneham Police Officer Pleads Guilty to Defrauding Three LandlordsRead the Press Release
BOSTON – A former detective sergeant for the Stoneham Police Department pleaded guilty today to concealing his history of evictions and using a family member’s credit report to obtain an apartment lease and then defrauding his landlord by intentionally withholding rent payments.
Robert Kennedy, 54, of Stoneham, pleaded guilty to two counts of wire fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 4, 2024. Kennedy was arrested in March 2023 and subsequently indicted by a federal grand jury in April 2023.
Kennedy defrauded his last three landlords by providing materially false and misleading information in his rental applications to obtain the respective apartment leases. After moving in, Kennedy would intentionally withhold rent payments, despite making $141,000 - $187,000 a year from the Stoneham Police Department. As a result, Kennedy lived in the apartments rent-free by taking advantage of the slow eviction process.
Specifically, Kennedy defrauded his most recent landlord by submitting materially false and fraudulent information during the rental application process. The landlord required Kennedy to submit to a tenant screening service, which included a credit check and eviction history check. Instead of providing his own date of birth and social security number to the tenant screening service – which would likely have shown Kennedy’s history of collections, delinquent payments, defaults and evictions – Kennedy provided the date of birth and social security number of a relative who shared his first and last name. The landlord relied on the information from the fraudulently obtained tenant screening report to approve Kennedy’s rental application and give Kennedy a lease for the apartment. Additionally, Kennedy immediately and intentionally violated the terms of the lease by giving the landlord bad checks for his rent and security deposit and failing to make subsequent rent payments. Kennedy lived in the apartment for approximately four months without making rent payments and currently owes the landlord approximately $14,000 in overdue rent.
The charges of wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made announcement today. Valuable assistance was provided by the Stoneham Police Department. Assistant U.S. Attorneys Elysa Q. Wan and Dustin Chao of the Public Corruption & Special Prosecutions Unit are prosecuting the case.
Former Lieutenant for the Newport News Fire Department Sentenced for Coercion and Enticement of a Child and Receipt of Child PornographyRead the Press Release
NEWPORT NEWS, Va. – A Newport News man was sentenced yesterday to over 33 years in prison for coercion and enticement of a child and receipt of child sexual abuse material (CSAM).
According to court documents, in February 2022, Christopher Scott Jones, 43, used the internet to entice and coerce a minor to engage in sexual activity. During the investigation of this offense, the FBI discovered several children who may have been victims of Jones’ conduct. The minors were forensically interviewed and three made disclosures of sexually explicit contact with Jones. One minor disclosed Jones engaging with them over the course of nine months in physical and sexual conduct, to include inappropriate sexual contact and the mutual exchange of sexually explicit images to one another. Forensic examinations of his devices and lawful searches of his accounts confirmed the illicit relationships. In addition, in July 2022, Jones traveled to meet an undercover individual posing as a 12-year-old for sex.
On May 18, Jones pleaded guilty to using a communication facility to knowingly persuade, induce, entice, and coerce a minor to engage in sexual activity. Jones also pleaded guilty to receiving child pornography of his victim.Jones was formerly a lieutenant with the Newport News Fire Department.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Jamar K. Walker.
James City County Police Department assisted in this investigation.
Assistant U.S. Attorney Peter Osyf prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 4:23-cr-32.
Former Erie Resident Sentenced to 30 Months in Jail for Violating Federal Firearm LawsRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 30 months in jail on his conviction of violating federal firearms laws, United States Attorney Eric G. Olshan announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Dustin Robert Patterson, 30.
According to information presented to the court, in and around February 2022, Patterson possessed a firearm while being a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm. In addition, the firearm was possessed while Patterson was subject to a Protection From Abuse order.
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.
Prior to imposing sentence, Judge Baxter noted Patterson’s lengthy criminal history which included crimes of violence.Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Olshan commended the United States Marshal’s Service for the investigation leading to the successful prosecution of Patterson.
Fayette County Man Sentenced to 48 Months for Possession of a Firearm by a Convicted FelonRead the Press Release
FRANKFORT, Ky. — A Lexington man, Cleotis Wade, 50, was sentenced to 48 months in federal prison on Tuesday, by U.S. District Judge Gregory VanTatenhove, for possession of a firearm by a convicted felon.
According to his plea agreement, on May 29, 2022, law enforcement encountered Wade after being dispatched to an apartment complex in Lexington. According to a witness, a man matching Wade’s description had attempted to enter her apartment, then retrieved a firearm from his vehicle and fired one or more shots into the air. Law enforcement located Wade outside the complex in a car, observed a firearm behind the passenger seat, and found a fired shell casing outside the driver side door.
Wade had multiple prior felony convictions in Fayette Circuit Court, including for heroin trafficking in 2014 and burglary in 2011. As a convicted felon, Wade was prohibited from possessing a firearm.
Wade pleaded guilty to the current charge in March 2023.
Under federal law, Wade must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by ATF and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney Cindy Rieker.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Crownpoint Man Sentenced to 12 Years in Prison for Firearm OffensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Derrick Cook was sentenced to 12 years in prison. Cook, 28, of Crownpoint, and an enrolled member of the Navajo Nation, pled guilty to assault with a dangerous weapon and using and carrying a firearm during and in relation to a crime of violence on April 11, 2023.
According to court documents, on Aug. 27, 2022, Cook got into an argument with John Doe 1 and his girlfriend outside the Crownpoint Trading convenience store. When an employee told Cook to leave, he fired multiple shots at the building from the back of a car. Later that evening, John Doe 1 and John Doe 2 confronted Cook at his home. A fight began and Cook shot both men. Doe 1 was shot in the left side of his chest/abdomen, which resulted in a collapsed lung. He was intubated to assist his breathing, given a chest tube to treat the collapsed lung and a blood transfusion, and underwent surgery to repair his injuries. Doe 2 was shot in the right elbow resulting in a radial fracture.
Upon his release from prison, Cook will be subject to 3 years of supervised release.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Police Department and the Navajo Department of Criminal Investigations. Assistant United States Attorney Nicholas J. Marshall is prosecuting the case.
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Conway Man and Texas Man Sentenced to Multi-Year Terms in Federal Prison for Drug Trafficking and Related ActivityRead the Press Release
FLORENCE, SOUTH CAROLINA — Martine Garcia, 32, of Conway, was sentenced to more than 3 years in federal prison after pleading guilty to possession with intent to distribute cocaine and methamphetamine. Ulisses Jair Perez Guillen, 20, of Forth Worth, Texas, was sentenced to ten years in prison after pleading guilty to possession with intent to distribute cocaine and possessing a firearm in furtherance of drug trafficking.
Evidence presented to the court showed that, on July 7, 2022, law enforcement executed a search warrant at a home in Conway from which Garcia had previously sold methamphetamine. Garcia and Perez Guillen were located inside the home, where law enforcement found approximately 450 grams of methamphetamine and 700 grams of cocaine. Inside a car Perez Guillen had driven to the home, law enforcement found nearly a kilogram of cocaine and a 9mm SCCY handgun. Further investigation revealed a hidden compartment in the car, which contained approximately 3.5 kilograms of additional suspected cocaine.
United States District Judge Joseph Dawson, II, sentenced Garcia to 41 months in prison, with 4 years of court-ordered supervision to follow. Judge Dawson sentenced Perez Guillen to 120 months in prison, with 5 years of court-ordered supervision to follow. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by Horry County Police Department and the Drug Enforcement Administration. Assistant U.S. Attorney Katherine Flynn prosecuted the case.
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Coffee County Man and His Brother Found Guilty of Carrying Out a Murder-for-Hire PlotRead the Press Release
MONTGOMERY, ALABAMA – Today, a federal jury in Montgomery, Alabama, convicted two men for their roles in a murder-for-hire conspiracy that resulted in the November 27, 2017, death of an Enterprise woman.
According to court documents and evidence presented during the six-day trial, in 2017, Jason Starr, 50, from Coffee Springs, Alabama, went through a divorce from his former wife. Ultimately, a judge awarded a significant portion of Jason Starr’s income to his ex-wife. Shortly after the divorce, from September 2017 to November 2017, Jason Starr sent approximately $2,600 to his brother, Darin Starr, 54, a resident of Lakehills, Texas. Cell phone records for Darin Starr showed that he traveled from Texas to Coffee County just before Thanksgiving in 2017 and, on multiple occasions, was very near the home of his brother’s ex-wife. Around midnight on November 27, 2017, Darin Starr’s phone was turned off. Approximately seven hours later, Darin Starr shot and killed his brother’s ex-wife in her driveway as she was leaving for work. Darin Starr turned his phone back on around 8:00 a.m. when he was on I-10 heading back to Texas.
In rendering its verdict, the jury determined that the money sent by Jason Starr to his brother was payment for the murder of his ex-wife.
A sentencing hearing for Jason and Darin Starr will be held in the coming months. At that hearing, they will each face a mandatory sentence of life in prison. There is no parole in the federal system.
“The tragedy endured by the victim’s family is unthinkable,” stated United States Attorney Sandra J. Stewart. “I am grateful for the hard work of all the investigating agencies in this case. Their efforts resulted in bringing Jason and Darin Starr to justice.”
"The FBI and our state and local partners worked tirelessly to ensure justice was served,” stated FBI Special Agent in Charge Paul Brown. “We thank the jury for their work on this case."
The FBI, the Coffee County Sheriff’s Office, the Alabama Department of Forensic Sciences, and the Alabama Law Enforcement Agency investigated the case, with Assistant United States Attorneys Joshua J. Wendell and B. Chelsea Phillips prosecuting.
Chickasha Man Sentenced to Serve a Decade in Federal Prison for Distributing a Fentanyl Pill that Resulted in an OverdoseRead the Press Release
Case Demonstrates Importance of Drug Enforcement Administration’s “One Pill Can Kill” Campaign
OKLAHOMA CITY – Yesterday, MARCUS LAMAR RICHARDSON, 23, of Chickasha, was sentenced to serve 120 months in federal prison for distribution of fentanyl, announced U.S. Attorney Robert J. Troester.
On November 15, 2022, Richardson was charged by Superseding Information with distribution of fentanyl. According to public record, on or about December 30, 2021, Richardson distributed a pill containing fentanyl to co-defendant Brianna Rechell Hugar, 24, to deliver to another person. That person went on to overdose and nearly die as a result of the fentanyl. The victim survived only because of life saving measures by Chickasha Police.
On December 1, 2022, Richardson pleaded guilty to the Superseding Information charge.
“It only takes one deadly fentanyl-laced pill to cause a fatal overdose,” said U.S. Attorney Robert J. Troester. “Far too many have died due to the flood of fentanyl in the United States and Oklahoma. We stand with and support our DEA partners to do all we can to stop the illicit flow of fentanyl where we can and hold those who dispense this deadly poison accountable.”
“This sentence sends a message to drug traffickers who feed the drug addicted and line the pockets of criminal organizations,” said Eduardo A. Chavez, Special Agent in Charge of the Dallas Field Division. “Mr. Richardson is being held accountable for the poison that found its way into our neighborhoods by his hand. Whether it is one pill of fentanyl or 1,000 pills, the DEA will never cease its efforts to rid these drugs from the streets of Oklahoma.”
At the sentencing hearing on Tuesday, U.S. District Judge Joe Heaton sentenced Richardson to 10 years in prison. In announcing the sentence, Judge Heaton noted the seriousness of the offense—particularly the near fatal consequence of his drug distribution—as well as the extent of the threat to the public posed by fentanyl, and thus, by extension, Richardson’s conduct. Judge Heaton noted that it took only half a pill for the victim to overdose, while also observing that Richardson was distributing significant quantities of this dangerous drug.
On August 23, 2023, Hugar was sentenced to serve 24 months in federal prison after pleading guilty to distribution of fentanyl.
This case demonstrates the importance of the “One Pill Can Kill” campaign by the Drug Enforcement Administration. More information about “One Pill Can Kill” can be found at https://www.dea.gov/onepill.
This case is a result of an investigation by the Drug Enforcement Administration and the Grady’s County Sheriff’s Office. Assistant U.S. Attorneys David McCrary and Elizabeth Joynes prosecuted the case.
Charlotte Behavioral Health Services Provider Is Indicted for Defrauding the South Carolina Medicaid Program and COVID-19 Relief FraudRead the Press Release
CHARLOTTE, N.C. – A Charlotte behavioral health services provider has been indicted on federal charges for allegedly defrauding the South Carolina Medicaid Program (SC Medicaid) and falsely obtaining COVID-19 relief funds, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
The 16-count federal indictment charges Ashley Nicole Cross, 41, of Charlotte, with healthcare fraud, making false writings relating to a healthcare matter, making false statements relating to a healthcare matter, promotion money laundering, wire fraud, wire fraud conspiracy, and wire fraud affecting a financial institution.
Robert M. DeWitt, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
The Healthcare Fraud Scheme
The federal indictment alleges that Cross owned and operated Odyssey Health Group (OHG), a Charlotte-based company, that was enrolled with SC Medicaid and provided outpatient behavioral health services to eligible Medicaid beneficiaries in South Carolina. From 2016 to 2021, Cross carried out an extensive healthcare fraud scheme involving the fraudulent submissions of fraudulent reimbursement claims to SC Medicaid and its contracted managed care organizations for rehabilitative behavioral health services that were never provided. The indictment alleges that Cross paid for the personal identifying information (PII) of qualified SC Medicaid beneficiaries. Cross then allegedly used the PII to file fraudulent reimbursement claims totaling at least $400,000. To further the scheme and to give the appearance that OHG’s fraudulent claims were legitimate, Cross allegedly instructed OHG employees to create fictitious patient files and clinical service notes in the names of beneficiaries.
According to allegations in the indictment, in September 2019, Cross was informed of an audit into OHG’s claims. The indictment alleges that Cross submitted fictitious patient medical records and made false statements to the auditor in order to cover up the fraud.
The indictment also alleges that Cross engaged in money laundering and used some of the fraudulent proceeds to promote the scheme by paying for Medicaid beneficiary names and PII.
The COVID-19 Fraud Scheme
According to allegations in the indictment, from April 3, 2020, to May 14, 2022, Cross executed a scheme to obtain fraudulent Paycheck Protection Program (PPP) loans on behalf of OHG and Gucci International Inc. (Gucci), a purported event planning business owned by a co-conspirator. To obtain the PPP loans, Cross submitted loan application and supporting documents that contained false statements regarding OHG’s and Gucci’s payroll expenses, number of employees, and other misrepresentations. As a result of the fraudulent PPP loan applications and supporting documents, Cross and her coconspirator obtained more than $120,000 in COVID-19 relief funds for OHG and Gucci. At the time of Gucci’s loan application, the company’s owner was under indictment for a federal offense.
The charges against Cross are allegations. A defendant is presumed innocent until proven guilty beyond reasonable doubt in a court of law.
A summons has been issued and Cross will appear in federal court for her initial appearance. The healthcare fraud offense carries a maximum penalty of 10 years in prison for each count in the indictment. The offense of making false writings and false statements relating to a healthcare matter carries a maximum prison sentence of five years. The promotion money laundering and wire fraud charges each carry a maximum statutory sentence of 20 years in prison per count. And the charge of wire fraud conspiracy affecting a financial institution carries a maximum penalty of 30 years in prison.
The FBI investigated the case with the substantial assistance of the South Carolina Attorney General’s Office, Medicaid Fraud Investigations.
Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Charleston County Man Sentenced to 5 Years in Federal Prison for Wire FraudRead the Press Release
CHARLESTON, SOUTH CAROLINA — Amir Golestan, 40, of Charleston, was sentenced to 5 years in federal prison after pleading guilty to 20 counts of wire fraud.
Evidence presented to the court showed that Golestan operated a company, Micfo, LLC, that represented itself as providing hosting services and providing customers with technologies and services needed for a website or webpage to be viewed on the Internet. As part of its business, Micfo applied and registered for IPv4 addresses through the American Registry of Internet Numbers (“ARIN”).
IPv4 addresses are numerical labels assigned to each device connected to a computer network that uses the Internet for communication. ARIN is a nonprofit organization that administers IP address rights, allocations, and transfers in the United States, Canada, and parts of the Caribbean. To obtain an IP address allocation from ARIN, an entity has to provide a need-based justification. As ARIN’s pool of IPv4 addresses has depleted, a secondary market has developed where prices for a single IPv4 address have increased dramatically.
After Micfo no longer qualified to procure additional IPv4 addresses based on ARIN’s policies and procedures, Golestan created fake companies, which he referred to as “Channel Partners,” to procure them. Through the Channel Partners, Golestan made fraudulent representations to ARIN, and ARIN relied on those misrepresentations in granting the Channel Partners rights to IPv4 addresses.
Golestan made over $3 million selling rights to those IPv4 addresses on the secondary market before his fraudulent scheme was caught.
“Like many corporate wrongdoers, Amir Golestan tried to obscure his criminal conduct by using fake companies and complex transactions,” said U.S. Attorney Adair F. Boroughs. “The U.S. Attorney’s Office stands ready to unwind these schemes and prosecute those who exploit critical technologies to line their own pockets. We are grateful to the FBI and to ARIN for their assistance in holding Golestan accountable.”
“Golestan’s criminal activities caused significant harm to his customers who put their trust in his hands,” said Paul “Reid” Davis, Assistant Special Agent in Charge of the FBI Columbia Field Office. “His betrayal of that trust is being met by the weight of justice with this sentence. The FBI, along with its law enforcement partners, are committed to investigating and dismantling fraudulent schemes designed to take advantage of critical technologies.”
United States District Judge Richard M. Gergel sentenced Golestan to 60 months in prison, to be followed by a 2-year term of court-ordered supervision. There is no parole in the federal system. The court also ordered restitution be paid to ARIN in the amount of $76,978.25.
This case was investigated by the Federal Bureau of Investigation (FBI). Assistant U.S. Attorney Amy F. Bower is prosecuting the case.
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Central Illinois Man Pleads Guilty to Attempted Arson of ClinicRead the Press Release
URBANA, Ill. – A Prophetstown, Illinois, man, Philip J. Buyno, 73, pleaded guilty on September 19, 2023, to attempting to use fire to damage a building used in interstate commerce. Sentencing for Buyno is scheduled for February 5, 2024, at the U.S. Federal Courthouse in Urbana, Illinois.
In court before U.S. Magistrate Judge Eric I. Long, Buyno admitted that, on May 20, 2023, he brought several containers filled with gasoline with him and used his car to breach the front entrance to a commercial building at 600 N. Logan Avenue in Danville, Illinois, for the purpose of burning it down before it could be used as a reproductive health clinic. During the hearing, the government stated that Danville police officers responded to an alarm at 600 N. Logan Avenue around 4:30 a.m. early that Saturday morning. When officers arrived, they found Buyno stuck inside a maroon Volkswagen Passat that he had backed into the entrance of the building, which was under renovation. During a search of the car, FBI Agents found bottles containing gasoline, a hatchet, road flares, multiple old tires, and a pack of matches. Agents also found that Buyno had fortified the trunk of the Passat with 4x4 wooden beams.
Buyno has been in the custody of the U.S. Marshals Service since May 2023, where he remains pending sentencing.
Buyno faces statutory penalties of a minimum five years up to twenty years in prison, a fine of up to $250,000, three years of supervised release, and restitution for the damage caused to the building.
The charges are the result of an investigation by the Federal Bureau of Investigation, Springfield Field Office, and the Danville Police Department. Supervisory Assistant U.S. Attorney Eugene L. Miller is representing the government in the prosecution.
Christopher J. Wilson, United States Attorney - Eastern District of Oklahoma, Will Be Available to the Press Regarding Scheduled Anti-Terrorism Advisory Council (Atac) Meeting & Training EventRead the Press Release
MUSKOGEE, OKLAHOMA - Christopher J. Wilson, United States Attorney for the Eastern District of Oklahoma, will be available to the press regarding a scheduled Anti-Terrorism Advisory Council (ATAC) meeting & training event for law enforcement officers, security professionals, and school personnel who might find themselves in a first-responder role during an active-shooter event within their respective community or place of work.
WHEN
9:30 am
Thursday, September 21, 2023WHERE
Martin Luther King Jr. Community Center
300 W Martin Luther King St.
Muskogee, OK 74401OPEN PRESS
NOTE: Press should arrive 30 minutes prior to appointment time to allow for camera set-up, etc. Press should also call the contact number (918) 684-5100 before making an appointment to confirm parameters of this press availability event.
Business Partner of Convicted Art Dealer Inigo Philbrick Sentenced to 20 Months in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ROBERT NEWLAND, the business partner of convicted art dealer INIGO PHILBRICK, was sentenced today to 20 months in prison in connection with a multi-year scheme to defraud various individuals and entities in order to finance PHILBRICK’s art business. U.S. District Judge Sydney H. Stein imposed today’s sentence.
U.S. Attorney Damian Williams said: “Robert Newland helped Inigo Philbrick commit one of the largest fraud schemes ever perpetrated in the art market. By taking advantage of the lack of transparency in the art market, Philbrick and Newland defrauded art collectors, investors, and lenders by lying about the true ownership interests of artworks and selling or pledging as collateral over 100% of numerous artworks. As the financial adviser, Newland appeared to give legitimacy to Philbrick’s art business, but in reality, he perpetuated the fraud. Today’s sentence sends a message to anyone who facilitates fraud in the art market that they will face serious consequences.”
According to the allegations in the Complaint, Indictment, and statements made in court:
From approximately 2016 through 2019, to finance his art business, PHILBRICK engaged in a scheme to defraud multiple individuals and entities in the art market located in the New York metropolitan area and abroad (the “Fraud Scheme”). NEWLAND was PHILBRICK’s business partner and financial adviser and conspired with PHILBRICK to perpetrate the Fraud Scheme. NEWLAND and PHILBRICK made material misrepresentations and omissions to art collectors, investors, and lenders to access valuable art and obtain sales proceeds, funding, and loans. NEWLAND and PHILBRICK knowingly misrepresented the ownership of certain artworks, for example, by selling a total of more than 100% ownership in an artwork to multiple individuals and entities without their knowledge and by selling artworks and/or using artworks as collateral on loans without the knowledge of co-owners and without disclosing the ownership interests of third parties to buyers and lenders.
Over the years, PHILBRICK obtained over $86 million in loans and sale proceeds in connection with the Fraud Scheme. NEWLAND and PHILBRICK made fraudulent misrepresentations about artworks including, among others, a 1982 painting by the artist Jean-Michel Basquiat titled “Humidity,” a 2010 untitled painting by the artist Christopher Wool, and an untitled 2012 painting by the artist Rudolf Stingel depicting the artist Pablo Picasso.
In the fall of 2019, NEWLAND and PHILBRICK’s Fraud Scheme collapsed as various investors and lenders learned about the material misrepresentations and omissions PHILBRICK and NEWLAND had made.
* * *
In addition to the prison term, NEWLAND, 46, of the United Kingdom, was sentenced to two years of supervised release, during which time he must complete 200 hours of community service per year. NEWLAND was further ordered to pay a forfeiture of $76,000 and the following property: (i) Personal Distance A, painting by Carroll Dunham, 96.5 x 124.5 cm (49 x 38 in.); (ii) Untitled 2016 painting, oil and etching on paper, by Christopher Wool, image size 19 x 15 cm (7.5 x 6 in), paper size 41.3 x 35.6 cm. (16.24 x 14 in.); (iii) Untitled 2007 print, Epson UltraChrome inkjet on linen, by Wade Guyton, 213.36 x 175.26 cm. (83.21 x 68.35 in.); and (iv) a Jean Prouvé desk H 72 x L 160 x P 71.5 cm. In addition, NEWLAND was ordered to pay restitution to victims in the amount of $67,489,808.
PHILBRICK, 35, a U.S. citizen formerly residing in the United Kingdom, pled guilty to one count of wire fraud on November 18, 2021. On May 23, 2022, U.S. District Judge Sidney L. Stein sentenced PHILBRICK to seven years in prison and two years of supervised release. PHILBRICK was further ordered to pay forfeiture of $86,672,790 and restitution of $82,592,367.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation’s Art Crime Team.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Jessica K. Feinstein and Cecilia E. Vogel are in charge of the prosecution.
Browning man admits assault with a gun on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man accused of firing a gun into an occupied house during a dispute admitted to an assault crime today, U.S. Attorney Jesse Laslovich said.
Gerald Anthony Bullchild, 47, pleaded guilty to assault with a dangerous weapon. Bullchild faces a maximum of 10 years imprisonment, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. The court set sentencing for Feb. 29, 2024. Bullchild was released on conditions pending further proceedings.
In court documents, the government alleged that on March 28, 2021, Bullchild drove to the home of a former girlfriend, identified as Jane Doe, to speak with their minor child. When the child refused to go with Bullchild, Bullchild started yelling and honking at Jane Doe. Jane Doe went outside to speak with Bullchild, where he continued yelling and called her profane names. Bullchild left and returned later, yelling and honking. Jane Doe refused to leave the home and Bullchild continued yelling and honking. Finally, as Bullchild started to leave, he fired a pistol round into Jane Doe’s living room. The bullet traveled through the front wall of the house and lodged in the couch, where it bumped against the leg of a child on the couch. Law enforcement recovered a spent .45-caliber shell casing and an empty .45-caliber magazine from the vehicle. The round recovered from the couch was a .45-caliber bullet.
Assistant U.S. Attorney Kalah A. Paisley is prosecuting the case. The Bureau of Indian Affairs and Blackfeet Law Enforcement Services conducted the investigation.
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Broward County Resident Sentenced to 110 Months in Prison for Conspiracy in MJ Capital Funding, LLC Ponzi SchemeRead the Press Release
MIAMI - Yesterday, Pavel Ramon Ruiz Hernandez, a/k/a “Pavel Ruiz,” age 30, of Broward County, Florida, was sentenced to 110 months in prison, followed by three years of supervised release, for conspiring to commit wire fraud in connection with an investment Ponzi fraud scheme associated with MJ Capital Funding, LLC (“MJ Capital Funding”).
According to court records, beginning in March 2021, and continuing through on or about August 12, 2021, Ruiz Hernandez conspired with others to fraudulently solicit money from investors purportedly to fund MJ Capital Funding’s MCAs. Ruiz Hernandez and his co-conspirators recruited other individuals to solicit investors to invest in MJ Capital Funding’s investment offering and paid these individuals commissions, typically 10% of the funds raised. MJ Capital Funding was a Florida limited liability company with its listed place of business in Pompano Beach, Florida. MJ Capital Funding was purportedly engaged in the business of providing merchant cash advances, or MCAs, a type of short-term financing typically used by small and medium-sized businesses.
Court records also state that Ruiz Hernandez and his co-conspirators, directly and indirectly, made false statements and fraudulent representations to investors concerning the nature of the MJ Capital Funding investment and the use of investor funds. Ruiz Hernandez and others falsely told investors that their money would be used to fund MCAs and that investor returns would be paid from the profits of MJ Capital Funding’s MCA business. However, MJ Capital Funding made few MCAs and failed to earn anywhere near the profits it needed to pay the investor returns and principal promised to investors. As a result, Ruiz Hernandez and his co-conspirators paid investor returns by running a large Ponzi fraud scheme, paying existing investors using new investor funds while misappropriating millions of investor dollars for their own personal use and benefit. In his plea, Ruiz Hernandez admitted that he and his co-conspirators falsely and fraudulently obtained at least approximately $42,942,000 dollars from investors.
U.S. Attorney Markenzy Lapointe of the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri, FBI, Miami Field Office, made the announcement.
This case is being investigated by FBI in Miami. The case was prosecuted by Assistant U.S. Attorney Eric E. Morales of the Southern District of Florida. Assistant U.S. Attorney Marx P. Calderón handled asset forfeiture.
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 on http://pacer.flsd.uscourts.gov under case number 21-cr-20185.
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Bronx Man Sentenced to Life in Prison for the 2006 Murder of Kelly Diaz and Other CrimesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that EDWIN CORTORREAL, a/k/a “Crazy Ed,” was sentenced by U.S. District Judge Valerie E. Caproni to life in prison for his participation in a violent robbery crew known as the “Hot Boys” and the murder of Kelly Diaz in 2006 in the Washington Heights neighborhood of Manhattan. CORTORREAL was convicted following a five-day trial before Judge Caproni on April 26, 2023.
U.S. Attorney Damian Williams said: “Edwin Cortorreal was a member of a violent robbery crew that terrorized the Washington Heights neighborhood in Manhattan. But simply robbing his victims was not enough for Cortorreal. He was willing to kill them to make sure he got away with his crimes. To that end, in 2006, Cortorreal executed Kelly Diaz in front of Diaz’s wife. But thanks to the hard work of our law enforcement partners and the prosecutors of this Office, Cortorreal did not get away with this crime.”
According to the evidence presented in court during the trial:
From at least 2006 to in or about 2013, a violent robbery crew known as the “Hot Boys” committed countless burglaries and robberies and sold narcotics in the Washington Heights area. EDWIN CORTORREAL was a trusted associate of the Hot Boys. In 2006, CORTORREAL and four other members and associates of the Hot Boys broke into Kelly Diaz’s apartment in the middle of the night. During the course of the robbery, CORTORREAL and his co-conspirators duct-taped Diaz to a chair and threw his wife to the ground. As they were leaving, CORTORREAL came back and shot Diaz point-blank in the head, killing him instantly as his wife looked on. Less than a year later, CORTORREAL planned to commit another armed robbery, during which he plotted to kill the victims to avoid leaving behind any witnesses.
* * *
CORTORREAL, 36, of the Dominican Republic, was found guilty of one count of conspiracy to commit racketeering, one count of murder in aid of racketeering, and one count of the use of firearm resulting in death.
Mr. Williams thanked the New York Healthcare Fraud Unit of the Federal Bureau of Investigation, the New York City Police Department (“NYPD”), and NYPD Task force officers assigned to the U.S. Attorney’s Office for their work on the investigation.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Mathew Andrews, David Denton, Courtney Heavey, Adam Hobson, Emily Johnson, Ni Qian, Justin Rodriguez, and Hagan Scotten are in charge of the prosecution, with the assistance of paralegal specialist Mia Vuckovich.
Bronx Gang Member Convicted of Racketeering, Drug Trafficking, and Firearms OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that a jury returned a guilty verdict against YELTSIN BELTRAN, a/k/a “Yells,” on three counts in a Superseding Indictment, including charges of racketeering conspiracy, narcotics conspiracy, and a firearms offense. BELTRAN will be sentenced at a later date by U.S. District Judge Katherine Polk Failla, who presided over the eight-day trial.
U.S. Attorney Damian Williams said: “Yeltsin Beltran lived a dangerous lifestyle as a member of the YBMG street gang. Beltran trafficked dangerous drugs and was involved in reckless gunplay in connection with his membership in the gang. Today’s conviction reaffirms this Office’s commitment to prosecute those who choose to participate in gangs that threaten the wellbeing and safety of our community.”
According to the Superseding Indictment and the evidence at trial:
Between in or about 2006 and in or about 2021, BELTRAN was a member of the Young Bronx Money Getters (“YBMG”), an armed gang that trafficked large quantities of heroin throughout the Northeast including in the Bronx, Long Island, upstate New York, and Connecticut. BELTRAN also used, carried, and possessed firearms, at least one of which was discharged in connection with the narcotics conspiracy, including during an April 24, 2017, shooting at an after-hours club, in which BELTRAN shot at another person and struck a bystander, and in an April 19, 2019, incident in which BELTRAN shot himself in the foot while inside a crowded nightclub.
* * *
BELTRAN, 31, of the Bronx, New York, was convicted on three counts: (i) conspiring to participate in the YBMG racketeering enterprise, which carries a maximum term of life in prison; (ii) conspiring to distribute and possess with intent to distribute heroin, cocaine, and marijuana, which carries a mandatory minimum term of 10 years in prison and a maximum term of life in prison; and (iii) using and carrying firearms during, and possessing firearms in furtherance of, the narcotics conspiracy, which carries a mandatory consecutive term of 10 years in prison and a maximum term of life in prison. BELTRAN was acquitted of a December 24, 2017, shooting in connection with the racketeering enterprise and a related firearms count.
The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the Drug Enforcement Administration’s ("DEA") New York Drug Enforcement Task Force that comprises agents and officers of the DEA, New York City Police Department, and the New York State Police.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Frank Balsamello, Christopher Brumwell, Brandon Harper, Benjamin Gianforti, and Mathew Andrews, with the assistance of Paralegal Specialists Chanel-Ashley Foster and William Coleman, are in charge of the prosecution.
Armed Fentanyl Dealer Sentenced to Ten Years in PrisonRead the Press Release
PROVIDENCE – A Pawtucket man who previously admitted to a federal judge that he was in possession of more than two kilos of fentanyl, a loaded Glock handgun, and nearly $80,000 in cash when he was arrested in October 2019 during a Pawtucket Police Department Project Safe Neighborhoods investigation was sentenced today to ten years in federal prison, announced United States Attorney Zachary A. Cunha.
Adrian Montalvo, 36, pleaded guilty in April in federal court to charges of possession with intent to distribute 40 grams or more of fentanyl and possession of a firearm in furtherance of a drug trafficking crime. He was sentenced today by U.S. District Court Judge Mary S. McElroy to ten years of incarceration to be followed by four years of supervised release.
According to information presented to the court, members of the Pawtucket Police Department’s Special Squad /Narcotics Unit developed information that Montalvo, previously convicted multiple times in state courts for trafficking narcotics, was selling large quantities of fentanyl within the city of Pawtucket. Following an investigation that included surveillance of Montalvo and his residence, Pawtucket Police requested and received a court-authorized search warrant for his residence. A search of Montalvo’s residence on October 1, 2019, yielded 2,118.35 grams of fentanyl; $79,106 in cash; a Glock 9mm semi-automatic pistol with an obliterated serial number; and items used in the preparation and packaging of fentanyl for distribution.
In addition to the term of incarceration imposed by the court, the court also ordered Montalvo to forfeit the cash and firearm seized by law enforcement, as well as proceeds realized by his drug trafficking activity, including a 2017 Jeep Wrangler, three widescreen televisions, miscellaneous jewelry, and a projector system.
The case was prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
This case was investigated and prosecuted in federal court as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In 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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Albuquerque Man Sentenced to 10 Years in Prison for Drug Trafficking and Federal Firearms OffensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Eric Castañeda, Acting Special Agent in Charge of the Drug Enforcement Administration’s El Paso Division, announced today that Leonardo Garcia was sentenced to 10 years in prison. Garcia, 39, of Albuquerque, pled guilty to possession with intent to distribute 500 grams and more of a mixture and substance containing cocaine and using and carrying a firearm during and in relation to a drug trafficking crime on March 17, 2023.
According to court records, on the morning of September 8, 2021, DEA agents arrived at Garcia’s residence ahead of executing a search warrant on the premises. While waiting, agents observed Garcia conducting multiple transactions out of his residence. When agents executed the search warrant, Garcia was arrested without incident and a search of his residence revealed 3,594.3 grams of cocaine and multiple firearms. In his plea agreement, Garcia admitted that he possessed the cocaine with the intent of distributing it and the firearms in furtherance of his intent to distribute the cocaine.
Upon his release from prison, Garcia will be subject to 5 years of supervised release.
The Drug Enforcement Administration investigated this case. Assistant U.S. Attorney Joseph M. Spindle is prosecuting the case.
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Whitley County Man Sentenced to 162 Months for Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky. — A Whitley County man, Michael Andrew Nakonechny, 41, was sentenced to 162 months in federal prison on Tuesday, by U.S. District Judge Claria Horn Boom, for possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking offense.
According to his plea agreement, on August 5, 2022, law enforcement in Whitley County located a backpack that Nakonechny possessed and contained over 50 grams of methamphetamine. Nakonechny had received the drugs from his supplier and intended to distribute them. Law enforcement also found a loaded firearm inside the backpack. Nakonechny possessed the firearm to further his drug trafficking activity.
Nakonechny pleaded guilty to the charges in May 2023.
Under federal law, Nakonechny must serve 85 percent of his prison sentence; and upon his release, he will be under the supervision of the U.S. Probation Office for four years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Phillip J. Burnett, Commissioner of the Kentucky State Police; and Rusty Hedrick, Chief of the Corbin Police Department, jointly announced the sentence.
The investigation was conducted by ATF, the KSP, and the Corbin Police Department.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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West Virginia man sentenced for federal drug and firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Erik Lee Kurz, age 29, of Augusta, West Virginia, was sentenced September 18, 2023 to 5 years in federal prison for heroin, fentanyl, and firearms charges.
According to court documents and statements made in court, Kurz, also known as “Edub,’ worked with others to sell heroin and fentanyl from Baltimore, Maryland to Hampshire and Mineral Counties in West Virginia. Investigators found several firearms and ammunition in his vehicle and found fentanyl and additional firearms in his home.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
West Virginia man charged with wire fraud in elder justice caseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joseph M. Beach, age 54, of Inwood, West Virginia, has been indicted for misappropriation by a fiduciary, wire fraud, theft of government property, false written statement, and false statement to federal agent.
According to court documents, Beach was appointed as fiduciary for his father in late 2017. Beach’s father is under the care of a veterans’ care facility and receives monthly benefits. As the fiduciary, Beach received his father’s veteran’s disability, retirement, and social security payments and used them for his own benefit.
Assistant U.S. Attorney Eleanor Hurney is prosecuting the case on behalf of the government.
The Veterans Affairs Office of Inspector General, the U.S. Office of Personnel Management, and the Social Security Administration investigated.
An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
West Virginia man admits to obstructing Tree of Life trialRead the Press Release
WHEELING, WEST VIRGINIA – Hardy Carroll Lloyd, age 45, of Follansbee, West Virginia, pled guilty today to obstruction of the due administration of justice.
According to court documents and statements made in court, Lloyd admitted to making online threats to jurors and witnesses involved in the federal hate crimes trial in Pittsburgh, Pennsylvania, of Robert Bowers, the Tree of Life Synagogue mass shooter. Lloyd, a self-proclaimed “reverend” of a white supremacy movement, distributed threatening social media posts, website comments, and emails during the trial. As part of his plea agreement, Lloyd stipulated that he intentionally selected the jury and government witnesses in the Bowers trial as the targets of his offense due to the actual or perceived Jewish religion of the witnesses and the Bowers victims.
“Hardy Lloyd attempted to obstruct the federal hate crimes trial of the deadliest antisemitic attack in American history,” said Attorney General Merrick B. Garland. “His guilty plea underscores that anyone who attempts to obstruct a federal trial by threatening or intimidating jurors or witnesses will be met with the full force of the Justice Department.”
“Hardy Lloyd’s crime was motivated by hate and there is no place for that in our society,” said United States Attorney William Ihlenfeld. “He tried to undermine our system of justice by targeting the Jewish community and now will pay a steep price for his abhorrent conduct.”
“Mr. Lloyd thought he could get away with making threats against members of a jury to influence their decisions and now he’ll be accountable for his actions,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Mr. Lloyd’s words go far beyond speech that is protected by the constitution and cannot be tolerated. The FBI will vigorously pursue those like Mr. Lloyd who threaten and intimidate others based upon biases and personal differences.”
If the agreement is accepted by the court, Lloyd will be sentenced to 78 months in prison, which is expected to be the highest end of the sentencing range calculated under the U.S. Sentencing Guidelines.
First Assistant U.S. Attorney Randolph Bernard and Assistant U.S. Attorney Jarod Douglas are prosecuting the case on behalf of the government.
The Federal Bureau of Investigation investigated.
West Virginia Man Admits to Obstructing Tree of Life TrialRead the Press Release
Hardy Carroll Lloyd, 45, of Follansbee, West Virginia, pleaded guilty today to obstruction of the due administration of justice.
“Hardy Lloyd attempted to obstruct the federal hate crimes trial of the deadliest antisemitic attack in American history,” said Attorney General Merrick B. Garland. “His guilty plea underscores that anyone who attempts to obstruct a federal trial by threatening or intimidating jurors or witnesses will be met with the full force of the Justice Department.”
“It is absolutely reprehensible that the defendant threatened witnesses and jurors in the Tree of Life case, a tragedy that claimed innocent lives and emotionally scarred many in the Jewish community,” said FBI Director Christopher Wray. “The FBI will not tolerate the intimidation of citizens participating in our criminal justice system, and we will work with our partners to hold legally accountable anyone who threatens or carries out acts of violence against them.”
According to court documents and statements made in court, Lloyd admitted to making online threats to jurors and witnesses involved in the federal hate crimes trial in Pittsburgh of Robert Bowers, the Tree of Life Synagogue mass shooter. Lloyd, a self-proclaimed “reverend” of a white supremacy movement, distributed threatening social media posts, website comments, and emails during the trial. As part of his plea agreement, Lloyd stipulated that he intentionally selected the jury and government witnesses in the Bowers trial as the targets of his offense due to the actual or perceived Jewish religion of the witnesses and the Bowers victims.
If the agreement is accepted by the court, Lloyd will be sentenced to 78 months in prison, which is expected to be the highest end of the sentencing range calculated under the U.S. Sentencing Guidelines.
The FBI is investigating the case.
First Assistant U.S. Attorney Randolph Bernard and Assistant U.S. Attorney Jarod Douglas for the Northern District of West Virginia are prosecuting the case.
United States Obtains Consent Decree Against City of Mount Vernon to Address Polluting Storm SewersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Lisa F. Garcia, the Regional Administrator for Region 2 of the U.S. Environmental Protection Agency (“EPA”), announced today that the United States and the State of New York have entered into a civil Consent Decree with the CITY OF MOUNT VERNON, New York, to resolve ongoing litigation regarding MOUNT VERNON’s non-compliance with Clean Water Act requirements for municipal storm sewers, which has caused raw sewage to be discharged into the Bronx and Hutchinson Rivers.
U.S. Attorney Damian Williams said: “This important settlement provides a path forward for the City of Mount Vernon to comply with the Clean Water Act, protect water quality, and address the needs of its residents who are living with the unlawful discharge of sewage and illicit pollutants. My Office remains committed to protecting human health and the environment in overburdened and underserved communities such as Mount Vernon, and beyond.”
EPA Regional Administrator Lisa F. Garcia said: “The people of Mount Vernon deserve a safe and functioning sewage system. By engaging the city and state we have come up with an enforceable agreement that sets a schedule to reduce pollution and protect public health. This settlement embodies EPA’s commitment to environmental equity and working with communities to tackle the long-standing challenge of aging water infrastructure.”
The Clean Water Act generally prohibits discharges of pollutants into navigable waters, unless in compliance with a permit. Many municipalities, like MOUNT VERNON, operate “municipal separate storm sewer systems” (or “MS4s”) that carry storm water and discharge it without treatment into nearby waters. Because separate storm sewer systems do not treat the water they discharge, a municipality is required by its MS4 permit to maintain a program for identifying and eliminating any sewage or other illicit pollutants flowing into the storm sewers.
According to the allegations in the June 28, 2018, Complaint, the Consent Decree filed today, and other court records:
In June 2018, the United States sued MOUNT VERNON, alleging that since at least January 2012, MOUNT VERNON had failed to comply with these permit obligations and, as a result, had allowed raw sewage to flow into its storm sewer system and then to be discharged into the Hutchinson and Bronx Rivers. The Complaint also alleged that MOUNT VERNON had failed to comply with two EPA Administrative Orders issued to compel MOUNT VERNON’s adherence to these requirements. New York State joined the United States as co-plaintiff in this lawsuit.
In September 2020, the District Court granted the governments’ motion for summary judgment and entered an order requiring MOUNT VERNON to take various steps to come into compliance with Clean Water Act MS4 requirements. However, after the court order was entered, Mount Vernon repeatedly missed deadlines and reporting obligations, forcing the governments to obtain multiple subsequent court orders compelling compliance and imposing financial sanctions against MOUNT VERNON.
Despite this need for enforcement efforts, as reflected in the Consent Decree, MOUNT VERNON has made progress on its compliance obligations. Much work, however, remains to be done. New York State has provided or committed to provide significant financial assistance to MOUNT VERNON to fund repairs to the City’s sewers.
The Consent Decree, filed with the Court today, provides a path forward for compliance in light of these developments, including by requiring MOUNT VERNON to perform sewer system repairs that MOUNT VERNON estimates will cost in excess of $100 million. Among other requirements, the Consent Decree provides the following:
- MOUNT VERNON must construct two pump stations designed to eliminate identified sources of potential infiltration to the MS4.
- MOUNT VERNON must either eliminate all other sources of illicit discharges within 30 days of identifying them or submit a binding plan for EPA’s and New York State’s approval for addressing specific sources that require a longer period to eliminate.
- Immediately upon identifying sanitary sewer overflows that could cause illicit discharges into the MS4, MOUNT VERNON must take steps to mitigate those overflows.
- MOUNT VERNON must complete a Sewer System Evaluation Survey and submit for EPA’s and New York State’s approval a Sewer System Corrective Action Plan (“SSCAP”) “that addresses structural, operational, and maintenance issues for each of the conditions identified in the Sewer System Evaluation Survey.” The SSCAP will be binding and enforceable under the Consent Decree.
- MOUNT VERNON must implement its updated Stormwater Management Program Plan for its MS4 and its Capacity, Management, Operation, and Maintenance program for its sanitary sewers.
- MOUNT VERNON must keep its mapping of sewer system outfalls current.
- MOUNT VERNON must continue to engage engineering and financial experts to help manage its sewer system compliance.
- MOUNT VERNON must undertake transparency and environmental justice measures, including by “evaluat[ing] any potential adverse impacts of construction, repairs, and other actions undertaken pursuant to [the Consent Decree] on overburdened and underserved populations” and “mitigat[ing] any such potential adverse impacts of construction, repairs, and other actions . . . to the maximum extent possible consistent with such work.”
The Consent Decree also provides for a $200,000 civil penalty to resolve the governments’ claims for civil penalties for the violations alleged in the Complaint. Of that, $100,000 will be paid to the United States. $100,000 will be owed to New York State with payment suspended unless MOUNT VERNON fails to comply with the Consent Decree.
In the Consent Decree, MOUNT VERNON also admits, acknowledges, and accepts responsibility for certain conduct, including the following:
- Since at least 2013, MOUNT VERNON has not been in compliance with the permit applicable to its MS4 because it has not fully implemented and enforced an Illicit Discharge Detection and Elimination Program. Among other things:
- MOUNT VERNON has not provided funding, equipment, and staffing levels necessary to implement and enforce an Illicit Discharge Detection and Elimination Program.
- MOUNT VERNON did not complete an outfall reconnaissance inventory for all MS4 outfalls until 2022.
- MOUNT VERNON submitted annual reports month later than the deadlines in June 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022.
- MOUNT VERNON did not submit accurate information in its 2017 and 2018 Annual Reports regarding its completions of the Outfall Reconnaissance Inventory.
- Moreover, at least up to and including the time the Complaint was filed, MOUNT VERNON also failed to meet the following permit requirements:
- MOUNT VERNON did not maintain a map showing all outfall locations, all surface waters receiving outfall discharges, and all storm sewersheds.
- MOUNT VERNON did not adopt measurable goals for the detection, elimination, and reduction of illicit discharges.
- MOUNT VERNON did not adequately inform the public about the hazards of illegal discharges.
- MOUNT VERNON did not select and implement measures to reduce the amount of pollutants of concern in storm water discharges.
- The Mount Vernon MS4 has discharged and at times continues to discharge untreated sewage into the Bronx and Hutchinson Rivers.
- MOUNT VERNON did not comply with two administrative orders issued by EPA to compel MOUNT VERNON’s compliance with the General Permit and the Clean Water Act.
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To provide public notice and afford members of the public the opportunity to comment on the Consent Decree, the Consent Decree will be lodged with the District Court for a period of at least 30 days before it is submitted for the Court’s approval.
Mr. Williams thanked the attorneys and enforcement staff at EPA Region 2 for their critical work on this matter and also thanked the attorneys and staff at the New York Attorney General’s Office and New York State Department of Environmental Conservation.
This case is being handled by the Environmental Protection Unit of the Office’s Civil Division. Assistant U.S. Attorney Robert William Yalen is in charge of the case.
Union County Man Sentenced to 14 Months in Prison for Role in Scheme to Steal Mail, Commit Credit Card Fraud, and Defraud United StatesRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man was sentenced today to time already served – 14 months in prison – for his role in a scheme to receive stolen credit cards and pandemic relief debit cards sent through the mail, commit bank fraud, and defraud the U.S. Postal Service and the U.S. Department of the Treasury, U.S. Attorney Philip R. Sellinger announced.
Justin Brooks, 24, of Vauxhall, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to three counts of an indictment charging him with: one count of conspiracy to commit mail theft and bank fraud, and to defraud the U.S. Postal Service and U.S. Department of the Treasury; one count of receiving stolen mail; and one count of bank fraud. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From July 2019 to Oct. 6, 2020, Books and his conspirators obtained credit cards stolen from the U.S. mail from a U.S. Postal Service letter carrier, fraudulently activated those credit cards, and then used those credit cards to make and attempt to make purchases without the cardholders’ authorization. The victims have incurred approximately $70,000 in losses from fraudulent purchases made using their stolen credit cards. Brooks also schemed to fraudulently use over $13,000 of funds pre-loaded onto Economic Impact Payment (EIP) cards issued by the U.S. Department of Treasury and sent in the U.S. mail pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), that were also stolen from the mail. The CARES Act authorized EIP payments structured as one-time refundable tax credits to certain eligible taxpayers of $1,200 for individuals, $2,400 for married couples filing jointly, and up to $500 for each qualifying child. The goal of this part of their fraud was for the conspirators to unlawfully obtain the government funds pre-loaded onto these cards.
In addition to the prison term, Judge Cecchi sentenced Brooks to three years of supervised release and ordered him to pay $87, 080 in restitution.
Brooks originally was charged with Jarid Brooks, 29, Kyle Williams, 37, and Kyjuan Hutchins, 23, also of Vauxhall, in October 2020. Jarid Brooks, Williams and Hutchins have all pleaded guilty to their roles in the conspiracy. Jarid Brooks and Hutchins are awaiting sentencing; Williams was previously sentenced.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Christopher A. Nielsen, Philadelphia Division; special agents with the U.S. Postal Service – Office of Inspector General, under the direction of Special Agent in Charge Matthew Modafferi, Northeast Area Field Office; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. He also thanked the Union County Prosecutor’s Office, the Caldwell Police Department, the Fairfield Police Department, the Boonton Police Department, and the Millburn Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Elaine K. Lou, Chief of the Opioid Abuse Prevention and Enforcement Unit of the Criminal Division in Newark.
U.S. Attorney’s Office for Eastern District of Michigan Celebrates Funding Awarded for Community Responses to Gender-Based Violence and Community Responses for Gender-Based ViolenceRead the Press Release
DETROIT - In commemoration of the 29th anniversary of the original enactment of the Violence Against Women Act (VAWA), the Justice Department announced nearly $193 million in formula and discretionary grant awards to support crucial services and justice responses for survivors of domestic violence, dating violence, sexual assault, and stalking, including $5,283,715.00 for the Eastern District of Michigan.
For nearly three decades, VAWA provided the tools and resources to protect and serve survivors of domestic violence, dating violence, sexual assault, and stalking. To commemorate the 29th anniversary of VAWA, the U.S. Attorney’s Office for the Eastern District of Michigan is proud to announce that the Department of Justice Office on Violence Against Women (OVW) awarded $5,283,715.00 to the Eastern District of Michigan to support community responses to gender-based violence.
Specifically, the Eastern District of Michigan received the following funds for the 2023 fiscal year:
· OVW awarded $580,000.00 under Grants for Training and Services to End Violence Against Individuals with Disabilities and Deaf People Program (Disability Grant Program) to support services for individuals who have disabilities or are Deaf. Funding will provide specialized training, outreach, cross-training for various agencies, and developing model programs to strengthen organizational capacities in assisting survivors. The recipient of the grant is the Michigan Coalition to End Domestic and Sexual Violence.
In addition, VAWA’s signature program is the STOP (Services, Training, Officers, and Prosecutors) Violence Against Women Formula Grants Program, which awards funds to every U.S. state and territory to promotes a coordinated community response among law enforcement, prosecution, courts, victim services organizations, and other community services to ensure the safety of survivors. OVW is awarding $4,703,715 under the STOP Program to the Michigan Department of Health and Human Services to enhance the capacity for communities across the country to develop programs to end gender-based violence and hold offenders accountable.
Just last week the Department of Justice Office on Violence Against Women (OVW) awarded $1.2 million to the Eastern District of Michigan to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking. The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault. These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety.
• OVW awarded $750,000 under the Legal Assistance for Victims (LAV) Program to the Michigan Advocacy Program of Ypsilanti. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking. Through this new Legal Assistance for Victims project, the Tribal Survivor Project, which is housed within the Michigan Advocacy Program, in partnership with Uniting Three Fires Against Violence, seeks to expand culturally specific, free civil legal assistance in family court matters in state and tribal courts to tribal survivors of domestic violence, sexual assault, and stalking in Michigan, prioritizing survivors in northern Michigan.
• OVW awarded $450,000 under the Justice for Families (JFF) Program to Growth Works, Inc. of Plymouth. The JFF Program aims to improve the capacity of communities and courts to respond to families impacted by violence. Through this new Justice for Families project, Growth Works, in partnership with First Step and the Third Judicial Circuit Court of Michigan, will implement a standard project addressing the following purpose areas: 1) supervised visitation and safe exchange; 3) training for court-based and court related personnel; and 8) training within the civil justice system for Wayne County, Michigan.
Dawn N. Ison, United States Attorney commented: “Preventing and ending violence against women makes the world a safer and more equitable place. I am very pleased that the Office on Violence Against Women recognizes this important work and has made these significant investments in our community.
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OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
U.S. Attorney Young Announces $736,842 in U.S. Department of Justice Grant Funding to Support the Accessibility of Criminal Justice Information to Law EnforcementRead the Press Release
CONCORD – The U.S. Department of Justice has awarded $736,842 to improve the accuracy, utility, and interstate accessibility of criminal records in the District of New Hampshire, U.S. Attorney Jane E. Young announces.
Specifically, the New Hampshire Attorney General’s Office has received the FY2023 National Criminal History Improvement Program Supplemental Funding to support the New Hampshire State Police’s (NHSP) efforts to:
1) Increase the functionality, speed and dissemination of shared criminal justice records and information among law enforcement partners.
2) Enhance the state’s records systems to include data for boat information, such as New Hampshire Marine Patrol vessel stops, search capabilities, and the creation and printing of Marine Patrol e-Tickets.
3) Fund equipment purchases for 10 New Hampshire law enforcement agencies to connect to the State Message Platform, which is a telecommunication service operated by the NHSP.
“Today’s grant award supports the U.S. Department of Justice’s mission to reduce violent crime by further connecting law enforcement partners to vital criminal justice intelligence and capabilities that will aid in critical public safety services,” said U.S. Attorney Jane E. Young. “The U.S. Attorney’s Office will continue to support information sharing between federal, state, and local agencies.”
The FY2023 National Criminal History Improvement Program Supplemental Funding aims to further the U.S. Department of Justice’s mission to reduce violent crime and address gun violence by improving the accuracy, utility, and interstate accessibility of criminal-history and related records in support of national record systems and their use for name- and fingerprint-based criminal history background checks.
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 racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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U.S. Attorney Josh Hurwit to Co-Sponsor “United Against Hate” Summit in PocatelloRead the Press Release
POCATELLO – U.S. Attorney Josh Hurwit along with Idaho State University, the Shoshone Bannock Tribes, the Family Services Alliance, the City of Pocatello, and the Bannock County Sheriff’s Office are convening a United Against Hate summit on September 26 at Idaho State University in Pocatello. The event is free and is open to the public. The registration link can be found here: www.eventbrite.com/e/united-against-hate-tickets-707962393577.
United Against Hate is an initiative launched by the Department of Justice focused on improving efforts to combat hate crimes and hate incidents through relationship building at the local level. Through this endeavor, the U.S. Attorney’s Office seeks to create and strengthen trust and partnerships among law enforcement, community leaders, and residents. Well‑attended summits have already been held in Coeur d’Alene, Caldwell, Boise, and Ketchum.
“In my view, this initiative is particularly timely for Idaho, as we have experienced a series of troubling hate incidents throughout the state in the past several years,” said U.S. Attorney Hurwit. “As Attorney General Garland has said, this is a moment for an all-hands-on-deck approach to combatting unlawful hate.”
The September 26 event will include remarks from local leaders, presentations from prosecutors about hate crimes laws and reporting mechanisms, and speakers who will share their courageous experiences responding to hate.
“I look forward to meeting community members and hearing different perspectives on how we can work together to unite our community in standing up to unlawful hate,” said U.S. Attorney Hurwit. “And I am deeply honored to partner with our co-sponsors to prioritize this critical mission.”
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Two Individuals, Including A Former Pharmaceutical Executive, Plead Guilty to Participating in Insider Trading Scheme Surrounding Alexion Pharmaceuticals’ Acquisition of Portola PharmaceuticalsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that, on September 15, 2023, JOSEPH DUPONT pled guilty to one count of securities fraud, and earlier today, SLAVA KAPLAN, a/k/a “Stanley Kaplan,” pled guilty to one count of securities fraud, both in connection with their participation in an insider trading scheme surrounding the announcement of Alexion Pharmaceuticals, Inc.’s acquisition of Portola Pharmaceuticals, Inc. DUPONT and KAPLAN were arrested in June of this year and pled guilty before U.S. District Judge Gregory H. Woods.
U.S. Attorney Damian Williams said: “Dupont admitted in court that he gave his friend sensitive information that Dupont had misappropriated from his employer at the time so that his friend could profit. And Kaplan admitted in court both that he made profitable trades based on information that he knew was provided to him for an illegitimate purpose, and that he passed that information along to others. These convictions reflect my Office’s ongoing commitment to ensuring fairness in the stock market.”
According to the allegations in the Indictment and statements made in public court proceedings:
In 2020, DUPONT, KAPLAN, and others engaged in an insider trading scheme surrounding the announcement of Alexion’s acquisition of Portola. DUPONT was a vice president at Alexion and, on January 31, 2020, was informed of Alexion’s upcoming acquisition of Portola. Before that acquisition was publicly announced, in April 2020, DUPONT provided material nonpublic information (“MNPI”) that he misappropriated from Alexion about the acquisition to a friend so that the friend could use the information to trade profitably in securities.
In turn, DUPONT’s friend provided KAPLAN, who was also known to DUPONT, the MNPI about Portola’s pending acquisition, both so that KAPLAN could trade in advance of the acquisition and so that KAPLAN would assist DUPONT’s friend in formulating trading strategies to maximize DUPONT’s friend’s own trading profits. KAPLAN further shared MNPI about the upcoming acquisition with a family member and a friend and colleague. After Alexion’s acquisition of Portola was publicly announced on the morning of May 5, 2020, causing Portola’s stock price to increase significantly, KAPLAN and others who had purchased shares and options based on DUPONT’s inside information sold their shares of Portola and call options for Portola stock, reaping millions of dollars of illegally obtained trading profits.
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DUPONT, 44, of Rehoboth, Massachusetts, and KAPLAN, 45, of Hopewell Junction, New York, each pled guilty to one count of securities fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge. DUPONT and KAPLAN are scheduled to be sentenced by Judge Woods on January 5, 2024, at 1:00 p.m. and 3:00 p.m., respectively.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams also thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Margaret Graham, Sarah Mortazavi, and Samuel P. Rothschild are in charge of the prosecution.
Two Indian Nationals Each Sentenced to 41 Months in Prison for Receiving over $1.2 Million in Global Robocall Scam that Defrauded Elderly VictimsRead the Press Release
NEWARK, N.J. – Two Indian nationals were each sentenced today to 41 months in prison for their roles in a conspiracy to commit wire fraud by accepting illegally obtained $1.2 million in wire transfers from victims across the United States, U.S. Attorney Philip R. Sellinger announced.
Arushobike Mitra, 29, and Garbita Mitra, 25, (no relation) both previously pleaded guilty before U.S. District Judge Esther Salas one count of conspiracy to commit wire fraud. Judge Salas imposed the sentences today in Newark federal court.
U.S. Attorney Philip R. Sellinger“These defendants and their conspirators preyed upon some of our most vulnerable citizens, using trickery and threats to coerce them into sending money. Protecting our elderly population from these kinds of deceitful robocall scams is a priority of our office. Those who engage in this kind of elder fraud scheme can expect to face justice.”
“These defendants and their conspirators preyed upon some of our most vulnerable citizens, using trickery and threats to coerce them into sending money,” U.S. Attorney Sellinger said. “Protecting our elderly population from these kinds of deceitful robocall scams is a priority of our office. Those who engage in this kind of elder fraud scheme can expect to face justice.”
According to documents filed in this case and statements made in court:
As part of an international fraud scheme, criminal India-based call centers utilized automated robocalls to victims across the country with the intent of defrauding U.S. residents, particularly the elderly. After establishing contact with victims through these automated calls, other members of the conspiracy would coerce or trick the victims into sending large sums of cash through physical shipments or wire transfers to other members of the conspiracy, including the Mitras. These conspirators used a variety of schemes to convince victims to send money, including impersonating government officials from agencies such as the Social Security Administration, or impersonating law enforcement officers from the FBI or DEA, and threatened victims with severe legal or financial consequences if they did not comply. Another method utilized by the callers involved convincing the victim they were speaking with someone from a tech support company and coercing the victim into granting the caller remote access to their personal computers. The caller would then access the victim’s bank accounts and make it appear to the victim that the caller had inadvertently added money to the victim’s bank account, when in fact the caller had simply transferred money from another one of the victim’s own accounts. The caller would then instruct the victim to “return” the money by way of mail or wire transfer to other members of the conspiracy, including the Mitras.
In addition to the prison terms, Judge Salas sentenced Arushobike Mitra and Garbita Mitra each to three years of supervised release and ordered them to pay $835,324 in restitution.
U.S. Attorney Sellinger credited special agents of the Social Security Administration, Office of the Inspector General, Office of Investigations, New York Field Division, under the direction of Special Agent in Charge Sharon MacDermott; special agents of the Department of Homeland Security, Homeland Security Investigations, Cyber Intrusion Group, and El Dorado Task Force Asset Identification & Removal Group, under the direction of Special Agent in Charge Ivan J. Arvelo in New York; postal inspectors of the U.S. Postal Inspection Service in Newark Division, under the direction of Inspector in Charge Christopher A. Nielsen, Philadelphia Division, with the investigation leading to today’s sentencings. He also thanked the Hoboken Police Department, the Hudson County Prosecutor’s Office, the New York City Police Department, and the Brunswick County, North Carolina, Sheriff’s Office for their assistance.
The government is represented by Special Assistant U.S. Attorney Meriah Russell of the U.S. Attorney's Office Criminal Division in Camden.