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Monday 31 July 2023
U.S. Attorney’s Office for the Southern District of Indiana to Participate in Community Events During National Night OutRead the Press Release
The U.S. Attorney’s Office for the Southern District of Indiana will join community organizers, neighbors, and law enforcement partners to participate in National Night Out events on August 1, 2023. During this year’s National Night Out, U.S. Attorney Zachary A. Myers will attend community events in the surrounding Indianapolis areas.
“A positive, ongoing relationship between neighbors and law enforcement is vital to building trust and keeping the public safe,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “It is important for people to see that we are a part of the communities we serve. Through events like National Night Out, community members can place a friendly face to the law enforcement agencies that serve to protect them and engage in meaningful discussions about crime, safety, and responsibility.”
National Night Out is an annual community-building campaign that promotes partnerships and camaraderie between law enforcement and the communities they serve to make our neighborhoods safer places to live. Millions take part in National Night Out across thousands of communities throughout the country on the first Tuesday of August in most areas of the country.
National Night Out was established in 1984 with funding from the Bureau of Justice Assistance of the U.S. Department of Justice. The program is administered by the National Association of Town Watch, a nationwide non-profit organization.
Coordinated by local law enforcement agencies and trained volunteers, National Night Out provides a great opportunity to bring police and neighbors together under positive circumstances. Neighborhoods host block parties, cookouts, festivals, parades, safety demonstrations, seminars, youth events, visits from emergency personnel, and more. National Night Out sends a message that neighbors are united and working together to keep their communities and each other safe.
For more information, visit https://natw.org/.
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U.S. Attorney’s Office to Participate in Community Events During National Night OutRead the Press Release
SCRANTON - The U.S. Attorney’s Office for the Middle District of Pennsylvania announced that U.S. Attorney Gerard M. Karam and Assistant U.S. Attorney’s will join community organizers, neighbors, and law enforcement partners to participate in National Night Out events on August 1, 2023.
During this year’s National Night Out, members of the United States Attorney’s Office will attend community events at the following locations:
- Scranton Police Department at Scranton High School from 6:00 p.m. to 9:00 p.m.;
- Harrisburg Bureau of Police at City Island in Harrisburg from 5:30 p.m. to 8:00 p.m.;
- Lebanon City Police Department at the Salvation Army building on Guilford Street in Lebanon from 6:00 p.m. to 8:00 p.m.;
- Derry Township Police Department on the 1st block of West Caracas Avenue in Hershey from 6:00 p.m. to 8:00 p.m.;
- Cornwall Borough Police Department at the park across from the Cornwall Elementary School on SR 419 from 6:00 p.m. to 8:00 p.m.; and
- Lower Allen Township at the Christian Life Assembly Church, Camp Hill from 6:00 p.m. to 8:00 p.m.
“National Night Out is an important and effective way to bridge the gap between neighbors and their police departments in a positive and informal setting,” said U.S. Attorney Gerard M. Karam. “We are pleased to join with our local law enforcement partners and the communities we serve to promote this important program.”
National Night Out is an annual community-building campaign that promotes partnerships and camaraderie between law enforcement and the communities they serve to make our neighborhoods safer places to live. Millions take part in National Night Out across thousands of communities throughout the country on the first Tuesday of August in most areas of the country.
National Night Out was established in 1984 with funding from the Bureau of Justice Assistance of the U.S. Department of Justice. The program is administered by the National Association of Town Watch, a nationwide non-profit organization.
Coordinated by local law enforcement and trained volunteers, National Night Out provides a great opportunity to bring police and neighbors together under positive circumstances. Neighborhoods host block parties, cookouts, festivals, parades, safety demonstrations, seminars, youth events, visits from emergency personnel, and more. National Night Out sends a message that neighbors are united and working together to keep their communities and each other safe.
For more information, visit https://natw.org/.
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U.S. Attorney Jane E. Young to Participate in Manchester Police Department’s National Night Out EventRead the Press Release
U.S. Attorney Jane E. Young will join community organizers, neighbors, and law enforcement partners at Manchester Police Department’s National Night Out on Tuesday, August 1, 2023. The event is scheduled from 5:00pm-8:00pm at the Beech Street School and JFK Coliseum.
“National Night Out is a special night of the year that allows law enforcement and the public a tangible opportunity to build vitally important relationships and mutual trust,” said U.S. Attorney Jane E. Young. “I hope the people of Manchester will join me and my colleagues on Tuesday night to celebrate our partnership as a community.”
National Night Out is an annual community-building campaign that promotes partnerships and camaraderie between law enforcement and the communities they serve to make our neighborhoods safer places to live. Millions take part in National Night Out across thousands of communities throughout the country on the first Tuesday of August in most areas of the country.
National Night Out was established in 1984 with funding from the Bureau of Justice Assistance of the U.S. Department of Justice. The program is administered by the National Association of Town Watch, a nationwide non-profit organization.
Coordinated by local law enforcement and trained volunteers, National Night Out provides a great opportunity to bring police and neighbors together under positive circumstances. Neighborhoods host block parties, cookouts, festivals, parades, safety demonstrations, seminars, youth events, visits from emergency personnel, and more. National Night Out sends a message that neighbors are united and working together to keep their communities and each other safe.
For more information, visit https://natw.org/.
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U.S. Attorney Dena J. King Appointed as Chair of the Attorney General's Subcommittee on Civil RightsRead the Press Release
CHARLOTTE, N.C. – United States Attorney Dena J. King has been selected to serve as Chair of the Civil Rights Subcommittee of the Attorney General’s Advisory Committee (AGAC) of U.S. Attorneys.
Since 1973, the AGAC has advised the Attorney General on matters of policy, procedure, and management impacting U.S. Attorneys’ Offices and represents the views of federal prosecutors across the country.
As Chair of the Civil Rights Subcommittee, U.S. Attorney King will spearhead the efforts of the Subcommittee to guide the AGAC on critical civil rights issues. U.S. Attorney King will also work with all 94 U.S. Attorneys’ Offices to provide leadership and make recommendations to the Attorney General and the Department of Justice through the AGAC, related to the protection and enhancement of the civil and constitutional rights of all people in the United States, with a special focus on our country’s most vulnerable populations.
“It is a great honor to serve as Chair of the AGAC’s Civil Rights Subcommittee,” said U.S. Attorney King. “I am looking forward to working collaboratively with my colleagues to continue to champion the Department’s efforts to advance civil rights, strengthen community trust, remove barriers to justice and fairness, and enhance inclusion and equal treatment for everyone in our society.”
U.S. Attorney King will continue to serve as a member of the Native American Issues Subcommittee (NAIS), which she previously chaired, and the Subcommittees for Violent and Organized Crime, and Law Enforcement Coordination, Victim Assistance and Community Relations.
Two North Alabama Defendants Sentenced on Child Exploitation ChargesRead the Press Release
HUNTSVILLE, Ala. – Two North Alabama defendants were sentenced last week on child sexual exploitation charges, announced U.S. Attorney Prim F. Escalona and U.S. Immigration and Customs Enforcement Homeland Security Investigations Acting Special Agent in Charge Travis Picard.
U.S. District Court Judge Liles C. Burke sentenced two defendants in separate and unrelated cases.
“The sexual abuse and commercial exploitation of children is among the most serious crimes prosecuted by my office,” U.S. Attorney Escalona said. “The creation and distribution of digital images of child sexual abuse perpetuates a criminal industry that is incredibly destructive to both the victims and consumers of this material. The prosecution of these defendants is part of the ongoing commitment of my office, and that of our federal, state, and local partners, to identify and prosecute child predators. I am grateful for the work of all involved in bringing these two defendants to justice.”
“Finding and arresting predators involved in victimizing and exploiting children is one of our highest priorities,” said Acting Special Agent in charge Travis Pickard who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “These sentences are a testament to HSI’s and its law enforcement partner’s commitment to protecting our most vulnerable population from exploitation as well as holding those violators accountable.”
Jeremy Michael Lee Powell, 25, of Athens, was sentenced to 600 months in prison followed by lifetime of supervised release. In April 2023, Powell pleaded guilty to two counts of production of child pornography. According to court documents, Powell befriended the minor children’s mother and engaged in sexual acts with her seven- and eight-year-old children. Powell told the children to keep it a secret. Powell knew the mother needed childcare assistance, so he conveniently offered to assist with the children while the mother worked. Powell also took full advantage of the fact that the children’s father was not in contact with them and swayed the children into calling him “da-da.” Law enforcement discovered 47 sexually explicit images involving the children on Powell’s cell phone.
Becky Lynn Burroughs, 46, of Decatur was sentenced to 260 months in prison followed by lifetime of supervised release. Burroughs pleaded guilty to distribution of child pornography and possession of child pornography on April 27, 2023. According to the plea agreement, Florida investigators identified an account distributing child pornography in an internet chatroom. Investigation revealed that the account belonged to Burroughs. Between March 2021 and September 2021, Burroughs uploaded at least 11 videos, as well as numerous images, of child pornography to the internet. On September 1, 2021, a search warrant was obtained for Burrough’s residence in Decatur, Alabama, and agents seized Burrough’s phone. A forensic review of the cell phone located 10 child sex abuse images and videos.
HSI - Birmingham investigated the Jeremy Powell case, along with the Limestone County Sheriff’s Office. Assistant U.S. Attorneys R. Leann White, Daniel McBrayer, and William McComb prosecuted Powell.
HSI – Birmingham investigated the Becky Burroughs case, along with HSI – Tallahassee, the Leon County, Florida Sheriff’s Office, and the Alabama Law Enforcement Agency. Assistant U.S. Attorney John M. Hundscheid prosecuted Burroughs.
These cases were brought as part of Project Safe Childhood, a nationwide initiative launched by the Department of Justice in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
St. Michael Woman Pleaded Guilty to Three Counts of Involuntary ManslaughterRead the Press Release
Fargo – United States Attorney Mac Schneider announced that on July 27, 2023, Trina Lily Hunt, age 20, of St. Michael, ND, pleaded guilty before Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, to three counts of Involuntary Manslaughter and one count of Assault Resulting in Serious Bodily Injury.
On August 11, 2021, Bureau of Indian Affairs patrol officers responded to a call of a two-vehicle crash along Heart Road on the Spirit Lake Reservation. Hunt was driving one of the vehicles and had two passengers. A second driver, Winter Skye Bigtrack, was driving a vehicle and had four passengers. Of those passengers, two fatalities were identified at the scene – an adult male and a juvenile male. A third passenger, a minor female, later died. A fifth passenger, another minor female, suffered injuries that required her to be transported to Fargo for treatment where she was admitted to the intensive care unit.
The investigation revealed that both Hunt and Bigtrack were driving recklessly, without licenses, while under the influence of intoxicating liquor and a controlled substance at high speeds exceeding the posted speed limit. Bigtrack previously pled guilty and was sentenced to serve 57 months in prison followed by three years of supervised release.
Sentencing of Hunt is scheduled for November 7, 2023, at 2:30 PM.
This case was investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs, and the North Dakota Highway Patrol, and the case was prosecuted by the United States Attorney’s Office, with Assistant United States Attorney Lori H. Conroy assigned to the case.
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Springfield Business Owner Pleads Guilty to $14 Million Fraud SchemeRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., business owner has pleaded guilty in federal court to his role in a nearly $14 million wire fraud conspiracy that utilized his businesses, as well as fake businesses, to fraudulently receive loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
John Michael Felts, 48, waived his right to a grand jury and pleaded guilty before U.S. Chief Magistrate Judge David P. Rush on Friday, July 28, to a federal information that charges him with one count of conspiracy to commit wire fraud and one count of wire fraud.
Felts was the owner of several restaurants, including Taco Habitat in Springfield and Branson, Mo.
By pleading guilty today, Felts admitted that he participated in a wire fraud conspiracy that fraudulently obtained or attempted to obtain $13,925,534 through commercial loans as well as Paycheck Protection Program loans and Economic Injury Disaster loans and grants under the CARES Act from January 2018 to Sept. 13, 2022.
The purpose of the CARES Act was to provide emergency financial assistance due to the economic impact caused by the COVID-19 pandemic. The CARES Act authorized the Small Business Administration to provide low-interest Economic Injury Disaster Loans to eligible small businesses that experienced substantial financial disruption due to the economic impact of the COVID-19 pandemic. Additionally, the Paycheck Protection Program (PPP) authorized forgivable loans to small businesses to retain workers and maintain payroll, and make mortgage interest payments, lease payments, and utility payments. Under the PPP, both the principal and interest on those loans were eligible for forgiveness.
Felts and another person, a San Antonio, Texas, resident identified in court documents as “Individual-1,” applied for PPP loans and Economic Injury Disaster loans and grants for various businesses they controlled. The conspirators made material misrepresentations about the businesses in the applications, including the purpose of the funding, and submitted fake and forged documents as a part of the application process.
Felts and Individual-1 also created fake businesses that they controlled, under fake identities they created. The conspirators then used these fake businesses and identities, as well as false financial and business documents, to apply for loans.
Felts did not utilize the loan proceeds for the purpose he represented to the lenders in the application process. Instead, he utilized proceeds for his own personal benefit (including vehicles, a yacht, jewelry, rare sports cards, and construction related to personal residences) and for the benefit of other businesses he controlled.
According to a parallel federal civil complaint filed on Sept. 13, 2022, Felts applied for 12 PPP loans using several different companies under his ownership or control. Most of these companies did not have employees and were not in operation at the time of application. Felts also applied for 13 PPP loans using synthesized or fabricated identities and companies under his control.
$2 Million Fraudulent Diagnostic Equipment, Inc., Loans
For example, in January 2020 Felts and Individual-1 set up a business, Diagnostic Equipment, Inc., for the purpose of representing it as a legitimate business, when in fact it was not and did not have any business operations. On April 26, 2020, they submitted a fraudulent PPP loan application for Diagnostic Equipment. Felts, using a fake identity, submitted false materials in support of the PPP loan application, such as false tax statements and payroll summaries. On June 18, 2020, they applied for an EIDL in the name of Diagnostic Equipment.
After receiving $1,029,100 in PPP and EIDL proceeds, Felt spent $157,000 of the proceeds to pay off a personal real estate loan, spent $39,000 to pay off a loan for a 2018 Cadillac CT6, spent $40,000 to pay off a loan for a 2018 Jeep Wrangler (which he gave as a gift to a relative), and spent $5,000 to make a down payment for the purchase of personal real estate.
On April 25, 2021, Felts submitted a fraudulent PPP loan application for Diagnostic Equipment for a second round of PPP loans. Felts received $1,054,494 in PPP loan proceeds and spent $150,000 for a corporate suite sponsorship with the Kansas City Chiefs, spent $213,000 to pay a loan on a 2021 Galeon 470SKY Yacht, spent $30,000 for construction on his personal residence, and spent $12,180 on sports memorabilia.
$310,000 Fraudulent Taco Habitat Loan
In May 2020, Felts and Indivdiual-1 submitted a PPP loan application for Taco Habitat in Branson. This application contained material misrepresentations, including the number of employees for the business.
After Felts received $310,000 in PPP proceeds for Taco Habitat in Branson, he spent $58,594 to purchase a 2020 Jeep Wrangler (which he gave as a gift to another individual) and spent $125,707 for the purchase of personal real estate.
Under the terms of today’s plea agreement, Felts must pay restitution in excess of $9.9 million and a money judgment in an amount to be determined at sentencing, but not less than of $7 million, which represents the amount of fraudulent proceeds he actually received from the conspiracy.
Felts also agrees not to contest the government’s forfeiture of personal property and real estate purchased with the proceeds of the wire fraud conspiracy in two civil forfeiture complaints filed on Sept. 13, 2022, and Jan. 26, 2023. That property includes four parcels of real estate in Springfield, six vehicles, a yacht, two Rolex watches, five additional pieces of valuable jewelry, a 1952 Topps Jackie Robinson baseball card, a 1980-1981 Topps Larry Bird, Julius Erving, and Magic Johnson card (signed by all three players), and a 1909-1911 Ty Cobb baseball card.
Under federal statutes, Felts is subject to a sentence of up to 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This criminal case is being prosecuted by Assistant U.S. Attorney Casey Clark and the civil case is being handled by Assistant U.S. Attorney Anthony M. Brown. Both the criminal and civil cases were investigated by IRS-Criminal Investigation.
Shreveport Man Sent to Federal Prison for Illegal Possession of a Machine GunRead the Press Release
SHREVEPORT, La. – Cartavious Cursshuan Pouncy, 21, of Shreveport, Louisiana, was sentenced in U.S. District Court today, announced United States Attorney Brandon B. Brown. United States District Judge Elizabeth E. Foote sentenced Pouncy to 20 months in prison, followed by 3 years of supervised release for illegal possession of a machine gun. Pouncy pleaded guilty to the charge on March 16, 2023.
Shreveport Police Department officers stopped a Dodge Challenger with no tags near the intersection of Hearne Avenue and Corbitt Street on May 15, 2022. Pouncy was driving the Dodge Challenger and two other individuals were inside. Officers detected a strong odor of marijuana coming from inside the vehicle and all of the occupants were asked to exit the vehicle. Pouncy was asked if there were narcotics or firearms inside the vehicle and he initially stated there were not. A search of the vehicle was conducted, and officers did in fact locate a Panther Arms AR Pistol, Model: DPMS, with two magazines, loaded with 63 rounds of ammunition behind the driver’s seat. Pouncy admitted post-Miranda that the firearm belonged to him, and he had purchased it a few days prior.
Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) examined the firearm and discovered that it had a drop-in auto sear, a conversion device, inserted inside to make it a fully automatic machine gun. A record search was conducted of the National Firearm Registration and Transfer Record (NFRTR) and Pouncy had not registered the Panther Arms AR Pistol or any other weapon.
The case was investigated by the ATF and Shreveport Police Department and prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
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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Scituate Man Previously Convicted and Incarcerated on Federal Child Pornography Charges Pleads Guilty to Possessing Child PornographyRead the Press Release
PROVIDENCE – A North Scituate man currently serving a term of lifetime federal supervised release that followed his term of incarceration of 84 months, having been convicted in May 2009 on charges of possessing and distributing child pornography, today pleaded guilty to an unrelated charge of possession of child pornography, announced United States Attorney Zachary A. Cunha.
Brian Murphy, 53, admitted that he was in possession of images and videos of child erotica discovered by a Homeland Security Investigations agent and a Federal Probation officer during an unscheduled visit to his residence in August 2022 and examination of electronic devices belonging to him, as permitted by the terms of his supervised release.
According to charging documents, in April 2022, the National Center for Missing and Exploited Children notified the Rhode Island State Police Internet Crimes Against Children Task Force that a user of a social media messenger platform had uploaded images of child erotica. An investigation by the ICAC Task Force determined that the IP address used to access the child pornography was assigned to a North Scituate business located on the ground floor of a multi-residence building in which Murphy resided. Murphy admitted to the court today that he used the business’ Wi-Fi service to access and download the child erotica.
Murphy is scheduled to be sentenced on November 1, 2023. The defendant’s sentence will be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney Milind M. Shah.
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Schenectady Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
ALBANY, NEW YORK – Terence Wilson, age 40, of Schenectady, New York, pled guilty today to five counts of sexual exploitation of a child. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of his guilty plea, Wilson admitted that he sexually exploited a child from the time the child was approximately 8 years old until the child was approximately 15 years old and that he created approximately 50 videos depicting the abuse.
Under the parties’ plea agreement, at sentencing on November 9, 2023 before Chief United States District Judge Brenda K. Sannes, Wilson faces an imprisonment term of at least 25 years and up to 35 years, a fine of up to $250,000, restitution to the victim, and a post-imprisonment term of supervised release of between 5 years and life. Wilson also will have to register as a sex offender upon his release from prison.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state and local law enforcement agencies, including the New York State Police. Former Assistant United States Attorney Rachel L. Williams and Assistant United States Attorneys Michael D. Gadarian and Adrian LaRochelle prosecuted this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Russell Laffitte to Be Sentenced in Federal Court for Conspiracy, Wire Fraud, Bank Fraud, and Misapplication of Bank FundsRead the Press Release
CHARLESTON, SOUTH CAROLINA — Russell Lucius Laffitte, 53, of Estill, is scheduled to be sentenced in federal court on Tuesday, August 1. Laffitte was convicted following a nearly three-week-long jury trial in November 2022 of conspiring with Hampton personal injury attorney Alex Murdaugh to commit wire fraud and bank fraud; wire fraud; bank fraud; and three counts of misapplication of bank funds.
United States District Judge Richard M. Gergel presided over the trial and will impose the sentence.
WHEN: Tuesday, August 1, 2023, at 10:00 am
WHERE: United States District Courthouse
Courtroom 6
85 Broad Street
Charleston, South Carolina
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Rosebud Man Sentenced for Prohibited Person in Possession of a FirearmRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Rosebud, South Dakota man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on July 31, 2023.
Isaiah Lucas Beck, age 20, was sentenced to two years and ten months in prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. He was also ordered to forfeit multiple firearms involved in the matter.
Beck was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in February of 2023. He pleaded guilty on May 1, 2023.
On August 31, 2022, Beck had a verbal confrontation with his father on Highway 83, south of Mission, South Dakota. During the argument, Beck’s father removed a Smith & Wesson pistol and a Del-Ton Incorporated rifle from Beck’s possession. The firearms belonged to Beck, who was an unlawful user of a controlled substance, thus prohibited from possessing any firearms. Both firearms were identified as being shipped and transported in interstate commerce and foreign commerce.
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 Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Beck was immediately remanded to the custody of the U.S. Marshals Service.
Real Estate Developer Sentenced for Investment Fraud, Bank Fraud, Money Laundering, and Tax Evasion SchemesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ROBERT V. MATTHEWS, 65, of Palm Beach Gardens, Florida, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 65 months of imprisonment, followed by three years of supervised release, for conspiracy, money laundering, and tax evasion offenses related to multiple schemes that defrauded investors and financial institutions out of tens of millions of dollars.
According to court documents and statements made in court, Matthews was a real estate developer in charge of The Palm House Hotel (“PHH”), a property that he sought to develop in Palm Beach, Florida. Matthews maintained residences in both Florida and Connecticut.
The EB-5 visa program is a federal program by which foreign nationals and their families are eligible to apply for lawful permanent resident status (commonly known as a “green card”) if they meet certain requirements by investing in a development project in the U.S. Various entities in the U.S. act as intermediaries between potential foreign investors and investment projects. One such entity, South Atlantic Regional Center, LLC (“SARC”) in Palm Beach, Florida, advertised EB-5 projects to foreign investors, collected funds from foreign investors that were earmarked for certain development projects, and made the funding available to the respective development project.
The PHH was a development project advertised by SARC to EB-5 investors between approximately 2012 and 2014. Robert Matthews purchased the PHH property in August 2006, and then lost the property in foreclosure in 2009. In August 2013, Robert Matthews reacquired control of the property through an entity called Palm House, LLC. However, Robert Matthews’ brother, Gerry Matthews, was listed in incorporation documents as owning 99 percent of Palm House, LLC, and another individual, who had secured additional financing for Robert Matthews, was listed as owning the remaining 1 percent.
Robert Matthews and others defrauded EB-5 investors by representing that funds from EB-5 investors would be used to develop the PHH; that certain well-known individuals would be on the PHH advisory board and certain well-known entertainers, businesspeople, and politicians “will be a part of the club”; and that Gerry Matthews was a member of the Palm House, LLC management team and was the 99 percent owner of the project. EB-5 investors invested in the PHH project by providing money to bank accounts controlled by SARC. SARC, in turn, provided EB-5 money earmarked for PHH use into accounts controlled by Robert Matthews and his associates.
While Gerry Matthews was the nominal 99 percent owner of Palm House, LLC, Robert Matthews controlled the company. In addition, there was no evidence any of the proffered well-known individuals would be on the PHH advisory board or would be members of the club. Robert Matthews and others used EB-5 funding for purposes not related to the PHH project, including for Robert Matthews’ personal gain.
Through this scheme, approximately 61 EB-5 investors lost a total of more than $30 million.
As part of this scheme, Robert Matthews and others moved investor funds through various bank accounts located in Connecticut and Florida. The funds were used to pay Robert Matthews’, and his wife’s, Maria Matthews, credit card debts, and to purchase two properties located in Washington Depot, Connecticut. One of the Washington Depot properties was a property that Robert Matthews had previously lost in foreclosure. Robert Matthews, Nicholas Laudano, and others conspired to purchase the property out of foreclosure by concealing both the relationship between the co-conspirators, and the source of the funds used to purchase the property.
Laudano was a construction contractor who continuously worked on the development of the PHH project between approximately 2006 and 2016. He also has operated several restaurants in Florida and Connecticut.
In addition, Robert and Maria Matthews evaded paying federal income tax they owed for the 2005 and 2007 calendar years in multiple ways, including by using limited liability companies, a company bank account, and their attorney’s trust account to pay for personal expenses. For example, in approximately November 2014, Robert Matthews caused Maria Matthews to execute documents to obtain a loan from an individual. The loan was secured by one of their Washington Depot properties, which, at the time, was in the name of a shell company. The proceeds of this loan were eventually disbursed into an account controlled by Robert and Maria Matthews in the name of Mirabia LLC. Robert and Maria Matthews subsequently used the loan proceeds for personal expenses without paying any of their outstanding tax liability.
This tax evasion scheme resulted in a loss to the Internal Revenue Service of approximately $2.75 million in taxes, interest, and penalties.
The investigation also revealed that, between approximately 2007 and 2009, Robert Matthews conspired with others in a scheme to defraud T.D. Banknorth, N.A. (now TD Bank, N.A.), out of the proceeds of a construction loan by making material misrepresentations to the bank in connection with the development of the Point Breeze Hotel in Nantucket, Massachusetts. At the time Matthews defaulted on the loan, TD Bank was owed approximately $34 million. After TD Bank foreclosed on the loan, it was owed approximately $12 million. In June 2010, Matthews conspired with others in a scheme to defraud TD Bank out of its ability to foreclose on another parcel of property in Nantucket owned by Matthews and recover the $12 million dollar debt.
Finally, between approximately December 2010 and January 2013, Robert Matthews conspired with others to defraud JP Morgan Chase Bank N.A. by misappropriating insurance proceeds earmarked for repair of one of his Washington Depot properties.
On April 25, 2019, Robert Matthews pleaded guilty to conspiracy to commit bank fraud and wire fraud, making illegal monetary transactions, and tax evasion.
Matthews, who is released on bond, is required to report to prison on October 23.
Restitution will be determined after additional court proceedings.
On April 25, 2019, Maria Matthews, also known as Mia Matthews, pleaded guilty to tax evasion. She awaits sentencing.
On March 7, 2018, Gerry Matthews, pleaded guilty to conspiracy to commit wire fraud. He also awaits sentencing.
On March 12, 2018, Laudano pleaded guilty to conspiracy to commit bank fraud, and to making illegal monetary transactions. On June 4, 2023, he was sentenced to three years of supervised release.
This matter has been investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and David E. Novick.
RGV tax preparers indicted for filing over two dozen false tax returnsRead the Press Release
McALLEN, Texas – Three local residents have been charged in a 27-count indictment alleging losses of more than $300,000 to the IRS, announced U.S. Attorney Alamdar S. Hamdani.
Elizabeth Romo turned herself in today and is expected to make her initial appearance this morning in McAllen. Authorities took Maria Lourdes Campos and Gloria Romo into custody last week.
The indictment, returned July 11 and unsealed in its entirety today, alleges Campos, Elizabeth Romo and Gloria Romo knowingly submitted dozens of fraudulent tax returns to the IRS in order to garner larger tax breaks for her clients.
The three women allegedly prepared Forms 1040 containing fraudulent Schedules A and C with false residential energy, child and dependent care expense credits. The charges allege the false and or inflated deductions occurred on client tax returns for tax years 2017 through 2020. Campos Tax Services’ clients received a larger refund than they were entitled to receive or paid a lesser amount of taxes owed to the IRS, according to the indictment.
As a result of the scheme, all three allegedly caused a total loss to the IRS of over $300,000 over the course of four years.
If convicted, they each face up to five years in prison and a possible $250,000 maximum fine.
IRS - Criminal Investigation conducted the investigation. Assistant U.S. Attorney Eric D. Flores and Cahal McColgan are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Pontiac Man Involved in Violent Robberies Appears in Federal CourtRead the Press Release
DETROIT – A Pontiac man was indicted by a federal grand jury on charges of Interference with Commerce by Robbery, Use of a Firearm in Relation to a Crime of Violence and being a Felon in Possession of a Firearm relating to an armed robbery and attempted armed robbery which occurred in the city of Pontiac, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Special Agent in Charge James Deir of the ATF’s Detroit Division and Sheriff Michael Bouchard of the Oakland County Sheriff’s Office.
Christopher Bey, 48, appeared in federal court this afternoon and was arraigned on the charges before United States Magistrate Judge Kimberly G. Altman.
“Removing violent offenders from our community is one of my office’s top priorities,” stated U.S. Attorney Dawn Ison. “We will not stop being laser focused on aggressively prosecuting dangerous individuals who persist in terrorizing our citizens.”
“Use an illegal firearm to rob 2 stores and discharge that firearm, and the ATF will exhaust every resource to identify you and to hold you accountable for gun violence. The message is simple: Actions have consequences. If you use an illegal firearm to commit gun violence in our community…. pack a lunch. You are going to be unavailable for an extended period of time,” said ATF Special Agent in Charge James Deir.
“We appreciate the teamwork with our federal partners and the U.S. Attorney’s Office. If you are a violent criminal, we will work tirelessly to hold you accountable and do everything in our power to keep our community safe,” said Sheriff Bouchard. “Working together magnifies resources and increases the opportunity for successful prosecution.”
According to the indictment, Bey is alleged to have robbed a Boost Mobile store in the city of Pontiac on February 4, 2023. After entering the store, Bey allegedly brandished a firearm and demanded money from the store employee. During the robbery, Bey fired the weapon twice.
The indictment also alleges that on March 24, 2023, Bey attempted to rob a Dollar General Store in the city of Pontiac. Bey handed a store employee a note while pointing a gun at him. Bey then ordered the employee to the back of the store and directed him to handcuff himself.
Bey was also charged with felon in possession of a firearm. The indictment alleges that, during the robbery investigations, law enforcement observed Bey’s social media posts of himself holding a firearm with his face obscured by a ski mask. Law enforcement was able to use other images from his social media accounts to determine Bey’s identity.
On July 26, 2023, the Pontiac Gun Violence Task Force (GVTF), assisted by, Oakland County Sheriff’s Office K9 Unit, Customs Border Protection - Aviation Enforcement, and the Detroit Police Department, arrested Christopher Lee Bey. Bey has been in custody since that arrest.
The GVTF was established by the ATF and the Oakland County Sheriff’s Office. The GVTF is tasked with investigating the unlawful possession of firearms and the use of firearms to commit violent crimes within Pontiac, Oakland County, and the Eastern District of Michigan.
An indictment is only a formal charging document and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This case is being prosecuted by Assistant United States Attorney Nicholas McIntyre and Matthew Roth.
Pine Ridge Man Indicted for Abuse and AssaultRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Pine Ridge, South Dakota, man for Aggravated Sexual Abuse, Assault with a Dangerous Weapon, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Corey Yankton, Sr., age 36, was indicted in July of 2023. He appeared before U.S. Magistrate Judge Daneta Wollmann on July 26, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, mandatory minimum of five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Yankton sexually abusing and assaulting a female at Wolf Creek in March of 2023.
The charges are merely accusations and Yankton is presumed innocent until and unless proven guilty.
This matter is being prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in Federal court as opposed to State court.
The investigation is being conducted by the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Anna Lindrooth is prosecuting the case.
Yankton was released on bond pending trial. A trial date has been set for October 3, 2023.
Pierre Man Sentenced for Prohibited Person in Possession of a FirearmRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Pierre, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on July 31, 2023.
Devin Alexander Rosenblum, age 28, was sentenced to two years in prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. He was also ordered to forfeit interest in a Sturm, Ruger & Company pistol involved in the matter.
Rosenblum was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in January of 2023. He pleaded guilty on March 16, 2023.
On October 26, 2022, the South Dakota Board of Pardons and Paroles issued an absconder warrant for Rosenblum. The Dakota Territory Fugitive Task Force adopted the warrant and arrested Rosenblum in Pierre on November 1, 2022. A bag in Rosenblum’s possession was searched and revealed a black Sturm, Ruger & Company Incorporated pistol. Rosenblum admitted the pistol belonged to his roommate and that he took it without permission. Rosenblum is precluded from possessing any firearms due to prior felony convictions. The pistol was identified as being shipped and transported in interstate commerce and foreign commerce.
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 U.S. Marshals Service, South Dakota Division of Criminal Investigation, Pierre Police Department, Hughes County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Rosenblum was immediately remanded to the custody of the U.S. Marshals Service.
Operators of Florida Labor Staffing Companies Sentenced to Prison for Tax and Immigration ChargesRead the Press Release
MIAMI – The operators of several Key West, Florida, labor staffing companies, including PSEB Services JD, Inc., Paradise Hospitality Solutions LLC, Paradise Hospitality Group LLC, Paradise Hospitality Inc. and HBSM Corp. were sentenced to prison today for tax and immigration-related crimes.
According to court documents and statements made in court, at various times between Jan. 2014 and Nov. 2020, Eka Samadashvili, Davit Pavliashvili, and others helped run a series of labor staffing companies that facilitated the employment of non-resident aliens in hotels, bars, and restaurants in Key West and elsewhere who were not authorized to work in the United States. These labor staffing companies did not withhold federal income and Social Security and Medicare taxes from workers’ wages and did not report said wages to the IRS.
Eka Samadashvili was sentenced to 36 months in prison for conspiring to harbor aliens and induce them to remain in the United States and conspiring to defraud the United States. In addition to the term of imprisonment, U.S. District Court Judge Jose E. Martinez ordered Samadashvili to serve three years of supervised release and to pay approximately $8,473,785.69 in restitution to the United States.
Davit Pavliashvili was sentenced to 18 months in prison for conspiring to harbor aliens and induce them to remain in the United States and filing a false federal tax return with the IRS. The court also ordered Pavliashvili to serve three years of supervised release and to pay approximately $16,925.31 in restitution to the United States.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami, and Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
HSI Miami and IRS-CI Miami investigated the case.
Senior Litigation Counsel Christopher Clark for the Southern District of Florida and Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft, Nicholas J. Schilling Jr., Matthew C. Hicks and Wilson Rae Stamm of the Justice Department’s Tax Division prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-10003.
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Operators of Florida Labor Staffing Companies Sentenced to Prison for Tax and Immigration ChargesRead the Press Release
The operators of several Key West, Florida, labor staffing companies, including PSEB Services JD, Inc., Paradise Hospitality Solutions LLC, Paradise Hospitality Group LLC, Paradise Hospitality Inc. and HBSM Corp. were sentenced to prison today for tax and immigration-related crimes.
According to court documents and statements made in court, at various times between Jan. 2014 and Nov. 2020, Eka Samadashvili, Davit Pavliashvili, and others helped run a series of labor staffing companies that facilitated the employment of non-resident aliens in hotels, bars and restaurants in Key West and elsewhere who were not authorized to work in the United States. These labor staffing companies did not withhold federal income and Social Security and Medicare taxes from workers’ wages and did not report said wages to the IRS.
Eka Samadashvili was sentenced to 36 months in prison for conspiring to harbor aliens and induce them to remain in the United States and conspiring to defraud the United States. In addition to the term of imprisonment, U.S. District Court Judge Jose E. Martinez ordered Samadashvili to serve three years of supervised release and to pay approximately $8,473,785.69 in restitution to the United States.
Davit Pavliashvili was sentenced to 18 months in prison for conspiring to harbor aliens and induce them to remain in the United States and filing a false federal tax return with the IRS. The court also ordered Pavliashvili to serve three years of supervised release and to pay approximately $16,925.31 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Markenzy Lapointe for the Southern District of Florida made the announcement.
Homeland Security Investigations and IRS-Criminal Investigation investigated the case.
Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft, Nicholas J. Schilling Jr., Matthew C. Hicks and Wilson Rae Stamm of the Justice Department’s Tax Division and Senior Litigation Counsel Christohper Clark for the Southern District of Florida prosecuted the case.
Norwalk Man Pleads Guilty to Child Pornography OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JAKE SCOTT FLEWELLYN, 26, of Norwalk, pleaded guilty today in Bridgeport federal court to a charge related to accessing and possessing images and videos depicting child sex abuse.
According to court documents and statements made in court, in December 2021, the National Center for Missing and Exploited Children ("NCMEC") received a report from the smartphone messenger application Kik about a Kik user who was distributing videos of child pornography through its service. Kik deactivated the user’s account. In early April 2022, while federal law enforcement was investigating this matter to determine the Kik user’s identity, Kik submitted to NCMEC another report of a user account that was being used to distribute videos of child pornography. The investigation revealed that Flewellyn created both Kik accounts and, between November 2021 and April 2022, used them to distribute approximately 107 images and videos depicting child sex abuse.
Flewellyn pleaded guilty to accessing with intent to view child pornography, an offense that carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Michael P. Shea in Hartford on October 23. Flewellyn is released on a $100,000 bond under electronic monitoring pending sentencing.
This matter has been investigated by the Federal Bureau of Investigation, with the assistance of the Norwalk Police Department. The case is being prosecuted by Assistant U.S. Attorneys Robert S. Dearington and Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Noncitizen sent to prison for firearms chargeRead the Press Release
McALLEN, Texas – A 21-year-old Mexican citizen has been ordered to federal prison following his conviction of being in possession of a firearm while in the United States illegally, announced U.S. Attorney Alamdar S. Hamdani.
Alberto Karr-Magana pleaded guilty May 22.
Today, Chief U.S. District Judge Randy Crane ordered Karr-Magana to serve 30 months in federal prison. At the hearing, the court heard additional evidence that law enforcement found not only a loaded firearm but drug paraphernalia as well. This included a scale with cocaine residue, marijuana and over $4,000 in cash. In handing down the sentence, the court noted Karr-Magana’s lengthy criminal history which included prior drug and firearm convictions. Not a U.S. citizen he is expected to face removal proceedings following his release from prison.
On March 29, law enforcement conducted a traffic stop of a 2016 Dodge Challenger. Karr-Magana was the sole occupant and driver. Authorities approached and detected a strong smell of marijuana emitting from the vehicle.
During a subsequent search of the vehicle, authorities found a loaded Glock, Model 43, 9mm caliber pistol on the driver side between the center console and carpet insulation. Authorities also located marijuana and drug paraphernalia in the vehicle. Karr-Magana admitted he did not have legal status to be in the United States and illegally entered the United States after being removed in 2020. Karr-Magana further claimed ownership of the firearm.
Karr-Magana has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of Alamo Police Department. Assistant U.S. Attorney Alexa D. Parcell is prosecuting the case.
This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
New York Man Pleads Guilty to String of Retail TheftsRead the Press Release
CONCORD – A New York man pleaded guilty today in federal court in Concord to transporting stolen goods across state lines, U.S. Attorney Jane E. Young announced.
Jalil McIntyre, 32, pleaded guilty to Transportation of Stolen Goods. U.S. District Court Judge Paul J. Barbadoro scheduled sentencing for November 6, 2023.
McIntyre and his co-defendant, Deshun Jackson, traveled to Lowe’s and Home Depots across the northeastern United States, including New Hampshire, Massachusetts, Rhode Island, Connecticut, New York, and New Jersey. They stole high-value commercial items, such as circuit breakers. They were seen on surveillance footage grabbing products off shelves, placing them into large plastic bags, and walking out of the stores. In total, they stole $195,604.76 worth of products across 23 separate thefts. They also attempted to steal another $46,619.07 worth of products during 11 additional unsuccessful thefts. The stolen products were brought back to New York, where both McIntyre and Jackson lived.
Jackson is currently in state custody in New York and will be transported by law enforcement to New Hampshire.
The charging statute provides a sentence of no greater than 10 years in prison, 3 years of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Federal Bureau of Investigation led the investigation. Valuable assistance was provided by the Hillsborough County Attorney’s Office, the Rockingham County Attorney’s Office, the Rochester Police Department, the Suffolk County District Attorney’s Office in New York, Seabrook Police Department, Nashua Police Department, Windham Police Department, and Derry Police Department. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
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New Orleans Man Sentenced for Federal Firearms OffenseRead the Press Release
NEW ORLEANS, LOUISIANA – On July 25, 2023, MAURICE BUTLER, age 35, a resident of New Orleans, was sentenced by United States District Court Judge Wendy B. Vitter, announced U.S Attorney Duane A. Evans.
According to court documents, BUTLER previously pleaded guilty to illegally possessing a firearm in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). In May 2022, BUTLER was arrested by St. Bernard Sheriff’s Office deputies when, during the course of a traffic stop, they learned that he was wanted by the New Orleans Police Department for armed robbery. Deputies additionally noticed a Glock Model 17, nine-millimeter semi-automatic pistol (later determined to be stolen) in plain view on the front passenger seat of BUTLER’s vehicle. Further investigation revealed that BUTLER had previous felony convictions which prohibit his possession of a firearm.
Judge Vitter sentenced BUTLER to an 102 month term of imprisonment to be followed by a three (3) year term of supervised release. BUTLER is also required to pay a mandatory $100 special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the St. Bernard Parish Sheriff’s Office, and the New Orleans Police Department and prosecuted by Assistant U.S. Attorney Greg Kennedy of the Violent Crime Unit.
New Orleans Man Pleads Guilty to Federal Gun ChargeRead the Press Release
NEW ORLEANS, LA – DONALD HALE, age 34, of New Orleans, Louisiana, pleaded guilty on July 27, 2023 to possessing a firearm as a convicted felon, in violation of the Federal Gun Control Act, Title 18, United States Code, Sections 922(g)(1) and 924(a)(2), announced United States Attorney Duane A. Evans.
According to court documents, New Orleans Police Department officers were surveilling a high crime area when they observed HALE carrying a concealed weapon. When officers approached HALE, he fled the scene and discarded the firearm. HALE was apprehended and found to be in possession of a second firearm. Further investigation revealed that HALE is a convicted felon, thus prohibiting his possession of a firearm.
HALE faces a maximum term of ten (10) years imprisonment, a fine of up to $250,000.00, up to three (3) years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee. HALE will be sentenced on October 31, 2023.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. The case is being prosecuted by Special Assistant U.S. Attorney Nick Rayburn of the Violent Crimes Unit.
New Orleans Man Indicted for Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – GERARD TURNER, age 20, a resident of New Orleans, Louisiana, was charged on July 28, 2023 in a four-count indictment with violating the Federal Gun Control and Federal Controlled Substances Acts, announced United States Attorney Duane A. Evans.
TURNER is charged in Count 1 with being a felon in possession of a firearm and ammunition in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). He is charged in Count 2 with possession of a machinegun in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2). He is charged in Count 3 with possession with intent to distribute marijuana in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D). He is charged in Count 4 with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A).
As to Count 1, TURNER faces a maximum term of imprisonment of 15 years, up to a $250,000 fine, and up to 3 years of supervised release. As to Count 2, he faces a maximum term of imprisonment of 10 years, up to a $250,000 fine, and up to 3 years of supervised release. As to Count 3, he faces a maximum term of imprisonment of five years, up to a $250,000 fine, and at least two years of supervised release. As to Count 4, he faces a mandatory minimum sentence of five years up to life imprisonment, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release. Each count also carries a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney David Berman of the Violent Crimes Unit is in charge of the prosecution.
New Orleans Man Indicted for Federal Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – CYRIL HOFFMAN, JR., age 24, a resident of New Orleans, Louisiana, was charged on July 20, 2023 in a six-count indictment for violating the Federal Gun Control and Federal Controlled Substances Acts, announced United States Attorney Duane A. Evans. The indictment was unsealed on July 26, 2023.
HOFFMAN is charged in Counts 1 and 4 with possession with intent to distribute marijuana in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D). He is charged in Counts 2 and 5 with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). He is charged in Counts 3 and 6 with receipt of a firearm while under indictment in violation of Title 18, United States Code, Sections 922(n) and 924(a)(1)(D).
As to Counts 1 and 4, HOFFMAN faces a maximum term of imprisonment of five years, up to a $250,000 fine, and at least two years of supervised release. As to Counts 2 and 5, he faces a mandatory minimum sentence of five years up to life imprisonment, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to five years of supervised release. As to Counts 3 and 6 he faces a maximum term of imprisonment of five years, up to a $250,000 fine, and up to three years of supervised release. Each count also carries a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney David Berman of the Violent Crimes Unit is in charge of the prosecution.
New Orleans Man Indicted for Federal Arson, Drug, Firearms and Destructive Devices OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – RICKY WILSON, age 29, a resident of Jefferson, Louisiana, was charged today in a seven-count superseding indictment for arson and violations of the National Firearms Act, Federal Gun Control Act and Federal Drug Control Act, announced U.S. Attorney Duane A. Evans.
WILSON is charged in Count One with arson, in violation of Title 18, United States Code, Section 844(i)(1); in Count Two with possession of destructive devices, identified as incendiary devices known as Molotov cocktails, in violation of Title 26, United States Code, Section 5861(d); in Counts Three and Five with Possession With Intent to Distribute Marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(D); and, in Counts Four and Six with Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, United States Code, Section 924(c)(1)(A).
As to Count One, WILSON faces a term imprisonment of not less than 5 years up to 15 years, a fine of up to $250,000, and up to 3 years of supervised release; as to Count Two, he faces a maximum term of imprisonment of 10 years, up to a $10,000 fine, and up to 3 years of supervised release; as to each of Counts Three and Five, he faces a maximum term of imprisonment of 5 years, up to a $250,000 fine and at least 2 years of supervised release; as to each of Counts Four and Six, he faces a mandatory consecutive term of imprisonment of 5 years up to life imprisonment, up to a $250,000 fine and up to 3 years of supervised release; and, as to Count Seven, he faces a term of imprisonment of up to 10 years, a fine of up to $250,000 and up to 3 years of supervised release. Each count also carries a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Jefferson Parish Sheriff’s Office, and the Jefferson Parish District Attorney’s Office. Assistant United States Attorney Mark A. Miller of the Violent Crimes Unit is assigned the prosecution.
New Jersey Tax Preparer Arrested for Fraudulently Seeking over $124 Million in COVID-19 Employment Tax CreditsRead the Press Release
NEWARK N.J. – A New Jersey tax preparer was arrested today for fraudulently seeking more than $124 million from the IRS by filing over 1,000 false tax forms claiming COVID-19-related employment tax credits, U.S. Attorney Philip R. Sellinger and Acting Deputy Assistant Attorney General Stuart M. Goldberg announced today.
Leon Haynes, 49, of Teaneck, New Jersey, is charged by complaint with eight counts of aiding and assisting the filing of false tax returns and one count of mail fraud. He is scheduled to have his initial appearances this afternoon before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court.
“While our country was fighting the spread of the virus and its profound economic impact, Haynes allegedly scammed the system in a massive scheme to line his own pockets,” U.S. Attorney Philip R. Sellinger said. “As described in the complaint, Haynes abused his position as a tax preparer to steal millions of dollars by submitting over 1,000 false applications for funds set aside to help legitimately struggling businesses. My office and our partners will continue to find and prosecute fraudsters who exploited the pandemic for personal gain.”
“Today’s arrest demonstrates IRS Criminal Investigation and our law enforcement partners commitment to holding accountable those who exploited the pandemic for personal gain,” Tammy Tomlins, Special Agent in Charge of the Newark Field Office, said. “We are committed to rooting out pandemic-related fraud and holding accountable anyone seeking to profit from the public health emergency.”
“This arrest demonstrates our commitment to pursue those who attempt to defraud pandemic-related assistance programs through SSN misuse,” Gail S. Ennis, Inspector General for the Social Security Administration, said. “These programs provided aid to businesses and employees during a crisis; we will continue to collaborate with other law enforcement agencies to investigate those who allegedly misused them for personal and selfish gain,” said “I thank the IRS – Criminal Investigation, and the U.S. Postal Service for their investigative efforts and the U.S. Attorney’s Office for working this case.”
“As many of us suffered through the pandemic, Leon Haynes found a way to line his pockets at our expense,” Christopher Nielsen, Postal Inspector in Charge of the Philadelphia Division, said. “He allegedly filed over $100 million worth of fraudulent tax returns, stealing money from programs designed to support suffering businesses. Working with our colleagues at the IRS Criminal Investigative Division and the United States Attorney’s Office, we have begun the process of holding him accountable for his frauds.”
According to documents filed in this case and statements made in court:
In response to the COVID-19 pandemic and its economic impact, Congress authorized an employee retention tax credit (ERC) that a small business could use to reduce the employment tax it owed to the IRS.
To qualify, the business had to have been in operation in 2020 and to have experienced at least a partial suspension of its operations because of a government order related to COVID-19 (for example, an order limiting commerce, group meetings or travel) or a significant decline in profits. The credit was an amount equal to a set percentage of the wages that the business paid to its employees during the relevant time period, subject to a maximum amount.
Congress also authorized the IRS to give a credit against employment taxes to reimburse businesses for the wages paid to employees who were on sick or family leave and could not work because of COVID-19. This “paid sick and family leave credit” was equal to the wages the business paid the employees during the sick or family leave, also subject to a maximum amount.
From November 2020 to May 2023, Haynes, acting as a tax preparer, repeatedly exploited these programs by preparing and submitting 1,387 false forms to the IRS claiming COVID-related tax credits on behalf of himself and clients. Haynes falsely told his clients that the government was giving out COVID-relief money for businesses and that they were eligible for the money simply because they had a business. Without consulting with his clients, Haynes then submitted forms to the IRS on behalf of their businesses that grossly overstated the number of employees and amount of paid wages. Haynes submitted similarly false forms for three of his own companies. Based on these and other misrepresentations, Haynes fraudulently sought $124.8 million in tax refunds on behalf of his companies and numerous other businesses in his clients’ names.
Based on Haynes’ false claims about his own companies, the U.S. Treasury mailed him multiple tax refund checks totaling more than $1 million. The U.S. Treasury also disbursed at least $31.6 million in tax refunds to Haynes’ clients based on the false tax forms that Haynes submitted. Haynes charged each client up to a 15 percent fee based on the tax refunds the client received from the U.S. Treasury. At Haynes’ request, many clients paid him those fees in cash.
Each count of aiding and assisting in the preparation of false returns carries a maximum penalty of three years in prison and a $250,000 fine. The mail fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.
U.S. Attorney Sellinger credited special agents IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; special agents of the Social Security Administration, Office of the Inspector General, under the direction of Special Agent in Charge Sharon MacDermott, and postal inspectors from the U.S. Postal Service, under the direction of Inspector in Charge Christopher Nielsen, Philadelphia Division, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark and Trial Attorney Samuel B. Bean of the U.S. Department of Justice, Tax Division.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
haynes.complaint.pdfNew Jersey Tax Preparer Arrested for Fraudulently Seeking over $124 Million in COVID-19 Employment Tax CreditsRead the Press Release
A New Jersey tax preparer was arrested today on charges related to fraudulently seeking over $124,000,000 from the IRS by filing over 1,000 tax returns falsely claiming COVID-19-related employment tax credits.
In response to the COVID-19 pandemic and its economic impact, Congress authorized an employee retention tax credit that a small business could use to reduce the employment tax it owed to the IRS, also known as the “employee retention credit” or ERC.
Congress also authorized the IRS to give a credit against employment taxes to reimburse businesses for the wages paid to employees who were on sick or family leave and could not work because of COVID-19. This “paid sick and family leave credit” was equal to the wages the business paid the employees during the sick or family leave, also subject to a maximum amount.
According to court documents, from November 2020 to May 2023, Leon Haynes of Teaneck, New Jersey, allegedly repeatedly exploited a program created to help small businesses impacted by the COVID-19 pandemic. Acting as a tax preparer, Haynes allegedly prepared and submitted approximately 1,387 false forms to the IRS claiming COVID-related tax credits on behalf of himself and clients. The complaint further alleges that Haynes falsely told his clients that the government was giving out COVID-relief money for businesses and that they were eligible for the money simply because they had a business. Allegedly, without consulting with his clients, Haynes then submitted forms to the IRS on behalf of their businesses that grossly overstated the number of employees and amount of wages paid. Haynes allegedly submitted similarly false forms for three of his own companies.
Based on these and other misrepresentations, Haynes’ conduct allegedly sought approximately $124,751,995 in tax refunds on behalf of his companies and numerous other businesses in his clients’ names. The IRS allegedly mailed Haynes multiple tax refund checks totaling $1,007,966 for his own companies and allegedly disbursed a total of $31.6 million in refunds to Haynes’ clients and himself based on the false tax forms that Haynes submitted. The complaint further alleges that Haynes charged many clients a fee of as much as 15% of the refund they received.
If convicted, Haynes faces a maximum penalty of three years in prison for each count of aiding and assisting in the preparation of a false return and 20 years in prison for mail fraud. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Philip R. Sellinger for the District of New Jersey made the announcement.
IRS-Criminal Investigation, Social Security Administration-Office of the Inspector General, and the U.S. Postal Inspection Service are investigating the case.
Trial Attorney Samuel B. Bean of the Justice Department’s Tax Division and Assistant U.S. Attorneys Fatime Meka Cano of the District of New Jersey’s Economic Crimes Unit are prosecuting the case.
A complaint/information is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Monroe County Man Charged with Committing over $2.2 Million in Covid-19 Pandemic FraudRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Brian J. Albelli, age 45, of Stroudsburg, Pennsylvania, and formerly of Deerfield Beach, Florida, was charged in a criminal information on July 27, 2023, with wire fraud and money laundering.
According to United States Attorney Gerard M. Karam, the information alleges that Albelli owned and operated multiple corporate entities in Pennsylvania and Florida. Albelli allegedly filed approximately 20 fraudulent applications for pandemic stimulus funds, including under the Payment Protection Program (PPP), and for Economic Injury and Disaster Loans (EIDLs). The applications allegedly submitted by Albelli were filed on behalf of corporate entities that did not, in fact, have actual business operations, and that bore inflated revenues and employee headcount, and nonexistent gross receipts and costs of goods sold. The applications also included a forged IRS income tax return, and forged federal employment tax documents.
Albelli allegedly obtained in excess of approximately $2,200,000 in PPP and EIDL funds, for himself and his family members, through filing the fraudulent applications. Instead of using the funds on business expenses, Albelli allegedly used them on purchasing boats and automobiles, real estate, retail shopping, and other personal expenses. Albelli also is charged with committing money laundering by concealing the fraudulent proceeds of his crimes.
The PPP and EIDL programs, both funded by the March 2020 CARES Act, were designed to help small businesses facing financial difficulties during the COVID-19 pandemic. PPP funds were offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses. EIDL funds are offered in low-interest rate loans, designated for specific business expenses, such as fixed debts, payroll, and business obligation.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
The case was investigated by the Internal Revenue Service’s Criminal Investigations. Assistant U.S. Attorneys Phillip J. Caraballo and Sean Camoni are prosecuting the case.
The maximum penalties under federal law for both charges are 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Missouri Laboratory Owners Agree to Pay $1.9 Million and Relinquish $7 Million in Escrow in Settlement of Civil Fraud ClaimsRead the Press Release
ST. LOUIS – The owners of a Fenton, Missouri-based clinical testing laboratory have agreed to pay $1.9 million and relinquish another nearly $7 million being held in escrow to settle civil claims alleging that they submitted claims for lab tests that were not medically necessary.
The settlement agreement was signed by Thyroid Specialty Laboratory Inc., which does business as TEN Healthcare (TEN), their management company, 3890 Management LLC, and TEN Marketing, which employs the sales and marketing staff of TEN.
The settlement will resolve allegations that TEN billed for tests that were not medically necessary. The government alleges that from June 12, 2018 to July 3, 2023, TEN falsely represented to medical providers that TEN’s Upper Respiratory Infection (URI) and Urinary Tract Infection (UTI) Polymerase Chain Reaction (PCR) testing panels were reasonable and medically necessary. The government alleges that until about Feb. 10, 2021, TEN used a requisition form that ensured that medical providers did not make an independent medical necessity decision about each laboratory test ordered by including PCR tests that were not medically necessary or reasonable when providers selected a URI or UTI PCR panel. The panel included over thirty pathogens that lacked a common symptomatology and, therefore, did not reasonably require PCR testing to rule out the included pathogens, the government alleges.
Even after Feb. 10, 2021, TEN continued to represent to those providers and to the public that the entire URI and UTI PCR panels were reasonable and superior to other forms of testing, the government alleges.
TEN allegedly falsely submitted claims for payment to Medicare, Medicaid, TRICARE and the Railroad Retirement Board for their URI and UTI PCR panels of tests when they knew or should have known that the tests were not reasonable or medically necessary.
TEN continued to submit claims for payment to Medicare, Medicaid, TRICARE, and the RRB for their URI and UTI PCR panels even after Medicare began rejecting certain billing codes. Rather than deciding to stop billing for those panels or re-evaluate the legitimacy of such panels, TEN selected other billing codes to circumvent the rejections it was receiving from Medicare, the government alleges.
From on Jan. 1, 2016, to March 1, 2021, TEN also allegedly submitted false claims for reimbursement for therapeutic drug assays and specimen validity testing using certain CPT codes at the same time as they submitted claims for reimbursement using a different code that incorporates some of the same tests, the government alleges. TEN was not entitled to the additional reimbursement, but continued to submit these claims even after Medicaid conducted an audit of the TEN Healthcare Entities in 2017 and collected an overpayment in 2019 due to these billing practices, the government alleges.
On May 19, 2020, the Centers for Medicare & Medicaid Services suspended Medicare payments to TEN that now total more than $6.9 million.
“This Settlement Agreement is neither an admission of liability by the TEN Healthcare Entities nor a concession by the United States that its claims are not well founded,” the agreement says.
"Laboratories have a responsibility to ensure that claims they submit to Medicare are for legitimate and medically necessary services," said Curt L. Muller, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). "HHS-OIG is committed to ensuring that providers fulfill that fundamental obligation, and to investigating those who, with reckless disregard for American taxpayers and patients, attempt to waste or defraud federal health care programs."
The case was investigated by HHS-OIG, the Missouri Attorney General’s Medicaid Fraud Control Unit, and the Defense Criminal Investigative Service and the FBI. Assistant U.S. Attorney Amy Sestric handled the case.
Mescalero Man Charged with Assault with a Dangerous Weapon in Indian CountryRead 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 Lestat Cree Valdez made an initial appearance in federal court on a criminal complaint charging him with assault with a dangerous weapon. Valdez, 20, of Mescalero, will remain in custody pending trial.
According to the criminal complaint, the victim was sleeping on the couch in a residence located on the Mescalero Apache reservation when she awoke to being stabbed in the head and chest. A witness heard the victim call for help and observed Valdez striking the victim. The witness chased Valdez from the residence before returning to provide medical assistance to the victim until EMS arrived.
Later that day, Valdez turned himself in to law enforcement. During a subsequent interview, Valdez admitted to ingesting LSD and two unknown drugs and described losing control of his body. Valdez stated that during his acid “trip,” he observed himself stabbing the victim.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Valdez faces 10 years in prison.
This case was investigated by the Las Cruces Resident Agency of the Federal Bureau Investigation with assistance from the Bureau of Indian Affairs. Assistant United States Attorney Eliot Neal is prosecuting the case.
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Mercer County Man Pleads Guilty to Child Exploitation CrimeRead the Press Release
BLUEFIED, W.Va. – Eric Shawn Phillips, 43, of Princeton, pleaded guilty today to enticement of a minor.
According to court documents and statements made in court, from on or about April 19, 2021, to on or about February 17, 2022, Phillips persuaded, induced, enticed and coerced a minor female to engage in sexual activity with him. Phillips admitted that his criminal conduct included sending numerous sexually explicit messages to the minor female via text messaging and social media messaging apps.
Phillips is scheduled to be sentenced on November 13, 2023. Phillips and the United States Attorney’s Office have agreed that a sentence of 30 years in prison and a lifetime of supervised release is the appropriate punishment for his crimes. Phillips must also register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Mercer County Sheriff’s Department.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorneys Julie M. White and Alex Redmon are prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and 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 Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:22-cr-194.
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Martin’s Point Health Care Inc. to Pay $22,485,000 to Resolve False Claims Act AllegationsRead the Press Release
Martin’s Point Health Care Inc. (Martin’s Point), headquartered in Portland, Maine, has agreed to pay $22,485,000 to resolve allegations that it violated the False Claims Act by submitting inaccurate diagnosis codes for its Medicare Advantage Plan enrollees in order to increase reimbursements from Medicare.
Under Medicare Advantage, also known as the Medicare Part C program, Medicare beneficiaries have the option of enrolling in managed care insurance plans called Medicare Advantage Plans (MA Plans). MA Plans are paid a per-person amount to provide Medicare-covered benefits to beneficiaries who enroll in one of their plans. The Centers for Medicare and Medicaid Services (CMS), which oversees the Medicare program, adjusts the payments to MA Plans based on demographic information and the diagnoses of each plan beneficiary. The adjustments are commonly referred to as “risk scores.” In general, a beneficiary with diagnoses more expensive to treat will have a higher risk score, and CMS will make a larger risk-adjusted payment to the MA Plan for that beneficiary.
Martin’s Point operates Medicare Advantage plans for beneficiaries living in Maine and New Hampshire. The United States alleged that, from 2016 to 2019, Martin’s Point engaged in chart reviews of their Medicare Advantage beneficiaries to identify additional diagnosis codes that had not been submitted to Medicare. Many of the additional codes submitted, however, were not properly supported by the patients’ medical records. The government alleged that Martin’s Point nevertheless submitted those diagnosis codes, which resulted in higher payments from CMS.
“The government expects those who participate in Medicare Advantage to provide accurate information to ensure that proper payments are made for the care received by enrolled beneficiaries,” said Deputy Assistant Attorney General Michael D. Granston of the Justice Department's Civil Division, Commercial Litigation Branch. “Today’s result sends a clear message to the Medicare Advantage community that the United States will take appropriate action against those who knowingly submit inflated claims for reimbursement.”
“It is a privilege for health plans to provide services to Medicare beneficiaries, not a right. Medicare Advantage Plan sponsors that submit inaccurate claim information in order to justify inflated payments undermine the financial integrity of the program,” said Deputy Inspector General for Investigations Christian J. Schrank at the Department of Health and Human Services, Office of Inspector (HHS-OIG). “HHS-OIG remains committed to protecting taxpayer-funded health care programs, including Medicare Advantage.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Alicia Wilbur, a former manager in Martin’s Point’s Risk Adjustment Operations group. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Wilbur v. Martin’s Point Health Care Inc., No. 2:18-cv-00254 (DME). As part of today’s resolution, the whistleblower will receive approximately $3.8 million.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Maine, with assistance from HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney J. Jennifer Koh of the Justice Department’s Civil Division and Assistant U.S. Attorneys John Osborn and James Concannon for the District of Maine with the assistance of the U.S. Attorney’s Office’s in-house auditor.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SettlementMarion Man Sentenced to Federal Prison for Conspiring to Distribute CocaineRead the Press Release
A man from Marion, Iowa, was sentenced today to 5 years in federal prison for his involvement in selling cocaine.
Kain Cortez, age 25, from Marion, Iowa, received the prison term after a November 3, 2022 guilty plea to one count of conspiracy to distribute a controlled substance.
Evidence at the plea and sentencing hearings showed that Cheyenne Gonzales and Cortez worked together to sell cocaine in the Cedar Rapids area between April and June 2022. Law enforcement utilized a confidential source to conduct controlled buys of cocaine from Gonzales, and Cortez was present with Gonzales during some of the controlled buys. On June 1, 2022, investigators observed a meeting between Gonzales, Cortez, and two other individuals outside of Gonzales’s and Cortez’s shared residence. On that date, Gonzales and Cortez paid approximately $15,000 in cash for half a kilogram of cocaine and approximately 20 pounds of marijuana.
Cortez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Cortez was sentenced to 60 months’ imprisonment. Cortez must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
On November 14, 2022, Gonzales pled guilty to one count of conspiracy to distribute a controlled substance. Gonzales is scheduled to be sentenced on August 15, 2023.
Cortez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Adam J. Vander Stoep and was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-00054.
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Man Sentenced to Federal Prison After Using Instagram to Illegally Sell Guns, Including to a MinorRead the Press Release
INDIANAPOLIS- Kelvin Henderson, 23, of Indianapolis, Indiana, has been sentenced to 1 year in federal prison after pleading guilty to making a false statement during the purchase of a firearm.
According to court documents, between April 2 and April 26, 2021, Kelvin Henderson visited a federally licensed Indiana firearms dealer at its Indianapolis, Carmel, and Lebanon locations. In total, Henderson purchased six Glock 9mm handguns and one Ruger AR-556. Multiple purchases of identical firearms in a short period of time is indicative of gun trafficking. As part of each purchase, Henderson falsely stated on required federal firearms transaction forms that he was the actual buyer of the firearms. In fact, Henderson illegally purchased the guns on behalf of others, a gun trafficking scheme known as “straw purchasing.”
A straw purchase scheme is when a person not prohibited from purchasing or possessing a firearm falsely states to a federally licensed gun dealer that they are purchasing a firearm for themselves, when they know that the gun is actually intended for someone else, frequently someone who is prohibited from purchasing or possessing the firearm themselves.
Surveillance video from the gun dealer showed Henderson handing one of the firearms he purchased to another person immediately after leaving the store. In an interview with investigators from the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Henderson admitted that he used Instagram to arrange to purchase the guns for two individuals, including one who he stated was a student at an Indianapolis high school and too young to purchase firearms legally.
“Gun traffickers who put deadly weapons in the hands of people with no business having them fuel the epidemic of gun violence in our communities,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Today’s gun traffickers are using Instagram and other social media platforms to illegally put guns in the hands of children and criminals. Together with our partners at ATF we will make our neighborhoods safer by targeting the sources of crime guns and holding illegal gun traffickers accountable.”
“Kelvin Henderson not only illegally purchased firearms, but he did so knowingly risking the lives of minors and the safety of our community. Straw purchasing is not a victimless crime and will not be tolerated,” said Special Agent in Charge Daryl McCormick. “ATF and its law enforcement partners will identify and hold accountable those individuals who continue to contribute to the violence in our cities.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. The sentence was imposed by U.S. District Court Judge, Matthew P. Brookman. Judge Brookman also ordered that Henderson be supervised by the U.S. Probation Office for 1 year following his release from federal prison.
U.S. Attorney Myers thanked Assistant United Stats Attorney Lawrence D. Hilton, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Luzerne County Man Charged with Committing $350,000 in Covid-19 Pandemic FraudRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Daniel Wasielewski, age 58, of Wilkes-Barre, Pennsylvania, was charged on July 28, 2023, in a criminal information with wire fraud.
According to United States Attorney Gerard M. Karam, the information alleges that Wasielewski filed and assisted others in filing fraudulent applications for pandemic stimulus funds, including under the Payment Protection Program (PPP), for Economic Injury and Disaster Loans (EIDLs), and for Pandemic Unemployment Assistance (PUA) benefits. The PPP and EIDL applications allegedly submitted by Wasielewski and his confederates were filed on behalf of corporate entities that did not, in fact, have actual business operations, and that bore false revenues and other business information. The applications also included forged IRS tax documents.
Wasielewski allegedly received approximately $350,000 in PPP, EIDL, PUA, and other fraudulently-obtained funds, for himself and others. Instead of using the funds on business expenses, Wasielewski and others allegedly used them to purchase cryptocurrency and on other personal expenses.
The PPP and EIDL programs, both funded by the March 2020 CARES Act, were designed to help small businesses facing financial difficulties during the COVID-19 pandemic. PPP funds were offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses. EIDL funds are offered in low-interest rate loans, designated for specific business expenses, such as fixed debts, payroll, and business obligation. The PUA program was created by the CARES Act, as part of the United States government’s efforts to mitigate the impact of the COVID-19 pandemic on the public’s health and economic well-being. The PUA program was designed to provide unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
The case was investigated by the United States Postal Inspection Service. Assistant U.S. Attorneys Phillip J. Caraballo and Sean Camoni are prosecuting the case.
The maximum penalties under federal law for the charge of wire fraud is 20 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Long Island Chiropractor Sentenced to Prison for Health Care FraudRead the Press Release
Earlier today, Peter Adamczak, a licensed chiropractor operating in East Meadow, Long Island, was sentenced by United States District Judge Joanna Seybert in federal court in Central Islip to a year and a day in prison for health care fraud. As part of that sentence, Judge Seybert ordered Adamczak to pay nearly $1 million in restitution and to forfeit over $180,000. Adamczak had billed a private insurance company over $1 million for acupuncture services that were never performed. The defendant pleaded guilty to the charge in August 2022.
Breon Peace, United States Attorney for the Eastern District of New York, Christie M. Curtis, Acting Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Lucy Lang, Inspector General of New York State, announced the sentence.
“Today’s sentence demonstrates that Adamczak’s long-running scheme, in which he brazenly submitted false and fraudulent billing claims to an insurance provider, ultimately came at a personal cost to the defendant,” stated United States Attorney Peace. “This Office will continue to hold accountable dishonest healthcare professionals who abuse the trust placed in them by lying and cheating in order to line their own pockets.”
“Health insurance fraud is not a victimless crime as it increases the cost of coverage for those who need it most and wastes precious medical resources,” state New York State Inspector General Lang. “I want to thank the United States Attorney for the Eastern District of New York Breon Peace for delivering justice on this case and to the OIG staff who worked on exposing this audacious scheme.”
From 2016 to 2020, Adamczak submitted over $1 million in fraudulent claims for reimbursement to a private insurance company. Adamczak was not licensed to perform acupuncture but claimed that the services were performed by an unaffiliated acupuncturist who leased office space from Adamczak. In reality, neither the unaffiliated acupuncturist nor Adamczak performed the billed acupuncture services. Based on Adamczak’s fraudulent claims, the private insurance company paid reimbursements to its beneficiaries who, in turn, delivered the payments to Adamczak. In one case, a beneficiary who was a relative of Adamczak, deposited the reimbursement checks to their personal bank account and kept the funds.
Assistant United States Attorney John Vagelatos is in charge of the prosecution. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters.
The Defendant:
PETER ADAMCZAK
Age: 66
Huntington, New YorkE.D.N.Y. Docket No. 22-CR-287 (JS)
Lincoln Man Sentenced to 13 Years for Discharging a Firearm During a Drug CrimeRead the Press Release
Acting United States Attorney Susan Lehr announced that Buongkhoy Daniel Wal, 19, of Lincoln, Nebraska, was sentenced today by Senior United States District Judge John M. Gerrard to 13 years’ imprisonment for discharging a firearm during a drug trafficking crime. Wal was also sentenced to a five-year term of supervised release to be served after he completes his prison sentence. There is no parole in the federal system. Wal pleaded guilty to his offense on March 21, 2023.
On August 2, 2021, police responded to reports of a shooting which occurred near the Edgewood Theaters and Target on the south side of Lincoln. Jayden Prentice, Christopher Duncan, and Riley Mills were present when police arrived. Duncan and Prentice had suffered gunshot wounds. First responders resuscitated Duncan using CPR. All were then transported to the hospital. Duncan and Prentice each spent a month in the hospital being treated for their wounds, and Duncan had to have one of his legs amputated.
The investigation would later reveal that a group of people, including Wal and Xavier Gary, arranged to purchase a half-pound of marijuana from Prentice, Duncan, and Mills. The planned purchase was a ruse for a robbery. Wal and an unknown person got into the back of Duncan’s vehicle. Both Wal and the unknown person were seen carrying firearms. Wal began counting out money. At that time, the unknown person pulled out his gun, said something to the effect of, “this is how this is going to go,” and then shot Prentice in the face. Mills was seated in the backseat next to Wal and the unknown person. Mills and the unknown person began struggling over the gun. Meanwhile, several more gunshots were heard being fired just outside the car. Wal, the unknown person, and the others in their group then fled the scene. In their haste to get away, they dropped one of the firearms, a .45 caliber handgun. Ballistics reports showed that handgun was the weapon which fired the shot that struck Prentice, and it fired at least one of the shots that struck Duncan. A DNA profile was also found on that firearm. The DNA profile was found to contain a mixture of DNA from three people, and it was consistent with Wal and Gary both being contributors.
Gary pleaded guilty to his offense, attempted possession of marijuana with the intent to distribute, on March 21, 2023. Prentice, Duncan, and Mills each pleaded guilty to offenses involving the possession of controlled substances with the intent to distribute, and possession of firearms in furtherance of a drug trafficking offense. On June 24, 2022, Mills was sentenced to a 92-month term of imprisonment, to be followed by a three-year term of supervised release. Prentice was sentenced on July 6, 2022, to a 72-month term of imprisonment, and a three-year term of supervised release. Duncan is scheduled for sentencing on November 7, 2023.
The investigation was conducted by the Lincoln Police Department and the Federal Bureau of 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.
Lexington County Men Plead Guilty in Federal Court to Methamphetamine ConspiracyRead the Press Release
COLUMBIA, SOUTH CAROLINA —Christopher David Jeffcoat, 42, and Kenneth Eddy Frye, 59, both of Lexington, have pleaded guilty in federal court to conspiracy to possess with the intent to distribute 50 grams or more of methamphetamine.
Evidence obtained in the investigation revealed that Jeffcoat and Frye—along with a third defendant, Jerry Lynn Cordell—were involved in distributing methamphetamine in Lexington County. The Lexington County Sheriff’s Department Narcotics Enforcement Team along with the Bureau of Alcohol, Tobacco, Firearms and Explosives began an investigation of the men. Using an undercover agent, they made methamphetamine purchases from the men on seven different occasions, buying amounts ranging from 50 grams up to over 200 grams at a time.
Both men face a maximum penalty of 40 years in federal prison, a fine of up to $250,000, and 4 years of supervision to follow the term of imprisonment. United States District Judge Sherri A. Lydon accepted the guilty pleas and will sentence both men after receiving and reviewing a sentencing report prepared by the U.S. Probation Office.
Cordell previously pleaded guilty to his involvement in the conspiracy and is also awaiting sentencing.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Lexington County Sheriff’s Department NET team. Assistant U.S. Attorney William K. Witherspoon is prosecuting the case.
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L.A. Harbor Area Man Sentenced to 15 Years in Federal Prison for Armed Robbery Spree that Targeted South Bay BusinessesRead the Press Release
LOS ANGELES – A Wilmington man was sentenced today to 180 months in federal prison for committing an armed robbery spree of businesses in the South Bay area of Los Angeles County, during which time he pointed a gun at a pregnant woman working at a gas station.
Stevo Mijanovic, 20, was sentenced by United States District Judge R. Gary Klausner, who also ordered him to pay $2,733 in restitution.
Mijanovic pleaded guilty on March 6 to two counts of Hobbs Act robbery and one count of brandishing a firearm in furtherance of a crime of violence.
From August 2021 to January 2022, Mijanovic robbed six businesses in the Wilmington area of Los Angeles, robbed two other businesses in San Pedro and Torrance, and attempted to rob another business in San Pedro. The victim businesses were restaurants, convenience stores and gas stations and their employees.
“[Mijanovic] committed six armed robberies, one attempted armed robbery, and two robberies in which he brandished what appeared to be a firearm,” prosecutors wrote in a sentencing memorandum. “He terrorized victim employees and bystanders at each location, using fear to obtain money from the victim businesses.”
In December 2021, Mijanovic pointed a firearm at a victim, who was a pregnant gas station employee in Wilmington. The victim “complied out of fear as she told [Mijanovic] she was pregnant and allowed [him] to take approximately $180 from the cash register,” according to Mijanovic’s plea agreement.
Mijanovic admitted to netting between $80 and $1,000 per robbery. He obtained $2,733 during his crime spree.
The FBI and the Los Angeles Police Department investigated this matter.
Assistant United States Attorney Jennifer Chou prosecuted this case.
Knott County Man Sentenced to 150 Months for Armed Methamphetamine TraffickingRead the Press Release
LONDON, Ky. — A Knott County, Ky., man, Michael Nolan Slone, 37, was sentenced on Friday to 150 months in federal prison, by U.S. District Judge Robert Wier, for possession with intent to distribute 50 grams or more of methamphetamine, possession of a firearm in furtherance of drug trafficking, possession of a firearm as a convicted felon, and possessing a firearm with an obliterated serial number.
Slone, who represented himself at trial, was found guilty by the jury following a two-day trial in March. According to the facts introduced at trial, a Kentucky State Police trooper discovered Slone passed out in the driver seat of his vehicle at a gas station in Hindman. The encounter ended with the location of over 100 grams of methamphetamine and two firearms. One firearm was on Slone’s person and the other, an AR-style rifle, was located directly over the methamphetamine, and had the magazines “jungle-stacked” together for quicker reloading capability.
Slone was prohibited from firearm possession due to prior felony convictions for First Degree Burglary and Attempted Murder, which he obtained after shooting two individuals in August of 2010.
Under federal law, Slone must serve 85 percent of his prison sentence. Upon his release from prison, 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; R. Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; and Col. Phillip Burnett, Jr., jointly announced the sentence. The investigation was conducted by the ATF and the KSP.
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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Justice Department Sues Alabama Department of Transportation for Disability Discrimination in HiringRead the Press Release
The Justice Department today filed a lawsuit against the Alabama Department of Transportation (ALDOT) for violating Title I of the Americans with Disabilities Act (ADA). The lawsuit, filed in the U.S. District Court for the Northern District of Alabama, alleges that ALDOT refused to hire an individual because of his physical disability that restricts his ability to lift heavy objects.
According to court documents, the individual worked successfully as a Transportation Maintenance Technician (TMT) at ALDOT for many years. He was injured on the job, resulting in a disability that limits his ability to lift heavy objects. Even with his disability, he continued to work successfully with accommodations at ALDOT for several years. However, the United States alleges, when the individual reapplied to be a TMT after a brief retirement, ALDOT refused to re-hire him because of his disability and instead hired less experienced applicants.
“Qualified people with disabilities must have an equal opportunity to participate in the workforce,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This lawsuit reflects the Justice Department’s ongoing commitment to protect the employment rights of people with disabilities under the ADA.”
Title I of the ADA prohibits employers from discriminating against qualified individuals on the basis of disability. This includes refusing to hire qualified applicants because of their disability, or using selection criteria that screen out qualified applicants that are not job-related or consistent with business necessity.
This case is being handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Alabama based on a referral from the Equal Employment Opportunity Commission.
For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt. Individuals who believe they may have been victims of discrimination may file a complaint at www.civilrights.justice.gov.
ComplaintJury Convicts local man for sex trafficking 15-year-oldRead the Press Release
HOUSTON – A 31-year-old man who resided in Houston has been found guilty for trafficking a minor female for commercial sex using force, fraud or coercion, announced U.S. Attorney Alamdar S. Hamdani.
Jury deliberated for approximately five hours before returning a guilty verdict against Giovanny Xavier Limon aka Ace or Ace One following a three-day trial.
Limon trafficked a 15-year-old minor female for commercial sex during May and June 2022. The girl was forced to engage in commercial sex with strangers on numerous occasions and had to turn over all proceeds to Limon and his associates.
Limon, twice her age, forced her to use meth and photographed her in lingerie he and others had provided. Those photographs, among others, were used to advertise the minor on the internet. The jury saw evidence of how Limon displayed his moniker in the photos used in the commercial sex ads leaving little doubt who was controlling the minor’s actions.
The jury also heard how Limon harbored the minor in several hotels as well as residences his family members controlled.
She testified at trial and described how Limon often carried a knife, supplied her with drugs, tattooed her arm, intimidated her and destroyed her will to live.
“Meth, a gun, and intimidation. Those were the tools Limon used to exploit and traffic a young girl for his own financial benefit– a child who then lost her will for life itself,” said Hamdani. “This conviction ensures he can never do this to another child and sends a message to anyone who wants to use our children for commercial sex – we will find you and bring you to justice.”
The defense attempted to convince the jury that the girl was acting alone and Limon was just a scapegoat so she would not get in trouble at home when she returned. They did not believe those claims and found Limon guilty.
U.S. District Judge David Hittner presided over trial and set sentencing for Oct. 26. At that time, Limon faces up to life in federal prison.
He has been and will remain in custody pending that hearing.
The Human Trafficking Rescue Alliance (HTRA) conducted the investigation.
Assistant U.S. Attorneys Sherri L. Zack and Kimberly Ann Leo prosecuted the case.
HTRA law enforcement includes members of the Houston Police Department, FBI, Homeland Security Investigations, Texas Attorney General’s Office, IRS Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Jonesville Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
BIG STONE GAP, Va. – A Jonesville, Virginia man was sentenced last week to 78 months in prison for conspiring to distribute methamphetamine.
John Joel Foster, 51, who had previously been convicted of illegal possession of a firearm by a convicted felon in 2009, previously pled guilty to one count of conspiracy to distribute and possession with the intent to distribute five grams or more of methamphetamine.
According to court documents, beginning in September 2021, Foster and others conspired to sell crystal methamphetamine in and around Lee County, Virginia.
Foster purchased at least 28 grams of crystal or “ice” methamphetamine from co-conspirator Billy King every few weeks during the course of the conspiracy. King introduced Foster to Garrett Teffeteller, who also routinely supplied methamphetamine to Foster.
King and Teffeteller have pled guilty for their roles in the conspiracy and will be sentenced later this year.
United States Attorney Christopher R. Kavanaugh and Special Agent in Charge Craig B. Kailimai of the Washington Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Virginia State Police, and the Lee County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Lena L. Busscher prosecuted the case.
Justice Department Officials to Participate in National Night Out Events Across the CountryRead the Press Release
****** MEDIA ADVISORY ******
WASHINGTON – Tomorrow, Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco, Associate Attorney General Vanita Gupta, and Justice Department officials will participate in National Night Out (NNO) events across the country as part of a Department-wide effort to bring attention to events that build stronger communities. The Attorney General will attend events in the Philadelphia-area, the Deputy Attorney General will attend events in Nashville, Tennessee, and the Associate Attorney General will attend events in Washington, D.C.
NNO is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, better places to live. In most areas of the country, the program culminates annually on the first Tuesday of August.
Established in 1984 from a Bureau of Justice Assistance (BJA) grant, the goal of NNO is to build relationships with and between communities and law enforcement. NNO enhances the relationship between neighbors and law enforcement while bringing back a true sense of community.
Deputy Attorney General Monaco Events in Nashville
The Deputy Attorney General will attend NNO events in Nashville. She will be joined by U.S. Attorney Henry Leventis for the Middle District of Tennessee and Chief of Police John Drake of the Metropolitan Nashville Department Police Department.
Approx. 3:30 p.m. CT / 4:30 p.m. ET
- Edgehill Apartments Resident Association
- 1277 12th Avenue S, Nashville, TN 37203
Approx. 5 p.m. CT / 6 p.m. ET
- East Park Community Center
- 600 Woodland Street, Nashville, TN 37203
OPEN PRESS
For information on National Night Out events in your community, visit www.natw.org.
For more information on the NNO events, reach out to [email protected] and:
- [email protected] for the Attorney General
- [email protected] for the Deputy Attorney General
- [email protected] for the Associate Attorney General
Greenbrier County Woman Sentenced to Prison for Federal Gun CrimeRead the Press Release
BLUEFIELD, W.Va. – Arica L. Anderson, 37, of Lewisburg, was sentenced today to one year and four months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on January 2, 2022, a law enforcement officer conducted a traffic stop of a vehicle in the Pickaway area of Monroe County in which Anderson was a passenger. The officer saw Anderson try to conceal an Acier Comprime, .25-caliber pistol. Anderson admitted to possessing the firearm.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Anderson was prohibited from possessing a firearm because of her prior felony conviction for conspiracy to commit a felony offense: robbery in the first degree, in Monroe County Circuit Court on September 16, 2013.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the West Virginia State Police.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Andrew D. Isabell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:22-cr-104.
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Gary Man Sentenced to 130 Months in PrisonRead the Press Release
HAMMOND- Kevin Lee Myers, age 42, of Gary, Indiana, was sentenced by United States District Court Senior Judge James T. Moody after pleading guilty to making counterfeit U.S. currency and being a felon in possession of ammunition, announced United States Attorney Clifford D. Johnson.
Myers was sentenced to 130 months in prison followed by 2 years of supervised release.
According to documents in the case, the investigation revealed that from March to July 2022, Myers manufactured more than $150,000 in counterfeit U.S. currency. A search warrant at Myers’ residence resulted in the recovery of counterfeiting equipment including, computers, printers, paper cutters, and ink cartridges, as well as a briefcase containing more than $138,000 in counterfeit bills. Various firearms and ammunition were also discovered. Myers has prior felony convictions and, as such, cannot possess the firearms and ammunition in this case.
The case was investigated by the United States Secret Service with assistance from the Lake County Sheriff’s Department and the Portage Police Department. This case was prosecuted by Assistant United States Attorney Kevin F. Wolff.
Former Omaha Police Officer Sentenced to 36 Years for Production and Possession of Child PornographyRead the Press Release
Acting United States Attorney Susan Lehr announced that Christopher Groth 39, of Gretna, Nebraska, was sentenced today in Lincoln, Nebraska, by Senior United States District Judge John M. Gerrard for one count of production of child pornography and one count of possession of child pornography. Groth was sentenced to 432 months in prison and will serve 20 years on supervised release. There is no parole in the federal system. Groth was additionally ordered to pay a $3,000 special assessment which will contribute to funds established for victims of these types of crimes.
This case initiated in February of 2022 with an investigation by the Federal Bureau of Investigation into several cyber tips from Yahoo! which indicated that Groth was uploading child pornography onto his email accounts. After a search warrant was received it was determined that several of the images located on the account were likely original productions created by Groth involving a child which depicted sexually explicit conduct. A residential search warrant and arrest warrant were executed immediately following this discovery. Groth, who was determined to be a police officer with the Omaha Police Department, was arrested while at work without incident and was very soon after removed from his position with OPD.
A review of Groth’s devices and accounts conducted by the FBI revealed eight images which were produced by Groth on two occasions in 2020 involving a single child victim. Groth emailed these images to himself in February 2021 as a method of saving the files. A search of Groth’s phone and email account revealed more than 700 child exploitation files depicting other unidentified children which he appeared to receive online and subsequently saved using his email account.
“No one is above the law,” said Acting United States Attorney Susan Lehr. “Mr. Groth’s crime was committed against the most vulnerable of our society, a child. The sentence imposed by Judge Gerrard reflects the seriousness of Groth’s conduct and hopefully acts as deterrent for others. The United States Attorney’s Office thanks the FBI for its quick actions in this case as well as OPD for their cooperation and responsiveness.”
After the sentencing, Special Agent in Charge Eugene Kowel said, “In an appalling and heinous way, Christopher Groth violated his sworn oath as a police officer by victimizing children. Today’s sentence ensures that he is held accountable for his actions. Investigating this type of crime is one of the Bureau’s highest priorities and FBI Omaha will remain relentless in our pursuit to protect children from predators.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation.
Florida Man Used Kik Messaging App to Chat with Undercover Albemarle DetectiveRead the Press Release
CHARLOTTESVILLE, Va. – A Florida man, who used the instant messaging application Kik to chat with an undercover Albemarle County detective he thought was a 14-year-old girl, pleaded guilty in federal court to one count of attempted transfer of obscene material to a minor.
William George Price, 65, of Land O’ Lakes, Florida, faces a maximum statutory penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, on February 22, 2021, an undercover detective from the Albemarle County Police Department portrayed himself as a 14-year-old girl named “Ashley” on Kik, an instant messaging application. While on Kik, Price, who called himself “Bill Prince,” told “Ashley” that he was 63-years-old and living in Florida. “Ashley” told Price that she lived in Virginia and was “almost 15.”
The conversation became sexual when Price asked “Ashley” if she liked older men, if she was a virgin, and if she would do a “threesome.” Price then asked if she wanted a picture of him. When “Ashley” responded in the affirmative, Price sent a picture of his penis as well as three videos of himself masturbating.
United States Attorney Christopher R. Kavanaugh, Colonel Sean Reeves, Chief of the Albemarle County Police Department, and Special Agent in Charge Derek W. Gordon of Homeland Security Investigations’ Washington, D.C. Field Office made the announcement.
Any individuals that may have additional information about this case, please contact Detective Mike Wells of the Albemarle County Police, who also serves as a Homeland Security Investigations Task Force Officer.
The Albemarle County Police Department and the Department of Homeland Security Investigations are investigating the case.
Assistant U.S. Attorneys Ronald M. Huber and Jordan E. McKay are prosecuting the case.