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8 September 2023
Two Men Sentenced for $7.6 Million COVID Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A Manassas man and a Bealeton man were sentenced today to a combined 6 years in prison for engaging in a joint scheme to defraud banks and the Small Business Administration of over $7 million in COVID relief funds.
According to court documents, from approximately April 2020 to March 2021, Bennie Earl Magee, 55, falsified payroll records, created fake IRS business tax returns, and submitted to lenders and the SBA falsified revenue reports of multiple companies to obtain over $7 million in PPP and EIDL loans for himself and others. Michael Gilcher, 46, obtained $1.4 million of the total, but wrote checks back to Magee’s company, Bull Run Capital, totaling approximately $620,000. Magee also involved another individual in the scheme and proposed the fraud to yet others. Magee used over $5 million of the PPP fraud proceeds to invest in crypto currency, to purchase vehicles, and to pay other personal and business expenses.
“PPP and EIDL loans were created to assist those financially effected by the COVID-19 pandemic. Mr. Magee and Mr. Glicher not only lied to the IRS and stole millions of taxpayer funds, but frivolously spent it on items such as vehicles and cryptocurrency,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “EDVA will continue to work with the SIGPR and other law enforcement partners to prosecute those who take advantage of all of us.”
Magee was sentenced to 5 years and Gilcher was sentenced to 1 year in prison for their roles in the conspiracy.
“This prosecution and investigation resulted in the sentencing of two individuals responsible for defrauding the taxpayers of millions of dollars by abusing federal programs designed to bring relief to struggling small businesses that were hit hard by the pandemic,” said Brian Miller, the Special Inspector General for Pandemic Recovery. “SIGPR is glad to have played a significant role teaming with the FBI and the United States Attorney’s Office to hold these individuals accountable.”
"At a time when many small businesses were trying to keep their doors open and support their employees, these fraudsters chose to lie and steal from small business relief programs to line their own pockets," said Inspector General Michael E. Horowitz, Chair of the PRAC. "Today's sentencing demonstrates the commitment of the Inspector General community and federal prosecutors to bring to justice those who brazenly stole money from taxpayers. We appreciate the partnership with the investigating agents, the FBI, and U.S. Attorney Aber to protect COVID-19 relief funds for the public."
“Today’s sentencings are an example of the continued commitment of the FBI to identify and hold to account those who engaged in COVID relief fraud,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal and Cyber Division. “Magee and Glicher engaged in a joint scheme to defraud banks and the Small Business Administration of over $7 million in COVID relief funds. Even years after COVID relief funds were distributed, the FBI and our partners continue to investigate these schemes which defrauded the government and stole from taxpayers.”
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Miller, Special Inspector General for Pandemic Recovery (SIGPR); and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
This case was investigated by a SIGPR agent assigned to the Pandemic Response Accountability Committee (PRAC) Fraud Task Force. The PRAC was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 21 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending. The PRAC Fraud Task Force brings together agents from 16 Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program. Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.
Assistant U.S. Attorneys Russell L. Carlberg and Kathleen Robeson prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 1:23-cr-86 and 1:23-cr-91.
Two District Men Charged for September 6, 2023, Murder in Southwest Apartment BuildingRead the Press Release
WASHINGTON – Keshawn Lavender, 22, and Deandre Sams, 27, both of Washington, D.C., were presented in Superior Court yesterday on first degree felony murder while armed charges stemming from the homicide of 32-year-old Matthew Miller on September 6, 2023, in the Wharf neighborhood, in Southwest, Washington, D.C., announced U.S. Attorney Matthew M. Graves.
Lavender and Sams were arraigned before Magistrate Judge Judith Pipe on the charges in Courtroom C-10, D.C. Superior Court, where both entered pleas of not guilty. The court heard arguments and found probable cause to believe that the defendants committed first degree felony murder while armed. The court held the defendants without bond pending a preliminary hearing to be held on September 27, 2023, before Judge Anthony Epstein.
An arrest on a complaint is merely a formally charged allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charge, U.S. Attorney Graves commended the work of those investigating the case from the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office.
Two Brothers Plead Guilty to $7.6M COVID-19 Relief FraudRead the Press Release
Two brothers pleaded guilty yesterday to their participation in a scheme to file fraudulent loan applications seeking approximately $7.6 million in forgivable Paycheck Protection Program (PPP) loans that the Small Business Administration (SBA) guaranteed under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, between April and September 2020, Larry Jordan, 45, of Lancaster, New York, and Sutukh El, aka Curtis Jordan, aka Hugo Hurt, aka Hugo Hermes Hurtington, 41, of Buffalo, New York, conspired to submit eight fraudulent PPP loan applications on behalf of companies they owned or controlled. The defendants submitted three of the applications to Evolve Bank & Trust and five to Lendio, a financial technology company based in Utah. The applications contained false statements about the 2019 payroll expenses of each company, which the SBA used to calculate the amount of PPP funds to which the applicant-companies would be entitled. To corroborate the applications, Jordan and El submitted IRS forms, which they had never filed with the IRS, as well as fraudulent payroll registers that purported to identify the names, personal information, and salary of the employees identified on the PPP applications. The money was then deposited into an account controlled by El, which the brothers used for their own investments, personal expenses, and home improvements.
Jordan and El pleaded guilty to conspiracy to commit bank fraud and wire fraud, which carries a maximum penalty of 30 years in prison and a $1 million fine. Jordan also pleaded guilty to bank fraud, which carries a maximum penalty of 30 years in prison, and engaging in monetary transactions in criminally derived property, which carries a maximum sentence of 10 years in prison. The brothers are scheduled to be sentenced on Jan. 17, 2024. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division; U.S. Attorney Trini E. Ross for the Western District of New York; Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), New York Region; Special Agent in Charge Brian Tucker of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau’s Office of the Inspector General (FRB-CFPB OIG), Eastern Region; Special Agent in Charge Robert Manchak of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), Northeast Region; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Special Agent in Charge Amaleka McCall-Brathwaite of the Small Business Administration Office of Inspector General (SBA-OIG), Eastern Region made the announcement.
The FDIC OIG, FRB-CFPB OIG, FHFA-OIG, FBI, and SBA-OIG are investigating the case.
Trial Attorneys Ariel Glasner and Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Charles Kruly and Grace Carducci for the Western District of New York are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Two Brothers Plead Guilty to COVID Relief FraudRead the Press Release
BUFFALO, NY – U.S. Attorney Trini E. Ross announced today that two brothers, Larry Jordan, 45, of Lancaster, NY, and Sutukh El a/k/a Curtis Jordan a/k/a Hugo Hurt a/k/a Hugo Hermes Hurtington, 41, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to conspiracy to commit bank fraud and wire fraud for their participation in a scheme to file fraudulent loan applications seeking forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The charge carries a maximum penalty of 30 years in prison and a $1,000,000 fine. In addition, Jordan pleaded guilty to bank fraud, which carries a maximum penalty of 30 years in prison and engaging in monetary transactions in criminally derived property, which carries a maximum sentence of 10 years in prison.
According to court documents, between April and September 2020, Jordan and El conspired to submit eight fraudulent PPP loan applications on behalf of companies they owned or controlled. Three of the applications were submitted to Evolve Bank & Trust and the other five were submitted to Lendio, a financial technology company based in Utah. The applications contained false statements about the 2019 payroll expenses of each company, which were used to calculate the amount of PPP funds to which the applicant-companies would be entitled. To corroborate the applications, Jordan and El submitted IRS forms, which had never been filed with the IRS, as well as fraudulent payroll registers that purported to identify the names, personal information, and salary of the employees identified on the PPP applications.
For example, a PPP loan application was submitted on behalf of 5 Stems Inc to Evolve. The application represented that in 2019, 5 Stems Inc had 194 employees and an average monthly payroll of $242,133.33. In truth, 5 Stems Inc had nine employees in 2019 and paid those employees a total of approximately $57,380 for all of 2019. Evolve approved the application and funded a $605,200 loan. The money was deposited into an account controlled by defendant El. Some of the money was used for the defendants’ own investments, as well as personal expenses and home improvements.
This case was investigated by the Federal Deposit Insurance Corporation’s Office of Inspector General, the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection’s Office of the Inspector General, the Federal Housing Finance Agency’s Office of the Inspector General, the Federal Bureau of Investigation, and the Small Business Administration’s Office of Inspector General. Assistant U.S. Attorneys Charles Kruly and Grace Carducci for the Western District of New York and Trial Attorneys Ariel Glasner and Della Sentilles of the Criminal Division’s Fraud Section are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Sentencing is scheduled for January 17, 2024, before Judge Sinatra.
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Thompson Man Pleads Guilty to Trafficking in Stolen Human RemainsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeremy Pauley, age 41, of Thompson, Pennsylvania, pleaded guilty yesterday before U.S. District Court Judge Matthew W. Brann to conspiracy and interstate transportation of stolen property.
According to United States Attorney Gerard M. Karam, Pauley admitted to his role in a nationwide network of individuals who bought and sold human remains stolen from Harvard Medical School and an Arkansas mortuary. In pleading guilty to a felony Information, Pauley admitted that he purchased human remains from multiple individuals knowing that those remains were stolen. Pauley also admitted to selling many of the stolen remains to others, at least one of whom also knew they had been stolen.
Previously, other individuals were also indicted on charges of conspiracy and interstate transport of stolen property as part of the same investigation. The indictments allege that from 2018 through 2022, Cedric Lodge, who managed the morgue for the Anatomical Gifts Program at Harvard Medical School, located in Boston, Massachusetts, stole organs and other parts of cadavers donated for medical research and education before their scheduled cremations. Lodge at times allegedly transported stolen remains from Boston to his residence in Goffstown, New Hampshire, where he and his wife, Denise Lodge, sold the remains to Katrina Maclean, Joshua Taylor, and others, making arrangements via cellular telephone and social media websites. At times, Cedric Lodge allegedly allowed Maclean and Taylor to enter the morgue at Harvard Medical School and examine cadavers to choose what to purchase. On some occasions, Taylor transported stolen remains back to Pennsylvania. On other occasions, the Lodges shipped stolen remains to Taylor and others out of state.
Maclean and Taylor allegedly sold the stolen remains for profit, including to Jeremy Pauley in the Middle District of Pennsylvania. Jeremy Pauley also allegedly purchased stolen human remains from Candace Chapman Scott, who stole remains from her employer, a Little Rock, Arkansas mortuary and crematorium. Scott allegedly stole parts of cadavers she was supposed to have cremated, many of which had been donated to and used for research and educational purposes by an area medical school, as well as the corpses of two stillborn babies who were supposed to be cremated and returned as cremains to their families. Scott allegedly sold the stolen remains to Pauley and shipped them to Pauley in the Middle District of Pennsylvania. Pauley sold many of the stolen remains he purchased to other individuals, allegedly including Matthew Lampi. Lampi and Pauley bought and sold from each other over an extended period and exchanged over $100,000 in online payments.
The individuals charged along with Pauley as a result of the investigation are pending trial:
- Cedric Lodge, age 55, of Goffstown, New Hampshire;
- Katrina Maclean, age 44, of Salem, Massachusetts;
- Joshua Taylor, age 46, of West Lawn, Pennsylvania;
- Denise Lodge, age 63, of Goffstown, New Hampshire; and
- Mathew Lampi, age 52, of East Bethel, Minnesota.
Additionally, Candace Chapman-Scott has been indicted in federal court in the District of Arkansas for her role in the conspiracy and for defrauding the mortuary that employed her.
The United States Attorney’s Office has and will continue to attempt to identify and contact as many of the victims and victims’ families affected by this case as possible. If anyone believes they or a family member may have been affected by the conduct described above, please contact our Victim and Witness Unit at [email protected] or (717) 614-4249.
The case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, the East Pennsboro Township Police Department, and the Cumberland County District Attorney’s Office. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
The maximum penalty under federal law for this offense is 15 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Third Defendant Charged in September 6th Murder in Southwest Apartment BuildingRead the Press Release
WASHINGTON – Raymond Mathis, 36, of Washington, D.C., was presented in Superior Court today on charges of first degree felony murder while armed stemming from the homicide of 32-year-old Matthew Miller, on September 6, 2023, in the city's Wharf neighborhood, U.S. Attorney Matthew M. Graves announced.
Mathis is the third defendant charged in the case. He was arraigned before Magistrate Judge Judith Pipe and entered a plea of not guilty. The court found probable cause to believe that the defendant committed first degree felony murder while armed. Mathis is being held without bond pending a September 27 preliminary hearing before Judge Anthony Epstein.
An arrest on a complaint is merely a formally charged allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charge, U.S. Attorney Graves commended the work of those investigating the case from the Metropolitan Police Department (MPD) and the U.S. Attorney’s Office.
Tampa Woman Pleads Guilty to Identity Theft, Passport and Food Stamp FraudRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that Nilda Medina-Veguilla (38, Tampa) has pleaded guilty to making false statements in an application for a United States passport, aggravated identity theft, and theft of government property. Medina faces a maximum penalty of 10 years in federal prison and a minimum mandatory penalty of 2 years’ imprisonment. Medina-Veguilla has also agreed to forfeit the proceeds of the charged criminal conduct.
According to the plea agreement, Medina-Veguilla is a U.S. citizen who was born in Puerto Rico. In 2005, she was charged with counterfeiting and illegal appropriation. In 2008, a warrant was issued for her arrest. That same year, Medina-Veguilla left Puerto Rico and moved to the continental United States. There, she assumed the identity of “N.T.D.,” an individual she knew from Puerto Rico. Medina-Veguilla was married and divorced, arrested, employed, and taxed, all in the victim’s name. In February 2021, Medina-Veguilla applied for a U.S. passport using N.T.D.’s name, date of birth, Social Security number, and birth certificate. She also applied for and received “SNAP” benefits in N.T.D.’s name. The Supplement Nutrition Assistance Program (“SNAP” – formerly known as “food stamps”) is a program of the United States Department of Agriculture that was authorized by congress to provide federal benefits to help low-income families buy food. In total, Medina-Veguilla fraudulently obtained more than $43,000 in SNAP benefits.
Medina-Veguilla’s fraudulent activity was exposed when Consular Affairs discovered the real N.T.D. had been issued a U.S. passport several years before Medina-Veguilla’s application.
This case was investigated by U.S. Department of State’s Diplomatic Security Service, the U.S. Department of Agriculture - Office of Inspector General, and the Social Security Administration – Office of the Inspector General. It is being prosecuted by Special Assistant United States Attorney Rachel S. Lyons.
Syracuse Man Sentenced to 33 Months for Cocaine OffenseRead the Press Release
SYRACUSE, NEW YORK – Redell Williams, III, age 43, of Syracuse, was sentenced today to serve 33 months’ imprisonment for possession with intent to distribute cocaine.
United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA)-New York Division, made the announcement.
As part of his earlier guilty plea, Williams admitted that on November 10, 2022, he possessed a total of approximately 531 grams of cocaine and approximately 211 grams of cocaine base at his home in Syracuse, New York with the intent to distribute it. Williams further admitted that in his residence, he “cooked” powder cocaine to manufacture cocaine base, also known as “crack” cocaine, and that $4,587 in cash found at his residence was narcotics proceeds.
Chief United States District Judge Brenda K. Sannes also imposed a 3-year term of post-release supervision and ordered Williams to forfeit $4,587 as proceeds of the offense.
DEA investigated the case, with assistance from Onondaga County District Attorney’s Office, Onondaga County Sheriff’s Office, and the Syracuse Police Department. Assistant U.S. Attorney Matthew J. McCrobie prosecuted the case.
Suspended Indianapolis Police Sergeant Sentenced to 1 Year in Federal Prison for Using Excessive Force During ArrestRead the Press Release
INDIANAPOLIS- Suspended Indianapolis Metropolitan Police Department Sergeant, Eric Huxley, 44, has been sentenced to 1 year and 1 day in federal prison after pleading guilty to violating the civil rights of an arrestee by using excessive force.
According to court documents, on Sept. 24, 2021, Huxley, was on patrol in downtown Indianapolis when another officer requested his assistance in confronting a disorderly person on Monument Circle. After officers placed the victim, identified as J.V., under arrest for disorderly conduct, Huxley assisted other officers with conducting an inventory of J.V.’s property.
When officers began to remove J.V.’s belt, he became confrontational with the officers. The primary arresting officer used a department-approved takedown maneuver to bring J.V., who had already been handcuffed, to the ground. The arresting officer held J.V. down with one hand while a second officer restrained his legs. This reasonable and appropriate use of force effectively overcame J.V.’s resistance and rendered him physically unable to move.
Despite knowing that J.V. had been effectively restrained and posed no further danger to officers or the public, Huxley then intentionally raised his right foot and drove it down onto J.V.’s head and face.
“This sentence holds a former police officer accountable for abusing his authority when he violently assaulted a homeless man who posed no threat,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to aggressively investigating and prosecuting law enforcement officials who violate federal civil rights laws.”
“In addition to the trauma inflicted on victims, police officers who break the law and use excessive force damage the community’s trust in the law enforcement profession,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “Officers put themselves at risk every day doing a difficult and sometimes dangerous job to uphold the law and protect their communities. Those who instead commit crimes must be identified and prosecuted. This sentence demonstrates that the FBI, Department of Justice, and our U.S. Attorney’s Office are committed to seeking accountability for those who violate people’s civil rights under the color of law.”
“Every day, law enforcement officers in this country face dangerous situations which require the application of reasonable force to protect themselves and others. Unfortunately, some officers fail to adhere to the applicable standards of law and policy, inflicting harm instead of preventing it,” said Special Agent in Charge Herbert J. Stapleton of the FBI Indianapolis Field Office. “This sentence reflects the FBI’s commitment to protecting the civil rights of all citizens, and I commend the work of the Special Agents and prosecutors who helped ensure the defendant was held accountable for his illegal conduct.”
Assistant Attorney General Kristen Clarke, U.S. Attorney for the Southern District of Indiana, Zachary A. Myers and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office made the announcement.
The FBI Indianapolis Field Office investigated the case. The sentence was imposed by U.S. District Court Judge Jane Magnus-Stinson. Judge Stinson ordered that Huxley be supervised by the U.S. Probation Office for 2 years following his release from federal prison.
Assistant U.S. Attorney Tiffany Preston for the Southern District of Indiana and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section prosecuted the case.
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Suspended Indianapolis Police Sergeant Sentenced for Using Excessive Force During ArrestRead the Press Release
A suspended Indianapolis Metropolitan Police Department Sergeant was sentenced to 12 months and a day in prison, with six months of home detention and 18 months of supervised release, after pleading guilty to violating the civil rights of an arrestee by using excessive force.
According to court documents, on Sept. 24, 2021, Eric Huxley, 44, was on patrol in downtown Indianapolis when another officer requested his assistance in confronting a disorderly person on Monument Circle. After officers placed the victim, identified as J.V., under arrest for disorderly conduct, Huxley assisted other officers with conducting an inventory of J.V.’s property.
When officers began to remove J.V.’s belt, he became confrontational with the officers. The primary arresting officer used a department-approved takedown maneuver to bring J.V., who had already been handcuffed, to the ground. The arresting officer held J.V. down with one hand while a second officer restrained his legs. This reasonable and appropriate use of force effectively overcame J.V.’s resistance and rendered him physically unable to move.
Despite knowing that J.V. had been effectively restrained and posed no further danger to officers or the public, Huxley then intentionally raised his right foot and drove it down onto J.V.’s head and face.
“This sentence holds a former police officer accountable for abusing his authority when he violently assaulted a homeless man who posed no threat,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to aggressively investigating and prosecuting law enforcement officials who violate federal civil rights laws.”
“In addition to the trauma inflicted on victims, police officers who break the law and use excessive force damage the community’s trust in the law enforcement profession,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “Officers put themselves at risk every day doing a difficult and sometimes dangerous job to uphold the law and protect their communities. Those who instead commit crimes must be identified and prosecuted. Today’s sentencing demonstrates that the FBI, Justice Department and our U.S. Attorney’s Office are committed to seeking accountability for those who violate people’s civil rights under the color of law.”
“Every day, law enforcement officers in this country face dangerous situations which require the application of reasonable force to protect themselves and others. Unfortunately, some officers fail to adhere to the applicable standards of law and policy, inflicting harm instead of preventing it,” said Special Agent in Charge Herbert J. Stapleton of the FBI Indianapolis Field Office. “This sentence reflects the FBI’s commitment to protecting the civil rights of all citizens and I commend the work of the Special Agents and prosecutors who helped ensure the defendant was held accountable for his illegal conduct.”
The FBI Indianapolis Field Office investigated the case.
Assistant U.S. Attorney Tiffany Preston for the Southern District of Indiana and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section prosecuted the case.
Seattle Barrel cleaning company and its owner sentenced for ten-year water pollution schemeRead the Press Release
Seattle – A barrel cleaning and reconditioning operation, Seattle Barrel and Cooperage Company, and its owner, Louie Sanft, 55, were sentenced today in U.S. District Court in Seattle for conspiracy, making false statements, and 33 Clean Water Act violations, announced Acting U.S. Attorney Tessa M. Gorman. Sanft was sentenced to 18 months in prison, a $250,000 fine, and three years of supervised release. The company was sentenced to be on five years of probation.
U.S. District Judge Richard A. Jones, who presided over the three-week trial, said, “These discharges were not done by accident or mistake… they were done with disregard for the consequences… An enormous amount of caustic waste – an estimated 26,000 gallons of caustic water -- into our system with no idea of what harm it could have done. You had no justifiable reason to engage in this deceitful and dangerous activity.”
“These defendants sent dangerous caustic chemicals into our sewer system once a week for years,” said Acting U.S. Attorney Gorman. “This risked environmental harm to Elliott Bay and the Duwamish River, damaged critical sewer infrastructure, and could have seriously injured utility workers. At many points Mr. Sanft and his company could have reformed their ways – the refusal to do so results in these sentences today.”
According to records in the case and testimony at trial, Seattle Barrel’s business involves collecting used industrial and commercial drums and reconditioning and reselling them. Part of the reconditioning process involved washing the barrels in a highly corrosive chemical solution. The caustic solution has a very high pH level. Since at least 2009, Seattle Barrel has operated under a discharge permit that prohibits it from discharging wastewater over a certain level of corrosivity (a pH exceeding 12) to the sewer system. Wastewater above pH 12 will corrode the sewer system and treatment plant, and potentially cause pass-through pollution to Elliott Bay and Puget Sound.
In 2013, King County conducted covert monitoring of Seattle Barrel, and discovered the company was illegally dumping effluent with a pH above 12 in violation of its permit. King County fined the company, but the pollution did not stop. Beginning in 2016, Louie Sanft represented to King County in written monthly certifications that the company had become a “zero discharge” facility and was not discharging any industrial wastewater to the sewer.
In fact, in 2018 and 2019, additional covert monitoring by the EPA’s Criminal Investigation Division revealed that Seattle Barrel was continuing to routinely dump wastewater with a pH above 12 into the sewer system despite telling local regulators that no industrial wastewater was being discharged. Agents then installed real-time monitoring equipment that allowed them to determine when the dumping was taking place.
Early on the morning of March 8, 2019, the covert monitors indicated Seattle Barrel was dumping high-pH material into the sewer. Agents immediately executed a search warrant and entered the building. Inside, they discovered a portable pump on the floor near the tank of caustic solution. They then discovered that the pump was being used to pump solution to a nearby hidden drain that had never been disclosed to King County. The drain led directly to the sewer system.
Seattle Public Utilities says the sewer lines downstream from Seattle Barrel are prematurely damaged and will need early repair. These discharges put utility workers at risk, as such caustic chemicals can cause blindness, skin necrosis, bone damage, and even death.
Louie Sanft, the owner and operator of Seattle Barrel, was convicted after a three-week trial of conspiracy, 29 violations of the Clean Water Act for discharging pollutants to the sewer, four counts of submission of False Clean Water Act Certifications, and making a false statement to special agents of the EPA.
Asking the court to impose a five-year prison sentence, Assistant United States Attorney Seth Wilkinson wrote, “Louis Sanft affirmatively chose to pollute and engaged in a campaign of deceit to cover it up, despite regulators efforts to help him comply… Louis Sanft simply stonewalled, or lied and continued his illegal practices… Sanft… lied to federal agents…tried to mislead the U.S. Attorney’s Office and EPA …and finally, Louis Sanft lied to the jury at trial.”
As part of the sentence for the company, Judge Jones is requiring the company to certify every quarter that it has complied with all federal, state, and local requirements including compliance with its National Pollutant Discharge Elimination System permit.
"For nearly a decade, the defendants dumped caustic industrial waste into the Seattle sewer system and then conspired to conceal their illegal activities by submitting false monthly reports and lying to investigators," said Acting Special Agent in Charge Benjamin Carr of EPA’s Criminal Investigation Division for Washington. “Today’s sentencing demonstrates the seriousness of these crimes and sends a clear message that businesses will be held criminally responsible if they fail to manage industrial wastes in accordance with laws designed to protect the health of our communities, national infrastructure, and the environment.”
According to Seattle Barrel, the company stopped using caustic solution after EPA executed the search warrant in 2019.
This case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, with assistance from the King County Industrial Waste Program and the Seattle Public Utilities, Drainage and Wastewater Source Control Division.
The case was prosecuted by Assistant United States Attorneys Seth Wilkinson and Thomas Woods, and Special Assistant United States Attorneys Karla Perrin and Gwendolyn Russell, Regional Criminal Enforcement Counsel with the Environmental Protection Agency.
Salt Lake City Man Indicted for Carjacking After Allegedly Attacking a Woman with a Child in the VehicleRead the Press Release
Salt Lake City, Utah – A federal grand jury in Salt Lake City returned an indictment Wednesday charging a Salt Lake City man after he allegedly attempted to violently take a woman’s vehicle with her daughter in the backseat.
According to court documents, Zachery Cover, 32, of Salt Lake City, attempted to steal a black BMW in the area of 1000 West 200 North in Salt Lake City on August 30, 2023.
According to the allegations in the complaint, dispatch received a 911 call at 9:14 a.m. from the victim who stated she had been driving with her 7-year-old daughter when she stopped due to a tire problem. The victim left the vehicle running with the driver’s door open while she checked the tire pressure. A man, later identified as Cover, jumped in the vehicle, and shut the door. In an attempt to stop Cover from leaving with her daughter, who was in the backseat, the victim reached through the open driver’s door window and pleaded with Cover not to take the car because her daughter was inside. Cover told the victim to take her daughter and get out. The victim pulled Cover from the vehicle and a physical altercation ensued. The victim was struck several times by Cover. At one point, Cover displayed a firearm and pointed it at the victim and her child. A second struggle occurred, and the victim knocked the gun away, broke free, drove off and called 911. A responding officer took Cover into custody. The recovered firearm was a facsimile .22 caliber Walther style BB gun.
Cover is charged with carjacking. Cover had his initial court appearance on the indictment, September 7, 2023 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City. A two day trial is scheduled for November 13, 2023.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated by a Salt Lake City Police Officer with the FBI's Violent Crime Task Force.
Assistant United States Attorney Carlos A. Esqueda for the District of Utah is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Porterville Man Sentenced to over 17 Years in Prison for Conspiracy to Possess with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss. – Cordaryl Deshean Ford, 37, of Porterville, was sentenced to 210 months in federal prison for conspiracy to possess with intent to distribute 50 grams of more of methamphetamine, announced U.S. Attorney Darren LaMarca and acting Special Agent in Charge Eric DeLaune of Homeland Security Investigations in New Orleans.
According to court documents, in May 2020, Cordaryl Deshean Ford conspired with others to distribute methamphetamine in and around the Kemper County area. Ford and his co-conspirators were charged in a federal indictment with conspiracy to possess with intent to distribute methamphetamine. Ford entered a plea of guilty to his charge on the first day of trial in U.S. District Court in Jackson.
The case was investigated by Homeland Security Investigations, the Drug Enforcement Administration, Mississippi Bureau of Narcotics, Mississippi Attorney General’s Office, Kemper County Sheriff’s Office, Neshoba County Sheriff’s Office, Philadelphia Police Department, Mississippi Department of Wildlife, Fisheries and Parks, Mississippi National Guard Counterdrug Task Force, and the Madison Police Department. Assistant United States Attorneys Keesha Middleton and Carla Clark prosecuted the case.
This case is the result of an extensive investigation targeting illegal drug trafficking in the Neshoba and Kemper County areas. The case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Philadelphia Man Sentenced to 96 Months in Prison for Fentanyl TraffickingRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Naim Taylor, age 25, of Philadelphia, Pennsylvania, was sentenced to 96 months of imprisonment on charges related to fentanyl trafficking.
According to United States Attorney Gerard M. Karam, Taylor was the manager of a drug trafficking organization that brought fentanyl from Philadelphia to Williamsport and other areas in the Middle District of Pennsylvania. Taylor previously entered a guilty plea in which he admitted to being responsible for trafficking at least 74 grams of fentanyl, the equivalent of nearly 3,000 individual doses. Taylor’s sentence was enhanced because of his possession of a firearm in connection with these activities.
This case was investigated by the Federal Bureau of Investigation and the Pennsylvania State Police. Assistant U.S. Attorney Geoffrey W. MacArthur prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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NuDay Charity Pleads Guilty in Connection with the Illegal Export of Goods to SyriaRead the Press Release
CONCORD – A New Hampshire charity pleaded guilty today in federal court to export offenses, U.S. Attorney Jane E. Young announces.
NuDay, a/k/a NuDay Syria, pleaded guilty to three counts of Failure to File Export Information. U.S. District Court Judge Joseph Laplante scheduled sentencing for December 28, 2023.
NuDay was founded by Nadia Alawa as a non-profit charity in 2013 and is headquartered in Windham, New Hampshire. Alawa served as NuDay’s President. Between 2018 and 2021, NuDay made over 100 shipments to Syria, a country that was subject to sanctions and export restrictions. NuDay had the items shipped to Mersin, Turkey, where another company would transship them into Syria. U.S. Department of Commerce regulations require exporters, such as NuDay, to report true and accurate information about the items being exported, including the shipment’s description, end user, and monetary value. However, NuDay falsely reported that the end destination of the shipments was Turkey and not Syria, and artificially deflated the value of the goods to be below the $2,500 reporting threshold. For example, on May 5th, 2019, NuDay falsely reported that their shipment was intended for Turkey and that the value of the container was less than $2,500. NuDay now admits that this container was actually intended for Syria and claims its true value was $8.3 million.
For an organizational defendant, the charging statute provides a sentence of no greater than five years of probation and a fine of $10,000 per count. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case. As a condition of the plea, Nadia Alawa and her family members will have no further involvement with NuDay.
The Federal Bureau of Investigation, U.S. Department of Commerce’s Office of Export Enforcement, Internal Revenue Service’s Criminal Investigations division, and Homeland Security Investigations led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
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North Carolina Woman Pleads Guilty to Fatally Stabbing a Man During a Visit to Washington DCRead the Press Release
Incident Occurred in January 2023
WASHINGTON – Cynthia Battle, 54, of Washington, D.C., pleaded guilty today to stabbing a man to death on January 16, 2023, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela A. Smith, of the Metropolitan Police Department (MPD). Battle pleaded in the Superior Court of the District of Columbia, to a charge of voluntary manslaughter. The Honorable Michael O’Keefe accepted the plea and scheduled sentencing for November 17, 2023.
According to the government’s evidence, on January 15, 2023, Cynthia Battle and two friends drove from their homes in North Carolina to visit a friend in Washington DC. The following day, the decedent, Raymond Johnson, joined them all at the friend’s house. At approximately 11:45 pm on January 16, 2023, Battle, Johnson, and a witness walked together down Minnesota Ave. Southeast, to purchase crack cocaine. While outside on the street, and in the midst of this drug transaction, Battle was captured on surveillance camera lunging towards Johnson. Battle, Johnson, and the witness then quickly separated, walking in opposite directions. Minutes later, a 911 caller found Johnson further down the street. Johnson was laying face down and unconscious, bleeding from a single stab wound to his chest.
The sole eyewitness to the stabbing immediately drove back to North Carolina, leaving Battle behind. Battle caught her own ride back to North Carolina the next day, after which she absconded. Members of the Metropolitan Police Department (MPD) worked with members of the Halifax County Sherriff’s Office to locate and interview the witness within days of the stabbing. The witness initially claimed not to have seen anything, but later admitted to seeing a flash of silver in Battle’s hand as Battle struck Johnson in the chest. Law enforcement from these two jurisdictions also worked together to search Battle’s home, where they found the clothing she wore on the night of the murder. Battle was arrested in March 2023, and has been in custody ever since.
In announcing the plea, U.S. Attorney Graves and Acting Chief Smith commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the cooperation from the Halifax County Sherriff’s Office, and acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Latrice Washington-Williams and Paralegal Specialist Lauren Douglas. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Lisa Lindhorst, who investigated and prosecuted the case.
Nebraska Man Sentenced on Firearm ChargeRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Court Chief Judge Robert A. Lange has sentenced a Hastings, Nebraska, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on September 5, 2023.
Joaquin Cervantes, 39, was sentenced to five years in federal prison, follow by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Cervantes was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in May of 2023. He pleaded guilty on June 16, 2023.
The conviction stems from Cervantes, a previously convicted felon who is prohibited from possessing firearms, knowingly being in possession of a Remington semi-automatic rifle in Rapid City, South Dakota, in March of 2023.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Cervantes was immediately remanded to the custody of the U.S. Marshals Service.
Maryland Man Pleads Guilty to Extorting Massachusetts Victims He Met via Online Dating WebsiteRead the Press Release
BOSTON – A Maryland man pleaded guilty today to making extortionate threats toward victims in Massachusetts.
Brandon D. Kane, 27, of Baltimore, pleaded guilty to making extortionate threats in interstate commerce. U.S. District Court Judge Patti B. Saris scheduled sentencing for Jan. 11, 2024. Kane was arrested and charged in April 2023.
Kane used an online dating website to meet victims locally in Eastern Massachusetts. During such meetings, Kane made unauthorized videos of his victims engaging in illicit drug use or sexual activity with him. Kane then threatened to release the videos to the victims’ families and employers unless his victims paid him.
The charge of making extortionate threats in interstate commerce provides for a sentence of up to two years in prison, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorneys Jessica Soto and Benjamin Tolkoff of the Criminal Division are prosecuting the case.
Luzerne County Man Sentenced to 42 Months’ Imprisonment for Covid-Relief and Credit Card Fraud, and Identity Theft OffensesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Reynard Lewis, age 30, formerly of Nanticoke, Pennsylvania, was sentenced by United States District Judge Robert D. Mariani to 42 months of imprisonment, for wire fraud conspiracy and aggravated identity theft offenses.
According to United States Attorney Gerard M. Karam, Lewis and his coconspirators used stolen identities to create forged identification documents and credit and debit cards. The conspirators used those forged items and stolen identities to open bank accounts, apply for lines of credit, and obtain retail merchandise. The conspirators also used the stolen identities to apply for multiple COVID-19 pandemic relief loans issued under the Small Business Administration’s Paycheck Protection Program (PPP), including by submitted false federal tax documentation. The conspirators allegedly received over $100,000 in pandemic stimulus funds.
The PPP is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, PPP funds are offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses.
Lewis previously was charged in a criminal complaint and arrested on September 16, 2022. He has remained in detention since his arrest. Lewis’s alleged coconspirator, Robert Brownstein, age 51, of Scranton, Pennsylvania, was previously charged in a criminal information with wire fraud conspiracy and aggravated identity theft.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania Attorney General’s Office, and the Pottsville Bureau of Police. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Luzerne County Man Pleads Guilty to Crystal Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Yerigardy Tejeda-Zoquier, age 23, of West Hazleton, Pennsylvania, pleaded guilty on September 7, 2023, before U.S. District Court Judge Robert D. Mariani, to the charge of possession with intent to distribute more than 50 grams of crystal methamphetamine.
According to United States Attorney Gerard M. Karam, Tejeda-Zoquier admitted to possessing between 500 grams and 1.5 kilograms of highly pure crystal methamphetamine for further distribution in the Luzerne County and Carbon County areas in 2021. Investigators purchased crystal methamphetamine from Tejeda-Zoquier on multiple occasions between January and March 2021 in both Luzerne and Carbon Counties, and then seized additional crystal methamphetamine from two vehicles utilized by Tejeda-Zoquier.
The charges against the defendant resulted from an investigation conducted by the Pennsylvania State Police and the Drug Enforcement Administration. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Under federal law, the defendant faces a mandatory minimum sentence of ten years in prison, up to a maximum sentence of life in prison, 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.
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Lowell Gang Member Pleads Guilty in Drug Trafficking and Money Laundering ConspiraciesRead the Press Release
BOSTON – A leader of a Lowell-based gang, One Family Clique (OFC), pleaded guilty yesterday to conspiring with fellow OFC gang members to traffic wholesale quantities of cocaine, and to launder millions of dollars in drug proceeds through casinos in Canada.
Virak Prum, a/k/a “Polo,” a/k/a “Capo,” a/k/a “Lips,” 36, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute cocaine and one count of money laundering conspiracy. U.S. Senior District Court Judge William G. Young scheduled sentencing for Dec. 14, 2023.
In August 2018, law enforcement began investigating OFC in response to a dramatic spike in shootings and gang violence in Lowell. OFC is an alliance between several gangs in and around Lowell with ties to gangs in California and other states. In 2018 and 2019, at least 12 incidents of gunfire in the Lowell area are alleged to be attributable to gang-motivated hostilities between OCF and its rivals.
Since at least 2019, Prum and his co-conspirators used the U.S. Postal Service to receive shipments of illegal narcotics, and, in return, to ship cash proceeds to the sources of supply. Members of the conspiracy maintained stash houses in Lowell, which also served as venues for gang meetings and other events furthering the gang’s illegal activities. Over the course of the investigation, agents seized or purchased approximately 12 kilograms of methamphetamine, 2.4 kilograms of cocaine, 2.1 kilograms of MDMA, 513 grams of heroin, and 169 grams of Fentanyl; $177,591 in cash; and seven firearms.
In May 2021, Prum led a money laundering operation in which he and his co-conspirators provided “protection” to a shipment from Europe that purportedly contained 8 million Euros in drug proceeds from black tar heroin sales. Specifically, Prum and his co-conspirators helped pack a shipment of money into a truck and escorted it from New York to New Hampshire.
Prum was charged with 14 others in June 2021. He is the final defendant in custody to plead guilty in the case. One defendant remains a fugitive.
The charge of conspiracy to distribute and to possess with intent to distribute cocaine provides for a sentence of up to twenty years in prison, at least three years and up to life of supervised release and a fine of up to $1 million. The charge of money laundering conspiracy provides for a sentence of up to twenty years in prison, supervised release for up to three years up to life and a fine of up to $500,000 or twice the value of the laundered property. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.Acting United States Attorney Joshua s. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division; Harry Chavis, Jr., Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Greg Hudon, Superintendent of the Lowell Police Department made the announcement today. Valuable assistance was provided by the DEA-San Jose Task Force as well as the Long Beach (Calif.) and Santa Clara (Calif.), Police Departments. Assistant U.S. Attorneys Timothy Moran and Fred Wyshak, III of the Organized Crime & Gang Unit are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Leader of Identity Theft Conspiracy That Stole Nearly 50 Vehicles Sentenced to 8.5 Years in PrisonRead the Press Release
BOSTON – A Haverhill man was sentenced today in federal court in Boston for orchestrating schemes to use the stolen identities of United States citizens from Puerto Rico to fraudulently purchase vehicles and other merchandise and apply for and utilize bank accounts and credit cards.
Alvin Rivera, 40, was sentenced by U.S. District Court Judge Patti B. Saris to 102 months in prison and three years of supervised release. He was also ordered to pay $389,141 in restitution to victims. In March 2023, Rivera pleaded guilty to one count of conspiracy to commit wire fraud; two counts of wire fraud; three counts of aggravated identity theft; and three counts of false representation of a Social Security number in his District of Massachusetts case; he also pleaded guilty to a similar scheme originating in the District of New Jersey that was transferred to the District of Massachusetts for resolution.
Between October 2017 and September 2020, Rivera was the leader of a conspiracy in Massachusetts that used stolen identity information of United States citizens to obtain credit and goods. Under Rivera’s direction, and with stolen identity information that he provided, co-conspirators visited Massachusetts car dealerships to purchase late-model vehicles and applied for 100% financing. In support of the applications, the co-conspirators provided stolen biographical information from real United States citizens, fraudulent Puerto Rico driver’s licenses and Social Security cards in those identities, as proof of identification. The co-conspirators used the stolen identities to illegally open bank accounts and credit cards and purchase vehicles, many of which were exported out of the United States.
Between October 2017 and February 2018, Rivera also personally used stolen identity information of United States citizens to apply for credit and fraudulently purchase vehicles in a similar scheme in New Jersey.Together, the co-conspirators fraudulently purchased at least 47 vehicles from dealerships in Massachusetts, Pennsylvania, New York and New Jersey – obtaining over $2 million in cars and other merchandise using the stolen identities.
Following Rivera’s arrest, the investigation revealed that in 2020, Rivera also allegedly led a conspiracy that used stolen identity information of United States citizens to apply for and obtain over $450,000 in Economy Injury Disaster Loans, a form of pandemic relief, from the Small Business Administration. It is alleged that Rivera’s co-conspirators fraudulently opened bank accounts to receive those funds, laundered the funds and shared a portion of the profits with co-conspirators in the Dominican Republic. Multiple individuals have been arrested, charged, and pleaded guilty with respect to that conspiracy, and Rivera’s sentencing also took that conduct into account.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Special Agent in Charge of Homeland Security Investigations, in New England; John E. Mawn Jr., Interim Colonel of the Massachusetts State Police; and Brockton Police Chief Brenda Perez made the announcement today. Valuable assistance was provided by the U.S. Attorney’s Office for the District of New Jersey; and the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna J. Nuzum and Adam W. Deitch of the Criminal Division prosecuted the case.
The District of Massachusetts investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
The District of New Jersey investigation was conducted by the Social Security Administration, Office of Inspector General, Office of Investigations.Lackawanna County Man Sentenced to Life Imprisonment for Drug Distribution Resulting in DeathRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that United States Judge Malachy E. Mannion sentenced Robert Jackson, age 45, of Scranton, Pennsylvania, to life imprisonment for the distribution of a controlled substance resulting in death.
According to United States Attorney Gerard M. Karam, Jackson was found guilty of multiple federal crimes on February 8, 2022, following a six-day jury trial before Judge Mannion. Jackson was specifically found guilty for his sale of fentanyl on July 25, 2020, which resulted in the death of a 58-year-old Monroe County man. Jackson was also found guilty of conspiracy to distribute controlled substances resulting in death and possession with intent to distribute controlled substances.
During the trial, prosecutors from the U.S. Attorney’s Office presented the testimony of Dr. Rameen Starling-Roney, a Forensic Pathologist, and Dr. Michael Coyer, a Forensic Toxicologist, who opined that fentanyl caused the death of the Monroe County man. Additional testimony was provided by officers and detectives from the Monroe County District Attorney’s Office, the Pocono Mountain Regional Police Department, and the FBI – Scranton Office who testified that Jackson sold fentanyl to the victim in the evening of July 25, 2020, resulting in his death on July 28, 2020.
The life sentence imposed by Judge Mannion was mandated pursuant to federal law for defendants found guilty of distributing a controlled substance resulting in death, after having previously been convicted of a felony drug offense. Jackson’s criminal history involved multiple felony drug offenses, which also rendered him a career offender under federal law.
The investigation was conducted by the Federal Bureau of Investigation (FBI) in Scranton, the Monroe County District Attorney’s Office, and the Pocono Mountain Regional Police Department. Assistant United States Attorneys Michelle Olshefski and Robert O’Hara prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Justice Department Secures Settlement Protecting Employment Rights of ServicemembersRead the Press Release
The Justice Department announced today that it has resolved a complaint filed against the City of Chicago on behalf of U.S. Army Reservist Derrick Strong. The department’s lawsuit alleged that the city violated the Uniformed Services Employment and Reemployment Rights Act (USERRA) when it failed to offer Strong the opportunity to take an examination upon his return from military service that would have made him eligible for a promotion. After the lawsuit was filed, Strong was given the promotional exam, which he passed, and promoted to the rank of Fire Engineer. The settlement will award him retroactive seniority and back pay.
“Federal law safeguards the civilian employment rights of our nation’s servicemembers and requires that they have the promotional opportunities they would have earned had their employment not been interrupted by military service,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Employers must ensure that servicemembers have a fair opportunity to seek promotion, including by offering make-up examinations missed due to military service, and this settlement will ensure that this continues to happen.”
Strong began his employment in August 2009 as a Firefighter/EMT. He served on active duty from September 2016 through June 2017. Immediately upon returning from his deployment, Strong made multiple requests to take the Fire Engineer promotional examination that he missed while on active duty. Although the city did not begin making Fire Engineer promotions until almost a year after Strong returned, the city denied him the opportunity to take the exam. Initially, the city asserted that because it offered Strong an opportunity to take the Fire Engineer promotional examination at his military post while on active duty, his failure to take the promotional exam was of his own doing.
In April 2022, shortly after Strong’s successful performance on the make-up Fire Engineer examination that was ultimately given to him, the city promoted him to the rank of Fire Engineer. The city also changed its policy to allow servicemembers to take make-up promotional examinations upon their return from military service. Under the terms of the settlement agreement, the city also agreed to retroactively adjust Strong’s Fire Engineer appointment date to June 2018, the date that he would have been promoted had the city properly administered the examination upon his return from military service and to pay Strong for his lost wages in the amount of $52,000.
The Department of Labor (DOL) referred this matter to the Justice Department following an investigation by its Veterans’ Employment and Training Service.
Trial Attorneys Alicia D. Johnson, Vendarryl Jenkins and Catherine Sellers of the Civil Rights Division’s Employment Litigation Section (ELS) litigated this case.
ELS continues to work collaboratively with the DOL to protect the jobs and benefits of military members. The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found at www.justice.gov/crt/laws-we-enforce and www.justice.gov/servicemembers, as well as on the DOL’s website at www.dol.gov/agencies/vets/programs/userra.
Justice Department Awards Funding for Legal Services and Improved Court Responses to Domestic and Sexual ViolenceRead the Press Release
NEWARK, N.J. – The Department of Justice Office on Violence Against Women (OVW) awarded more than $1.3 million to two programs in the state to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking, U.S. Attorney Philip R. Sellinger announced today.
The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault. These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety. The awards to New Jersey are:
- OVW awarded $750,000 under the Legal Assistance for Victims (LAV) Program to 180 Turning Lives Around Inc. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking.
- OVW awarded $599,512 under the Justice for Families (JFF) Program to the Essex County Family Justice Center Inc. The JFF Program aims to improve the capacity of communities and courts to respond to families impacted by violence.
U.S. Attorney Philip R. Sellinger“There is an urgent need to fund programs for survivors of sexual assault, domestic violence, dating violence, and stalking, so I am pleased to announce that two programs in the District of New Jersey have been awarded funding from the Justice Department’s Office on Violence Against Women. These funds will help survivors who are struggling with the emotional and physical toll of violence to navigate the complex and often overwhelming legal system. The programs this money will help fund will provide needed legal support to ensure justice and safety for survivors.”
“The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system's approach to supporting families affected by violence,” OVW Director Rosemarie Hidalgo said. “These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety.”
The U.S. Attorney’s Office has an unyielding commitment to combat sexual misconduct. As part of the Justice Department’s initiative to combat sexual harassment in housing, the U.S. Attorney’s Office routinely conducts community outreach throughout New Jersey to help identify and encourage reporting of sexual misconduct. This outreach ultimately led to a landmark lawsuit and $4.5 million monetary settlement against a landlord who the United States alleged demanded sex acts from dozens of tenants under the threat of eviction or other negative consequences. In addition, the U.S. Attorney’s Office brought an investigation that revealed that the Edna Mahan Correctional Facility for Women failed to protection inmates from sexual abuse by staff. This lawsuit resulted in a consent decree that required the New Jersey Department of Corrections to implement reforms to ensure incarcerated women are protected from sexual abuse.
OVW provides leadership in developing the nation’s capacity to reduce violence through implementing VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities nationwide that are developing programs, policies, and practices to end domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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Justice Department Awards $58.8 Million in Grants to Provide Legal Services and Improve Court Responses to Domestic and Sexual ViolenceRead the Press Release
The Justice Department announced today $58,860,034 in Office on Violence Against Women (OVW) grants to provide legal services and to improve effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence and stalking. OVW awarded the funds under the Legal Assistance for Victims (LAV) Program, Justice for Families (JFF) Program, Expanding Legal Services Initiative (ELSI) and the Domestic Violence Mentor Court Technical Assistance Initiative.
The need for specialized legal services is both urgent and essential for survivors of domestic and dating violence, sexual assault and stalking. These services provide interventions, such as securing restraining or protective orders and address issues such as child custody, immigration, housing and employment, that are essential for survivor safety. Moreover, there is a significant overlap between domestic violence and family law, particularly in cases involving children; survivors often need legal counsel to navigate complex issues like child custody, visitation and child support. The legal system is inherently complicated, and for survivors who are simultaneously managing the emotional and physical toll of abuse, navigating it can be overwhelming. Despite this acute demand, many communities still lack adequate resources, underscoring the urgency for more comprehensive legal support to ensure both justice and safety for survivors.
“Access to legal assistance is a lifeline for survivors of gender-based violence,” said Associate Attorney General Vanita Gupta. “Survivors must be able to access services and support that provide a pathway to safety and justice. The Justice Department funding announced today will expand access to legal representation and make it easier for thousands of survivors to navigate the justice system every year.”
"The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system's approach to supporting families affected by violence," stated OVW Director Rosemarie Hidalgo. "These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety."
Specifically, OVW awarded a total of $39,638,367 to 55 grantees under the LAV Program, which addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking. ELSI, which operates under the LAV Program, awarded $3,199,306 through eight grants to support the development of new legal services programs. In addition, OVW’s JFF Program awarded $15,272,361 to 25 projects that aim to improve the capacity of communities and courts in responding to families impacted by violence. Moreover, $750,000 was awarded under the Domestic Violence Mentor Court Technical Assistance Initiative to recognize well-established specialized courts and enable them to guide newly-established specialized courts and court-based programs that wish to significantly improve their responses to domestic violence cases and ensure victim safety and offender accountability.
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Created in 1995, OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
justice_for_families_program_awards.pdf legal_assistance_for_victims_grant_program_awards.pdf legal_assistance_for_victims_grant_program_expanding_legal_services_initiative_awards.pdf domestic_violence_mentor_court_technical_assistance_initiative_awards.pdfJustice Department Announces First Criminal Resolution Involving the Illicit Sale and Transport of Iranian Oil in Violation of U.S. SanctionsRead the Press Release
WASHINGTON – The Justice Department announced today the successful disruption of a multimillion-dollar shipment of crude oil by the Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization, that was bound for another country. This is the first-ever criminal resolution involving a company that violated sanctions by facilitating the illicit sale and transport of Iranian oil and comes in concert with a successful seizure of over 980,000 barrels of contraband crude oil.
According to court documents, on April 19, 2023, Suez Rajan Limited pleaded guilty to conspiring to violate the International Emergency Economic Powers Act (IEEPA). On that same date, the company was sentenced by U.S. District Court Judge Carl J. Nichols for the District of Columbia to three years of corporate probation and a fine of almost $2.5 million. In addition, pursuant to a deferred prosecution agreement (DPA) and a seizure warrant issued by the U.S. District Court for the District of Columbia, Empire Navigation, the operating company of the vessel carrying the contraband cargo, agreed to cooperate and transport the Iranian oil to the United States – an operation which has now concluded. Empire Navigation incurred the significant expenses associated with the vessel’s voyage to the United States.
The contraband cargo is now the subject of a civil forfeiture action in the U.S. District Court for the District of Columbia. The United States’ forfeiture complaint alleges that the oil aboard the vessel is subject to forfeiture based on U.S. terrorism and money laundering statutes. The complaint alleges a scheme involving multiple entities affiliated with Iran’s IRGC and the IRGC-Qods Force (IRGC-QF) to covertly sell and transport Iranian oil to a customer abroad. Participants in the scheme attempted to disguise the origin of the oil using ship-to-ship transfers, false automatic identification system reporting, falsified documents, and other means. The complaint further alleges that the charterer of the vessel used the U.S. financial system to facilitate the transportation of Iranian oil.
The complaint further alleges that the oil constitutes the property of, or provided a “source of influence” over, the IRGC and the IRGC-QF, both of which have been designated by the United States as foreign terrorist organizations, and that the oil facilitated money laundering. The documents allege that profits from oil sales support the IRGC’s full range of malign activities, including the proliferation of weapons of mass destruction and their means of delivery, support for terrorism, and both domestic and international human rights abuses.
Funds successfully forfeited with a connection to a state sponsor of terrorism may in whole or in part be directed to the U.S. Victims of State Sponsored Terrorism Fund.
HSI Washington D.C. and FBI’s Minneapolis Field Office are investigating the cases. Assistant U.S Attorneys Stuart D. Allen and Rajbir S. Datta for the District of Columbia prosecuted the criminal case and they, along with Assistant U.S. Attorney Brian Hudak, are litigating the civil forfeiture case. On both actions, they received assistance from Paralegal Specialists Brian Rickers and Legal Assistant Jessica McCormick. Former Assistant U.S. Attorney Michael Grady participated in prior phases of the investigation. The Counterintelligence and Export Control Section of the National Security Division is also prosecuting and litigating these matters. The Money Laundering and Asset Recovery Section of the Criminal Division provided significant assistance in this matter. The Department thanks United Against Nuclear Iran for its valuable assistance.
A civil forfeiture complaint is merely an allegation. The burden to prove forfeitability in a civil forfeiture proceeding is upon the government.
Justice Department Announces First Criminal Resolution Involving the Illicit Sale and Transport of Iranian Oil in Violation of U.S. SanctionsRead the Press Release
The Justice Department announced today the successful disruption of a multimillion-dollar shipment of crude oil by the Islamic Revolutionary Guard Corps (IRGC), a designated foreign terrorist organization, that was bound for another country. This is the first-ever criminal resolution involving a company that violated sanctions by facilitating the illicit sale and transport of Iranian oil and comes in concert with a successful seizure of over 980,000 barrels of contraband crude oil.
According to court documents, on April 19, Suez Rajan Limited pleaded guilty to conspiring to violate the International Emergency Economic Powers Act (IEEPA). On that same date, the company was sentenced by U.S. District Court Judge Carl J. Nichols for the District of Columbia to three years of corporate probation and a fine of almost $2.5 million. In addition, pursuant to a deferred prosecution agreement (DPA) and a seizure warrant issued by the U.S. District Court for the District of Columbia, Empire Navigation, the operating company of the vessel carrying the contraband cargo, agreed to cooperate and transport the Iranian oil to the United States – an operation which has now concluded. Empire Navigation incurred the significant expenses associated with the vessel’s voyage to the United States.
The contraband cargo is now the subject of a civil forfeiture action in the U.S. District Court for the District of Columbia. The United States’ forfeiture complaint alleges that the oil aboard the vessel is subject to forfeiture based on U.S. terrorism and money laundering statutes.
The complaint alleges a scheme involving multiple entities affiliated with Iran’s IRGC and the IRGC-Qods Force (IRGC-QF) to covertly sell and transport Iranian oil to a customer abroad. Participants in the scheme attempted to disguise the origin of the oil using ship-to-ship transfers, false automatic identification system reporting, falsified documents and other means. The complaint further alleges that the charterer of the vessel used the U.S. financial system to facilitate the transportation of Iranian oil.
The complaint further alleges that the oil constitutes the property of, or provided a “source of influence” over, the IRGC and the IRGC-QF, both of which have been designated by the United States as foreign terrorist organizations, and that the oil facilitated money laundering. The documents allege that profits from oil sales support the IRGC’s full range of malign activities, including the proliferation of weapons of mass destruction and their means of delivery, support for terrorism and both domestic and international human rights abuses.
Funds successfully forfeited with a connection to a state sponsor of terrorism may in whole or in part be directed to the U.S. Victims of State Sponsored Terrorism Fund.
Homeland Security Investigations Washington D.C. and FBI’s Minneapolis Field Office are investigating the cases.
Assistant U.S. Attorneys Stuart D. Allen and Rajbir S. Datta for the District of Columbia prosecuted the criminal case and they, along with Assistant U.S. Attorney Brian Hudak, are litigating the civil forfeiture case. On both actions, they received assistance from Paralegal Specialists Brian Rickers and Legal Assistant Jessica McCormick. Former Assistant U.S. Attorney Michael Grady participated in prior phases of the investigation. The Counterintelligence and Export Control Section of the National Security Division is also prosecuting and litigating these matters. The Money Laundering and Asset Recovery Section of the Criminal Division provided significant assistance in this matter. The Department thanks United Against Nuclear Iran for its valuable assistance.
A civil forfeiture complaint is merely an allegation. The burden to prove forfeitability in a civil forfeiture proceeding is upon the government.
Jamaican National Charged with Debt Relief ScamRead the Press Release
Sereika Savariau, also known as Sereika Savariau-Goodison, 36, of Jamaica, appeared in U.S. federal court today and was arraigned on an eight-count indictment charging her with creating a series of fraudulent debt relief companies that tricked U.S. victims into paying fees and disclosing personal identifying information sensitive information, and identity documents to obtain debt relief, which did not actually exist.
The announcement was made by U.S. Attorney Matthew M. Graves for the District of Columbia and Assistant Inspector General for Investigations Sally Luttrell of the Treasury Department, Office of Inspector General.
On Dec. 2, 2021, a federal grand jury returned an eight-count sealed indictment charging Savariau with one count of conspiracy to commit wire fraud affecting a financial institution, four counts of wire fraud affecting a financial institution and three counts of aggravated identity theft. The indictment alleges that between 2016 and 2018, Savariau conspired with others to profit from fees paid by victims of fraudulent debt relief companies. The indictment alleges that conspirators created and operated fraudulent businesses and websites that marketed and sold fraudulent debt relief services to members of the public. Conspirators fraudulently misrepresented that members of the public could apply for and obtains thousands of dollars’ worth of debt relief on their outstanding, unpaid bills in the form of grants, all in exchange for payment of a service processing fee. Conspirators also claimed that the purported debt relief was funded and administered by the U.S. government. Through their false representations, Savariau and her co-conspirators are alleged to have induced or attempted to induce victims throughout the United States to pay over a million dollars’ worth of service processing fees to Savariau and her co-conspirators via Western Union, Money Gram, PayPal and other payment mechanisms.
Savariau arrived in the D.C. metropolitan area on Thursday after being extradited from Jamaica. At today’s initial appearance, the Honorable Zia M. Faruqui ordered that she be held without bond pending her next hearing, which is scheduled for Sept. 20.
This case was investigated by the U.S. Department of Treasury’s Office of Inspector General, the Justice Department's Computer Crime and Intellectual Property Section, and the U.S. Attorney’s Office for the District of Columbia. The Justice Department’s Office of International Affairs provided valuable assistance in securing the arrest and extradition of Savariau.
The case is being prosecuted by Trial Attorneys Louisa Becker and Ashley Pungello of the Criminal Division's Computer Crime and Intellectual Property Section, and Assistant U.S. Attorney Kondi Kleinman for the District of Columbia.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
savariau_indictment_september_8th.pdfJamaican National Charged with Debt Relief ScamRead the Press Release
Defendant Extradited from Jamaica to Answer Eight-Count Indictment
WASHINGTON – Sereika Savariau, also known as Sereika Savariau-Goodison, 36, of Jamaica, appeared in U.S. federal court today and was arraigned on an eight-count indictment charging her with creating a series of fraudulent debt relief companies that tricked U.S. victims into paying fees and disclosing personal identifying information, sensitive information, and identity documents to obtain debt relief, which did not actually exist. The announcement was made by U.S. Attorney Matthew M. Graves and Sally Luttrell Assistant Inspector General for Investigations U.S. Department of Treasury, Office of Inspector General
On December 2, 2021, a federal grand jury returned an eight-count sealed indictment charging Savariau with one count of conspiracy to commit wire fraud affecting a financial institution, four counts of wire fraud affecting a financial institution, and three counts of aggravated identity theft. The indictment alleges that between 2016 and 2018, Savariau conspired with others to profit from fees paid by victims of fraudulent debt relief companies. The indictment alleges that conspirators created and operated fraudulent businesses and websites that marketed and sold fraudulent debt relief services to members of the public. Conspirators fraudulently misrepresented that members of the public could apply for and obtains thousands of dollars’ worth of debt relief on their outstanding, unpaid bills in the form of grants, all in exchange for payment of a service processing fee. Conspirators also claimed that the purported debt relief was funded and administered by the U.S. government. Through their false representations, Savariau and her co-conspirators are alleged to have induced or attempted to induce victims throughout the United States to pay over a million dollars’ worth of service processing fees to Savariau and her co-conspirators via Western Union, Money Gram, PayPal, and other payment mechanisms.
Savariau arrived in the D.C. metropolitan area on Thursday after being extradited from Jamaica. At today’s initial appearance, the Honorable Zia M. Faruqui ordered that she be held without bond pending her next hearing, which is scheduled for September 20, 2023.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This case was investigated by the U.S. Department of Treasury’s Office of Inspector General, the Department of Justice’s Computer Crime and Intellectual Property Section, and the U.S. Attorney’s Office for the District of Columbia. The Justice Department’s Office of International Affairs provided valuable assistance in securing the arrest and extradition of Savariau. The case is being prosecuted by Trial Attorneys Louisa Becker and Ashley Pungello, and Assistant U.S. Attorney Kondi Kleinman.
Individual Indicted and Arrested for Child Exploitation and Drug Trafficking Charges; Another Charged with Making False StatementsRead the Press Release
SAN JUAN, Puerto Rico – Homeland Security Investigations (HSI) and the Puerto Rico Crimes Against Children Task Force (PRCACTF), along with the Puerto Rico Police Bureau (PRPB) arrested Bryan Xavier Pérez Hernández, 26, from San Sebastián, PR, and Melanie Cruz Clivilles, 31, from Aguadilla, PR, for charges related to the death of 13-year-old female minor G.L.C.C.
According to court documents, Bryan Xavier Pérez Hernández attempted to induce, entice, and coerce a minor, that is, a 13-year-old female G.L.C.C., to engage in sexually explicit conduct for the purpose of producing child exploitation material. Pérez Hernández is also charged with possession with intent to distribute cocaine, conspiracy to distribute cocaine, and distribution of cocaine to a minor.
Melanie Cruz Clivilles, mother of G.L.C.C., is charged with lying to a federal law enforcement agent. The allegations are that Cruz Clivilles made a materially false, fictitious, and fraudulent statement and representation by falsely stating to a Task Force Officer of the United States Department of Homeland Security Investigations that she first met Bryan Xavier Pérez Hernández at the hospital on August 4, 2023, where he arrived with defendant’s deceased daughter G.L.C.C. The statement and representation was false because, as she then and there knew, because she had met Pérez Hernández at the latest in July of 2023, and had been with him during a meeting on August 3, 2023.
If convicted, Pérez Hernández faces a statutory minimum sentence of between15 and 30 years in prison for production of child pornography; and up to 40 years in prison for the drug trafficking charges. Defendant Cruz Clivilles is facing up to five years in prison for making false statements. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico; and Rebecca González-Ramos, Special Agent in Charge of Homeland Security Investigations made the announcement.
Homeland Security Investigations and the Puerto Rico Police Bureau are investigating the case.
Assistant U.S. Attorney Jenifer Hernández Vega, Chief of the Child Exploitation and Immigration Unit is prosecuting the case. The investigation continues.
For more information about HSI’s efforts to protect children from sexual predators, visit https://www.ice.gov/topics/iGuardians; and to denounce suspicious activities call 787-729-6969.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Illinois Family Members Plead Guilty to Kidnapping, Forced Labor and Conspiracy for Coercing Two Minors and a Third Victim in Years-Long Forced Labor SchemeRead the Press Release
Lorenza Domingo-Castaneda, 34, a Guatemalan national, pleaded guilty today in the Central District of Illinois to three counts of forced labor and two counts of conspiracy to commit forced labor. On Aug. 18, co-defendant Catarina Domingo-Juan, 37, also pleaded guilty to three counts of forced labor and two counts of conspiracy to commit forced labor. A third co-defendant, Domingo Francisco-Juan, 43, previously pleaded guilty on Aug. 30 to forced labor, conspiracy to commit forced labor, kidnapping and conspiracy to commit kidnapping.
According to court documents, the defendants, who are siblings, conspired to bring two minor victims from Guatemala to the United States to work in their homes between December 2015 and March 2021. The defendants compelled the victims to provide domestic services within the homes and to work outside the homes at local hotels and factories. The defendants used false promises of a better life and an education to gain the permission of the victims’ mothers for their minor daughters to travel to the United States to live with the defendants. Domingo-Castaneda and Domingo-Juan also compelled a third victim to work in their homes and outside their homes at local businesses. The defendants isolated the victims in their homes, restricted their communications with their family in Guatemala and subjected them to physical, verbal and psychological abuse, among other coercive means.
“Human trafficking — particularly compelling the labor and services of unaccompanied minors — cannot be tolerated.” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Traffickers deftly use the promise of America to lure adults and children into the United States from thousands of miles away, only to then turn around and reveal their promises were false as part of a coercive scheme to compel their labor. The Justice Department remains steadfast in identifying and prosecuting human traffickers who exploit vulnerable victims for their own financial benefit.”
“Human trafficking is a scourge that affects not only far-flung locales but our local communities as well,” said U.S. Attorney Gregory K. Harris for the Central District of Illinois. “Traffickers prey on vulnerable victims – including children – bringing them to the United States and entangling them in forced labor schemes. The Central District of Illinois is committed to prosecuting these crimes and further asks community members who are aware of any signs of such exploitation to pass that information on to law enforcement.”
“Labor traffickers only care about one thing — money,” said Special Agent in Charge Sean Fitzgerald of Homeland Security Investigations (HSI) Chicago. “Those subjected to domestic servitude are robbed of their dignity and freedom. Thankfully, these victims were rescued thanks to the efforts of law enforcement. Apprehending labor and human traffickers who take advantage of our most vulnerable and rescuing those exploited will always be a top priority for HSI.”
In accordance with the plea agreements, the defendants face penalties of 20 years up to life in prison as well as mandatory restitution. A federal district court judge will determine any penalty after considering the U.S. Sentencing Guidelines and other statutory factors.
HSI with the assistance of the Champaign Police Department, Champaign County Sheriff’s Office, U.S. Marshals Service and Champaign County State’s Attorney’s Office investigated this case.
Assistant U.S. Attorney Bryan Freres for the Central District of Illinois and Trial Attorney Kate Alexander of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Funding Awarded in Missouri for Domestic and Sexual Violence ServicesRead the Press Release
ST. LOUIS – The need for specialized legal services is both urgent and essential for survivors of domestic violence and sexual assault. These services provide interventions, such as securing restraining or protective orders, that are crucial for survivor safety. U.S. Attorney Sayler A. Fleming is proud to announce that the Department of Justice Office on Violence Against Women (OVW) awarded $869,540 to the Eastern District of Missouri to provide legal services and improve the effective coordination of justice systems impacting survivors of sexual assault, domestic violence, dating violence, and stalking.
• OVW awarded $719,540 under the Legal Assistance for Victims (LAV) Program to the Crime Victim Advocacy Center of St. Louis. The LAV Program addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking.
• OVW awarded $150,000 under the Domestic Violence Mentor Court Technical Assistance Initiative to St. Louis County. The initiative recognizes well-established specialized courts and enables them to guide newly established specialized courts and court-based programs that wish to significantly improve their responses to domestic violence cases and ensure victim safety and offender accountability.
“I’m very pleased that this money will be available for the vital work of supporting women who are the victims of domestic and other forms of violence, both in and out of the court system,” said U.S. Attorney Fleming.
“The Legal Assistance for Victims Grant, in conjunction with the Justice for Families Program and the Domestic Violence Mentor Court Technical Assistance Initiative, serve as a powerful multi-pronged strategy to transform the justice system's approach to supporting families affected by violence," stated OVW Director Rosemarie Hidalgo. "These grants enhance court-related programs, trauma-informed training, and resources, while also providing victims with specialized legal support. This includes assistance with securing protective orders and navigating complex family law matters. Collectively, these grants advance a more comprehensive approach, aimed at ensuring that survivors and their families don't merely navigate our legal system, but genuinely find a path to justice and safety.”
Four New Hampshire Men Charged in Connection with the Stalking of Two JournalistsRead the Press Release
BOSTON – Four New Hampshire men have been indicted by a federal grand jury in Boston for their roles in a conspiracy to harass and intimidate two journalists employed by New Hampshire Public Radio (NHPR). The alleged harassment and intimidation of the victims included the vandalism – on five separate occasions – of the victims’ homes and the home of one of the victims’ parents with bricks, large rocks and red spray paint.
The following defendants were indicted for conspiracy to commit stalking through interstate travel and/or the use of a facility of interstate commerce:
- Eric Labarge, 46, of Nashua, N.H.;
- Tucker Cockerline, 32, of Salem, N.H.;
- Michael Waselchuck, 35, of Seabrook, N.H.; and
- Keenan Saniatan, 36, of Nashua, N.H.
Labarge was arrested this morning and will appear in federal court in Boston this afternoon. Cockerline, Saniatan and Waselchuck were previously arrested and charged by criminal complaint on June 16, 2023 and remain in custody.
According to the indictment, after a year-long investigation, an NHPR journalist (Victim 1) published an article in March 2022 detailing allegations of sexual and other misconduct by a former New Hampshire businessperson, identified in the charging document as Subject 1. Another NHPR journalist (Victim 2) also contributed to the article, which appeared on NHPR’s website during and after March 2022. In response to this reporting, Labarge – who is alleged to be a close personal associate of Subject 1 – Saniatan, Cockerline and Waselchuck allegedly agreed to harass and intimidate Victims 1 and 2 and their immediate family members. Among other things, the indictment alleges that:
- On or about April 22, 2022, Labarge solicited Cockerline to vandalize Victim 1’s former residence in Hanover, N.H., using a brick and red spray paint. Thereafter, on the evening of April 24, 2022, Cockerline allegedly spraypainted the word “C*NT” in large red letters on the front door and allegedly threw a brick through an exterior window of the home;
- On or about April 22, 2022, Saniatan allegedly agreed to vandalize Victim 2’s home in Concord, N.H., and Victim 1’s parents’ home in Hampstead, N.H., using large rocks and red spray paint. Thereafter, on the evening of April 24, 2022, Saniatan allegedly spraypainted the word “C*NT” in large red letters on the front door and threw a large rock at the exterior of Victim 2’s home; and he allegedly threw a softball-sized rock through a front exterior window and spraypainted the word “C*NT” in large red letters on one of the garage doors of Victim 1’s parents’ home;
- On or about May 18, 2022, Labarge allegedly solicited Cockerline to vandalize Victim 1’s parents’ home in Hampstead, N.H., and Victim 1’s home in Melrose, Mass., using bricks and red spray paint. Cockerline, in turn, allegedly recruited Waselchuck to vandalize Victim 1’s residence; and
- Thereafter, on the evening of May 20, 2022, Cockerline allegedly spraypainted the word “C*NT” in large red letters on one of the garage doors of Victim 1’s parents’ home, and left a brick on the ground near the front door. Several hours later, Waselchuck allegedly threw a brick through an exterior window of Victim 1’s home and painted the phrase “JUST THE BEGINNING” in large red letters on the front of the house.
Each charge in the indictment carries a maximum sentence of up to five years in prison, three years of supervised release, a $250,000 fine and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy and Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division made the announcement today. Valuable assistance was provided by the Concord, Hampstead and Hanover, New Hampshire Police Departments, the Melrose, Massachusetts Police Department and the United States Attorney’s Office for the District of New Hampshire. Assistant U.S. Attorneys Jason A. Casey and Torey B. Cummings of the Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Four Defendants Sentenced on Federal Charges Stemming from Staged Motor Vehicle AccidentsRead the Press Release
Louisville, KY – Four defendants were sentenced this week for conspiracy to commit health care fraud. Two of the defendants were also sentenced for mail fraud, and one defendant was sentenced for money laundering.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Brian Jones of the FBI Louisville Field Office, Special Agent in Charge Bryant Jackson of the Internal Revenue Service, Criminal Investigation (IRS-CI) Cincinnati Field Office, U.S. Postal Inspector in Charge Lesley Allison of the Pittsburgh Division, and Director Juan Garrett of the Kentucky Department of Insurance made the announcement.
According to court documents, Joel Abad, 40, of Miami, Florida, Junis Peguero, 40, of Riverview, Florida, Carlos Vazquez, 57, of Louisville, Kentucky, Jose Cordoba Reira, 47, of Louisville, Kentucky, and Miguel Moreno-Cardenas, 55, of Louisville, Kentucky, conspired to recruit people to participate in fake automobile accidents and to obtain treatment at certain chiropractic clinics in Louisville, Kentucky, where insurance companies were billed for the treatment.
On September 7, 2023, Peguero was sentenced to 2 years and 7 months in prison, followed by a 3-year term of supervised release, for conspiracy to commit health care fraud and mail fraud.
On September 7, 2023, Vazquez was sentenced to 5-years’ probation for conspiracy to commit health care fraud.
On September 8, 2023, Reira was sentenced to 1 year and 2 months in prison, followed by a 2-year term of supervised release, for conspiracy to commit health care fraud and money laundering.
On September 8, 2023, Moreno-Cardenas was sentenced to 1 year and 2 months in prison, followed by a 2-year term of supervised release, for conspiracy to commit health care fraud and mail fraud.
All defendants were ordered to pay $343,832.41, jointly, and severally, in restitution. There is no parole in the federal system.
Joel Abad will be sentenced later.
The case was investigated by the FBI, IRS-CI, USPIS, and the Kentucky Department of Insurance.
Assistant U.S. Attorneys Joseph Ansari and Christopher Tieke prosecuted the case with assistance from health care fraud investigator Bob Masterson of the U.S. Attorney’s Office.
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Founder of Purported Artificial Intelligence-Driven Hedge Fund Charged with Defrauding ClientsRead the Press Release
A criminal complaint was unsealed earlier today in federal court in Brooklyn charging Mina Tadrus, the founder and chief executive officer of Tadrus Capital, LLC, with wire fraud in connection with a scheme to steal from clients of his purported hedge fund. Tadrus was arrested this morning in Tampa, Florida and made his initial appearance this afternoon in federal court in the Middle District of Florida where he was released on a $100,000 bond.
Breon Peace, United States Attorney for the Eastern District of New York, James Smith, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York Field Office (IRS-CI), announced the arrest and charges.
“As alleged, the defendant preyed on the Egyptian-American Coptic Christian community through a scheme built on false promises that his purported artificial intelligence-driven hedge fund would earn them guaranteed annual returns, when in reality he never invested a dime and just used new investor money to pay the guaranteed monthly returns and line his own pockets,” stated United States Attorney Peace. “This Office will vigorously prosecute those who, like the defendant, claim to use cutting edge technology but instead are committing old-fashioned fraud against the public to enrich themselves.”
Mr. Peace expressed his appreciation to the U.S. Securities and Exchange Commission’s New York Regional Office for its assistance in this matter.
According to the complaint, between September 2020 and July 2023, Tadrus, a former registered stockbroker, operated Tadrus Capital LLC. Tadrus promised clients he had met at a Coptic Christian Church in Brooklyn and elsewhere that its artificial intelligence-driven trading strategies would earn them guaranteed annual returns of 30% or more. Tadrus did not appear to have engaged in AI-based algorithmic trading. Instead, Tadrus used the investors’ funds to pay a few employees and purchase luxury goods and expensive meals for himself and make good on the fraudulent “returns” to new investors. In total, Tadrus misappropriated at least $5 million from his victims.
If you were a Tadrus Capital LLC client and would like to file a complaint, please visit www.iC3.gov. Please reference “Tadrus Capital” or “Mina Tadrus” in your complaint.
The charges in the complaint are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Tadrus faces up to 20 years in prison.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Genny Ngai and John O. Enright are in charge of the prosecution.
The Defendant:
MINA TADRUS
Age: 36
Tampa, FloridaE.D.N.Y. Docket No. 23-MJ-792
Former Woonsocket Couple Admit to Directing Conspiracy That Shipped Dozens of Kilos of Cocaine into Rhode IslandRead the Press Release
PROVIDENCE , RI – A former Woonsocket couple admitted to a federal judge in Rhode Island that they directed a conspiracy that, according to charging documents, was responsible for shipping dozens of packages containing kilograms of cocaine through the U.S. Postal Service from Puerto Rico to Rhode Island, announced United States Attorney Zachary A. Cunha.
As reflected in court documents, Efrain Colon-Garcia, 32, and his wife, Yaniris Colon-Senquiz, 46, led a conspiracy that was responsible for more than five dozen packages that were shipped into Rhode Island, each containing a kilogram or more of cocaine. Appearing in U.S. District Court in Providence on Thursday, the couple, who most recently resided in Kissimmee, FL, admitted that, as part of the conspiracy, they directed others to receive shipments of cocaine sent from Puerto Rico, and that they themselves received multiple shipments.
Colon-Garcia admitted to that court that he received at least nine packages at his residence and business addresses; Colon-Senquiz admitted to receiving at least four packages personally addressed to her. The defendants admitted to knowing that each package contained kilogram-quantities of cocaine.
Colon-Garcia and Colon-Senquiz each pleaded guilty to a charge of conspiracy to distribute and possess with intent to distribute cocaine, and a charge of unlawful use of a communication facility (U.S. Mail). They are scheduled to be sentenced on January 10, 2024. The defendants’ sentences will be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The cases are being prosecuted by Assistant United States Attorneys Christine D. Lowell and Stacey A. Erickson.
The matter was investigated by U.S. Postal Service Inspectors and members of the Rhode Island High Intensity Drug Trafficking Area Task Force.
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Former Administrative Manager for Covington Public Works Department Sentenced for Federal Wire Fraud and Aggravated Identity TheftRead the Press Release
COVINGTON, Ky. – The former administrative manager for the City of Covington Public Works Department, Allison Donaldson, 50, was sentenced Friday, by U.S. District Judge David Bunning, to 42 months in prison, following her convictions for federal wire fraud and aggravated identity theft.
According to her plea agreement, Donaldson was employed as an administrative manager for the Public Works Department, from 2005 until 2022, and had access to credit card information for the department. Her plea agreement established that, between February 2020 and continuing until February 2022, Donaldson knowingly defrauded the City of Covington, by using employee credit cards and making over $100,000 in purchases for herself and her home. Some of the purchases listed in the plea agreement include repairs for a Mercedes Benz, a Louis Vuitton agenda, a Chanel tote, Crate & Barrel furniture, and a remodel to her master bedroom and garage.
Under federal law, Donaldson must serve 85 percent of her prison sentence. Following her release from prison, she will then be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Brian Jones, Acting Special Agent in Charge, FBI, Louisville Field Office; Daniel Cameron, Kentucky Attorney General; and Spike Jones, Chief of the Kenton County Police Department, jointly announced the sentencing.
The investigation was conducted by the FBI, the Kentucky Attorney General’s Department of Criminal Investigation, and the Kenton County Police Department. The United States was represented by Assistant U.S. Attorney Kyle Winslow.
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Five-Time Convicted Felon Sentenced to 25 Years in Prison for Armed Meth TraffickingRead the Press Release
COLUMBUS, Ga. – A Columbus resident with a violent criminal history was sentenced to serve 25 years in prison after a federal jury convicted him on charges related to armed methamphetamine trafficking.
Karzarta Piett, 42, was sentenced to serve 300 months in prison to be followed by five years of supervised release by U.S. District Judge Clay Land on Sept. 5. Piett was convicted on Feb. 14 of possession of more than five grams of methamphetamine with intent to distribute and illegal possession of a firearm by a convicted felon following a two-day trial. Piett is not eligible for parole.
“Karzarta Piett is an armed repeat offender with a violent criminal past whose willful violation of the law has resulted in a significant federal prison sentence,” said U.S. Attorney Peter D. Leary. “Federal, state and local law enforcement are on the ground in Columbus and across the Middle District of Georgia working to remove the most dangerous individuals from the streets and help us hold them accountable for their crimes.”
“This meth dealer brazenly continued his drug trafficking activities despite being a five-time convicted felon,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division. “His conviction removes yet another dangerous criminal from our streets and sends a clear message to others who may choose to follow the same perilous path that DEA and its law enforcement partners are relentless in their pursuit.”
“This case exemplifies our commitment to prevent drugs and criminal activity from poisoning our communities,” stated ATF Special Agent in Charge Beau Kolodka. “It also sends a clear message that we will relentlessly pursue and prosecute members of these drug enterprises.”
"This sentencing sends a clear message that we will not tolerate violent criminals and drug traffickers in our community,” said Columbus Police Chief Stoney Mathis. “The collaboration between federal, state and local law enforcement agencies, as exemplified in this case, demonstrates our commitment to reducing violent crime and keeping our neighborhoods safe. We thank the dedicated officers and agents who worked tirelessly to bring this individual to justice.”
According to court documents and evidence presented at trial, Piett was pulled over by Columbus Police Department (CPD) officers for multiple traffic violations on Jan. 7, 2021. Piett was driving with a suspended license. Officers requested a K-9 unit after they noticed drug residue in the car, and a drug detection canine alerted to the presence of narcotics. A search of the defendant’s vehicle based on probable cause recovered two ounces of methamphetamine, a loaded pistol, a digital scale, plastic bags and approximately $1500 cash in the center console, plus more than $2,000 cash in Piett’s pocket. A check of the defendant’s criminal background revealed a lengthy criminal history spanning 20 years, with five prior felony convictions including two separate convictions for aggravated assault and convictions for kidnapping, false imprisonment, robbery, terroristic threats and multiple drug distribution charges.
Following Piett’s sentencing, he will be transferred to the Middle District of Alabama, where he is currently under indictment for conspiracy to distribute more than 50 grams of methamphetamine. An indictment is merely an allegation of criminal conduct and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being 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.
The case was investigated by DEA, ATF and the Columbus Police Department.
Assistant U.S. Attorney Crawford Seals prosecuted this case for the Government.
Fitchburg Man Sentenced to over Three Years in Prison for His Role in Wide-Ranging Drug ConspiracyRead the Press Release
BOSTON – A Fitchburg man was sentenced yesterday in federal court in Worcester for his role in a wide-ranging fentanyl, heroin, crack, and cocaine trafficking conspiracy.
Ivan Torres, 32, of Fitchburg, was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to 37 months in prison, followed by three years of supervised release. On March 10, 2023, Torres pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine.
According to court documents, following a fatal fentanyl overdose in September 2018, an investigation began into a drug trafficking organization in the Fitchburg area. Beginning in July 2019, court authorized interceptions of wire and electronic communications to and from telephones used by members and suppliers of the drug trafficking organization revealed that Torres was a cocaine dealer who supplied cocaine to the drug trafficking organization.
Over the course of the investigation, over 1.8 kilograms of a heroin/fentanyl mixture, over 3.6 kilograms of cocaine, over 50 grams of crack cocaine, a stolen, loaded handgun, drug manufacturing equipment and over $376,000 in U.S. currency were seized.
Torres is the 12th defendant to be sentenced in this case. All 18 defendants have been convicted – either by guilty plea or jury conviction following trial. The remaining convicted defendants are scheduled to be sentenced in September and October 2023.Acting United States Attorney Joshua S. Levy; Jodi Cohen, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police, made the announcement today. The Fitchburg and Lunenburg Police Departments, U.S. Postal Inspection Service and Massachusetts State Police provided valuable assistance. Assistant U.S. Attorney Alathea Porter of the Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Final two U.S. based defendants in Amazon bribery case sentencedRead the Press Release
Seattle – Two significant players in a scheme to bribe Amazon employees and contractors were sentenced today in U.S. District Court in Seattle to various federal charges for their scheme to corrupt the Amazon Marketplace with bribes, forged documents and false claims, announced Acting U.S. Attorney Tessa M. Gorman. “For over three years these defendants grew their business by cheating: bribing Amazon employees, forging documents, attacking competitors with fake reviews, and even posting cartoonish obscene gestures on competitors’ order pages. Now they face the consequences,” Acting U.S. Attorney Gorman said.
Joseph Nilsen, 33, was sentenced to 18 months in prison for conspiracy to commit wire fraud, conspiracy to commit violations of the Travel Act and filing a false tax return. Following prison, he is on three years of supervised release and must pay a $20,000 fine. Kristen Leccese, 34, was sentenced to two years of probation with six months of home confinement and a $4,000 fine for conspiracy to commit violations of the Travel Act. Both are New York residents.
At Nilsen’s sentencing hearing, U.S. District Judge Richard A. Jones said, “It’s almost as if you and the others treated Amazon as an evil empire subject to your attack…. You were a significant contributor to the overall operation… The only reason you stopped is because you were caught.”
The couple, who are engaged to be married, are the final two of five U.S. based defendants to be sentenced in the case. One defendant, based in India, remains a fugitive.
According to records filed in the case, Nilsen played a central role in the Amazon bribery scheme. He coordinated among the various defendants making it possible for a number of third-party sellers on Amazon to access the illegally obtained information and services. Nilsen was aided by Leccese and their associates conspiring to pay bribes to Amazon employees and contractors to misuse their access to Amazon networks and confidential information. They sought to obtain various unfair competitive advantages for certain merchants on the Amazon Marketplace by, among other things, interfering with Amazon’s ability to monitor the safety and authenticity of goods sold and impairing the accuracy of information posted on the Marketplace. Leccese forged documents for suppliers to gain access to restricted product categories by misrepresenting the source of goods. Nilsen and Leccese both manipulated customer reviews for competing products with Nilsen attacking other merchants’ postings and product listings.
Prosecutors asked Judge Jones to sentence Nilsen to 19 months in prison saying, “Nilsen provided the illegal services from Amazon insiders to a substantial number of his own clients, as well as a substantial number of Rosenberg’s clients. This coordinating role, where Nilsen was the linchpin connecting a large number of seller clients to Amazon insiders providing a wide array of illegal services, makes Nilsen the most culpable of the co-defendants…. This global conspiracy caused significant harm to consumers, competing small businesses, and Amazon.”
“Mr. Nilsen and Ms. Leccese were key participants in this bribery and fraud scheme.” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Their elaborate fraud, not only attempted to trick customers into using specific merchants, they also sought to discredit competitors of those merchants. I am grateful we’ve reached a resolution of this complex investigation and applaud the work of our investigators and partners.”
Nilsen also filed a false tax return. In 2018 and 2019 he failed to file tax returns on behalf of his Amazon consulting company, and in 2017 he filed a false tax return significantly underreporting his and his company’s actual taxable revenue. For tax year 2017, the tax loss to the U.S. is $44,178. Nilsen was ordered to pay that in restitution to the IRS today.
“Never underestimate the power of fraud…to get you in trouble,” said Special Agent in Charge Adam Jobes, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Fair business practices and an even playing field are fundamental to a healthy economy, and IRS:CI is committed to investigating those who bribe and cheat to try to get ahead.”
On February 11, 2022, defendant Rohit Kadimisetty, 29, of Northridge, California, was sentenced to ten months in prison and ordered to pay a $50,000 fine.
On February 10, 2023, Hadis Nuhanovic, of Acworth, Georgia, was sentenced to 20 months in prison. He was ordered to forfeit $100,000 as proceeds of the conspiracy, and to pay $160,453 in restitution to the Internal Revenue Service.
On July 14, 2023, Ephraim Rosenberg, 48, of Brooklyn, NY, was sentenced to two years of probation with one year of home confinement and a $100,000 fine.
Defendant Nishad Kunju, of Hyderabad, India, has not been arraigned on the indictment.
The case was investigated by the FBI, with assistance from the Internal Revenue Service-Criminal Investigations (IRS-CI), and the Department of Justice Office of International Affairs.
Federal Indictment Unsealed Charging 15 Defendants in $7.9 Million Dollar Conspiracy to Distribute Fentanyl and MethamphetamineRead the Press Release
KANSAS CITY, Mo. – A federal grand jury indicted 15 individuals for their roles in a conspiracy to distribute fentanyl and methamphetamine.
Jermel D. McCray, also known as “Bumpy,” 28; Eric M. Duncan, 28; Jermon D. McCray, also known as “Crowe,” 28; Devion M. Miles, also known as “Rooster,” 21; Armeer M. Asad, also known as “Low,” 33; Kyrie H. Fields, 28; Adonijah Q. Moody, 23; Gary T. Young, 31; Zamewick D. McCray, also known as “Buck,” 30; Dollahead M. Finney, 21; Dawn M. Keating, 52; Makenna J. Glynn, 23; Clayton M. Hammons, 21; Brandon M. Kline, 25; and Chase R. McNichols, 25, were charged in a 63-count superseding indictment returned under seal by a federal grand jury in Kansas City, Mo., on September 6, 2023. The indictment was unsealed and made public yesterday upon the arrest and initial court appearances of 1 of the 15 defendants.
In addition to the drug-distribution conspiracy, Jermel McCray is charged with possession with intent to distribute fentanyl, possession with intent to distribute methamphetamine, possession with intent to distribute cocaine, possession of a machine gun in furtherance of a drug trafficking crime, possession of a machine gun, and felon in possession of firearms.
Duncan is also charged with possession with intent to distribute fentanyl, possession with intent to distribute methamphetamine, distribution of fentanyl, distribution of methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, possession of a machine gun in furtherance of a drug trafficking crime, possession of a machine gun, and felon in possession of a firearm.
Jermon McCray, Zamewick McCray, and Miles are also charged with distribution of fentanyl.
Asad and Fields are also charged with distribution of fentanyl and distribution of heroin.
Moody is also charged with distribution of fentanyl, possession with intent to distribute methamphetamine, possession of a machine gun, and felon in possession of firearms.
Young is also charged with possession with intent to distribute methamphetamine, possession with intent to distribute fentanyl, and felon in possession of firearms.
Finney is also charged with distribution of fentanyl, distribution of methamphetamine, possession of with intent to distribute fentanyl, possession of machine guns in furtherance of a drug trafficking crime, and possession of machine guns.
Glynn is also charged with possession with intent to distribute fentanyl.
Hammons is also charged with possession with intent to distribute THC, possession with intent to distribute marijuana, possession of firearms in furtherance of a drug trafficking crime, and possession of a machine gun.
McNichols is also charged with distribution of fentanyl and possession with intent to distribute fentanyl.
The superseding indictment also contains a forfeiture allegation that would require the defendants to forfeit to the government $7,918,000, which represents the proceeds of the defendants’ alleged drug-distribution conspiracy.
The charges contained in this indictment are simply accusations and are not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Robert Smith and Jeffrey Q. McCarther. It was investigated by the Federal Bureau of Investigation, the Kansas City, Missouri Police Department, the Jackson County Drug Task Force, the Drug Enforcement Administration, the Overland Park, Kansas Police Department, Independence, Missouri Police Department, the Gladstone, Missouri Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Jackson County, Missouri Sheriff’s Office, the Johnson County, Kansas Drug Task Force, the Blue Springs, Missouri Police Department, Hays, Kansas Police Department, the Olathe, Kansas Police Department, and the Kansas City, Kansas Police Department.
Eastern Shore Man Sentenced to over Five Years in Federal Prison for Conspiring to Steal More Than $1.8 Million from a Salisbury BusinessRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Stephen Franklin, age 54, of Salisbury, Maryland, yesterday to 66 months in federal prison, followed by three years of supervised release, for a wire fraud conspiracy and aggravated identity theft in connection with the theft of more than $1.8 million from Shore Appliance Connection. Judge Chasanow also ordered that Franklin pay restitution in the full amount of the victims’ losses, which the parties stipulate is $1,850,488.94.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
Franklin was the chief operating officer of Accurate Optical, a chain of optometric shops on the Eastern Shore of Maryland and with the owners of Accurate Optical he also purchased East Coast Optometric, a chain of South Carolina optical shops. Franklin and co-defendant Duane G. Larmore met through the Salisbury Chamber of Commerce and became friendly.
As detailed in their plea agreements, Larmore was an employee at Shore Appliance Connection (“Shore Appliance”), located in Salisbury, Maryland, whose duties included maintaining the books and records for the company. The company was owned and operated by Owner #1 and Owner #2. From mid-September 2016 through about March 2020, Franklin conspired with others, including Larmore, to steal more than $1.8 million from Shore Appliance.
Specifically, Franklin and Larmore stole over $1 million from Shore Appliance to use for their own purposes, including to make investments and to pay business expenses for Franklin’s businesses, without the knowledge and consent of the owners of Shore Appliance. For example, Franklin convinced Larmore to invest $100,000 in an oil deal that promised quick and substantial returns. Those funds were ultimately returned to Shore Appliance because the name on the bank account did not match the named beneficiary on the wire transfer form completed by Franklin. Prior to the funds being returned and at Franklin’s urging, Larmore transferred another $100,000 to a purported attorney for the oil deal. Franklin also convinced Larmore to invest in other deals, including: in 2016, a $95,000 initial investment with a finance company in London, U.K., followed by another $300,000, plus funds for expenses and travel abroad; in 2018, an investment through W.S. of $35,000 and an investment through Gateway Capital of $50,000; and in 2019 - 2020, investments and expenses through I.P. and E. P.-S. to recover assets purportedly in the custody of U.S. Customs, part of the Department of Homeland Security. No investment paid any return to the schemers.
To conceal how much money had been removed from Shore Appliance and to obtain cash to invest, Franklin suggested that Larmore enter into factoring contracts. Franklin had experience with borrowing operating funds for his optical companies from factors and provided Larmore with the names and contact information for factoring companies. Factoring is a means by which businesses can obtain cash quickly by leveraging accounts receivable. With Franklin’s encouragement, Larmore applied for a factoring contract for Shore Appliance without the knowledge or approval of the owners, corporate directors, or officers of Shore Appliance. As detailed in the plea agreement, the factoring contracts provided cash deposits to Shore Appliance’s bank accounts but encumbered the accounts receivable of Shore Appliance and required payments and interest of more than $725,000.
To obtain contracts with factoring companies for Shore Appliance and to conceal the fact that the Shore Appliance owners were not aware of and had not approved the factoring contracts, the signatures of the owners were forged, and the fraudulent signatures were witnessed or notarized by Franklin. Further, Larmore and a female employee of Franklin’s posed as the owners in telephone conversations with representatives of the factoring companies to confirm their approval of the factoring contracts. In addition, to conceal Larmore’s embezzlements and the factoring agreements, Larmore caused Shore Appliance to draw on Shore Appliance’s lines of credit with two separate financial institutions to obtain another $200,000 in cash. As of March 2020, Shore Appliance still owed $208,394.92 in principal and interest on these lines of credit.
Finally, when Franklin’s business began having financial difficulties, at Franklin’s request, Larmore provided funds to Franklin to pay rent and employee salaries for the businesses, to rent a storage facility and to hire trucks to move equipment and office furniture when Accurate Optical was evicted from its Salisbury, Maryland office in July 2019. All the while, Franklin continued to suggest that Larmore put money into other investment schemes, which Larmore did.
In all, Larmore paid $739,295.28 of Shore Appliance’s funds, without the officers and owners’ knowledge or consent, to invest in fraudulent schemes that never paid any money back. Of that amount, $395,000 was moved through bank accounts controlled by Franklin. Franklin caused an additional loss of $171,548.67 by having Larmore transfer funds to Franklin or to Franklin’s companies. As a result of the conspiracy and efforts to conceal the losses, Shore Appliance lost an additional $731,250.07 in fees and other payments to factors and to factoring brokers. Shore appliance also paid interest of $208,395 from Larmore drawing on its bank lines of credit. For all of Franklin’s and Larmore’s conduct, actual cash losses to Shore Appliance totaled $1,850,488.94 and intended losses totaled $2,137,674.74.
Duane G. Larmore, age 48, of Salisbury, previously pleaded guilty to his role in the conspiracy and is awaiting sentencing.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Evelyn Lombardo Cusson, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach. For more information about resources available to report fraud, please visit https://www.justice.gov/usao-md/report-fraud.
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District Man Sentenced to 57 Months in Prison for Federal Firearms OffenseRead the Press Release
WASHINGTON – John Maurice West, 29, of Washington, D.C., was sentenced today to serve 57 months in prison on a federal firearms charge stemming from his possession of a loaded firearm on June 27, 2022, aboard a Metrorail train and in the 1700 block of 8th Street NW.
The announcement was made by U.S. Attorney Matthew M. Graves, Chief Michael Anzallo, of the Metro Transit Police Department, and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
West pleaded guilty on May 18, 2023, in the United States District Court for the District of Columbia, to one count of unlawful possession of a firearm and ammunition by a person convicted of a crime punishable by imprisonment for a term exceeding one year. He was sentenced by the Honorable Jia M. Cobb. Following his prison term, West will be placed on three years of supervised release.
According to court papers, on June 27, 2022, West threatened another man with a gun while aboard a Metrorail train at the Gallery Place–Chinatown Metro Station. The victim disembarked at the next station and reported the offense. Surveillance footage revealed that West exited the Metro at the Shaw–Howard University station and ran into the 1700 block of 8th Street NW, in the District’s Shaw neighborhood. Surveillance footage also depicted West in and around the entryway of an apartment building in that block moments before his arrest. Police canvassed the area and found a loaded, semi-automatic handgun concealed in a drainage pipe. Subsequent DNA testing and analysis linked both the handgun and its magazine to West.
Federal law prohibits West from possessing a firearm because, in 2014, he was convicted in the Superior Court of the District of Columbia of possession with intent to distribute cocaine while armed with a firearm.
West was arrested on June 27, 2022, and has remained in custody ever since.
In announcing the sentence, U.S. Attorney Graves, Chief Anzallo, and Acting Chief Smith commended the work of those who investigated the case from the Metro Transit and Metropolitan Police Departments. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Karla Nunez.
Finally, they commended the efforts of Assistant United States Attorneys Paul V. Courtney and Thomas G. Strong, who investigated and prosecuted the case.
Des Moines Man Sentenced to Six Years in Prison for Child Pornography OffenseRead the Press Release
DES MOINES, IA – A Des Moines man was sentenced Wednesday, September 6, 2023, to six years in prison following his guilty plea to receipt of child pornography.
According to court documents, over the course of several months in 2022, Matthew John Marcalus, 55, used Instagram to communicate with a fifteen-year-old child. During these conversations, Marcalus engaged in sexually explicit chats, and solicited and received photos of the child engaged in sexually explicit conduct. Marcalus also sent the child photos of Marcalus’s genitals. Eventually, law enforcement became involved and communicated with Marcalus while posing as the fifteen-year-old child. Officers arrested Marcalus when he arrived at a location to meet the child.
Following his prison term, Marcalus must also serve a ten-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Ankeny Police Department, the Iowa Division of Criminal Investigation, and the FBI Child Exploitation and Human Trafficking Task Force investigated the case. Assistant United States Attorney Ryan Leemkuil prosecuted the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorney’s Offices and the Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Defendant in Cold Case Arrested on Charges of Sexual AssaultRead the Press Release
WASHINGTON – Baltazar Gutierrez Carrillo, 50, of Ft. Washington, Maryland, was arrested Wednesday on charges stemming from a 2017 sexual assault of a stranger, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
According to court documents, in 2017, the 30-year old victim was visiting D.C. and socializing with friends. At some point, the victim parted ways with his friends and began walking to where he was staying. The defendant, Gutierrez Carrillo, who was a stranger to the victim, encountered him and sexually assaulted him in an alley. When the victim was able to get away, he reported immediately and obtained a sexual assault examination including a rape kit. The rape kit was tested and a foreign male profile was entered in CODIS with no results.
In 2023, MPD received notice of a DNA hit in a database linking defendant Gutierrez Carrillo to the 2017 rape kit. On July 12, 2023, the grand jury returned an indictment charging the defendant with one count of First Degree Sexual Abuse and one count of Second Degree Sexual Abuse. The defendant was brought to D.C. by the U.S. Marshals Service and, on September 6, 2023, was booked by MPD on the charges. On September 7, 2023, Gutierrez Carrillo was arraigned before the Honorable Anthony C. Epstein. A detention hearing is scheduled for September 29, 2023.
This case is being investigated by the Metropolitan Police Department with valuable assistance from the U.S. Marshal’s Service. It is being prosecuted by Assistant U.S. Attorney Amy Zubrensky.
Compassion and Opportunities Top Takeaways from Recent Job FairRead the Press Release
MIAMI – Putting community before self is the mindset of the Law Enforcement Coordination and Community Outreach Section (LEC/COS) of the U.S. Attorney’s Office for the Southern District of Florida. Everything it does—from food distributions to pre-K readings—is designed to improve people’s lives.
That was the case at the recent 305 Second Chance Job & Resource Fair at the Government Center in downtown Miami. Job seekers, many of whom were returning citizens and on probation, went from booth to booth getting job leads and information to make their transition easier. The fair was a collaboration between CareerSource South Florida and the U.S. Attorney’s Office.
LEC/COS staff provided resources that returning citizens could share with prospective employers.
“There are tax credits that a business can use to reduce its tax liability by up to $9,600 the first year if hiring returning citizens through the Work Opportunity Tax Credit Program,” said Law Enforcement Coordination Specialist Mark McKinney, LEC/COS. “There also is a federal bonding program that provides employers with insurance when hiring a returning citizen. Many employers may not know about these protections and incentives so it’s important to ensure returning citizens have this knowledge.”
LEC/COS staff also provided a Re-Entry Resource Guide with points of contact ranging from housing assistance and health care to mental health support and legal assistance. But even with all of the support in the world, it still can be incredibly difficult for returning citizens to find employment. One attendee, who’d served time for armed bank robbery, applied for entry-level positions with numerous national companies with no luck.
“They had interest in me until they saw my record,” he said. “After that, nothing.”
One thing that may help, another attendee mentioned, is if a returning citizen’s parole officer goes with them to the job interview to speak on the applicant’s behalf and tout the progress they’ve made. Helping a returning citizen get a leg up is good for everyone.
“There are so many roadblocks society puts up for people returning from prison,” said LEC/COS Chief J.D. Smith. “We have to do better. They’ve already served their time but we continue to punish them by withholding opportunities. It’s as if they have a life sentence.”
LEC/COS Community Outreach Specialist Corey Mackay said in difficult times it’s even more important to have compassion.
“I empathize with these job seekers,” said Mackay. “It’s hard enough for citizens with no criminal record to get a job so I can only imagine how frustrating it must be for returning citizens. Sometimes getting a job is about being in the right place at the right time and I hope this event can be someone’s right place/right time.”
Law Enforcement Coordination Specialist Mark McKinney and Community Outreach Specialist Corey Mackay assist area residents at a recent Job/Resource Fair at the Government Center in downtown Miami. This fair provided individuals and returning citizens with job leads and resources.
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Columbia Man Sentenced to over 7 Years in Federal Prison for Drug and Firearm ChargesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Melvin Roshad Simuel, 36, of Columbia, was sentenced to more than 7 years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition and possession with intent to distribute methamphetamine and marijuana.
Evidence presented to the court showed that in 2018, Simuel was arrested on three separate occasions for possession of firearms and distribution quantities of methamphetamine and marijuana. Two of the guns had been reported stolen, and Simuel was on probation for a state firearm conviction at the time of the 2018 incidents.
Federal law prohibits Simuel from possessing firearms and ammunition based on prior state court burglary and firearms convictions.
United States District Judge Sherri A. Lydon sentenced Simuel to 90 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Lexington County Sheriff’s Department (LCSD), the Columbia Police Department (CPD), and the Richland County Sheriff’s Department (RCSD). Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
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Beckley Man Pleads Guilty to COVID-19 Relief FraudRead the Press Release
BECKLEY, W.Va. – Mark William Bailey, 50, of Beckley, pleaded guilty today to theft of government monies, admitting he stole approximately $451,237.51 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents and statements made in court, on July 10, 2020, Bailey was the sole owner and president of RMR Delivery Service Inc. when he obtained an Economic Injury Disaster Loan (EIDL) for $150,000. The EIDL program was created by the CARES Act for eligible small businesses experiencing substantial financial disruptions due to the COVID-19 pandemic. EIDL proceeds can only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred.
Bailey sought two modifications of his EIDL, increasing the loan amount first to $500,000 and then to $2 million. To obtain each modification, Bailey certified that RMR Delivery Service Inc. would use all loan proceeds solely as working capital to alleviate economic injury caused by the pandemic. Bailey admitted that he fraudulently used approximately $403,768.04 of the EIDL proceeds for his own personal benefit from about March 1, 2022 through about October 20, 2022. Among other personal uses, Bailey purchased a garage and a personal vehicle with the EIDL proceeds.
In or around April 2020, Bailey also applied for and received a $110,032 loan through the Paycheck Protection Program (PPP). Also created by the CARES Act for qualifying small businesses, PPP loans were for job retention and certain other business expenses. Bailey admitted that he misappropriated $47,469.47 of the PPP loan to pay his personal mortgage on or about June 4, 2020.
Bailey is scheduled to be sentenced on January 12, 2024, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine. Bailey also owes $451,237.51 in restitution.
“The CARES Act offered an emergency lifeline amid a devastating pandemic, and Mr. Bailey saw this as an opportunity to enrich himself at the expense of taxpayers,” said United States Attorney Will Thompson. “I commend the thorough, collaborative and all-hands-on-deck approach by the National Aeronautics and Space Administration Office of Inspector General (NASA OIG), the United States Secret Service, the West Virginia State Police-Bureau of Criminal Investigations (BCI) and the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU).”
“NASA OIG is committed to investigating and holding accountable those who improperly obtain and use government loans,” said Special Agent in Charge Adelle Harris of the NASA Office of Inspector General’s Eastern Field Office. “I am proud of the exceptional teamwork of our federal and state law enforcement partners, the Pandemic Response Accountability Committee Fraud Task Force, and the USAO for the Southern District of West Virginia which resulted in today’s guilty plea.”
“We are committed in our office to protecting taxpayer dollars and holding those accountable who commit fraud,” said West Virginia State Auditor J.B. McCuskey. “The pandemic was challenging for everyone, especially our small businesses, and these loans were to help businesses survive, but unfortunately, we know that some took advantage of the billions of dollars flowing out of Washington. I would like to commend the investigative work by this task force, including our specialized accountants, who are cracking down on this abuse and returning taxpayer dollars to the people.”
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Erik S. Goes is prosecuting the case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who suffered the economic effects caused by the COVID-19 pandemic. On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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. 5:23-cr-131.
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Baltimore School Police Officer Facing Federal Charges for Overtime Fraud and Tax ViolationsRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Lawrence E. Smith, age 49, of Perry Hall, Maryland, for federal wire fraud related to allegations that he fraudulently obtained more than $215,000 in overtime pay and for attempting to avoid paying federal income taxes and filing a false tax return. The indictment was returned on September 7, 2023, and unsealed today upon Smith’s arrest.
The defendant is expected to have an initial appearance today in U.S. District Court in Baltimore before U.S. Magistrate Judge J. Mark Coulson at 2:15 today.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
Smith began working as a Baltimore City School Police Officer in 2005 and in 2016 was promoted to detective and put in charge of the School Police Overtime Unit. In this role, Smith managed the Overtime Unit and was responsible for the coordination and scheduling of School Police Officer overtime, including his own. During the COVID-19 pandemic, Smith was authorized to receive overtime pay to provide security for COVID testing sites and food sites set up at various Baltimore City Public School System schools and at Baltimore City Recreation and Parks community centers, as well as the COVID-19 hospital and homeless shelter.
According to the indictment, from January 2019 through August 2022, Smith fraudulently received overtime pay for hours for which he had not worked. The indictment alleges that Smith used his position as the Detective in charge of the Overtime Unit for School Police to assign himself to overtime shifts. Smith allegedly falsely claimed that he was working overtime as a School Police Officer for overtime shifts that required his physical presence when he was at home, running personal errands, at other locations socializing, coaching football, and out of state on vacation. The indictment seeks a money judgment of $215,352, alleged to be the proceeds of the fraud scheme.
In addition, the indictment alleges that Smith submitted Forms W-4 to his employer falsely claiming that he was exempt from federal income tax withholding when in fact, he was not entitled to claim exempt status. Further, Smith allegedly failed to file individual income tax returns for 2017, 2019, and 2020, and to report his wages and other income to the IRS. Finally, the indictment alleges that Smith filed a false individual tax return for tax year 2018.
If convicted, Smith faces a maximum sentence of 20 years in federal prison for each count of wire fraud; a maximum of five years in federal prison for each count of attempting to evade taxes; and a maximum of three years in federal prison for filing a false tax return. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI and IRS-CI for their work in the investigation and thanked the Maryland Office of Inspector General for Education, the Office of Inspector General for the City of Baltimore, and the Baltimore Police Department for their assistance. Mr. Barron thanked Assistant U.S. Attorneys Christine Goo and Matthew Phelps, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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