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28 August 2023
Lincare Holdings Agrees to Pay $29 Million to Resolve Claims of Overbilling Medicare for Oxygen Equipment in Largest-Ever Health Care Fraud Settlement in Eastern WashingtonRead the Press Release
Spokane, WA – Lincare Holdings, Inc., a Florida-based, wholly-owned subsidiary of German multinational chemical corporation Linde plc, has agreed to pay $29 million and perform extensive corrective actions to resolve allegations that it fraudulently overbilled Medicare and Medicare Advantage Plans for oxygen equipment, announced Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. The settlement announced today is the largest-ever health care fraud settlement in the Eastern District of Washington.
Lincare provides oxygen equipment to patients with respiratory ailments such as Chronic Obstructive Pulmonary Disease (COPD), including leasing oxygen tanks and home and portable oxygen concentrators to assist patients to breathe while in the home or traveling. Between 2012 and 2023, traditional Medicare (also known as Medicare Part B) reimbursed providers such as Lincare for the lease payments on oxygen equipment, but after three years of monthly lease payments, providers such as Lincare were required to continue to provide the oxygen equipment to the patient, but were not eligible for additional rental payments because Medicare had already reimbursed the provider for the full purchase price of the equipment. Under Medicare Advantage, also known as Medicare Part C, Medicare Beneficiaries may elect to receive their Medicare benefits through a private insurance plan offered by an insurance company, known as a Medicare Advantage Plan or an “MA Plan.” MA Plans are required to provide the same coverage and benefits as traditional Medicare, but they may set their own rules for reimbursement and beneficiary co-pays. Between 2016 and 2023, many Medicare Advantage Plans adopted the same requirement that limited providers like Lincare to three years of rental payments for oxygen equipment. After 3 years of payments, Lincare and other providers were required to continue to provide the equipment for the remainder of its useful life, but were not permitted to charge rental payments to MA Plans, or charge any co-payments to beneficiaries.
In the settlement announced today, Lincare admitted that it improperly billed Medicare, MA Plans, and beneficiaries for oxygen equipment rental payments and co-payments after it had already received 3 years of payments. Lincare admitted that it lacked adequate controls to ensure that MA Plans and beneficiaries were not improperly billed after 3 years of rental payments had already been received. Lincare additionally admitted that for traditional Medicare recipients, it had controls in place to prevent improper billing, but that those controls were not always effective. Finally, Lincare admitted that when Lincare employees raised concerns about Lincare’s billing practices, Lincare officials in its Regional Billing and Collections Office located in Spokane Valley, Washington, and at Lincare’s corporate headquarters in Clearwater, Florida, instructed them that Lincare would continue its billing practices. The settlement announced today resolved claims that Lincare’s conduct violated the False Claims Act.
“One of the most important responsibilities we have is protecting vulnerable members of our community such as the elderly,” said U.S. Attorney Waldref. “Elderly members of our community are among the most likely to be targeted by fraud, false billing scams, and abuse. This is one reason that the U.S. Attorney’s Office, the Department of Justice, and our law enforcement partners, have made combatting elder fraud and abuse a top priority. I am appalled by Lincare’s admitted past practice of putting profits before its obligations to patients and to the Medicare program, and in particular by Lincare’s admitted improper practice of wrongfully collecting co-pays from elderly beneficiaries on fixed incomes and with limited means. That said, I am heartened that, following our investigation, Lincare stepped up, accepted responsibility, and committed to make things right, not only by refunding overpayments received by Medicare, but by identifying and repaying any beneficiaries from which it improperly collected co-payments. I am also encouraged that Lincare has, as part of our settlement, entered into a five-year corporate integrity agreement to take significant corrective actions to ensure this conduct does not recur. As part of those corrective actions, Lincare has agreed to pay for and undertake an independent review of its claims and billing practices. Lincare has also designed and implemented new billing software and other reforms to ensure that Lincare bills appropriately going forward.”
“By billing Medicare Advantage Plans and their beneficiaries beyond the allowed three years, Lincare threatened the integrity of taxpayer-funded health care programs and prevented valuable resources from reaching their intended recipients,” said Steven J. Ryan, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “We are hopeful that with the implementation of a Corporate Integrity Agreement, Lincare will invest in controls to ensure that all plans are billed appropriately. HHS-OIG is committed to protecting federal health care programs from fraudulent and wasteful practices at the hands of providers.”
As part of the settlement, Lincare entered into a 5-year Corporate Integrity Agreement with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). That Agreement requires, among other things, that Lincare implement a robust compliance and reporting program as well as a number of significant billing reforms and practices. Additionally, the Agreement requires that Lincare retain, at its expense, independent experts to review its claims and billing practices to ensure they are appropriate.
Assistant United States Attorney Dan Fruchter stated that “I want to express special appreciation for the exceptional investigative and analytical work performed by HHS-OIG in this case. This was a complex case with novel issues, and this result would not have been possible without the hard work, investigative skill, and subject matter expertise of our partners with HHS-OIG. I also want to recognize the two whistleblowers who came forward and provided vital information, making this result possible. We will continue to work hand-in-glove with courageous whistleblowers, as well as HHS-OIG and our other law enforcement partners, to protect patients and the community from fraud and abuse that targets the elderly.”
According to court documents, the case began in May 2021, when two whistleblowers, former employees in Lincare’s center in Libby, Montana, filed a qui tam complaint under seal in the U.S. District Court for the Eastern District of Washington. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. In this case, according to court documents, the United States intervened in the action in July 2023, and subsequently reached this settlement. Pursuant to the settlement agreement, the relator will receive $5,655,000 of the total settlement amount.
The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington and the U.S. Department of Health and Human Services, Office of Inspector General, Seattle Field Office. Assistant United States Attorneys Dan Fruchter, Tyler H.L. Tornabene, and Frieda K. Zimmerman of the Eastern District of Washington handled this matter on behalf of the United States.
Case No: 2:21-cv-151-TOR (E.D. Wash.)
5._lincare_final_fully_executed_settlement_agreement.pdf 6._fully_executed_final_lincare_cia.pdfLas Vegas Man Sentenced for Drug TraffickingRead the Press Release
Salvador Nolasco Romero, age 39, of Las Vegas, Nevada, was sentenced to 188 months in prison for conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. U.S. District Court Judge Alan B. Johnson imposed the sentence on August 23, 2023, in Cheyenne, Wyoming.
Romero was indicted by a federal grand jury in Wyoming and found guilty following a jury trial in June of 2023. According to trial evidence and court documents, on April 2, 2022, a co-conspirator was driving erratically near Buffalo, Wyoming, drawing the attention of the Wyoming Highway Patrol. Pursuant to a lawful search of the SUV, troopers found 12 pounds of methamphetamine. The evidence revealed that Romero had rented the SUV in Las Vegas, provided the co-conspirator with 12 pounds of methamphetamine, and instructed the co-conspirator to transport the methamphetamine from Las Vegas to Minnesota for distribution. The trial evidence further showed that Romero had conspired with another individual in Mexico to transport the methamphetamine to Minnesota for distribution.
This crime was investigated by the Drug Enforcement Administration, Wyoming Highway Patrol and Wyoming Division of Criminal Investigation.
Case No. 22-00120-ABJ
Justice Department and Federal Trade Commission to Hold Workshops on the 2023 Draft Merger GuidelinesRead the Press Release
The Justice Department and Federal Trade Commission (FTC) will jointly host three public workshops to facilitate public dialogue on the 2023 Draft Merger Guidelines. These workshops will allow for a dynamic discussion about the Draft Guidelines to complement the written public comments now being submitted to the agencies.
The first workshop will take place on Sept. 5 from 1 p.m. to 4:15 p.m. ET. The half-day virtual workshop will feature two panel discussions with former enforcers, academics, economists, and practitioners regarding questions and issues on which public comment will be most useful. The agenda, list of speakers, and instructions to access the livestream will be available on the event page.
Additional information about the forthcoming workshops, including the agendas and panelists, will be available on the event page as it becomes available.
The Justice Department’s Antitrust Division and the FTC continue to encourage comments from the public on the Draft Guidelines, which may be submitted online now through Sept. 18, at www.regulations.gov/docket/FTC-2023-0043. The agencies will use the public comments to evaluate and update the draft before finalizing the Draft Guidelines.
The agencies protect competition through enforcement of the antitrust laws and other federal competition statutes. The Draft Guidelines describe how the agencies review mergers and acquisitions under the federal antitrust laws. Since 1968, the agencies have issued and revised Merger Guidelines to enhance transparency and promote awareness of how the agencies enforce the law with respect to mergers and acquisitions.
Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact the Antitrust Division at [email protected]. Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.
Justice Department Secures Agreement with Kansas Community College to Address Racial Discrimination and HarassmentRead the Press Release
The Justice Department announced today a settlement agreement with Highland Community College (HCC) in Kansas to resolve the department’s investigation into allegations that Black students, primarily student-athletes, living on HCC’s main campus experienced discriminatory treatment in many aspects of campus life, including discipline, housing and interactions with campus security officers. The complaints alleged that Black students were targeted for searches and surveillance and disciplined more severely than their white peers, resulting in their unfair removal from campus housing or even expulsion.
Under the settlement, the college will improve the fairness and transparency of disciplinary proceedings to prevent such discrimination. The agreement will also strengthen policies, procedures and training on campus security to promote consistent, non-discriminatory interactions between security personnel and students. In addition, the agreement requires HCC to strengthen policies, procedures and training to ensure an effective response to students’ complaints of racial discrimination.
“No college student should have their educational experience marred or disrupted by discrimination based on their race,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Community colleges are an important pathway to four-year institutions and the workforce, and federal law requires that their campuses, programs and activities be equally available to all without regard to race. The Justice Department is committed to protecting the civil rights of college students across the country to pursue a higher education in a safe, welcoming and discrimination-free environment.”
“The U.S. Department of Justice is tasked to serve as a defender of the U.S. Constitution, and the Fourteenth Amendment entitles all persons to equal protection under the law,” said U.S. Attorney Kate E. Brubacher for the District of Kansas. “When educational institutions are making decisions about student discipline, race and ethnicity are never relevant factors. Colleges and universities play a powerful role in shaping the development of young people, so it’s imperative that they help set the standard for creating environments where all students are treated with the same level of respect and fairness.”
The department opened its investigation in January 2022 under Title IV of the Civil Rights Act of 1964. The college cooperated fully throughout the investigation and expressed a desire before the investigation was concluded to make positive changes for its students by revising its policies and practices, training employees and expanding student engagement to improve campus climate. Under the agreement, Highland Community College will:
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Reform policies on discipline, campus security, housing and racial harassment;
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Revise policies and procedures for responding to students’ complaints of racial discrimination and ensure that complaints are handled by trained employees who understand their responsibilities;
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Ensure that the disciplinary process is fair and equitable, including by analyzing discipline data to ensure nondiscrimination;
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Train campus security and other staff on effective de-escalation techniques and non-coercive methods of gathering information;
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Survey and improve the climate and culture of HCC’s main campus and cultivate safe and welcoming spaces for Black students; and
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Ensure students’ equitable access to HCC’s educational programs and activities regardless of race.
Protecting students from harassment and other discrimination is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.
View a copy of the settlement agreement here.
Settlement Agreement-
Justice Department Secures Agreement with American Bank of Oklahoma to Resolve Lending Discrimination ClaimsRead the Press Release
The Justice Department announced a settlement agreement today to resolve allegations that American Bank of Oklahoma engaged in a pattern or practice of lending discrimination by redlining in Tulsa, Oklahoma. The affected area includes the historically Black neighborhoods that were the site of the 1921 Tulsa Race Massacre. This resolution is part of the department’s nationwide Combating Redlining Initiative launched by Attorney General Merrick B. Garland in October 2021.
Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of the residents in those communities.
“Providing equal access to credit is essential in every community, but the painful history of Tulsa makes this agreement particularly poignant because the redlined areas include historically Black neighborhoods that have endured the legacy of racial violence and the continuing effects of segregation and discrimination,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement will help expand investment in Black communities and communities of color in Tulsa and increase opportunities for homeownership and financial stability. Remedial provisions in the agreement will open up opportunities for building generational wealth while focusing on neighborhoods that bear the scars of the Tulsa Race Massacre. The Justice Department will continue to combat redlining and ensure equal access to credit for all Americans.”
“American Bank of Oklahoma engaged in the illegal practice of redlining and failed to serve the diverse members of our Tulsa community as they attempted to purchase homes,” said U.S. Attorney Clinton Johnson for the Northern District of Oklahoma. “These practices are often hard to identify and prosecute and I want to thank the Department of Justice’s Civil Rights Division for taking measures to correct these abhorrent business practices.”
The complaint filed in federal court today alleges that, from 2017 through at least 2021, American Bank of Oklahoma failed to provide mortgage lending services to majority-Black and Hispanic neighborhoods in the Tulsa metropolitan area. Specifically, the department alleges that all of American Bank of Oklahoma’s branches and loan production offices were located in majority-white neighborhoods, that the bank designated a service area that excluded all majority-Black and Hispanic-census tracts in the metropolitan area and that the bank failed to appropriately monitor and address fair lending risk.
As a result, the bank’s loan officers did not serve the credit needs of Black and Hispanic neighborhoods in and around Tulsa, and the bank’s actions reinforced and perpetuated segregated housing patterns because of race, color, or national origin. The complaint also alleges that bank employees, including executives and loan officers, sent and received emails on their work email accounts containing racial slurs and racist content.
Under the proposed consent order, which is subject to court approval, American Bank of Oklahoma has agreed to invest over $1.15 million to increase credit opportunities in neighborhoods of color in the Tulsa metropolitan area. The bank will invest at least $950,000 in a loan subsidy fund for residents of majority-Black and Hispanic neighborhoods in the Tulsa area; $100,000 for advertising, outreach and consumer education; and $100,000 for development of community partnerships to provide services that increase access to residential mortgage credit. The bank will also open a new community-oriented loan production office in the historically Black area of Tulsa; ensure at least two mortgage loan officers are dedicated to serving majority-Black and Hispanic neighborhoods in and around Tulsa; host at least six consumer financial education seminars per year, with translation and interpretation services in Spanish; and will employ a full-time director of community lending, who will oversee the continued development of lending in neighborhoods of color in the Tulsa area.
The department opened its investigation into American Bank of Oklahoma’s lending practices after receiving a referral from the Federal Deposit Insurance Corporation. The bank cooperated with the department’s investigation and worked with the department to resolve these allegations.
In October 2021, the department launched its Combating Redlining Initiative as a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since the initiative was launched, the department has announced eight redlining cases and settlements and secured $89 million in relief for communities of color that have been victims of lending discrimination across the country.
More information about the department’s fair lending enforcement can be found at www.justice.gov/crt/fair-lending-program. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
Complaint
Consent OrderJustice Department Secures Agreement with American Bank of Oklahoma to Resolve Lending Discrimination ClaimsRead the Press Release
TULSA, Okla. – – The Justice Department announced today a settlement agreement to resolve allegations that American Bank of Oklahoma engaged in a pattern or practice of lending discrimination by redlining in Tulsa, Oklahoma. The affected area includes the historically Black neighborhoods that were the site of the 1921 Tulsa Race Massacre.
This resolution is part of the department’s nationwide Combating Redlining Initiative launched by Attorney General Merrick B. Garland in October 2021.
Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of the residents in those communities.
“Providing equal access to credit is essential in every community, but the painful history of Tulsa makes this agreement particularly poignant because the redlined areas include historically Black neighborhoods that have endured the legacy of racial violence and the continuing effects of segregation and discrimination,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This agreement will help expand investment in Black communities and communities of color in Tulsa and increase opportunities for homeownership and financial stability. Remedial provisions in the agreement will open opportunities for building generational wealth while focusing on neighborhoods that bear the scars of the Tulsa Race Massacre. The Justice Department will continue to combat redlining and ensure equal access to credit for all Americans.”
“American Bank of Oklahoma engaged in the illegal practice of redlining and failed to serve the diverse members of our Tulsa community as they attempted to purchase homes,” said U.S. Attorney Clinton Johnson for the Northern District of Oklahoma. “These practices are often hard to identify and prosecute and I want to thank the Department of Justice’s Civil Rights Division for taking measures to correct these abhorrent business practices.”
The complaint filed in federal court today alleges that, from 2017 through at least 2021, American Bank of Oklahoma failed to provide mortgage lending services to majority-Black and Hispanic neighborhoods in the Tulsa metropolitan area. Specifically, the department alleges that all American Bank of Oklahoma’s branches and loan production offices were located in majority-white neighborhoods, that the bank designated a service area that excluded all majority-Black and Hispanic-census tracts in the metropolitan area, and that the bank failed to appropriately monitor and address fair lending risk.
As a result, the bank’s loan officers did not serve the credit needs of Black and Hispanic neighborhoods in and around Tulsa, and the bank’s actions reinforced and perpetuated segregated housing patterns because of race, color, or national origin. The complaint also alleges that bank employees, including executives and loan officers, sent and received emails on their work email accounts containing racial slurs and racist content.
Under the proposed consent order, which is subject to court approval, American Bank of Oklahoma has agreed to invest over $1.15 million to increase credit opportunities in neighborhoods of color in the Tulsa metropolitan area. The bank will invest at least $950,000 in a loan subsidy fund for residents of majority-Black and Hispanic neighborhoods in the Tulsa area; $100,000 for advertising, outreach, and consumer education; and $100,000 for development of community partnerships to provide services that increase access to residential mortgage credit. The bank will also open a new community-oriented loan production office in the historically Black area of Tulsa; ensure at least two mortgage loan officers are dedicated to serving majority-Black and Hispanic neighborhoods in and around Tulsa; host at least six consumer financial education seminars per year, with translation and interpretation services in Spanish; and will employ a full-time director of community lending, who will oversee the continued development of lending in neighborhoods of color in the Tulsa area.
The department opened its investigation into American Bank of Oklahoma’s lending practices after receiving a referral from the Federal Deposit Insurance Corporation. The bank cooperated with the department’s investigation and worked with the department to resolve these allegations.
In October 2021, the department launched its Combating Redlining Initiative as a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since the initiative was launched, the department has announced eight redlining cases and settlements and secured $89 million in relief for communities of color that have been victims of lending discrimination across the country.
More information about the department’s fair lending enforcement can be found at www.justice.gov/crt/fair-lending-program. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
Complaint & Exhibits
Consent Order
Justice Department Files Sexual Harassment Lawsuit Against Owner, Manager, and Maintenance Worker of California Rental PropertiesRead the Press Release
The Justice Department announced today that it has filed a lawsuit against Javier Salazar Jr., Javier Salazar Sr. and Ricardo Covarrubias, a maintenance worker, the manager and the owner, respectively, of rental properties in Bakersfield, California, alleging sexual harassment and retaliation in violation of the Fair Housing Act.
The lawsuit, filed in the U.S. District Court for the Eastern District of California, alleges that Javier Salazar, Jr., a maintenance worker, sexually harassed a female tenant from December 2018 through March 2019 by repeatedly asking the tenant to engage in sexual acts with him, asking her to be in a relationship with him, describing the sexual acts he wished to engage in with her and persistently commenting on her appearance. According to the complaint, on two occasions, Javier Salazar Jr. touched the tenant’s body without her consent, and surreptitiously took digital photographs of framed print pictures in her home of her and her daughter. The tenant reported Salazar Jr.’s conduct to Salazar Sr., who was both the property manager and Salazar Jr.’s father. After she reported the harassment and threatened to contact a lawyer or the police if it continued, the Salazars refused to fix a leaking gas line in her dwelling, causing her to go without heat for one month and consequently forcing her to move out. The complaint also alleges that Covarrubias, the property owner, is vicariously liable for the Salazars’ conduct because they were his agents when they engaged in sexual harassment and retaliation.
“Sexual harassment in rental housing preys on tenants who are especially vulnerable, including those who rely on their housing provider for critical maintenance services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to holding accountable any person in the housing sector who sexually harasses, assaults or retaliates against tenants, from the housing owner to the maintenance worker. A home should be a place of refuge and sanctity, not sexual assault and exploitation, and we will continue to use the Fair Housing Act to hold violators accountable.”
“For four months this tenant refused the repeated sexual advances by the maintenance worker at her rental home, and when she reported the sexual harassment, she faced retaliation,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “The actions of Salazar Jr. and the failure or refusal of Salazar Sr. and Covarrubias to act on the tenant’s behalf caused her harm and distress. The U.S. Attorney’s Office will hold accountable any landlord who enables or engages in sexual harassment in violation of the Fair Housing Act.”
“Preying on renters who have few housing options is abhorrent and illegal,” said Principal Deputy Assistant Secretary Demetria McCain of the Department of Housing and Urban Development (HUD)’s Office of Fair Housing and Equal Opportunity. “HUD will continue to work with DOJ to enforce the law and protect tenants.”
Today’s lawsuit arose from a complaint that the former tenant filed with HUD. After HUD investigated the complaint, it issued a charge of discrimination, and the matter was referred to the Justice Department. The lawsuit seeks monetary damages to compensate the victim and a court order barring future discrimination.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the Initiative in October 2017, the Justice Department has filed 34 lawsuits alleging sexual harassment in housing.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment by Javier Salazar Jr., or at rental dwellings owned or managed by Ricardo Covarrubias or Javier Salazar Sr., or who have other information that may be relevant to this case, should call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or submit a report online.
Individuals can also report sexual harassment and other forms of housing discrimination by contacting HUD at 1-800-669-9777 or by filing a HUD complaint online.
Salazar complaintJustice Department Files Sexual Harassment Lawsuit Against Owner, Manager, and Maintenance Worker of Bakersfield Rental PropertiesRead the Press Release
The Justice Department announced today that it has filed a lawsuit against Javier Salazar Jr., Javier Salazar Sr., both of Bakersfield; and Ricardo Covarrubias, of Van Nuys; a maintenance worker, manager, and owner, respectively, of rental properties in Bakersfield, alleging sexual harassment and retaliation in violation of the Fair Housing Act.
The lawsuit, filed in the U.S. District Court for the Eastern District of California, alleges that Javier Salazar, Jr., a maintenance worker, sexually harassed a female tenant from December 2018 through March 2019 by repeatedly asking the tenant to engage in sexual acts with him, asking her to be in a relationship with him, describing the sexual acts he wished to engage in with her, and persistently commenting on her appearance. According to the complaint, on two occasions Javier Salazar Jr. touched the tenant’s body without her consent, and surreptitiously took digital photographs of framed print pictures in her home of her and her daughter. The tenant reported Salazar Jr.’s conduct to Salazar Sr., who was both the property manager and is Salazar Jr.’s father. After she reported the harassment and threatened to contact a lawyer or the police if it continued, the Salazars refused to fix a leaking gas line in her dwelling, causing her to go without heat for one month and consequently forcing her to move out. The complaint also alleges that Covarrubias, the property owner, is vicariously liable for the Salazars’ conduct because they were his agents when they engaged in sexual harassment and retaliation.
“For four months this tenant refused the repeated sexual advances by the maintenance worker at her rental home, and when she reported the sexual harassment, she faced retaliation,” said U.S. Attorney Phillip A. Talbert. “The actions of Salazar Jr. and the failure or refusal of Salazar Sr. and Covarrubias to act on the tenant’s behalf caused her harm and distress. The U.S. Attorney’s Office will hold accountable any landlord who enables or engages in sexual harassment in violation of the Fair Housing Act.”
“Sexual harassment in rental housing preys on tenants who are especially vulnerable, including those who rely on their housing provider for critical maintenance services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to holding accountable any person in the housing sector who sexually harasses, assaults or retaliates against tenants, from the housing owner to the maintenance worker. A home should be a place of refuge and sanctity, not sexual assault and exploitation, and we will continue to use the Fair Housing Act to hold violators accountable.”
“Preying on renters who have few housing options is abhorrent and illegal,” said Principal Deputy Assistant Secretary Demetria McCain of the Department of Housing and Urban Development’s Office of Fair Housing and Equal Opportunity. “HUD will continue to work with DOJ to enforce the law and protect tenants.” Today’s lawsuit arose from a complaint that the former tenant filed with the HUD. After HUD investigated the complaint, it issued a charge of discrimination, and the matter was referred to the Justice Department. The lawsuit seeks monetary damages to compensate the victim and a court order barring future discrimination.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the Initiative in October 2017, the Justice Department has filed 34 lawsuits alleging sexual harassment in housing.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment by Javier Salazar Jr., or at rental dwellings owned or managed by Ricardo Covarrubias or Javier Salazar Sr., or who have other information that may be relevant to this case, should call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or submit a report online.
Individuals can also report sexual harassment and other forms of housing discrimination by contacting HUD at 1-800-669-9777 or by filing a HUD complaint online.
Justice Department Awards over $21 Million in Grants to State of Louisiana to Enhance Crime Victim Services and Compensation PaymentsRead the Press Release
U.S. Attorney Ronald C. Gathe, Jr. announced that the State of Louisiana has received $21,243,422 from the Department of Justice’s Office of Justice Programs and its component, the Office for Victims of Crime, to enhance crime victim services in the State and to enhance State compensation payments to eligible crime victims. Victims of Crime Act (VOCA) compensation funds provide financial assistance to Federal and State victims of crime. The funds are typically awarded by the State to local community-based organizations that provide direct services to crime victims.
The recipient of this award, the Louisiana Commission on Law Enforcement, is a foundation located in Baton Rouge dedicated to improving the operations of the criminal justice and juvenile justice systems and to promoting public safety by providing progressive leadership and coordination within the criminal justice community.
For more information about this award, please contact the OJP Office of Communications at 202-307-0703 or [email protected].
Jury Convicts Two Men of Murder, Drug Trafficking, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man and a Crowder, Mississippi, man were convicted by a federal jury today for their roles in a drug-trafficking conspiracy that included two murders.
Shawn Burkhalter, also known as “Deuce,” 34, of Kansas City, and Joshua Nesbitt, also known as “T,” 29, of Crowder, each were found guilty of two counts of murder resulting from the use of a firearm in furtherance of a crime of violence and a drug-trafficking crime, and one count of murdering a potential witness.
Burkhalter and Nesbitt also each were found guilty of one count of conspiracy to distribute cocaine and marijuana, one count of possessing cocaine with the intent to distribute, one count of possessing marijuana with the intent to distribute, one count of robbery, two counts of discharging a firearm in furtherance of a crime of violence and a drug-trafficking crime, one count of brandishing a firearm in furtherance of a crime of violence, one count of being felons in possession of a firearm, one count of conspiracy to commit witness and evidence tampering, and one count of evidence tampering. Additionally, Burkhalter was found guilty of one count of witness and evidence tampering.
Under federal statutes, Burkhalter and Nesbitt are subject to life in federal prison without parole.
Evidence introduced during the trial indicated that Burkhalter and Nesbitt participated in a conspiracy to distribute cocaine and marijuana from 2008 to Feb. 20, 2018.
On Sept. 10, 2015, Burkhalter and Nesbitt stole cocaine from Danny Lamont Dean, and in the process of that robbery, shot and killed Dean with a Rock River Arms AR-15, 5:56-caliber semi-automatic rifle.
On Oct. 4, 2015, Nesbitt and others stole marijuana from Anthony Dwayne Johnson, and in the process of that robbery, Nesbitt shot and killed Johnson with the same Rock River Arms AR-15, 5:56-caliber semi-automatic rifle, all of which was at the direction of Burkhalter.
Both of those murders were committed “willfully, deliberately, maliciously, and with premeditation and malice aforethought, and in the perpetration of, and attempt to perpetrate, a robbery,” as charged in the indictment. The indictment further charged that Johnson’s murder was committed as part of a conspiracy to prevent him from testifying before a federal grand jury or federal court or communicating with a federal law enforcement officer.
The witness tampering conspiracy also included a murder threat against another person, identified in court documents as “Witness #1,” to cause that person to help conceal the AR-15 rifle used to murder Johnson and Dean, so that it could not be used as evidence. Conspirators attempted to hide the murder weapon from federal investigators.
Burkhalter and Nesbitt robbed a Kansas City, Mo., business on Sept. 8, 2015, brandishing the same AR-15 rifle.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for six hours before returning guilty verdicts to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, Aug. 7, 2023.
Sentencing hearings will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Co-defendants Sharika Hooker and Autry Hines, both of Kansas City, Mo.; Joslyn Lee, also known as “Bless,” and Nickayla Jones, both of Blue Springs, Mo.; Rachel Ryce of Raytown, Mo.; and Anthony Peltier, also known as “A-1,” of Lawrence, Kansas, have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and David Wagner. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Israeli National in U.S. on Work VISA Sentenced for RapeRead the Press Release
TULSA Okla. – An Israeli national on a work VISA from Denver was sentenced to more than 4 years in federal prison for aggravated sexual abuse by force and threat in Indian County announced U.S. Attorney Clint Johnson.
U.S. District Judge Keith Starrett sentenced Yakir Yakoz Zofi, 33, to four years and six months followed by five years of supervised release. Judge Starrett further ordered Zofi to pay restitution.
“Zofi is a foreign national who traveled to Bartlesville, while working in another state, and forcibly violated a member of our community,” said U.S. Attorney Clint Johnson. “I want to thank the victim for having the strength to pursue justice in this case.”
Zofi had traveled to the victim’s home on November 21, 2021, for a date. On July 8, 2022, Zofi pleaded guilty to aggravated sexual assault and admitted that he held the victim down and forcibly raped her.
Zofi will remain in the custody of the U.S. Marshal Service pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. After serving his sentence, Zofi faces deportation and a permanent ban from re-entry to the United States.
The Bartlesville Police Department and the FBI investigated the case.
Assistant U.S. Attorney Aaron Jolly and Steven Briden prosecuted the case.
Hyde Park Woman Pleads Guilty to Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Hyde Park woman pleaded guilty in federal court in Boston to her role in a wide-ranging fentanyl trafficking conspiracy.
Erika Prado, 32 pleaded guilty on Aug. 17, 2023 to one count of conspiracy to distribute and to possess with intent to distribute fentanyl. U.S. District Court Judge Angel Kelley scheduled sentencing for Nov. 28, 2023. In December 2022, Prado was indicted along with three other co-conspirators. Prado pleaded guilty to a Superseding Information.
According to the charging documents, beginning in or around September 2022, Prado began to work for co-defendant Quenty Ogando –initially cleaning Ogando’s Mattapan apartment and allegedly later counting and packaging fentanyl pills that had been made at the apartment using a pill press. It is alleged that the pills, which Prado packaged for shipment, were often picked up at the apartment by other individuals.
On or about Nov. 22, 2022, a search of Ogando’s Mattapan apartment allegedly revealed over 20 kilograms of fentanyl pills in various colors, over 20 kilograms of loose fentanyl powder, numerous packages and mailing labels, three industrial grade pill presses as well as heroin and cocaine.Prado’s co-defendants have pleaded not guilty and are pending trial.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Acting Special Agent in Charge for Homeland Security Investigations, in New England; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division made the announcement today. The Boston Police Department, the U.S. Postal Inspection Service, the Massachusetts State Police and United States Customs and Border Protection provided valuable assistance. Assistant U.S. Attorneys Jennifer Zacks and J. Mackenzie Duane of the Narcotics & Money Laundering Unit is prosecuting the case.The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Huntington Man Pleads Guilty to Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – Darrail Antoine Pulley, 24, of Huntington, pleaded guilty today to distribution of fentanyl.
According to court documents and statements made in court, on March 17, 2023, Pulley sold approximately 1.39 grams of fentanyl to a confidential informant in an alley behind a residence on the 1800 block of Ninth Avenue in Huntington.
Pulley is scheduled to be sentenced on November 27, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-41.
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Houma Man Sentenced for failure to Account for and Pay Federal TaxesRead the Press Release
NEW ORLEANS, LOUISIANA – RENE CLEMENT (“CLEMENT”), age 76, of Houma, Louisiana, was sentenced on August 25, 2023 in United States District Court for failing to account for and pay federal income taxes and Federal Insurance Contributions Act (“FICA”) taxes, in violation of Title 26, United States Code, Section 7202, announced United States Attorney Duane A. Evans.
According to court documents, CLEMENT owned a company named Vinyl Products, LLC. Between 2014 and 2018, CLEMENT withheld taxes from employees of Vinyl Products but kept the money instead of paying it to the IRS. In total, CLEMENT failed to pay approximately $750,368.68 in taxes for Vinyl Products.
U.S. District Court Judge Ivan L.R. Lemelle sentenced CLEMENT to four years of probation, during which time he must complete seventy-five hours of unpaid community service. CLEMENT was ordered to pay restitution in the amount of $28,809.73. Judge Lemelle also imposed a mandatory special assessment fee of $100.00.
The U.S. Attorney’s Office would like to acknowledge the work of the Internal Revenue Service on this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni of the Financial Crimes Unit.
Gallup Man Pleads Guilty to Distribution and Possession of Child PornographyRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the Federal Bureau of Investigation’s Albuquerque Field Office, announced today that Ervinson Yazzie pleaded guilty to one count each of distribution of visual depictions of minors engaged in sexually explicit conduct and possession of visual depictions of minors engaged in sexually explicit conduct. Yazzie, 34, of Gallup, will remain on conditions of release pending sentencing, which has not been scheduled.
According to court documents, on October 10, 2018, the Internet Crimes Against Children Unit of the New Mexico Attorney General’s Office received a tip from the National Center for Missing and Exploited Children (NCMEC). The tip was originally submitted to NCMEC by Facebook. The tip alleged that Yazzie uploaded and sent one file of child sexual abuse material (CSAM) to another Facebook user.
During the resulting investigation, agents determined that Yazzie had sent approximately 90 images of CSAM to another Facebook user on September 14, 2018. On December 21, 2020, the FBI conducted an interview of Yazzie at his residence. During the interview, Yazzie indicated he had found and downloaded the CSAM from the internet and possessed more images on a hard drive. On the hard drive, the FBI located 90 images and 28 videos of CSAM.
In the plea agreement, Yazzie admitted that he distributed 96 images of CSAM through Facebook messenger and that he possessed approximately 28 videos and 90 images depicting CSAM on a hard drive.
At sentencing, Yazzie faces up to 20 years in prison. Upon his release from prison, Yazzie will be subject to up to lifetime supervised release and must register as a sex offender.
The Gallup Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the New Mexico Attorney General’s Office and the New Mexico Regional Computer Forensics Lab.
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Franklin County, Missouri Man Indicted on Child Sex ChargeRead the Press Release
ST. LOUIS – A man from Franklin County, Missouri has been accused of filming a sex act with a child in June.
Brandon Daniel Espinoza, 19, made his first appearance in U.S. District Court in St. Louis Friday and pleaded not guilty to a charge of sexual exploitation of a child. He was indicted August 23.
The indictment accuses Espinoza of filming a sex act with a 5-year-old boy in June.
The charge carries a mandatory minimum prison sentence of 15 years in prison and a maximum of 30 years.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by Homeland Security Investigations and the Warren County Sheriff's Department. Assistant U.S. Attorney Nathan Chapman is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Fountain Inn Man Convicted by a Jury and Sentenced to 17 Years in Federal Prison for Gun and Drug OffensesRead the Press Release
GREENVILLE, SOUTH CAROLINA — Larry Anthony Ladson, Sr., 52, of Fountain Inn, was sentenced to 17 years in federal prison after a jury found him guilty of federal gun and drug offenses.
Ladson was convicted of being a felon in possession of a firearm, possessing with intent to distribute controlled substances including methamphetamine, cocaine, crack cocaine, and marijuana, and possessing firearms in furtherance of his drug trafficking crimes.
Evidence presented to the jury and the court showed that in January of 2020, officers with the Fountain Inn Police Department and deputies with the Greenville County Sheriff’s Office went to Ladson’s trailer to serve search and arrest warrants in connection with a violent crime. Upon entering the trailer, officers saw drugs in plain view, and after securing a search warrant, deputies found methamphetamine, crack cocaine, and marijuana, as well as baggies, scales, cash, and other items indicative of drug trafficking. Deputies also discovered a loaded revolver in Ladson’s bedroom, which had previously been reported stolen. Ladson was charged by the state, but after being released on bond, law enforcement learned that he went right back to selling drugs.
Investigators with the Fountain Inn Police Department, the Greenville County Drug Enforcement Unit (DEU), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted surveillance and observed significant traffic to and from Ladson’s trailer. They also stopped and recovered drugs from several of Ladson’s customers. On September 9, 2020, law enforcement executed another search warrant at Ladson’s home. Once again, they found illegal drugs, cash, baggies, scales, and other tools of the drug trafficking trade. They also discovered a loaded gun hidden under Ladson’s pillow. After a police K9 alerted to an area near Ladson’s bedroom closet, investigators found a safe in a hidden compartment that had been cut into the floor. The safe contained significant amounts of methamphetamine and marijuana, as well as thousands of dollars in cash and additional ammunition.
The jury was presented with dozens of exhibits, including drugs, scales, packaging, multiple guns, ammunition, and even a microwave smeared with crack cocaine residue, which was recovered from Ladson’s bathroom. Jurors were also shown text message conversations with drug customers on Ladson’s cell phone and data from a home security system indicating that his front door was often opened over a hundred times a day during the period when investigators observed drug customers coming to and from his home.
After several days of trial, the jury convicted Ladson on all counts.
United States District Judge Donald C. Coggins sentenced Ladson to 204 months in prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fountain Inn Police Department, and the Greenville County Sheriff’s Office and Greenville County Drug Enforcement Unit. Assistant U.S. Attorneys Chris Schoen and Bill Watkins prosecuted the case for the United States.
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Fort Worth Shooting Suspect Sentenced to 10 Years for Gun CrimeRead the Press Release
A Fort Worth man who allegedly shot through the door of a local home, hitting an 82-year-old woman in the chest, was sentenced to 10 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Jonathan R. Howard, 35, was charged in March and pleaded guilty in May to being a felon in possession of a firearm. He was sentenced Friday by U.S. District Judge Reed C. O’Connor.
According to court documents, law enforcement responded to a shooting at a home in Fort Worth at 9:40 p.m. on Feb. 23. The 82-year-old victim had already been transported to the hospital.
Officers discovered cartridge casings in the backyard of Mr. Howard’s residence, which was across the alley from the victim’s property.
The following day, officers searched Mr. Howard’s home and car and located three firearms: a Jimenez Arms 9mm pistol, a Glock 9mm pistol, and a Taurus 9mm pistol. Due to his multiple prior felony convictions, including forgery in 2011 and manufacture and delivery of a controlled substance in 2019, Mr. Howard was legally barred from possessing firearms.
Mr. Howard has also been charged by the state with aggravated assault in connection with the shooting. Those charges remain pending; he is considered innocent in that case until proven guilty.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division – Fort Worth Resident Agency and the Fort Worth Police Department conducted the investigation. Assistant U.S. Attorney Shawn Smith prosecuted the case.
Fort Washakie Man Sentenced to 10 Years in Prison for Felony Child AbuseRead the Press Release
Denver Lee John, Sr., 44, of Fort Washakie, Wyoming, was sentenced to 10 years in prison for abusing his children and stepchildren. The sentence was imposed on August 21, 2023, by U.S. District Court Judge Alan B. Johnson.
According to the evidence and court documents, defendant John physically and mentally abused his children and the children of his now ex-wife over several years. The abuse included punching, pulling hair, throwing children against the wall, throwing tools and other objects at the children, and striking a child so hard that the child could not sit for days. On one occasion, the defendant severely burned a child’s hand by holding it on a stovetop burner. On another occasion, the defendant threw a screwdriver at a child which lodged in the child’s head. Defendant John also threatened to separate a child from the family if that child told anyone what John was doing.
This crime was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs. Assistant United States Attorney Kerry J. Jacobson prosecuted the case.
Case No. 22-00077-ABJ and 23-CR-00084-ABJ
Former trooper admits to lying to FBIRead the Press Release
McALLEN, Texas – A 35-year-old Pharr resident has pleaded guilty to lying to federal agents during a drug investigation, announced U.S. Attorney Alamdar S. Hamdani.
Pablo Talavera Jr. was a Texas Department of Public Safety (DPS) trooper. As part of his plea today, Talavera admitted he lied to FBI agents regarding his knowledge of his family’s involvement in drug trafficking.
“Talavera lied to the FBI during a critical moment - betraying his badge and breaching the public trust,” said Hamdani. “In doing so, Pablo Talavera chose his father’s criminal organization over the people he was sworn to protect. Now, this office will hold him to account for his corruption.”
In 2019, the law enforcement initiated an investigation targeting an organization responsible for the transportation of multi-kilogram quantities of drugs from the Rio Grande Valley to Tennessee. Talavera’s father was the organization’s leader.
The investigation revealed Talavera had used his position as a DPS trooper to assist his father by running license plates of vehicles believed to be that of law enforcement. Talavera originally denied knowledge of his father’s participation in drug trafficking. However, he ultimately admitted this fact and that he had assisted him by running the license plate checks.
U.S. District Judge Micaela Alvarez will impose sentencing on Nov. 7. At that time, Talavera faces up to five years in federal prison as well as a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
Talavera’s father was previously convicted of drug trafficking and is now serving a 21-year federal sentence.
The FBI and Homeland Security Investigations conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) operation with the assistance of the Texas Rangers. Assistant U.S. Attorney Jesse Salazar is prosecuting the case.
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 on the Department of Justice’s OCDETF webpage.
Ferguson Man Sentenced to 13 Years in Federal Prison for Fentanyl, MethamphetamineRead the Press Release
ST. LOUIS – A man from Ferguson, Missouri who was caught in 2021 with fentanyl, methamphetamine and two guns after a police chase was sentenced Friday to 13 years in prison.
Derenta Street, 33, pleaded guilty in May to possession with intent to distribute fentanyl and possession with intent to distribute methamphetamine. He admitted fleeing from police and throwing out drugs and a gun while doing so.
On Sept. 29, 2021, St. Louis County Police Department officers spotted Street near the intersection of Trask and Crowley Drives in north St. Louis County in a Chevrolet Corvette bearing license plates that belonged to another vehicle. Officers tried to pull Street over, but he sped off. After they used spike strips to deflate his tires, Street threw out a Remington 1911-RlS, .45-caliber semiautomatic pistol, baggies containing fentanyl and methamphetamine and capsules containing fentanyl. Once Street stopped and officers arrested him, they found more fentanyl and a Glock 17 9mm pistol equipped with an illegal, aftermarket device that converted it into an automatic weapon, commonly referred to as a “switch,” his plea agreement says.
The case was investigated by the St. Louis County Police Department. Assistant U.S. Attorney Matthew Martin prosecuted the case.
Felon in Possession of a Firearm SentencedRead the Press Release
Brandon O’Neil Garrett, 46, of McDavid, Florida had been convicted of a Possession of a Forged Instrument Second Degree, Theft of Property Second Degree, and Promoting Prison Contraband when he illegally possessed .22 caliber rifle. On May 18, 2023, Garrett pled guilty to the charge.
Court documents reflect that Garrett was stopped by an Alabama state trooper in Baldwin County, Alabama operating a truck on U. S. Highway 31. Garrett admitted to the trooper that there was a gun in the back seat of the truck and that he was a felon. Garrett also had several rounds of ammunition in the door pocket that fit the rifle. The firearm was manufactured outside the state of Alabama, so Garrett’s possession of the gun in Alabama affected interstate commerce.
United States District Court Judge Terry F. Moorer imposed a sentence of 24 months to be followed by 3 years of supervised release after Garrett’s release from imprisonment. Garrett’s supervision includes a set of standard conditions as well as a special condition that the probation office may search his person or property upon a showing of reasonable suspicion that he is in violation of any of the other conditions of his supervision. No fine was imposed but the judge ordered the forfeiture of the firearm. Garrett was ordered to pay $100 in special mandatory assessments.
The case was investigated by the Alabama Law Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Elizabethtown Woman Sentenced to over 2 Years in Federal Prison for CARES Act FraudRead the Press Release
Louisville, KY – An Elizabethtown, Kentucky woman was sentenced today to 2 years and 9 months in federal prison for charges related to her submission of three fraudulent Coronavirus Aid, Relief, and Economic Security (CARES) Act applications.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Vince Zehme of the Federal Deposit Insurance Corporation Office of Inspector General, and Acting Special Agent in Charge Brian Jones of the FBI Louisville Field Office made the announcement.
According to court documents, Kelly Woods, 43, filed three fraudulent applications for Paycheck Protection Program (PPP) loans between May 1, 2020, and December 31, 2021, resulting in the theft of $1,318,955. Woods utilized the entities Philips Healthcare LLC and LB Acquisitions LLC. Woods organized LB Acquisitions LLC after the onset of the Covid 19 pandemic. She then exaggerated the number of employees and payroll expenses of those entities in the fraudulent applications. Following release from her 2-year and 9-month sentence, Woods was ordered to serve 3 years on supervised release. There is no parole in the federal system.
Woods was also ordered to pay $1,318,988 in restitution and a $15,000 fine.
This case was investigated by the FDIC Office of Inspector General and the FBI.
Assistant U.S. Attorneys Nicole Elver and David Weiser prosecuted 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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El Dorado County Couple Sentenced for Tax FraudRead the Press Release
SACRAMENTO, Calif. — El Dorado Hills couple were sentenced today for their criminal efforts to avoid paying federal income taxes, U.S. Attorney Phillip A. Talbert announced.
Brian Beland, 39, was sentenced to 21 months in prison and a $30,000 fine, and Denae Beland, 40, was sentenced to five years of supervised release and a $25,000 fine.
After an 8-day trial, a federal jury found Brian Beland guilty of four counts: three for filing false tax returns for 2011, 2012, and 2013, and another count for corruptly impeding the ensuing tax audit. The tax returns illegally claimed both personal expenses and fabricated expenses as tax deductions. The jury also found Denae Beland guilty of corruptly impeding the tax audit.
“The Belands used tax fraud to pay almost no taxes for three years on their approximately $1.1 million income,” said U.S. Attorney Talbert. “They purposely lied in order to fund their family’s lavish lifestyle when they should have just told the truth and paid their taxes like millions of other Americans. The U.S. Attorney’s Office is committed to investigating and prosecuting those who fail to comply with their federal tax obligations.”
“Greedy schemes to falsify business expenses in order to evade income tax, such as those utilized by Brian Beland, are unfair to every taxpayer who obeys the law and pays their fair share. The Beland’s flaunted their ill-gotten gains with extravagant vacations, vehicles, home improvement, and other items,” said Darren Lian, Special Agent in Charge of the IRS Criminal Investigation’s Oakland Field Office. “Today’s sentence affirms the IRS CI will hold individuals accountable to tax laws that they are subject to. Those who fail to do so will not be tolerated and will be prosecuted.”
According to court documents and evidence presented at trial, Brian Beland was a mortgage broker for Wells Fargo and then Bank of America from 2011 through 2013. He claimed business expenses in excess of $800,000 for all three years, effectively paying only a 2% tax on the more than $1.1 million he earned. Denae Beland was an attorney licensed by the California State Bar, but she was suspended after this conviction and is currently not eligible to practice law in California. When the IRS began a civil audit of their taxes, Brian and Denae Beland tried to hide their crimes by falsely claiming that personal expenses were business expenses, telling falsehoods to the civil examiner, and obstructing the IRS audit by not providing requested documents.
During the audit the Belands claimed falsely that their business records had been shredded or lost. They then created false spreadsheets for the IRS that listed various personal expenses as business expenses in order to justify their fraudulent deductions, including travel to Europe, the Eiffel Tower, Hawaii, and Cancun; wine racks and a personalized wine bottle in their wine cellar; a California king bed; patio furniture; automated tiki torches; birthday party and baby shower expenses; home gym exercise flooring; and other items. In June 2016, the IRS executed a search warrant at the Belands’ house in El Dorado Hills. In addition to finding many pieces of furniture and household goods that had been claimed as business expenses, agents also found various tax records and receipts from the years in question, despite the Belands’ claims that all records and receipts had been destroyed. In some case those records and receipts were found together with correspondence from the IRS related to the very same audit they were obstructing.
This case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorneys Veronica M.A. Alegría and Lee S. Bickley prosecuted the case.
District of Columbia Man Pleads Guilty to Wire FraudRead the Press Release
WASHINGTON - Germaine L. Graham, 41, of Washington, D.C., pleaded guilty in federal court today to one count of wire fraud related to a fraud scheme against his former employer located in Washington D.C., announced U.S. Attorney Matthew M. Graves and Acting Special Agent in Charge David Geist of the FBI Washington Field Office’s Criminal and Cyber Division.
As part of the fraud scheme, Graham made false payroll entries into the company’s payroll processing system, which directed unauthorized payments to himself. As a result of the fraudulent scheme, Graham caused approximately $250,000 in losses to his former employer. U.S. District Court Judge Rudolph Contreras accepted the guilty plea. A sentencing hearing is scheduled for February 2, 2024.
According to the Statement of the Offense, between February 2019 and January 2022, Graham was employed as an office manager with a private architecture firm in the District of Columbia. As part of his duties, he was responsible for the firm’s book-keeping functions, including invoicing and bill paying. He was also responsible for preparing and electronically submitting the firm’s bi-monthly payroll register to an out-of-state payroll processing company. Graham also had access to the firm’s electronic checks and on-line book-keeping program. Graham used his access to the payroll processing system, company checks, and the book-keeping program to steal his employer’s money and to hide the theft.
In announcing the verdict, Graves and Geist commended the work of those who investigated the case from the FBI’s Washington Field Office. They also commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lisa Abbe, Victim-Witness Service Coordinator Tonya Jones, and Assistant U.S. Attorney Diane Lucas, who investigated and prosecuted the case.
District Man Sentenced to 22.5 Years for Assault with Intent to Kill While ArmedRead the Press Release
WASHINGTON – Anthony Braxton, 47, of Washington, D.C., was sentenced today to 22.5 years in prison for stabbing a prior romantic partner multiple times in front of their child in November 2017, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD). Braxton was found guilty by a jury of assault with intent to kill while armed and other charges, following a trial in April 2023 in the Superior Court of the District of Columbia.
According to the government’s evidence, on Nov. 4, 2017, Braxton went to the home of his former romantic partner in violation of a court ordered stay away. He then approached the woman in broad daylight and stabbed her nearly 30 times with a pair of needle nose pliers in front of their child.
Braxton had been ordered by a District of Columbia Superior Court Judge, on October 16, 2017, to stay away and have no contact with the victim. Evidence showed that he violated that order over 500 times between Oct. 16, 2017, and Nov. 4, 2017.
The victim received medical treatment for her stab wounds at Howard University Hospital. She ultimately required surgery to save her right hand.
In announcing the sentence, U.S. Attorney Graves and Acting Chief Smith commended the work of those who investigated the case from the MPD. They acknowledged the efforts of those who worked on the case form the U.S. Attorney’s Office, including former Assistant U.S. Attorney Kristina Wolf, Appellate Assistant U.S. Attorneys Nick Coleman and Daniel Lenerz, Pretrial Mental Health Coordinator Jennifer Mika, Paralegal Specialist Tiffany Fogle, Victim/Witness Advocates Shawn Slade and Tracy Owusu, and interns Jessica Wasserman, Julianne Saunders, Molly Patrick, and Kate Dougherty.
Finally, they commended the work of Assistant U.S. Attorneys Dana Joseph and Brian Yang, who investigated and prosecuted the case.
District Man Pleads Guilty to Fatal Shooting of a 62-Year-Old ManRead the Press Release
WASHINGTON – Demarcus Barnett, 20, of Washington, D.C., pleaded guilty today to a charge of voluntary manslaughter while armed stemming from the shooting of 62-year-old Lasanta Qumar McGill, on June 8, 2023, in the city's Westminster neighborhood, announced U.S. Attorney Matthew M. Graves and Acting Chief Pamela Smith, of the Metropolitan Police Department (MPD).
As part of his guilty plea, Barnett admitted that after being robbed by two individuals, he chased after them and fired wildly down the sidewalk. In doing so, he struck and killed McGill, an innocent bystander. Barnett will be sentenced on October 27, 2023, by Judge Maribeth Raffinan.
In announcing the guilty plea, U.S. Attorney Graves and Acting Chief Smith commended the work of those investigating the case from the MPD and the U.S. Attorney’s Office.
Defendant caught with 14 kilos of fentanyl and seven kilos of methamphetamine sentenced to ten years in prisonRead the Press Release
Tacoma – A 36-year-old citizen of Mexico was sentenced today in U.S. District Court in Tacoma to ten years in prison for trafficking large amounts of fentanyl and methamphetamine while armed with a handgun, announced Acting U.S. Attorney Tessa M. Gorman. Erick Guerrero-Acosta was arrested November 22, 2022, with 14 kilos of fentanyl powder and pills and seven kilos of methamphetamine. At the sentencing hearing U.S. District Judge Benjamin H. Settle cited the “grave” consequences of the opioid epidemic including an estimated 70,000 overdose deaths that have been attributed to fentanyl nationwide.
“At the very time Mr. Guerrero-Acosta was bringing fentanyl pills to Western Washington, more than one person each day was dying of a fentanyl overdose in King County alone,” said Acting U.S. Attorney Tessa M. Gorman. “Between January 1, 2022, and October 15, 2022, 70% of 710 overdose deaths were attributable to fentanyl. Based on these percentages, pills just like the ones seized from Guerrero-Acosta killed approximately 490 people, leaving only heartache for families and loved ones.”
According to records filed in the case, Guerrero-Acosta was identified by investigators with the Drug Enforcement Administration (DEA) as a significant supplier of fentanyl and methamphetamine. After conducting some controlled buys of drugs, agents moved in to arrest Guerrero-Acosta. In his vehicle they seized 14 kilos (approximately 30 pounds) of fentanyl in pill and powder form, seven kilos (15 pounds) of methamphetamine, more than $25,000 in cash and a firearm in the center console of the vehicle.
In asking for a 12-year prison sentence Assistant United States Attorney Max Shiner wrote to the court, “the danger created by defendant’s drug dealing was exacerbated by his unlawful possession of a firearm. The combination of drug trafficking and firearms oftentimes proves lethal, and defendant’s ready access to the firearm in the center console compartment of his car demonstrated his knowledge of the dangerous nature of the drug trade and his willingness to engage in it.”
Guerrero-Acosta has prior convictions for drug trafficking in Arizona in 2007 and 2011. He has a conviction from 2015 for illegally returning to the U.S. following deportation.
The case was investigated by the DEA.
The case was prosecuted by Assistant United States Attorney Max Shiner.
Danville Man Sentenced to Eight Years for Child Porn PossessionRead the Press Release
DANVILLE, Va. – A Danville man, who used the online messaging application Kik to communicate and share child abuse images with an undercover law enforcement officer, was sentenced last week to 102 months in federal prison.
William Allen Wolf, 46, pled guilty in November 2022 to possession with intent to view a visual depiction of a minor under 12 years of age engaged in sexually explicit conduct.
According to court documents, in December 2021, a law enforcement officer acting in an undercover capacity entered a public group on Kik Messenger where users were known to regularly share information and images of child abuse, and Wolf was already a member. The undercover officer purported to have two prepubescent daughters.
On December 6, 2022, Wolf initiated a Kik conversation with the undercover officer telling him that he was a member of the group because he enjoyed training children for sexual activity. Wolf then sent the undercover officer a video depicting an adult male engaged in sexual activity with a prepubescent female under 12 years of age. Wolf continued to send the undercover officer additional videos during the course of their online conversations.
United States Attorney Christopher R. Kavanaugh and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, made the announcement.
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Michael Baudinet prosecuted the case.
The case is 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. Attorneys’ Offices and the DOJ’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 identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
DOJ Grant Funding to Bring Multi-Faceted Training to Southwest VirginiaRead the Press Release
CHARLOTTESVILLE, Va. – The Town of Marion Police Department, in conjunction with the Southwest Virginia Criminal Justice Training Academy, has received an $83,000 grant from the Department of Justice to bring an unprecedented training event to Southwest Virginia.
The funding will make available premier police leadership and management training to over 50 law enforcement agencies throughout Southwest Virginia, a geographical region that without the grant funding would otherwise not have the ability to bring such training to the area.
“These grant funds by the Department of Justice are necessary to bring this cutting-edge training to our law enforcement partners in Southwest Virginia,” United States Attorney Christopher R. Kavanaugh said today. “We are dedicated to cultivating the next generation of law enforcement professionals in Virginia, and to make sure they have the skills to navigate the complexities of today’s policing environment.”
Specifically, the Town of Marion Police Department and Southwest Virginia Criminal Justice Training Academy will bring the “Organizational Management Certificate Program” (OMCP) from the Southern Police Institute, a division of the Department of Criminal Justice at the University of Louisville established in 1951 whose mission is to enhance the professional development of law enforcement.
The OMCP is a multi-faceted curriculum encompassing vital aspects of modern law enforcement administration including personnel development, operations, budgeting, and organizational leadership, as well as problem solving, performance management, and strategic management for 21st century policing.
Training consists of four separate courses offered in 40-hour blocks that result in the completion of a college-based certificate program.
The grant funds will pay for 25 seats in each of the four courses and will be offered at no cost to the agencies represented within the Southwest Virginia Region.
Cincinnati man pleads guilty to murder of convenience store owner, 5 armed robberiesRead the Press Release
CINCINNATI – A Cincinnati man pleaded guilty in federal court here today to using a firearm to commit murder and other crimes of violence. The parties involved have recommended a sentence of up to 45 years in prison for the defendant, who shot and killed the owner of Madeira Beverage in February 2021.
“Gun violence is never ok, and is especially tragic when a life is lost,” said U.S. Attorney Kenneth L. Parker. “One shooting death is one too many, and my office remains committed to holding trigger pullers accountable.”
“Today's guilty plea is a step in the right direction, and it will hopefully provide some small amount of closure for Mr. Gupta's family,” stated John Nokes, Acting Special Agent in Charge for ATF’s Columbus Field Division. “Mr. Gupta's life ended tragically at the hands of the defendant. That heinous act altered the course of many lives, and it robbed Mr. Gupta, his family, and our community of future opportunities that so many of us take for granted.”
Willie James Attaway, 32, admitted to murdering Roop C. Gupta and committing or attempting four other armed robberies on Feb. 8 and Feb. 9, 2021.
During the two-day crime spree, Attaway brandished a firearm to rob or attempt to rob:
- Feb. 8 – Shell on S. Mason Montgomery Road in Deerfield Township,
- Feb. 8 – Shell on Dixie Highway in Hamilton, Ohio,
- Feb. 9 – Madeira Beverage on Kenwood Road in Madeira, Ohio,
- Feb. 9 – Sunoco on Kenwood Road in Blue Ash, Ohio, and
- Feb. 9 – Marathon on North Broadway in Lebanon, Ohio.
At the first robbery, Attaway brandished a firearm at the two clerks and demanded that they empty the cash registers, which they did.
Later that night, at a second Shell gas station, Attaway brandished a firearm and said he was not afraid to shoot the clerk. The clerk gave Attaway money from the cash register.
The next day, Feb. 9, 2021, Attaway entered Madeira Beverage and confronted the store’s owner, Roop Gupta, who was working behind the counter. Attaway pointed a firearm at Gupta, and during the ensuing struggle he shot Gupta one time in the left abdomen. Gupta was rushed to the hospital, where he was pronounced dead.
Later that evening, Attaway entered the Sunoco in Blue Ash, brandished a firearm, and demanded that the clerk give up the money in the cash register, which the clerk did.
During the final robbery on Feb. 9, Attaway pointed a firearm at the Marathon clerk and said, “Give me what you got.” The clerk reached under the counter, pretending he had a firearm, causing Attaway to flee.
A second defendant, Lamond Johnson, 37, is charged in this case. He is charged in all 14 counts of the indictment, and those charges remain pending.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and John Nokes, Acting Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); announced the guilty plea entered today before Senior U.S. District Judge Susan J. Dlott. Assistant United States Attorneys Julie D. Garcia and Kyle J. Healey are representing the United States in this case.
The investigation was jointly conducted by ATF and the U.S. Attorney’s Office, the Madeira Police Department, the Warren County Sheriff’s Office, the Cincinnati, Lebanon, Blue Ash, and Hamilton police departments, and the Hamilton County Prosecutor’s Office.
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Charleston Man Pleads Guilty to Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – Timothy Duncan, 43, of Charleston, pleaded guilty today to possession of prepubescent child pornography.
According to court documents and statements made in court, on October 24, 2022, law enforcement officers executed a search warrant at Duncan’s residence and seized electronic devices including a cell phone. A forensic analysis of the cell phone revealed 18 videos and 13 images of child pornography. One image depicted an adult male sexually assaulting a prepubescent female.
A search warrant executed for Duncan’s email account revealed 10 videos of child pornography, including one video that contained 69 individual videos. One of the 69 videos in the collection depicted an adult male sexually assaulting a prepubescent female.
Duncan is scheduled to be sentenced on November 20, 2023, and faces a maximum penalty of 20 years in prison, at least five years and up to a lifetime of supervised release, and a $250,000 fine. Duncan must also register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the West Virginia State Police-Internet Crimes Against Children Task Force (ICAC), and the Kanawha County Sheriff’s Office.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorneys Francesca C. Rollo and Julie M. White are prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-46.
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Canadian Man Charged with Traveling to Albany in Attempt to Meet 10-Year-Old for SexRead the Press Release
ALBANY, NEW YORK – Alexander MacFayden, age 58, a citizen of Canada, appeared in court today on a charge of attempting to entice a minor to engage in sexual activity. United States Attorney Carla B. Freedman and Alfred Watson, Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
According to a federal complaint, MacFayden engaged in a series of online conversations earlier this year with an individual in Albany whom he believed would allow him to engage in sexual contact with a 10-year-old relative. On August 25, 2023, MacFayden drove from the Toronto area to Albany to engage in sexual contact with the minor. He was arrested in the Town of Colonie that evening, and later admitted he drove to Albany with the intent to engage in sexual contact with a minor. Today, MacFayden was ordered detained pending a detention hearing scheduled for tomorrow, August 29.
If convicted of the charge, MacFayden faces up to life in prison, a maximum fine of $250,000, and a term of post-imprisonment supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. MacFayden could also be required to register as a sex offender.
This case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the Colonie Police Department, the Rotterdam Police Department, and the New York State Police. Assistant United States Attorney Joseph S. Hartunian is prosecuting the case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Boogaloo Movement Supporter Sentenced for Illegally Possessing FirearmsRead the Press Release
DETROIT – A supporter of the “Boogaloo” movement was sentenced today to 12 months in prison after having pleaded guilty in April to being a drug user in possession of firearms and ammunition, and for making a false statement in connection with the acquisition of a firearm, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Devin J. Kowalski, Acting Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Timothy Allen Teagan, 23, of Plymouth, Michigan, was sentenced before United States District Judge Sean F. Cox.
According to court records, Teagan is a supporter of the anti-government Boogaloo movement. Members of the Boogaloo movement advocate for the violent overthrow of the government. They believe that a civil war or uprising against the government is coming to the United States, and they refer to that conflict as the “Boogaloo.” On July 17, 2022, Teagan completed a Firearms Transaction Record, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Form 4473, in connection with the acquisition of a firearm from a federally licensed firearms dealer in Westland, Michigan. Teagan applied for the purchase of a Glock 34, 9-millimeter pistol. On the ATF Form 4473, Teagan checked “no” to the question concerning drug use. At the time Teagan prepared the ATF Form 4473 and submitted it, he was a frequent and habitual user of marijuana and was also addicted to the drug. Teagan lied on the ATF Form 4473 because he knew that he would be legally prohibited from purchasing and possessing a firearm if he answered truthfully and admitted that he was addicted to marijuana, or a habitual user of marijuana. Teagan subsequently purchased the Glock 9-millimeter pistol on July 20, 2022.
In addition, in October 2022, Teagan possessed a Diamondback Arms, Inc. DB-15 .556 caliber semi-automatic rifle and ammunition. Teagan stored the rifle and some of the ammunition in his bedroom at his father’s home located in Plymouth, Michigan. Teagan purchased the rifle in December 2019 from a federally licensed firearms dealer in Canton, Michigan. At the time of the December 2019 purchase, Teagan knew that he was a frequent and habitual user of marijuana and therefore not permitted to possess the firearm.
On October 27, 2022, FBI agents executed a search warrant at Teagan’s father’s residence in Plymouth. During the search, agents recovered the DB-15 rifle, Level IV body armor, gas masks, dozens of rounds of rifle and pistol ammunition, an ACOG rifle sight, firearm magazines, and Boogaloo movement flags and patches. The Glock 9-millimeter pistol was recovered from a nearby vehicle.
“Our office stands ready to aggressively prosecute those who seek to circumvent federal firearms laws intended to protect our community, stated U.S. Attorney Dawn Ison. .”
The case was investigated by the FBI and prosecuted by Assistant United States Attorney Saima Mohsin.
Armed Hamden Drug Distributor Sentenced to 5 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LATRELL ROUNTREE, also known as “Roundtree,” 28, of Hamden, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 60 months of imprisonment, followed by three years of supervised release, for possessing firearms in furtherance of a drug trafficking crime.
According to court documents and statements made in court, an investigation into Rountree and his associates determined that Rountree was stashing narcotics in his apartment on Mix Avenue in Hamden. On May 24, 2022, as investigators arrived to conduct a court-authorized search of the apartment, Rountree threw a backpack from the fourth floor balcony and attempted to flee by climbing over the railing of the balcony to the third floor apartment. He was apprehended outside of the apartment building in a brush line. A search of the backpack revealed approximately 106 grams of crack cocaine, approximately 12 grams of fentanyl, three loaded semi-automatic pistols, and ammunition. An additional quantity of crack was found inside the apartment.
Rountree’s criminal history includes felony convictions for firearm offenses.
On April 24, 2023, Rountree pleaded guilty to possession of firearms in furtherance of a drug trafficking crime.
Rountree, who is released on a $200,000 bond, is required to report to prison on October 12.
This matter was investigated by the Federal Bureau of Investigation and the New Haven and Hamden Police Departments. The case was prosecuted by Assistant U.S. Attorney Kenneth Gresham through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Justice 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.
Armed Career Criminal Sentenced to 15 Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
INDIANAPOLIS- Evelio Santana, 40, of Indianapolis, Indiana has been sentenced to 15 years in federal prison after pleading guilty to two counts of illegal possession of a firearm by a convicted felon.
According to court documents, on November 15, 2021, investigators with the Indianapolis Metropolitan Police Department, Indiana State Police, and the FBI, were conducting surveillance on Evelio Santana who had six outstanding warrants for his arrest. Investigators watched Santana pull into the parking lot of a gas station on 38th street in a Polaris UTV. This Polaris UTV was later discovered to have been stolen in Marion County, Indiana.
IMPD officers approached Santana and attempted to place him in custody. As the officers made their presence known, Santana took off running. Eventually, officers arrested him after he fell during the foot pursuit. During a search of Santana’s person, a loaded, semi-automatic handgun fell out of his waistband.
That same day, investigators searched a stolen motorhome which had been in Santana’s possession and recovered a Sig Sauer M400 rifle. The defendant admitted to knowingly possessing both firearms.
Santana is prohibited from ever lawfully possessing a firearm due to his previous felony convictions of two counts of robbery, burglary, auto theft, and multiple thefts.
“Deadly weapons in the hands of violent criminals fuel the shootings and deaths that have devastating impacts on our families,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “I commend the FBI, ISP, and IMPD for their efforts to make our communities safer and hold illegally armed criminals accountable. This sentence should send a message to everyone returning to the community after a conviction for a violent felony. We want you to be successful, contributing, and law-abiding. If you choose to pick up a gun instead, you face a serious term in federal prison.”
“The message sent by this sentence is clear—if you have a prior conviction that makes possessing a firearm illegal and you choose to ignore that prohibition, you will face significant prison time,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “In partnership with other federal, state, and local law enforcement, the FBI will continue to work diligently to protect our communities from those who have no regard for the law.”
“The Indiana State Police will continue to work with its law enforcement partners at all levels to help keep firearms out of the hands of those who are not legally allowed to possess them, and to hold them accountable for their unlawful actions,” said Captain Ron Galaviz of the Indiana State Police.
The Federal Bureau of Investigation, IMPD and Indiana State Police investigated this case. The sentence was imposed by U.S. District Court Judge, Matthew P. Brookman. Judge Brookman also ordered that Santana be supervised by the U.S. Probation Office for 3 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Jayson W. McGrath, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Alleged Business Scammers Indicted After Nationwide Scheme to Defraud Investors, Including Elderly, of More than $30MRead the Press Release
Salt Lake City, Utah – A federal grand jury in Salt Lake City returned an indictment charging seven defendants, including the founder and former President of Noah’s Event Venue in South Jordan, Utah, with 18 counts of wire fraud.
According to court documents, from January 2015 through May 2019, William J. Bowser, 60, of Hendersonville, North Carolina; Christopher J. Ashby, 49, of Salt Lake County, Utah; Scott W. Beynon, 46, of Davis County, Utah; Jordan S. Nelson, 42, of Salt Lake County, Utah; Scott L. Rutherford, 51, of Utah County, Utah; John D. Hamrick, 64, of Franconia, New Hampshire and the Vice President and Director of Edmund and Wheeler Inc., which is also named as a defendant in the indictment, conspired together to engage in a nationwide scheme to defraud investors. The victims, who were mostly retired and elderly individuals, were defrauded of more than $30,000,000 after being induced by the defendants to invest in Noah Event Centers. As alleged in the indictment, Noah Event Centers were, collectively, an unprofitable enterprise sustained only through infusions of new investor funds. The defendants did not use investor funds as promised in their marketing materials, purchase agreements and related representations. Instead, they misappropriated and diverted investor funds meant for the development and construction of new event centers to pay large commissions, Noah’s operations, prior investors, construction costs of other event centers, and rents on previously sold Noah Event Centers. As part of their alleged scheme, the defendants used the internet, telephone, email, and other means to promote, offer and sell fractional Tenant-in-Common interests in five Noah Event Centers through the use of a network of financial planners, 1031 exchange specialists, real estate brokers and other salespeople, using glossy marketing materials showing pictures of beautifully constructed buildings and promising impressive long-term financial returns.
Bowser, and his co-conspirators are charged with conspiracy to commit wire fraud, and wire fraud. The defendants are scheduled for their initial court appearance on September 14, 2023, at 4:00 p.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in downtown Salt Lake City.
U.S. Attorney, Trina A. Higgins, of the District of Utah made the announcement.
The case is being investigated by the United States Postal Inspection Service (USPIS).
Assistant United States Attorneys Cy H. Castle, Stewart M. Young, Stephen P. Dent and Peter Kuhn for the District of Utah are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
27 August 2023
Attorney General Merrick B. Garland Statement on Jacksonville ShootingRead the Press Release
The Justice Department issued the following statement from Attorney General Merrick B. Garland following yesterday’s shooting in Jacksonville, Florida:
“Yesterday in Jacksonville, Florida, three people were killed in a horrific act of hate. In the wake of the mass shooting, FBI and ATF agents responded to the scene and are continuing to work closely with local law enforcement on the ground. The Justice Department is investigating this attack as a hate crime and an act of racially-motivated violent extremism. The entire Justice Department extends its deepest condolences to the loved ones of the victims and to the Jacksonville community as they mourn an unimaginable loss.
No person in this country should have to live in fear of hate-fueled violence and no family should have to grieve the loss of a loved one to bigotry and hate. One of the Justice Department’s first priorities upon its founding in 1870 was to bring to justice white supremacists who used violence to terrorize Black Americans. That remains our urgent charge today. The Justice Department will never stop working to protect everyone in our country from unlawful acts of hate.”
25 August 2023
Wyoming County Man Sentenced to 300 Months in Prison for Production of Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Roger Daniel Williams, age 44, of Meshoppen, Pennsylvania, was sentenced by United States District Court Judge Robert D. Mariani to 300 months in prison for the production of child pornography videos and images. Williams previously pleaded guilty to the crime on March 30, 2022.
According to United States Attorney Gerard M. Karam, Williams produced videos and images of himself and a child while Williams was engaged in the act of raping the child. The production of these videos and images occurred on various dates beginning in December 2019 and continued through May 2021. Williams also possessed thousands of child pornography videos and images at his residence.
The sentence imposed by Judge Mariani was imposed to run consecutively to a state sentence Williams is currently serving. On January 13, 2022, Williams was sentenced in Wyoming County, Pennsylvania to serve a minimum of 240 months in prison and a maximum of 480 months in prison after pleading guilty to one count of rape of child. Judge Mariani’s sentence ensures a minimum sentence of 45 years’ imprisonment for Williams.
Williams is also required to serve a term of five years of supervised release upon release from federal custody and was ordered to pay restitution in the amount of $45,000 to the identified victims of the child pornography he possessed.
The charges stem from an investigation conducted by the Federal Bureau of Investigation (FBI) – Philadelphia Division and the Meshoppen Police Department. Assistant United States Attorney Michelle Olshefski prosecuted the case.
Upon release from custody, Williams will also be required to comply with the requirements of the Sex Offender Registration and Notification Act (SORNA) upon release from custody.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.
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West Virginia woman sentenced for drug trafficking crimesRead the Press Release
ELKINS, WEST VIRGINIA – Keisha Rae Ogline, age 33, of Moorefield, West Virginia, was sentenced to 11 years in prison for distribution of methamphetamine and possession of a firearm in furtherance of a drug crime.
According to court documents and statements made in court, officers conducted a search of Ogline’s home and vehicle and found methamphetamine, pills containing fentanyl, and cocaine, as well as digital scales and several firearms. The home was equipped with a video surveillance security system.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government.
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
West Virginia man sentenced for federal drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – James Ray Arbogast, age 57, of Elkins, West Virginia, was sentenced today to 63 months in federal prison for distribution of methamphetamine.
According to court documents and statements made in court, Arbogast sold methamphetamine to a confidential informant from his Elkins home on several occasions. The sales were caught on video, which shows Arbogast weighing the drugs on a digital scale.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government.
The case was investigated by the Mountain Region Drug Task Force.
Chief U.S. District Judge Thomas S. Kleeh presided.
West Virginia man sentenced for federal drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Matthew Scott Mayle, age 37, of Philippi, West Virginia, was sentenced to 57 months in federal prison for distribution of 50 grams or more of methamphetamine.
According to court documents and statements made in court, Mayle sold methamphetamine to an undercover officer on two separate occasions.
Assistant U.S. Attorney Brandon Flower prosecuted the case on behalf of the government.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Chief U.S. District Judge Thomas S. Kleeh presided.
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Wagner Woman Sentenced for Involuntary ManslaughterRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Wagner, South Dakota, woman convicted of Involuntary Manslaughter. The sentencing took place on August 21, 2023.
Chelsea Andersh, age 29, was sentenced to four years of probation and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Andersh was indicted by a federal grand jury in March of 2022. She pleaded guilty on May 31, 2023.
The conviction stemmed from an incident on September 11, 2021, when Andersh, after smoking methamphetamine and marijuana, gave her five-month old son a bottle and put him back in the bed with her. Later that day, the baby was discovered on his side, his face into Andersh’s body, under her arm, deceased. The autopsy revealed that the cause of death was “asphyxia due to smothering due to bed sharing with mother.” The contributing cause was “maternal methamphetamine use.”
This matter was prosecuted by the U.S. Attorney’s Office because the Major Crimes Act, a federal statute, mandates that certain violent crimes alleged to have occurred in Indian Country be prosecuted in federal court as opposed to State court.
This case was investigated by the Yankton Sioux Law Enforcement, Charles Mix County Sheriff’s Office, Wagner Police Department, and the FBI. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Two Indicted for Fentanyl ConspiracyRead the Press Release
BOSTON – Two New Bedford men have been indicted by a federal grand jury in Boston in connection with a conspiracy to distribute and possess with intent to distribute fentanyl. One defendant was also charged with misuse of a Social Security number and aggravated identity theft.
Yohenry Contreras-Lara, 29, and Vinicio DeJesus Marrero Arias, 39, were indicted on one count each of conspiracy to distribute and possess with intent to distribute more than 400 grams of fentanyl. Contreras-Lara was also indicted on one count of misuse of a social security number and one count of aggravated identity theft.
“Fentanyl is devastating communities across Massachusetts. We will continue partner with local police departments like the New Bedford Police Department and the Bristol County DA’s office to combat the distribution of this deadly drug on our streets,” said Acting United States Attorney Joshua S. Levy.
“Fentanyl is causing great damage to our communities,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office. “Those who distribute this drug are endangering the safety of the citizens of Massachusetts. Fentanyl continues to cause deaths in record numbers and DEA’s top priority is to aggressively pursue anyone who distributes this poison. This investigation demonstrates the strength of collaborative local, county and state law enforcement efforts in Massachusetts and our strong partnership with the U.S. Attorney’s Office.”
“We will continue to pursue those who misuse the Social Security number of others. This individual allegedly misused the identity of another, remaining in this country unlawfully for two decades. This type of behavior harms innocent lives and damages the integrity of the SSN,” said Sharon MacDermott, Special Agent in Charge of the Social Security Administration Office of the Inspector General, Boston- New York Field Division. “I thank our law enforcement partners for working with us and the U.S. Attorney’s Office for their efforts in this case.”
According to court filings, after Contreras-Lara entered the United States in 2002 on a tourist visa, he allegedly purchased the identity of a United States citizen and posed as that citizen for several years including applying for two Massachusetts drivers’ licenses under an identity that was not his in 2022.
It is further alleged that, following an investigation into fentanyl trafficking in and around the Lord Phillips Apartments in New Bedford, Contreras-Lara and Arias were identified as fentanyl distributors in the area. A search of Contreras Lara and Arias’ residences, as well as an apartment that was being used as a stash location and two storage units, allegedly resulted in the recovery of more than 800 grams of fentanyl and $1.2 million in cash in suspected drug proceeds.
The charge of conspiracy to distribute and possess with intent to distribute more than 400 grams of fentanyl provides for a sentence of up to life years in prison, at least five years of supervised release and a fine of up to $10 million. The charge of misuse of a social security number provides for a sentence of up to five years in prison, three years of supervised release, and a fine of up to $250,000. The charge of aggravated identity theft carries a sentence of two years to be served consecutively with any other sentence, up to 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 U.S. Attorney Levy, DEA SAC Boyle and SSA-OIG SAC MacDermott made the announcement today. Valuable assistance was provided by the Bristol District Attorney’s Office and the New Bedford Police Department. Assistant U.S. Attorney Evan Panich of the Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Darknet Vendors Plead Guilty to Trafficking Fentanyl and Other Illegal DrugsRead the Press Release
ALEXANDRIA, Va. – A Phoenix, Arizona, couple pleaded guilty today to conspiring to distribute multiple controlled substances including heroin, methamphetamine, and para-fluorofentanyl over the darknet.
According to court documents, from approximately January 2021 through May 2023, Cheerish Noel Taylor, 36, and Robert James Fischer, 35, ran the darknet monikers “SafeServe,” “Sky_HIGH,” and others across multiple darknet markets. On these markets, the co-conspirators advertised and sold various controlled substances, including crystal methamphetamine, cocaine, heroin, Xanax, Adderall, suboxone, and counterfeit pills that the conspirators advertised as oxycodone but that instead were laced with para-fluorofentanyl, a dangerous fentanyl analogue. During the course of the conspiracy, the conspirators made over 1,100 sales of controlled substances over the darknet using these accounts.
The darknet, also called the darkweb, is a portion of the Internet that hosts darknet markets, or hidden commercial websites. A darknet market operates as a black market, selling or brokering transactions involving legal products, as well as drugs, weapons, counterfeit currency, stolen credit card details, forged documents, unlicensed pharmaceuticals, steroids, and other illicit goods.
Fischer and Taylor sold counterfeit oxycodone pills, which they marketed as “pressed m30s” and “blues,” knowing that they did not contain oxycodone, and instead contained fentanyl or a fentanyl analogue. Within the product description for the purported “blues,” the defendant’s darknet vendor page on the site ASAP Market stated that “These are not reg M30s they are PRESSED and are very strong…seasoned users only please.” In another listing for the purported “blues,” the defendants advertised “small fine print: these are NOT from a pharmacy they are PRESSED from Mexico. Seasoned users Only because these are strong AF not for those who are freshly using.”
Fischer and Taylor sold other drugs on the darknet that they advertised as being legitimate, pharmaceutically, produced drugs. For example, the two sold what they described as “pharmaceutical Adderall’ for over $13 per pill.
The two shipped controlled substances nationwide through the United States Postal Service, and attempted to disguise the controlled substances within packages amidst dollar-store goods, such as children’s stickers, beads, birthday cards, and seasonal gift items. At times, the controlled substances were hidden inside of toy packaging.
Taylor is scheduled to be sentenced on December 8. She faces a mandatory minimum penalty of 10 years in prison. Fischer is scheduled to be sentenced on January 5, 2024. He also faces a mandatory minimum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after Senior U.S. District Judge T. S. Ellis III accepted the plea.
Assistant U.S. Attorney Heather Call is prosecuting 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 No. 1:23-cr-112.
Trenton, New Jersey Man Pleads Not Guilty to Human Smuggling ChargesRead the Press Release
Burlington, Vermont – The United States Attorney’s Office stated that Victor Francisco Lopez-Padilla, 35, of Trenton, New Jersey, will be arraigned in the District of Vermont before United States Magistrate Judge Kevin J. Doyle on August 29, 2023. He is charged in a two-count indictment that alleges he and codefendant Simon Jacinto-Ramos conspired to commit human-smuggling offenses and brought a migrant without legal status to the United States for the purpose of private financial gain. Lopez-Padilla was arrested in Trenton on August 1, 2023, and was seen for an initial appearance in the United States District Court for the District of New Jersey before being transferred to the District of Vermont for further proceedings. Jacinto-Ramos has not yet been arrested in conjunction with the indictment. An arraignment will be scheduled after his arrest.
According to court records, Lopez-Padilla and Jacinto-Ramos, a resident of Montreal, worked together to bring migrants to, and smuggle them into, the United States for their personal profit, while knowing that the migrants lacked legal status to enter and remain in the United States. The defendants arranged transportation for the smuggled migrants from the Montreal area to a remote area of the border between the United States and Canada near Richford, Vermont. They provided a route for the migrants to follow on foot, and they tracked the migrants’ progress via cell phone mapping programs. The defendants then arranged transportation for the migrants in the United States in furtherance of their illegal entry. The United States Border Patrol intercepted at least four such smuggling events between April 2022 and June 2023 that appeared to agents to have been organized by the defendants based on phone data and witness interviews, and those events involved at least 23 smuggled migrants in total.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Lopez-Padilla remains presumed innocent unless and until he is convicted of a crime. Lopez-Padilla faces a maximum sentence of 10 years of imprisonment and a minimum sentence of 3 years if convicted as charged. The actual sentence would be determined with reference to Federal Sentencing Guidelines.
U.S. Attorney Nikolas P. Kerest commended the investigative efforts of the United States Border Patrol and thanked Homeland Security Investigations and the New Jersey State Police for their support of Border Patrol in the apprehension of Lopez-Padilla.
Assistant U.S. Attorney Matthew Lasher is handling the prosecution of Lopez-Padilla and Jacinto-Ramos. Lopez-Padilla is represented by Devin McLaughlin, Esq.
Transient Woman Sentenced in Fentanyl DeathRead the Press Release
Acting United States Attorney Susan Lehr announced that Kimberly Watts, 36, was sentenced today in federal court in Omaha, Nebraska, for Distribution of Fentanyl Analogue Resulting in Death. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Watts to 240 months’ imprisonment. There is no parole in the federal system. After her release from prison, she will begin a 3-year term of supervised release.
On August 22, 2022, Watts provided the victim with fentanyl at the Travel Inn at 108th and L Streets, Omaha, Nebraska. The victim, 31, went back to his apartment, where he used the controlled substance and subsequently died. The fentanyl was a contributing cause of the victim’s overdose death.
This case was investigated by the Drug Enforcement Administration’s Overdose Task Force, which is comprised of members of law enforcement from the Drug Enforcement Administration, Omaha Police Department, Nebraska State Patrol, and Douglas County Sheriff’s Office.
Tampa Gang Member Sentenced to Ten Years in Federal Prison for Possessing A FirearmRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Kimball Mizelle has sentenced Demetrius Lamar Rahmings (28, Tampa) to 10 years in federal prison for possessing a loaded firearm as a convicted felon. The court also ordered Rahmings to forfeit a Taurus G2C 9mm Pistol and 19 rounds of 9mm ammunition traceable to the offense. Rahmings had been found guilty on May 30, 2023, following a bench trial.
According to court documents, on October 8, 2020, Rahmings was wanted on several outstanding warrants for violent crime charges in state court. Deputies from the U.S. Marshals Service Fugitive Apprehension Unit and officers from the Tampa Police Department were monitoring a residence in Tampa that was known to be frequented by Rahmings’s associates. Law enforcement officers observed Rahmings at that residence and when they approached him, he fled on foot into the home. The officers pursued him into the residence, and once inside, Rahmings dropped a bookbag in the hallway and then hid in a bedroom. Rahmings was taken into custody. The officers recovered a Taurus 9mm firearm with an extended magazine loaded with 19 rounds of ammunition, plastic baggies, a digital scale, and an orange ski mask from the backpack.
At the time of this offense, Rahmings had previously been convicted in state court in Florida of multiple felonies, including aggravated battery with a deadly weapon (2013); aggravated assault with weapon (2013); aggravated battery (2013); possession of a firearm as a felon (2019); and fleeing to elude law enforcement (2019). As a convicted felon, Rahmings is prohibited from possessing a firearm or ammunition under federal law. Rahmings had recently been released from Florida Department of Corrections on February 5, 2020.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives, the Tampa Police Department, and the U.S. Marshals Service Fugitive Apprehension Unit. It was prosecuted by Assistant United States Attorney Shauna S. Hale.
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.
Software Development CEO Sentenced to Two Years in Prison for Tax and Conspiracy ChargesRead the Press Release
SAN JOSE – Kishore Kethineni, the CEO of multiple software development and IT services companies in the Bay Area, was sentenced to two years in prison for his role in a conspiracy to commit bank fraud and for his failure to pay over more than $2 million in employment taxes, announced United States Attorney Ismail J. Ramsey, Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp, and Internal Revenue Service—Criminal Investigation (IRS-CI) Special Agent in Charge Darren Lian of the Oakland Field Office. The sentence was handed down by the Hon. Edward J. Davila, United States District Judge.
Kethineni, of Dublin, Calif., pleaded guilty to the charges on February 21, 2023. In pleading guilty, Kethineni admitted that he conspired with his two brothers to engage in a scheme in which they fraudulently obtained over $3.1 million in loans under the Paycheck Protection Program (PPP).
The PPP is a COVID-19 pandemic relief program administered by the Small Business Administration (SBA) that provided forgivable loans through third-party lenders to small businesses for payroll and certain other expenses. Kethineni was the sole owner and CEO of four of the companies involved in the scheme: BiteGate, Inc., Dinenamics, Inc., Neelinfo, Inc., and TechPMC, Inc. His brothers were the owners of the three other companies involved: Boxstertech, Inc., Hiretechforce, Inc., and TechGlobalSystems, Inc. From April 2020 through May 2021, Kethineni and his brothers submitted multiple PPP loan applications on behalf of their various respective companies, in which they made fraudulent representations and provided falsified payroll data and records to obtain loans and loan forgiveness under the program.
Collectively, Kethineni and his brothers submitted at least twelve PPP loan applications on behalf of their seven companies. The applications sometimes were virtually identical. The applications resulted in the approval and funding of nine loans totaling over $3.1 million in PPP funds. Upon receipt of the PPP loan funds, Kethineni redirected significant amounts to himself and his family members instead of using the funds for payroll and other authorized business expenses under the program.
Kethineni also admitted to willfully failing to account for and pay over employment taxes that his company, Neelinfo, Inc., had withheld from the pay of its employees, incurring an employment tax liability of over $2 million over the course of five years (from 2014 through 2018). Kethineni acknowledged that he used a payroll service company to process Neelinfo’s employee payroll and track its employment tax obligations. Every quarter, the payroll service company provided Neelinfo with a prepared Form 941 that reflected the taxes withheld from Neelinfo’s employees, which Neelinfo was required to pay over to the IRS. Despite receiving these prepared tax forms each quarter, Kethineni did not file them with the IRS, nor did he pay over any employment taxes on behalf of Neelinfo, while still causing Neelinfo to make thousands of dollars in other expenditures. At the end of each year, the payroll service also provided Neelinfo with its employees’ Forms W-2, which were used by the employees to file their personal income taxes. However, due to Kethineni’s failure to file any employment tax forms or pay over Neelinfo’s employment taxes as required, some of Neelinfo’s employees were subject to audits and inspection by the IRS after filing income tax returns based on income that Neelinfo never reported.
On February 15, 2023, Kethineni was charged by Superseding Information with one count of failure to pay over employment tax in violation of 26 U.S.C. § 7202 and one count of conspiracy to commit bank fraud in violation of 18 U.S.C. § 1349. Kethineni pleaded guilty to both counts.
In addition to the prison term, Judge Davila also ordered Kethineni to serve two years of supervised release—to begin after the prison term—to pay $3,295,514.25 in restitution, and to pay a $15,000 fine. The court also ordered entry of a money forfeiture in the amount of $3,186,315.00.
Assistant U.S. Attorney Annie Hsieh is prosecuting the case with the assistance of Maryam Beros and Lance Libatique. The prosecution is the result of an investigation by IRS-CI and the FBI.
Sioux Falls Man Sentenced for Attempted Production of Child PornographyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, man convicted of Attempted Production of Child Pornography. The sentencing took place on August 21, 2023.
Tyson Thill, age 45, was sentenced to 15 years in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Upon release from custody, Thill must register as a sex offender.
Thill was indicted by a federal grand jury in September of 2021. He pleaded guilty on May 30, 2023.
The conviction stemmed from incidents between February 8, 2019, and July 28, 2021, when Thill downloaded an application to use a camera from a remote location on his cell phone. Thill used the app to control the camera of another phone that he hid in a bedroom for the purpose of taking photographs of a minor getting dressed. Thill knew the minor was underage.
This case was investigated by Homeland Security Investigations, the South Dakota Division of Criminal Investigation, and the National Center for Missing and Exploited Children. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’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 https://www.justice.gov/psc.
Thill was immediately remanded to the custody of the U.S. Marshals Service.