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14 August 2023
Watervliet Woman Sentenced for Making False StatementsRead the Press Release
ALBANY, NEW YORK – Eunice Ting, age 69, of Watervliet, New York, was sentenced on Friday to 1 year of probation, to pay a $10,000 fine, and to pay full restitution for making a false statement to obtain benefits from the United States Department of Labor, Office of Workers’ Compensation Programs.
United States Attorney Carla B. Freedman and Special Agent in Charge Matthew Modafferi, United States Postal Service Office of Inspector General (USPS-OIG), Northeast Area Field Office, made the announcement.
In pleading guilty, Ting admitted that between December 2013, and March 2020, she submitted hundreds of materially false and fraudulent forms to the U.S. Department of Labor’s Office of Workers’ Compensation Programs seeking reimbursement for travel she did not do. Specifically, she falsely claimed workers’ compensation benefits for medically related travel to and from a local YMCA for purported “aquatic therapy” when she had not received any such therapy and did not travel to the YMCA as claimed. She received a total of $26,983 from the Department of Labor because of her fraudulent submissions.
Senior United States District Judge Frederick J. Scullin, Jr. ordered Ting to pay $26,983 in restitution, which Ting paid at sentencing.
USPS-OIG investigated this case and Assistant U.S. Attorney Alexander Wentworth-Ping prosecuted it.
Violent Felon Sentenced to over 6 Years in Federal Prison for Possessing a FirearmRead the Press Release
INDIANAPOLIS- Thomas Burkett, 45, of Indianapolis, Indiana, has been sentenced to 77 months in federal prison after pleading guilty to possessing a firearm as a previously convicted felon.
According to court documents, on August 4, 2021, Indianapolis Metropolitan Police Department (IMPD) investigators were patrolling near the Marathon gas station on North Shadeland Avenue when they saw Thomas Burkett exit the driver’s seat of a white Pontiac with a pistol protruding from his pant pocket.
Officers ran the Pontiac’s license plate and determined that Burkett was the registered owner of the vehicle and had a suspended driver’s license. Investigators reviewed Burkett’s criminal history and learned that he had been previously convicted of numerous felonies, including strangulation, kidnapping, escape, theft, possession of marijuana, and conspiracy to commit armed robbery. As a result of his criminal convictions Burkett is prohibited from ever legally possessing a firearm.
Officers detained Burkett before he left the gas station and recovered a black 9mm handgun from under the driver’s seat of Burkett’s car.
United States Attorney for the Southern District of Indiana, Zachary A. Myers, Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division, and Chief Randal Taylor of IMPD, made the announcement.
“Multiple convictions for violent crimes were not enough to convince this offender to stop carrying a deadly weapon,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “The serious federal prison sentence imposed here should send a message to citizens returning to the community from custody: if you choose to possess a gun you will go right back to prison. Our office will continue to partner with the ATF and IMPD to ensure that the most dangerous armed offenders are taken off our streets.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives and IMPD investigated this case. The sentence was imposed by U.S. District Court Chief Judge Tanya Walton Pratt. Judge Pratt also ordered that Burkett 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 Kelsey L. Massa, 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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Vermont Man Pleads Guilty to Attempted Online Enticement of a MinorRead the Press Release
ALBANY, NEW YORK – Gabriel Charron, age 51, of Milton, Vermont, pled guilty today to the attempted online enticement of a minor.
United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Charron admitted that between May 2022 and March 4, 2023, he exchanged sexually explicit messages online with people he believed were a mother and an 11-year old girl, respectively, in an attempt to entice the child into engaging in sexual acts with him. Charron also admitted that on March 4, 2023, he travelled from Vermont to a hotel in Albany County, New York, with the intent to engage in sexual acts with the 11-year-old girl. Charron was arrested by law enforcement shortly after arriving at the location.
At sentencing on December 18, 2023, before Senior United States District Judge Gary L. Sharpe, Charron faces at least 10 years and up to a life in prison. The judge will also be required to impose a term of post-release supervision of at least 5 years and up to life. The court may also impose a fine, restitution, and forfeiture of the smartphone Charron used to commit his offense. 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. Charron will also have to register as a sex offender upon his release from prison.
The FBI’s Mid-State Child Exploitation Task Force and Capital Region Child Exploitation and Human Trafficking Task Force investigated the case. Each task force is comprised of FBI Special Agents, as well as state and local police investigators, including from the New York State Police.
Assistant U.S. Attorney Rick Belliss 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.
Union County Man Arrested for Corporate Tax EvasionRead the Press Release
NEWARK, N.J. – A Union County contractor was arrested today for tax evasion, U.S. Attorney Philip R. Sellinger announced.
Joel Konopka, 45, of Elizabeth, New Jersey, is charged by indictment with four counts of corporate tax evasion, two counts of filing false corporate tax returns, and two counts of failing to file corporate tax returns. He appeared this afternoon before U.S. Magistrate Judge Jessica Stein Allen in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
From 2014 through 2017, Konopka was the owner and sole shareholder of Konopka Construction Inc., a business which provided construction, contracting and snow plowing services in northern New Jersey. Under the tax laws of the United States, Konopka was responsible for filing truthful and accurate corporate tax returns, Form 1120s, on behalf of Konopka Construction reporting all of the company’s income. From 2014 through 2017, Konopka Construction realized business income of at least $3.3 million, including more than $1 million in 2016. Konopka did not truthfully and accurately report that income. For tax years 2014 and 2015, Konopka filed corporate returns which reported no income for Konopka Construction for both years. For tax years 2016 and 2017, Konopka failed to file any corporate returns as required. From 2014 through 2017, Konopka caused no payments to be made to the IRS for any corporate tax.
Konopka disguised the income realized by Konopka Construction by operating almost exclusively in cash. Konopka received hundreds of checks annually made payable to Konopka Construction for services rendered totaling hundreds of thousands of dollars and cashed all but one check at check cashing businesses in Essex and Ocean counties.
The tax evasion charges are punishable by a maximum potential penalty of five years in prison and a maximum $500,000 fine per count. The filing of false tax returns charges are punishable by a maximum penalty of three years in prison and a $500,000 maximum fine per count. The failure to file tax return charges are punishable by a maximum of one year in prison and a $100,000 fine per count.
U.S. Attorney Sellinger credited special agents with IRS - Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins, and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Mark J. McCarren and Francesca Liquori of the Special Prosecutions Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
konopka.indictment.pdfUBS agrees to pay $1.435 billion for fraud in the sale of residential mortgage-backed securitiesRead the Press Release
ATLANTA – UBS AG and several of its U.S.-based affiliates (together, “UBS”) have agreed to pay $1.435 billion in penalties to settle a civil action filed in November 2018 alleging misconduct related to UBS’ underwriting and issuance of residential mortgage-backed securities (RMBS) issued in 2006 and 2007. UBS will pay the United States $1,435,000,000 in civil penalties in exchange for dismissal of the complaint filed in the action. This settlement resolves the last case brought by a Department of Justice Working Group dedicated to investigating conduct of banks and other entities for their roles in creating and issuing RMBS leading up to the 2008 financial crisis.
“This settlement represents accountability for those entities and individuals who mistakenly believed themselves to be above the law,” said U.S. Attorney Ryan K. Buchanan. “UBS’ conduct in this case played a significant role in causing a financial crisis that harmed millions of Americans. The scope of this settlement should serve as a warning to other financial institutions – both large and small – of the significant penalties that can result when corporations misrepresent vital information to investors and undermine trust in our public markets. We are thankful for the collective efforts of our partners at the U.S. Attorney’s Office for the Eastern District of New York and the investigative agencies to bring this case to resolution.”
“In the wake of the 2008 financial crisis, people all across the country experienced financial ruin and emotional devastation, and many are still recovering nearly 15 years later,” said Associate Attorney General Vanita Gupta. “As this settlement demonstrates, the department and our partner agencies remain committed to holding accountable those who break the law and undermine the well-being of American families.”
“The results achieved by the RMBS Working Group are a testament to the exceptional dedication and hard work by department attorneys over many years,” said Principal Deputy Assistant Attorney General Brian Boynton. “We are grateful for the outstanding support provided by our partners in federal agencies and states that similarly sought to hold responsible those entities that contributed to the 2008 financial crisis.”
“With this resolution, UBS will pay for its conduct related to its underwriting and issuance of residential mortgage-backed securities. The substantial civil penalty in this case serves as a warning to other players in the financial markets who seek to unlawfully profit through fraud that we will hold them accountable no matter how long it takes,” stated U.S. Attorney Breon Peace. “The over $36 billion collected for conduct that fueled the 2008 financial crisis reflects the Department of Justice’s deep commitment to protecting financial markets, investors and the public against fraudulent conduct.”
“The FHFA Office of Inspector General, together with our RMBS Working Group partners, investigated and held accountable those who sought to victimize Fannie Mae, Freddie Mac and investors by selling fraudulent mortgage-backed securities,” said FHFA Inspector General Brian Tomney. “We appreciate our longstanding partnership with the Department of Justice and its vigorous pursuit of justice in this case.”
Following an extensive investigation, the United States filed a complaint alleging that UBS defrauded investors in connection with the sale of 40 RMBS issued in 2006 and 2007. The complaint alleged that UBS knowingly made false and misleading statements to buyers of these securities relating to the characteristics of the mortgage loans underlying the RMBS in violation of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 12 U.S.C. § 1833a (FIRREA). The FIRREA claims were based on alleged violations of the mail, wire, and bank fraud statutes, as well as 18 U.S.C. §§ 1005 and 1014.
The government’s complaint alleged that contrary to UBS’ representations in publicly filed offering documents, UBS knew that significant numbers of the loans backing the RMBS did not comply with loan underwriting guidelines that were designed to assess borrowers’ ability to repay. The complaint further asserted that UBS knew that the property values associated with a significant number of the securitized loans were unsupported, and that significant numbers of the loans had not been originated in accordance with consumer protection laws. UBS was allegedly aware of these significant problems because it had conducted extensive due diligence on the underlying loans prior to the RMBS being issued to determine whether the loans were consistent with representations that would be made to investors. Ultimately, the 40 RMBS sustained substantial losses.
With the UBS settlement announced today, the Department of Justice has collected more than $36 billion in civil penalties from 18 major domestic and foreign banks, originators, and rating agencies for their alleged conduct in connection with mortgages securitized in failed RMBS leading up to the 2008 financial crisis. These resolutions include settlements with eighteen banks, mortgage originators, and rating agencies: Ally Financial; Aurora Loan Services; Bank of America; Barclays; Citigroup; Credit Suisse; Deutsche Bank; General Electric; Goldman Sachs; HSBC; JPMorgan; Moody’s; Morgan Stanley; Nomura; Royal Bank of Scotland; S&P; Société Générale; and Wells Fargo.
Collectively, these matters were handled by 11 U.S. Attorney’s Offices and the Civil Division of the Department of Justice, in conjunction with the RMBS Working Group. The RMBS Working Group was a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that led to the financial crisis. Formed in 2012, the RMBS Working Group brought together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies, including the FHFA Office of Inspector General, the Department of Housing and Urban Development, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Securities and Exchange Commission, and the FBI, to investigate financial fraud in RMBS.
The claims resolved in the settlement are allegations only and there has been no determination of liability.
The government’s case was handled by Assistant U.S. Attorneys Austin M. Hall, Andres H. Sandoval, and former Assistant U.S. Attorney Armen Adzhemyan for the Northern District of Georgia, and Assistant U.S. Attorneys Bonni J. Perlin, Michael J. Castiglione, Richard K. Hayes, Edward K. Newman, and Melanie Speight for the Eastern District of New York, with the support of agents from the Federal Housing Finance Agency-Office of the Inspector General.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
UBS Agrees to Pay $1.435 Billion to Resolve Claims That It Made Misrepresentations in the Sale of Residential Mortgage-Backed SecuritiesRead the Press Release
BROOKLYN, NY – UBS AG and several of its U.S.-based affiliates (together, “UBS”) have agreed to pay $1.435 billion in penalties to settle a civil action filed in November 2018 alleging misconduct related to UBS’ underwriting and issuance of residential mortgage-backed securities (RMBS) issued in 2006 and 2007. UBS will pay the United States $1,435,000,000 in civil penalties in exchange for dismissal of the complaint filed in the action. This settlement resolves the last case brought by a Department of Justice Working Group dedicated to investigating conduct of banks and other entities for their roles in creating and issuing RMBS leading up to the 2008 financial crisis.
Following an extensive investigation, the United States filed a complaint alleging that UBS defrauded investors in connection with the sale of 40 RMBS issued in 2006 and 2007. The complaint alleged that UBS knowingly made false and misleading statements to buyers of these securities relating to the characteristics of the mortgage loans underlying the RMBS in violation of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 12 U.S.C. § 1833a (FIRREA). The FIRREA claims were based on alleged violations of the mail, wire, and bank fraud statutes, as well as 18 U.S.C. §§ 1005 and 1014.
Breon Peace, United States Attorney for the Eastern District of New York; Vanita Gupta, United States Associate Attorney General; Brian M. Boynton, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Division; Ryan K. Buchanan, United States Attorney for the Northern District of Georgia, and Brian M. Tomney, Inspector General for the Federal Housing Finance Agency (FHFA) announced the settlement.
“With this resolution, UBS will pay for its conduct related to its underwriting and issuance of residential mortgage-backed securities. The substantial civil penalty in this case serves as a warning to other players in the financial markets who seek to unlawfully profit through fraud that we will hold them accountable no matter how long it takes,” stated United States Attorney Peace. “The over $36 billion collected for conduct that fueled the 2008 financial crisis reflects the Department of Justice’s deep commitment to protecting financial markets, investors and the public against fraudulent conduct.”
Mr. Peace expressed his appreciation to the Office’s partners at the United States Attorney’s Office for the Northern District of Georgia (NDGA), and to the Federal Housing Finance Agency-Office of the Inspector General for its assistance in the government’s case.
“In the wake of the 2008 financial crisis, people all across the country experienced financial ruin and emotional devastation, and many are still recovering nearly 15 years later,” stated Associate Attorney General Gupta. “As this settlement demonstrates, the department and our partner agencies remain committed to holding accountable those who break the law and undermine the well-being of American families.”
“The results achieved by the RMBS Working Group are a testament to the exceptional dedication and hard work by department attorneys over many years,” stated Principal Deputy Assistant Attorney General Boynton. “We are grateful for the outstanding support provided by our partners in federal agencies and states that similarly sought to hold responsible those entities that contributed to the 2008 financial crisis.”
“This settlement represents accountability for those entities and individuals who mistakenly believed themselves to be above the law,” stated U.S. Attorney NDGA Buchanan. “UBS’ conduct in this case played a significant role in causing a financial crisis that harmed millions of Americans. The scope of this settlement should serve as a warning to other financial institutions – both large and small – of the significant penalties that can result when corporations misrepresent vital information to investors and undermine trust in our public markets. We are thankful for the collective efforts of our partners at the U.S. Attorney’s Office for the Eastern District of New York and the investigative agencies to bring this case to resolution.”
“The FHFA Office of Inspector General, together with our RMBS Working Group partners, investigated and held accountable those who sought to victimize Fannie Mae, Freddie Mac and investors by selling fraudulent mortgage-backed securities,” stated FHFA Inspector General Tomney. “We appreciate our longstanding partnership with the Department of Justice and its vigorous pursuit of justice in this case.”
The government’s complaint alleged that contrary to UBS’ representations in publicly filed offering documents, UBS knew that significant numbers of the loans backing the RMBS did not comply with loan underwriting guidelines that were designed to assess borrowers’ ability to repay. The complaint further asserted that UBS knew that the property values associated with a significant number of the securitized loans were unsupported, and that significant numbers of the loans had not been originated in accordance with consumer protection laws. UBS was allegedly aware of these significant problems because it had conducted extensive due diligence on the underlying loans prior to the RMBS being issued to determine whether the loans were consistent with representations that would be made to investors. Ultimately, the 40 RMBS sustained substantial losses.
With the UBS settlement announced today, the Department of Justice has collected more than $36 billion in civil penalties from 18 major domestic and foreign banks, originators, and rating agencies for their alleged conduct in connection with mortgages securitized in failed RMBS leading up to the 2008 financial crisis. These resolutions include settlements with eighteen banks, mortgage originators, and rating agencies: Ally Financial; Aurora Loan Services; Bank of America; Barclays; Citigroup; Credit Suisse; Deutsche Bank; General Electric; Goldman Sachs; HSBC; JPMorgan; Moody’s; Morgan Stanley; Nomura; Royal Bank of Scotland; S&P; Société Générale; and Wells Fargo.
Collectively, these matters were handled by 11 U.S. Attorney’s Offices and the Civil Division of the Department of Justice, in conjunction with the RMBS Working Group. The RMBS Working Group was a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that led to the financial crisis. Formed in 2012, the RMBS Working Group brought together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies, including the FHFA Office of Inspector General, the Department of Housing and Urban Development, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Securities and Exchange Commission and the FBI, to investigate financial fraud in RMBS.
The UBS case is the last RMBS Working Group case resolved by the U.S. Attorney’s Office of the Eastern District of New York. In six cases the Office and its partners recovered over $11 billion in penalties. The Office thanks its many partners, current and former Assistant U.S. Attorneys, and professional staff for their work on this important Departmental initiative.
The claims resolved in the settlement are allegations only and there has been no determination of liability.
The matter involving UBS was handled by the United States Attorneys’ Offices for the Eastern District of New York and the Northern District of Georgia, with the support of agents from FHFA-OIG. Assistant United States Attorneys Bonni J. Perlin, Michael J. Castiglione, Richard K. Hayes, Edward K. Newman and Melanie Speight from the Eastern District of New York, and Austin M. Hall, Andres H. Sandoval, and former Assistant United States Attorney Armen Adzhemyan from the Northern District of Georgia were in charge of the litigation.
E.D.N.Y. Docket No. 18-CV-6369 (RPK) (PK)
UBS Agrees to Pay $1.435 Billion for Fraud in the Sale of Residential Mortgage-Backed SecuritiesRead the Press Release
UBS AG and several of its U.S.-based affiliates (together, UBS) have agreed to pay $1.435 billion in penalties to settle a civil action filed in November 2018 alleging misconduct related to UBS’ underwriting and issuance of residential mortgage-backed securities (RMBS) issued in 2006 and 2007. This settlement resolves the last case brought by a Justice Department working group dedicated to investigating conduct of banks and other entities for their roles in creating and issuing RMBS leading up to the 2008 financial crisis.
Following an extensive investigation, the United States filed a complaint alleging that UBS defrauded investors in connection with the sale of 40 RMBS issued in 2006 and 2007. The complaint alleged that UBS knowingly made false and misleading statements to buyers of these securities relating to the characteristics of the mortgage loans underlying the RMBS in violation of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). The FIRREA claims were based on alleged violations of the mail, wire, and bank fraud statutes.
“In the wake of the 2008 financial crisis, people all across the country experienced financial ruin and emotional devastation, and many are still recovering nearly 15 years later,” said Associate Attorney General Vanita Gupta. “As this settlement demonstrates, the department and our partner agencies remain committed to holding accountable those who break the law and undermine the well-being of American families.”
“The results achieved by the RMBS Working Group are a testament to the exceptional dedication and hard work by department attorneys over many years,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are grateful for the outstanding support provided by our partners in federal agencies and states that similarly sought to hold responsible those entities that contributed to the 2008 financial crisis.”
“With this resolution, UBS will pay for its conduct related to its underwriting and issuance of residential mortgage-backed securities. The substantial civil penalty in this case serves as a warning to other players in the financial markets who seek to unlawfully profit through fraud that we will hold them accountable no matter how long it takes,” stated U.S. Attorney Breon Peace for the Eastern District of New York. “The over $36 billion collected for conduct that fueled the 2008 financial crisis reflects the Department of Justice’s deep commitment to protecting financial markets, investors and the public against fraudulent conduct.”
“This settlement represents accountability from those who thought they were above the law,” said U.S. Attorney Ryan Buchanan for the Northern District of Georgia. “UBS’ conduct at issue in this case played a significant role in causing a financial crisis that harmed millions of Americans. We will continue to seek accountability when financial institutions – large or small – misrepresent vital information to investors and undermine trust in our public markets.”
The government’s complaint alleged that contrary to UBS’ representations in publicly filed offering documents, UBS knew that significant numbers of the loans backing the RMBS did not comply with loan underwriting guidelines that were designed to assess borrowers’ ability to repay. The complaint further asserted that UBS knew that the property values associated with a significant number of the securitized loans were unsupported, and that significant numbers of the loans had not been originated in accordance with consumer protection laws. UBS was allegedly aware of these significant problems because it had conducted extensive due diligence on the underlying loans prior to the RMBS being issued to determine whether the loans were consistent with representations that would be made to investors. Ultimately, the 40 RMBS sustained substantial losses.
“The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), together with our RMBS Working Group partners, investigated and held accountable those who sought to victimize Fannie Mae, Freddie Mac and investors by selling fraudulent mortgage-backed securities,” said FHFA Inspector General Brian Tomney. “We appreciate our longstanding partnership with the Department of Justice and its vigorous pursuit of justice in this case.”
With the UBS settlement announced today, the Justice Department has collected more than $36 billion in civil penalties from entities for their alleged conduct in connection with mortgages securitized in failed RMBS leading up to the 2008 financial crisis. These resolutions include settlements with the following banks, mortgage originators, and rating agencies: Ally Financial; Aurora Loan Services; Bank of America; Barclays; Citigroup; Credit Suisse; Deutsche Bank; General Electric; Goldman Sachs; HSBC; JPMorgan; Moody’s; Morgan Stanley; Nomura; Royal Bank of Scotland; S&P; Société Générale; and Wells Fargo.
Collectively, these matters were handled by 11 U.S. Attorneys’ Offices and the Justice Department’s Civil Division, in conjunction with the RMBS Working Group. The RMBS Working Group was a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that led to the financial crisis. Formed in 2012, the RMBS Working Group brought together more than 200 attorneys, investigators, analysts, and staff from dozens of state and federal agencies, including the FHFA-OIG, the Department of Housing and Urban Development, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Securities and Exchange Commission, and the FBI, to investigate financial fraud in RMBS.
Assistant U.S. Attorneys Bonni J. Perlin, Michael J. Castiglione, Richard K. Hayes, Edward K. Newman and Melanie Speight for the Eastern District of New York, Austin M. Hall and Andres H. Sandoval, and former Assistant U.S. Attorney Armen Adzhemyan for the Northern District of Georgia handled the case.
The claims resolved in the settlement are allegations only and there has been no determination of liability.
SettlementThree Year Manhunt for an Alleged Fake Doctor Selling an Unproven Coronavirus Cure Ends with Utah Fugitive Behind BarsRead the Press Release
Salt Lake City, Utah – A Utah resident and three-year fugitive was arrested in Utah County on federal charges after fleeing from federal law enforcement in 2020.
According to court documents, Gordon Hunter Pedersen, 63, of Cedar Hills, Utah, was spotted during surveillance by federal agents on July 5, 2023. Pedersen had a warrant issued for his arrest on August 25, 2020, after failing to appear on an indictment in federal court. The indictment charges Pedersen with mail fraud, wire fraud and felony introduction of misbranded drugs into interstate commerce with intent to defraud and mislead.
Court documents also provide that at the beginning of the COVID-19 pandemic, before approved vaccines were available, Pedersen sold via the internet a “structural alkaline silver” product which he claimed “resonates, or vibrates, at a frequency that destroys the membrane of the virus, making the virus incapable of attaching to any healthy cell, or to infect you in anyway.” In Pedersen’s alleged attempt to further defraud, he falsely claimed on YouTube videos to be a board certified “Anti-Aging Medical Doctor.” He is further alleged to have falsely claimed to have a PhD in immunology and a PhD in Naturopathic Medicine.
A pending civil case is being handled by the Department of Justice, Civil Division’s Consumer Protection Branch with assistance from the U.S. Attorney’s Office for the District of Utah. A previous press release on the civil and criminal actions can be found here: https://www.justice.gov/opa/pr/utah-man-posing-medical-doctor-sell-baseless-coronavirus-cure-indicted-fraud-charges.
The image was entered into the public record on PACER in a detention memo. Image: YouTube.com/Public RecordPedersen is scheduled to make his initial appearance on the criminal indictment and to appear at a detention hearing Tuesday, August 15, 2023, at 1:30 p.m., in courtroom 8.4 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 jointly by the FDA’s Office of Criminal Investigation (FDA-OCI), Homeland Security Investigations (HSI), and the Federal Bureau of Investigation (FBI) Salt Lake City Field Office.
The criminal action is being prosecuted by Assistant United States Attorneys Jacob J. Strain and Brian Williams from the U.S. Attorney’s Office for the District of Utah, with assistance from Trial Attorneys Speare Hodges and Sarah Williams from the Department of Justice, Civil Division’s Consumer Protection Branch. James Smith from FDA’s Office of Chief Council is also assisting.
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 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 and https://www.justice.gov/coronavirus/combatingfraud.
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 via the NCDF Web Complaint Form.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Third Florida Man Sentenced for String of Recreational Vehicle Thefts Spanning Multiple StatesRead the Press Release
Montgomery, Alabama – Today, United States Attorney Sandra J. Stewart announced that a federal judge sentenced 34-year-old Yanquiel Lazaro Garcia-Carrera, from West Palm Beach, Florida, to 54 months in prison for his role in a string of recreational vehicle (RV) thefts. During his August 10, 2023, sentencing hearing, the judge also ordered that Garcia-Carrera serve three years of supervised release following his prison term and pay $70,036 in restitution.
According to his plea agreement and court records, Garcia-Carrera and others participated in a conspiracy to steal RVs from dealerships at night and transport them back to Florida. Records indicate that from February 2019 through July 2020, thefts occurred on at least 20 separate occasions in multiple states, including Florida, Georgia, Indiana, Kentucky, Mississippi, Tennessee, West Virginia, and Houston County, Alabama.
Two others charged in the conspiracy were 46-year-old Yohannys Riquenes Diaz, also from West Palm Beach, and 37-year-old Taylon Batista-Garcia, from Margate, Florida. In May 2023, a judge sentenced Riquenes-Diaz to 37 months in prison and Batista-Garcia received a sentence of 26 months in prison. The judge also required that both men pay restitution.
The FBI and the Dothan Police Department investigated this case, with assistance from numerous state and local law enforcement agencies in the affected states. Assistant United States Attorney Brandon W. Bates is prosecuting the case.
Texans Guilty of Operating Major Drug Trafficking EnterpriseRead the Press Release
BEAUMONT, Texas – Three Texas men have pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Nekia Euron Byrd, 48, of Houston; Rodney Ignacio Castro, 41, of Houston; and Terance Babe Green, 43, of Beaumont each pleaded guilty to conspiracy to possess with intent to distribute a controlled substance today before U.S. Magistrate Judge Christine L. Stetson.
According to information presented in court, Byrd, Castro and Green were responsible for trafficking cocaine throughout the Houston-area, and into various locations throughout eastern Texas, including Texarkana, Lufkin and Port Arthur. Specifically, Green controlled a cocaine distribution network in Port Arthur, responsible for importing several kilograms of cocaine each month, for distribution and conversion to cocaine-base. Byrd was responsible for owning two residences in Houston, where narcotics distribution in methamphetamine, cocaine, marijuana and promethazine occurred. These residences were responsible for providing wholesale distribution of narcotics to mid-level dealers throughout the Houston-area and eastern Texas. Castro served as a source-of-supply for cocaine for Byrd’s operation, and several other mid-level dealers servicing Houston and eastern Texas. On Sep. 28, 2021, a search warrant was served at Castro’s residence resulting in the seizure of $1,050,860.00 in U.S. Currency, and assorted jewelry worth roughly $250,000.00. Estimates based upon seizures and wiretaps indicate Castro was responsible for trafficking over 100 kilograms of cocaine in the course of this conspiracy.
The defendants each face from 10 years to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being investigated by the Drug Enforcement Administration and the Internal Revenue Service - Criminal Investigation and prosecuted by Assistant U.S. Attorney Michael A. Anderson.
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Senior FARC Commander Pleads Guilty in Brooklyn Federal Court to Conspiring to Distribute Massive Quantities of Cocaine for Importation into the United StatesRead the Press Release
Martin Leonel Perez Castro, also known as “Richard,” pleaded guilty today in federal court in Brooklyn to conspiracy to distribute cocaine internationally, intending and knowing that the cocaine would be illegally imported into the United States. The proceeding was held before United States District Judge Brian M. Cogan. Perez Castro, the commander of the Revolutionary Armed Forces of Colombia (FARC) 30th Front, a group that operated in southwestern Colombia, was extradited to the Eastern District of New York in June 2022. When sentenced, he faces up to life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Anne Milgram, Administrator, U.S. Drug Enforcement Administration (DEA), and Thomas M. Fattorusso, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, New York Field Office (IRS-CI), announced the guilty plea.
“The defendant was a senior FARC leader who financed the group’s violence and terrorism through the production and distribution of thousands of kilograms of cocaine on a global scale,” stated United States Attorney Peace. “Today’s guilty plea is a powerful reminder to drug trafficking organizations all over the world that this Office and our law enforcement partners will bring them to justice for the harm and misery they have caused in the United States and elsewhere.”
Mr. Peace extended his appreciation to the DEA’s office in Bogota, Colombia, the United States Department of State, the Department of Justice’s Office of International Affairs, the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) Judicial Attaché Office in Bogotá, Colombia, the Colombian National Police, and the Government of Colombia.
“As a senior FARC leader, Perez Castro used violence, power and notoriety to import tons of cocaine from Colombia into New York City,” stated DEA Administrator Milgram. “Today's guilty plea reflects DEA’s unwavering commitment to hold all drug traffickers accountable and should send a clear message to drug networks across the globe that we will investigate and dismantle organizations that threaten the safety and health of the American people.”
“This FARC senior official maintained a revenue stream that used extortion and direct sales to cocaine dealers to fund the para-military group. In his position, Perez Castro is responsible for distributing thousands of kilos of cocaine in and around the United States. Today’s guilty plea is the result of the great investigative work of DEA and IRS-CI Special Agents and incredible law enforcement partnerships globally,” stated IRS-CI New York Special Agent-in-Charge Fattorusso.
As set forth in the indictment, court filings, and statements made in Court, the FARC’s 30th Front, led by Perez Castro, generated revenue by directly selling cocaine to drug traffickers or extorting payments from traffickers operating in the 30th Front’s territory. The cocaine trafficked by the 30th Front was later smuggled into the United States, Europe, and elsewhere. The 30th Front also attacked rival drug trafficking groups or Colombian government forces to protect or expand FARC territory. As part of his plea, Perez Castro will take responsibility for the distribution of more than 75,000 kilograms of cocaine.
The FARC was founded in 1964 as a left-wing paramilitary group dedicated to the violent overthrow of the Government of Colombia. Over decades of conflict, the FARC attacked Colombian government forces and used targeted killings, kidnapping, and other terrorist tactics to achieve its ends. In October 1997, the U.S. Secretary of State designated the FARC as a foreign terrorist organization (FTO), pursuant to Title 8, United States Code, Section 1189. After the Government of Colombia and the FARC entered into a peace accord in 2016, the FARC formally dissolved. On November 30, 2021, the U.S. Secretary of State revoked the designation of the FARC as an FTO. The defendant’s conduct occurred prior to the 2016 peace accord.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Andrew D. Wang, Adam Amir, and Miranda Gonzalez are in charge of the prosecution.
The Defendant:
MARTIN LEONEL PEREZ CASTRO
Age: 53
ColombiaE.D.N.Y. Docket No. 14-CR-465 (S-2) (BMC)
Schoharie County Sex Offender Admits Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – John C. Hotaling, age 62, of Esperance, New York, pled guilty today, on the eve of trial, to possessing child pornography.
United States Attorney Carla B. Freedman; Special Agent in Charge Janeen DiGuiseppi of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Acting Superintendent Steven A. Nigrelli made the announcement.
Hotaling admitted that in 2020, he possessed child pornography images, some of which he created by photoshopping the faces of children onto nude adult bodies engaged in sexually explicit conduct, a process known as “morphing.” Hotaling was on supervised release at the time for a 2009 conviction for engaging in the same conduct. He also admitted violating his terms and conditions of supervised release. Trial in the case was scheduled to begin tomorrow, August 15.
At sentencing on January 4, 2024, before United States District Judge Glenn T. Suddaby, Hotaling faces a mandatory minimum sentence of 10 years and a maximum sentence of 20 years in prison, a fine of up to $250,000, and a term of 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.
The FBI, New York State Police and U.S. Probation Department investigated the case. Assistant U.S. Attorneys Douglas Collyer, Ashlyn Miranda and Rick Bellis are 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.
Sarasota Man Pleads Guilty to Possessing A Firearm as A Convicted FelonRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Marquis Henry Mack (33, Sarasota) has pleaded guilty to possessing a firearm as a convicted felon. Mack faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been set.
According to court documents, on January 4, 2023, deputies from the Sarasota County Sheriff’s Office responded to Mack’s residence to serve a narcotics-related arrest warrant that had been issued in Manatee County. Mack was standing in his driveway when the deputies approached him. When informed of the pending arrest warrant, Mack turned around and began to walk toward his garage, failing to obey all verbal commands to stop. The deputies grabbed ahold of Mack, and as Mack struggled to break free, the deputies pulled a loaded SCCY CPX-1 9mm caliber pistol from Mack’s front pocket.
Mack, a previously convicted felon, had served 18 months in state prison after sustaining a conviction for possessing a firearm as a convicted felon in 2021. As a convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sarasota County Sheriff’s Office, and the Manatee County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys David W.A. Chee and Samantha E. Beckman.
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.
Sacramento Man Sentenced to over 7 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Quentin Carthen, 41, of Sacramento, was sentenced today to seven years and eight months in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on March 16, 2020, Carthen was riding in a car that was stopped by law enforcement officers. Carthen—who had been paroled from state prison just four days earlier—got out of the car, ignored commands to stop, and ran away from the detectives. As he ran away, Carthen dropped a tan-colored bag that he had been carrying, and when police later seized the bag, they found an assault weapon inside, loaded with a bullet in the chamber, an extended magazine, a silencer, and the safety switch set to “fire.” This gun also had a rubber glove-like piece placed over the trigger, which would allow its user to pull the trigger without leaving fingerprints. He has previously been convicted of several felonies, including drug trafficking and assault.
This case was the product of an investigation by the Sacramento County Sheriff’s Office and the Federal Bureau of Investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice 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.
Richland Man Sentenced to 25 Years in Federal Prison for Producing Child PornographyRead the Press Release
Yakima, Washington – On August 14, 2023, U.S. District Judge Mary K. Dimke sentenced Allen Richard Smith, 66, of Richland, Washington, to 25 years in federal prison for producing images of child pornography depicting minor boys in the Philippines. Judge Dimke also ordered Smith to serve the remainder of his life on federal supervision after he is released from prison. Smith pleaded guilty on September 24, 2021. In announcing sentence, Judge Dimke noted, that Smith has shown that with even a cell phone in his hand, he poses a danger to children across the world.
Smith first came to the attention of law enforcement because Facebook reported that he was distributing images of child pornography on Facebook from April 2019 through May 2020. Special Agents with Homeland Security Investigations (“HSI”) and the Richland Police Department sought and obtained search warrants for Smith’s social media accounts, and discovered significant amounts of child pornography that Smith had sent and received. In his accounts, Smith also had numerous ongoing conversations with other adult men in which Smith remotely directed the real-time recording of hands-on sexual abuse of destitute boys in the Philippines who were as young as 8 years old.
Among the computers and digital devices that law enforcement officers seized from Smith’s residence in Richland was a Dell PC, whose hard drive contained a folder named “Allen’s files” and a subfolder Smith named “FB & Twitter Friends from Around the World – Collection of Pics & Vids.” In that file, Smith specifically identified his victims with highly-detailed lists of the boys’ names, ages, and locations. Law enforcement identified numerous victims from around the United States and the rest of the world. For one minor victim in Guatemala, Smith even transferred funds to the child’s mother in exchange for images of child pornography.
In October 2017, Smith traveled to the Philippines in person. The Filipino authorities checked Smith’s records, learned that he was a registered sex offender based on a prior conviction in Benton County Superior Court for two counts of First Degree Child Molestation, and denied him entry.
Law enforcement officers were able to locate and interview several of Smith’s victims, although many more could not be identified with certainty. Several of Smith’s victims described him seeking them out online and offering them money or cell phone minutes in exchange for them performing sex acts on video for Smith. Where it was possible to do so, American law enforcement and diplomatic officers worked with local authorities to remove children from dangerous situations.
“It is serious enough that Defendant – a convicted and registered sex offender – repeatedly traded, collected, and produced crime-scene videos of young boys being sexually abused. But his conduct was even worse: he specifically sought out vulnerable, deeply-impoverished children in foreign countries and offered money in exchange for sexual access. Mr. Smith’s conduct demonstrates a shocking and callous objectification of vulnerable victims,” said U.S. Attorney Vanessa R. Waldref. “This case highlights the importance of vigilance against all forms of child exploitation. Law enforcement learned about Mr. Smith based solely on images that Facebook reported, but the thorough investigation revealed his conduct was even more severe than downloading images from the Internet. It is only because we take child pornography so seriously that authorities were able to apprehend a person who perpetrated repeated hands-on sexual abuse of many vulnerable boys from around the world.”
“Mr. Smith’s conduct demonstrates the lengths to which child abusers go to exploit their victims and share this graphic material across the Internet,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “I cannot stress enough to parents how important it is for them to know who their children interact with online, just as much as they know who their children spend time with in real life. Protection of victims is a global priority for HSI, whether they are in Richland and the Tri-Cities or the Philippines and Guatemala. In cases like this, our Project Angel Watch prevents and deters further exploitation of children by alerting authorities to the international travel plans of individuals convicted of sex crimes against children.”
“Cases like this demonstrate how child exploitation cases defy traditional jurisdictions,” said Richland Police Chief Brigit Clary. “We know these offenders leverage technology to feed their destructive lifestyle, but we are committed to using our skills, our technology, and our partnerships to pursue these offenders, even across international borders, to deliver justice for our children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the 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 sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by Homeland Security Investigations, the Southeast Regional ICAC Task Force, and the Richland Police Department. The case was prosecuted by Alison L. Gregoire and David M. Herzog, Assistant U.S. Attorneys for the Eastern District of Washington.
4:20-CR-06033-MKD
Poplar man sentenced to prison for sexual abuse on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS — A Poplar man who admitted sexually abusing a woman on the Fort Peck Indian Reservation was sentenced today to four years and eight months in prison, to be followed by 30 years of supervised release, U.S. Attorney Jesse Laslovich said.
Shane Daniel Freemont, 33, pleaded guilty in February to sexual abuse.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that in September 2020, Freemont was at his residence, drinking with a group of individuals. One of the individuals, identified as Jane Doe, was drinking with Freemont and blacked out from intoxication. Despite her level of intoxication, Freemont had sex with Jane Doe. The victim was physically incapable of declining to participate in or to communicate unwillingness to engage in sex.
The U.S. Attorney’s Office prosecuted the case. The FBI and Fort Peck Department of Law and Justice conducted the investigation.
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Pittsburgh Resident Sentenced to 18 Months of Imprisonment for Convictions of Agreeing with Others to Pay Illegal Kickbacks Related to Laboratory TestsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania has been sentenced in federal court to 18 months of imprisonment, and ordered to forfeit $9 million in criminal proceeds and pay more than $77 million in restitution on his convictions for conspiring to pay illegal kickbacks related to laboratory tests, United States Attorney Eric G. Olshan announced today. Reddy previously pled guilty to three counts of conspiring to commit offenses against the United States and one count of offering and paying kickbacks in connection with a federal health care program.
United States District Judge William S. Stickman imposed the sentence on Ravitej Reddy, 56, of Pittsburgh, PA.
According to information presented to the court, Reddy used two Pittsburgh-area laboratories he owned and operated in the execution of three illegal kickbacks schemes. Reddy and others paid kickbacks to marketers in return for the marketers obtaining cheek swabs from Medicare beneficiaries to be used in laboratory testing. Reddy and others also paid kickbacks to ensure that telemedicine physicians provided prescriptions for laboratory testing for the swabs obtained by the marketers. Reddy’s labs then billed for the performance of the tests. In all, Reddy and others caused a loss to the United States in excess of $60 million.
United States Attorney Olshan commended the Federal Bureau of Investigation and Department of Health and Human Services, Office of Inspector General for the Investigation for the investigation leading to the successful prosecution of Reddy.
The United States Attorney’s Office’s efforts to combat healthcare fraud are frequently made possible by tips from the community. To report suspected fraud, please contact the FBI’s healthcare fraud tipline at [email protected], or the Department of Health and Human Services at 1-800-HHS-TIPS.
Passaic County Man Sentenced to 186 Months in Prison for Producing Child Pornography and Online EnticementRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 186 months in prison for producing one or more images of child sexual abuse and enticing a minor to engage in sexually explicit conduct, U.S. Attorney Philip R. Sellinger announced today.
Jose Minaya, 27, of Paterson, New Jersey, previously pleaded guilty before U.S. District Judge Julien X. Neals to an information charging him with one count of production of child pornography and one count of online enticement. Judge Neals imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In July 2019, Minaya used a web-based application to engage a child in a sexually explicit conversation online. Minaya persuaded the child to take sexually explicit photographs of the child and send them to him. Minaya was arrested at his home in May 2020, at which time agents seized multiple electronic devices. Further investigation revealed that Minaya had used another application to entice an additional minor to engage in sexually explicit conduct.
In addition to the prison term, Judge Neals sentenced Minaya to lifetime supervised release and ordered him to register as a sex offender.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations Newark, under the direction of Special Agent in Charge Ricky J. Patel, with the investigation leading to today’s sentencing. He also thanked the Passaic County Sheriff’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Oregon Felon Sentenced to More Than Six Years for Drug Trafficking and Firearm PossessionRead the Press Release
Tampa, Florida – U.S. District Judge Katherine Kimball Mizelle has sentenced Johnathan Thuemler (32, Oregon) to six years and five months in federal prison for possessing with the intent to distribute 40 grams or more of fentanyl and for possessing a firearm as a convicted felon. Thuemler had pleaded guilty on May 15, 2023.
According to court documents, on February 9, 2023, Thuemler and another individual were stopped by deputies from the Pasco Sheriff’s Office for a traffic infraction. A deputy observed a loaded firearm concealed next to Thuemler, a convicted felon. Deputies also located 124 pressed pills which contained fentanyl inside the vehicle. Following the stop, deputies searched Thuemler’s hotel room and located more than 2,000 additional pressed pulls containing fentanyl. Thuemler and the other individual explained that they had traveled to Florida from Oregon to sell the pills.
Thuemler is a convicted felon for offenses related to the sale of heroin. Therefore, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pasco Sheriff’s Office. It was prosecuted by Assistant United States Attorney Samantha Beckman.
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.
Mount Carmel Man Indicted for Trafficking Methamphetamine, Fentanyl, and HeroinRead the Press Release
WILLIAMSPORT- The U.S. Attorney’s Office for the Middle District of Pennsylvania announced today that Charles Derr, age 47, of Mount Carmel, Pennsylvania, was charged by a federal grand jury with drug trafficking, possession with intent to distribute methamphetamine, fentanyl, and heroin. The case was unsealed following Derr’s arrest.
According to United States Attorney Gerard M. Karam, the indictment charges Derr with possession with intent to distribute methamphetamine, fentanyl, and heroin on June 17, 2021. The indictment also seeks the criminal forfeiture of $10,754 in cash recovered the same day.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Agency, and the Pennsylvania State Police. Assistant U.S. Attorney Alisan V. Martin is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
The maximum penalty under federal law for each of these offenses is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
Montpelier Man Charged with Producing, Distributing, and Possessing Child Sexual Abuse MaterialsRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that Jeffery Paul Coolidge, 58, of Montpelier, Vermont, appeared on Friday, August 11, 2023, before United States Magistrate Judge Kevin J. Doyle after a criminal complaint issued charging him with production, distribution, and possession of Child Sexual Abuse Materials (CSAM). Coolidge was ordered temporarily detained pending a detention hearing scheduled for Wednesday, August 16, 2023.
According to court records, Coolidge used the handle “phantasy” to operate on darkweb forums dedicated to those with sexual interest in male children aged four to fourteen years old. On August 8, 2023, Coolidge shared via those forums sexually explicit photographs he had taken of a male child with whom he had contact. Homeland Security Investigations, with the assistance of the Montpelier Police Department, arrested Coolidge the next day.
The United States Attorney’s Office emphasizes that a criminal complaint contains allegations only and that Coolidge is presumed innocent until and unless he is convicted of a crime. Coolidge faces a mandatory minimum sentence of 15 years’ imprisonment, and up to 30 years of imprisonment, for the production of child sexual abuse images; a mandatory minimum of 5 years and up to 20 years’ imprisonment for the distribution of child sexual abuse images; and up to 10 years’ imprisonment for the possession of child sexual abuse images. The actual sentence, however, would be determined by the Court with guidance from the advisory United States Sentencing Guidelines.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of Homeland Security Investigations, the Montpelier Police Department, Vermont’s Internet Crimes Against Children Task Force, and the Vermont Attorney General’s Office.
The prosecutor is Assistant United States Attorney Corinne M. Smith. Coolidge is represented by the Office of the Federal Public Defender.
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 Child Exploitation Obscenity Section, Criminal Division (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Mexican National Pleads Guilty to Attempting to Entice A 14-Year-Old over the InternetRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Pedro Hernandez Ortiz (38, Mexico) has pleaded guilty to attempted online enticement of a minor. Ortiz faces a minimum mandatory penalty of 10 years, up to life, in federal prison. A sentencing date has not been set.
According to court documents, in August 2022, the Florida Department of Law Enforcement (FDLE) and the Lake County Sheriff’s Office conducted an undercover operation for the purpose of identifying and apprehending individuals using the internet to exploit juveniles for sexual activity. As part of the operation, an FDLE agent created an undercover profile on the forum of a 14-year-old female named “Haley.” Ortiz soon messaged “Haley” and suggested that they meet to have sex. When “Haley” expressed concern about getting pregnant, Ortiz promised to use a condom. “Haley” eventually told Ortiz that she would sneak out of her house to meet him at a location in Lake County. When Ortiz arrived at the planned location, he was arrested and subsequently admitted to chatting with “Haley” and knowing that she was only 14 years old. He also confessed to traveling to meet “Haley” for the specific purpose of having sex with her.
This case was investigated by the Lake County Sheriff’s Office, the Florida Department of Law Enforcement, and Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Metro Atlanta man charged with laundering funds from COVID-19 unemployment relief and submitting fraudulent EIDL loan applicationRead the Press Release
ATLANTA - Austin Martin Siampwizi has been arraigned on federal charges of concealment money laundering, money laundering conspiracy, and wire fraud.
“Money launderers used the COVID-19 pandemic to financially benefit while millions of Americans were suffering,” said U.S. Attorney Ryan K. Buchanan. “We will continue to prosecute individuals who defrauded this program at the expense of vulnerable citizens in need of this critical relief.”
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance programs,” said Mathew Broadhurst, Special Agent-in-Charge, Southeast Region, U.S. Department of Labor, Office of Inspector General. “We will continue to work with our law enforcement partners to aggressively investigate these types of allegations.”
According to U.S. Attorney Buchanan, the indictment, and other information presented in court: Austin Martin Siampwizi allegedly laundered money procured from fraudulent unemployment claims submitted to the Employment Security Department of Washington State (“ESD”). These claims were filed using personal identifiable information stolen from more than 50 individuals. Additionally, Siampwizi has been charged with wire fraud for allegedly submitting a fraudulent Economic Injury Disaster Loan (“EIDL”) application to the SBA.
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) created a temporary federal program that provided up to 39 weeks of unemployment benefits for those unemployed because of the pandemic and included a provision to provide temporary benefits to individuals who had exhausted their entitlement to regular benefits or were otherwise not eligible. That temporary federal program was administered by state employment agencies. The CARES Act also allowed the U.S. Small Business Administration (“SBA”) to offer funding to business owners negatively affected by the pandemic.
Austin Martin Siampwizi, 46, of Atlanta, Georgia, was arraigned before U.S. Magistrate Judge J. Christopher C. Bly. Siampwizi was indicted by a federal grand jury on July 25, 2023.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Department of Labor Office of Inspector General, the U.S. Secret Service, the Internal Revenue Service Criminal Investigation, the Department of Homeland Security-Homeland Security Investigations, Federal Bureau of Investigation, and the U.S. Postal Inspection Service.
Assistant U.S. Attorney Sarah E. Klapman is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Meth trafficking on Rocky Boy’s Indian Reservation sends Colorado man to prison for 10 yearsRead the Press Release
GREAT FALLS — A Colorado man who admitted to trafficking methamphetamine on the Rocky Boy’s Indian Reservation was sentenced today to 10 years in prison, to be followed by 10 years of supervised release, U.S. Attorney Jesse Laslovich said.
Moises Zamora, 37, of Denver, Colorado, pleaded guilty in August 2022 to possession with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that in September 2021, near Box Elder, on the Rocky Boy’s Indian Reservation, law enforcement arrested Zamora and recovered meth from his pocket and his truck. The meth was meant for distribution to others.
Assistant U.S. Attorneys Timothy J. Racicot and Ryan G. Weldon prosecuted the case. The FBI conducted the investigation.
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Marion County Man Charged with Impersonating A Deputy United States MarshalRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Derry Wayne Lambert (52, Belleview) with false impersonation of a federal officer. If convicted, Lambert faces a maximum penalty of 3 years in federal prison.
According to court documents, on July 31, 2023, a deputy from the Marion County Sheriff’s Office stopped Lambert who was driving his personally owned truck. The truck had no agency insignia, but was equipped with red and blue flashing lights, a Public Address (PA) system, and an audible siren. A firearm was later recovered from the vehicle’s center console. Lambert, who was wearing a hat with the phrase “Police U. S Marshal,” explained to the deputy that he was with the United States Marshals Service and was investigating gang activity in Marion Oaks. Lambert also presented a false United States Marshals Service badge. A record check showed that Lambert was not a federal law enforcement officer.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Marion County Sheriff’s Office and the United States Marshals Service. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
Man Indicted for Aiming Laser Pointer at Denver Police Department HelicopterRead the Press Release
DENVER—The U.S. Attorney’s Office for the District of Colorado announces Kevin William Adamchack, age 43, of Franktown, has been indicted by a federal grand jury on a single count of aiming a laser pointer at an aircraft. According to the indictment, on March 2, 2023, Adamchack knowingly aimed the beam of a laser pointer at an aircraft, and at the flight path of the aircraft. The aircraft in question was “Air 1,” a helicopter operated by the Denver Police Department.
Defendant Adamchack had his initial appearance before United States Magistrate Judge Varholak on August 11, 2023.
This case is being investigated by the FBI. Assistant United States Attorney Jena Neuscheler is handling the prosecution.
The charge in the indictment is an allegation and the Defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
CASE NUMBER: 23-cr-00303-RMR
Man Admits Robbing Three Banks, Shooting at Jefferson County DeputiesRead the Press Release
ST. LOUIS – A man from Florissant, Missouri on Monday admitted robbing three banks, shooting at Jefferson County Sheriff’s deputies and forcing his way into a woman’s apartment at gunpoint.
Cameron A. Thomas, 31, pleaded guilty in front of U.S. District Judge Catherine D. Perry to two counts of armed bank robbery, bank robbery, brandishing a firearm in furtherance of a crime of violence, discharging a firearm in furtherance of a crime of violence and two counts of being a felon in possession of a firearm.
Thomas admitted that on Oct. 24, 2020, while dressed as a woman, he handed a note that said, “put money in the bag,” to a teller at the First Community State Bank in Jefferson County.
Three days later, again while dressed as a woman, Thomas entered the Electro Savings Credit Union in St. Louis County, pointed a silver semiautomatic pistol at a teller and said, “Give me all your money.” Thomas put the money in a purse and ran out of the credit union.
The next day, Thomas returned to the First Community State Bank wearing a red coat, black pants and a surgical mask. Thomas pointed a pistol at an employee and said, “This is a robbery, put your hands up.” He then put a white plastic bag on the counter and told another employee to fill it up.
Employees called police, and a Jefferson County Sheriff’s deputy who was in the area tried to stop Thomas, who was in a Mercedes Benz. Thomas fled, leading authorities on a chase that ended at the Walden Pond apartments in High Ridge. Thomas fled on foot, firing multiple times at the deputies following him.
He then forced his way into a woman’s apartment at gunpoint. Deputies knocked at the door, and pulled the woman from the apartment when she signaled to them that something was wrong. Before Thomas was finally arrested, he’d changed into the woman’s clothes and hidden his 9mm pistol inside the apartment.
Thomas also admitted that two days before the robbery, he was in possession of an AK-47-style assault rifle. Police found the rifle after a traffic crash.
Thomas is a convicted felon, having been sentenced to 10 years in prison in 2012 for second-degree robbery.
Thomas is scheduled to be sentenced November 9. The discharge of a firearm count carries a mandatory minimum sentence of 10 years in prison, consecutive to any other charge, and the brandishing charge carries a mandatory minimum sentence of seven years in prison, consecutive to other charges.
The case was investigated by Jefferson County Sheriff’s Department and the FBI. Assistant U.S. Attorney Donald Boyce is prosecuting the case.
Local Contractor Sentenced for Bribing Former School Board President of Madison District Public SchoolsRead the Press Release
DETROIT – John David was sentenced today to 24 months in federal prison after pleading guilty to bribing Albert Morrison, a former School Board President of Madison District Public Schools, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Devin J. Kowalski, Acting Special Agent in Charge of the Federal Bureau of Investigation, Charles Miller, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Division, and John Woolley, Special Agent in Charge of the Department of Education, Office of Inspector General.
David, age 65, was sentenced after pleading guilty before the Honorable Laurie Michelson to Conspiracy to Commit Federal Program Bribery from 2014 through 2018 and Bribery Concerning Programs Receiving Federal Funds. David owned a building maintenance and reconstruction company, Emergency Restoration (a/k/a Emergency Reconstruction), that was awarded over $3.1 million in maintenance and construction projects in the Madison District Public Schools.
David admitted making payments of more than $561,000 to Morrison in order to secure the work for the Madison District. Albert Morrison pleaded guilty on April 25, 2023, and is currently scheduled to be sentenced on August 28, 2023.
“Our community deserves school systems free of corruption,” said United States Attorney Dawn N. Ison. “This prosecution and today’s sentence will help ensure that public school officials conduct themselves with the highest level of honesty, integrity, and transparency and put the interests of our children first.”
“Mr. David received work from the Madison District Public School Board by bribing someone in a position of power which corrupted the process by which contracts were awarded,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI, IRS, and Department of Education Office of Inspector General will continue to work cooperatively to hold defendants like this one accountable for their crimes.”
“Individuals who commit financial fraud of this magnitude and with this degree of dishonesty and deceit, deserve to be punished to the fullest extent of the law,” said Special Agent in Charge Charles Miller, Internal Revenue Service – Criminal Investigation, Detroit Field Office. “IRS-Criminal Investigation, along with our law enforcement partners and the United States Attorney's Office, remain vigilant in identifying, investigating and prosecuting those individuals who seek to use their positions of power to line their own pockets.”
The investigation of this case was conducted by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the Department of Education. It was prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, Karen Reynolds, and Gjon Juncaj.
Las Vegas Resident Sentenced to 10 Years in Prison for Child Sex TraffickingRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today by U.S. District Judge Richard F. Boulware II to 10 years in prison followed by 20 years of supervised release for attempted child sex trafficking and possession of child sexual abuse material.
James Allen Wynhoff (41) pleaded guilty in September 2022 to attempted sex trafficking and possession of child pornography. In addition to the prison term, under the Sex Offender Registration and Notification Act, Wynhoff is required to register as a sex offender.
According to court documents, on March 31, 2022, Wynhoff contacted a person he believed to be a 15-year-old child on the messaging application Kik. Through Kik messages, he solicited and agreed to pay $100 to the child to have sex with him. Furthermore, Wynhoff admitted to possessing 11 videos of child sexual abuse material depicting children as young as toddlers. He has a federal felony conviction in Utah for Interstate Travel with Intent to Engage in Illicit Sexual Contact.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI and Las Vegas Metropolitan Police Department investigated the case. Assistant United States Attorney Supriya Prasad prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
If you suspect that you have information about possible child sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children’s CyberTipline at 1-800-THE-LOST (1-800-843-5678).
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Lackawanna County Man Sentenced to Eight Years' Imprisonment for Drug and Firearm OffenseRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Moises Vargas-Olivio, age 22, of Olyphant, Lackawanna County, was sentenced on August 11, 2023, by U.S. District Court Judge Malachy E. Mannion, to eight years’ imprisonment on the charge of possession of firearms in furtherance of a drug trafficking offense.
According to United States Attorney Gerard M. Karam, Vargas-Olivio previously pleaded guilty and admitted to possessing a loaded .357 Magnum revolver, a loaded .22 caliber handgun, and an illegal “sawed-off” shotgun with a barrel less than 18 inches in length, in furtherance of a drug trafficking crime. The charge stems from an incident on May 22, 2022, in which Lackawanna County Detectives and members of the Olyphant Police Department made a purchase of cocaine from Vargas-Olivio and then obtained a search warrant for Vargas-Olivio’s residence in Olyphant. A search of the residence resulted in the seizure of an additional amount of cocaine packaged for distribution, approximately $20,000 in U.S. currency, numerous pills, marijuana, two loaded handguns, and a loaded “sawed-off” shotgun.
The investigation was conducted by Lackawanna County Detectives, the Olyphant Police Department, and the FBI Safe Streets Task Force. Assistant United States Attorneys Robert J. O’Hara and Brian J. Gallagher prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Inmate Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Corey Michael Perkins, 34, an inmate, pleaded guilty today to conspiracy to distribute suboxone and methamphetamine.
According to court documents and statements made in court, on October 6, 2022, Perkins was an inmate at the Western Regional Jail in Barboursville when he spoke to another individual outside the jail during recorded phone calls about getting a package of suboxone and methamphetamine into the jail. Perkins admitted that he instructed the individual on how to prepare the package, paid an employee working at the jail to transport the package inside, and arranged a meeting between the outside individual and the employee. Perkins further admitted that he intended to distribute the suboxone and methamphetamine. The package was intercepted at the jail before it could be transported inside.
Perkins is scheduled to be sentenced on November 13, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
Perkins conspired with Judy Ann Goodman, also known as Judy Ann Eplion, and Bryanna Danielle Kern. Goodman pleaded guilty to conspiracy to distribute suboxone and methamphetamine on April 3, 2023. Goodman admitted to conducting the recorded jail phone calls with Perkins. Kern pleaded guilty to conspiracy to distribute suboxone on February 21, 2023. Kern admitted to conspiring with Perkins and Goodman while working as a kitchen employee at the Western Regional Jail. Goodman and Kern each await sentencing.
In an earlier case, Perkins pleaded guilty to conspiracy to distribute suboxone, methamphetamine, and fentanyl. In that case, Perkins admitted to coordinating with multiple individuals to get drugs into the Western Regional Jail from November to December 2020. Perkins was sentenced to 11 years and eight months in prison in that case on August 22, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the investigations section of the West Virginia Division of Corrections and Rehabilitation (WVDCR).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Ryan Keefe and Courtney L. Finney are 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. 3:22-cr-220.
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Huntington Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Ampless Ray Lilly, 50, of Huntington, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on January 30, 2018, a law enforcement officer conducted a traffic stop of a vehicle driven by Lilly in Hurricane. Lilly admitted to telling the officer that he had a gun and was a convicted felon. The officer found a Ruger 9mm pistol between the driver’s seat and center console.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Lilly knew he was prohibited from possessing a firearm because of his prior felony conviction for first-degree sexual assault in Lincoln County Circuit Court on January 22, 1993.
Lilly is scheduled to be sentenced on November 13, 2023, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Hurricane Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie Taylor 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-9.
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Houston Man Pleads Guilty to Possessing with Intent to Distribute Three Kilograms of FentanylRead the Press Release
NEW ORLEANS – Jorge Isaac Gonzalez-Medina, age 31, of Houston, Texas. pleaded guilty before United States District Judge Jane Triche Milazzo to violating the Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to court records, Gonzalez-Medina admitted to possessing with the intent to distribute over 400 grams of fentanyl, in violation of Title 21 U.S.C. §§ 841(a)(1) and 841(b)(1)(A). Gonzalez-Medina admitted to being stopped in a vehicle with three kilograms of fentanyl hidden in the rear axle.
Sentencing is set for November 29, 2023. Gonzalez-Medina faces a mandatory minimum sentence of 10 years, up to life imprisonment, a fine of up to $10,000,000, and at least 5 years of supervised release. The count also carries a mandatory special assessment fee of $100.
This case is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney David Haller of the Violent Crime Unit is in charge of the prosecution.
Harrisburg Man Indicted for EscapeRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Robert H. Thomas, age 64, Harrisburg, Pennsylvania, was indicted on August 9, 2023, by a federal grand jury on escape charges.
According to United States Attorney Gerard M. Karam, the indictment alleges that on March 18, 2023, Thomas escaped from custody of the Capital Pavilion Residential Reentry Center in Dauphin County, where he was confined. Following the escape, he was apprehended on July 21, 2023.
The case was investigated by the U.S. Marshals Service Fugitive Task Force. Assistant U.S. Attorney William Behe is prosecuting the case.
The maximum penalty under federal law for this offense is five years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
Harlan Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
COUNCIL BLUFFS, Iowa – On August 11, 2023, a Harlan man was sentenced to 21 months in prison for failing to register as required by the Sex Offender Registration and Notification Act (SORNA).
According to public court documents, Tyrone Peacock, 32, registered as a sex offender in Illinois in May 2020. Yet, in March 2022, Peacock obtained an Iowa identification card listing a residence in Harlan, Iowa. Peacock resided in and was employed in Iowa, and failed to register, in violation of the requirements of SORNA.
After his prison sentence, Peacock must serve a five-year term of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Harlan Police Department, Shelby County Sheriff’s Office, and Iowa Division of Criminal Investigation investigated the case.
Great Falls man charged with threats to federal officer, firearms crimesRead the Press Release
GREAT FALLS — A Great Falls man appeared in federal court today on charges of making threats to a federal agent and illegal possession of firearms after law enforcement officers arrested him earlier in the day, U.S. Attorney Jesse Laslovich said.
Paul J. Valenzuela, 55, appeared for an initial appearance on a criminal complaint charging him with threats to a federal official and felon in possession of a firearm. If convicted of the most serious crime, Valenzuela faces a maximum of 15 years in prison, a $250,000 fine and three years of supervised release. Valenzuela was detained pending further proceedings.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that Valenzuela, who has felony convictions, illegally possessed a firearm, and that on Aug. 7, he made threats to an FBI officer in text messages in which he which he refers to having access to firearms and stated, “Shoot at me I shoot back.”
A criminal complaint is only an accusation, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Assistant U.S. Attorney Ryan G. Weldon is prosecuting the case. The FBI conducted the investigation.
PACER case reference. 23-72.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl
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Georgetown Restauranteurs Plead Guilty to Tax Offenses and Theft of COVID Relief FundsRead the Press Release
The Defendants evaded more than $1.35M in Taxes and Spent more than $738K in COVID Relief Funds on a Waterfront Condo, Personal Investments, Vacation, and College Tuition
WASHINGTON – Gholam “Tony” Kowkabi, 63, and Karen Kowkabi, 64, of Vienna, Virginia, pleaded guilty in federal court today to tax offenses relating to their failure to pay more than $1.35 million in taxes, arising from their operation of several restaurants in the Washington, D.C. area. Gholam Kowkabi also pleaded guilty to stealing more than $738,000 from the emergency small business relief funds his Georgetown restaurant—Ristorante Piccolo—received during the COVID pandemic. As part of his plea, Mr. Kowkabi acknowledged having spent money, which was intended to help his business, on a waterfront condo in Ocean City, Maryland, as well as personal investments, vacations for his family, and college tuition for his child.
The announcement was made by U.S. Attorney Matthew M. Graves, Acting Deputy Assistant Attorney General Stuart M. Goldberg, of the Justice Department’s Tax Division, and Acting Special Agent in Charge Kareem Carter of the Internal Revenue Service (IRS)-Criminal Investigation, Washington, D.C. Field Office.
“This defendant robbed a program intended to help fellow restauranteurs and other small business owners who were struggling to stay afloat amid the devastating economic impacts of the COVID-19 pandemic,” said U.S. Attorney Graves. “He also created an elaborate scheme to hide assets and play a shell game with the IRS so he could avoid paying the more than one million dollars in taxes that he and his business owed. Our Office will continue to vigorously prosecute such frauds."
“Tax evasion and misappropriation of COVID-19 relief funds undermine the integrity of our tax system and harm honest taxpayers,” said Acting Special Agent in Charge Kareem Carter of the Washington D.C. Field Office. “IRS Criminal Investigation remains steadfast in its commitment to upholding tax compliance and pursuing those who attempt to evade their tax responsibilities.”
Gholam Kowkabi pleaded guilty in the U.S. District Court for the District of Columbia to wire fraud and tax evasion. Wire fraud carries a statutory penalty of 20 years and financial penalties. Tax evasion carries a statutory penalty of five years and financial penalties.
Karen Kowkabi pleaded guilty in the U.S. District Court for the District of Columbia to five counts of willfully failing to pay taxes. Failing to pay tax carries a statutory penalty of one year and financial penalties.
Sentencing hearings are scheduled for December 1, 2023. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Tax Evasion Scheme
According to the statements of offense submitted to the Court and admitted by Gholam Kowkabi and Karen Kowkabi, the Kowkabis have owned and operated Ristorante Piccolo in Georgetown since 1986. The Kowkabis also owned and operated restaurants Catch 15 and Tuscana West in Washington, D.C. From 1998 to 2018, the Kowkabis amassed an unpaid tax balance of $1,351,038.51, including federal income and employment taxes and Trust Fund Recovery Penalties. Gholam Kowkabi admitted to willfully attempting to evade payment of those taxes by concealing assets and obscuring the large sums of money he took from the businesses by, among others, purchasing property in the name of a nominee entity and causing false entries in the businesses’ books and records to hide personal purchases using business bank accounts. Karen Kowkabi admitted that she willfully failed to pay these taxes as well.
Gholam and Karen Kowkabi have agreed to pay $1,351,038.51 in restitution to the IRS.
The Scheme to Steal COVID-19 Relief Funds
Further, from May 13, 2020, to July 27, 2021, Gholam Kowkabi obtained more than more than $1.6 million in COVID-19 relief funds including $474,000 from first draw and second draw Paycheck Protection Program (PPP) loans, an Economic Injury Disaster Loan (EIDL) for $499,900 and a Restaurant Revitalization Fund (RRF) grant for $631,823.28.
First Draw PPP loans could be used to help fund payroll costs, including benefits, and could also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. Second Draw PPP loans could be used to help fund payroll costs, including benefits. Second Draw PPP loan funds could also be used to pay for mortgage interest, rent, utilities, worker protection costs related to COVID-19, uninsured property damage costs caused by looting or vandalism during 2020, and certain supplier costs and expenses for operations. EIDL loan proceeds could be used for working capital to make regular payments for operating expenses, including payroll, rent/mortgage, utilities, and other ordinary business expenses, and to pay business debt. Restaurant Revitalization Funds could be used for specific expenses including business payroll costs (including sick leave), payments on any business mortgage obligation, business rent payments (not including prepayment), business debt service (not including prepayment), both principal and interest, business utility payments, business maintenance expenses, construction of outdoor seating, business supplies, business food and beverage expenses, covered supplier costs, business operating expenses.
In these applications and loan agreements, Gholam Kowkabi fraudulently and falsely promised that the PPP, EIDL, and RRF proceeds would be used only for business-related and eligible purposes as specified in the applications. Instead, Gholam Kowkabi used a portion of the PPP funds, EIDL funds, and RRF funds for unauthorized purposes and for his own personal enrichment, including the purchase of a waterfront condo in Ocean City, Maryland for more than $500,000, two joint venture investments totaling more than $237,000 for the construction of homes in Great Falls, Virginia, and more than $78,500 to open Divan Restaurant in McLean, Virginia. Gholam Kowkabi spent more than $11,000 of COVID relief funds on his home mortgage, more than $14,000 on vacations, more than $62,000 on personal legal expenses, more than $20,000 on home improvement, and more than $5,500 on college tuition payments.
Gholam Kowkabi has agreed to pay $738,657.18 in restitution to the SBA. Gholam Kowkabi has agreed to a money judgment in the amount of $738,657.18 and to the forfeiture of the waterfront condo and the two joint ventures funded with COVID-19 relief funds.
In announcing the plea, U.S. Attorney Graves, Acting Deputy Assistant Attorney General Stuart Goldberg, and Acting Special Agent in Charge Carter commended the work of those who investigated the case from IRS-CI. They expressed thanks for assistance provided by the SBA Office of Inspector General during the investigation of this case. This case is being prosecuted by Assistant U.S. Attorney Leslie A. Goemaat of the Fraud, Public Corruption, and Civil Rights Section and Trial Attorney Sarah Ranney of the Department of Justice, Tax Division.
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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 fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Fresno Men Sentenced to 10 and 17 Years in Prison for Drug Trafficking ConspiracyRead the Press Release
FRESNO, Calif. — Two Fresno residents were sentenced today for gun and drug charges that arose from a long-term investigation that uncovered evidence of a drug trafficking conspiracy, U.S. Attorney Phillip A. Talbert announced.
Maximiliano Wilfrido Rios Ruiz, 27, was sentenced to 10 years in prison for conspiring to distribute and possess with intent to distribute cocaine and possessing a firearm in furtherance of a drug trafficking crime. Pedro Duran, 32, was sentenced to 17 years in prison for possessing with intent to distribute methamphetamine and cocaine.
According to court documents, between February and April 2020, on at least two occasions, Ruiz met with a supplier to obtain cocaine, which Ruiz and his co-conspirator intended to distribute. A search of Ruiz’s residence uncovered a firearm and additional amounts of cocaine.
According to court documents, in April 2020, Duran was identified as a large-scale narcotics trafficker. A search of Duran’s storage unit uncovered 33 pounds of methamphetamine, 3 pounds of cocaine, 3 pounds of fentanyl pills, and over 3 pounds of marijuana. Duran’s residence also contained additional amounts of methamphetamine and cocaine, seven firearms, ammunition, and approximately $8,800 in cash.
These cases were the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, the Fresno County Sheriff’s Office, the Fresno Police Department, the Special Operations Unit of the California Department of Justice and the California Highway Patrol, the California Department of Corrections and Rehabilitation, and the Fresno County District Attorney’s Office. Assistant U.S. Attorneys Justin J. Gilio and Antonio J. Pataca prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Four Columbia Men Sentenced to Multi-Year Terms in Federal Prison for Selling Drugs and Guns to Undercover Law Enforcement OfficerRead the Press Release
COLUMBIA, SOUTH CAROLINA — Four Columbia men have been sentenced to federal prison after selling drugs and guns to an undercover law enforcement officer. Evidence presented to the court showed that between January and March of 2020, an undercover agent conducted 13 controlled buys of drugs and guns from the four co-defendants. In total, the undercover officer purchased more than 120 grams of crack cocaine, 66 grams of fentanyl, a small quantity of heroin, and 12 firearms from the group.
Thomas Lee Thompson, Jr., 29, was a source of supply for some of the heroin and fentanyl sold. During one of the controlled buys, on February 12, 2020, Thompson supplied his co-defendant, Gaylon Mareese Green, with a heroin/fentanyl mixture, which Greene then sold to the undercover officer. Thompson pleaded guilty to possession with intent to distribute and distribution of heroin and fentanyl. He was sentenced to 92 months in federal prison, with a 3-year term of court-ordered supervision to follow.
Gaylon Mareese Greene, 51, was the hand-to-hand distributor in all 13 sales. He pleaded guilty to conspiracy to possess with intent to distribute and to distribute heroin, crack cocaine, and fentanyl, and possessing a firearm in furtherance of drug trafficking. He was sentenced to 180 months in prison, with 8 years of court-ordered supervision to follow.
Calvin Lionell Thomas, 40, of Columbia, was the source of supply for more than 80 grams of crack cocaine and a firearm sold to the undercover officer. He pleaded guilty to possession with intent to distribute and distribution of crack cocaine and possessing a firearm in furtherance of drug trafficking. He was sentenced to 120 months in prison, with 5 years of court-ordered supervision to follow.
Quinton Deshawn Howell, 35, of Columbia, was Green’s source of supply for heroin during one controlled buy, negotiating the prices and terms of a future sale. He pleaded guilty to conspiracy to possess with intent to distribute and to distribute heroin and fentanyl and was sentenced to 30 months in prison, with 6 years of supervised release to follow.
United States District Judge Mary Geiger Lewis imposed the sentences. There is no parole in the federal system.
This case was made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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 Columbia Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Katherine Flynn prosecuted the case.
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Former Pittsburgh Resident Sentenced to 80 Months’ Imprisonment for Conviction of Attempted Bank Robbery and Bank RobberyRead the Press Release
PITTSBURGH, PA - A former resident of Pittsburgh, PA, has been sentenced in federal court to 80 months’ imprisonment on his conviction of attempted bank robbery and bank robbery, United States Attorney Eric G. Olshan announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Calvin Leavy, 69.
According to information presented to the court, on January 31, 2022, Leavy attempted to rob the First National Bank, located at 3721 Forbes Avenue, Pittsburgh, PA 15213.
Approximately 12 minutes later, Leavy entered the PNC Bank located at 4600 Fifth Ave, Pittsburgh, PA 15213, wearing the exact same clothing and matching the description of the individual that had attempted to rob the First National Bank. Leavy informed the bank employee, “I have a gun. Give me the money.” Leavy took approximately $1,338 from the PNC. Then, on February 8, 2022, Leavy entered the First National Bank, located at 307 4th Avenue, Pittsburgh, PA 15222, approached the bank employee and stated he had a gun and demanded money. Leavy took approximately $1,238 from the First National Bank. With the assistance of surveillance footage, investigators determined that Leavy used the Port Authority bus to travel to and from each of the bank robberies and used his bus card to pay for the fare. After tracking Leavy’s movements, investigators located Leavy, wearing the same clothing that he wore for the robbery, and arrested him.Assistant United States Attorney Rebecca L. Silinski prosecuted this case on behalf of the government.
United States Attorney Olshan commended the Federal Bureau of Investigation and City of Pittsburgh Police Department for the investigation leading to the successful prosecution of Leavy.
Former Owner of Argillite Family Care Home Sentenced to 18 Months for Wire FraudRead the Press Release
ASHLAND, Ky. – Donna Sue Glass, 53, of Greenup, Kentucky, was sentenced to 18 months in federal prison on Monday by U.S. District Court Judge David L. Bunning. Glass pleaded guilty to two counts of wire fraud, stemming from her conduct as the owner of the Glass Family Care Home, a now closed family care home located in Argillite, Kentucky.
According to court records, Glass became the guardian over two of her residents and an authorized signor on another’s bank accounts, and, as to all three, misappropriated their money while acting as a guardian or caregiver. According to her plea agreement, from September 2015 to April 2018, Glass used one resident’s bank account to purchase items for her personal benefit, including expenses for personal vacations, her daughter’s beauty pageant competitions, monthly tanning salon memberships, veterinary care for her pets, and other miscellaneous items, using a debit card she had no authority to obtain or use.
In her plea agreement, Glass also agreed that she increased the rent of another resident over whom she had Guardianship, identified in the plea agreement as P.M.J., to an amount well in excess of what P.M.J. could afford. Glass, as P.M.J.’s Guardian, accepted the rate increase to generate a debt P.M.J. would owe to her, and then took funds directly from P.M.J.’s savings account to satisfy this debt. When P.M.J. moved to a higher-level nursing facility, Glass admitted she continued to accept and spend P.M.J.’s retirement benefits and failed to pay her new nursing facility, under the pretense that P.M.J. owed her money.
During the sentencing hearing, the Court announced that Glass misappropriated just under $95,000, and ordered restitution in the amount of approximately $87,700, to be paid to the estates of the three victims. As a condition of her sentencing, Glass is required to pay the net proceeds for the sale of the Glass Family Care Home property to the United States to pay off some or all of this restitution amount.
Glass pleaded guilty on March 31.
Under federal law, Glass must serve 85 percent of her prison sentence, and upon her release from prison will be under the supervision of the U.S. Probation Office for 3 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the sentence.
The investigation was conducted by the FBI, with assistance from Adult Protective Services, a division of the Kentucky Cabinet for Health and Family Services, Department for Community Based Services. The United States was represented by Assistant U.S. Attorney Kathryn Dieruf.
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Former City of Miami Aide Sentenced to Six Years in Prison for Child Pornography CrimeRead the Press Release
MIAMI – Today, Rene Pedrosa, 51, was sentenced in federal court to six years in prison, followed by 15 years of supervised release, for receiving child pornography in 2019 from a 16-year-old boy.
In November 2019, Pedrosa connected with the boy on social media. Pedrosa, who at the time worked as an aide to the City of Miami mayor, communicated with the boy on social media and in person about a website design job for Pedrosa’s boss.
One meeting took place at Miami City Hall on November 25, 2019. Pedrosa admitted that during the meeting, he kissed and sexually touched the boy, who had been dropped off at City Hall for a website design follow-up meeting by his mother. Pedrosa also admitted that he continued communicating with the boy through an internet-based messaging application and that on December 22, 2019, Pedrosa knowingly received sexually explicit images of the boy.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, announced the sentence imposed by U.S. District Court Judge Robert N. Scola.
FBI Miami investigated the case, with assistance from Miami Police Department. Assistant U.S. Attorney Jessica Kahn Obenauf prosecuted it.
This case was brought as part of Project Safe Childhood (PSC), 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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 21-cr-20259.
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Former Chattanooga-Area Woman Pleads Guilty to Obstruction of JusticeRead the Press Release
CHATTANOOGA, Tenn. – On August 14, 2023, Florencia Renderos Morales, 24, currently of Houston, Texas, entered a guilty plea to one count of obstruction of justice, in violation of 18 U.S.C. § 1512(b), in the United States District Court for the Eastern District of Tennessee at Chattanooga. Sentencing has been set for January 12, 2024, at 10:00 a.m. before the Honorable Charles E. Atchley, Jr., in United States District Court at Chattanooga.
Morales faces a term of up to 20 years in Federal prison, $500,000 in fines, and supervised release of three years.
As part of the written plea agreement, Morales waived an indictment by a Federal Grand Jury and agreed to plead guilty to the aforementioned charges as set forth in a felony Bill of Information. According to court documents, Morales was an employee of La Casa de Sydney, a housing facility for undocumented and unaccompanied minor children located in the Eastern District of Tennessee. While at the facility, she engaged in inappropriate sexual conduct directed toward minor residents who were in their late teens.
The Department of Homeland Security and the Chattanooga Police Department initiated an investigation into Morales’s conduct and the conduct of others at La Casa de Sydney. Court documents indicate that the defendant became aware that she was the object of this investigation, and she contacted other involved individuals about ways to evade detection. Morales discussed who she believed reported her conduct to authorities, and she urged one former minor resident of La Casa de Sydney to delete electronic evidence that was relevant to the investigation.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
This prosecution is the result of a joint investigation conducted by Homeland Security Investigations and the Chattanooga Police Department Special Victims Unit, with assistance from the United States Department of Health and Human Services Office of the Inspector General.
Assistant United States Attorneys Kyle Wilson and Jay Woods represent the United States in this action.
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Federal Grand Jury Indicts New Orleans Man for Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that TEDDY NATHAN, age 24, a resident of New Orleans, Louisiana, was charged with violating the Federal Gun Control Act.
NATHAN is charged with one count of possession of ammunition by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1). If convicted, NATHAN faces a maximum term of imprisonment of 15 years, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory special assessment fee of $100.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation, the New Orleans Police Department, and the Louisiana State Police. It is being prosecuted by Assistant United States Attorney David Haller of the Violent Crime Unit.
Federal Grand Jury Indicts New Orleans Man for Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that AARON HENDERSON, age 28, a resident of New Orleans, Louisiana, was charged with violating the Federal Gun Control Act.
HENDERSON is charged with one count of possession of two firearms by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1). If convicted, HENDERSON faces a maximum term of imprisonment of 15 years, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney David Haller of the Violent Crime Unit.
Davidson County Man Sentenced to 30 Years for Production and Possession of Child PornographyRead the Press Release
WINSTON-SALEM – A Lexington man was sentenced today to 360 months in prison after pleading guilty to two felony counts of possession and production of child pornography announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
According to court records, officers encountered ZACHERY GRAY GUNTER, age 43, of Lexington, in May 2020. At the time, GUNTER had outstanding warrants. As part of an unrelated criminal investigation, officers discovered an image of child pornography. Upon further investigation, officers determined Gunter created child sex abuse materials of multiple minors.
GUNTER was sentenced today to a 360-month term of imprisonment by the Honorable Thomas D. Schroeder, United States District Judge in the United States District Court for the MDNC. In addition to prison time, GUNTER was ordered to pay special assessments totaling $2,200.00. He pleaded guilty to one count of possession of child pornography under the age of 12 and one count of production of child pornography on April 5, 2023.
The case was investigated by the Department of Homeland Security and the Davidson County Sheriff’s Office and was prosecuted by Assistant United States Attorneys Lindsey Freeman and JoAnna McFadden.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. 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 www.projectsafechildhood.gov.
DOJ and California non-profit settle allegations of false claims for reimbursementRead the Press Release
Seattle – The U.S. Department of Justice and Sun Valley CARE Development, Inc. (CARE) today resolved allegations that CARE violated the False Claims Act by submitting false information to the Economic Development Administration (EDA) in connection with an EDA grant. CARE will pay the government $364,126 to resolve the matter, announced Acting U.S. Attorney Tessa M. Gorman of the Western District of Washington.
CARE is a California 501(c)(3) non-profit charitable organization located in Sun Valley, California. In 2008 EDA awarded a grant to CARE in the amount of $2,800,000 for the design and construction of a medical and nurse training facility in Sun Valley. The grant was administered by EDA’s Seattle Office.
The settlement today resolves allegations arising from CARE’s final request for reimbursement submitted to EDA in connection with the grant. In January 2018 CARE submitted to EDA a request for reimbursement that purported to set forth the costs CARE incurred constructing the medical and nurse training facility. The United States contends that the request for reimbursement and supporting documentation contained false information about CARE’s construction costs. Of the settlement amount, $182,063 is restitution. The additional settlement dollars are part of the enhanced penalties under the False Claims Act.
“The Department of Commerce OIG is dedicated to working with Department of Justice to curb fraud, waste, and abuse. It is of particular importance when a project receiving EDA funding to design and construct a nurse training facility benefitting the local community is negatively impacted. We greatly appreciate the cooperation and effort of the United States Attorney’s Office in ensuring justice is served in this matter,” said Jeffrey Lysaght, Special Agent in Charge, U.S Department of Commerce, Office of Inspector General.
The investigation began with a whistleblower complaint regarding work performed under the grant.
This matter was investigated by the U.S. Department of Commerce Office of Inspector General. Assistant United States Attorney Ashley Burns handled the case for the U.S. Attorney’s Office.
DOJ alerts independent K-12 schools about obligations under the Americans with Disabilities Act (ADA)Read the Press Release
Seattle – The U.S. Attorney’s Office, Western District of Washington, is reminding independent schools of their obligations under the Americans with Disabilities Act (ADA) with respect to the accommodation of students with type 1 diabetes. There are approximately 215,000 Americans under the age of 20 currently diagnosed with type 1 diabetes. A letter sent to independent schools in Seattle serving elementary and middle-school aged students, arriving this week, not only reminds educators of their obligations under the ADA, but also provides resources to assist schools in setting up policies and procedures for monitoring a child’s blood sugar in compliance with the ADA.
“Our office continues to receive complaints from parents that their school-age children with type 1 diabetes are not afforded full and equal access to services provided by independent schools,” said Acting U.S. Attorney Tessa M. Gorman. “I hope the letter, which is a reminder for schools, as well as the online resources referenced in the letter, will motivate educators and administrators to make the modifications necessary for a truly inclusive environment for all our children.”
The letter for the schools makes note of this settlement with a school in Louisiana. See Settlement Agreement Between the United States of America and Alexandria Country Day School, available at https://archive.ada.gov/alexandria_settle.htm.
The letter makes clear that staff at the school may need to be trained to support children with type 1 diabetes. Where a parent or guardian and a child’s physician or other qualified health care professional deem it appropriate (based on the child’s current health status) for a child to be assisted in diabetes care by a layperson, training child care staff members to assist with routine diabetes care tasks, including the administration of insulin by pen, syringe, or pump, is generally a reasonable modification under the ADA unless an independent school can demonstrate that the individual circumstances cause a fundamental alteration to its goods, services, facilities, privileges, advantages, or accommodations.
The letter also offers online resources such as:
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- Washington Superintendent of Public Instruction and Department of Health, “Guidelines for Care of Students with Disabilities,” available online at https://www.k12.wa.us/sites/default/files/public/healthservices/pubdocs/diabetes/diabetesmanual-ada.pdf;
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- National Diabetes Education Program, “Helping the Student with Diabetes Succeed: A Guide for School Personnel,” available online at https://diabetes.org/sites/default/files/2020-02/NDEP-School-Guide-Full-508.pdf;
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- American Diabetes Association, “Sample Diabetes Management Plan,” available online at https://diabetes.org/sites/default/files/2022-11/DMMP-updated-11-11-22.pdf.
In addition to schools, DOJ has entered into settlements with childcare centers and summer camps that failed to accommodate children with type 1 diabetes.
As the new school year begins, independent schools should examine their procedures to ensure a child’s diabetes care is integrated into the daily routine, with the proper support from school staff.
The full letter from the U.S. Attorney’s Office Civil Rights unit is below.
independent_schools_seattle_-_t1d_dcl_for_website.pdf-
Citrus County Convicted Felon Pleads Guilty to Possessing Multiple FirearmsRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that Timothy James Roberts (28, Hernando) has pleaded guilty to possessing an unregistered National Firearms Act (NFA) weapon—a short-barreled shotgun—and two counts of possessing a firearm as a convicted felon. Roberts faces a maximum penalty of 10 years in federal prison on the possession of an unregistered NFA weapon count, and up to 15 years for each count of possessing a firearm as a convicted felon. A sentencing date has not yet been set.
According to court documents, Roberts twice was in possession of firearms in Citrus County. On August 7, 2022, law enforcement stopped Roberts in a stolen vehicle and found him in possession of a short-barreled shotgun not registered to him in the National Firearms Registration and Transfer Record. Subsequently, on August 31, 2022, Roberts was again stopped by law enforcement for multiple traffic infractions. A search of his backpack revealed a pistol and a revolver.
Roberts has four prior felony convictions for grand theft in state court. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Citrus County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
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.
Chester Man Pleads Guilty to $1.9 Million Embezzlement SchemeRead the Press Release
RICHMOND, Va. – A Chester man pleaded guilty today to mail fraud for embezzling over $1.9 million from his employer.
According to court documents, between 2015 and 2023, Bahram Khosropanah, 65, devised and repeatedly executed a scheme to misappropriate technology assets from his employer for his own personal gain. Khosropanah held senior positions at a Richmond-based company that operates convenience stores across the country. His role focused on information technology, and he was responsible for purchasing computers and other electronics for the company. Upon receiving invoices for certain purchases, Khosropanah made unauthorized material modifications to the invoices before submitting them to his accounting department for approval.
Through these modifications, Khosropanah was able to misappropriate computers and electronics and conceal his misappropriations. He then sold the misappropriated assets on eBay and to a third-party wholesaler without the knowledge or consent of his employer. The defendant sold approximately 850 laptops and other electronics, causing a loss of over $1.9 million to his employer. Khosropanah used the proceeds from the fraudulent sales to purchase luxury cars, including a Ferrari.
Khosropanah is scheduled to be sentenced on November 2. He faces a maximum penalty of 20 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, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after U.S. Magistrate Judge Summer L. Speight accepted the plea.
Assistant U.S. Attorneys Robert Day and Kashan K. Pathan are 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. 3:23-cr-95.