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13 July 2023
Leominster Man Pleads Guilty to Drug OffenseRead the Press Release
BOSTON – A Leominster man pleaded guilty yesterday in federal court in Worcester to possessing large quantities of counterfeit Adderall pills containing methamphetamine intended for distribution.
Chanhda Onesyvieng, 48, pleaded guilty to possession with intent to distribute methamphetamine. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for Oct. 4, 2023. Onesyvieng was charged on May 1, 2023.
In early April 2023, federal law enforcement received information that Onesyvieng was distributing significant quantities of counterfeit Adderall pills containing methamphetamine in Rhode Island. On April 28, 2023, during a traffic stop of Onesyvieng in Worcester, approximately two kilograms of counterfeit Adderall pills containing methamphetamine and approximately 135 grams of cocaine were seized. During a subsequent search of the defendants’ residence in Leominster, approximately one kilogram of counterfeit Adderall pills containing methamphetamine, approximately one kilogram of cocaine, and approximately $60,000 in cash were seized.
The charge of possession with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and John. E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement today. Assistant U.S. Attorney Danial E. Bennett of the Worcester Branch Office is prosecuting the case.
Leader of Marijuana Grow in Shasta-Trinity National Forest Sentenced to over 11 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Fidel Sanchez-Cruz, 42, of Mexico, was sentenced today to 11 years and three months in prison and ordered to pay $19,354 in restitution to the United States, for conspiracy to grow marijuana in the National Forest and depredation of public lands and resources, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Sanchez-Cruz was the leader and organizer of a marijuana grow operation in the Shasta-Trinity National Forest near Highway 36 in Trinity County. In August 2018, law enforcement officers executed a search of the grow site and eradicated 6,575 marijuana plants, a marijuana processing area, and harvested marijuana. Sanchez-Cruz oversaw the operation from a distance, while co-defendants Abraham De Los Santos-Sanchez and Agustin Cruz-Sanchez lived at the grow site from April to August 2018. Sanchez-Cruz made brief visits to the grow site at strategic times, including during planting season and at harvest time to inspect the marijuana crop, drop off supplies, and provide instructions to the workers during the grow season.
A .40 caliber Smith & Wesson handgun with an obliterated serial number, pellet rifles, a loaded Smith & Wesson magazine, and a .40 caliber Smith & Wesson ammunition cartridge were found at the site.
The environmental damage to the forest was analyzed and documented by Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems that has examined over 100 public land marijuana grow sites. According to the environmental assessment report, environmental scientists found and documented extensive environmental damage, including the use and disposal of bottles of pesticides, fertilizers, and other chemicals. The hazardous wastes found at the grow site included carbofuran, a toxic pesticide that is banned in the United States. The environmental assessment concluded that the carbofuran and other pesticides and fertilizer at the grow site likely posed a significant direct risk to a number of endangered and threatened species, including the northern spotted owl, the foothill-yellow-legged frog, and coho salmon. Makeshift reservoirs and a large network of plastic irrigation lines were also found and eradicated. The environmental assessment concluded that more than 14.25 million gallons of water were illegally diverted at the grow site.
Law enforcement also searched Sanchez-Cruz’s residence in Corning, on Aug. 17, 2018, and found two baggies with about 24 grams of cocaine, five bags of processed marijuana weighing a total of about 3.96 pounds, a digital scale, packaging materials, three bags of marijuana seeds, cultivation tools, and a Winchester 20-gauge shotgun.
This case was the product of an investigation by the U.S. Forest Service with assistance from the U.S. Bureau of Land Management, the California Department of Fish and Wildlife, the California Highway Patrol, the California Department of Justice – North State Marijuana Investigation Team, the Trinity County Sheriff’s Office, the Tehama County Sheriff’s Office, the Corning Police Department, and the Red Bluff Police Department. Assistant U.S. Attorney David W. Spencer prosecuted the case.
Santos-Sanchez pleaded guilty to conspiracy to manufacture marijuana and on June 18, 2020, was sentenced to 10 years in prison. Cruz-Sanchez pleaded guilty to conspiracy to manufacture marijuana and depredation of public lands and resources and on March 9, 2023, was sentenced to 10 years in prison.
Laguna Beach Man Pleads Guilty to Unsafely Operating Drone Near Several Aircraft, Including a Coast Guard Helicopter in Mid-FlightRead the Press Release
SANTA ANA, California – An Orange County man pleaded guilty today to federal criminal charges for unsafely operating a drone aircraft on several occasions, including once flying it near a United States Coast Guard helicopter in mid-flight off the coast of Laguna Beach.
Alexander Milinovic, 62, of Laguna Beach, pleaded guilty to three misdemeanor counts of unsafe operation of an unmanned aircraft.
According to his plea agreement, Milinovic unsafely operated a drone on three occasions from June 2022 to March 2023.
On June 19, 2022, Milinovic launched his drone at a father and son who were flying an open-cockpit gyrocopter on Father’s Day. Milinovic flew the unmanned aircraft to within 10 to 20 feet of the gyrocopter, which was off the coast of Crescent Bay Beach in Laguna Beach, which caused the son, who was operating the gyrocopter, to make an emergency course correction to avoid striking the drone and crashing into the Pacific Ocean.
On July 26, 2022, Milinovic launched a drone at and flew it next to a Discovery Channel “Shark Week” blimp flying at an altitude between 500 and 1,000 feet over the Pacific Ocean in the Laguna Beach area. The blimp’s pilot estimated the drone to be in line with hitting the blimp and causing him to navigate a life-threatening emergency crash landing.
On March 19, 2023, four members of a Coast Guard flight crew were flying a rescue helicopter about 200 to 300 feet above sea level in Laguna Beach. Milinovic launched a drone and flew it directly at the Coast Guard helicopter, coming to within 200 feet of it. The crew maneuvered the helicopter away from the drone, fearing it would hit their tail rotor and cause the helicopter to crash into the Pacific Ocean.
Law enforcement was notified in November 2022 of videos posted on the TikTok social media application that showed Milinovic’s drone flying dangerously close to aircraft.
United States District Judge Fred W. Slaughter scheduled a November 28 sentencing hearing, at which time Milinovic will face a statutory maximum sentence of one year in federal prison for each count.
The FBI and the Orange County Sheriff’s Department investigated this matter as part of the Joint Terrorism Task Force with assistance from the Federal Aviation Administration and the United States Coast Guard.
Assistant United States Attorney Jennifer L. Waier of the Santa Ana Branch Office is prosecuting this case.
Long-Time Sureno Gang Member Is Sentenced to More Than 20 Years in Federal Prison for Shooting an Undercover Law Enforcement OfficerRead the Press Release
https://youtu.be/W71sanlvZZQ
Spokane, WA – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Randy Coy James Holmes, age 25, of Spokane, Washington, was sentenced today to more than 20 years in federal prison for Assault with a Deadly Weapon on a Federal Law Enforcement Officer in violation of 18 U.S.C. § 111(a)(1), (b) as well as Discharge of a Firearm During a Crime of Violence in violation of 18 U.S.C. § 924(c). The charges stem from Holmes’s attempted robbery of an undercover law enforcement officer in November 2021. United States District Court Judge Thomas O. Rice pronounced sentence.
According to court documents and information disclosed at court proceedings, in early November 2021, a Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”) Confidential Informant reported that Holmes, who is a documented Sureno gang member and uses the alias “Whispers,” was looking to obtain a firearm to conduct future strong-arm robberies. The informant arranged for Holmes to contact an undercover ATF agent so Holmes could purchase a firearm from the agent. ATF intended to sell Holmes an inoperable firearm and then arrest him. The same day, a second ATF confidential informant advised ATF that Holmes contacted a second informant to obtain a firearm.
On November 5, 2021, Holmes agreed to meet the undercover ATF agent at the Motel 6 parking lot in Spokane to purchase the firearm. Holmes had offered to pay the undercover agent approximately one ounce of methamphetamine in exchange for the firearm, instead of U.S. Currency. Holmes arrived at the Motel 6 as planned, driving a Dodge Charger. Holmes’s co-defendants, Vincent Petrushkin and William Huntington Burns, who are also Sureno gang members, were inside the Dodge Charger with Holmes.
Before Holmes’s got out of the car, Burns provided Holmes with a firearm, which later was identified as a 9mm semi-automatic Glock handgun, as so called “protection” for the transaction with the undercover agent. Holmes then exited the Charger and got into the front passenger seat of the undercover ATF agent’s car. During the transaction, the undercover agent expressed concerns to Holmes about conducting the transaction at that location given that Holmes arrived with two additional individuals in his car. The undercover agent then asked to move the transaction to a nearby parking lot, away from the two men in the Dodge Charger.
Holmes then responded that he would “tell the homies” and started to get out of the undercover agent’s car. Holmes, however, stopped short of fully exiting the car. Instead, Holmes re-entered the car, pulled out the 9mm semi-automatic handgun, pointed the gun at the undercover agent’s head, and demanded the firearm the undercover agent was going to sell him. Among other things, Holmes screamed at the undercover agent, while pointing a gun at the agent’s head: “give it to me now… I’m gonna shoot you in the f’ing head ese … I ain’t f’ing playing with you.”
The undercover agent, who was in reasonable apprehension of immediate bodily harm, raised his hands above his head, and advised Holmes that the firearm was in the back of the car. Holmes then fully exited the undercover agent’s vehicle and ran around to the back of the car to obtain the firearm. This interaction between Holmes and the undercover ATF agent inside the car was captured on a video recording device from inside the undercover agent’s vehicle.
After Holmes got out of the car, the undercover agent exited the vehicle and directed Holmes to drop the gun. Rather than drop his firearm, Holmes repeatedly fired the 9mm semi-automatic Glock at the undercover agent, striking the agent multiple times, and causing the agent serious and permanent bodily injury. The undercover agent returned fire, striking Holmes. Audio from the shooting was captured by the video recorder inside the undercover agent’s car.
ATF surveillance agents quickly arrived at the scene and rendered life-saving aid to Holmes before he and the undercover agent were transported to the hospital. At the hospital, emergency room personnel located approximately 1 ounce of methamphetamine in Holmes’s jacket pocket.
At the time of this offense, Holmes was on federal supervised release stemming from a 2019 conviction for being a felon in possession of a firearm, in violation of 18 U.S.C. §§ 922(g)(1), 924(a)(2). Holmes also was on Washington State Department of Corrections community custody supervision from an unrelated state felony conviction.
Codefendants Petrushkin and Burns have both previously pled guilty to federal offenses related to this incident. Additionally, Kenneth Rankin Gazzaway was identified as having purchased the that Glock 9mm semi-automatic handgun firearm from a Federal Firearms Licensee in the Spokane area. The ATF learned Gazzaway was a methamphetamine user, which precluded him from purchasing a firearm. Nonetheless, Gazzawaylied on federal paperwork in order to purchase this and other firearms. During the case, Gazzaway admitted to traded some of the firearms he illegally purchased for drugs. One of those individuals to whom Gazzaway traded firearms was Adam Layton, who is another documented Sureno — i.e., the same criminal street gang as Holmes.
During today’s sentencing hearing, the undercover ATF agent, his wife, and his mother, provided powerful victim impact statements discussing the impact Holmes’s actions had on their family’s life. Excerpts of the undercover agents statements are included as an attachment.
During the sentencing process, Holmes attempted to shift blame for the offense, blaming a multitude of other individuals for his actions. However, Judge Rice was not persuaded, and sentenced Holmes to more than two decades in federal prison.
“This tragic case demonstrates the danger and violence that too frequently occurs when convicted felons possess firearms and engage in illegal drug trafficking,” stated U.S. Attorney Waldref. “I am grateful for the exceptional courage and bravery of law enforcement officers, who put their personal safety at risk to protect our community, and I commend the ATF agents involved for their exceptional professionalism in rendering life-saving aid to Mr. Holmes before he could be treated at a hospital. Our community is stronger as a result of these agents’ tremendous service. My heart goes out to the the undercover ATF agent and his family. They have made tremendous sacrifices to ensure the safety of the community. I commend him for his service and thank all of the brave men and women who led the investigation and prosecution in this case.”
“Thanks to the bravery, quick thinking, and professionalism of this agent and the nearby team, Mr. Holmes survived an incident of his own making and will have the next two decades in prison to consider the consequences of his repeated offenses,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle field office. “I commend the law enforcement officers in Washington state and across the country who protect their communities, knowing every day could take a dangerous turn in just a moment and might never be the same for themselves and their families.”
Assistant United States Attorney, Caitlin Baunsgard, who led the United States’ prosecution in this case, stated, “In this case, a multiple-time convicted felon — who was being supervised by two separate courts, and who was living in a halfway house after having been released from federal prison — was looking for a gun to commit home-invasion robberies.” AUSA Baunsgard continued, “In response to this clear threat to the community, the ATF fearlessly, and without hesitation, did their job. These agents stepped up to protect and serve the community. I am so proud to work with this amazing group of professionals.”
This case has been investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Spokane Police Department. This case is being prosecuted by Assistant United States Attorneys Caitlin Baunsgard and Patrick Cashman.
Case No.: 2:21-CR-164-TOR
us_v_holmes_victim_statement.pdfKouts Woman Sentenced for Tax OffensesRead the Press Release
HAMMOND- Kathy Lynch, age 64, of Kouts, Indiana, was sentenced by United States District Court Judge Philip P. Simon after being found guilty of nine counts of willful failure to pay employment taxes to the Internal Revenue Service (IRS), following a 3-day jury trial in March 2023, announced United States Attorney Clifford D. Johnson.
Lynch was sentenced to 15 months in prison followed by 1 year of supervised release.
According to documents in the case, for years Lynch failed to remit and pay federal payroll taxes for the Kouts, Indiana, nursing clinic she owned and operated. Over the course of 16 years, Lynch withheld payroll tax money from her employees’ paychecks, but instead of paying those taxes over to the IRS, as she was obligated to do, she kept more than $474,000 which she spent on personal and business expenses.
The case was investigated by the Internal Revenue Service-Criminal Investigation Division. This case was prosecuted by Assistant United States Attorneys Abizer Zanzi and Kevin Wolff.
Kissimmee Resident Pleads Guilty to Wire Fraud Scheme Targeting Rideshare ServiceRead the Press Release
Orlando, FL – United States Attorney Roger B. Handberg announces that Jesus Alejandro Millan Gomez (38, Kissimmee) has pleaded guilty to wire fraud and aggravated identity theft. He faces a maximum penalty of 20 years in federal prison for the wire fraud offense, and a mandatory consecutive term of 2 years for the aggravated identity theft offense. A sentencing date has not yet been set.
According to court documents, Millan Gomez used multiple fraudulent rideshare driver accounts that had been created through an online registration process using stolen identities. As a part of the scheme, Millan Gomez caused numerous rider accounts to also be established by others outside of Florida, including in Mexico and elsewhere. Using multiple cellphones at the same time and a “spoofing” location application to mask or manipulate his location to the rideshare service, Millan Gomez received instructions to pair trips together using cellphones that he controlled. Once a trip was underway, Millan Gomez used the location app to deceive the rideshare service into believing that he had driven significantly further than the original destination requested, which increased the fare. This fraud scheme exploited a then-existing weakness in the rideshare company’s payment system and defrauded the company of $232,994.87 in payments.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Ranganath Manthripragada.
Kilogram Distributor of Methamphetamine receives 121 Months in Federal PrisonRead the Press Release
WILMINGTON, N.C. – Edward Collins, 22, of Briscoe, North Carolina, was sentenced to 121 months in prison for drug trafficking. On April 12, 2023, Collins pled guilty to conspiracy to possess with the intent to distribute and distribute 500 grams or more of a mixture and substance containing methamphetamine and possession with the intent to distribute 500 grams or more of a mixture and substance containing methamphetamine.
According to court documents and other information presented in court, on May 14, 2022, Duplin County Narcotics detectives were aware that Collins was delivering a large amount of methamphetamine to a residence in Mt. Olive, North Carolina. When Collins arrived at the residence, detectives approached the car and Collins attempted to flee, but law enforcement was able to prevent Collins from leaving. Law enforcement found 848 grams of pure methamphetamine in the car. During the course of the investigation, investigators uncovered that Collins had been involved in the distribution of at least 10 kilograms of methamphetamine between April 2021 and the time of his arrest.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco and Firearms, the Drug Enforcement Administration, Department of Homeland Security and the Duplin and Sampson County Sheriff’s’ Offices investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:22-CR-00097-M-BM-2.
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KC Medical Spa Owner Sentenced for Illegal TreatmentsRead the Press Release
KANSAS CITY, Mo. – The former owner of a Kansas City, Mo., medical spa was sentenced in federal court today for providing illegal treatments to his patients, several of whom suffered adverse effects from the foreign products.
Richard B. Smith III, 47, of Shawnee, Kansas, was sentenced by U.S. District Judge Howard F. Sachs to two years in federal prison without parole. The court also ordered Smith to pay $18,296 in restitution to his victims.
On July 27, 2022, Smith pleaded guilty to one count of receiving misbranded drugs (foreign and unapproved Botox) and delivering them for pay with the intent to defraud or mislead, and one count of receiving adulterated devices (Juvederm Ultra 3) and delivering them for pay with the intent to defraud or mislead.
Smith owned and operated Tap and Blade, located at 7208 Wornall Road, Suite 206, in Kansas City, Mo. Tap and Blade offered medical services, such as injections of prescription drugs, including Botox, and prescription devices to enhance facial features, including Juvederm Ultra 3. Tap and Blade also offered cosmetic services, such as microblading, brow shading, and cool sculpting. Smith was the only employee of Tap and Blade and performed all the procedures offered at the clinic.
The U.S. Food and Drug Administration, Office of Criminal Investigations began investigating Tap and Blade in December 2020 based on information that multiple patients suffered injuries after receiving treatment at Tap and Blade. Agents executed a search warrant at Tap and Blade on April 7, 2021, and found boxes of Juvederm Ultra 3 as well as three syringes filled with Botox.
Smith admitted that he obtained Botox and Juvederm Ultra 3 over the internet and without a prescription from a website in China. Smith purchased the products from Alibaba.com because the foreign products were significantly cheaper, which allowed him to lower his cost compared to his competitors and led him to gain more customers. Smith knew the drugs and devices he was injecting into his patients were illegal.
Smith admitted he never told his patients he was using foreign prescription drugs and devices that had not been approved by the FDA. Smith estimated he treated approximately 50 to 60 customers. Smith treated at least 10 patients who suffered a bodily injury after being treated with Juvederm Ultra 3.
For example, according to court documents, one patient told investigators the treatment was very painful and bruised her lip immediately. She went to the emergency room due to severe pain and blistering on her upper lip and was treated by a plastic surgeon. Another patient told investigators she has a permanent scar as a result of Smith’s treatments.
Even after Smith became aware of patients suffering adverse reactions to his procedures, he continued to perform injections in the same manner using the same types of illegal products.
During the more than three years Tap and Blade operated, from Jan. 1, 2018, to April 30, 2021, there was never a medical doctor associated with the spa, nor was there a doctor overseeing procedures. Smith admitted that he knew his patients should have seen a doctor prior to receiving treatment, and that he told them there was a doctor on staff. Smith persistently misrepresented his qualifications to patients. He told patients he was a registered nurse or had a nursing degree, and that he was licensed to perform the procedures. These lies allowed him to gain the trust of his clients, which enabled him to commit these crimes that ultimately led to several individuals suffering an injury.
Smith did not attend any training courses on how to properly administer the products. Prior to opening Tap and Blade, Smith practiced injections on honeydew fruit, fake heads, and fake skins.
The FDA approval of Botox limits the drug to use under the supervision of a licensed practitioner, thus, it is a prescription drug. Smith admitted that the foreign and unapproved Botox he purchased for use at his spa was misbranded because it did not bear adequate directions for use.
Upon being injected beneath the skin’s surface, Juvederm adds volume and lift to smooth wrinkles and folds. Juvederm products are regulated as devices because, when injected, they are intended to reside under the skin and do not achieve their primary intended purpose through chemical action or metabolization. The FDA’s approval for Juvederm products limits them to use under the supervision of a licensed practitioner, thus, they are prescription devices. Juvederm Ultra 3 is not legal for distribution in the United States because it lacks FDA approval.
Smith was convicted in 2011 of one count of attempted possession of gamma-butyrolactone (GBL) with intent to manufacture gamma-hydroxybutyric acid (GHB) and three counts of possession of GBL with intent to manufacture GHB. He was sentenced to five years in federal prison without parole. During the investigation of that case, it was determined that Smith, acting as a representative of Schindler Elevator, purchased four 30-gallon drums of GBL from Barton Solvents, Inc. in Kansas City, Kan., between Oct. 5, 2006, and Dec. 3, 2007. Smith falsely claimed the GBL would be used for cleaning and degreasing purposes, when in reality, Smith obtained the GBL with the intent of converting it to GHB. On Oct. 8, 2007, a woman who lived with and dated Smith died from a drug overdose. GHB was one drug found in her system. The amount of GHB in her system was considered a lethal level of GHB and likely led to her death.
This case was prosecuted by Special Assistant U.S. Attorney Bradley Cooper. It was investigated by the Food and Drug Administration Office of Criminal Investigation.
Justice Department Reinforces Federal Protections for Servicemembers and their Spouses in Letter to State OfficialsRead the Press Release
The Justice Department announced today that it has issued a letter to all state licensing authorities about new employment-related federal protections for military families. The letter informs state licensing authorities about Congress’s recent amendment to the Servicemembers Civil Relief Act (SCRA) that allows servicemembers and their spouses to use their professional licenses or certificates in new jurisdictions if they are relocating because of military orders and meet certain other requirements.
“Servicemembers and their families should not face unnecessary barriers to employment because of the sacrifices they make in service to our country,” said Attorney General Merrick B. Garland. “The guidance we are issuing today reflects the Justice Department’s commitment to honoring our nation’s servicemembers and their families not just with words, but also with action.”
“Servicemembers bear great burdens to protect and advance our democracy, and families of these dedicated military professionals often make sacrifices on our behalf, including frequent moves, child-care challenges, and interruptions or barriers to employment,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The resources that we are making available should empower many servicemembers and military spouses with professional licenses to better navigate the burdens that can result from frequently moving around the country.”
In January 2023, Congress added a new provision to the SCRA — a law that provides servicemembers and their families with a wide variety of financial and housing protections — to make it easier for servicemembers and military spouses to have their professional licenses recognized when they relocate to another state due to military orders. The new SCRA license portability provision provides that servicemembers and military spouses can have their out-of-state licenses recognized as valid in the new state while they are stationed there as long as they meet certain requirements.
The letter to state licensing authorities explains how the SCRA’s license portability provision reduces the administrative hurdles that servicemembers and their spouses face when they move across state lines. The documents explain the requirements servicemembers or their spouses must meet to have their license or certificate recognized as valid under this new law. The Department is also releasing a fact sheet about the SCRA’s license portability provision.
Statement of Interest
The Justice Department also filed a statement of interest in Portée v. Morath, a lawsuit filed by a military spouse in the U.S. District Court for the Western District of Texas alleging the state of Texas denied her request to have her out-of-state school counseling licenses recognized as valid as required under the new SCRA’s license portability provision. According to the complaint, the military spouse has school counseling licenses issued by Ohio and Missouri and recently moved to Del Rio, Texas, due to her husband’s military orders. She alleges that the Texas state licensing authorities told her that the new SCRA law “would not apply to Texas.”
The Department’s statement of interest argues that the requirement that the license have been “actively used during the two years immediately preceding the relocation” to the new jurisdiction should be interpreted to require only that the license have been used at some point during the prior two years. It also discusses the significant public interest that is served by reducing barriers to licensure and increasing career opportunities for servicemembers and their spouses.
“This federal law is in place to help military spouses maintain their careers and financial security while enduring already stressful life changes,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Ultimately, the SCRA strengthens America’s military families and our overall national security, and that is not something any agency should interfere with.”
Servicemembers and their spouses who are covered by this new law are likely eligible for military legal assistance and can contact their local legal assistance office for help. Office locations can be found at legalassistance.law.af.mil. If servicemembers or their spouses are not eligible for military legal assistance services, they may request that the Justice Department review their claim by submitting a complaint through civilrights.justice.gov/link/4025A.
The Servicemember and Veterans Initiative, housed in the Department’s Civil Rights Division, works to ensure that the rights of the brave men and women of our nation’s armed forces, and the veterans who have served in the past, are safeguarded from discrimination and unfair treatment.
Since 2011, the Department has obtained over $481 million in monetary relief for over 146,000 servicemembers through its enforcement of the SCRA. You can learn more about the Servicemember and Veterans Initiative at servicemembers.gov.
The letter to state licensing authorities can be found here.
A fact sheet explaining the new SCRA provision can be found here.
The statement of interest can be found here.
Statement of Interest SCRA License Portability Fact Sheet SCRA License Portability LetterJustice Department Facilitates Meetings in Western District of Louisiana for Ways to Combat Unlawful Acts of HateRead the Press Release
SHREVEPORT/LAFAYETTE, La. - United States Attorney Brandon B. Brown announced that community meetings were held last week in both the Shreveport and Lafayette areas in hopes of finding ways to combat unlawful acts of hate targeted at the LGTBQIA+ community.
In September 2022, United States Attorney General Merrick Garland announced a nationwide initiative to combat these crimes of hate and stated that investigating and prosecuting hate crimes is a top priority for the Justice Department. The United Against Hate Community Outreach Program was established to bring awareness and emphasize the need to report hate incidents as well as crimes. Hate crimes target and harm not just individual victims, but entire communities and it is important that we use every tool available to prevent, deter, and respond to hate crimes and bias-motivated forms of extremism.
The program brings together community leaders with federal, state and local law enforcement to help the community be better informed and understand how to report hate crimes and build trust between law enforcement and communities. Through using hypothetical scenarios and video clips depicting real-life hate crime cases and stories, United Against Hate promotes interaction between community members and law enforcement participants. Program topics include: defining hate crimes versus hate incidents; the importance of reporting unlawful acts of hate; providing options for responding to hate incidents when situations do not constitute a federal or state crime; and distinguishing unlawful conduct from protected First Amendment activity, including identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.
The first event was held at the University of Louisiana at Lafayette on June 28, 2023, and the second event was held at the Louisiana State University at Shreveport on June 29, 2023. Panelists for the events in both Shreveport and Lafayette included representatives from the Federal Bureau of Investigation, Department of Justice Community Relations Service, Shreveport Police Department, People Acting for Change and Equality (PACE), Louisiana Trans Advocates, University of Louisiana at Lafayette, Acadiana Queer Collective, and Community Advocate. The Justice Department is committed to its United States Attorney’s Offices strengthening its relationships within their respective communities in terms of civil rights awareness and resources. The Western District of Louisiana has sponsored or participated in civil rights related meetings in Shreveport, Lafayette, Alexandria, Monroe, Lake Charles, Tallulah, Bossier City, and Grambling, related to use of force investigations, disparities in public school education, issues concerning English Learner students, and the like.
“The United Against Hate program is another tool in our toolkit that we will use to try and eradicate hate in our district," stated United States Attorney Brandon B. Brown. “It is my understanding that there are multiple unsolved transgender homicides and assaults in this district. There is a natural hesitation of persons that may have information concerning these crimes to engage with law enforcement, but we want to extend the olive branch. Every person in the Western District of Louisiana, and everywhere for that matter, deserves to live in a community where they do not have to be fearful of being harassed or attacked because of their color, gender identification, sexual preference, or religious beliefs. This is another civil rights related event that we have sponsored that has led to more open discussion and awareness concerning these issues that plague our communities today.”
“It is vital that the public understand how important reporting a potential hate crime is,” said Douglas A. Williams, Jr., Special Agent in Charge of FBI New Orleans. “Without the help of the community, these malicious crimes may go unpunished. The FBI is proud to be part of the U.S. Attorney’s effort to educate the public on how we can help develop strategies to address local hate crime problems. Anyone with civil rights concerns can contact us at 1-800-CALL-FBI, the FBI New Orleans Headquarters at (504) 816-3000 or submit a tip at https://tips.fbi.gov.”
“The Office of Campus Diversity was happy to partner with the Department of Justice, the U.S. Attorney General's Office for the Western District of Louisiana, and the Federal Bureau of Investigation's Community Relations Service on the United Against Hate Event,” stated Kiwana T. McClung, Chief Diversity Officer and Professor of Architecture and Design at University of Louisiana at Lafayette. “Our office is committed to educating our campus stakeholders about issues of concern affecting the LGBTQ+ community and this event was very timely, assisting us in fulfilling that mission. The information, resources, and perspectives provided during this event were very beneficial to the attendees and we would like to sincerely thank the panelists for their service. We look forward to partnering again in the future, so that we may continue our mission of inclusive excellence at the University of Louisiana at Lafayette and in the wider Lafayette community.”
“Never let anyone’s ignorance become your reality,” stated Roxie C. Black, LGBTQ+ Community Advocate and panelist at the United Against Hate community meeting held in Lafayette, Louisiana.
"With the continuous rise of anti-LGBTQ+ rhetoric spreading across our state and country, we can only expect an increase in related hate crimes,” said Peyton Rose Michelle, Executive Director of Louisiana Trans Advocates. “I'm grateful that the DOJ is invested in ensuring that our community knows their safety is a priority and ensuring they know the importance of reporting hate crimes. And as a leader, I'm grateful to know I have a trusted resource to support my community when they share with me that they've experienced the trauma of a hate crime."
Development of the United Against Hate program was led by the Civil Rights Division. EOUSA and other components in the Department’s Hate Crimes Enforcement and Prevention Initiative, including the Community Relations Service, the Community Oriented Policing Services Office, the FBI, and the Office of Justice Programs, provided critical assistance in developing the program. Click here for more information about ways to combat hate crimes and incidents.
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Justice Department Announces Investigation into Conditions in Fulton County, Georgia JailRead the Press Release
The Justice Department announced today that it has opened a civil investigation into the conditions in the Fulton County Jail in Georgia.
Based on an extensive review of publicly available information and information gathered from stakeholders, the Department has found significant justification to open this investigation, including credible allegations that an incarcerated person died covered in insects and filth, that the Fulton County Jail is structurally unsafe, that prevalent violence has resulted in serious injuries and homicides, and that officers are being prosecuted for using excessive force.
The investigation thus will examine living conditions, medical and mental health care, use of excessive force, and protection from violence. The investigation will also examine whether Fulton County and the Fulton County Sheriff’s Office discriminate against persons with psychiatric disabilities inside the jail.
“People in prisons and jails are entitled to basic protections of their civil rights,” said Attorney General Merrick B. Garland. “We launched this investigation into the Fulton County Jail based on serious allegations of unsafe, unsanitary living conditions at the jail, excessive force and violence within the jail, discrimination against incarcerated individuals with mental health issues, and failure to provide adequate medical care to incarcerated individuals. During this comprehensive review of the conditions of confinement at the Fulton County Jail, the Justice Department will determine whether systemic violations of federal laws exist, and if so, how to correct them.”
“The unconstitutional conditions that we see too often inside jails and prisons have no place in society today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are launching this investigation to determine whether Fulton County’s treatment of people in the jail complies with constitutional standards. We are committed to ensuring jail and prison facilities provide constitutional conditions, in which all people can live safely and receive medical care. Incarceration should never include exposure to unconstitutional living conditions, including the risk of serious harm from violence.”
“All Georgians deserve fairness from the institutions that serve us, including our local jails,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “The recent allegations of filthy housing teeming with insects, rampant violence resulting in death and injuries, and officers using excessive force are cause for grave concern and warrant a thorough investigation. This investigation is part of our ongoing efforts to ensure that citizens are safe, and their constitutional rights protected, even while they are in custody.”
Department officials have informed Fulton County officials and the Fulton County Sheriff of the investigation. They pledged to cooperate with the investigation.
The Department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Americans with Disabilities Act (ADA). Both statutes give the Department the authority to investigate systemic violations of the rights of people confined to correctional facilities. The Department’s work has led to important reforms to protect the rights of people in jails and prisons.
The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorney’s office in the Northern District of Georgia. Individuals with relevant information are encouraged to contact the Department via phone at (888) 473-4092 or by email at [email protected].
Additional information about the Civil Rights Division’s work regarding correctional facilities is available on its website at www.justice.gov/crt/rights-persons-confined-jails-and-prisons.
Jury Convicts Jacksonville Felon for Illegally Possessing A Loaded FirearmRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Dwayne Eric Thompson (39, Jacksonville) guilty of possessing a firearm as a convicted felon. Thompson faces a maximum penalty of 15 years’ imprisonment. A sentencing date has not yet been set.
According to evidence presented at trial, Thompson was arrested, pursuant to an outstanding warrant, by officers from the Jacksonville Sherriff’s Office and his car was searched. A loaded pistol was recovered from the center console. During the search, Thompson and the other passengers denied knowledge and ownership of the firearm. DNA evidence presented at the trial showed that Thompson’s DNA was present on the firearm and the loaded magazine. At the time, Thompson had multiple prior felony convictions and was on federal supervised release, having previously been convicted by a federal trial jury in 2010 of possession of a firearm by a convicted felon. As a convicted felon, Thompson is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney John Cannizzaro. Assistant United States Attorney Mai Tran is handling the forfeiture.
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.
Judge Sentences Florida Man to 18 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
WASHINGTON – Muhammed Momtaz Al-Azhari, 26, of Tampa, Florida, was sentenced to 18 years in federal prison, followed by a lifetime of supervised release, for attempting to provide material support to a designated foreign terrorist organization.
According to court documents, Al-Azhari pleaded guilty to the charge in February 2023. Al-Azhari is a United States citizen who spent most of his life abroad and came to embrace dogmatic, Islamist/Salafist beliefs. In 2018, Al-Azhari was released from prison in Saudi Arabia following a conviction and sentence for supporting terrorism in Syria, after which he was removed to the United States.
Upon Al-Azhari’s arrival to the United States in or around December 2018, the FBI began investigating him for potentially providing material support to ISIS, which, at all relevant times, was designated as a foreign terrorist organization under federal law. In or around April 2020, Al-Azhari began to plan to carry out an attack in support of ISIS. Around the same time, Al-Azhari began to acquire multiple firearms. Al-Azhari also researched and scouted potential locations for an attack in the Tampa Bay area. Since at least May 2019, Al-Azhari also consumed ISIS propaganda and spoke favorably about ISIS, to which he eventually pledged his allegiance through a bay’ah (an Islamic oath of allegiance). Furthermore, Al-Azhari spoke about avenging the United States’ imprisonment of Muslims, including ISIS fighters, and the United States’ military actions in the Middle East. In addition, Al-Azhari rehearsed parts of his plans, including practicing statements that he would make during or in connection with, his intention to support ISIS.
Al-Azhari had multiple, recorded interactions with an FBI undercover employee and a confidential human source (CHS) in April and May 2020. Al-Azhari was in the process of trying to buy guns from the undercover employee, including a fully automatic rifle, when he was arrested on state charges for carrying a concealed weapon without a permit. After his release from state custody, Al-Azhari continued to try to buy firearms from the UCE. Al-Azhari also met with the CHS, attempted to “convert” the CHS to Islam, and Al-Azhari confided in the CHS about Al-Azhari’s affiliation with ISIS and his plans to provide material support to ISIS, as well as to send money to ISIS. Al-Azhari also recruited the CHS to help him in connection with his plans in support of ISIS, as well as robberies, and he asked the CHS to obtain a Glock pistol and an unregistered silencer. Agents arrested Al-Azhari when he took possession of the gun and silencer on May 24, 2020.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Roger B. Handberg for the Middle District of Florida, and Assistant Director Robert R. Wells of the FBI Counterterrorism Division made the announcement.
The FBI’s Joint Terrorism Task Force, including Homeland Security Investigations (HSI), the Tampa Police Department, the Pinellas County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the St. Petersburg Police Department, the Clearwater Police Department, and the Florida Department of Law Enforcement investigated the case.
Assistant U.S. Attorneys Risha Asokan and Cherie Krigsman for the Middle District of Florida prosecuted the case, with assistance from Joshua Champagne and Paul Casey of the National Security Division’s Counterterrorism Section.
Jerry L. Jensen Appointed Acting U.S. Trustee for Arkansas, Nebraska, and MissouriRead the Press Release
Jerry L. Jensen has been appointed by Attorney General Merrick B. Garland as the Acting U.S. Trustee for Arkansas, Nebraska, and Missouri (Region 13) effective Aug. 1, the Executive Office for U.S. Trustees announced today. Jensen replaces Daniel J. Casamatta, who is retiring after 35 years of dedicated service to the department, including the last eight years as the Acting U.S. Trustee in Region 13. Under 28 U.S.C. § 585(a), the Attorney General may fill U.S. Trustee vacancies by appointing an Acting U.S. Trustee.
Jensen joined the U.S. Trustee Program (USTP) in 1989 as a trial attorney in the Omaha office and was appointed as the Assistant U.S. Trustee there in 2019. He has served important roles both regionally and nationally, including as the Region 13 Appellate Coordinator for many years and as a member of four internal peer review teams charged with assessing field office compliance with USTP standards, policies, and expected levels of performance. He also is active within the District of Nebraska, including representing the USTP on the district’s interagency Bankruptcy Fraud Working Group and the Nebraska Bankruptcy Court Practice Committee and serving as a frequent lecturer at local and regional professional programs. Jensen received his Juris Doctor from Creighton University School of Law and his Master of Laws in agricultural law from the University of Arkansas School of Law.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 90 field office locations. Region 13 has offices in Little Rock, Arkansas; Kansas City and St. Louis, Missouri; and Omaha, Nebraska.
Jamaican National Pleads Guilty to Mail and Wire Fraud Charges in Connection with Fraudulent Sweepstakes Scheme That Targeted Elderly VictimsRead the Press Release
SCRANTON - A Jamaican national, who was extradited to the United States, pleaded guilty in the U.S. District Court for the Middle District of Pennsylvania on charges relating to his participation in a phony sweepstakes scheme that targeted elderly victims in the United States.
According to court documents, Damone D. Oakley, 41, of the Point District, St. James Parish, Jamaica, pleaded guilty to two counts of mail fraud and two counts of wire fraud.
As part of his plea agreement, Oakley admitted that he sought to unlawfully enrich himself through a fraudulent sweepstakes scheme that targeted elderly and vulnerable victims. Oakley’s victims received mailings, text messages, or phone calls in which they were falsely told that they had won millions of dollars and luxury vehicles in a sweepstakes, but first needed to pay taxes and fees in order to claim their winnings. Oakley used a variety of names during the scheme, including “Officer Alex Logan” and “Officer Stan Valentine,” and instructed his victims on how to send their money. His victims used wire transfers, direct bank deposits, the U.S. Postal Service, and private commercial mail carriers to send money directly to Oakley, as well as to individuals in the United States and elsewhere who served as intermediaries and transmitted the money to Oakley. In addition to sending cash or wire transfers, Oakley’s victims were directed to purchase electronics, jewelry, and clothing, which were sent to mail forwarding services in Florida, and then on to Oakley in Jamaica. Victims never received any “winnings.” Oakley defrauded his victims out of hundreds of thousands of dollars during the course of the scheme.
“The Department of Justice’s Consumer Protection Branch remains committed to pursuing criminals who defraud elderly and vulnerable U.S. consumers and to prosecuting them to the full extent of the law,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Oakley was the first individual whose extradition was requested by the United States under Jamaica’s revised Extradition Act, and we are confident that we will continue our efforts to root out fraud that targets vulnerable consumers, wherever the fraudsters are located.”
“Oakley targeted the most vulnerable people in our society and defrauded them out of hundreds of thousands of dollars," said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “Today’s guilty plea reflects our office’s commitment to protecting elderly victims and punishing individuals who engage in this type of behavior.”
“The U.S. Postal Inspection Service is committed to investigating scammers, domestically and internationally, who use the U.S. mail to enrich themselves by targeting and financially exploiting vulnerable American consumers, including the elderly,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group. “Today’s plea exemplifies the Postal Inspection Service’s efforts to collaborate with foreign and domestic law enforcement partners to bring these criminals to justice.”
The U.S. Postal Inspection Service investigated the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and extradition of Oakley. The U.S. Marshals Service also provided significant assistance.
The case is being prosecuted by Senior Litigation Counsel Linda I. Marks of the Department of Justice’s Civil Division, Consumer Protection Branch, along with Assistant U.S. Attorney Christian Haugsby for the Middle District of Pennsylvania.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish, and other languages are available.
For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Middle District of Pennsylvania visit their website at www.justice.gov/usao-mdpa. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
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Great Falls meth trafficker sentenced to prisonRead the Press Release
GREAT FALLS — A Great Falls man who admitted to trafficking methamphetamine at a casino in the community was sentenced today to five years and eight months in prison, to be followed by four years of supervised release, U.S. Attorney Jesse Laslovich said.
James Joseph Sangrey, 39, pleaded guilty in March to possession with intent to distribute meth.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that in August 2022, the Russell Country Drug Task Force learned that Sangrey was dealing drugs at a casino in Great Falls. Law enforcement observed Sangrey meet for a few minutes in the parking lot with occupants of vehicles and believed that he was selling drugs. On Aug. 31, 2022, after a suspected drug deal, state probation officers arrested Sangrey as he tried to run out the back door of the casino. Officers served a state search warrant on Sangrey’s car and seized a backpack that contained baggies, a blow torch, a mirror with white residue and a scale. In the car, officers found two plastic baggies containing meth.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case. The Russell Country Drug Task Force, Great Falls Police Department, Homeland Security Investigations and Montana Probation and Parole conducted the investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Great Falls bookkeeper admits defrauding two businessesRead the Press Release
GREAT FALLS — A Great Falls woman who worked as a bookkeeper admitted today to defrauding two businesses in a scheme to pay personal bills, U.S. Attorney Jesse Laslovich said.
Tara Durnell, 63, pleaded guilty to wire fraud and to mail fraud. Durnell faces a maximum of 20 years imprisonment, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Dec. 6. Durnell was released pending further proceedings.
In court documents, the government alleged that between 1997 and 2019, Durnell worked as a bookkeeper for Kronebusch Electric, Inc., (KEI) a small company in Conrad. Durnell used her access to pre-signed company checks to make payments to cover personal expenses and then miscoded the payments in the accounting system to make them look like legitimate business expenses. As part of the scheme, Durnell used a pre-signed KEI check to make an unauthorized payment of $5,175 to the TNT Tavern for a personal debt. KEI eventually discovered the embezzlement when it sought to sell the company, and due diligence uncovered several hundred thousand dollars in miscoded transactions. Durnell left employment with KEI and found a job as a bookkeeper with Mitchell’s Crash Repair in Great Falls. In January 2022, Durnell used her access to the business’s pre-signed checks and mailed an unauthorized payment of $3,564 to the Pondera County Treasurer to cover a personal debt.
Assistant U.S. Attorney Jeffrey K. Starnes is prosecuting the case. The FBI, Montana Division of Criminal Investigation and Great Falls Police Department conducted the investigation.
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Four Indicted in Connection with Fatal Robbery of St. Louis Restaurant OwnerRead the Press Release
ST. LOUIS – Four people were indicted Wednesday in connection with the fatal robbery of a St. Louis, Missouri restaurant owner in May.
Ronnie Adam Foster, 23, of St. Louis, Mekayla Johann, 20, Larob Harris, 24, and Shonyea Jones, 24, were each indicted in U.S. District Court in St. Louis on four felonies: conspiracy to commit robbery, robbery, discharge of a firearm and discharge of a firearm resulting in death.
Jones is scheduled to appear in court Thursday. Foster is in jail facing unrelated pending charges. On July 3, Harris and Johann pleaded not guilty to charges filed in a June 30 criminal complaint.
The indictment says the robbery occurred on May 30 at the St. Louis Kitchen, 819 Kingshighway Boulevard. During the robbery, a gun was discharged, causing the death of “F.P.,” the indictment says.
The criminal complaint against Harris and Johann, an employee of the restaurant, says the restaurant owner was fatally shot and another employee was shot in the leg but survived. Both had just left the restaurant after locking up for the night. After the shooting, someone took a backpack containing cash proceeds from the restaurant, the complaint says.
The complaint says a June 30 search recovered a Glock 23 pistol used in the robbery and an Anderson Manufacturing AM-15 firearm “consistent with” the murder weapon.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The robbery conspiracy and robbery charges are punishable by up to 20 years in prison. The discharge of a firearm charge carries a penalty of up to 10 years in prison. The discharge of a firearm resulting in death charge carries a penalty of life in prison or the death sentence.
The case was investigated by the St. Louis Metropolitan Police Department and the FBI. Assistant U.S. Attorney Ashley Walker is prosecuting the case.
Former Social Security Administration Employee Sentenced to Federal PrisonRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announced Justin Skiff, age 36, of Castle Pines, was sentenced to six months in prison for wire fraud, social security fraud, and money laundering.
According to the plea agreement, beginning around August 2019 and continuing through September 2021, Skiff used his position as a claims specialist with the Social Security Administration (SSA) to fraudulently obtain money from the SSA. Skiff used his knowledge and access to establish Social Security Numbers for ten fictitious children. He then established fictitious records of entitlements for surviving child benefits which he connected to the record of a real deceased individual. These benefits were deposited into a bank account accessible to Skiff through debit cards he directed to be mailed to a P.O. Box to which he had access. Skiff withdrew money and made purchases from this account from October 2019 through September 2021 for a total amount of $324,201.44.
“Mr. Skiff blatantly violated the public’s trust, abusing his position within the SSA by stealing $324,201 in benefits,” said Christian Assad, Special Agent in Charge, Denver Field Division, of the Social Security Administration Office of the Inspector General. “We take every violation of the public trust very seriously, and we will continue to work with SSA to identify and root out suspected employee fraud. I want to thank Sonia J. Dave, Special Assistant United States Attorney for the District of Colorado, and our counterparts at the IRS for its support of this investigation.”
“Maintaining the public’s trust in government institutions is vital to our democracy,” said Andy Tsui, Special Agent in Charge, IRS Criminal Investigation Denver Field Office. “When government employees abuse their position of trust to enrich themselves, IRS-CI will partner with other agencies to ensure these criminals are held accountable for their actions.”
“Federal employees owe a special duty to the taxpayers we serve,” said United States Attorney Cole Finegan. “Instead of serving, this defendant stole money, and our trust. We commend our law enforcement partners for pursuing justice in this matter.”
Judge Daniel D. Domenico presided over the sentencing on July 13, 2023.
This case was investigated by the Social Security Administration Office of Inspector General and Internal Revenue Service Criminal Investigation (IRS-CI). This prosecution is being handled by Special Assistant U.S. Attorney Sonia J. Dave.
CASE NUMBER: 22-cr-00360
Former LeFlore County Undersheriff Sentenced for Using Excessive Force and Violating Civil RightsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Kendall Bryan Morgan, age 45, of Shady Point, Oklahoma, was sentenced today to 22 months imprisonment and 36 months of supervised release for violating the civil rights of a handcuffed detainee without legal justification.
The charge arose from an investigation by the Federal Bureau of Investigation.
On November 8, 2022, Morgan pleaded guilty to one count of Deprivation of Rights Under Color of Law. At the plea hearing, Morgan, the former Undersheriff in the LeFlore County Sheriff’s Department, admitted that on January 25, 2017, he repeatedly struck a person under arrest and in handcuffs, causing the victim bodily injury. At the time of the assault, the individual was not resisting arrest and posed no threat to officers or the public. Morgan’s excessive force furthered no legitimate law enforcement purpose and violated the victim’s constitutional right to be free from unreasonable force by law enforcement.
“The reputation of the entire law enforcement profession is tarnished when an officer betrays the oath to protect and serve,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “The sentencing of Mr. Morgan sends a clear message that the FBI will not tolerate anyone who dishonors the badge by using excessive force.”
“Law enforcement officers are bound by oath to serve and protect all citizens equally—this requires consistency, compassion, and respect for the dignity of all,” said U.S. Attorney Christopher J. Wilson. “The defendant violated that oath, and justice demands he pay the price for blatantly disregarding the law and the civil rights of others.”
The Honorable Ronald A. White, Chief Judge for the Eastern District of Oklahoma, presided over the hearing in Muskogee. Morgan will remain in the custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Jordan Howanitz represented the United States at the sentencing hearing.
Former Keene Woman Indicted for Embezzling over a Half Million DollarsRead the Press Release
CONCORD – A former Keene woman was indicted in connection with stealing more than $500,000 from her employer between 2015 and 2021, U.S. Attorney Jane E. Young announces.
Stephanie Pratt, 38, was indicted on six counts of wire fraud. Pratt will appear before Magistrate Judge Andrea K. Johnstone for an initial appearance in federal court today at 2:00pm.
According to the charging documents, Pratt was the office administrator for a company based in Hinsdale, New Hampshire. She had full access to the company’s finances, including its bank accounts and credit cards. Over the course of six-and-a-half years, Pratt stole more than $500,000 from the company. She cashed unauthorized checks to herself and entered them as payments to legitimate vendors in the company’s accounting system. Pratt also used the company’s credit cards to make unauthorized personal purchases, including for items like plane tickets, a smart TV, a hot tub, Patriots tickets, and miscellaneous herbs and spices.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation led the investigation. Assistant U.S. Attorney Alexander S. Chen is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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Former Birmingham Art Dealer Pleads Guilty to $1.5 Million Fraud SchemeRead the Press Release
DETROIT - A former Birmingham, Michigan art dealer pleaded guilty to defrauding more than 10 customers who had entrusted her with the sale of their art of over $1.5 million, United States Attorney Dawn N. Ison announced today.
Joining in the announcement was Devin J. Kowalski, Acting Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Scott Grewe, Chief of the Birmingham Police Department.
Wendy Halstead Beard, 58, pleaded guilty to one count of wire fraud before United States District Judge Judith E. Levy. The crime arose from a multi-year scheme in which Beard received fine art photography prints on consignment, sold the artwork without the knowledge of the owners, kept the profits for her own personal gain, and continually deceived the owners about the status of their photographs.
According to the plea agreement, beginning in approximately March 2019 and continuing through October 2022, Beard executed a scheme to defraud a number of her customers. The purpose of the scheme was for Beard to embezzle the proceeds from the sale of multiple fine art photographs that had been provided to her by her customers on a consignment basis.
Throughout the scheme, Beard attempted to lull her victims into a false sense of security by offering excuses for her unwillingness or inability to promptly return the victims’ photographs after the expiration of the operative consignment agreements. These excuses consisted of, among other things, exaggerating the severity of her own health problems, including claiming (1) to have recently been in a coma and (2) to have received a double-lung transplant. In other instances, Beard told her victims that there was a lack of interest among potential purchasers—despite having already sold the photographs in question. Beard also created fake “employee” identities which she used to correspond with her victims in a further effort to deceive them.
In the plea agreement, Beard acknowledged defrauding more than ten victims over the course of her scheme. She further admitted that at least one victim was vulnerable due to the victim’s advanced age. According to court records, the government asserts that the losses associated with the scheme are at least $1.5 million.
Sentencing is set for December 12, 2023 before Judge Levy.
“This defendant swindled numerous families out of valuable artwork and lied to them repeatedly in order to keep her fraud scheme afloat,” said U.S. Attorney Ison. “She did this for no reason other than to line her own pockets at the expense of her victims. There is no place for this kind of criminal deceit in our community, and today’s conviction holds this defendant accountable for her conduct.”
“With today’s plea, Ms. Beard has taken a first step towards accepting responsibility for her criminal behavior,” said Devin J. Kowalski, Acting Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI remains committed to investigating art fraud and to seeking justice for those affected by this type of scheme.”
The case is being prosecuted by Assistant United States Attorneys Ryan A. Particka and Adriana Dydell. The investigation is being conducted by the Federal Bureau of Investigation and the Birmingham Police Department
Florida Man Sentenced to More Than Three Years in Federal Prison for His Role in a Scheme to Scam Elderly Victims Out of More Than $1.5 MillionRead the Press Release
Baltimore, Maryland – U..S. District Judge Richard D. Bennett sentenced McArnold Charlemagne, age 35, of Miramar, Florida, yesterday to 41 months in federal prison, followed by one year of supervised release, for a federal mail fraud conspiracy charge, in connection with a scheme in which he defrauded more than 65 elderly victims of more than $1.5 million. Judge Bennett also ordered Charlemagne to pay restitution of $1,866,745.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
“Targeting senior citizens for abuse will bring the full weight of the U.S. Attorney’s Office,” said Unites States Attorney Erek L. Barron. “If you or someone you know is a victim of financial fraud, please help us bring justice by contacting the Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).”
“Elderly Americans deserve to live their golden years enjoying their hard-earned savings, not being victimized by fraudsters like Charlemagne,” said Special Agent in Charge Thomas J. Sobocinski of the FBI's Baltimore field office. “The FBI will do all it can to make seniors aware of these threats and hold those preying on our seniors accountable.”
According to Charlemagne’s plea agreement, from about January 2018 through at least December 2019, he was part of a conspiracy to defraud elderly victims by persuading them to send thousands of dollars in cash to members of the conspiracy by falsely stating that the money would be used to help the victims’ relatives pay legal or other expenses in connection with crimes and other incidents that had not occurred or that the money would be sent to particular individuals at their addresses, rather than to members of the conspiracy falsely claiming to reside at those addresses. Charlemagne’s co-conspirators telephoned elderly victims throughout the United States, posing as a police officer, lawyer, or other individual, falsely telling the victim that a relative, typically the victim’s grandchild, had been incarcerated in connection with a car accident or traffic stop involving a crime, and needed money—often tens of thousands of dollars—for bail, legal fees, and other expenses.
As detailed in the plea agreement, during the telephone calls, the co-conspirators directed victims to send cash to a particular address via an overnight delivery service. The co-conspirators even posed as the victims’ relatives to further induce them to send the cash. Once the victims did send money, the co-conspirators called the victims asking for more cash, regularly obtaining tens of thousands of dollars from the retirement savings of victims. To prevent the victims from sharing the information with anyone, the co-conspirators allegedly told the victims that a “gag order” had been placed on the case requiring secrecy, or that the situation was embarrassing for the grandchild and they didn’t want anyone else to know about it.
Charlemagne admitted that, in order to conceal the crime, he and other co-conspirators identified residential locations across the country where the cash should be sent, including in Maryland, Pennsylvania, Delaware, and Florida. Charlemagne and his co-conspirators identified locations that were either vacant or for sale, so that no one would be at those locations at the time of the deliveries, then retrieved the packages of cash when they were delivered. Charlemagne and other co-conspirators recruited and instructed additional people to assist in retrieving packages of cash from specified locations.
As a result of the execution of the scheme to defraud, Charlemagne and others caused at least 85 different victims to send a total of at least $2.5 million.
On June 15, 2023, co-conspirator Eghosasere Avboraye-Igbinedion a/k/a “Ego” and “Ghost,” age 28, of Miramar, Florida, was convicted after a six-day trial conspiracy to commit mail fraud and four counts of mail fraud, in connection with the scheme. Co-conspirator Medard Ulysse, age 38, most recently of Miami, Florida, was sentenced earlier this year to nine years in federal prison, for wire fraud and conspiracy to commit mail fraud in relation to multiple fraud schemes, including the elder fraud “grandparent” scam.
Reporting from consumers about fraud and fraud attempts is critical to law enforcement efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps, including identifying appropriate reporting agencies, providing information to callers to assist them in reporting or connecting them with agencies, and providing resources and referrals on a case-by-case basis. The hotline is staffed from 10:00 a.m. to 6:00 p.m. Monday through Friday. English, Spanish, and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Sean R. Delaney and Christine Goo, who are prosecuting the case.
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Fentanyl Traffickers in East Idaho Sentenced to Federal PrisonRead the Press Release
POCATELLO – U.S. Attorney for the District of Idaho Josh Hurwit announced the result of two separate fentanyl trafficking cases in Eastern Idaho today. An Arizona man was sentenced to nine years in federal prison for conspiracy to distribute fentanyl. Additionally, a Pocatello man was sentenced to three years in federal prison for assisting in the distribution of methamphetamine and fentanyl.
On July 11, 2023, Senior U.S. District Judge B. Lynn Winmill sentenced Marco Antonio Osuna, 28, of Tuscon, Arizona, to nine years in in federal prison with five years of supervised release to follow. According to court records, Osuna was initially arrested on August 7, 2022, after officers with the Pocatello Police Department contacted Osuna and found nearly 6,000 pills containing fentanyl in his possession, as well as two firearms. Osuna was also linked to a canister containing 3,000 fentanyl pills that was found on the popular Lower City Creek Trail recreation area. Osuna pleaded guilty to the charge on January 19, 2023.
In a separate case, Derek Ross, 41, of Pocatello, was initially arrested on March 20, 2022, after detectives with the Pocatello Police Department, along with other members of the BADGES Task Force, initiated a traffic stop on a vehicle in which Ross was a passenger. Levi McGraw, 32, of American Falls, was the driver. Task force officers executed a search warrant on the vehicle and located three pounds of methamphetamine, 4,000 fentanyl pills, and two firearms.
On July 11, 2023, Judge Winmill sentenced Ross to three years in federal prison with five years of supervised release to follow for his role in assisting in the offense. Ross pleaded guilty to the charge on April 10, 2023. On May 22, 2023, McGraw was sentenced by Judge Winmill to ten years in federal prison with five years of supervised release to follow. McGraw pleaded guilty to the charge on January 9, 2023.
U.S. Attorney Hurwit commended the cooperative efforts of the Pocatello Police Department and Idaho State Police, both of whom are members of the BADGES Task Force, which led to the charges.
The BADGES Task Force is a multi-jurisdictional narcotics task force that identifies, disrupts, and dismantles local, multi-state, and international drug trafficking organizations using intelligence-driven, multi-agency prosecutor-supported approach. BADGES Task Force is supported by the Oregon-Idaho High-Intensity Drug Trafficking Area (HIDTA) which is composed of members from the Idaho State Police, Pocatello Police Department, Bannock County Sheriff’s Department, Chubbuck Police Department, and the Drug Enforcement Administration.
These cases were handled by the U.S. Attorney Office’s specially deputized Special Assistant U.S. Attorney (SAUSA), funded by the Eastern Idaho Partnership (EIP) and the State of Idaho. The EIP is a coalition of local city and county officials in eastern Idaho as well as the Idaho Department of Correction.
The EIP SAUSA program allows law enforcement to utilize the federal criminal justice system – through the EIP SAUSA – to prosecute, convict, and sentence violent, armed criminals and drug traffickers. These criminals often receive stiffer penalties than they might in state courts.
This program was created in January 2016. Since that time, approximately 200 defendants have been indicted by the EIP SAUSA. Of these defendants, 146 have been indicted on drug trafficking charges. The defendants indicted under the program have been sentenced to 10,109 months (approximately 842.41 years) in federal prison, representing an average prison sentence of 56 months (4.66 years). Defendants indicted for drug trafficking offenses serve, on average, approximately 62 months (5.16 years) in federal prison.
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Federal Jury Convicts Huntington Man of Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – After two days of trial, a federal jury convicted Thomas Ray III, 54, of Huntington, of being a felon in possession of a firearm.
Evidence at trial showed that on October 23, 2020, Ray possessed a firearm that he discharged at law enforcement officers after they responded to a domestic disturbance call in the area of 17th Street and Artisan Avenue in Huntington.
The first officer to respond to the call encountered a woman who advised the officer that she and her daughter had been in an altercation with a man who had approached them on the sidewalk. The woman said the man pulled out a firearm, pointed it at her and threatened to use it on her. The woman said the man then fired two rounds in the air and fled south on 17th Street.
Officers observed and then encountered Ray, who matched the description provided by the woman, in an alley between 10th and 11th Avenues. Ray pointed a firearm at the officers and fired one shot. Ray continued to flee and fired several more shots at officers before they returned fire and he fell to the ground. Ray was still holding the firearm while on the ground and resisted being placed into custody. Officers recovered the firearm, a loaded Smith & Wesson Model M&P Shield .40-caliber pistol, after Ray threw it away from his body. Officers also found a Harrington and Richardson revolver in Ray’s back right pants pocket.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Ray knew he was prohibited from possessing a firearm because of his prior felony convictions for Forcible Detention/Armed and Give False Bomb/Gas Alarm in Will County, Illinois, Circuit Court on February 28, 2012, and for possession of a firearm by a convicted felon in United States District Court for the Southern District of West Virginia on December 9, 2013.
Ray is scheduled to be sentenced on October 23, 2023, and faces a maximum penalty of 10 years in prison.
“My office is working in partnership with local, state and federal law enforcement to reduce violent crime and hold dangerous offenders accountable,” said United States Attorney Will Thompson. “I commend the work of the Huntington Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor, and the entire trial team for securing this guilty verdict.”
United States District Judge Robert C. Chambers presided over the jury trial.
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.
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. 3:21-cr-57.
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Federal Grand Jury A Indictments Announced- July 2023Read the Press Release
TULSA, Okla. – United States Attorney Clint Johnson today announced the results of the June 2023 Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Jeffrey Wade Anderson Jr. First Degree Murder in Indian Country. Jeffrey Wade Anderson Jr., 34, is charged with murder after he turned himself in for allegedly stabbing the victim, on or about June 27, 2023, in the 4100 block of Riverside Dr. The Tulsa Police Department and FBI are the investigating agencies. Assistant U.S. Attorney Scott Dunn is prosecuting the case. 23-CR-224
Byron Cordell Thomas. Sex Trafficking by Force, Fraud, and Coercion; Transporting an Individual for Prostitution; Coercion and Enticement to Engage in Prostitution; Tampering by Corrupt Persuasion; and Felon in Possession of a Firearm. Byron Cordell Thomas, 36, is charged with four counts of transporting an individual for prostitution and three counts of sex trafficking by force, fraud, and coercion. He is further charged with two counts each of coercion and enticement to engage in prostitution, and tampering by corrupt persuasion, with an additional charge for being a felon in possession of a firearm. Thomas allegedly engaged in activities to recruit, entice, control and transport women for the purpose of prostitution for his financial benefit. Homeland Security Investigations is the investigating Agency. Assistant U.S. Attorney Kenneth Elmore is prosecuting the case. 23-CR-041
Cesar David Lopez; Juan Antonio Duran; Jose Nicolas Flores. Firearms Trafficking; False Statement to a Firearms Dealer; Straw Purchasing a Firearm; Smuggling Firearms from the United States; and Smuggling Goods from the United States. Cesar David Lopez, 27, Juan Antonio Duran, 27, and Jose Nicolas Flores, 30, are charged with firearms trafficking, making a false statement to a firearms dealer, straw purchasing a firearm, smuggling firearms from the United States and smuggling goods from the United States for allegedly purchasing and trafficking multiple .50 caliber rifles and rifle magazines for the Sinaloa Cartel. The Bureau of Alcohol, Tobacco, Firearms and Explosives is the investigating agency. Assistant U.S. Attorneys John Brasher and Kenneth Elmore are prosecuting the case. 23-CR-196
Jacob Alan Gonzales. First Degree Burglary in Indian Country. Jacob Alan Gonzales, 26, a Cherokee citizen, is charged with first degree burglary in Indian Country after allegedly breaking and entering through a window of an occupied dwelling. The Tulsa Police Department and the FBI are the investigating agencies. Assistant U.S. Attorney Thomas E. Buscemi is prosecuting the case. 23-CR-227
Torrance Lamont Williams. Felon in Possession of a Firearm and Ammunition; Possession of an Unregistered Rifle Having a Barrel of Less Than 16 Inches in Length. Torrance Lamont Williams, 29, is charged as a felon in possession of a firearm and ammunition, and possession of an unregistered rifle. A search warrant executed at the residence of Williams revealed a multi-caliber short-barrel rifle, ammunition and two loaded magazines. The Tulsa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigating agencies. Assistant U.S. Attorney Niko Boulieris is prosecuting the case. 23-CR-230
Efrain Dominguez-Romero. Unlawful Reentry of a Removed Alien; Alien Unlawfully in the United States in Possession of a Firearm; Fraud and Misuse of Visas, Permits, and Other Documents. Efrain Dominguez-Romero, 55, a Mexican national, is charged with unlawfully reentering the United States after having been removed on or about Dec. 18, 2008, at or near Del Rio, Texas. He is further charged as an alien unlawfully in the United States in possession of a firearm, and fraud and misuse of visas, permits and other documents. At the time of his arrest his was in possession of a firearm, and a fraudulent permanent residence card depicting a false identity. Delaware County Sheriff’s Office and the Immigration and Customs Enforcement’s Enforcement and Removal Operations are the investigative agencies. Assistant U.S. Attorney Cheryl L. Baber is prosecuting the case. 23-CR-226
Jerry Dee Keys Jr.; Cristi Lea Keys. Felon in Possession of a Firearm and Ammunition; Possession of Methamphetamine with Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Maintaining a Drug-Involved Premises; and Drug Conspiracy. Jerry Dee Keys Jr., a 60-year-old Cherokee citizen, and Cristi Lea Keys, 59, are both charged as a felon in possession of a firearm and ammunition. They are further charged with possession of meth with intent to distribute; possession of a firearm in furtherance of a drug trafficking crime; maintaining a drug-involved premises; and drug conspiracy. The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigating agencies. Assistant U.S. Attorney William Rubens is prosecuting the case. 23-CR-228
Lonnie Ray Stark. Felon in Possession of a Firearm and Ammunition; Possession of Methamphetamine with Intent to Distribute; Carrying and Using a Firearm During and in Relation to a Drug Trafficking Crime. Lonnie Ray Stark, 54, is charged with two counts as a felon in possession of a firearm and ammunition. He is further charged with possession of meth with intent to distribute; and carrying a firearm during and in relation to a drug trafficking crime. The Tulsa Police Department, Oklahoma Highway Patrol, and Bureau of Alcohol, Tobacco, Firearms and Explosives are the investigating agencies. Assistant U.S. Attorney Shakema Onias is prosecuting the case. 23-CR-237
Luis Ortiz-Rodriguez. Unlawful Reentry of a Removed Alien; Possession of a Firearm and Ammunition by an Alien Illegally in the United States. Luis Ortiz-Rodriguez, 35, a Mexican national, is charged with unlawfully reentering the United States after having been deported on or about Sept. 17, 2012. He was found in the United States after being arrested by Muscogee Creek Nation Lighthorse Police Department on unrelated charges. He is further charged with possession of a firearm and ammunition by an alien illegally in the United States. The U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations are the investigating agency. Assistant U.S. Attorney John Brasher is prosecuting the case. 23-CR-198
Joel Palacios-Castorena. Unlawful Reentry of a Removed Alien. Joel Palacios-Castorena, 39, a Mexican national, is charged with unlawfully reentering the United States. He was found in the United States after being arrested by Rogers County Sheriff’s Office on unrelated charges. He had been previously deported and removed on or about June 22, 2019, at or near Nogales, Arizona. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney John Brasher is prosecuting the case. 23-CR-229
Bernardo Alberto Diaz-Perez. Unlawful Reentry of a Removed Alien. Bernardo Alberto Diaz-Perez, 36, a Mexican national, is charged with unlawfully reentering the United States after being arrested by the Sand Springs Police Department on unrelated charges. He had been previously removed on or about March 17, 2010, at or near Nogales, Arizona. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Robert Raley is prosecuting the case. 23-CR-225
District Men Indicted on Murder and Other Charges in the June 2020 Murder of Aspiring Rap ArtistRead the Press Release
Defendants Accused of Daylight Shooting in the Congress Park Area
WASHINGTON – Johnny Wilkins, 34, of Temple Hills, Maryland, Marcel Gavin, 31, Kharee Jackson, 30, Earl Robinson, 31, and Darryl Little, 29, all of Washington D.C. are named in a 20 count indictment charging them with conspiracy, three counts of first degree murder while armed – felony murder, one count of premeditated first degree murder while armed, one count of assault with intent to kill while armed, three counts of robbery while armed, one count of assault with significant bodily injury while armed, one count of possession of a firearm with a prior conviction (Wilkins), and nine counts of possession of a firearm during a crime of violence. The defendants were arraigned on July 10, 2023, before D.C. Superior Court Judge Michael O’Keefe.
The indictment was announced by U.S. Attorney Matthew M. Graves and Interim Chief Ashan Benedict of the Metropolitan Police Department.
According to the indictment, on June 13, 2020, decedent Albert Smith, who was an up-and-coming rap artist from the Tennessee/Georgia area, travelled up to the District with seven friends to meet up with the defendants and other individuals from the Congress Park area in Southeast, Washington, DC. After settling into their hotel, the victim and his friends (the “Georgia Group”) took an Uber to Congress Park. Once there, the Georgia Group joined the defendants and other members of the Congress Park group, where they socialized and gambled tens of thousands of dollars through the night into the next morning. Around 7:15 a.m., the Georgia Group decided they were going to leave. The five defendants and seven other members of the Congress Park Group followed the Georgia Group onto 13th Place where they split up and attacked and robbed three members of the Georgia Group. Defendant Wilkins chased Smith and four other members of the Georgia Group down Congress Street while shooting at them. Smith was killed, another member of his group was also shot, and two more victims were pistol whipped and robbed by the four other defendants and other members of the Congress Park Group, robbing each of them of approximately $20,000.
The defendants are currently held without bond pending trial. A status hearing is scheduled for September 8, 2023, before Judge Michael O’Keefe.
In announcing the charges, U.S. Attorney Graves and Interim Chief Benedict commended the work of those investigating the case from the Metropolitan Police Department (MPD). They acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Metropolitan Homicide Detective Jeffrey Clay; Victim/Witness Advocate Jennifer Clark; Paralegal Specialists Kelly Blakeney and Lauren Douglas. Finally, they commended the work of Assistant U.S. Attorneys Marybeth Manfreda and Miles Janssen, who are investigating and prosecuting the case.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
District Man Indicted for Assaulting Senior Citizen with Intent to Kill Him While Armed and Other ChargesRead the Press Release
WASHINGTON – Herbert Young, 40, of Washington, D.C., was indicted for assaulting a senior citizen with the intent to kill him while armed with a knife and related charges stemming from a stabbing that occurred on February 4, 2023. The charges were announced by U.S. Attorney Matthew M. Graves and Chief Ashan M. Benedict, of the Metropolitan Police Department.
Young was indicted by a grand jury in the Superior Court of the District of Columbia on charges of assault with intent to kill of a senior citizen while armed, aggravated assault of a senior citizen while armed, assault of a senior citizen with a dangerous weapon, and carrying a dangerous weapon.
According to the government’s evidence, Young’s 74-year-old victim lived in the apartment above him. On February 4, 2023, Young went to the victim’s apartment at approximately 1:30 p.m., and knocked. The victim opened his door, and, after a brief interaction, Young stabbed the victim nine times in the torso and neck, using a knife with an approximately eight-inch blade. Young then left the building and went to the Metropolitan Police Department’s Sixth District substation. The victim was rushed to a nearby hospital. Young brought the knife he used to stab the victim to police and reported that the victim had attacked him and that he acted in self-defense. Young had a cut on his hand. The victim received emergency life-saving medical treatment and survived. Young was arrested and has been in custody ever since.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the charges, U.S. Attorney Graves and Chief Benedict commended the work of those investigating the case from the Metropolitan Police Department (MPD). Finally, they commended the work of Assistant U.S. Attorney Alec Levy, who is investigating and prosecuting the case.
Dermatologist Agrees to Pay $6.6 Million to Settle Allegations of Fraudulent Billing PracticesRead the Press Release
KNOXVILLE, Tenn. – Dermatologist, John Y. Chung, M.D., and his practice Skin Cancer & Cosmetic Dermatology Center, P.C. (“SCCDC”), which operates 13 dermatology clinics in southeast Tennessee and north Georgia, have agreed to pay $6.6 million to resolve allegations that they violated the False Claims Act by knowingly submitting false claims to federal healthcare programs for Mohs Micrographic Surgeries and other dermatological procedures.
This settlement resolves allegations that Dr. Chung and SCCDC knowingly submitted false claims for payment to Medicare, Medicaid, and other government payors for Mohs procedures that were billed as if both the surgery and pathology portions of the procedures were performed by Dr. Chung, when in fact at least one portion was often performed by other individuals. The settlement further resolves allegations that SCCDC regularly billed Medicare for multiple procedures, performed on the same patient on the same day, in a manner that improperly circumvented Medicare’s “multiple procedure reduction rule.” The alleged misconduct occurred from 2010 through 2020.
“Government healthcare programs establish billing rules and guidelines to safeguard tax-payer funds. Billions of dollars intended to cover the costs of healthcare services are lost every year to fraud, waste, and abuse, and when providers disregard billing requirements, the financial viability of public programs and the healthcare they provide are put at risk. The U.S. Attorney’s Office will aggressively root out providers whose billing practices take advantage of public programs for their own private gain,” said U.S. Attorney Francis M. Hamilton III.
“When health care providers submit improper claims to federal health care programs, they waste valuable taxpayer dollars,” said Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, our agency will continue to protect federal health care programs from fraud, waste, and abuse to ensure they can be used for their intended purposes.”
“Health care fraud, a severe problem that impacts every American, costs our country billions each year, takes critical resources out of our health care system, and contributes to the rising cost of health care for everyone. The FBI, along with our federal, state, and local partners, will continue to provide resources to investigate allegations of fraud in public programs and hold violators to account,” said FBI Special Agent in Charge Joseph E. Carrico, Knoxville Field Office.
“The VA OIG is dedicated to ensuring veterans receive the quality health care they deserve, and we will continue to work to make certain that VA healthcare programs are not compromised by fraudulent billing practices,” said Special Agent in Charge Kim R. Lampkins with the Department of Veterans Affairs Office of Inspector General’s Mid-Atlantic Field Office. “The VA OIG thanks the US Attorney’s Office, and our law enforcement partners for their efforts in this investigation.”
“To protect the integrity of federal health care programs and the patients they serve, it is important that providers are compliant with billing rules and procedures,” said TVA OIG Inspector General Ben Wagner. “The TVA OIG is committed to identifying and investigating healthcare false claims that negatively impact the people of the Tennessee Valley. The TVA-OIG will continue to work tirelessly alongside our law enforcement partners to protect the reliability of federal healthcare programs, and prevent fraud, waste, and abuse. The TVA OIG would like to thank the United States Attorney’s Office Eastern District of Tennessee for diligently pursing resolution of this case and ensuring funds were properly returned to TVA.”
“Health care providers that serve our nation’s military service members, retirees and their families are expected to meet the highest standards of ethical and professional behavior,” stated Special Agent in Charge Darrin K. Jones, DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “This settlement sends a clear signal to those who take advantage of TRICARE for personal enrichment.”
“Our Medicaid Fraud Division works each day to uphold the integrity of Georgia’s Medicaid program.,” said Georgia Attorney General Chris Carr. “This includes putting a stop to providers who submit false claims and take advantage of our publicly funded healthcare system. This type of fraud and abuse will not be tolerated as we continue our efforts to protect taxpayer dollars no matter the amount.”
As part of the settlement, Chung and SCCDC entered an Integrity Agreement (IA) with the U.S. Department of Health and Human Services – Office of Inspector General (HHS-OIG), which promotes its future compliance with the statutes, regulations, program requirements, and written directives of Medicare and all other federal health care programs. The IA focuses on the practice’s continuing obligation to accurately bill and properly submit reimbursement claims to government payors.
This investigation resulted from a coordinated effort between HHS-OIG (Nashville Field Office), the Federal Bureau of Investigation (Knoxville), Tennessee Bureau of Investigation, Defense Criminal Investigative Service, Tennessee Valley Authority – OIG, U.S. Department of Veterans Affairs – OIG, the U.S. Attorneys’ Office for the Eastern District of Tennessee, the Tennessee Attorney General’s Office, and the Georgia Attorney General’s Office. The investigation was prompted by a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permits private parties to sue on behalf of the government for false claims, and to receive a share of any recovery. The qui tam case is captioned United States, State of Tennessee and State of Georgia ex rel. Chambers v. Skin Cancer and Cosmetic Dermatology Ctr. and Chung, No. 1:20-CV-177 (E.D. Tenn.). The relator’s share of the recovery will be $1.32 million.
Assistant U.S. Attorneys Jeremy Dykes and Alexa Ortiz Hadley represented the United States. Senior Assistant Attorney General Tony Hullender represented the State of Tennessee, and Assistant Attorney General Sara Vann represented the State of Georgia.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
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Department of Justice Announces Investigation into Conditions in Fulton County, Georgia JailRead the Press Release
ATLANTA - The U.S Attorney’s Office for the Northern District of Georgia and the Department of Justice announced that it has opened a civil investigation into the conditions in the Fulton County Jail in Georgia.
“People in prisons and jails are entitled to basic protections of their civil rights,” said Attorney General Merrick B. Garland. “We launched this investigation into the Fulton County Jail based on serious allegations of unsafe, unsanitary living conditions at the jail, excessive force and violence within the jail, discrimination against incarcerated individuals with mental health issues, and failure to provide adequate medical care to incarcerated individuals. During this comprehensive review of the conditions of confinement at the Fulton County Jail, the Justice Department will determine whether systemic violations of federal laws exist, and if so, how to correct them.”
“All Georgians deserve fairness from the institutions that serve us, including our local jails,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “The recent allegations of filthy housing teeming with insects, rampant violence resulting in death and injuries, and officers using excessive force are cause for grave concern and warrant a thorough investigation. This investigation is part of our ongoing efforts to ensure that citizens are safe, and their constitutional rights protected, even while they are in custody.”
“The unconstitutional conditions that we see too often inside jails and prisons have no place in society today,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “We are launching this investigation to determine whether Fulton County’s treatment of people in the jail complies with constitutional standards. We are committed to ensuring jail and prison facilities provide constitutional conditions, in which all people can live safely and receive medical care. Incarceration should never include exposure to unconstitutional living conditions, including the risk of serious harm from violence.”
Based on an extensive review of publicly available information and information gathered from stakeholders, the Department has found significant justification to open this investigation, including credible allegations that an incarcerated person died covered in insects and filth; that the Fulton County Jail is structurally unsafe; that prevalent violence has resulted in serious injuries and homicides; and that officers are being prosecuted for using excessive force.
The investigation thus will examine living conditions, medical and mental health care, use of excessive force, and protection from violence. The investigation will also examine whether Fulton County and the Fulton County Sheriff’s Office discriminate against persons with psychiatric disabilities inside the Jail.
The Department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Americans with Disabilities Act (ADA). Both statutes give the department the authority to investigate systemic violations of the rights of people confined to correctional facilities. The department’s work has led to important reforms to protect the rights of people in jails and prisons.
Assistant U.S. Attorney’s Aileen Bell Hughes, Tiffany Dillingham, and Rebeca Ojeda of the Northern District of Georgia are conducting this investigation jointly with the DOJ Civil Rights Division’s Special Litigation Section. Individuals with relevant information are encouraged to contact the department via phone at (404) 581-4626 or by email at [email protected].
Additional information about the DOJ Civil Rights Division’s work regarding correctional facilities is available on its website at https://www.justice.gov/crt/rights-persons-confined-jails-and-prisons.
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.
Companies that employed labor whistleblower and his killers reach criminal, civil resolution with United StatesRead the Press Release
final_executed_npa_and_civil_settlement_letter_and_agreement.pdfSAVANNAH, GA: An Ohio company and its Tennessee subsidiary have agreed to pay nearly $4 million to resolve criminal and civil claims related to illegal labor practices reported by a whistleblower who was murdered for revealing the scheme.
Davey Tree Expert Company, of Ohio, and its subsidiary, Wolf Tree, Inc., entered into a non-prosecution and settlement agreement with the U.S. Attorney’s Office for the Southern District of Georgia and the U.S. Department of Homeland Security to resolve criminal and civil claims stemming from immigration and employment violations.
“Eliud Montoya attempted to expose a scheme where his employer and supervisors profited from the use of unauthorized laborers,” said U.S. Attorney Jill E. Steinberg. “His killers have been convicted and sentenced for their crimes, and this settlement holds the corporate entities financially accountable.”
The terms of the settlement with Davey Tree and Wolf Tree require a payment of $3,984,325.44 to the U.S. government to resolve all criminal and civil claims against the companies, which includes restitution to the victim’s estate for lost future income and to another employee for back wages. The settlement amount also includes forfeiture of $1,136,521.19 in payments from the companies’ contracts with Georgia Power, and a civil penalty of $1,500,000.
Pablo Rangel-Rubio and his brother, Juan Rangel-Rubio, along with Higinio Perez-Bravo, are citizens of Mexico illegally present in the United States. Pablo and Juan Rangel-Rubio were illegally employed at Wolf Tree, a company under contract to Georgia Power to trim trees along power line rights-of-way in the Savannah, Ga., area.
As determined at trial in October 2022, Pablo Rangel-Rubio, a supervisor at Wolf Tree, led a conspiracy to employ illegal aliens to work for the company, and provided those illegal aliens with assumed identities. The conspirators routed the workers’ paychecks to their own bank accounts where they skimmed a portion of the pay for themselves and paid the illegal aliens in cash to avoid detection. They also created fake employee accounts and directed that pay to themselves.
Eliud Montoya, also an employee of Wolf Tree, reported the illegal activity to the company and to the U.S. Equal Employment Opportunity Commission, and the conspirators shot and killed him near his home. The conspirators are serving federal prison sentences for their roles in Montoya’s murder
The companies allegedly conducted an audit of their employee files and determined that a percentage of their employees did not or could not provide sufficient documentation to demonstrate their authorization to be employed in the United States. The agreement resolves the government’s allegations that the companies unlawfully employed unauthorized workers and failed to verify their authorization status. The settled civil claims are allegations only and do not constitute admissions of liability by the settling parties.
“This labor exploitation scheme not only exploited our nation’s labor laws, but also led to the death of a whistleblower. Hopefully, the settlement sends a message to anyone involved in such activity that they will not go unpunished and that there is hope for anyone experiencing this horrible situation,” said Acting Special Agent in Charge Travis Pickard, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Protecting the integrity of the nation’s immigration and labor laws from those looking to circumvent them is of vital importance and HSI prioritizes this mission.”
The investigation was led by Homeland Security Investigations. The United States was represented by Southern District of Georgia Assistant U.S. Attorneys, including AUSAs Tania D. Groover and Bradford C. Patrick.
Colorado Man Sentenced for Drug TraffickingRead the Press Release
U.S. District Judge Jeffrey L. Viken has sentenced a Denver, Colorado, man convicted of Conspiracy to Distribute a Controlled Substance (heroin). The sentencing took place on July 10, 2023.
Arthur Manning, 56, was sentenced to nine years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Manning was indicted for two counts of Conspiracy to Distribute a Controlled Substance (heroin and fentanyl) and Money Laundering by a federal grand jury in December of 2021. He pleaded guilty on March 31, 2023.
Between October of 2020 and October of 2021, Manning supplied heroin, methamphetamine, and fentanyl to people located in South Dakota. He knew that people in South Dakota were going to further distribute the substances. Overall, Manning was responsible for distributing approximately two pounds of methamphetamine, 1,000 grams of fentanyl, and three pounds of heroin. Manning received payment in cash and through online money transfer services.
This case was investigated by Unified Narcotics Enforcement Team (UNET) and the Drug Enforcement Agency. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Manning was immediately remanded to the custody of the U.S. Marshals Service.
Chicago Man Sentenced to 15 Years in Federal Prison; Investigation Shut Down Missouri-to-Chicago Gun PipelineRead the Press Release
CHICAGO — A Chicago man has been sentenced to 15 years in federal prison as part of an investigation that shut down a Missouri-to-Chicago firearms pipeline.
DERRICK CLAIBORNE, 47, trafficked fentanyl-laced heroin and illegally possessed three handguns in 2018. Law enforcement searched Claiborne’s residence on Michigan Avenue in Chicago’s South Loop neighborhood and discovered the three guns and the drugs. U.S. District Judge Robert M. Dow, Jr. imposed the sentence after a hearing July 7, 2023, in federal court in Chicago.
Claiborne was one of four defendants convicted as part of an investigation led by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The probe revealed that Claiborne purchased three additional firearms from JAMES SAUNDERS after the guns had been transported from Missouri to Saunders’s residence in Chicago’s Woodlawn neighborhood. In addition to the three guns he sold to Claiborne, Saunders also sold multiple firearms to confidential informants who were cooperating with law enforcement.
Saunders pleaded guilty to federal firearm charges and was sentenced in 2019 to five years in federal prison.
Two Missouri residents who transported firearms to Saunders in Chicago were also convicted and sentenced as part of the investigation. JUMONTA MOORE, 25, of Sikeston, Mo., and MARCUS INGRAM, 30, of Charleston, Mo., were each sentenced in 2019 to three years in federal prison.
Claiborne’s sentence and the results of the investigation were announced by Morris Pasqual, Acting United States Attorney for the Northern District of Illinois, Christopher Amon, Special Agent-in-Charge of the Chicago Field Division of ATF, and Fred Waller, Interim Superintendent of the Chicago Police Department. Substantial assistance was provided by the U.S. Drug Enforcement Administration and the IRS Criminal Investigation Division. The government was represented by Assistant U.S. Attorney Jared C. Jodrey and Special Assistant U.S. Attorney Niranjan Emani.
Disrupting illegal firearms trafficking is a centerpiece of the Chicago Firearms Trafficking Strike Force, the Department of Justice’s cross-jurisdictional strike force aimed at reducing gun violence. As part of the Chicago Strike Force, the U.S. Attorney’s Office collaborates with ATF and other federal, state, and local law enforcement partners in the Northern District of Illinois and across the country to help stem the supply of illegally trafficked firearms and identify patterns, leads, and potential suspects in violent gun crimes.
Holding illegal firearm possessors accountable through federal prosecution is also a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, the U.S. Attorney’s Office has deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
“Firearms traffickers enable unlawful possession of guns and the violence that may follow,” said Acting U.S. Attorney Pasqual. “We will continue to work with our law enforcement partners to investigate and hold accountable individuals or groups who traffic firearms into Chicago.”
“This case is an excellent example of how the Firearms Trafficking Strike Force, working together with the Chicago Police Department and the U.S. Attorney’s Office, stops the flow of illegal guns into our neighborhoods,” said ATF SAC Amon. “Prosecuting those responsible for trafficking these firearms makes our community safer.”
Charleston Woman Pleads Guilty to Federal Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Keara Kilpatrick, 21, of Charleston, pleaded guilty yesterday to stealing firearms from two Kanawha County businesses.
According to court documents and statements made in court, on November 9, 2022, Kilpatrick drove a co-defendant to a business in Dunbar and stole a Diamondback Firearms DB15 5.56 caliber rifle and a Smith and Wesson M&P 15-22 .22 caliber rifle. On November 10, 2022, Kilpatrick drove her co-defendant to a Charleston business and stole a Custom Arms & Accessories LD-15 5.56 caliber rifle and a DPMS Panther Arms A-15 5.56 caliber rifle. Kilpatrick admitted to law enforcement that she stole the firearms. Three of the four stolen firearms have been recovered by law enforcement.
Kilpatrick is scheduled to be sentenced on October 4, 2023, and faces a maximum penalty of 20 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), the Kanawha County Sheriff’s Department, and the Charleston Police Department.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorneys Ryan Keefe and Brian Parsons are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-28.
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Charleston Man Sentenced to One Year in Federal Prison for Fraud Relating to Coronavirus FundsRead the Press Release
CHARLESTON, SOUTH CAROLINA — Antonio Brown-Sanders, 26, of Charleston, was sentenced to one year and a day in federal prison after pleading guilty to fraudulently applying for an Emergency Injury Disaster Loan (EIDL) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The CARES Act is a federal law enacted in March 2020 designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the Coronavirus. Two primary sources of relief provided by the CARES Act were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program. PPP loans consisted of more than $640 billion in forgivable loans to small businesses for payroll, mortgage interest, rent, and utilities. The EIDL program provided low-interest loans to business owners to pay for items like accounts payable and other bills that could not be paid as a result of COVID-19.
Evidence presented to the court showed that that Brown-Sanders applied to the Small Business Administration (SBA) to receive an EIDL loan that fraudulently represented he owned a lawn care business. The application submitted by Brown-Sanders also falsely represented the number of employees and gross income. Brown-Sanders received $81,600 from the SBA.
“The defendant in this case stole from American taxpayers and prevented pandemic-relief funds from reaching those who needed them most,” said U.S. Attorney Adair F. Boroughs. “The District of South Carolina is committed to pursuing and investigating those who defraud government programs. We encourage any member of the public with information about attempted fraud involving COVID-19 to report it to the Department of Justice’s National Center for Disaster Fraud Hotline.”
“The Secret Service is diligent in our investigation and pursuit of those who engage in fraudulent criminal activity. We appreciate the commitment from our law enforcement partners at the U.S. Attorney’s Office and the Office of Inspector General - Small Business Administration to see that justice is served,” said Resident Agent in Charge Ben Stafford of the Secret Service’s Charleston Resident Office. “This sentencing reflects the seriousness with which the government handles fraudulent crimes and should act as a warning to those who aspire to exploit government relief programs that are put in place to help those in need.”
“Those that use fraudulent documents to gain access to SBA programs funds will be met with justice,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
United States District Judge Richard Gergel sentenced Brown-Sanders to 12 months and 1 day in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system. The court also ordered him to pay the restitution still due in the amount of $65,246.48.
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.
The case was investigated by the United States Secret Service and the Office of Inspector General – Small Business Administration. Assistant United States Attorney Amy F. Bower prosecuted the case.
Charleston County Man Pleads Guilty in Federal Court to Defrauding Small Business AdministrationRead the Press Release
CHARLESTON, SOUTH CAROLINA — Carl Ulm, 67, of Charleston, pleaded guilty in federal court to defrauding the Small Business Association (SBA) to receive a Paycheck Protection Program (PPP) loan under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Evidence presented in court established that Ulm applied to the SBA, through a third-party lender, to receive a PPP loan that contained materially false representations. At the time he applied for the loan, Ulm had sold the assets of his business, Anchor Restoration Contractors, LLC, to another entity. He therefore did not have payroll obligations or business expenses. The total amount of the PPP loan that Ulm received was $204,132.50.
Ulm is subject to a maximum sentence of 20 years in federal prison and a fine of $250,000.00. United States District Judge Bruce Howe Hendricks accepted the guilty plea and will sentence Ulm after receiving and reviewing a sentencing report prepared by the United States Probation Office.
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.
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 at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Amy F. Bower prosecuted the case.
Celsius Founder and Former Chief Revenue Officer Charged in Connection with Multibillion-Dollar Fraud and Market Manipulation SchemesRead the Press Release
Alexander Mashinsky, Founder and Former Chief Executive Officer of Celsius, Charged with Defrauding Celsius Customers, and Mashinsky and Roni Cohen-Pavon, Former Celsius Chief Revenue Officer, Charged with Manipulating the Market for Celsius Crypto Token
Celsius Network LLC Accepts Responsibility and Pledges to Continue Cooperating
Damian Williams, the United States Attorney for the Southern District of New York, and Christie M. Curtis, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging ALEXANDER MASHINSKY, the founder and former Chief Executive Officer of Celsius Network LLC and their affiliated entities (collectively, “Celsius”), with securities fraud, commodities fraud, and wire fraud for defrauding customers and misleading them about core aspects of the company he founded, including Celsius’s success, profitability, and the nature of the investments Celsius made using customer funds. MASHINSKY and RONI COHEN-PAVON, Celsius’s former Chief Revenue Officer, are further charged with conspiracy, securities fraud, market manipulation, and wire fraud for illicitly manipulating the price of CEL, Celsius’s proprietary crypto token, all while secretly selling their own CEL tokens at artificially inflated prices.
On June 12, 2022, Celsius announced it was halting all customer withdrawals from the Celsius platform, at which time hundreds of thousands of Celsius customers — many of whom were retail investors — still had approximately $4.7 billion worth of crypto assets on the Celsius platform, none of which they could access. On or about July 13, 2022, Celsius filed for Chapter 11 bankruptcy. MASHINSKY was arrested earlier today and will be presented this afternoon before U.S. Magistrate Judge Ona T. Wang. COHEN-PAVON, an Israeli citizen and resident, is currently abroad. The case has been assigned to U.S. District Judge John G. Koeltl.
U.S. Attorney Williams also announced today that the United States has entered into a non-prosecution agreement (the “Agreement”) with Celsius pursuant to which Celsius has agreed to accept responsibility for its role in the fraudulent schemes. In entering into the Agreement, the Office considered the fact that Celsius is in Chapter 11 bankruptcy proceedings and is making efforts to maximize recovery for victims in connection with the bankruptcy, as well as the fact that Celsius dramatically improved its cooperation after the Government brought certain production failures to the attention of the Special Committee of Celsius’s Board of Directors.
U.S. Attorney Damian Williams said: “Exactly one year ago today, Celsius Network, a crypto platform that, at its height, managed approximately $25 billion in customer assets, filed for bankruptcy protection in the Southern District of New York. Over the course of the past year, we have worked quickly to get to the bottom of what led to Celsius’s collapse and to understand how a platform that advertised itself as the ‘safest place for your crypto’ could have left investors holding billions of dollars in losses. Today we have the answer. Today I am announcing the unsealing of an indictment charging Celsius’s founder and CEO, Alex Mashinsky, with orchestrating a scheme to defraud customers of Celsius through a series of false claims about the fundamental safety and security of the Celsius platform, and for participating in a scheme with Celsius’s Chief Revenue Officer, Roni Cohen-Pavon, to inflate the price of Celsius’s proprietary token, CEL. This case, like the others my Office has recently announced alleging fraud in the crypto economy, may appear complicated. But the message we send today is quite simple: if you rip off ordinary investors to line your own pockets, we will hold you accountable. Whether it’s old-school fraud or some new-school crypto scheme, it doesn’t matter one bit. It’s all fraud to us. And we’ll be here to catch it.”
FBI Acting Assistant Director in Charge Christie M. Curtis said: “As alleged in the indictment, Mashinsky and Cohen-Pavon knowingly engaged in complex financial schemes – deliberately misrepresenting the company’s business model and criminally manipulating the value of Celsius’s proprietary crypto token CEL – while serving in leadership roles at Celsius. The FBI will continue to ensure that anyone committing fraud and deceiving the public through the misrepresentations of a business’s financial standing or practice is held accountable.
According to the allegations in the Indictment unsealed today in Manhattan federal court and the stipulated facts in the Agreement:[1]
Celsius was a crypto asset platform that, among other things, allowed its customers to earn returns on their crypto assets in the form of weekly “rewards” payments, to take loans secured by their crypto assets, and to custody their crypto assets. Celsius billed itself as the “safest place for your crypto” and urged potential customers to “unbank” themselves by moving their crypto assets to Celsius. Celsius’s primary public offering was its “Earn” program, through which Celsius offered to deploy customers’ crypto assets to generate investment returns. In addition to its Earn program, Celsius offered retail investors a “Custody” program and a “Borrow” program, which allowed customers to receive retail loans in exchange for posting their crypto assets as collateral with Celsius.
MASHINSKY directly marketed Celsius to retail customers located in the United States and abroad. Throughout his tenure as CEO of Celsius, MASHINSKY repeatedly made public misrepresentations regarding core aspects of Celsius’s business and financial condition in order to induce retail customers to provide their crypto assets to Celsius and continue to use Celsius’s services. MASHINSKY misrepresented, among other things, the safety of Celsius’s yield-generating activities, Celsius’s profitability, the long-term sustainability of Celsius’s high rewards rates, and the risks associated with depositing crypto assets with Celsius.
As MASHINSKY falsely portrayed Celsius as a safe and secure institution, Celsius’s customer base grew exponentially. Many of those customers were retail investors rather than large institutions. By in or about the fall of 2021, Celsius had grown to become one of the largest crypto platforms in the world, purportedly holding approximately $25 billion in assets at its peak.
MASHINSKY, COHEN-PAVON, and others working at Celsius also orchestrated a yearslong scheme to mislead customers and market participants regarding the market value and interest in Celsius’s proprietary crypto token CEL. They did so by manipulating the price of CEL through causing Celsius to spend hundreds of millions of dollars purchasing CEL in the open market with the objective of artificially supporting and inflating the price of CEL. At various times during MASHINSKY’s tenure, MASHINSKY, COHEN-PAVON, and their co-conspirators also caused Celsius to use its own customer deposits to fund these market purchases of CEL in order to prop up CEL’s price, without disclosing this fact to Celsius’s customers.
Without Celsius’s aggressive and illegal price manipulation, the price of CEL would have been drastically lower. As COHEN-PAVON wrote to MASHINSKY in a private message exchanged during the scheme: “[T]he issue is that people are selling [CEL] and no one is buying except for us,” adding, “[t]he main problem was that the value was fake and was based on us spending millions (~8M a week and even more until February 2020) just to keep it where it is.”
To further the scheme to manipulate CEL, MASHINSKY also repeatedly made false and misleading public statements concerning the nature of Celsius’s market activity and the extent to which Celsius itself was responsible for artificially supporting and inflating the price of CEL. In certain instances, MASHINSKY and other Celsius executives also personally purchased CEL for the purpose of artificially supporting CEL’s price.
Artificially inflating the price of CEL allowed MASHINSKY, COHEN-PAVON, and other Celsius executives to sell their own CEL holdings for a substantial profit. MASHINSKY personally reaped approximately $42 million in proceeds from his sales of CEL, and COHEN-PAVON personally reaped at least $3.6 million in proceeds from his sales of CEL. At various times, MASHINSKY made false and misleading public statements about his own sales of CEL, claiming that he was not selling CEL, when, in reality, he was taking advantage of the upward price manipulation he had orchestrated by contemporaneously selling huge quantities of his CEL on the market, including, on occasion, to Celsius itself.
In the lead up to the June 12, 2022, “Pause” of Celsius customer withdrawals, MASHINSKY continued to assure Celsius customers that Celsius was in a strong financial position and had sufficient liquidity to meet all customer withdrawal demands. Even as he made these statements, however, MASHINSKY had removed approximately $8 million worth of his own non-CEL crypto assets from the Celsius platform.
* * *
A chart containing the names, ages, residences, charges, and maximum penalties for the individual defendants is below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams further thanked the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, each of which today filed parallel civil actions against MASHINSKY.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Adam Hobson, Allison Nichols, and Noah Solowiejczyk are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Residence
Charges
Maximum Potential Sentences
MASHINSKY
57
New York, New York
Securities fraud
(Count One)
Commodities fraud
(Count Two)
Wire fraud
(Count Three)
Conspiracy to commit securities fraud, market manipulation, and wire fraud
(Count Four)
Securities fraud
(Count Five)
Market manipulation
(Count Six)
Wire fraud
(Count Seven)
20 years
10 years
20 years
Five years
20 years
20 years
20 years
COHEN-PAVON
36
Israel
Conspiracy to commit securities fraud, market manipulation, and wire fraud
(Count Four)
Securities fraud
(Count Five)
Market manipulation
(Count Six)
Wire fraud
(Count Seven)
Five years
20 years
20 years
20 years
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Statement of Facts U.S. Mashinsky and Cohen-Pavon Indictment Celsius Non-Prosecution AgreementBurleson Would-Be Bomber Pleads Guilty to Firearms, Child Porn ChargesRead the Press Release
A Burleson man who apparently idolized the Columbine High School shooters pleaded guilty today to possessing a homemade bomb, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Noah Robert Calderon, 22, was charged via criminal complaint in April and indicted in May. He pleaded guilty Thursday to one count of possession of an unregistered firearm and one count of receipt of child pornography.
“This defendant’s obsession with mass shooters put him squarely on the Justice Department’s radar. When he violated the law, we took immediate action, potentially thwarting an act of violence,” said U.S. Attorney Leigha Simonton. “The discovery of one crime, possession of an unregistered firearm, led to the discovery of another, possession of child pornography. We are proud to hold him accountable for both. ”
“The collaborative work by the FBI and our law enforcement partners led to today’s outcome which holds Mr. Calderon accountable for creating and possessing a homemade bomb and for possessing explicit videos of a child,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “The FBI is committed to protecting the communities we serve from violent acts and the exploitation of innocent children. We ask the public to remain alert and to continue reporting suspicious or threatening behavior to law enforcement.”
The investigation began in October 2022, when the FBI received a tip about Mr. Calderon’s social media activity.
Court documents indicate that online, Mr. Calderon professed a fascination with high-profile mass shootings, particularly the 1999 massacre at Columbine High School. He posted numerous images of himself in tactical-style vests posing with AR-15-style rifles and shared Columbine-themed memes along with images of homemade explosives.
In March 2023, the FBI received another tip that Mr. Calderon had detonated a homemade bomb in his residential neighborhood.
In plea papers, he admitted that he had purchased explosive precursors online. He also admitted that he stored 659.2 grams of explosive powder, along with a lighter, cannon fuse, cardboard tubing, a glass jar marked “frag” that contained metal ball bearings, lead, a funnel, and measuring spoons, in his garage.
A subsequent search of his Google account revealed queries related to the Columbine killers, the Charleston church shooter, “pipe bomb how to make,” “how to make propane bombs,” and “wear [sic] were the propane bombs in Columbine,” as well as searches of the names of several local public schools.
In plea papers, Mr. Caldron specifically admitted to searching for bomb-making information.
A search of his phone revealed sexually explicit videos taken from a video chat between Mr. Calderon and a 13-year-old girl.
Also in plea papers, he admitted he was aware of the child’s age when he saved the videos.
Mr. Calderon now faces up to 30 years in federal prison – up to 10 years on the firearm count plus between five and 20 years on the child pornography count. His sentencing is set for Friday, Nov. 3 at 9 a.m.
The Federal Bureau of Investigation’s Dallas Field Office, the Burleson Police Department, and the Bureau of Alcohol, Tobacco, Firearms, & Explosives’ Dallas Field Division conducted the investigation. Assistant U.S. Attorney Jay Weimer is prosecuting the case with National Security Division Trial Attorneys Justin Sher and Jacob Warren.
Bureau of Prisons Correctional Officer Pleads Guilty to Violating the Civil Rights of an Inmate Resulting in His DeathRead the Press Release
RICHMOND, Va. – A federal Bureau of Prisons (BOP) lieutenant pleaded guilty yesterday to violating the civil rights of an inmate by showing deliberate indifference to the inmate’s serious medical needs, resulting in his death.
According to court documents, on January 9 and 10, 2021, Michael Anderson, 52, was working in his official capacity as a BOP correctional officer, with a rank of lieutenant, at the Federal Correctional Institution at Petersburg. In that capacity, Anderson was responsible for the care of federal inmates. On Jan. 9, 2021, a correctional officer notified Anderson that a 47-year-old inmate, W.W., was experiencing symptoms of an apparent medical emergency and asked the defendant to help W.W. obtain medical care. Anderson personally observed W.W.’s symptoms and stated that he would get medical help for W.W. Anderson nevertheless failed to notify medical staff, obtain a medical assessment, contact the facility’s on-call physician, or notify any other staff members of W.W.’s condition. The next day, a correctional officer notified Anderson that W.W. had fallen to the ground in his cell. Even with this information, Anderson failed to obtain any assistance for W.W. whatsoever. W.W. then laid on the ground, dead or dying, for over an hour and a half before any correctional or medical staff entered his cell. By the time correctional and medical staff entered the cell, life-saving efforts failed, and W.W. was later pronounced dead.
“Despite Anderson’s knowledge of the victim’s medical condition and his knowledge of BOP policies, he failed to provide potentially life-saving medical care to an inmate in need,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “People have a constitutional right to basic care while incarcerated.”
“Correctional supervisors are responsible for the care and custody of inmates entrusted to their care, particularly those with serious medical needs,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold accountable those correctional officers who deliberately disregard inmates’ serious medical needs.”
“Anderson’s appalling indifference and disregard for his responsibility to provide a humane environment for inmates resulted in the needless loss of life,” said Special Agent in Charge Russell W. Cunningham of the Justice Department’s Office of the Inspector General Washington Field Office. “Incarcerated individuals should never be denied medical care, and the Department of Justice Office of the Inspector General will continue to aggressively investigate anyone who does so.”
Sentencing is scheduled for November 28, 2023. Anderson faces a maximum penalty of life in prison. Any sentence will be determined by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors. 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; Kristen Clarke, Assistant Attorney General of the Justice Department’s Civil Rights Division; Michael E. Horwitz, Inspector General of the Justice Department, made the announcement after U.S. District Judge Roderick C. Young accepted the plea.
The Justice Department’s Office of the Inspector General investigated the case.
Assistant U.S. Attorney Thomas A. Garnett for the Eastern District of Virginia and Special Litigation Counsel Kathryn E. Gilbert and Trial Attorney Matthew Tannenbaum of the Civil Rights Division’s Criminal Section 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-80.
Browning man admits manslaughter charge in death of woman struck by vehicle on Blackfeet Indian ReservationRead the Press Release
GREAT FALLS — A Browning man today admitted to a manslaughter charge for striking a woman with his vehicle and killing her in 2021 on the Blackfeet Indian Reservation, U.S. Attorney Jesse Laslovich said.
Jordan Joseph Morgan, 31, pleaded guilty to involuntary manslaughter. Morgan faces a maximum of eight years in prison, a $250,000 fine and three years of supervised release.
In a plea agreement in the case, the parties agreed that a specific recommendation of 12 months and one day imprisonment is appropriate.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Dec. 6. Morgan was detained pending further proceedings.
In court documents, the government alleged that on the evening of Nov. 8, 2021, Morgan encountered the victim, identified as Jane Doe, who was known to him, in Browning. The two argued and Morgan got into his vehicle, while Jane Doe stayed by the open window at Morgan’s door. Morgan pulled forward with Jane Doe still at his door and holding onto the open window. After a short distance, the vehicle pulled to the right, throwing Jane Doe under the vehicle. Morgan continued driving and ran over Jane Doe.
Assistant U.S. Attorneys Lori Harper Suek and Kalah A. Paisley are prosecuting the case. The FBI, Blackfeet Law Enforcement Services and Montana Highway Patrol conducted the investigation.
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Boise Man Sentenced on Federal Gun CrimeRead the Press Release
BOISE – Jeffrey Eldridge, 57, of Boise, was sentenced to 18 months in federal prison for the unlawful possession of firearms, announced U.S. Attorney Josh Hurwit. U.S. District Judge Amanda K. Brailsford also ordered Eldridge to serve three years of supervised release following his prison sentence.
According to court records, Eldridge was involuntarily committed to an Idaho State hospital in 2016. In that proceeding, a state magistrate judge found Eldridge "gravely" disabled due to mental illness. Because of this involuntary commitment, Eldridge could not lawfully possess firearms under federal law and was subsequently notified of this firearms disability.
Eldridge has a history of mental illness and delusions where he believes others are attempting to harm him. On January 11, 2023, two officers responded to Eldridge’s residence in Boise to take him into custody for a mental evaluation. During the contact, officers located ten firearms in the home and approximately 1,300 rounds of ammunition.
“The unlawful possession of firearms by those with mental illnesses present a public safety risk that cannot be ignored,” said U.S. Attorney Hurwit. “This case exemplifies the collaborative work of our Project Safe Neighborhoods program, where local police cooperatively worked with federal counterparts.”
U.S. Attorney Hurwit credited the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Boise Police Department for their collective efforts on the case.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. PSN is 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.
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Bergen County Man and New York Woman Charged with Fentanyl TraffickingRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man and a New York woman were charged for their roles in a fentanyl trafficking conspiracy operating in and around Bergen County, U.S. Attorney Philip R. Sellinger announced today.
Plinio Junior Pineda Lopez, 33, of Oakland, New Jersey, is charged by complaint with one count of conspiracy to distribute and possess with intent to distribute fentanyl; Lorendy Diaz Beltre De Inoa, 27, of Yonkers, New York, is charged by complaint with possession with intent to distribute fentanyl. They appeared on July 12, 2023, before U.S. Magistrate Judge José R. Almonte in Newark federal court. Lopez was detained and De Iona was released with electronic monitoring.
According to documents filed in this case and statements made in court:
Lopez conspired with others to distribute large quantities of fentanyl between Florida and New Jersey out of his home. On July 11, 2023, Lopez and De Inoa were arrested in Wallington, New Jersey, while attempting to conduct a drug deal. Law enforcement officers found on De Inoa 1.5 kilograms of fentanyl. Following the arrest, and pursuant to a court-authorized search warrant, law enforcement conducted a search of Lopez’s home and recovered further kilograms of fentanyl hidden throughout the home. The home also contained packaging materials and paraphernalia consistent with those used to package controlled substances. Law enforcement officers recovered a total in excess of approximately 9 kilograms of fentanyl and 1 kilogram of cocaine.
The count charging Lopez with conspiracy to distribute controlled substances carries a maximum potential penalty of life imprisonment, a mandatory minimum penalty of 10 years in prison, and a fine of $1 million. The count charging De Inoa with possession with intent to distribute fentanyl carries a maximum punishment of 20 years in prison and a fine of $1 million.
U.S. Attorney Sellinger credited special agents of Homeland Security Investigations (HSI) Newark, under the direction of Special Agent in Charge Ricky J. Patel; HSI Miami; HSI Jacksonville, Florida; Customs and Border Protection Air and Marine Operations and CBP Office of Field Operations; the Jacksonville Sheriff’s Office; Drug Enforcement Administration NY Z-43; the Bergen County Prosecutor's Office; the Oakland Police Department; and the Paterson Police Department with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jason Goldberg of the Organized Crime/Gang Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
lopezdeinoa.complaint.pdfArizona Resident Sentenced for Fentanyl Distribution in TulsaRead the Press Release
Tulsa, Okla. – An Arizona resident was sentenced to 20 years and 8 months in prison for possession of fentanyl with intent to distribute; possession of firearms in furtherance of a drug trafficking crime; and for being a felon in possession of a firearm and ammunition, announced U.S. Attorney Clint Johnson.
U.S. District Judge Jack Zouhary sentenced Hatcher Raymond Day, 27, of Phoenix, Arizona to 188 months imprisonment for possession of fentanyl with intent to distribute and for being a felon in possession of a firearm and ammunition, and 60 months for possession of firearms in furtherance of a drug trafficking crime. Zouhary further ordered the sentences to run consecutively followed by 5 years of supervised release.
“Hatcher came to Tulsa from Arizona for the express purpose of flooding our area with fentanyl. We are committed to bringing down operations that peddle drugs and endanger our community,” said U.S. Attorney Clinton Johnson. “I want to thank the Tulsa Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives for working together to bring this case for prosecution.”
According to court documents, in September 2022, an officer with the Tulsa Police Department’s Human Trafficking and Vice Unit, received a tip that Day was selling fentanyl pills from a Tulsa Airbnb rental property.
Officers were able to establish Day was the individual who rented the property through Airbnb and Day was present when a search warrant was executed on Sept. 19, 2022. During the search, they discovered more than 8,000 fentanyl pills weighing 888 grams, five firearms, and numerous rounds of ammunition. Day was a convicted felon and, therefore, prohibited from possessing firearms. Officers further discovered four of the five firearms were stolen when they checked the National Crime Information Center (NCIC) database.
The Tulsa Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
Assistant U.S. Attorney’s Nathan Michel and Kenneth Elmore prosecuted the case.
Anchorage Man Sentenced to 9 Years for Stealing 22 GunsRead the Press Release
ANCHORAGE, Alaska – An Anchorage man was sentenced yesterday to nine years in federal prison for stealing 22 firearms from an Anchorage gun store in 2019.
According to court documents, Muna Junior Rhode, 24, pleaded guilty in September 2022 to stealing
22 firearms from Granny’s Guns, a federally licensed firearms dealer located in Anchorage, on June
6, 2019, along with three co-conspirators.
Rhode and his co-conspirators drove a stolen Chevy Trailblazer to Wrightway Auto Carriers in
Anchorage where they broke into the building and stole license plates, filing cabinets and a GMC
Sierra pickup. Rhode and the three co-conspirators then stole another vehicle, drove it through the front window of Granny’s Guns, loaded 22 firearms into the back of the GMC truck and drove away.
They later lit the stolen GMC Sierra pickup on fire in an effort to destroy evidence and escaped in a black SUV.
Later the same day, officers with the Anchorage Police Department tried to stop Rhode, who was driving the black SUV, and his co-defendants driving another pickup, but they fired shots into the air and fled at high speeds across Anchorage. On June 20, 2019, Rhode and two others were caught on video attempting to jump the fence of a tow yard to recover one of the stolen guns left in an impounded vehicle. All four co-conspirators were indicted in October 2020 and subsequently arrested. Rhode is also facing charges in state court.
“The blatant disregard for public safety and law enforcement, both during and after this series of violent crimes, by Rhode and his co-conspirators show they are a danger to our community and all
Alaskans,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “We will continue to work closely with local, state and federal law enforcement to fight violent crime and keep our communities safe from people who endanger our neighborhoods.”
“All of the involved defendants demonstrated a complete indifference to the safety of others through their actions in their violent crime spree,” stated Police Chief Michael Kerle. “From the theft of multiple vehicles, to firing shots in public, driving erratically on our streets, and stealing multiple firearms; it is imperative they are held accountable for their behavior. Rhode’s sentencing is a big part of that. We are grateful for the efforts of all our law enforcement partners who were involved in seeing this case through.”
Co-conspirators in this case include: Gian Carlo Pangilinan, aka “G,” 27, pleaded guilty to stealing firearms from a licensed dealer and was sentenced to 10 years’ imprisonment.
Kao Chiang Saelee, aka “Robbie,” 41, pleaded guilty to conspiracy to steal firearms from a licensed dealer and was sentenced to 5 years’ imprisonment.
Hans Mikaele Wells, aka “Mika,” 26, pleaded guilty to stealing firearms and was sentenced to 9 years’ imprisonment.
The Anchorage Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives
(ATF) investigated the case.
Assistant U.S. Attorney Jennifer Ivers prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of
Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
###Anchorage Felon Sentenced for Possessing Stolen Firearms, and Possessing Fentanyl and Heroin While in PrisonRead the Press Release
ANCHORAGE, Alaska – An Anchorage man was sentenced on July 10, 2023, to six years in prison for possessing stolen firearms in September 2020, while being a twice-convicted felon for separate burglaries. He was also sentenced, the same day, to an additional 1.5 consecutive years in prison for possessing fentanyl and heroin while in prison in February 2023. After his release from prison, he will begin a three-year term of supervised release.
According to court documents, Max Reder, 37, was hired by an elderly victim to help her clean her garage in September 2020 after her late husband, a retired military officer, had passed away. Reder used this opportunity to burglarize the victim’s home. He stole over 40 firearms, her engagement ring, her late husband’s Rolex watch, which was a gift from his squadron, and other irreplaceable items.
After stealing these items, Reder quickly sold 41 firearms to a second victim, a firearms collector, for $12,000 before any firearms were reported stolen by the first victim. The second victim did not know about the theft and fully cooperated with investigators. Only the stolen firearms were recovered.
The United States Attorney’s Office indicted Reder for the firearms crime in August 2022, following a referral from the State of Alaska under the Project Safe Neighborhoods program.
Court documents further show that Reder was in custody as a federal inmate at the Anchorage Correctional Complex, for the above firearm matter, and that on or around Feb. 12, 2023, Reder possessed over eight grams of heroin and about 69 fentanyl pills in his jail cell. He was indicted on contraband charges in March 2023.
“Crimes against elderly victims are an egregious threat and will not be tolerated,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “The defendant was held accountable for crimes committed against this elderly grieving victim and the pain he further inflicted upon her by taking exceptionally sentimental items. Additionally, the trafficking of stolen firearms—especially by convicted felons—is a threat to the safety of all Alaskans, and we will continue to work closely with all law enforcement partners to keep or communities safe. The defendant further showed his blatant disregard for rules by possessing significant quantities of heroin and fentanyl—both extremely deadly drugs—in our custodial institutions. Drugs in prison endangers the safety of all those working and housed in these facilities.”
“Weapon and drug crimes are not only serious offenses on their own, but routinely lead to other criminal activities,” stated Anchorage Police Chief Michael Kerle. “These types of cases are often solved due to the close working relationships we have with other law enforcement entities in the state. It’s also common for successful prosecution of suspects to be aided by citizens who choose to come forward with information they have regarding crimes. Without all these partnerships in play, closing out investigations would be so much more difficult.”
The Anchorage Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the firearms case. The United States Marshals Service (USMS) investigated the prison contraband case.
Assistant U.S. Attorney George Tran prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
###Albuquerque Man Sentenced to 6 Years in Prison for 9 Bank RobberiesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Evan Lemmon was sentenced to 80 months in prison and order to pay $24,875 in restitution. Lemmon, 29, of Albuquerque, pled guilty to nine counts of bank robbery on February 9, 2023.
According to court records, over a five-month period from Sept. 28, 2021, to March 7, 2022, Lemmon committed a spree of nine bank robberies in Albuquerque, each following a similar pattern. Each time, Lemmon would enter the banks wearing a cap, face covering, and a glove on his right hand and pass a similar note to a teller. After the tellers complied, Lemmon would flee on foot to a car parked nearby and leave the scene.
After the eighth robbery, the FBI located one of the cars Lemmon fled in with the assistance of APD’s Investigative Support Unit. The FBI tracked the vehicle and subsequently located it leaving the scene on the ninth robbery. At that time, the FBI executed a search warrant on Lemmon’s residence and recovered caps and items of clothing consistent with the robberies, a piece of paper believed to be a draft note that stated “I HAVE A GUN GIVE M,” and U.S. currency.
Upon his release from prison, Lemmon will be subject to 3 years of supervised release.
The FBI’s Albuquerque Violent Crime and Gang Task Force and the Albuquerque Police Department’s Investigate Support Unit (ISU) investigated this case. Assistant United States Attorney Jaymie L. Roybal is prosecuting the case.
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12 July 2023
Warren Man Indicted by a Federal Grand JuryRead the Press Release
CLEVELAND - A Warren, Ohio man with an extensive criminal history that includes Possession of Cocaine and Trafficking in Cocaine has been indicted by a federal grand jury. On July 11, 2023 the grand jury returned a seven-count indictment charging Stanley E. Redd, Jr., 44, with Felon in Possession of Firearms and Ammunition; Possession with Intent to Distribute Fentanyl; Possession with Intent to Distribute Cocaine; Using and Maintaining a Drug Premises; Possessing a Firearm in Furtherance of a Drug Trafficking Crime; Sponsoring or Exhibiting Animals in Animal Fighting Venture; and Buying, Selling, Delivering, Possessing, Training, or Transporting Animals for Participation in Animal Fighting Venture.
The indictment alleges that on or about May 18, 2021, Redd possessed an Amadeo Rossi .38 caliber revolver, and a RG Industries, Model RG40, .38 caliber revolver, and ammunition. He is prohibited from possessing firearms and ammunitions due to his convictions in 2003, 2007, 2013, and 2014 for Possession of Cocaine and in 2008 for Trafficking in Cocaine and Possession of Cocaine.
The indictment also alleges on or about May 18, 2021, Redd possessed with the intent to distribute Fentanyl and Cocaine; and possessed a firearm in furtherance of drug trafficking crimes.
The indictment further alleges that from on or about May 5, 2021, through on or about May 18, 2021, Redd knowingly used and maintained a premises located in Warren, Ohio for the purpose of distributing controlled substances.
Finally, the indictment charges Redd with sponsoring and exhibiting an animal in an animal fighting venture and buying, selling, possessing, training, or transporting animals for participation in an animal fighting venture beginning in or around December 2020 and ending on or about May 18, 2021.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigation preceding the indictment was conducted the FBI, USDA, and Warren City Police Department. The case is being prosecuted by Assistant U.S. Attorney Jennifer L. McLaughlin and Senior Litigation Counsel Michelle M. Baeppler. An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wapato Man Sentenced to 96 Months in Prison for Manslaughter and Aggravated Assault Wapato Man Sentenced to 96 Months in Prison for Manslaughter and Aggravated AssaultRead the Press Release
Yakima, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Brandon Kelly Root, age 47, of Toppenish, Washington was sentenced after pleading guilty to two counts of Involuntary Manslaughter and two counts of Assault Resulting in Serious Bodily Injury. United States District Judge Mary K. Dimke imposed a sentence of 96 months imprisonment to be followed by three years of supervised release.
According to Court documents, on June 11, 2017, at approximately 2:30 a.m., Root was driving on the Yakama Nation in the Eastern District of Washington. At the time, he was under the influence of alcohol and crossed the center line of the roadway. Root’s vehicle struck another car head on. Four individuals were in the other vehicle. Two were killed and the others, one of whom was a minor child, suffered serious bodily injury.
When officers arrived at the scene of the collision, they found Root wedged in the driver’s seat of his car. Officers noted that Root had bloodshot watery eyes, slurred speech, and an odor of intoxicants coming from his person. Root was the only occupant of his vehicle, and an 18-pack of beer was located on the front passenger floorboard. A blood draw, which was conducted at the hospital about four hours after the collision, showed Root’s blood alcohol level as .10 at that time, which is over the legal limit. In an interview with law enforcement, Root admitted to drinking that day at a softball tournament and a bar. Root also claimed that he did not recall the details of the crash.
“As a result of Mr. Root’s dangerous actions, two individuals were killed and countless others will never be the same,” stated U.S. Attorney Waldref. “Our hearts go out to the victims and their loved ones. No sentence will heal the pain caused by Mr. Root’s reckless act of driving while intoxicated. Our communities deserve better, and that is why my office will continue to hold those who engage in criminally reckless actions accountable.”
“This tragedy would have never happened had Mr. Root acted responsibly,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle field office. “Instead, his decision to drive while intoxicated caused two people to lose their lives, others to suffer serious injuries, and families and loved ones to face agonizing loss from a preventable collision. We know this sentence will keep our communities safer and dissuade future drunk drivers from getting behind the wheel.”
This case was investigated by the Federal Bureau of Investigation, the Yakama Nation Police Department and the Yakima County Sheriff’s Office. The case was prosecuted by Michael Murphy, Assistant U.S. Attorney for the Eastern District of Washington.
1:22-CR-02063-MKD
Violent Fayetteville Fentanyl Trafficker Sentenced to 35 yearsRead the Press Release
NEW BERN, N.C. – A Fayetteville man was sentenced today to 420 months in prison for his role as the leader of a violent fentanyl, cocaine, and heroin trafficking organization. On January 11, 2023, Naji Michael Johnson, age 45, pled guilty to fentanyl conspiracy and fentanyl distribution charges.
“Naji Johnson used guns, violence, and intimidation to advance his drug trafficking enterprise in Fayetteville for 15 years, pushing kilogram quantities of cocaine, heroin, and fentanyl into our communities,” said U.S. Attorney Michael Easley. “Today, the community saw justice done. Drug traffickers should see this 35 year sentence as a warning. Partnerships between local and federal law enforcement are stronger than ever, and we are determined to keep North Carolina safe. Our friends, neighbors, and families deserve no less.”
"The sentencing of Naji Johnson supports the Fayetteville Police Department's commitment and goal of keeping the City of Fayetteville safe and secure,” said Fayetteville Police Chief Kem Braden. “Naji Johnson was a career criminal responsible for numerous violent crimes in our community. The Fayetteville Police Department appreciates the hard work of the Federal, State, and local agencies responsible for removing a violent, career criminal from our community. The sentencing of Naji Johnson sends a clear message to other would-be criminals that violence within our City will not be tolerated."
“There is often a direct link between those trafficking drugs into our communities and those committing violent crimes,” said ATF Special Agent in Charge Bennie Mims. “Disrupting these dangerous drug trafficking networks has an immediate and significant role in decreasing violent gun crime.”
According to court documents and other information presented in court, various law enforcement agencies in the Fayetteville area have received statements from individuals throughout the last decade indicating that Johnson was a kilogram level supplier of cocaine, crack, heroin, and fentanyl in Cumberland County. Information compiled throughout the investigation revealed that between late 2018 and his federal arrest in August 2022, Johnson was responsible for distributing over 19,000 grams of fentanyl, which is enough fentanyl to create over 950,000 doses.
The investigation also revealed that Johnson utilized firearms and violence to maintain his position at the top of the Fayetteville drug trafficking hierarchy. Investigators received numerous accounts indicating that Johnson routinely robbed other area drug dealers. Investigators also received statements indicating that Johnson was involved in multiple murders stemming from drug trafficking activity, and that Johnson kidnapped another drug dealer to collect drugs and drug proceeds as ransom. Johnson also possessed a firearm during two separate controlled purchases of fentanyl that were conducted in 2022 as part of the investigation.
The investigation into Johnson was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fayetteville Police Department, the Federal Bureau of Investigation, and the Drug Enforcement Administration investigated the case and Assistant U.S. Attorney Caroline Webb prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-00195-FL-1 .
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United Bank of Michigan Senior Vice President Sentenced for Embezzlement and Tax EvasionRead the Press Release
John Figg embezzled approximately $870,000 between 2014 and 2021
GRAND RAPIDS, MICHIGAN — U.S. Attorney for the Western District of Michigan Mark Totten today announced the sentencing of a former United Bank of Michigan senior vice president for embezzlement and tax evasion. John Figg, 56, of Grand Rapids, was sentenced to a prison term of 41 months followed by 36 months of supervised release by U.S. District Judge Paul L. Maloney. Figg was also ordered to pay restitution of $870,000 to United Bank of Michigan and $146,300 to the Internal Revenue Service.
“We trust our financial institutions to be wise stewards of our savings,” said U.S. Attorney Totten. “Figg pilfered funds entrusted to him as a bank official and broke both the law and the public’s trust. He must now deal with the consequences of his embezzlement and tax evasion.”
This criminal case stems from the discovery of Figg’s embezzlement of over $870,000 from United Bank of Michigan between 2014 and 2021. At the time, he was a senior vice president of the bank. According to court documents, Figg used his access to bank records to obtain funds in a variety of ways. First, he identified customer accounts held by depositors who did not scrutinize their accounts and used his access to them to remove funds for his own use. Second, he obtained phony loans in customer names and used the loan proceeds for his own use. Third, he funneled fees normally collected by the bank in connection with loan closing costs to his own use. This resulted in losses of approximately $870,000.
Figg generated taxable income from this activity between 2016 and 2020. However, he concealed this income from his tax preparer when that person prepared his tax returns. As a result, each year Figg underreported his taxable income knowing that it was subject to taxation and with the intent to avoid payment of those taxes.
Figg was charged with bank embezzlement in violation of Title 18, United States Code, Section 656. This carries a maximum penalty of 30 years in prison. He was also charged with tax evasion in violation of Title 26, United States Code, Section 7201, which carries a maximum prison term of five years in prison. Figg pled guilty to these charges in March 2023.
“The IRS, along with our law enforcement partners, will vigorously pursue those who use their position of trust to victimize clients and violate the law,” said Charles Miller, Special Agent in Charge of IRS Criminal Investigation, Detroit Field Office. “Today’s sentence demonstrates the government’s determination to restore and ensure that trust.”
"Mr. Figg engaged in illegal conduct that has the potential to undermine the financial health of banks and credit unions," said Devin J. Kowalski, Acting Special Agent in Charge of the FBI in Michigan. "Today's sentence sends a message to any corrupt bank employee that the combined efforts of the FBI and IRS will ensure they are held fully accountable for their crimes."
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service. Prosecution of the case is assigned to Assistant United States Attorney Timothy VerHey.
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