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29 June 2023
Missouri Man Sentenced on Machine Gun ChargeRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Stephen N. Limbaugh Jr. on Wednesday sentenced a Dunklin County, Missouri man to two years in federal prison for selling a device that can convert a Glock pistol into a machine gun.
On Oct. 12, 2022, Cole Johnathan Campbell, now 22, of Kennett, Missouri, sold an auto sear, also known as a “Glock switch,” to a confidential informant working for the Bureau of Alcohol, Tobacco, Firearms and Explosives. The auto sear converts a semi-automatic Glock pistol into a fully automatic firearm. Glock switches alone, even if not attached to a firearm, are defined as a machine gun under federal law.
Campbell said he had removed the device from his own gun, knew it worked and had a video of it in operation. He also offered to sell more of the devices, his plea agreement says.
Campbell pleaded guilty in March to one felony count of unlawfully transferring a machine gun.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Timothy Willis prosecuted the case.
Member of White Supremacist Group Charged for Allegedly Defacing Synagogue with Neo-Nazi SymbolsRead the Press Release
A Michigan man was indicted for conspiring with others and allegedly defacing Temple Jacob – a Jewish synagogue in Hancock, Michigan.
According to the court documents, Nathan Weeden, 23, of Houghton, and co-conspirators Richard Tobin, of New Jersey, and Yousef Barasneh, of Wisconsin defaced Temple Jacob with swastikas and symbols associated with The Base, a multi-state, white supremacist group.
In September 2019, Weeden, Tobin, and Barasneh – all members of The Base – allegedly used an encrypted messaging platform to discuss vandalizing property associated with African Americans and Jewish Americans. Weeden and his co-conspirators dubbed their plan, “Operation Kristallnacht,” which in German means “Night of Broken Glass” and is in reference to the events that took place on Nov. 9 – 10, 1938, in which Nazis murdered Jewish people and burned and destroyed their homes, synagogues, schools and places of business. Weeden allegedly carried out this plan on Sept. 21, 2019, when he spray-painted swastikas and symbols associated with The Base on the outside walls of Temple Jacob.
Weeden is charged with one count of conspiracy against rights and one count of damage to religious property. Weeden faces a maximum penalty of 10 years in prison and a $250,000 fine and a maximum penalty of one year in prison and a $100,000 fine, respectively. Weeden was arrested on June 29.
The FBI investigated the case, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Hancock Police Department.
Assistant U.S. Attorney Nils Kessler for the Western District of Michigan and Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Weeden IndictmentMember of White Supremacist Group Charged for Allegedly Defacing Synagogue with Neo-Nazi SymbolsRead the Press Release
Defendant, a Member of “The Base,” Allegedly Painted Swastikas and Other Symbols on Temple Jacob in Hancock, Michigan
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten for the Western District of Michigan today announced the indictment of Nathan Weeden, 23, of Houghton, Michigan for conspiring with others and allegedly defacing Temple Jacob – a Jewish synagogue in Hancock, Michigan – with swastikas and symbols associated with The Base, a multi-state, white supremacist group.
“We are fully prepared to make our case against Mr. Weeden,” said U.S. Attorney Mark Totten. “No one should be the target of hate because of their race, ethnicity, religion, or any other status. When hateful words become hateful acts, in violation of federal civil rights laws, my office will use every tool we have to protect the public and ensure accountability. With the rise of antisemitism across the United States and here in Michigan, everyone must do their part to stand united against hate.”
VIDEO MESSAGE: U.S. Attorney Mark Totten
In the attached indictment issued against Weeden, along with other public documents filed in cases against alleged co-conspirators Richard Tobin of New Jersey (see here and here) and Yousef Barasneh of Wisconsin (see here and here), support the following allegations.
According to the indictment, in September 2019, Weeden, Tobin, and Barasneh – all members of The Base, a multi-state, white supremacist organization – allegedly used an encrypted messaging platform to discuss vandalizing property associated with African Americans and Jewish Americans. Weeden and his co-conspirators dubbed their plan, “Operation Kristallnacht,” which in German means “Night of Broken Glass” and is in reference to the events that took place on November 9th and 10th of 1938 in which Nazis murdered Jewish people and burned and destroyed their homes, synagogues, schools, and places of business. The indictment alleges that Weeden carried out this plan on September 21, 2019, when he spray-painted swastikas and symbols associated with The Base on the outside walls of Temple Jacob.
Weeden is charged with two counts. The first count is for Conspiracy Against Rights under 18 U.S.C. § 241, a civil rights statute that makes it a crime to conspire to injure, oppress, threaten, or intimidate any person in the exercise of their rights. The maximum penalty under this statute is 10 years imprisonment and a $250,000 fine. The second count is for Damage to Religious Property under 18 U.S.C. § 247, also a civil rights statute that makes it a crime to intentionally deface, damage, or destroy religious property because of the race or ethnic characteristics of individuals associated with that religious property. The maximum penalty under this statute is 1 year imprisonment and a $100,000 fine.
“The FBI will not tolerate crimes motivated by hate, which are meant to intimidate and isolate the targeted groups,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “People of all faiths deserve to feel safe in their communities and this office, in close collaboration with our law enforcement partners, will aggressively pursue these types of cases to ensure there are consequences for crimes like those alleged in this indictment.”
The grand jury issued its two-count indictment against Nathan Weeden on June 27, 2023. The indictment was unsealed on June 29, 2023, after the defendant was arrested by the FBI. He remains in custody at this time. The court will schedule Weeden’s arraignment, detention hearing, and trial at a later date.
This case is being prosecuted by Assistant U.S. Attorney Nils Kessler and Trial Attorney Eric Peffley of the Civil Rights Division’s Criminal Section. It is being investigated by the FBI with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives and Hancock Police Department.
The charges in an indictment are merely accusations, and a defendant is presumed innocent until and unless proven guilty in a court of law.
Click here to view a copy of the indictment.
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Medford Contractor Charged with Tax Evasion and Filing False Loan ApplicationsRead the Press Release
BOSTON – The owner of a local excavation and plowing company has been charged and has agreed to plead guilty in connection with a multi-year scheme to underreport income on his tax returns and to obtain loans based on false loan applications.
Peter Tufts, 55, of Medford, has agreed to plead guilty to one count of tax evasion and two counts of submitting false loan applications. A plea hearing has not yet been scheduled by the Court.
According to the charging document, Tufts, the owner of Tufts Construction, Inc. underreported income on his corporate and personal tax returns for tax years 2015 through 2021, resulting in an income tax loss of more than $465,000. In addition, Tufts used the proceeds of his income tax evasion scheme to fund an off-the-books cash payroll that Tufts used to avoid employment taxes, causing a payroll tax loss of more than $539,000.
It is further alleged that, while perpetrating his tax evasion scheme, Tufts obtained loans from a local community bank and from the Small Business Administration (SBA) based on false loan applications. In his loan applications, and associated loan documents, Tufts falsely told the bank and the SBA that he had never declared bankruptcy, owed no back taxes, and was not involved in litigation. In fact, as alleged, Tufts was involved in ongoing bankruptcy proceedings when he obtained his loans and was engaging in a multi-year income and employment tax evasion scheme.
The charge of tax evasion provides for a sentence of up to five years in prison, up to three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of false loan applications provides for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of $1 million 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.
Acting United States Attorney Joshua S. Levy; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Ketty Larco-Ward, Inspector in Charge of the United States Postal Inspection Service in Boston made the announcement today. The United States Postal Inspection Service, Office of the Inspector General; the United States Department of Labor, Office of Inspector General; the Massachusetts Department of Revenue, Criminal Investigations Bureau; and the Massachusetts Office of the Inspector General provided valuable assistance. Assistant U.S. Attorney Kriss Basil of Levy’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Maryland U.S. Attorney Erek L. Barron Announces Results of Strategies to Reduce Violent CrimeRead the Press Release
Baltimore, Maryland – Erek L. Barron, United States Attorney for the District of Maryland, announced today that, because of the crime reduction efforts led by his office, homicides and non-fatal shootings in Baltimore are continuing to trend down significantly. As of the half year mark in 2023, homicides are down 22.2% and non-fatal shootings are down 12.6%.
At a press conference on August 24, 2022, U.S. Attorney Barron announced the establishment of a new Violent and Organized Crime Section along with expanded collaboration between federal, state, and local law enforcement. State funds supported the hiring of additional Special Assistant U.S. Attorneys, whose sole focus has been on violent crime, along with investigators, and other legal support personnel. Additionally, U.S. Attorney Barron has encouraged prosecutors to use all available resources and any legal means necessary to investigate and prosecute repeat violent offenders—specifically for any wrongdoing that meets office priorities, especially pandemic-related fraud, and utilizing a federal school zone statute that makes it a crime to possess a gun within 1000 feet of a school.
In August 2022, immediately before implementation of the U.S. Attorney’s Office’s collaborative violent crime strategy, homicides were up approximately 7% and nonfatal shootings were up more than 12%; the next month (September 2022), however, saw a record-low since 2015 in violence and, since implementation of the office’s strategy, homicides are down approximately 20% and nonfatal shootings are down approximately 10%.
“We have much more work to do, but law enforcement and community collaboration, innovation, and evidence-based initiatives are making neighborhoods safer,” said U.S. Attorney Barron. “We will continue to lead a coalition of law enforcement, community and public service partners, as our model of working together at the local, state and federal levels is making a difference in the fight against violent crime.”
Since September 2022, State-funded Special Assistant United States Attorneys have indicted 30 defendants for federal gun crimes, including charging 10 defendants for illegal possession of a firearm within 1,000 feet of Baltimore schools, including Sandtown-Winchester Achievement Academy, Calverton Elementary and Middle School, Green Street Academy, Frederick Elementary School, Cherry Hill Elementary School, Maree G. Faring Elementary School, Curtis Bay Elementary and Middle School and Belaire-Edison Elementary School. Of those school zone defendants nine have pleaded guilty and seven have been sentenced to between six months and 12 years in federal prison. Additionally, every Criminal Division prosecutor in the U.S. Attorney’s Office has been assigned a gun case, marking the most significant officewide investment in combating violent crime in the office’s history.
The office’s “Al Capone” prosecution model for repeat offenders has also been successful in the violent crime strategy. For example, defendants have been charged with CARES Act fraud and gun crimes, including the illegal possession of privately manufactured firearms, often referred to as “ghost guns.” The U.S. Attorney’s Office created a CARES Act Strike Force and, as part of that effort, U.S. Department of Labor - Office of Inspector General Special Agents are now co-located in the office to coordinate and screen all new violent crime and illegal firearms defendants for potential pandemic fraud. The success of this Strike Force’s effort has led U.S. Attorney Barron to also establish the Maryland Financial Intelligence Task Force (“MD FIT”), a coalition of federal, state, and local law enforcement and financial institutions, working collaboratively to uncover financial crimes, including crimes committed by violent repeat offenders.
U.S. Attorney Barron stated, “MD FIT is another tool to add to our arsenal of proactive and innovative measures to combat violent crime. We will do everything we can to remove the violent criminals who wreak havoc in our neighborhoods. I am grateful that our law enforcement partners joined our office’s strategy to try new and innovative ways to reduce violent crime.”
While strategic enforcement is key to U.S. Attorney’s Office’s violent crime efforts, community-based prevention and intervention is a core principle—embraced more than ever—by the office. The U.S. Department of Justice and the U.S. Attorney’s Office are especially supporting and teaming up with nonprofits focused on reaching at-risk youth and young adults.
In September 2022, three Baltimore community-based organizations, ROCA Inc., the Living Classrooms Foundation, and the Black Mental Health Alliance, were awarded U.S. Department of Justice grants totaling more than $5 million to help reduce gun crime and other violence. ROCA Baltimore received $1,998,807 to expand its violence intervention programming and the U.S. Attorney’s Office has instituted monthly community walks with ROCA to reach out to youth and young adults to provide resources and needed services. Since November 2022, this collaboration has directly serviced over 130 individuals and approximately 20 young people have been referred for services, including the job training and education services provided by ROCA.
Since September, the office has also sponsored or cosponsored a variety of other community-based violence intervention and prevention initiatives as part of a comprehensive strategy. Six reentry resource fairs, focused on federal returning citizens and those soon to return, have provided healthcare assistance, employment opportunities, financial literacy services, and more. The office has also participated in multiple meetings with community leaders and serious at-risk individuals, to encourage potential reoffenders to take a better path to success. Additionally, since last November, U.S. Attorney Barron, along with leadership from the Maryland Department of Public Safety and Correctional Services, have participated in “knock and talk” home visits of parolees with teams of probation officers and social workers, to provide resources and services to parolees and their families.
These efforts are part of Project Safe Neighborhood Program (“PSN”), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN combines federal, state, and local law enforcement partners, and community service providers to reduce violent crime and make our neighborhoods safer for everyone. The office is working comprehensively to build trust and collaboration between law enforcement and the community, to support community-based intervention and prevention, and to strategically enforce the law against those most responsible for the violence in our communities.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Marine Corps Lance Corporal Sentenced to More Than 15 Years in Federal Prison for Attempting to Entice A 13-Year-Old Child to Produce and Send Him Sexually Explicit Photos of HerselfRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced David Wayne Hogle, Jr. (30, Cherry Point, NC) to 15 years and 10 months in federal prison for attempting to entice an individual whom he believed was a 13-year-old child to produce sexually explicit photos of herself and send them to him over the internet. Hogle was also ordered to serve a lifetime term of supervised release, pay $26,500 in restitution to child victims, forfeit his electronic devices, and register as a sex offender. Hogle was arrested on July 29, 2022, at Marine Corps Air Station (MCAS) Cherry Point in North Carolina and was transported to Jacksonville for prosecution. Hogle had pleaded guilty on March 23, 2023.
According to court documents, on July 13, 2022, an FBI agent in Jacksonville began an undercover investigation to identify individuals who were using the internet to engage in the sexual exploitation of children. This FBI agent (UC) posted a message in a public chat room on a particular social media application (“app”) posing as the “mother” of a 13-year-old child. Using the screen name “Kaligula,” Hogle responded, “Interested in domination, degrading, breeding, inc’est, and very young girls.” When asked about his age preference for children, Hogle responded, “No lower age limit.” The UC explained that her daughter was 13 years old, and Hogle replied, “Typically [I] like younger …” After exchanging phone numbers, Hogle texted the UC, “So when do I get to see … your daughter?” Hogle sent the UC a hyperlink to a cloud storage account that contained 28 photos of infants and toddler-aged children being sexually abused.
Two days later, Hogle texted the UC, who was also portraying the “child.” Hogle typed, “I understand your only 13, so there is going to be a lot of things you still need to learn. I [am] happy to teach you about them.” Hogle then requested that the “child” take a “naughty pic” of “her” genitalia for him. The following day, Hogle texted the “child,” asking again for an explicit photo of “her.” To demonstrate what kind of picture that he wanted the “child” to take, Hogle sent the “child” a photo of his own genitalia.
The FBI and the Naval Criminal Investigative Service (NCIS) confirmed that Hogle was a Lance Corporal in the United States Marine Corps stationed at MCAS Cherry Point. Hogle accessed the internet during his online conversations with the UC while onboard MCAS Cherry Point.
On July 29, 2022, Hogle was arrested by FBI agents onboard MCAS Cherry Point. During an interview, Hogle admitted, among other things, that he had sent the UC a hyperlink containing child sexual abuse materials to show to the “child,” that he directed the “child” to take a picture of her “privates,” and that he was sexually interested in children. A search of Hogle’s computer revealed that it contained 162 images and 45 videos, many of which depicted infants, toddlers, and young children being sexually abused.
This case was investigated by the Federal Bureau of Investigation in Jacksonville, Florida and Greenville, North Carolina, and the Naval Criminal Investigative Service. It was prosecuted by Assistant United States Attorney D. Rodney Brown. Assistant United States Attorney Mai Tran handled the forfeiture of Hogle’s electronic devices.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Man admits making harassing calls to African American woman employed at Billings churchRead the Press Release
BILLINGS — A man accused of making harassing telephone calls to African American woman who works at a Billings church and provided him assistance admitted to charges today, U.S. Attorney Jesse Laslovich said.
Joshua Leon Hiestand, 41, a transient, pleaded guilty to harassing telephone calls, a felony. Hiestand faces a maximum of two years imprisonment, a $250,000 fine and one year of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Oct. 26. Hiestand was detained pending further proceedings.
In court documents, the government alleged that on Nov. 12, 2020, a white male, who identified himself as Leon Hiestand, went to a church in Billings looking for assistance. Jane Doe, an African American who works at the church, provided him with a gift card. Several days later, the church received a voicemail from a caller, who, using a derogatory term, stated that he would give more money to the church if it did not employ an African American. In Dec. 4, 2020, the church’s caller ID identified Hiestand as using the same number as in the voicemail. Jane Doe answered the phone, and the caller referenced his white friends and that he would have given more money if the church did not employ a black pastor. Hiestand left another voicemail that stated, “Nobody wants you here.” In January 2021, Hiestand left a voicemail and referenced the African American receptionist at the church. Jane Doe contacted the Billings Police Department. An officer contacted the number dialed to the church in January, and the caller identified himself as Hiestand. Hiestand then changed his name later in the conversation. Hiestand admitted to leaving the voicemails and apologized for his behavior. The officer advised Hiestand not to have further contact with the church.
Hiestand then left another voicemail in which he appeared upset and apologized for the previous calls. However, over the next 19 months, Hiestand called and left a series of voicemails at the church that, at times, were threatening and racially hostile. The investigation determined that Hiestand placed the calls from outside of Montana.
Assistant U.S. Attorney Zeno B. Baucus is prosecuting the case. The FBI and Billings Police Department conducted the investigation.
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Los Angeles Resident Indicted on Conspiracy to Commit Health Care Fraud ChargeRead the Press Release
PITTSBURGH, PA - A resident of Los Angeles, California, has been indicted by a federal grand jury in Pittsburgh on a charge of conspiring to commit health care fraud, United States Attorney Eric G. Olshan announced today.
The one-count Indictment named Seyed Hamed Razavi Rahmani, also known as Hamed Ramni, age 39, who resides in Los Angeles, California, as the sole defendant.
According to the indictment presented to the court, Rahmani was part of the Insure Nutrition enterprise that provided bariatric patients with free nutritional shakes as an inducement to get patients’ medical insurance information in order to market expensive medications that were of questionable medical value to those patients. In the process, Insure Nutrition gained access to the purchasers’ personal information and insurance coverage, thereby allowing them to bill insurance companies for these products. As a part of the scheme in which Rahmani was an active participant, Insure Nutrition did not collect co-payments on the excessively expensive medications and fabricated procedures to mislead auditors concerning the critical issue of co-payments.
Pursuant to previous Indictments associated with this scheme, other defendants who have entered guilty pleas have forfeited more than $54,000,000 in fraudulent proceeds that have been sent to the victim insurance carriers as partial reimbursement for losses they sustained.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The FBI conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Las Vegas Man Sentenced to Federal Prison for Stealing Hundreds of Thousands of Dollars in Change from Coin-Cashing MachinesRead the Press Release
PORTLAND, Ore.—A Las Vegas man was sentenced to federal prison Thursday for impersonating an employee of a coin-cashing company to steal hundreds of thousands of dollars in change from coin-cashing machines in multiple states.
Richard Anthony Pena, 34, was sentenced to 48 months in federal prison and three years’ supervised release. Pena was also ordered to pay approximately $582,000 in restitution.
According to court documents, from approximately January 1, 2021, and continuing until his arrest on December 22, 2021, in Clark County, Washington, Pena engaged in an elaborate scheme to steal hundreds of thousands of dollars in change from coin-cashing machines located in grocery stores and other commercial establishments in multiple states.
To carry out his scheme, Pena would disguise himself as an employee of a coin-cashing company, walk into various stores, act as if he was servicing the location’s coin-cashing machine, break into the machine, and walk out with the machine’s coin vault. Pena’s repeated this ruse dozens of times in stores en route from his home in Las Vegas to a grocery store in Vancouver, Washington where an alert employee observed Pena and notified law enforcement.
After his arrest, sheriff deputies from Clark County, Washington searched Pena’s rented vehicles and local hotel room. They located clothing Pena wore to disguise himself, tools he used to break into the coin-chasing machines, and laundry baskets and bags filled with millions of coins. Investigators seized approximately 1.5 million stolen coins totaling more than $133,000. In total, Pena cost his victim coin-cashing company more than $715,000 in losses and damage to coin-cashing machines.
On March 10, 2022, a federal grand jury in Portland returned an indictment charging Pena with conspiring with others to transport and transporting stolen money. On March 10, 2023, he pleaded guilty to the conspiracy charge.
This case was investigated by the FBI and Clark County (Washington) Sheriff’s Office. It was prosecuted by Quinn P. Harrington, Assistant U.S. Attorney for the District of Oregon.
Kansas Man Charged for Stealing from U.S. GovernmentRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging a Kansas man on two counts of theft of government money or property, and one count of engaging in illegal monetary transactions.
According to court documents, Jack Crowder, 34, of Wichita is accused of stealing $17,688.00 from the U.S. Department of Labor on September 7, 2022, and $5,412.00 from the U.S. Department of Labor on September 8, 2022.
The defendant made his initial court appearance on June 28, 2023, before U.S. Magistrate Judge Gwynne E. Birzer of the U.S. District Court for the District of Kansas.
The IRS- Criminal Investigation is investigating the case.
Assistant U.S. Attorneys Deb Barnett and Ola Odeyemi are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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KC Tax Preparer Pleads Guilty to Filing False Tax ReturnsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., tax preparer pleaded guilty in federal court today to filing false tax returns.
Godwin Omoregie, 71, waived his right to a grand jury and pleaded guilty before U.S. District Judge Roseann Ketchmark to a federal information that charges him with one count of aiding and assisting in the preparation and filing of a false and fraudulent tax return and one count of filing a false tax return.
Omoregie owned and operated Quality Property Management and Tax Services, an income tax return preparation business located in Raytown, from 2012 through 2022.
By pleading guilty today, Omoregie admitted that he prepared federal income tax returns that contained materially false and fraudulent items for at least 10 individuals, resulting in at least 42 false income tax returns from 2017 through 2021. By including fraudulent items on his client’s tax returns, Omoregie was able to manufacture substantial refunds to his clients that they would not have been entitled to if the returns had been accurately prepared. The tax loss associated with those false returns is approximately $178,702.
Omoregie also admitted that he filed a federal income tax return in March 2022, which did not include at least $20,883 from his tax preparation business. The total tax loss associated with Omoregie’s false returns from tax year 2017 through 2021 totaled $62,891.
Under federal statutes, Omoregie is subject to a sentence of up to six years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by IRS-Criminal Investigation.
Justice Department Opens Application Period for Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
The Justice Department is pleased to announce the opening of the application period for federally recognized Tribes and intertribal consortia to participate in the Tribal Access Program (TAP) for National Crime Information, which improves public safety by providing federally recognized Tribes the ability to access and exchange data with national crime information databases for authorized criminal justice and non-criminal justice purposes, such as the FBI’s National Instant Criminal Background Check System (NICS).
“To improve public safety in Indian country, we must break down the barriers to criminal justice information that Tribal communities have faced for years,” said Attorney General Merrick B. Garland. “That is why the Justice Department is expanding Tribal communities’ access to national crime databases that enhance law enforcement efforts and coordination through the Tribal Access Program.”
“The Tribal Access Program has strengthened Tribal criminal justice agencies,” said Deputy Attorney General Lisa O. Monaco. “By using TAP, participating Tribes have shared information about missing persons, apprehended fugitives, registered sex offenders, enforced protection orders, and have made hundreds of entries into the FBI’s NICS Indices database to prevent prohibited persons from illegally obtaining access to firearms. The efficient and effective sharing of criminal justice information has improved public safety in Indian country and beyond.”
“The Justice Department is committed to supporting Tribal law enforcement and protecting Tribal communities,” said Associate Attorney General Vanita Gupta. “TAP empowers participating Tribes to take advantage of information from across the country to better investigate and prosecute crime, carry out background checks for potential foster parents, and keep their communities safe and secure from domestic violence and child abuse.”
The program provides training as well as a web-based application and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI’s Criminal Justice Information Services (CJIS) systems. There are currently 123 federally recognized Tribes participating in TAP. The Department will accept TAP applications from July 3 to Sept. 1. Tribes selected to participate will be notified later in September.
“The TAP program has allowed the Poarch Creek Tribal Police Department to have cost-effective access to the National Crime Information Center (NCIC) system,” said Chief Chris Rutherford of the Poarch Creek Tribal Police. “Now our officers have full NCIC access from their patrol vehicles, desk, or through our Emergency Tribal Dispatch Center. The value of this program to our reservation far exceeds the minimal effort required to be a participating partner in the TAP program.”
For Tribes that are considering applying, TAP staff will be conducting informational webinars describing the program and its capabilities. Webinars will be offered throughout July and August. For more information about TAP, including webinar dates, times, and access information, visit www.justice.gov/tribal/tribal-access-program-tap.
Using TAP, Tribes have shared information about missing persons; entered domestic violence orders of protection for nationwide enforcement; registered convicted sex offenders; run criminal histories; located fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
“We cannot say enough about the efforts that have been made to get the Kickapoo Traditional Tribe of Texas (KTTT) ready for this program,” said Director Cristina Collett-Jensen of the Kickapoo Traditional Tribe of Texas Legal Department. “Through these efforts, KTTT will have access to information that will substantially improve the KTTT Police Department’s operations, and thereby allow us to better protect and serve the KTTT community.”
The Department offers TAP services through one of the following two methods:
- TAP-LIGHT: Provides application that enables full access (both query and entry capabilities) to national crime information databases including the NCIC, the Interstate Identification Index, and the International Justice and Public Safety Network for criminal justice purposes.
- TAP-FULL: In addition to the basic access capabilities of TAP-LIGHT, provides a kiosk workstation that enables the ability to submit and query fingerprint-based transactions via FBI’s Next Generation Identification system for both criminal justice and non-criminal justice purposes.
Because of the program’s funding sources, eligible Tribes must have — and agree to use TAP for — at least one of the following:
- A Tribal sex offender registry authorized by the Adam Walsh Child Protection and Safety Act,
- A Tribal law enforcement agency that has arrest powers,
- A Tribal court that issues orders of protection, or
- A Tribal government agency that screens individuals for foster care placement or that investigates allegations of child abuse/neglect.
TAP is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking; the Office of Community Oriented Policing Services; the Office for Victims of Crime; and the Office on Violence Against Women. TAP is co-managed by the Department’s Office of the Chief Information Officer and Office of Tribal Justice.
Justice Department Opens Application Period for Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
Washington: The Justice Department is pleased to announce the opening of the application period for federally recognized Tribes and intertribal consortia to participate in the Tribal Access Program (TAP) for National Crime Information, which improves public safety by providing federally recognized Tribes the ability to access and exchange data with national crime information databases for authorized criminal justice and non-criminal justice purposes, such as the FBI’s National Instant Criminal Background Check System (NICS).
“To improve public safety in Indian country, we must break down the barriers to criminal justice information that Tribal communities have faced for years,” said Attorney General Merrick B. Garland. “That is why the Justice Department is expanding Tribal communities’ access to national crime databases that enhance law enforcement efforts and coordination through the Tribal Access Program.”
“The Tribal Access Program has strengthened Tribal criminal justice agencies,” said Deputy Attorney General Lisa O. Monaco. “By using TAP, participating Tribes have shared information about missing persons, apprehended fugitives, registered sex offenders, enforced protection orders, and have made hundreds of entries into the FBI’s NICS Indices database to prevent prohibited persons from illegally obtaining access to firearms. The efficient and effective sharing of criminal justice information has improved public safety in Indian country and beyond.”
“Information is power, and TAP is a way to put information in the hands of tribes and their law enforcement partners to keep people safe,” United States Attorney, District of North Dakota, Mac Schneider said. “The U.S. Attorney’s Office is committed to working closely with our tribal partners to increase public safety in Indian Country.”
“The Justice Department is committed to supporting Tribal law enforcement and protecting Tribal communities,” said Associate Attorney General Vanita Gupta. “TAP empowers participating Tribes to take advantage of information from across the country to better investigate and prosecute crime, carry out background checks for potential foster parents, and keep their communities safe and secure from domestic violence and child abuse.”
The program provides training as well as a web-based application and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI’s Criminal Justice Information Services (CJIS) systems. There are currently 123 federally recognized Tribes participating in TAP. The Department will accept TAP applications from July 3 to Sept. 1. Tribes selected to participate will be notified later in September.
“The TAP program has allowed the Poarch Creek Tribal Police Department to have cost-effective access to the National Crime Information Center (NCIC) system,” said Chief Chris Rutherford of the Poarch Creek Tribal Police. “Now our officers have full NCIC access from their patrol vehicles, desk, or through our Emergency Tribal Dispatch Center. The value of this program to our reservation far exceeds the minimal effort required to be a participating partner in the TAP program.”
For Tribes that are considering applying, TAP staff will be conducting informational webinars describing the program and its capabilities. Webinars will be offered throughout July and August. For more information about TAP, including webinar dates, times, and access information, visit www.justice.gov/tribal/tribal-access-program-tap.
Using TAP, Tribes have shared information about missing persons; entered domestic violence orders of protection for nationwide enforcement; registered convicted sex offenders; run criminal histories; located fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
“We cannot say enough about the efforts that have been made to get the Kickapoo Traditional Tribe of Texas (KTTT) ready for this program,” said Director Cristina Collett-Jensen of the Kickapoo Traditional Tribe of Texas Legal Department. “Through these efforts, KTTT will have access to information that will substantially improve the KTTT Police Department’s operations, and thereby allow us to better protect and serve the KTTT community.”
The Department offers TAP services through one of the following two methods:
- TAP-LIGHT: Provides application that enables full access (both query and entry capabilities) to national crime information databases including the NCIC, the Interstate Identification Index, and the International Justice and Public Safety Network for criminal justice purposes.
- TAP-FULL: In addition to the basic access capabilities of TAP-LIGHT, provides a kiosk workstation that enables the ability to submit and query fingerprint-based transactions via FBI’s Next Generation Identification system for both criminal justice and non-criminal justice purposes.
Because of the program’s funding sources, eligible Tribes must have — and agree to use TAP for — at least one of the following:
- A Tribal sex offender registry authorized by the Adam Walsh Child Protection and Safety Act,
- A Tribal law enforcement agency that has arrest powers,
- A Tribal court that issues orders of protection, or
- A Tribal government agency that screens individuals for foster care placement or that investigates allegations of child abuse/neglect.
TAP is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking; the Office of Community Oriented Policing Services; the Office for Victims of Crime; and the Office on Violence Against Women. TAP is co-managed by the Department’s Office of the Chief Information Officer and Office of Tribal Justice.
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Justice Department Opens Application Period for Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
TULSA, Okla. – WASHINGTON – The Justice Department is pleased to announce the opening of the application period for federally recognized Tribes and intertribal consortia to participate in the Tribal Access Program (TAP) for National Crime Information, which improves public safety by providing federally recognized Tribes the ability to access and exchange data with national crime information databases for authorized criminal justice and non-criminal justice purposes, such as the FBI’s National Instant Criminal Background Check System (NICS).
“To improve public safety in Indian country, we must break down the barriers to criminal justice information that Tribal communities have faced for years,” said Attorney General Merrick B. Garland. “That is why the Justice Department is expanding Tribal communities’ access to national crime databases that enhance law enforcement efforts and coordination through the Tribal Access Program.”
“The Tribal Access Program has strengthened Tribal criminal justice agencies,” said Deputy Attorney General Lisa O. Monaco. “By using TAP, participating Tribes have shared information about missing persons, apprehended fugitives, registered sex offenders, enforced protection orders, and have made hundreds of entries into the FBI’s NICS Indices database to prevent prohibited persons from illegally obtaining access to firearms. The efficient and effective sharing of criminal justice information has improved public safety in Indian country and beyond.”
“The Justice Department is committed to supporting Tribal law enforcement and protecting Tribal communities,” said Associate Attorney General Vanita Gupta. “TAP empowers participating Tribes to take advantage of information from across the country to better investigate and prosecute crime, carry out background checks for potential foster parents, and keep their communities safe and secure from domestic violence and child abuse.”
The program provides training as well as a web-based application and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI’s Criminal Justice Information Services (CJIS) systems. There are currently 123 federally recognized Tribes participating in TAP. The Department will accept TAP applications from July 3 to Sept. 1. Tribes selected to participate will be notified later in September.
“The TAP program has allowed the Poarch Creek Tribal Police Department to have cost-effective access to the National Crime Information Center (NCIC) system,” said Chief Chris Rutherford of the Poarch Creek Tribal Police. “Now our officers have full NCIC access from their patrol vehicles, desk, or through our Emergency Tribal Dispatch Center. The value of this program to our reservation far exceeds the minimal effort required to be a participating partner in the TAP program.”
For Tribes that are considering applying, TAP staff will be conducting informational webinars describing the program and its capabilities. Webinars will be offered throughout July and August. For more information about TAP, including webinar dates, times, and access information, visit www.justice.gov/tribal/tribal-access-program-tap.
Using TAP, Tribes have shared information about missing persons; entered domestic violence orders of protection for nationwide enforcement; registered convicted sex offenders; run criminal histories; located fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
“We cannot say enough about the efforts that have been made to get the Kickapoo Traditional Tribe of Texas (KTTT) ready for this program,” said Director Cristina Collett-Jensen of the Kickapoo Traditional Tribe of Texas Legal Department. “Through these efforts, KTTT will have access to information that will substantially improve the KTTT Police Department’s operations, and thereby allow us to better protect and serve the KTTT community.”
The Department offers TAP services through one of the following two methods:
- TAP-LIGHT: Provides application that enables full access (both query and entry capabilities) to national crime information databases including the NCIC, the Interstate Identification Index, and the International Justice and Public Safety Network for criminal justice purposes.
- TAP-FULL: In addition to the basic access capabilities of TAP-LIGHT, provides a kiosk workstation that enables the ability to submit and query fingerprint-based transactions via FBI’s Next Generation Identification system for both criminal justice and non-criminal justice purposes.
Because of the program’s funding sources, eligible Tribes must have — and agree to use TAP for — at least one of the following:
- A Tribal sex offender registry authorized by the Adam Walsh Child Protection and Safety Act,
- A Tribal law enforcement agency that has arrest powers,
- A Tribal court that issues orders of protection, or
- A Tribal government agency that screens individuals for foster care placement or that investigates allegations of child abuse/neglect.
TAP is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking; the Office of Community Oriented Policing Services; the Office for Victims of Crime; and the Office on Violence Against Women. TAP is co-managed by the Department’s Office of the Chief Information Officer and Office of Tribal Justice.
Justice Department Opens Application Period for Program to Enhance Tribal Access to National Crime Information DatabasesRead the Press Release
WASHINGTON – The Justice Department is pleased to announce the opening of the application period for federally recognized Tribes and intertribal consortia to participate in the Tribal Access Program (TAP) for National Crime Information, which improves public safety by providing federally recognized Tribes the ability to access and exchange data with national crime information databases for authorized criminal justice and non-criminal justice purposes, such as the FBI’s National Instant Criminal Background Check System (NICS).
“To improve public safety in Indian country, we must break down the barriers to criminal justice information that Tribal communities have faced for years,” said Attorney General Merrick B. Garland. “That is why the Justice Department is expanding Tribal communities’ access to national crime databases that enhance law enforcement efforts and coordination through the Tribal Access Program.”
“The Tribal Access Program has strengthened Tribal criminal justice agencies,” said Deputy Attorney General Lisa O. Monaco. “By using TAP, participating Tribes have shared information about missing persons, apprehended fugitives, registered sex offenders, enforced protection orders, and have made hundreds of entries into the FBI’s NICS Indices database to prevent prohibited persons from illegally obtaining access to firearms. The efficient and effective sharing of criminal justice information has improved public safety in Indian country and beyond.”
“The Justice Department is committed to supporting Tribal law enforcement and protecting Tribal communities,” said Associate Attorney General Vanita Gupta. “TAP empowers participating Tribes to take advantage of information from across the country to better investigate and prosecute crime, carry out background checks for potential foster parents, and keep their communities safe and secure from domestic violence and child abuse.”
The program provides training as well as a web-based application and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI’s Criminal Justice Information Services (CJIS) systems. There are currently 123 federally recognized Tribes participating in TAP. The Department will accept TAP applications from July 3 to Sept. 1. Tribes selected to participate will be notified later in September.
“The TAP program has allowed the Poarch Creek Tribal Police Department to have cost-effective access to the National Crime Information Center (NCIC) system,” said Chief Chris Rutherford of the Poarch Creek Tribal Police. “Now our officers have full NCIC access from their patrol vehicles, desk, or through our Emergency Tribal Dispatch Center. The value of this program to our reservation far exceeds the minimal effort required to be a participating partner in the TAP program.”
For Tribes that are considering applying, TAP staff will be conducting informational webinars describing the program and its capabilities. Webinars will be offered throughout July and August. For more information about TAP, including webinar dates, times, and access information, visit www.justice.gov/tribal/tribal-access-program-tap.
Using TAP, Tribes have shared information about missing persons; entered domestic violence orders of protection for nationwide enforcement; registered convicted sex offenders; run criminal histories; located fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
“We cannot say enough about the efforts that have been made to get the Kickapoo Traditional Tribe of Texas (KTTT) ready for this program,” said Director Cristina Collett-Jensen of the Kickapoo Traditional Tribe of Texas Legal Department. “Through these efforts, KTTT will have access to information that will substantially improve the KTTT Police Department’s operations, and thereby allow us to better protect and serve the KTTT community.”
The Department offers TAP services through one of the following two methods:
- TAP-LIGHT: Provides application that enables full access (both query and entry capabilities) to national crime information databases including the NCIC, the Interstate Identification Index, and the International Justice and Public Safety Network for criminal justice purposes.
- TAP-FULL: In addition to the basic access capabilities of TAP-LIGHT, provides a kiosk workstation that enables the ability to submit and query fingerprint-based transactions via FBI’s Next Generation Identification system for both criminal justice and non-criminal justice purposes.
Because of the program’s funding sources, eligible Tribes must have — and agree to use TAP for — at least one of the following:
- A Tribal sex offender registry authorized by the Adam Walsh Child Protection and Safety Act,
- A Tribal law enforcement agency that has arrest powers,
- A Tribal court that issues orders of protection, or
- A Tribal government agency that screens individuals for foster care placement or that investigates allegations of child abuse/neglect.
TAP is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking; the Office of Community Oriented Policing Services; the Office for Victims of Crime; and the Office on Violence Against Women. TAP is co-managed by the Department’s Office of the Chief Information Officer and Office of Tribal Justice.
- TAP-LIGHT: Provides application that enables full access (both query and entry capabilities) to national crime information databases including the NCIC, the Interstate Identification Index, and the International Justice and Public Safety Network for criminal justice purposes.
Justice Department Launches Missing or Murdered Indigenous Persons Regional Outreach ProgramRead the Press Release
MINNEAPOLIS – The Department of Justice announced the creation of the Missing or Murdered Indigenous Persons (MMIP) Regional Outreach Program, which permanently places 10 attorneys and coordinators in five designated regions across the United States to aid in the prevention and response to missing or murdered Indigenous people.
“This new program mobilizes the Justice Department’s resources to combat the crisis of Missing or Murdered Indigenous Persons, which has shattered the lives of victims, their families, and entire Tribal communities.” said Attorney General Merrick B. Garland. “The Justice Department will continue to accelerate our efforts, in partnership with Tribes, to keep their communities safe and pursue justice for American Indian and Alaska Native families.”
“These new positions represent the Justice Department’s continuing commitment to addressing the MMIP crisis with urgency and all of the tools at our disposal,” said Deputy Attorney General Lisa O. Monaco. “MMIP prosecutors and coordinators will work with partners across jurisdictions and alongside the Tribal communities who have been most devastated by this epidemic.”
“These additional resources are a significant step toward strengthening our work with our Tribal communities,” said U.S. Attorney Andrew M. Luger. “One of these new MMIP Assistant U.S. Attorneys (AUSAs) will be placed in Minnesota. This position is in addition to four new AUSAs in our office that will focus on advancing public safety and engagement with our Tribal communities across Minnesota. For the first time, the U.S. Attorney’s Office for the District of Minnesota will have a dedicated section to support the needs of our Tribal communities.”
The MMIP regional program prioritizes MMIP cases consistent with the Deputy Attorney General’s July 2022 directive to United States Attorneys’ offices promoting public safety in Indian country. The program fulfills the Justice Department’s promise to dedicate new personnel to MMIP consistent with Executive Order 14053, Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People, and the Department’s Federal Law Enforcement Strategy to Prevent and respond to Violence Against American Indians and Alaska Natives, Including to Address Missing or Murdered Indigenous Persons issued in July 2022.
The national program will dedicate five MMIP Assistant U.S. Attorneys and five MMIP coordinators to provide specialized support to United States Attorneys’ offices across the country to address and combat the issues of MMIP. This support includes assisting in the investigation of unresolved MMIP cases and related crimes, and promoting communication, coordination, and collaboration among federal, Tribal, local, and state law enforcement and non-governmental partners on MMIP issues. The five regions include the Northwest, Southwest, Great Plains, Great Lakes, and Southeast Regions, and MMIP personnel will be located within host United States Attorneys’ offices in the Districts of Alaska, Arizona, Eastern Washington, Minnesota, New Mexico, Northern Oklahoma, Oregon, South Dakota, and Western Michigan. Programmatic support will be provided by the MMIP Regional Outreach Program Coordinator at the Executive Office for United States Attorneys.
“The Executive Office for United States Attorneys and the United States Attorney community are committed to preventing and responding to cases of missing or murdered Indigenous people. To that end, we will work together with all relevant federal, Tribal, state and local law enforcement partners to locate missing persons and solve crimes where they have occurred,” said Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson. “This new program will allow the Department to build upon the work done by individual United States Attorneys’ offices and ensure continued support to those offices by coordinating outreach regionally on MMIP matters.
More broadly, this MMIP Program will complement the work of the Justice Department’s National Native American Outreach Services Liaison, who is helping amplify the voice of crime victims in Indian country and their families as they navigate the federal criminal justice system. Further, the MMIP Program will liaise with and enhance the work of the Department’s Tribal Liaisons and Indian Country Assistant United States Attorneys throughout Indian Country, the Native American Issues Coordinator, and the National Indian Country Training Initiative Coordinator to ensure a comprehensive response to MMIP.
Joseph Dale Hale Sentenced to 25 Years for Possession of A Firearm and EscapeRead the Press Release
GREENEVILLE, Tenn. – On June 29, 2023, Joseph Dale Hale, 31, of Greeneville, Tennessee, was sentenced to 300 months’ imprisonment by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville. During the sentencing proceeding, Judge Corker found Hale to be an Armed Career Criminal based on his prior criminal history. Following his imprisonment, Hale will be on supervised release for five years.
As part of the plea agreement filed with the court, Hale agreed to plead guilty to possession of a firearm by a convicted felon, in violation of 18 U.S.C. § 922(g)(1) and escape from custody while confined for a felony offense, in violation of 18 U.S.C. § 751(a).
According to the filed plea agreement, on July 29, 2021, an officer with the Greeneville Police Department identified Hale as the operator of a stolen vehicle. When officers attempted to stop the vehicle, Hale fled. Eventually, Hale stopped in the area of North Hill Street in Greeneville. When he exited the vehicle, he fired three rounds at the officers and then fled on foot into the nearby woods. Local, state, and federal law enforcement officers assisted in a search for Hale, who was located and apprehended later that day. Law enforcement recovered the firearm Hale used to shoot at the police officers, which contained ammunition that matched casings found at the scene of the shooting. Hale was indicted federally and ordered detained for the felony offense of possessing a firearm after being convicted of a felony offense.
On October 7, 2021, while being housed in the Greene County Detention Center, Hale, assisted by another inmate, obtained a set of trustee clothes. Hale then used a ruse to be removed from his cell to a shower area, then donned the trustee clothes. He was then able to get access through two security doors and gained access to an unsecured area of the jail. Once outside, he fled the jail and stole a vehicle. He was apprehended by law enforcement later that day after crashing the vehicle.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The criminal indictment was the result of an investigation by the Greeneville Police Department, Greene County Sheriff’s Office, Tennessee Bureau of Investigation, United States Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). This investigation was led by ATF Special Agent Bryan Williams.
Assistant United States Attorneys B. Todd Martin and Luke McLauren represented the United States.
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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Illinois Man Sentenced to 37 Months in PrisonRead the Press Release
HAMMOND- Darius Dudley, 30 years old, of Chicago, Illinois, was sentenced by United States District Court Judge Jon E. DeGuilio after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Dudley was sentenced to 37 months in prison followed by 2 years of supervised release
According to documents in the case, in July 2021, law enforcement responded to shots fired call in the 4800 block of Northcote Avenue in East Chicago, Indiana. Upon arrival, Dudley was observed in possession of a semi-automatic pistol. The pistol had an extended magazine and a machinegun conversion device attached to it. The machinegun conversion made the pistol capable of firing multiple shots with a single pull of the trigger. Dudley’s criminal history revealed that he has prior felony convictions for burglary, manufacture/delivery of a controlled substance, and being a felon in possession of a firearm, and as such is prohibited from possessing the firearm in this case.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force and the East Chicago Police Department. This case was prosecuted by Assistant United States Attorney Michael J. Toth.
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.
Houstonian sent to prison for supporting terrorismRead the Press Release
HOUSTON – A 23-year-old U.S. citizen from Houston has been ordered to federal prison for attempting to provide material support to Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, announced U.S. Attorney Alamdar S. Hamdani and Assistant Attorney General for National Security Matthew G. Olsen.
Kaan Sercan Damlarkaya attempted to join and support ISIS from August 2017 until his arrest in December 2017. He pleaded guilty July 8, 2019.
U.S. District Judge U.S. District Judge Andrew S. Hanen ordered him to serve 165 months in federal prison to be immediately followed by a lifetime of supervised release.
“Damlarkaya wanted to kill in the name of ISIS,” said Hamdani. “He slept with a machete by his bed, ready to use on law enforcement, provided instructions on how to make a bomb to ISIS supporters, and prepared to travel overseas and become a martyr for our enemies. Today’s sentence insures that Damlarkaya will spend many many years away from machetes and explosives, making everyone in the Southern District of Texas a lot safer.”
In addition to wanting to join ISIS, Damlarkaya also provided information to ISIS supporters about the use of machetes, homemade construction of an automatic weapon and how to build and use explosive materials.
“Preventing a terrorist attack remains the FBI’s number one priority, but the threat of terrorism has morphed significantly from the sophisticated, externally directed plot to the individual, inspired attack,” said Special Agent in Charge James Smith of the FBI Houston Field Office. “Fortunately, for us and the public, Damlarkaya was stopped before he was able to carry out his terrorism plan. He dreamed of being a martyr. The reality is that he’s now a federal prisoner and will be one for years to come. Our Joint Terrorism Task Force will continue to gather and share information 24 hours a day, seven days a week, 365 days a year to protect our communities.”
As part of his plans to join ISIS overseas, starting in approximately early August 2017, Damlarkaya had numerous conversations online with many individuals he believed to be fellow ISIS supporters. During these discussions, he described his intentions to travel overseas to fight for ISIS in Syria or Afghanistan. Damlarkaya added that if he was unsuccessful in joining ISIS overseas, he would conduct an on attack on non-Muslims in the United States and that it was his “dream” to be a martyr.
Damalarkaya also provided information to other ISIS supporters, on at least two separate occasions, about ways to manufacture a bomb. Specifically, he described how to make explosives formula using triacetone triperoxide and cautioned the others to “take safety seriously while you make this” to be “useful until you can strike.”
Damlarkaya further illustrated to ISIS supporters ways to construct an automatic weapon. He claimed he could buy a “GIANT machete for $15” and stated “a lot of us are poor… or we don't have experience. So not all of us can get a gun or make explosives, but we can afford to buy a $15 knife.” He claimed he slept with a machete under his pillow ready to use if law enforcement raided his house.
When agents arrested Damlarkaya, they executed a search warrant at his residence and found a machete by his bed.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI’s Joint Terrorism Task Force conducted the investigation. Assistant U.S. Attorney Rob Jones is prosecuting the case along with DOJ Trial Attorneys Kevin Nunnally and Gregory Gonzalez of National Security Division’s Counterterrorism Section.
Honduran Man Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Honduran man was sentenced yesterday in federal court in Boston for illegal reentry.
Blas Antonio Celaya-Padilla, 41, of Chelsea, was sentenced by U.S. District Court Judge Allison D. Burroughs to 45 months in prison. His sentence will be served concurrently with a 37 month federal sentence he is currently serving for conspiracy to commit alien smuggling in the Eastern District of North Carolina.
Padilla was previously deported from the United States on five prior occasions between 1999 and 2015 and has three prior federal convictions for illegal reentry: a 2004 conviction in the Western District of Texas; a 2011 conviction in the District of Arizona; and a 2012 conviction also in the District of Arizona. Sometime after his 2012 deportation, Padilla illegally reentered the United States. Padilla’s criminal conduct in North Carolina occurred after his three prior illegal reentry convictions.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; and Chelsea Police Chief Keith E. Houghton made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Levy’s Major Crimes Unit prosecuted the case.
Government Contractor Settles False Claims Act Allegations Based on Violations of the Trade Agreements ActRead the Press Release
ALEXANDRIA, Va. – OMNI Business Systems, Inc., located in Alexandria, has agreed to pay $80,944.00 to settle a civil fraud case alleging that OMNI violated the Trade Agreements Act and the False Claims Act by fraudulently misrepresenting the country of origin for certain products on federal supply schedules.
The settlement arises in connection with a lawsuit filed by an OMNI competitor under the whistleblower provision of the False Claims Act: United States ex rel. Vogel v. OMNI Business Systems, Inc., et al. The settlement resolves allegations that OMNI violated the False Claims Act by fraudulently misrepresenting the country of origin for over a dozen toner products manufactured by HP, Inc., and offering them for sale, as Trade Agreements Act (TAA) compliant, through a General Services Administration (GSA) Multiple Award Schedule (MAS) contract and an Air Force Blanket Purchase Agreement. Despite Omni being told to remove the non-TAA compliant items, the settlement resolves allegations that the products remained available for purchase—and sales were made of the items—through GSA and the Air Force.
A whistleblower suit, or qui tam action under the False Claims Act, is commenced by an individual, known as a “relator,” filing a complaint under seal in the U.S. District Court, and providing a copy of the complaint and other evidence to the U.S. Attorney’s Office. The United States then has an opportunity to investigate the claims. The False Claims Act provides whistleblowers with a share of the government’s recovery. The relator here will receive a share of the False Claims Act settlement.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the GSA Office of Inspector General, and the Air Force Office of Special Investigations.
The matter was investigated by Assistant U.S. Attorney Kristin Starr. The civil claims settled by this False Claims Act agreement are allegations only; there has been no determination of civil liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Georgia Woman Sentenced to More Than 11 Years in Prison for Role in International Conspiracy to Launder Proceeds of “Boiler Room” FraudRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Rachael Maia Winslow (55, Roswell, GA) to 11 years and 3 months’ imprisonment for conspiracy to commit money laundering. Winslow was also ordered to forfeit $747,608.81 of victim-investors’ funds seized from two bank accounts she had used during the conspiracy. A federal jury had found Winslow guilty in November 2022.
According to the testimony and evidence presented at trial, Winslow was a member of an international conspiracy to launder funds generated via boiler room fraud. The boiler rooms sold to foreign victims what they were led to believe were legitimate investments, primarily shares or stock in reputable companies such as Facebook, Chesapeake Energy, or Toys R Us. In fact, the investments were worthless, and the boiler rooms defrauded the victims of more than $14 million during the period when Winslow was involved, at least $4.7 million of which passed through accounts controlled by Winslow.
Winslow formed shell companies in various states and then opened bank accounts in the names of those shell companies for the purpose of receiving fraud proceeds from victim-investors. Fraud proceeds were then wired back overseas and used to pay expenses and boiler room workers and otherwise perpetuate the scheme. Fraud proceeds were also wired to accounts controlled by co-conspirators in the money laundering operation in the United States and overseas, including to Winslow’s overseas accounts, to compensate them for their roles in the conspiracy and otherwise for their personal enrichment. Winslow participated in this scheme while living in Barcelona, Spain, and in Miami, Florida.
The testimony and evidence presented at trial also proved that certain assets that the United States is forfeiting from Winslow, specifically, $525,595.62 seized from an account in the name of Guardian Holdings, LLC, and $222,013.19 seized from an account in the name of First Assured Contact, LLC are traceable to proceeds of the offense.
“This elaborate international money laundering conspiracy scheme defrauded many victims of their hard-earned money to the tune of more than $14 million dollars,” said Homeland Security Investigations (HSI) Tampa Assistant Special Agent in Charge John Dumas. “This conviction sends a message that HSI, the Internal Revenue Service – Criminal Investigation, and the U.S. Customs and Border Protection, alongside our many law enforcement partners, will not be deterred in their pursuits of these fraudsters.”
“This case illustrates the complex international schemes con artists will design and employ to defraud and enrich themselves from unsuspecting victims,” said Brian Payne, special agent in charge IRS Criminal Investigation, Tampa field office. “IRS-CI and our interagency partners are laser-focused in our commitment to use our technology and financial investigation expertise to find these criminals and bring them to justice, no matter where they may operate.”
This case was investigated by Homeland Security Investigations (HSI), the Internal Revenue Service – Criminal Investigation, and United States Customs and Border Protection. It was prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke and David W.A. Chee.
Georgia Man Pleads Guilty to Misuse of a Social Security Number and Aggravated Identity Theft in an Attempt to Steal the Identity of a Syracuse University GraduateRead the Press Release
SYRACUSE, NEW YORK – Gregory William Hill, age 38, of Georgia, whose many aliases include Gregory Allen Davis, Gregory William Davis, Gregory Davis Dutton, and John Martin Hill, pled guilty today in federal court in Syracuse to misuse of a social security number and aggravated identity theft. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Hill admitted that in 2018 he impersonated a graduate of Syracuse University and fraudulently attempted to obtain copies of the victim’s final transcript and diploma from Syracuse University. In furtherance of his scheme, Hill sent the university a copy of a Virginia driver’s license displaying Hill’s picture and the victim’s name. Hill also fraudulently presented his own social security card as the victim’s and attempted to convince Syracuse University officials that the university needed to update its files with respect to the victim’s social security number. Hill also admitted that he applied for a job with a non-profit health care company based in Virginia while posing as the victim and falsely claiming to be a Syracuse University graduate. Hill never attended Syracuse University, and he is currently serving a seven-year prison sentence in Georgia for a serial romance fraud scheme that led some news outlets to describe him as the “Sweetheart Swindler.”
The felony charges to which Hill pled guilty carry a maximum sentence of up to 7 years in prison, including up to 5 years for the social security fraud count, followed by a mandatory consecutive two-year term of imprisonment for the aggravated identity theft count. Hill also faces a fine of up to $500,000 and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. The defendant will be sentenced on November 2, 2023, by United States District Judge Glenn T. Suddaby, who presides over the case.
This case is being investigated by the FBI, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Former Uniontown Resident Pleads Guilty to Distributing Material Depicting the Sexual Exploitation of a MinorRead the Press Release
PITTSBURGH, PA - A previous resident of Uniontown, Pennsylvania pleaded guilty in federal court to a charge of distributing material depicting the sexual exploitation of a minor, United States Attorney Eric G. Olshan announced today.
William Kenneth Bosley, Jr., age 53, who is currently incarcerated at the Somerset State Correctional Institution on a previous felony conviction, pleaded guilty to one count before United States District Judge J. Nicholas Ranjan.
In connection with the guilty plea, the court was advised that Bosley sent a sexually explicit photograph of a minor via text message.
Sentencing is scheduled for October 16, 2023. The law provides for a total sentence of not less than 5 years and not more than 20 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered the defendant be detained.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of William Bosley.
Former Sewerage and Water Board Official Pleads Guilty to TheftRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced that JAMES ARNOLD pleaded guilty yesterday to Theft from an Agency Receiving Federal Funds, announced U.S. Attorney Duane A. Evans.
ARNOLD admitted to engaging in a theft scheme while he was employed as a Utility Services Administrator for the Sewerage and Water Board of New Orleans (S&WB). Beginning in approximately 2012 and continuing until in or about November 2021, ARNOLD stole S&WB funds by causing the S&WB to issue plumbing permits when it had not received the fees required for the issuance of those permits. ARNOLD did this by instructing plumbers to provide him with payments for the fees. ARNOLD would then keep the payments for his personal use and cause the S&WB to issue the permits without the S&WB having received the required fees. By engaging in this scheme, ARNOLD caused a loss to the S&WB of approximately $108,290.
The offense to which ARNOLD pled guilty is punishable by up to ten years’ imprisonment followed by up to three years’ supervised release, a fine of up to $250,000, and a $100 special assessment. United States District Judge Jane Triche Milazzo scheduled ARNOLD’s sentencing for October 11, 2023.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Chandra Menon of the Public Integrity Unit is in charge of the prosecution.
Former Santa Fe Priest Indicted on Sexual Exploitation OffenseRead 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 Daniel Balizan was arrested on criminal charges of coercion and enticement of a minor, related to his alleged persuasion, inducement, enticement, or coercion of a child under the age of 18 years of age to engage in sexual activity.
According to court documents, Balizan, 61, of Springer, a former priest at Santa Maria de la Paz Catholic Church in Santa Fe, New Mexico and St. Patrick’s-St. Joseph’s Catholic Church in Raton, New Mexico, allegedly used text messages to coerce and entice a minor victim, identified as John Doe in court documents, to engage in sexual activity with him.
“Abusing children under the veil of religious authority is an attack on the faith itself,” said U.S. Attorney Alexander M.M. Uballez. “I am humbled by the bravery of John Doe. With our partners, we will vigorously pursue justice for him and all of our children.”
“We have and will continue to do everything we possibly can to protect our children from predators who seek to do them harm by abusing their inherent positions of trust.” said Raul Bujanda, FBI Special Agent in Charge.
If convicted, Balizan faces a minimum of 10 years and up to life in prison.
The Santa Fe Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Santa Fe County Sheriff’s Office and the New Mexico Regional Computer Forensic Laboratory.
Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
Balizan is being prosecuted as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Starting today, information about the federal prosecution of Balizan, including the indictment, will be available at https://www.justice.gov/usao-nm/priest-prosecution. Also starting today, individuals may provide any information related to Balizan’s contact with minors by calling the FBI at 1-800-CALL-FBI or submitting a tip online at tips.fbi.gov.
Below is a timeline of Balizan’s assignments from 1989 to 2022:
FBIAn indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Ohio House Speaker sentenced to 20 years in prison for leading racketeering conspiracy involving $60 million in bribesRead the Press Release
CINCINNATI – Former Ohio House Speaker Larry Householder, 64, of Glenford, Ohio, was sentenced in federal court here today to 240 months in prison for leading a racketeering conspiracy to receive nearly $61 million in bribes to pass and uphold a billion-dollar nuclear plant bailout. The Court remanded Householder to the custody of the U.S. Marshals at the conclusion of sentencing.
"Larry Householder led a criminal enterprise responsible for one of the largest public corruption conspiracies in Ohio history," said U.S. Attorney Kenneth L. Parker. “Elected officials owe a duty to provide honest services to their constituents – transparency, integrity and accountability are foundational principles of democracy. Householder once held one of the three most powerful offices in the State of Ohio. Now, because of his corruption, he will serve a substantial prison sentence.”
“The people of Ohio are the true victims of Larry Householder’s corrupt scheme to increase his power and pass a billion-dollar corporate bailout,” stated FBI Cincinnati Special Agent in Charge J. William Rivers. “While we hope this sentence clearly demonstrates that corruption does not pay, the FBI will continue to investigate and pursue those who abuse their positions and take advantage of the public.”
A jury found Householder and former Ohio Republican Party chair Mathew Borges, 50, of Bexley, Ohio, guilty of participating in a racketeering conspiracy. The verdict was announced in March, following a six-week trial that included more than 1,000 exhibits and 25 witnesses.
The government proved beyond a reasonable doubt at trial that Householder and his enterprise conspired to violate the racketeering statute through honest services wire fraud, receipt of millions of dollars in bribes and money laundering.
Householder and his conspirators exploited the lack of transparency in 501(c)(4) entities to bury their corrupt and complex scheme to accept nearly $61 million in bribes to pass and uphold a billion-dollar nuclear plant bailout.
According to court documents and trial testimony, from March 2017 to March 2020, the enterprise traded millions of dollars in bribery campaign donations in exchange for Householder’s and the enterprise’s help in passing House Bill 6. The defendants then also worked to corruptly ensure that HB 6 went into effect by defeating a ballot initiative to overturn the legislation.
In March 2017, Householder began receiving quarterly $250,000 payments from the related-energy companies into the bank account of his 501(c)(4), Generation Now. Team Householder spent millions of the company’s dollars to support Householder’s political bid to become Speaker, to support House candidates they believed would back Householder, and for their own personal benefit.
The United States detailed that Householder spent more than half a million dollars of the dark money to pay off his credit card balances, repair his Florida home and settle a business lawsuit.
Borges used approximately $366,000 for his personal benefit.
Borges was budgeted $25,000 to bribe an Ohio Republican operative to try to save House Bill 6. Borges gave the man a $15,000 check in exchange for information on the number of signatures collected on the anti-House Bill 6 ballot referendum. Borges is scheduled to be sentenced tomorrow.
Householder’s longtime campaign and political strategist, Jeffrey Longstreth, and lobbyist Juan Cespedes, both of Columbus, Ohio, previously pleaded guilty to their roles in the racketeering conspiracy. FirstEnergy Corp. signed a deferred prosecution settlement in July 2021, agreeing to pay a $230 million penalty for conspiring to bribe public officials and others. Longstreth and Cespedes await sentencing; their hearings have not yet been scheduled.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed today by Senior U.S. District Judge Timothy S. Black. Deputy Criminal Chief Emily N. Glatfelter and Assistant United States Attorneys Matthew C. Singer, Megan Gaffney Painter and Timothy S. Mangan represented the United States in this case.
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Former CFO Pleads Guilty to Embezzling More Than $3 Million from EmployerRead the Press Release
ST. PAUL, Minn. – An Arizona man has pleaded guilty to wire fraud after embezzling more than $3 million from his employer, announced U.S. Attorney Andrew M. Luger.
According to court documents, David Efrem Katz, 56, was the former Chief Financial Officer (CFO) of Durand and Associates (“D&A”), a property management company that specialized in servicing homeowner associations (“HOAs”). Between 2012 and 2017, Katz embezzled over $3 million from D&A and its client HOAs.
Katz worked for D&A from approximately 1998 to 2017, starting as an accountant and eventually becoming CFO. As CFO, Katz had authorization to open credit cards in D&A’s name and use those credit cards for business expenses. However, Katz was not authorized to charge personal expenses to the cards, take out loans on D&A’s behalf without the owner’s approval, or use funds belonging to D&A or its HOA clients to pay his personal expenses.
Beginning in at least 2012 and continuing into 2017, Katz embezzled over $3 million from D&A and its HOA clients. Katz, who as CFO of D&A was responsible for payroll, paid himself significantly more than his agreed upon salary. Between 2011 and 2017, Katz paid himself $6,500 every two weeks as a salary despite his base salary never being more than $47,500 annually.
Katz also reimbursed himself for personal expenses and business expenses he never actually incurred. Katz paid himself between approximately $6,000 and $10,000 in reimbursements every two weeks. He labeled these payments as miscellaneous earnings and reimbursements, “recovery loans,” bonuses, and commissions. Katz never loaned or invested money in D&A that he was entitled to “recover.” To the extent he earned bonuses and commissions, they were in amounts significantly less than what he paid himself. And although Katz incurred some legitimate business-related expenses, they were in amounts significantly less than what he reimbursed himself.
Katz pleaded guilty on June 26, 2023, in U.S. District Court before Judge Katherine M Menendez to one count of wire fraud. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the FBI.
Assistant U.S. Attorneys Harry M. Jacobs and Matthew S. Ebert are prosecuting the case.
Former Bosnian Combatant Pleads Guilty to Passport FraudRead the Press Release
BOSTON – A Winthrop man pleaded guilty yesterday in federal court in Boston to fraudulently obtaining a U.S. passport, and then using it to enter the United States from Istanbul, Turkey in 2021.
Azem Gigo Zebic, 52, pleaded guilty to one count of use of a fraudulently obtained passport. U.S. District Judge Denise J. Casper scheduled sentencing for Nov. 30, 2023. Zebic was arrested by information and subsequently waived his indictment in May 2023.
Zebic was admitted to the United States from Croatia in 1997 after falsely claiming that he had been the subject of persecution by Serb forces during the Bosnian War. Zebic falsely claimed, among other things, that Serb forces had captured, interrogated, beaten him and forced him to pull wounded soldiers from the front lines. Further, once in the United States, Zebic continued to make false statements about his past, including that he had never assisted anyone else enter the country illegally. However, Zebic had, in fact, assisted another alleged Bosnian combatant – Kemal Mrndzic – enter the United States unlawfully by falsely claiming that he was Mrndzic’s half-brother. Mrndzic, who was recently indicted by a federal grand jury in Boston, allegedly engaged in the persecution of Serbs while a supervisor of guards at the notorious Celebic prison camp before he fraudulently applied for refuge in the United States. Zebic used this false history and his additional false statements, to obtain lawful permanent residency, American citizenship and a United States passport.
The use of a fraudulently obtained passport provides for a sentence of up to 10 years in prison, followed by three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
Acting United States Attorney Joshua S. Levy; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; Sharon B. MacDermott, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; and Jonathan Davidson, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office made the announcement today. This matter was investigated with the assistance of the United States Interagency Human Rights Violators & War Crimes Center. Assistant U.S. Attorneys John T. McNeil and Jason A. Casey of Levy’s National Security Unit are prosecuting the case.
Former Army Training Manager Pleads Guilty to Public Corruption ChargeRead the Press Release
OKLAHOMA CITY – Earlier this week, ALFRED PALMA, 64, of Duncan, pleaded guilty to bribery charges, announced United States Attorney Robert J. Troester.
On May 3, 2023, a federal grand jury returned a twelve-count indictment against Palma and co-defendant Candy Hanza. Palma was charged in Count 2 with accepting a bribe as a public official.
According to public record, Palma, a United States Army employee and public official, was the manager of the Institutional Training Directed Lodging and Meals (“ITDLM”) program at Fort Sill, through which he booked hotel rooms for soldiers who attended on-post trainings. According to the Indictment, Hanza, then the general manager of a local hotel in Lawton, paid Palma to direct soldiers to the hotel.
At a hearing before United States District Judge Patrick R. Wyrick on Monday, Palma admitted that he received cash and checks totaling $103,200.00 from Hanza in return for favoring the hotel at which Hanza was a general manager when Palma booked soldiers for off-post trainings. Palma further admitted that he used the cash to purchase money orders from Walmart in $1,000.00 increments, which he then deposited, along with the checks that Hanza gave him, into his personal checking account.
At sentencing, Palma faces up to fifteen years in federal prison, a fine of $250,000.00 or three times the monetary value of the bribes, and up to three years of supervised release.
Hanza has pleaded not guilty and is awaiting trial. The public is reminded that charges against Hanza are merely allegations, and she is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is the result of an investigation by the United States Army Criminal Investigation Division and the Department of Defense Contract Audit Agency. Assistant U.S. Attorney Julia E. Barry is prosecuting the case.
Florida Man Sentenced to 10 Years in Federal Prison for Sextortion SchemeRead the Press Release
GREENVILLE, SOUTH CAROLINA — Peterson Jean-Baptiste, 23, of Palm Bay, Florida, was sentenced to 10 years in federal prison and placed on lifetime supervision for his role in disseminating child pornography.
Evidence presented to the Court showed that, while on probation in Florida for a drug distribution conviction, Jean-Baptiste targeted teenage girls on Snapchat. After establishing a relationship with his victims, Jean-Baptiste requested nude photographs. Once in possession of nude images, Jean-Baptiste threatened to post the images on the internet if the victims did not provide more images. Jean-Baptiste would then direct the victims on how to pose and forced some victims to involve an animal in the pictures.
This matter came to the attention of law enforcement when one victim informed her parents of the sextortion, and the sextortion was reported to the Greenville County Sheriff’s Office. The Sheriff’s Office began an investigation and requested assistance from the Department of Homeland Security once it became apparent that the crime involved multiple states.
Law enforcement was able to locate the defendant in Florida, seize his mobile device, and search the device. A search of the phone showed that the defendant regularly used FaceTime video to chat with young girls, and he had them film their bodies while he watched, usually only showing his forehead or part of his face. On one occasion he mistakenly showed his entire face, and this further confirmed the defendant’s identity.
Two victims—one 14 years old and the other 15 years old—resided in South Carolina. Additional images of young girls were found on the phone, but law enforcement did not have enough information to identify them.
“Sextortion has been on the rise in recent years and presents an extreme danger to our children,” said United States Attorney Adair F. Boroughs. “We are grateful to the young victim and parents that first reported this crime to law enforcement. We will continue to dedicate resources to identifying victims of this predatory conduct and ensuring that offenders face serious consequences for sextortion.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
United States District Judge Bruce H. Hendricks presided over the case. This case was investigated by Homeland Security Investigations and the Greenville County Sheriff’s Office. Assistant United States Attorney Bill Watkins prosecuted the case.
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Florida Contractors and Owner to Pay More than $7.7 Million to Resolve False Claims Act Allegations Relating to Procurement of Small Business ContractsRead the Press Release
HX5 LLC and its owner and Chief Executive Officer, Margarita Howard, located in Fort Walton Beach, Florida, and an affiliated joint venture HX5 Sierra LLC, located in Cleveland, Ohio, have agreed to pay the United States $7,759,693.92 to resolve allegations that they violated the False Claims Act by knowingly providing false information to the Small Business Administration relating to HX5’s and HX5 Sierra’s eligibility for federal set-aside contracts intended for small businesses owned and controlled by socially and economically disadvantaged individuals.
“Small business set-aside contracts assist small businesses, including socially disadvantaged companies, to compete in the American economy,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When companies misrepresent their eligibility for such contracts, they prevent others from receiving the business opportunities Congress intended.”
The SBA’s 8(a) business development program is intended to help small businesses owned and controlled by socially and economically disadvantaged individuals. Once certified, 8(a) Program participants are eligible to receive federal contracting preferences. The settlement announced today resolves allegations that HX5, HX5 Sierra and Howard fraudulently obtained six 8(a) contracts during the period Jan. 1, 2015, to Dec. 31, 2021. More specifically, the government alleged that HX5 and Howard failed to report distributions and payments to Howard’s family members and allegedly provided false information to SBA regarding Howard’s assets. The government further alleged that if HX5 and Howard had provided accurate information it would have resulted in HX5’s termination from the SBA 8(a) Program, which, in turn, would also have made HX5 Sierra ineligible for 8(a) set-aside contracts. As a result of the alleged false statements, HX5 improperly maintained its status as an 8(a) Program participant, and HX5 and HX5 Sierra were awarded 8(a) set-aside contracts by the National Aeronautics and Space Administration (NASA), the U.S. Army, and the U.S. Air Force for which the companies were not eligible.
“We are very pleased with today’s agreement,” said U.S. Attorney Jason R. Coody for the Northern District of Florida. “This result demonstrates a coordinated effort among our agency partners to ensure that disregard for the integrity of small business contracting will not go unchecked.”
“Individuals that provided fraudulent information to gain access to SBA funds intended to support eligible small businesses will face justice,” said Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General’s Eastern Region. “Today’s settlement sends a strong message that those responsible will be held accountable. I want to thank the U.S. Department of Justice and our law enforcement partners for their support and dedication to pursuit of justice in this case.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Vantage Systems Inc. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Vantage Systems, Inc. v. HX5 LLC, et al., et al., No. 20-cv-3649 (N.D. Fla.). As part of today’s resolution, Vantage Systems will receive $1,357,964.00.
The resolution obtained in this matter was the result of a coordinated effort among the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Northern District of Florida, with assistance from the NASA Office of the General Counsel, NASA Office of Inspector General, Air Force Office of General Counsel, Air Force Office of the Judge Advocate General, Air Force Office of Special Investigations, Army Office of the Judge Advocate General, Army Criminal Investigation Division, the Defense Contract Audit Agency, the Defense Contract Management Agency, and the Small Business Administration’s Office of Inspector General.
The matter was handled by Trial Attorney Laura Hill of the Justice Department’s Civil Division, former Trial Attorney Andrew Jaco of the Justice Department’s Civil Division (now with the Justice Department’s Criminal Division), and Assistant U.S. Attorney Mary Ann Couch for the Northern District of Florida.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Fifteen People Charged in Passaic County Drug Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – Fifteen members and associates of a Paterson-based street gang were charged today in connection with their roles in the distribution of narcotics, including heroin, fentanyl, and cocaine, U.S. Attorney Philip R. Sellinger announced.
The 11 defendants arrested today are scheduled to appear before U.S. Magistrate Judge Cathy L. Waldor in Newark federal court. Two defendants were already in custody on state charges and two defendants remain at large. All of the defendants are charged with conspiracy to distribute and possess with intent to distribute controlled substances, including heroin, fentanyl, and cocaine. A number of the defendants are also charged with weapons offenses. (See chart below.)
“As alleged in the criminal complaint, these defendants were affiliated with a street gang that trafficked fentanyl, an extremely dangerous synthetic opioid that can kill users with a single dose,” U.S. Attorney Sellinger said. “Not only did they deal these dangerous drugs in Paterson, certain gang members are alleged to have had guns to solidify their control of the drug trade. We have no higher priority than taking apart these gangs and addressing the drivers of violence. Independent of this case, thanks to the efforts of our federal, state, and local partners there have been fewer shooting incidents in New Jersey and fewer shooting victims in Paterson this year than in 2022. We are committed to building upon this progress and keeping our communities safe.”
“ATF is dedicated to identifying, disrupting, and dismantling gangs and criminal organizations,” Bryan Miller, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, said. “We appreciate the commitment and tireless efforts of our federal, state and local partners and our personnel in bringing accountability to criminals. Our collaborative and unified efforts are essential to reducing violent crime and removing those offenders that terrorize our communities and threaten public safety.”
According to the documents filed in this case and statements made in court:
The defendants are all members and associates of the UpTop street gang, based in the Fourth Ward of Paterson, in the area of Governor and Carroll streets, the Incca Village housing complex, and Harrison Street. The gang members and associates are involved in the distribution of controlled substances.
Jamal Ricks, aka “Bop,” and Rahjohn Leary, aka “Rah,” are high-ranking members of UpTop who worked with the other conspirators to control the sale of drugs in and around Paterson. Quadair Williams, aka “Fed Baby,” aka “Mega,” is a close associate of senior members of UpTop, including Ricks and Leary, and one of the gang’s drug suppliers.
Some members of the gang, including Marquis Turner, aka “June Bug,” and Quajamir Price, aka “Porkchop,” used and possessed and conspired to use and possess firearms in furtherance of the gang’s drug trafficking activities. Turner is charged with possession of a firearm and ammunition by a convicted felon and possession of a firearm during and in relation to a drug trafficking crime. Price is charged with conspiracy to possess a firearm during and in relation to a drug trafficking crime.
The count of conspiracy to distribute and possess with intent to distribute controlled substances is punishable by a mandatory minimum of five years in prison, a maximum penalty of 40 years in prison, a fine of up to $5 million. The count of possession of a firearm and ammunition by a convicted felon carries a maximum penalty of 15 years in prison, a fine of up to $250,000. The count of possession of a firearm during and in relation to a drug trafficking crime is punishable by a mandatory minimum of five years in prison and a maximum penalty of life in prison, which must be served consecutively to any other term of imprisonment imposed, and a fine of up to $250,000. The count of conspiracy to possess a firearm during and in relation to a drug trafficking crime carries a maximum penalty of 20 years in prison, a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents and task force officers of the (ATF), under the direction of Special Agent in Charge Miller; officers of the Paterson Police Department, under the direction of Officer in Charge Isa M. Abbasi of the Office of the Attorney General; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia M. Valdes; the Passaic County Sheriff’s Department, under the direction of Sheriff Richard H. Berdnik; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Tammy Tomlins; special agents of U.S. Secret Service, under the direction of Special Agent in Charge Jose Riera in Newark; special agents of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under the direction of Newark Field Office Director John Tsoukaris; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and the Elizabeth Police Department, under the direction of Police Director Earle Graves and Chief Giacomo Sacca, with the investigation leading to the charges. He also thanked the U.S. Marshals Service, the Drug Enforcement Administration, Homeland Security Investigations Newark, Newark Police Department, Passaic Police Department, and Hillside Police Department for their assistance with the case.
This case is part of the Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Passaic County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney James Graham of the Organized Crime and Gangs Unit and Assistant U.S. Attorney Clara Kim of the OCDETF/Narcotics Unit.
The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
DEFENDANTS
NAME
AGE
RESIDENCE
Quadair Williams aka “Fed Baby” aka “Mega”
41
Hackensack, New Jersey
Jamal Ricks aka “Bop”
35
Paterson
Rahjohn Leary aka “Rah”
29
Newark
Ronald Taylor aka “Fat Cat” aka “Cat”
29
Passaic, New Jersey
Malachi Fields aka “Chicago”
28
Paterson
Marquis Turner aka “June Bug”
26
Paterson
Prince Carter aka “Eighty” aka “Eight”
41
Paterson
*Terrance Drakeford
30
Prospect Park, New Jersey
Xavier Classen aka “Swaggy”
25
Paterson
Quajamir Price aka “Porkchop”
20
Paterson
*Jamah Godwin
29
Paterson
Troy Blair
48
Paterson
Elton Baker
45
Paterson
Justin Carlos aka “Spaz”
36
Paterson
Marecius Samuels aka “Re-Up”
35
Paterson
*denotes at large
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uptop.complaint.pdfFelon sentenced for illegal possession of firearm after offering to sell pistol, illegal switches for gun conversionRead the Press Release
BILLINGS — A California felon who was identified offering to sell an undercover agent a pistol and switches used to convert guns from semi-automatic firearms to fully-automatic was sentenced today to two years in prison, to be followed by three years of supervised release, U. S. Attorney Jesse Laslovich said.
Drew Parker Seymour, 24, of Banning, California, pleaded guilty in February to prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
The government alleged in court documents that Seymour has been convicted of four felonies, including this case, that involve him illegally possessing firearms. In March 2022 in Billings, the Bureau of Alcohol, Tobacco, Firearms and Explosives learned that Seymour offered online to sell an individual illegal Glock switches, which are used to convert semi-automatic firearms into automatic machine guns. An undercover agent began communicating with Seymour, who offered to sell the agent Glock switches and a .45 caliber pistol. Seymour sent pictures of both. Seymour later withdrew his offer to sell the Glock switches. The undercover agent agreed to meet Seymour to buy the pistol. Before the meeting occurred, drug task force agents detained Seymour and his girlfriend at a post office in Billings as they attempted to pick up a package of fentanyl. In a search of the couple’s motel room, law enforcement located a .45-caliber, semi-automatic pistol hidden under a mattress. Seymour’s fingerprint was recovered from the gun’s magazine.
Assistant U.S. Attorney Benjamin D. Hargrove prosecuted the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Billings Police Department, U.S. Postal Service and Eastern Montana High Intensity Drug Trafficking Area Task Force 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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Federal Lawsuit Against Los Angeles County Alleges ADA Violations and Discrimination Against Voters with DisabilitiesRead the Press Release
LOS ANGELES – Following a lengthy investigation that determined the County of Los Angeles discriminated against persons with disabilities at vote centers during recent elections, the United States Attorney’s Office today filed a lawsuit alleging the county has failed to comply with the Americans with Disabilities Act of 1990 (ADA).
The investigation into the county’s voting program found that the county, acting through its registrar-recorder, excluded qualified individuals with mobility disabilities and those with vision disabilities from participating in the county’s voting programs. The complaint filed in United States District Court seeks a court order directing the county to comply with the ADA, promptly develop a plan to completely remedy the alleged violations, and not further discriminate against individuals with disabilities.
“Voting is a fundamental right, and we will do everything we can to ensure that it is not limited or denied to anyone in our community,” said United States Attorney Martin Estrada. “Through this lawsuit, we demand that Los Angeles County afford individuals with disabilities an opportunity to participate in the county’s voting program that is equal to that provided to nondisabled individuals.”
“Voting is the bedrock of our democracy, and all voters, including those with disabilities, should have an equal opportunity to participate in the voting process. This lawsuit should send a strong message to officials across the country regarding the Justice Department’s firm commitment to ensuring polling place accessibility,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.
The lawsuit was brought under Title II of the ADA, which prohibits public entities from discriminating against qualified individuals with disabilities. The federal investigation has focused on physical accessibility for persons with mobility disabilities and persons with vision disabilities at county vote centers during the 2020 primary election, the 2020 general election and the 2022 general election. The United States Attorney’s Office also reviewed other aspects of the county’s voting programs, including curbside voting and ballot drop boxes.
On May 16, the United States issued a Letter of Findings that advised the county of its findings about inaccessible vote centers during the March 2020, November 2020, and November 2022 elections; inaccessible ballot drop boxes from the November 2020 and 2022 elections; and the inaccessible curbside voting system. The United States advised the county that its use of physically inaccessible vote centers and its curbside voting system violated Title II of the ADA.
The lawsuit filed today in Los Angeles alleges that the county is responsible for selecting and providing accessible facilities to be used as polling places or vote centers for federal, state and local elections.
During elections in June 2016, March 2020 and November 2020, the United States Attorney’s Office surveyed well over 250 polling places and vote centers, finding that only a small percentage of them complied with the ADA, according to the complaint.
During the November 2022 general election, the United States surveyed 52 Los Angeles County vote centers to determine if they were compliant with the ADA and applicable standards for accessibility. “Each of the surveyed vote centers had non-compliant elements or features, including, for example, a lack of van accessible parking; wide gaps, abrupt level changes, and excessive cross slopes on designated accessible routes; ramps with steep running slopes and without the required handrails; entrances and/or exits that were obstructed or too narrow, lacked level landings, or had high thresholds; interior routes that had protruding objects; and voting areas with narrow routes,” the complaint alleges.
The lawsuit identifies specific vote centers in Pasadena, North Hollywood, Downey and Watts that are still in use, even though the federal government first alerted the county about accessibility deficiencies at the first three facilities in September 2016 and the Watts location in July 2020.
Other accessibility problems were identified with ballot drop boxes used during the November 2020 and November 2022 general elections.
The lawsuit discusses difficulties experienced during the August 2019 special election by a voter who uses a wheelchair. This voter “reported feeling dismayed and frustrated by her treatment at the polling place and that she felt as if she had lost her freedom to vote privately and independently like everyone else,” the lawsuit states.
The lawsuit is part of the Justice Department’s ADA Voting Initiative, which seeks to increase accessibility for voters with disabilities across the country. A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at vote centers or polling places. Through this initiative, the Department of Justice’s Civil Rights Division and U.S. Attorney’s Offices across the country have surveyed more than 2,700 polling places and increased polling place accessibility in more than 50 jurisdictions, including Kenton County, Kentucky; Travis County, Texas; and Lycoming County, Pennsylvania.
Assistant United States Attorney Katherine M. Hikida of the Civil Division’s Civil Rights Section is handling this case.
Information about the Civil Rights Section in the Civil Division of the United States Attorney’s Office is available on our website. Members of the public may report possible civil rights violations to our office via email to [email protected].
Federal Jury Convicts Tulsa Resident of Involuntary Manslaughter in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that that Danny Gene Kirby, age 65, of Tulsa, Oklahoma, was found guilty by a federal jury of one count of Involuntary Manslaughter in Indian Country.
The jury trial began with testimony on June 26, 2023, and concluded on June 28, 2023, with the guilty verdict.
During the trial, the United States presented evidence that the defendant caused the death of his passenger while driving a motorcycle under the combined influence of drugs and alcohol.
On July 23, 2022, in McIntosh County, Oklahoma, Kirby and a passenger left a bar on Kirby’s motorcycle. A short distance from the bar, Kirby left the roadway while making a turn. He lost control of the motorcycle attempting to re-enter the roadway, throwing his passenger from the bike. Emergency responders life-flighted the victim to a Tulsa hospital, where the victim was pronounced dead the following morning. At the time of the crash, Kirby was under the combined influence of alcohol, marijuana, tramadol, trazodone, amphetamines, citalopram, and oxycodone, and was unable to complete field sobriety tests administered by the Oklahoma Highway Patrol Trooper.
The guilty verdict was the result of investigations by the Oklahoma State Bureau of Investigation, the Oklahoma Highway Patrol, and the Federal Bureau of Investigation.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant is a member of a federally recognized Indian tribe and the crime occurred in Indian Country, within the boundaries of the Muscogee (Creek) Nation Reservation of Oklahoma and the Eastern District of Oklahoma.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the trial in Muskogee and ordered the completion of a presentence report. The sentencing will be scheduled following completion of the report. The defendant was allowed to remain on bond pending sentencing.
Assistant United States Attorneys Jordan Howanitz and Joshua Satter represented the United States.
Federal Jury Convicts Ocala Man of Possession of Child Sex Abuse ImagesRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Justin Lewis (41, Ocala) guilty of possession of child sex abuse images. Lewis faces a maximum penalty of 20 years in federal prison. His sentencing hearing has not yet been set. Lewis had originally been indicted on February 6, 2019. A federal grand jury later returned a superseding indictment on June 20, 2023.
According to testimony and evidence presented at trial, federal agents executed a search warrant at Lewis’s Ocala residence on February 7, 2018, in an unrelated wire fraud investigation. During the search, agents located two external hard drives on Lewis’s desk that contained video files depicting young children being sexually abused. The hard drives also contained numerous files and documents attributed to Lewis, including personal photographs, copies of his high school diploma, emails, text messages, and business records. One of the hard drives was also encrypted with a password that Lewis also used for many of his personal accounts.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ex-employee Accused of Arson at St. Louis Airport MarriottRead the Press Release
ST. LOUIS – A woman from St. Louis, Missouri has been indicted on an arson charge and accused of setting fires at a hotel after being fired.
Ramona Cook, 25, was indicted May 10 and arrested and pleaded not guilty Wednesday. She is due in court Friday for a hearing that will determine whether she is jailed until trial.
The indictment says that on Dec. 22, 2022, Cook maliciously damaged by means of fire the Marriott St. Louis Airport hotel at 10700 Pear Tree Drive.
A motion seeking to have Cook held in jail says that she was fired that day for being intoxicated at work. She returned shortly after being escorted out of the hotel by police and set multiple fires in the hotel, the motion says, displacing the occupants of more than 400 rooms.
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 arson charge carries a penalty of 5 years to 20 years in prison, a $250,000 fine, or both.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Ryan Finlen is prosecuting the case.
Erie Resident Sentenced to Eight Years for Violating Federal Laws Relating to the Sexual Exploitation of a MinorRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to eight years in jail, five years supervised release, ordered to make restitution in the amount of $18,000 and pay a special assessment in the amount of $5,200 on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Eric G. Olshan announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Randy Lee Eicher, of Erie, Pennsylvania.
According to information presented to the court, from September 2018 to December 2018, Eicher received and distributed images and videos depicting prepubescent minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Olshan commended Homeland Security Investigations and the Boone, North Carolina Police Department for the investigation leading to the successful prosecution of Eicher.
Elmer City Man Sentenced to 60 Months’ Imprisonment for Drug Trafficking Linked to Overdose on the Colville Indian ReservationRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of Washington, announced today that Andre Pierre Picard, age 67 of Elmer City, Washington, has been sentenced after pleading guilty to Distribution of Heroin and Distribution of Methamphetamine. United States District Court Judge Thomas O. Rice imposed a sentence of sixty months in federal custody to be followed by five years of supervised release.
According to Court documents and information disclosed during the sentencing hearing, on or about April 28, 2020, Piccard sold heroin to a young woman (hereafter “D.S.”) from his home in Elmer City, Washington. The very next day, April 29, 2020, D.S. was found lifeless, and the autopsy results determined the death was caused by a drug overdose.
From April 2022 through December 2022, the Bureau of Indian Affairs Division of Drug Enforcement engaged in several controlled purchases from Picard, ultimately arresting him and linking him to the sale of drugs that appeared to have contributed to D.S.’s overdose.
“I’m grateful for our incredible law enforcement team, who devote their lives to protecting our community,” said United States Attorney Vanessa R. Waldref, the chief federal law enforcement officer for the Eastern District of Washington. She further stated, “Today’s sentence demonstrates the seriousness of Mr. Picard’s drug trafficking activities. While Mr. Picard described himself as a low-level drug dealer, he was dealing in large quantities of illegal drugs given the relative size of the Elmer City community and the Colville Reservation. Ultimately, Mr. Picard’s distribution had devastating consequences. I commend the FBI and Bureau of Indian Affairs for their work to remove illegal drugs from our communities. I am also grateful to the law enforcement team from the Colville Tribe, which worked hand-in-hand with our federal partners to seek justice in this case.”
“Mr. Picard showed a willful disregard for the members of his own community.” Said Gregory L. Austin, Assistant Special Agent in Charge of the FBI’s Seattle field office. “Despite witnessing the devastating effects of these dangerous narcotics, he continued to distribute them to people he knew. The FBI and our partners will continue to fight the plague of illegal drugs on our state’s reservations.”
“The Bureau of Indian Affairs Division of Drug Enforcement is committed to removing dangerous drug dealers in Indian Country, including those that hide in plain sight and continually profit off the pain and tragic loss of their fellow community members, such as Mr. Picard,” stated Deputy Associate Director, Jerin Falcon. “The Bureau of Indian Affairs Division of Drug Enforcement is devoted to continuing to protect our native communities and is thankful for the partnership with the Colville Tribal Police, FBI, DEA and other local law enforcement agencies. “
This case was investigated by the Colville Tribal Police Department, Federal Bureau of Investigation and the Bureau of Indian Affairs, Division of Drug Enforcement. The case was prosecuted by Richard R. Barker and David H. Herzog, Assistant U.S. Attorneys for the Eastern District of Washington.
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Drug trafficker sent to prison for possession of multiple variations of weapons earmarked for cartel in MexicoRead the Press Release
HOUSTON – A 42-year-old Mexican citizen illegally residing in Houston has been ordered to federal prison for drug trafficking on U.S. streets and unlawfully possessing a rocket launcher, rocket-propelled grenades, guns and ammunition, announced U.S. Attorney Alamdar S. Hamdani.
Alfredo Gonzalez-Diaz pleaded guilty May 26, 2022, to conspiracy to distribute kilograms of heroin and cocaine and illegal possession of a firearm.
Today, U.S. District Judge Alfred H Bennett ordered Gonzalez-Diaz to serve a total of 175 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment..
“A rocket launcher, two rocket propelled grenades, 8.5 kilos of heroin, and lots, and lots, of cash,” said Hamdani. “These are the tools of terror of the Mexican cartels. Cartels like Jalisco New Generation (CJNG) Cartel threaten our communities and our families. This U.S. Attorney’s Office will not rest until we seize the cartel’s weapons, drugs and cash, and welcome those, like Gonzalez-Diaz, to the inside of a prison cell.”
As part of the undercover investigation into individuals affiliated with the CJNG, law enforcement executed a federal search warrant and seized 8.5 kilograms of heroin and approximately two kilograms of cocaine. Authorities also seized a rocket launcher, two rocket propelled grenades and two guns inside a stereo speaker prepared for transport to Mexico.
The investigation revealed the weapons were destined for imminent distribution to the CJNG in Mexico.
Authorities also discovered additional guns, ammunition and $111,762 in drug proceeds.
Gonzalez-Diaz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston Police Department; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Homeland Security Investigations conducted this investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative. Assistant U.S. Attorneys Shelley J. Sullivan and Lisa Collins prosecuted this case.
These such cooperative matters provide for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the DEA Strike Force is to identify and prosecute all members of narcotics trafficking organizations. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Drug trafficker sent to prison for possession of multiple variations of weapons earmarked for cartel in MexicoRead the Press Release
HOUSTON – A 42-year-old Mexican citizen illegally residing in Houston has been ordered to federal prison for drug trafficking on U.S. streets and unlawfully possessing a rocket launcher, rocket-propelled grenades, guns and ammunition, announced U.S. Attorney Alamdar S. Hamdani.
Alfredo Gonzalez-Diaz pleaded guilty May 26, 2022, to conspiracy to distribute kilograms of heroin and cocaine and illegal possession of a firearm.
U.S. District Judge Alfred H Bennett ordered Gonzalez-Diaz to serve a total of 175 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment.
“A rocket launcher, two rocket propelled grenades, 8.5 kilos of heroin, and lots, and lots, of cash,” said Hamdani. “These are the tools of terror of the Mexican cartels. Cartels like Jalisco New Generation (CJNG) Cartel threaten our communities and our families. This U.S. Attorney’s Office will not rest until we seize the cartel’s weapons, drugs and cash, and welcome those, like Gonzalez-Diaz, to the inside of a prison cell.”
As part of the undercover investigation into individuals affiliated with the CJNG, law enforcement executed a federal search warrant and seized 8.5 kilograms of heroin and approximately two kilograms of cocaine. Authorities also seized a rocket launcher, two rocket propelled grenades and two guns inside a stereo speaker prepared for transport to Mexico.
The investigation revealed the weapons were destined for imminent distribution to the CJNG in Mexico.
Authorities also discovered additional guns, ammunition and $111,762 in drug proceeds.
Gonzalez-Diaz will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Houston Police Department; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Homeland Security Investigations conducted this investigation as part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative. Assistant U.S. Attorneys Shelley J. Sullivan and Lisa Collins prosecuted this case.
These such cooperative matters provide for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the DEA Strike Force is to identify and prosecute all members of narcotics trafficking organizations. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
DeForest Man Sentenced to 1 Year in Prison for Making ThreatsRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Michael A. Yaker, 53, DeForest, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to one year and one day in federal prison for transmitting in interstate commerce a threatening communication. Yaker’s prison term will be followed by three years of supervised release.
Yaker sent threatening communications on and off to various public officials and government employees since 2010. Yaker’s campaign of threats continued when he left Wisconsin in January 2022. As a result of leaving Wisconsin, Yaker’s threats—telephone calls and emails—were transmitted in interstate commerce, thus triggering federal jurisdiction. Yaker was charged in federal court and pled guilty on March 29, 2023.
In imposing the sentence, Judge Peterson stated, ”You have hurt people … You injure the people you threaten.” The sentencing hearing primarily focused on protecting the public by treating Yaker’s mental health needs. Judge Peterson directed that Yaker participate in mental health counseling during his supervised release term. While making clear that mental health resources would be provided, Judge Peterson addressed Yaker directly: “You are not a child. The primary responsibility for managing mental health is yours.” Judge Peterson warned Yaker that revocation and return to custody would be swift if Yaker failed to comply with the release conditions. “I’m responsible, I get it,” Yaker replied.
The charge against Yaker was the result of an investigation conducted by the Federal Bureau of Investigation, the Dane County Sheriff’s Office, the Wisconsin State Capitol Police, and the Hamilton County, Kansas Sheriff’s Department. The prosecution of this case has been handled by U.S. Attorney Timothy M. O’Shea and Assistant U.S. Attorney Anita Marie Boor.
Connecticut Real Estate Agent Agrees to Plead Guilty to Defrauding Clients in Long Running Short Sale Fraud SchemeRead the Press Release
BOSTON – A real estate agent was charged yesterday and has agreed to plead guilty in connection with a multi-year scheme to defraud his clients by engaging in fraudulent short sales of government and bank-owned properties to straw buyers acting at the direction of the defendant and a co-conspirator.
Sheldon Haag, 34, of Glastonbury, Conn., has agreed to plead guilty to one count of conspiracy to commit wire fraud. A plea hearing has not yet been scheduled by the Court.
According to the charging document, Haag and a co-conspirator used straw buyers to acquire properties owned by the clients of the brokerage where he worked, which included banks and other mortgage holders. The straw buyers included a shell company set up by a co-conspirator as a purported construction company. Haag and his co-conspirators allegedly hid their involvement as the de facto buyers of short sale properties from their clients, the owners of the properties, and used their inside knowledge as the owner’s broker to minimize sale prices in order to maximize their gain from later “flipping” the properties.
It is also alleged that, while perpetrating the “flipping scheme,” Haag and his co-conspirators further defrauded clients by submitting fraudulent renovation bids from contractors to their own clients, including from the fake construction company they controlled through a co-conspirator. Once their clients accepted a fraudulent bid, Haag and his co-conspirators would allegedly hire different contractors at much lower cost and pocket the difference between the fraudulent bid and the actual cost of property repairs.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $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.
Acting United States Attorney Joshua S. Levy; Christopher DiMenna, Acting Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Christopher Algieri, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office made the announcement today. The United States Department of Housing and Urban Development provided valuable assistance. Assistant U.S. Attorney Kriss Basil of Levy’s Securities, Financial & Cyber Fraud Unit 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.
Columbus man sentenced to 45 years in prison for sexually exploiting three minorsRead the Press Release
COLUMBUS, Ohio – A 37-year-old Columbus man was sentenced today to 540 months in prison for coercing at least three minor victims to engage in sexually explicit activity for the purpose of producing images and videos of the acts. Two of those victims were offered cash and gifts to entice them into performing and/or engaging in sexually explicit acts with him.
Raymond L. Williams committed this exploitation between 2016 and July 2022.
Court documents say that the Franklin County Internet Crimes Against Children (ICAC) task force received a CyberTipLine report from the National Center for Missing and Exploited Children that images depicting child sexual abuse had been uploaded to an online account that was traced to one of the victims, an approximately 14-year-old minor male. Investigators interviewed the minor victim who said the images and videos were created for Williams and that his chats with Williams took place through third party messaging apps.
The investigation further revealed that Williams would provide sex toys to the minor victim to use in the sexually explicit conduct by leaving them in hiding places around the downtown branch of the Columbus Metropolitan Library. Law enforcement then assumed the identity of the minor victim in online platforms and began communicating with Williams, setting up a meeting at the library in which Williams expected to engage in sexual intercourse with the minor. Upon his arrival, Williams was placed under arrest by the ICAC task force and his electronic devices were seized. Williams has been in custody since his arrest.
Further investigation and forensic analysis of those devices identified two additional victims who stated that Williams offered them cash or gifts in exchange for sexual acts occurring between the time frame when the victims were 11 through 17 years of age. Investigators found images, videos, and text messages with the victims on phones seized from Williams further confirming the statements of all three victims. Williams pleaded guilty in March 2023 to two counts of sexual exploitation of a minor and one count of coercion and enticement of a minor. He was sentenced today to 360 months on each count of sexual exploitation of a minor and 540 months on the coercion and enticement of a minor charge, with each count to run concurrently.
“Predators are looking for underaged people they can manipulate and exploit,” said Kenneth L. Parker, United States Attorney for the Southern District of Ohio. “Sexual abuse is never contained to a present moment. It lingers across a child’s lifetime and has pervasive, long-term ramifications.”
Parker was joined by Angie Salazar, Special Agent in Charge for Homeland Security Investigations (HSI) Detroit Field Office; Franklin County Sheriff Dallas Baldwin and agencies participating in the Franklin County Internet Crimes Against Children task force in announcing the sentence imposed today by U.S. District Judge Edmund A. Sargus Jr. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
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Columbus Woman Pleads Guilty to Possessing Child Sexual Abuse MaterialRead the Press Release
COLUMBUS, Ga. –A Columbus, Georgia, resident admitted to possessing photos and videos of children being sexual abused in federal court today, resulting from a joint FBI and GBI investigation into the production and distribution of child pornography online.
Townes Ward Borum, 38, of Columbus, Georgia, pleaded guilty to one count of possession of child pornography before U.S. District Judge Clay Land. Borum faces a maximum sentence of 20 years in prison and a $250,000 fine. In addition, she is facing up to a lifetime of supervised release and will have to register as a sex offender upon release from federal prison. Sentencing is scheduled for Aug. 29.
“There is an evil online world of adults—hiding behind their screens—who will do and pay anything for the sexual abuse of young children, and there are child predators who will provide this horrific content. It is a sickening reality and one that every level of law enforcement will never stop fighting,” said U.S. Attorney Peter D. Leary. “I want to commend the many law enforcement agencies and community groups involved in this case for their unyielding dedication to protecting children and bringing child predators to justice.”
“People like Borum, who sexually exploit children for monetary gain, do serious lasting harm and facilitate in the continued manufacturing and trading of child sexual abuse material,” said Keri Farley, Special Agent in Charge of FBI Atlanta “The FBI is committed to working with our partners to find such predators, and lock them up so they can do no further harm.”
“This case shows how low predators will go to profit from innocent lives. Working with our law enforcement and prosecutorial partners, the GBI’s Child Exploitation and Computer Crimes Unit remains committed to diligently investigating individuals who exploit our children,” said GBI Director Michael Register.
According to facts presented at court, GBI was contacted by law enforcement in New Jersey on May 20, 2022, with information that an adult female in the Middle District of Georgia was distributing nude photos of a young child to a man in their jurisdiction. The initial Cybertip leading to the New Jersey man came from the National Center for Missing and Exploited Children (NCMEC), and a subsequent investigation found digital files of child sexual abuse material (CSAM) on the man’s cell phone. The man told authorities that Borum was providing him with the CSAM material, and that they had been communicating on the Whisper app and by text message. The man said he paid Borum’s rent and other expenses in exchange for sexually explicit photos and videos of young children.
A search warrant was executed by GBI at Borum’s Columbus home on May 21, 2022. Borum’s cell phone was seized; it contained hundreds of images and videos of CSAM, including images of CSAM depicting young children. Her phone also contained numerous messages between Borum and others discussing the exchange of child sexual abuse material for money. Agents also found online advertisements she created and posted to sell child sexual abuse material. Borum admitted to the facts in court.
The plea agreement in this case is sealed at the request of the Government for protection of minor victims.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by GBI, FBI-Atlanta, FBI-Dallas and FBI-Los Angeles, with special assistance from the Bergen County, New Jersey, District Attorney’s Office and the National Center for Missing and Exploited Children.
Assistant U.S. Attorney Crawford Seals is prosecuting the case for the Government.
Colorado Man Sentenced to More than Thirteen Years for Drug and Gun Charges.Read the Press Release
United States Attorney Steven A. Russell announced that Daniel M. Gutirez, 43, of Del Norte, Colorado, was sentenced on June 26, 2023, in federal court in Omaha, Nebraska, for Conspiracy to Distribute and Possession with Intent to Distribute Methamphetamine, and Possession of a Firearm in Connection with Drug Trafficking. United States District Court Judge Brian C. Buescher sentenced Gutirez to 160 months’ imprisonment. There is no parole in the federal system. He was also ordered to serve a five-year term of supervised release after his release from prison.
On December 1, 2021, Gutirez and co-defendant Sheri Griego were stopped while driving in the area of 8th and Brown Streets in Omaha after officers observed their vehicle commit several traffic infractions. After speaking with the two, officers became suspicious that they were involved in criminal activity. Gutirez was asked if he had any weapons. He said he had a gun in his waistband. He was detained and the handgun was found. A search of his person revealed a quantity of methamphetamine. A search of the car revealed a rifle and 67 grams of methamphetamine along with drug paraphernalia.
Co-defendant Griego is currently scheduled for trial starting August 8, 2023.
This case was the result of an investigation by the Omaha Police Department and the Federal Bureau of Investigation.
Central Coast County Organized Health System, Three Health Care Providers Agree to Pay $68M for Alleged False Claims to Medi-CalRead the Press Release
LOS ANGELES – A county organized health system (COHS) that arranges services for Medi-Cal enrollees in Santa Barbara and San Luis Obispo counties and three Central Coast health care providers have agreed to pay a total of $68 million to resolve allegations that they violated the False Claims Act and the California False Claims Act by submitting or causing the submission of false claims to Medi-Cal related to Medicaid Adult Expansion under the Patient Protection and Affordable Care Act (ACA).
The four entities that entered into settlement agreements with the United States and the State of California are the Santa Barbara San Luis Obispo Regional Health Authority, doing business as CenCal Health, a COHS that contracts to arrange for the provision of health care services under Medi-Cal, which is California’s Medicaid program; Cottage Health System, a not-for-profit hospital network operating in Santa Barbara County; Sansum Clinic, a non-profit outpatient clinic operating in Santa Barbara County; and Community Health Centers of the Central Coast (CHC), a non-profit community health center operating in Santa Barbara and San Luis Obispo counties.
The settlement agreements were executed earlier this month, and late Wednesday a federal judge unsealed the “whistleblower” case naming the entities.
Pursuant to the ACA, beginning in January 2014, Medi-Cal was expanded to cover the previously uninsured “Adult Expansion” population – adults between the ages of 19 and 64 without dependent children with annual incomes up to 133% of the federal poverty level. The federal government fully funded the expansion coverage for the first three years of the program. Under contracts with California’s Department of Health Care Services (DHCS), if CenCal did not spend at least 85% of the funds it received for the Adult Expansion population on “allowed medical expenses,” CenCal was required to pay back to the state the difference between 85% and what it actually spent. California, in turn, was required to return that amount to the federal government.
The four settlements resolve allegations that CenCal, Cottage, Sansum, and CHC knowingly submitted or caused the submission of false claims to Medi-Cal for “Enhanced Services” that were purportedly provided to Adult Expansion Medi-Cal members: by Cottage between January 1, 2014 and June 30, 2016; by Sansum and CHC between January 1, 2015 and June 30, 2016; and by certain other healthcare providers between January 1, 2014 and June 30, 2016.
The United States and California alleged that the payments were not “allowed medical expenses” permissible under the contract between DHCS and CenCal; were pre-determined amounts that did not reflect the fair market value of any Enhanced Services provided; and/or the Enhanced Services were duplicative of services already required to be rendered. The United States and California further alleged that the payments were unlawful gifts of public funds in violation of the California Constitution.
As a result of the settlements, CenCal will pay $49.5 million, Cottage will pay $9 million, Sansum will pay $4.5 million, and CHC will pay $3.15 million to the United States. In addition, California will receive payments totaling $1.85 million.
“These historic settlements demonstrate our steadfast efforts to eradicate fraud involving Medicaid Adult Expansion,” said United States Attorney Martin Estrada. “Health care systems and providers are on notice that the False Claims Act provides us with a powerful tool to ensure that taxpayer-funded health care programs are used for patient care, and not for furtive financial gain.”
“Medicaid expansion funds must be used for their intended purpose of providing health care services to low-income individuals,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When health care systems and providers knowingly misuse Medicaid funds, they will be held accountable.”
“Federal health care programs are an important resource for millions of Americans to receive medical care,” said Timothy B. DeFrancesca, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to ensure that federal health care funds are used as intended and protected from fraud, waste, and abuse.”
“Medi-Cal is a lifeline that provides access to free or affordable healthcare services for millions of Californians and their families,” said California Attorney General Rob Bonta. “When any healthcare provider or agency defrauds the program, they break the public’s trust and put their own bottom line before the patients who count on them for honest, quality care and services. I am grateful to the Justice Department for its extensive efforts throughout the course of this investigation. The California Department of Justice and our law enforcement partners will continue to hold accountable those who defraud the Medi-Cal program, and protect those it serves.”
The civil settlements include the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Julio Bordas, CenCal’s former medical director. Under the act, a private party can file an action on behalf of the United States and receive a portion of any recovery. Dr. Bordas will receive approximately $12.56 million as his share of the federal recovery.
The United States previously settled similar allegations against Dignity Health (which operates Arroyo Grande Community Hospital, French Hospital Medical Center in San Luis Obispo, and Marian Regional Medical Center in Santa Maria) and Twin Cities Community Hospital and Sierra Vista Regional Medical Center, two subsidiaries of Tenet Healthcare Corporation, relating to payments they received from CenCal under the Adult Expansion program.
The partial resolution obtained in this matter was the result of a coordinated effort between the United States Attorney’s Office; the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; and the California Department of Justice, with assistance from HHS-OIG and DHCS. This case is being handled by Assistant United States Attorney Jack D. Ross of the Civil Fraud Section, and Trial Attorneys Mary Beth Hickox-Howard and Tiffany L. Ho of the Commercial Litigation Branch.
The investigation of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only and there has been no determination of liability.
California County Organized Health System and Three Health Care Providers Agree to Pay $68 Million for Alleged False Claims to California’s Medicaid ProgramRead the Press Release
Santa Barbara San Luis Obispo Regional Health Authority, dba CenCal Health (CenCal), a county organized health system (COHS) that contracts to arrange for the provision of health care services under California’s Medicaid program (Medi-Cal) in Santa Barbara County and San Luis Obispo County, California; Cottage Health System (Cottage), a not-for-profit hospital network operating in Santa Barbara County; Sansum Clinic (Sansum), a non-profit outpatient clinic operating in Santa Barbara County; and Community Health Centers of the Central Coast (CHC), a non-profit community health center operating in Santa Barbara and San Luis Obispo Counties, have agreed to pay a total of $68 million to resolve allegations that they violated the False Claims Act and the California False Claims Act by submitting or causing the submission of false claims to Medi-Cal related to Medicaid Adult Expansion under the Patient Protection and Affordable Care Act (ACA).
Pursuant to the ACA, beginning in January 2014, Medi-Cal was expanded to cover the previously uninsured “Adult Expansion” population – adults between the ages of 19 and 64 without dependent children with annual incomes up to 133% of the federal poverty level. The federal government fully funded the expansion coverage for the first three years of the program. Under contracts with California’s Department of Health Care Services (DHCS), if CenCal did not spend at least 85% of the funds it received for the Adult Expansion population on “allowed medical expenses,” CenCal was required to pay back to the state the difference between 85% and what it actually spent. California, in turn, was required to return that amount to the federal government.
The four settlements resolve allegations that CenCal, Cottage, Sansum, and CHC knowingly submitted or caused the submission of false claims to Medi-Cal for “Enhanced Services” that were purportedly provided to Adult Expansion Medi-Cal members: by Cottage between Jan. 1, 2014 and June 30, 2016; by Sansum and CHC between Jan. 1, 2015 and June 30, 2016; and by certain other healthcare providers between Jan. 1, 2014 and June 30, 2016. The United States and California alleged that the payments were not “allowed medical expenses” permissible under the contract between DHCS and CenCal; were pre-determined amounts that did not reflect the fair market value of any Enhanced Services provided; and/or the Enhanced Services were duplicative of services already required to be rendered. The United States and California further alleged that the payments were unlawful gifts of public funds in violation of the California Constitution.
As a result of the settlements, CenCal will pay $49.5 million, Cottage will pay $9 million, Sansum will pay $4.5 million, and CHC will pay $3.15 million to the United States. In addition, California will receive payments totaling $1.85 million.
“Medicaid expansion funds must be used for their intended purpose of providing health care services to low-income individuals,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When health care systems and providers knowingly misuse Medicaid funds, they will be held accountable.”
“These historic settlements demonstrate our steadfast efforts to eradicate fraud involving Medicaid Adult Expansion,” said U.S. Attorney Martin Estrada for the Central District of California. “Health care systems and providers are on notice that the False Claims Act provides us with a powerful tool to ensure that taxpayer-funded health care programs are used for patient care, and not for furtive financial gain.”
“Federal health care programs are an important resource for millions of Americans to receive medical care,” said Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to ensure that federal health care funds are used as intended and protected from fraud, waste, and abuse.”
“Medi-Cal is a lifeline that provides access to free or affordable healthcare services for millions of Californians and their families,” said California Attorney General Rob Bonta. “When any healthcare provider or agency defrauds the program, they break the public’s trust and put their own bottom line before the patients who count on them for honest, quality care and services. I am grateful to the USDOJ for its extensive efforts throughout the course of this investigation. The California Department of Justice and our law enforcement partners will continue to hold accountable those who defraud the Medi-Cal program, and protect those it serves.”
The civil settlements include the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Julio Bordas, CenCal’s former medical director. Under the act, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States and State of California ex rel. Bordas v. CenCal Health, Cottage Health System, Sansum Santa Barbara Clinic, Inc., Community Health Center of the Central Coast, et al. Mr. Bordas will receive approximately $12.56 million as his share of the federal recovery.
The United States previously settled similar allegations against Dignity Health and Twin Cities Community Hospital and Sierra Vista Regional Medical Center, two subsidiaries of Tenet Healthcare Corporation, relating to payments they received from CenCal under the Adult Expansion program.
The partial resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Central District of California, and the California Department of Justice, with assistance from HHS-OIG and DHCS.
The investigation of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the HHS at 800-HHS-TIPS (800-447-8477).
Trial Attorneys Mary Beth Hickcox-Howard and Tiffany L. Ho of the Civil Division’s Commercial Litigation Branch, Fraud Section and Assistant U.S. Attorney Jack D. Ross for the Central District of California handled this case.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Cottage Settlement Sansum Settlement CHC Settlement CenCal SettlementBurlington Man Sentenced to Thirty Years in Prison for Conspiracy to Distribute Methamphetamine and HeroinRead the Press Release
DAVENPORT, IA – A Burlington man was sentenced on June 23, 2023 to thirty years in federal prison for conspiracy to distribute methamphetamine and heroin.
According to court documents, and evidence presented at sentencing, Kourtney Melvin Connors, 35, was identified by law enforcement as a distributor of methamphetamine through an investigation that began in the spring of 2019. During the course of the investigation, numerous individuals identified Connors as a supplier of large quantities of methamphetamine and heroin in the Burlington and Quad Cities areas. In all Connors was held accountable for more than 4,500 grams of ice methamphetamine, nearly 500 grams of heroin, and 40 grams of fentanyl.
This sentence was ordered to be served consecutively with any sentence of imprisonment imposed in relation to a criminal case in Marathon County, Wisconsin. After completing his term of imprisonment, Connors will be required to serve five years of supervised release. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the multiple law enforcement agencies, including the Burlington Police Department, Davenport Police Department, Bettendorf Police Department.
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. In May 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.