Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 4 May 2023
St. Croix Jury Convicts 65 Year Old Man of Sex Trafficking and Transporting a Minor for ProstitutionRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that a St. Croix jury convicted James Phillip, 65, of St. Croix, of sex trafficking and transporting a minor for prostitution. The jury returned the guilty verdict after hearing a week of testimony. District Court Judge Wilma Lewis ordered Phillip to surrender to the custody of the U.S. Marshal Service on May 15, 2023, to begin serving his sentence.
“Sexual abuse impacts our entire community and exposes its victims to a lifetime of trauma. It is particularly heinous when sexual predators exploit our young children. I am therefore committed to prosecuting sex offenders to the fullest extent of the law in hopes of creating a safe community for our children”, said United States Attorney Delia L. Smith.
According to court documents and evidence presented at trial, Phillip and his co-defendant Zayvon Acoy aided and abetted each other in the sex trafficking and transporting of the minor victim for the purpose of engaging in prostitution. At trial, the victim testified that in 2017, when she was 17, she had a sexual relationship with Acoy, who was 27. The victim testified that during their short relationship, Acoy physically abused her and forced her into prostitution because he needed money. The victim further testified that on two occasions, Acoy took her to Phillip’s house where she had sex with Phillip as Acoy waited outside in his vehicle. After both encounters, Phillip paid Acoy $250.00 for having sex with the victim. The victim testified that she got tired of Acoy’s abuse and decided to report the encounters to local and federal law enforcement. On July 7, 2021, Acoy pleaded guilty to sex trafficking of a minor and was sentenced to 10 years imprisonment on February 14, 2022. For his conviction, Phillip faces a mandatory minimum of 10 years, and a maximum sentence of life imprisonment.
The case investigated by Homeland Security Investigation and the Virgin Islands Police Department and was prosecuted by Assistant United States Attorneys Everard Potter and Evan Rikhye. “Homeland Security Investigations is committed to protecting the victims of sexual exploitation in our community. In this instance, HSI brought the violator to justice after investigating a delicate but complex case by demonstrating our expertise in victim advocacy which is required in handling minor victims of sexual assaults,” said Assistant Special Agent in Charge Eugene Thomas.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Riverview Man Sentenced to 15 Years in Federal Prison for Two Armed RobberiesRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Jamaal Black (21, Riverview) to 15 years in federal prison for two armed robberies and discharging a firearm during one of the robberies. Black had pleaded guilty on January 26, 2023.
According to court documents, on January 30, 2021, Black entered a gas station in Riverview, pulled out a pistol with an extended magazine, aimed it at a clerk, and demanded money. Black attempted to go behind the counter when the clerk refused to give Black the money. Black engaged in an altercation with the clerk and shot the clerk in the arm during the struggle. The clerk fell to the ground. Black approached the clerk, aimed the firearm at the clerk, and repeated the demand for money. The clerk, bleeding profusely from the gunshot wound, complied. The clerk gave Black the contents of the cash register and Black escaped the gas station with $200.
Two months later, on March 14, 2021, Black committed another robbery. Black used a juvenile girl to arrange for a marijuana transaction. The girl went to a local drug dealer’s home under the guise of purchasing marijuana. Black approached the dealer when the dealer retrieved the marijuana for the sale. Black pressed a firearm to the drug dealer’s head and demanded the marijuana. The drug dealer threw the marijuana at Black and retreated back into the home.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Charlie D. Connally.
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.
Remaining Defendants in Middle Georgia Armed Drug Trafficking Organization Sentenced to PrisonRead the Press Release
MACON, Ga. – The leaders of an armed drug trafficking ring centered in Warner Robins, Georgia, were sentenced to federal prison this week for their crimes.
Antoine Riley aka “Bear,” 45, of Warner Robins, was sentenced as a career offender to serve 180 months in prison to be followed by three years of supervised release to run consecutively to any term of imprisonment imposed in a pending case in Taylor County Superior Court, after he previously pleaded guilty to distribution of cocaine base. Co-defendant Antonio Raines, 39, of Warner Robins, was sentenced to serve 97 months in prison to be followed by three years of supervised release, after he previously pleaded guilty to distribution of cocaine base. The sentences were handed down by Chief U.S. District Judge Marc Treadwell on May 3. There is no parole in the federal system.
“Armed repeat felons will face federal consequences for their continued criminal activity,” said U.S. Attorney Peter D. Leary. “Thanks to the efforts of the local, state and federal agencies with the Organized Crime Drug Enforcement Task Force, another armed criminal group has been held accountable.”
“These career criminal drug traffickers posed a significant threat to the quality of life in our communities. The dismantling of this organization makes our communities a safer place today,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.
The following codefendants have pleaded guilty and been sentenced:
- Brittany Smith, 29, of Warner Robins, was sentenced to serve 135 months in prison on Jan. 4, after previously pleading guilty to possession with intent to distribute methamphetamine;
- Emanuel Ivey, 36, of Warner Robins, was sentenced to serve 87 months in prison on Feb. 9, after previously pleading guilty to distribution of cocaine base;
- Joseph Day, 49, of Warner Robins, was sentenced to serve 46 months in prison on Feb. 27, 2023, after previously pleading guilty to distribution of cocaine base;
- Desmond Griffin, 30, of Warner Robins, was sentenced to serve 24 months in prison on April 6, 2023, after previously pleading guilty to distribution of cocaine base;
- Obie Wright, 67, of Warner Robins, was sentenced to serve 18 months in prison on April 6, 2023, after previously pleading guilty to distribution of cocaine base; and
- Latanya Williams, 41, of Warner Robins, was sentenced to serve three years of probation on April 6, 2023, after previously pleading guilty to making false statements.
According to court records, federal agents began investigating Riley for distributing large quantities of crack cocaine out of several stash houses in the Warner Robins community; he was known to be armed. Recorded conversations and text messages between Riley and his codefendants revealed Riley and Raines as the leaders of the criminal operation. Several controlled purchases of cocaine were made, including a multi-kilogram transaction involving Riley while he was under surveillance. Riley was taken into custody on Feb. 12, 2021, by Bibb County Sheriff’s Office deputies after attempting to flee while in possession of a large amount of cocaine. A search warrant was executed that same day at Riley’s residence at McCall Circle in Warner Robins, and agents recovered a stolen Glock 9mm handgun, an extended Glock magazine, a .357 caliber revolver and a large quantity of cocaine. Riley told agents he was running another stash house on Vinson Drive in Warner Robins. Riley is being held accountable for at least 4.717 kilograms of cocaine, 45.68 grams of cocaine base and two firearms. Riley has a lengthy criminal history to include two prior convictions for possession with intent to distribute controlled substances and obstruction of an officer.
Raines was named in a separate armed drug distribution and dog fighting investigation in the Middle District of Georgia; for more information about that case, please visit https://www.justice.gov/usao-mdga/pr/final-defendant-multi-state-dog-fighting-drug-conspiracy-case-pleads-guilty.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This effort is part of an Organized Crime Drug Enforcement Task Force (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 case was investigated by the DEA, FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Monroe County Sherriff’s Office, the Bibb County Sherriff’s Office and the Warner Robins Police Department.
Assistant U.S. Attorney Alex Kalim prosecuted the case.
Port St. Lucie Tattoo Artist Pleads Guilty to Producing Child Sexual Abuse MaterialRead the Press Release
MIAMI – Dustin Singleton, 42, of Hobe Sound, pleaded guilty before U.S. District Court Judge Aileen M. Cannon to three counts of producing child sexual abuse material, possession with intent to distribute methamphetamine, and possession of a firearm and ammunition as a convicted felon.
On April 29, 2022, following a traffic stop in Stuart, Fla., Martin County Sheriff’s Office (MCSO) detectives found 32.86 grams of methamphetamine with a purity level of 98%, approximately 5 grams of cocaine, less than a gram of fentanyl, approximately 195 grams of marijuana, several glass pipes, hypodermic needles, a loaded Smith & Wesson, Bodyguard .380 caliber semi-automatic pistol, a loaded Glock type 9mm pistol built from a Polymer80 PF940C kit (“Glock clone”), several unused baggies, several pill bottles with various controlled substances, $1,104.00 in U.S. currency, 10 cellphones, and three tablets in Singleton’s vehicle. Singleton is a convicted felon and prohibited by law from possessing firearms.
In July 2022, a Homeland Security Investigations (HSI) agent and two MCSO detectives received information that tattoo artist Singleton aka “Greenhouse” exchanged narcotics and tattoos for sexual activity with minor females at his Port St. Lucie tattoo shop. Two rounds of search warrants were obtained – the first one for narcotics and the second one for child sexual abuse material, which targeted Singleton’s electronic devices. Forensic examinations of the devices revealed numerous images of Singleton and Elijah Daniel Shaw, both engaging in sexually explicit activity with a freshly tattooed 13-year-old minor female victim—recorded inside the tattoo shop.
On August 2, 2022, law enforcement arrested Shaw who identified images/videos of himself, Singleton, and the 13-year-old minor female victim and confirmed that the video was recorded inside Singleton’s tattoo parlor. A HSI special agent applied for additional search warrants for Singleton’s and Shaw’s social media and iCloud accounts. Forensic Examiners located numerous videos of child sexual abuse material, spanning six hours, including videos of Singleton tattooing the 13-year-old, and later holding a smoking glass pipe for the victim, while he and Shaw both engaged in sexually explicit activity with her. Investigators located videos revealing two additional minor victims, each 17 years of age, engaging in sexually explicit activity with Singleton. Singleton had secretly recorded himself having sex with the minors, using his tattoo shop’s video surveillance system, which he saved in his iCloud.
For each of the three counts of producing child sexual abuse material, Singleton faces a mandatory minimum sentence of 15 years in prison and up to 30 years in prison followed by a lifetime of supervised release. In addition, he will be required to register as a sex offender.
For the drug distribution charge, Singleton faces up to 20 years in prison, followed by at least 3 years of supervised release.
For the firearm charge, Singleton faces up to 10 years in prison, followed by supervised release for up to 3 years.
Elijah Daniel Shaw, on January 25, pleaded guilty to producing and possessing child sexual abuse material, before U.S. Magistrate Judge Melissa Damian, sitting in Miami. Shaw is scheduled to be sentenced by U.S. District Court Judge Aileen M. Cannon on June 27, in Fort Pierce.
United States Attorney Markenzy Lapointe for the Southern District of Florida and acting Special Agent in Charge Michael E. Buckley, HSI, Miami, announced the guilty plea.
HSI Fort Pierce Office investigated the case, with assistance from Martin County Sheriff’s Office, St. Lucie County Sheriff’s Office, and Port St. Lucie Police Department. Assistant U.S. Attorneys Carmen Lineberger and Michael Porter are prosecuting it.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about the PSC initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-14048.
###
Podiatrist Sentenced for Fraudulently Billing Medicare Nearly $2M Under False IdentityRead the Press Release
A Michigan podiatrist was sentenced today to seven years in prison for orchestrating a health care fraud conspiracy that resulted in almost $2 million in false and fraudulent claims being submitted to Medicare, as well as for falsifying records and identity theft.
According to court documents, Dr. Kenneth Mitchell, 61, of Wayne County, owned and operated a podiatry practice in Michigan specializing in on-site foot care provided to adult foster home residents. Mitchell had previously been suspended by Medicare for suspicious billing practices, banning him from receiving any Medicare funds while the suspension remained in place.
After his own Medicare suspension went into effect, Mitchell created a new entity called Urban Health Care Group PLLC (Urban). Mitchell then convinced another doctor – one who was not subject to suspension and therefore could bill Medicare – to enroll in the Medicare program and place her name on corporate and banking documents relating to Urban. Under this arrangement, Mitchell submitted bills to Medicare falsely stating that the other doctor provided the services to patients. Mitchell’s deception enabled him to bill Medicare through Urban for nearly $2 million in services that were false or fraudulent.
After Mitchell was indicted, Medicare suspended Urban’s billing privileges. Mitchell then created false statements, even going so far as to forge at least one signature on a fraudulent letter sent to the U.S. Department of Health and Human Services (HHS), to impede the government’s ongoing investigation and contradict the government’s case against him.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Deputy Inspector General for Investigations Christian J. Schrank of the HHS Office of the Inspector General (HHS-OIG) made the announcement.
HHS-OIG investigated the case.
Trial Attorneys Kathleen Cooperstein and Shankar Ramamurthy of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Plymouth Man Indicted on Federal Civil Rights, Arson ChargesRead the Press Release
ST PAUL, Minn. – A Plymouth man has been indicted on one count of arson and one count of damage to religious property, announced U.S. Attorney Andrew M. Luger.
According to court documents, on April 23, 2023, at approximately 7:00 p.m., Little, 36, started a fire in the bathroom of the Masjid Omar Islamic Center. On April 24, 2023, just before 7:00 p.m., Little was captured on surveillance video entering the Masjid Al Rahma. Shortly thereafter, a fire broke out on the third floor of the mosque, and the building was evacuated.
According to court documents, prior to the arson incidents, on January 5, 2023, Little was captured on surveillance video entering the Minneapolis district office of a U.S. Representative. Little spray-painted the text “500” on the front door of the U.S. Representative’s office and photographed the graffiti. Later that same day, Little spray-painted the same text (“500”) on the side of a patrol vehicle assigned to a Somali Minneapolis Police Department officer as well as in an entryway at a marketplace, colloquially referred to as the “Somali Mall.”
Little, who was arrested in Mankato on April 29, was arraigned this morning in U.S. District Court before Magistrate Judge Elizabeth Cowan Wright. He was ordered to remain in detention pending further court proceedings.
This case is the result of an investigation conducted by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Minneapolis Police Department, the Hennepin County Sheriff’s Office, with assistance from the Justice Department’s Civil Rights and National Security Divisions, the Blue Earth County Sheriff’s Office, and the Hennepin County Attorney’s Office.
Assistant U.S. Attorney Manda M. Sertich is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Puerto Rican Man Sentenced to 108 Months on Cocaine Possession ConvictionRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Sammy Monell-Osorio, 31, of Puerto Rico, was sentenced by Chief District Court Judge Robert A. Molloy to 108 months of imprisonment on his conviction of possession with intent to distribute a controlled substance while on board a vessel subject to the jurisdiction of the United States. Judge Molloy also sentenced Monell-Osorio to five years of supervised release and ordered him to pay a special assessment of $100.00.
According to court documents, in the early morning hours of February 28, 2023, Customs and Border Protection Marine Interdiction officers detected a vessel traveling without navigational lights on the west side of St. Thomas heading towards Puerto Rico. Osorio, the captain of the vessel, attempted to evade the officers when they ordered him to stop. The occupants of Osorio’s vessel then threw a black bag overboard before the vessel was disabled for failure to heave to the officer’s commands. The black bag containing 18 kilograms of cocaine was later retrieved from the ocean.
The U.S. Customs and Border Protection Marine Interdiction Unit and Homeland Security Investigations investigated this case and Assistant United States Attorneys Everard Potter and Natasha Baker prosecuted the case.
The prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Oklahoma City Woman Pleads Guilty to Embezzling from Local CompanyRead the Press Release
OKLAHOMA CITY – Yesterday, STEPHANIE FANNIN, 45, of Oklahoma City, pleaded guilty to a one-count felony information charging her with wire fraud, announced United States Attorney Robert J. Troester.
The information was filed against Fannin in federal court on April 12, 2023. It alleges that from 2018 until April 2021, Fannin served as the office manager of General Lighting and Sign Services (GLSS). In her role as the office manager, Fannin had complete access to GLSS’s operating account and managed accounts payable and receivable for GLSS’s business transactions. She also created and disbursed invoices, tracked licenses of employed contracted workers, and managed the payroll of GLSS employees.
Yesterday, Fannin pleaded guilty to the information before U.S. District Judge Joe Heaton. At the hearing, Fannin admitted that between early 2018 and April 2021, she issued approximately 294 unauthorized checks made payable to her drawn on GLSS’s operating account, and deposited each of these checks into her personal bank account to pay for personal items and services. She further admitted that she used computer software to make it appear that the unauthorized checks had been made to GLSS’s vendors. Fannin admitted that she embezzled approximately $1,432,260.03 from GLSS.
At sentencing, Fannin faces up to 20 years in federal prison, a $250,00.00 fine, and 3 years of supervised release. She will also be ordered to pay restitution to the victim company. A sentencing hearing will be scheduled in approximately 90 days.
This case is a result of an investigation by the United States Secret Service and the Internal Revenue Service – Criminal Investigation. It is being prosecuted by Assistant U.S. Attorney Charles Brown.
Reference is made to court filings for further information.
Oklahoma City Woman Convicted of Federal Drug Trafficking, Money Laundering, and Financial Crimes in Eastern District of TexasRead the Press Release
SHERMAN, Texas – An Oklahoma City, OK woman has been convicted of various federal crimes related to an international drug trafficking conspiracy in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Debra Lynn Mercer-Erwin, 60, was found guilty by a jury following a two-week trial before U.S. District Judge Amos Mazzant. Mercer-Erwin was convicted of money laundering; wire fraud; conspiracy to manufacture and distribute cocaine; and conspiracy to manufacture and distribute cocaine knowing it would be imported into the United States.
“In the aircraft world, planes registered in the United States and displaying a ‘N’ tail-number, are coveted as being properly vetted and trusted to legally operate around the world. Mercer-Erwin found ways to exploit the registration process in order to profit from illegally obtained money being paid for her services,” said U. S. Attorney Featherston. “Mercer-Erwin became a drug dealer when she became aware of planes she had registered were being used to transport large quantities of cocaine. Mercer-Erwin knew that many of her clients were in the illegal drug business and she hid their identities and the sources of their money in order to reap a large profit. She became a money launderer when she created fake sales of planes that were not actually for sale in order to hide and move drug money. Transnational criminal organizations require assistance to operate in the U.S. and Mercer-Erwin facilitated the drug dealing by exploiting the plane registration process.”
“This investigation required cooperation between our international partners, investigating agents and our prosecutors,” added U.S. Attorney Featherston. “They did an amazing job putting the case together, and they are to be commended for their work.”
“This guilty verdict stems from the collaborative efforts of our trusted international, federal, state and local law enforcement partners,” said Lester R. Hayes Jr., Special Agent in Charge HSI Dallas. “Disrupting the illegal activities of transnational criminal organizations is one of HSI ‘s highest priorities and is enhanced by our partnerships at all levels. After listening to testimony of high-ranking leaders of the Columbian and Nicaraguan governments, I am convinced this investigation has significantly decreased the flow of narcotics smuggled into the U.S.”
“This investigation and successful prosecution serves as an example of how federal, state, and international law enforcement agencies work together to take down those involved in large scale money laundering in support of international drug trafficking organizations,” said Special Agent in Charge Trey McClish of the Dallas Field Office of the Department of Commerce’s Office of Export Enforcement (OEE). “OEE and our law enforcement partners will continue to identify, investigate, and dismantle transnational criminal organizations who pose a threat to our national security.”
According to information presented in court, between 2010 and 2020, Mercer-Erwin conspired with others to enable the distribution of cocaine in the United States by purchasing and illegally registering aircraft under foreign corporations and other individuals for export to other countries. Non-US citizens are allowed to register an aircraft with the FAA if the aircraft is placed in a trust that is managed by a U.S. trustee. Mercer-Erwin was the owner of Wright Brothers Aircraft Title (WBAT) and Aircraft Guaranty Corporation (AGC). WBAT often served as an escrow agent for transactions involving AGC and was the designated party responsible for FAA filings related to AGC aircraft. AGC, a corporation at that time operating out of Onalaska, Texas, an east Texas town in the Eastern District of Texas, without an airport. AGC acted as trustee to over 1,000 aircrafts with foreign owners. This allowed the foreign nationals to receive an “N” tail number for their aircrafts. The “N” tail number is valuable because foreign countries are less likely to inspect a U.S.-registered aircraft for airworthiness or force down an American aircraft.
According to prosecutors, several of the illegally registered and exported aircraft were used by transnational criminal organizations in Colombia, Venezuela, Ecuador, Belize, Honduras, Guatemala, and Mexico to smuggle large quantities of cocaine destined for the United States. The illicit proceeds from the subsequent drug sales were then transported as bulk cash from the United States to Mexico and used to buy more aircraft and cocaine. Aircraft purchases were typically completed by foreign nationals working for transnational criminal organizations who came to the United States with drug proceeds and purchased aircraft valued in the hundreds of thousands of dollars.
Mercer-Erwin exploited her position as trustee to circumvent U.S. laws by disguising the true identity of the foreign owners, failing to conduct due diligence as to the identity of the foreign owners, providing false aircraft locations, and falsifying and forging documents. Trial testimony revealed the investigation was initiated after aircraft filing irregularities were discovered in tandem with numerous AGC aircraft found carrying substantial amounts of cocaine. The testimony further revealed additional aircraft in AGC’s trust were not seized but found by foreign officials destroyed or abandoned near clandestine landing strips in several South American countries. Some of these wrecked or abandoned aircraft still contained muti-ton kilos of cocaine onboard, and few, if any, of the seized or destroyed aircraft were in the location they were reported to be located. When authorities confronted Mercer-Erwin as the representative of AGC, she refused to comply and each time law enforcement would seize an AGC registered aircraft laden with drugs, Mercer-Erwin attempted to distance herself from the narcotic’s trafficking by transferring ownership of the aircraft using fictitious information to conceal the nature, location, source, ownership, and control of the aircraft.
Additionally, Mercer-Erwin and co-defendants participated in a series of bogus aircraft sales transactions in order to conceal the movement of illegally obtained funds. The co-defendants would provide buyers and investors with fabricated documents and supply false representations regarding the bogus sale of an unsellable aircraft. The aircraft was unsellable because, unbeknownst to the buyers, the true owners of the aircraft had no knowledge or intention of selling the aircraft. Other bogus sales presented to buyers consisted of aircraft that was owned by a commercial airline and previously decommissioned and inoperable. None of the aircraft presented to the buyers were for sale.
The defendants would convince the buyer to place a deposit into an escrow account with WBAT, the title company owned by Mercer-Erwin, pending the completion of the sale. Once the money was placed in WBAT’s escrow account, the buyers were responsible for the interest accrued, and an escrow fee would be charged. In a typical sale, the deposit would remain in the escrow account. However, Mercer-Erwin would transfer the money from the escrow account to bank accounts controlled by the co-conspirators.
Since the aircraft was not truly for sale, the purchase of the aircraft would inevitably fall through, and the deposit would have to be returned. The co-conspirators would repeat the process by luring another buyer for the purchase of another unsellable aircraft. Each transaction would pay for the previous one, and Mercer-Erwin would receive an escrow fee ranging from $25,000 to $150,000 for her participation in the scheme.
Mercer-Erwin was the only defendant to proceed to trial. Co-defendants Kayleigh Moffett and Carlos Rocha Villaurrutia pleaded guilty on April 10, 2023. Moffett pleaded guilty to wire fraud and conspiracy to commit export violations, and Villaurrutia pleaded guilty to conspiracy to manufacture and distribute cocaine knowing it would be unlawfully imported into the United States; conspiracy to commit money laundering; and conspiracy to commit export violations. Four other defendants have active arrest warrants but are not in custody and are presumed innocent until proven guilty.
Mercer-Erwin was indicted by a federal grand jury in February 2021. She faces up to life in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This is an Organized Crime Drug Enforcement Task Force (OCDETF) case and is being investigated by Homeland Security Investigations (Dallas, Brownsville, Laredo, Guatemala, Colombia, Honduras, Mexico, and Transnational Criminal Investigative Units); Department of Commerce, Bureau of Industry and Security (Dallas and Houston offices); Department of Transportation Office of Inspector General (DOT-OIG); Office of Export Enforcement; Polk County Constable Precinct 1; Southeast Texas Export Investigations Group; Internal Revenue Service; Federal Aviation Administration (FAA); Estado Mayor De La Defensa Nacional Guatemala; Fuerza Aerea Guatemalteca; and Fuerza Aerea Colombiana. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was prosecuted by Assistant U.S. Attorneys Ernest Gonzalez, Heather Rattan, and Lesley Brooks.
###
Ohio Man Pleads Guilty to Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Thomas Matthew Blankenship, 39, of Akron, Ohio, pleaded guilty today to possession with intent to distribute 40 grams or more of fentanyl and a quantity of methamphetamine, and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on June 10, 2022, law enforcement officers arrested Blankenship on a warrant as he left a residence in the Pecks Mill area of Logan County, West Virginia. After handcuffing Blankenship, officers found approximately 95 grams of fentanyl, 11 grams of methamphetamine, and a loaded Smith and Wesson, model M&P 9 Shield, 9mm semi-automatic pistol on his person. Blankenship admitted that he possessed the drugs and intended to distribute them. Blankenship further admitted that he possessed the pistol to protect himself, the drugs, and any money from selling the drugs.
Blankenship has an extensive criminal history that includes numerous prior felony convictions for felonious assault, improperly discharging a firearm at or into a habitation, tampering with evidence, trafficking in heroin, being a felon in possession of a firearm, and failure to comply with an order or signal of a police officer.
Blankenship is scheduled to be sentenced on August 3, 2023, and faces a mandatory minimum of 10 years and up to life in prison, four years and up to a lifetime of supervised release, and a $5.25 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the Logan County Sheriff’s Office.
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-197.
###
New Hampshire Man Sentenced for Using Stolen Identities to Fraudulently Purchase VehiclesRead the Press Release
BOSTON – A New Hampshire man was sentenced today in federal court in Boston for his role in a scheme to use the stolen identities of United States citizens from Puerto Rico to fraudulently purchase vehicles and apply for and utilize credit cards.
Ricardo Acevedo, 34, of Manchester, N.H., was sentenced by U.S. District Court Judge Patti B. Saris to six years in prison and three years of supervised release. On Jan. 13, 2023, Acevedo pleaded guilty to conspiracy to commit wire fraud, wire fraud, aggravated identity theft and false representation of a Social Security number.
Acevedo and multiple co-defendants were charged by criminal complaint in September 2020 and subsequently indicted by a federal grand jury in October 2020. The defendant was also charged in the State of New Jersey.
According to court documents, between October 2017 and January 2019, Acevedo visited Massachusetts car dealerships to purchase late-model vehicles and applied for 100% financing. In support of the applications, Acevedo provided stolen biographical information of real United States citizens, fraudulent Puerto Rico driver’s licenses and Social Security cards in those identities, as proof of identification. Acevedo used the stolen identities to illegally open bank accounts and credit cards and to purchase vehicles, many of which were exported out of the United States. Acevedo used stolen identities to obtain car loans and purchase at least 19 vehicles, resulting in losses between $550,000 and $1.5 million.
United States Attorney Rachael S. Rollins; Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in New England; John E. Mawn, Jr., Interim Colonel of the Massachusetts State Police; and Brockton Police Chief Brenda Perez made the announcement today. Assistance was provided by the Lowell, Lawrence, Methuen, Haverhill, Woburn and Dartmouth Police Departments. Assistant U.S. Attorneys Elianna J. Nuzum and Adam W. Deitch of Rollins’ Criminal Division prosecuted the case.
The District of Massachusetts investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity and benefit fraud schemes.
The details contained in the indictment are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New Bedford Man Pleads Guilty to Child Exploitation ChargesRead the Press Release
BOSTON – A New Bedford man pleaded guilty today in federal court in Boston to receiving and possessing over 1,500 files of child pornography.
Robert David Austin, 42, pleaded guilty to receipt and possession of child pornography. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Aug. 16, 2023. Austin was arrested and charged in December 2021.
Austin engaged with a number of groups on messaging applications through which child pornography is disseminated. Austin also possessed child pornography on two cell phones and a tablet. Approximately 1,252 images and 450 videos depicting child pornography were located across all three of the devices. Overall, the child pornography files depicted victims as young as infants through approximately 12 years old, with some files depicting bondage and vaginal and oral penetration of the victims.
The charge of receipt of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of possession of child pornography provides for a sentence of up to 20 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Michael J. Krol, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorneys J. Mackenzie Duane, Meghan C. Cleary and Suzanne Sullivan Jacobus of Rollins’ Criminal Division are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Multiple Men Indicted in Utah for Firearm Offenses, Including Allegedly Attempting to Smuggle 34 Guns into MexicoRead the Press Release
Salt Lake City, Utah – A federal grand jury in Utah returned an indictment charging five Salt Lake County residents, including two foreign nationals, with firearm offenses after speaker boxes full of guns were confiscated at the Mexico border in Eagle Pass, Texas.
Today’s announcement includes charges enacted as part of the Bipartisan Safer Communities Act signed into law last year.
According to court documents, between October 2022 and March 2023, in the District of Utah, Javier Catalan Bahena, 34, of Salt Lake City, Utah, Erasmo Martinez, 43, of Salt Lake City, Utah, Alvaro Martinez, 23, of Magna, Utah, Filiberto Tapia Ocampo, 50, of West Valley City, Utah, and Oscar Martinez, 24, of West Valley City, Utah, conspired with each other, and against the United States to deceive a licensed firearm dealer during the illegal purchasing of firearms. As charged in the indictment, in January 2023, Ocampo purchased two Beretta M9 pistols and a Ruger rifle using Catalan Bahena’s credit card and stated on an ATF form he was the actual purchaser of the firearms. Between February 3, 2023, and March 16, 2023, Erasmo Martinez purchased a Zastava ZPA M70 rifle from Oscar Martinez, which was later recovered at the border. In February 2023, Alvaro Martinez purchased a Beretta M9 using Catalan Bahena’s credit card and stated on an ATF form he was the actual purchaser of the firearm. The Beretta M9 was also later recovered at the border. In March 2023, Alvaro Martinez purchased an Escort Rifle and stated on an ATF form that he was the actual purchaser of the firearm. Approximately nine days later, the Escort Rifle was recovered at the border in Eagle Pass, Texas. Between March 7, 2023, and March 16, 2023, in the District of Utah, Catalan Bahena and Erasmo Martinez arranged for drivers in Salt Lake City, Utah, to transport speaker boxes full of firearms to Mexico. Subsequently, the drivers were stopped in Eagle Pass, Texas, and 34 firearms were discovered and seized.
Javier Catalan Bahena, Erasmo Martinez, Alvaro Martinez, Filiberto Ocampo, and Oscar Martinez are charged with conspiracy to make false statements during acquisition of firearms. Additional individual charges include but are not limited to; smuggling goods from the United States; straw purchase of a firearm; and false statement during the acquisition of firearms. The defendants had their initial court appearances before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in Salt Lake City, Utah.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
The case is being investigated jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives and West Valley City Police Department.
An Assistant U.S. Attorney for the District of Utah is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Missouri Nurse Admits Taking Leftover Fentanyl from HospitalRead the Press Release
CAPE GIRARDEAU – A registered nurse on Thursday admitted illegally obtaining and using fentanyl from the hospital where she worked.
Lindsey M. Francis, now 35, was a nurse at Saint Francis Medical Center in Cape Girardeau at the time of the crime. On Jan. 15, 2022, a colleague discovered a used syringe in a locker room in the hospital’s emergency department. A subsequent investigation revealed that a vial of fentanyl had been tampered with. Confronted by hospital staff, Francis said that on that occasion and others since June or July of 2021, she had taken and injected leftover fentanyl due to work and personal stress, her plea agreement says. The total amount of fentanyl diverted was determined to be less than 4 grams.
Francis pleaded guilty in U.S. District Court in Cape Girardeau to one count of unlawfully acquiring a controlled substance, a felony. The charge is punishable by up to four years in prison, a $250,000 fine or both.
Francis is scheduled to be sentenced August 1.
The case was investigated by the Drug Enforcement Administration. Assistant U.S. Attorney Timothy Willis is prosecuting the case.
Missouri Felon Sentenced to 66 Months in Prison for Selling 7 Machine GunsRead the Press Release
CAPE GIRARDEAU – A man from Dunklin County, Missouri, was sentenced Thursday to five and one-half years in prison for selling seven devices that convert AR-15-style rifles into fully automatic weapons.
U.S. District Judge Stephen N. Limbaugh, Jr. ordered the sentence for Lamad Cross, 24, of Kennett, Missouri, to run consecutive to any sentence he receives for violating his probation in a Dunklin County Circuit Court case. Cross pleaded guilty in 2021 in that case to resisting arrest by fleeing.
“We’ve seen a dramatic increase in the use of these devices on firearms in our area,” said U.S. Attorney Sayler A. Fleming. “They are incredibly dangerous, and anyone contemplating their purchase or use needs to know that we will vigorously prosecute these cases.”
“The possession and use of machine gun conversion devices is an emerging threat to the safety of our communities and the law enforcement officers who are sworn to protect them. This investigation and today’s sentencing send a very clear message that the use of these devices will not be tolerated,” said Bernard Hansen, Special Agent in Charge of ATF’s Kansas City Field Division.
The investigation began when police in Cape Girardeau recovered a Glock pistol that had a “switch” installed that converted it to an automatic weapon. Investigators learned that a straw purchaser bought the pistol for Cross, who is a convicted felon and barred from purchasing or possessing firearms, Cross’ plea agreement says. He was also on probation from two state criminal cases at the time.
A confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives contacted Cross via social media and asked about buying a Glock switch. Cross instead offered a drop-in “auto sear” that converts an AR-15-style rifle into an automatic weapon. On Sept. 19, 2022, Cross’ girlfriend delivered the device in exchange for $800. Cross later said he would send videos showing how to install the auto sear and said he could offer a lower price for bulk purchases.
On Sept. 27, 2022, Cross met with the informant in Cape Girardeau and sold three auto sears for $650 each. Cross also said that he was thinking about obtaining AR-15s so he could install the auto sears and then sell automatic rifles.
On Oct. 12, 2022, Cross agreed to sell three more auto sears for a total of $1,900 and used a different woman to deliver them to an undercover ATF agent.
He also said he’d sold two of the devices to someone else, although that claim has not been verified.
Although most of the devices were recovered by law enforcement, “Cross’s conduct posed a tremendous risk to the public,” Assistant U.S. Attorney Timothy Willis wrote in a sentencing memo.
Glock switches and auto sears, even if not installed in a firearm, are considered machine guns under federal law.
Cross pleaded guilty in U.S. District Court in Cape Girardeau in January to one felony charge of unlawful transfer of a machine gun.
During a January 5 press conference in St. Louis, local and federal officials warned of an increase in the recovery and use of Glock switches and auto sears, which make firearms difficult to control and “inherently dangerous.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Timothy Willis is prosecuting the case.
Middlesex County Man Sentenced to 97 Months in Prison for Role in Heroin and Fentanyl Drug Trafficking OrganizationRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was sentenced today to 97 months in prison and four years of supervised release for leading a drug trafficking organization that operated out of a drug mill located in the Bronx, New York. Luis Cabrera, 38, of Perth Amboy, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court on Aug. 24, 2022, to an information charging him with conspiracy to distribute and possess with intent to distribute heroin, fentanyl, and methamphetamine.
Mexican citizen admits trafficking fentanyl in Kalispell areaRead the Press Release
MISSOULA —A Mexican citizen admitted today to allegations that he trafficked fentanyl in the Kalispell area after law enforcement seized 12,000 fentanyl pills, more than $72,000 in U.S. currency and a pistol from his vehicle, U.S. Attorney Jesse Laslovich said.
Cuauhtemoc Cervantes Samaniego, 30, pleaded guilty to a superseding information charging him with possession with intent to distribute fentanyl. Samaniego faces a mandatory minimum of five years to 40 years in prison, a $5 million fine and at least four years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. A sentencing date was set for Sept. 21 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Samaniego was detained pending further proceedings.
The government alleged in court documents that Samaniego trafficked fentanyl in the Kalispell community from about May 2022 through Oct. 5, 2022. Investigators received information in October that Samaniego was in Kalispell with a large amount of fentanyl to distribute. At about 2:50 a.m. on Oct. 5, law enforcement officers located Samaniego at a gas station in Kalispell and searched his vehicle. Officers found 12,000 fentanyl pills, $72,687 in U.S. currency and a 9mm pistol. An individual later told an agent that Samaniego had met with a person prior to law enforcement stopping him and that Samaniego had provided the person fentanyl pills. The person gave Samaniego a firearm.
Assistant U.S. Attorney Jennifer S. Clark is prosecuting the case. Homeland Security Investigations and the Montana Highway Patrol conducted the investigation.
XXX
Mexican National Sentenced to More than 12 Years for Drug Trafficking in the Tri CitiesRead the Press Release
Richland, Washington – United States District Judge Mary K. Dimke sentenced Jose Mendoza-Ruelas, 38, to 150 months in federal prison after his guilty plea to Conspiracy to Distribute 50 Grams or More of Actual (Pure) Methamphetamine, 400 Grams or More of Fentanyl, and 5 Kilograms or More of Cocaine. Mendoza-Ruelas, who is from Mexico, also will serve 5 years of federal supervision after he is released from federal custody.
According to information disclosed in court documents and proceedings, Mendoza-Ruelas was part of a large drug trafficking organization that involved a legitimate landscaping business used to cover up the organization’s drug trafficking activities. During the course of the investigation, the Drug Enforcement Administration recovered large quantities of methamphetamine, fentanyl, and cash. Mendoza-Ruelas further made statements that the drug trafficking organization would give him 50,000 to 60,000 fentanyl laced pills in addition to large quantities of methamphetamine. Mendoza Ruelas was negotiating a 30 pound methamphetamine delivery when he was taken into custody. Around that time, DEA, in partnership with local law enforcement, executed numerous search warrants to include at the landscaping compound. There, law enforcement recovered over $160,000 in U.S. currency secreted inside a compartment in the wall. Law enforcement also recovered several automatic rifles armed with loaded barrel drums hanging on the wall. This compound was utilized to intake and process large drug shipments for distribution.
Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, stated “Drug distribution continues to be a scourge in the Tri-Cities and elsewhere.” U.S. Attorney Waldref continued: “I commend the collaborative efforts of state, local, and federal law enforcement to identify Mr. Mendoza-Ruelas’s drug trafficking activities and to prevent him from further distributing this poison in our communities. The Tri-Cities area and Eastern Washington are safer and stronger as a result of today’s sentence.”
Mr. Mendoza-Ruelas will spend a significant amount of time in prison due to the dedication of our state, local and federal partners who continue to work to keep our communities safe, healthy and free of individuals like him,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division.
This case was investigated by the DEA Tri-Cities, Border Patrol, the METRO Drug Task Force, Richland Police Department, Kennewick Police Department, Pasco Police Department, and West Richland Police Department. This case was prosecuted by Assistant United States Attorney Stephanie Van Marter.
4:21CR06028-MKD-1
Mexican National Charged with Fentanyl and Methamphetamine Distribution in Madera CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jesus Cota Verdugo, 21, of Mexico, charging him with possession with intent to distribute methamphetamine and fentanyl and possession of a firearm in furtherance of drug trafficking, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 11, 2023, Verdugo crashed his vehicle into another vehicle in Chowchilla and then fled from the scene. Law enforcement officers recovered his vehicle on the side of the road with the keys in the ignition and running. Inside the vehicle, officers recovered methamphetamine, fentanyl, an FN Scar rifle, an Aero Precision AR rifle, an Anderson rifle, an HK AR pistol, and a Springfield XD-9 pistol.
This case is the product of an investigation by the Chowchilla Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Arin C. Heinz is prosecuting the case.
If convicted, Verdugo faces a maximum statutory penalty of a mandatory minimum of five years in prison, a maximum of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Massachusetts and Connecticut Men Sentenced for Ponzi and Tax Fraud SchemesRead the Press Release
BOSTON – Two men were sentenced yesterday in federal court in Boston for a multi-year fraud scheme that caused more than $6 million in losses to investors.
Thomas D. Renison, 69, of South Glastonbury, Conn., was sentenced by U.S. Senior District Court Judge George A. O’Toole, Jr. to four years in prison and three years of supervised release. Renison was also ordered to pay forfeiture of $526,120 and restitution of $6,240,983. In October 2020, Renison pleaded guilty to one count of conspiracy to commit wire fraud and two counts of filing false tax returns.Timothy J. Allcott, 65, of Peabody, Mass., was sentenced by Judge O’Toole to 30 months in prison and three years of supervised release. Allcott was also ordered to pay forfeiture of $5,052,661 and restitution in the amount of $6,098,173. In July 2020, Allcott pleaded guilty to one count of conspiracy to commit wire fraud. In January 2020, the Securities and Exchange Commission (SEC) charged Allcott and Renison with fraudulently misleading investors in connection with the same conduct.
Renison was the former owner of ARO Equity LLC, a privately-held investment company that purportedly pooled money from investors and then invested it in various New England-based businesses. Between 2015 and 2018, Renison and Allcott fraudulently raised and solicited funds for ARO Equity LLC by misrepresenting to victims how their money would be invested, ARO’s investment track record and the safety of the investments. Allcott and Renison also concealed Renison’s ownership interest and affiliation with ARO because the SEC and regulators in Maine had previously barred Renison from working in the securities industry.
Over the course of the scheme, ARO took in over $6 million from investors but only invested half of that amount. Of the investments that ARO actually made, the substantial majority yielded significant losses. Despite these losses, Allcott and Renison failed to inform the victims of the poor performance of prior investments. Instead, they told the victims on many occasions that the investments were doing well and remained safe. ARO paid required monthly payments to earlier investors using funds raised from later investors.
The defendants generally told victims that ARO would use their investments to fund one of three different businesses. Instead, Renison and Allcott paid themselves exorbitant commission fees, satisfied monthly interest obligations to other investors and invested in different undisclosed businesses. As part of the scheme, Allcott and Renison disguised commissions paid to Renison as loans to Renison’s wife, which allowed them to continue to conceal Renison’s ownership stake in the company. In addition, Renison failed to declare more than half a million dollars of commission income and failed to pay over $150,000 in taxes.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Man Sentenced to over 19 Years in Federal PrisonRead the Press Release
Memphis, TN – Jon Glover, 57, of Millington, was sentenced to federal prison for distribution of
methamphetamine and for being a convicted felon in possession of a firearm. United States Attorney
Kevin Ritz announced the sentence today.According to U.S. Attorney Ritz, and the information presented in court, in 2021, the Drug
Enforcement Administration (DEA) began investigating the drug trafficking activities of Glover.
During the course of the investigation, officers seized approximately one-half kilogram of
methamphetamine and a Smith & Wesson 9mm caliber pistol. After his arrest, Glover pleaded guilty.This week, United States District Court Judge John T. Fowlkes, Jr., sentenced Glover to 230 months
in federal prison. There is no parole in the federal system.This case was investigated by DEA, the Shelby County Sheriff’s Department, and the West Tennessee
Drug Task Force.United States Attorney Kevin Ritz thanked Assistant United States Attorney Michelle Kimbril-Parks,
who prosecuted this case, as well as law enforcement partners who investigated the case.
###
For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or
[email protected]. Follow @WDTNNews on Twitter for office news and updates.
Man Pleads Guilty to Dog Fighting OffensesRead the Press Release
An Ohio man pleaded guilty to two counts of raising and training dogs for the purpose of dog fighting.
Michael Valentine, 40, of Bidwell, Ohio, admitted to raising and training over fifty dogs near his home in Gallia County, Ohio. According to court documents, law enforcement first investigated Valentine for dog fighting offenses in 2019 following a dog attack on a small child living with the defendant. That investigation led to a search warrant of the defendant’s residence and the seizure of 40 dogs. The search also recovered numerous items of dog fighting paraphernalia, including treadmills, veterinary supplies, and dog fighting videos.
On March 8, 2022, a second search warrant was executed at the defendant’s residence as part of a fentanyl-distribution investigation. That search revealed substantial evidence of drug distribution, as well as two assault-style rifles. In addition, a search of a nearby parcel of land revealed an additional 11 dogs, which the defendant was keeping for purposes of dog fighting.
Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section, and Assistant U.S. Attorney Nicole Pakiz, and Special Assistant U.S. Attorney Mike Marous for the Southern District of Ohio are prosecuting this case.
The case was investigated by the U.S. Department of Agriculture Office of the Inspector General (USDA-OIG) and the FBI.
This investigation was conducted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) initiative. OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Man Charged with COVID-Relief Fraud and Money LaunderingRead the Press Release
NEWS RELEASE SUMMARY – May 4, 2023
SAN DIEGO – Nasser Salman, a former San Diego resident living in Morocco, was arraigned in federal court today on charges that he fraudulently obtained more than $400,000 in COVID-relief loan funds on behalf of three companies.
According to the indictment, Salman submitted fraudulent applications to the federal Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) in connection with Lemon Grove Deli and Grill, Inc., Al Laith Trading and Construction Consulting Inc. and Alliance Security Consulting Services, Inc.
The indictment said that between April and August 2020, Salman successfully obtained five separate PPP and EIDL loans totaling $401,000 using applications that included false representations about the number of employees, the average monthly payroll, and the gross receipts earned by these purported businesses. Salman also submitted fictitious documents in support of the applications
According to the indictment, when Salman applied for the loans, he acknowledged the funds must be used to retain workers and maintain payroll, or to make mortgage interest payments, lease payments and utility payments. Instead, as alleged in the indictment, Salman engaged in a series of financial transactions, including international wire transfers to a Morocco-based bank account, that were designed to conceal and disguise the fact that the sources for the funds were the fraudulently obtained PPP and EIDL loans.
“These loan programs were designed to render economic relief to Americans during an unprecedented public health emergency,” said U.S. Attorney Randy Grossman. “This office is dedicated to investigating and prosecuting those who exploited the global pandemic to enrich themselves. We encourage anyone with information regarding individuals who have engaged in COVID-relief fraud to come forward.” Grossman thanked the prosecution team and the law enforcement agencies for their excellent work on this case.
“Covid relief fraud not only waste taxpayers’ dollars; it undermines the public trust of government programs,” said Chad Plantz, special agent in charge, HSI San Diego. “HSI will continue to work with our law enforcement partners to investigate and bring to justice fraudsters who diverted financial relief away from Americans at a time when they need it the most.”
A detention hearing is scheduled for May 9, 2023, at 9:30 a.m. before U.S. Magistrate Judge Barbara L. Major.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020 and is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
DEFENDANTS Case Number 23CR0821-LL
Nasser Salman Age: 60 United States
SUMMARY OF CHARGES
Counts 1-5- Wire Fraud
Title 18, U.S.C., Section 1343
Maximum Penalty: Thirty years in prison and $1,000,000 fine
Counts 6-11 – Laundering of Monetary Instruments
Title 18, U.S.C., Sections 1956(a)(1)(a)(B)(i)Maximum Penalty: Twenty years in prison; a fine of $500,000 or twice the amount of the monetary instruments involved, whichever is greater
AGENCIES
Homeland Security Investigations (HSI)
Small Business Administration (SBA)
The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Malachi Crockett charged in Federal Court for Carjacking SpreeRead 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 Malachi Alan Crockett was arraigned on an indictment charging him with three counts of carjacking, one count of attempted carjacking, and using, carrying, and brandishing a firearm during and in relation to a crime of violence. Crockett, 18, of Albuquerque, will remain in custody pending trial.
A federal grand jury indicted Crockett on April 27. According to the indictment and other court records, on March 21, Crockett and accomplices allegedly approached the first victim, identified as Jane Doe 1, while she was stopped in her car, a white Nissan sedan, at the intersection of 86th St SW and Tower Road SW. One of the individuals brandished a handgun and pointed it directly at Doe 1. Doe 1 opened her car door and fled.
A second victim, identified in court documents as Jane Doe 2, was parked on the south side of the Westgate Community Park in a grey Chevrolet SUV, waiting for her children. Doe 2 observed the white Nissan pull in front of her vehicle, blocking her in. Two individuals got out of the car and approached her. Doe 2 observed one of the individuals pointing a handgun at her head. Doe 2 exited the vehicle and fled.
A witness at the park observed the second carjacking as she drove by the incident. The white Nissan then began to follow her and she observed the occupants pointing firearms at her. She accelerated away and heard multiple gunshots before observing the grey Chevrolet approaching her then striking a tree. An individual exited the Chevrolet with a handgun and she attempted to drive away and observed the white Nissan following her and the occupants shooting at her vehicle. The witness lost control of her vehicle and crashed into a residence. The white Nissan stopped behind her and the individuals exited the car with handguns and the witness fled her vehicle on foot.
A short time later, two victims identified as Jane Doe 3 and John Doe, were driving near Carlos Rey Elementary when they observed the white Nissan. A young male exited the vehicle with a handgun and ran towards Jane Doe 3 and John Doe, pointing the handgun at them. As he approached, Jane Doe 3 drove away at a high rate of speed.
A few minutes later, Jane Doe 4 was approaching the intersection of Barbados Ave SW and Gibson Blvd SW in a red Chevrolet hatchback. The white Nissan drove past her and parked in front of her, blocking her vehicle. Doe 4 thought the occupants of the white Nissan may need assistance, so she stopped her car, turned it off and exited the vehicle with her keys. Doe 4 then observed three masked males exit the white Nissan and approach her. All three were armed with handguns and dressed in dark-colored clothing. They yelled at her to give them the keys, at which point Doe 4 threw the keys to the ground. One of the individuals picked up the keys, got into her vehicle and drove away while the other two returned to the white Nissan and drove away.
Responding APD officers observed the red Chevrolet hatchback and initiated pursuit. The driver crashed the vehicle near the area of Atrisco Dr SW and Bridge Blvd SW. Officers managed to apprehend the fleeing occupants. Crockett was wearing a black hoodie and black pants and in possession of a black mask when he was apprehended. During his attempt to flee, Crockett allegedly disposed of a handgun. Upon observation of the handgun, APD personnel reported the backplate of the handgun appeared to have been modified.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Crockett faces imprisonment of up to 15 years for each carjacking count and a consecutive term of up to life in prison for using, carrying and brandishing a firearm during and in relation to a crime of violence.
The FBI Albuquerque Field Office investigated this case with assistance from the Albuquerque Police Department. Assistant United States Attorney Thomas J. Aliberti is prosecuting the case.
# # #
23-98
Local drug distribution network dismantledRead the Press Release
CORPUS CHRISTI – The final members of a Corpus Christi drug trafficking organization have been ordered to federal prison following their convictions of conspiracy to possess with intent to distribute cocaine and money laundering, announced U.S. Attorney Alamdar S. Hamdani.
Gilbert DeLosSantos, 51, and his wife, Corina DeLosSantos, 56, pleaded guilty Nov. 7, 2022, while Lawrence Guevara, 52, and Amber Ramirez, 35, entered their pleas Sept. 29, 2022. All are from Corpus Christi.
Today, U.S. District Judge David Morales found Gilbert DeLosSantos to be a leader in the conspiracies and sentenced him to a total of 180 months in federal prison to be immediately followed by 10 years of supervised release. Corina DeLosSantos received a 54-month-term of imprisonment followed by three years of supervised release for her role in the money laundering conspiracy.
Judge Morales previously sentenced Guevara and Ramirez for their respective involvement in the drug conspiracy to 120 and 51 months, respectively.
As a result of the criminal convictions in this case, approximately $13,000 in U.S. currency and six pieces of real property have been forfeited to the United States.
In September 2019, a seizure of cocaine at the Sarita Border Patrol checkpoint sparked an investigation into a drug trafficking operation that Gilbert DeLosSantos ran in Corpus Christi. This resulted in the identification of drug distribution locations and multiple individuals ranging from street-level dealers to mid-level suppliers.
On May 10, 2022, authorities conducted four federal search warrants at locations in the Corpus Christi area. At one, they arrested Guevara and Ramirez who were workers at the residence and seized 634 grams of cocaine, 331 grams of heroin, 31 grams of crack cocaine, $1,170 U.S. currency and several drug ledgers.
Law enforcement later arrested DeLosSantos at his residence and seized approximately $12,000 in U.S. currency, multiple phones and electronic devices, Nueces County property tax statements and banking records.
The investigation led authorities to believe DeLosSantos and his organization were selling approximately one kilogram each of cocaine and heroin per week.
Previously released on bond, both were permitted to remain on bond and voluntarily surrender at a later date.
Homeland Security Investigations and the Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation dubbed Operation New Trap on the Block with the assistance of Customs and Border Protection, Corpus Christi Police Department and Texas Department of Public Safety.
OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorney Lance Watt prosecuted the case.
Lawton Woman and Former Army Training Manager at Fort Sill Indicted on Public Corruption ChargesRead the Press Release
OKLAHOMA CITY – Earlier this week, a federal grand jury returned an Indictment charging CANDY HANZA, 50, of Lawton, and ALFRED PALMA, 64, of Duncan, with bribery, announced Robert J. Troester, United States Attorney for the Western District of Oklahoma. Hanza is also charged with wire fraud and money laundering.
According to the publicly filed Indictment, 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. Hanza, then the general manager of a local hotel in Lawton, paid Palma to direct soldiers to the hotel. The Indictment alleges that Hanza then personally profited through her own scheme to defraud the hotel owners and laundered the resulting proceeds.
Hanza and Palma will be arraigned in federal court on the charges. If found guilty of bribery, Hanza and Palma each face 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 additionally faces up to twenty years in prison, a $250,000.00 fine, and up to three years of supervised release if convicted of wire fraud, as well as up to ten years in prison, a $250,000.00 fine, and up to three years of supervised upon conviction for money laundering.
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.
The public is reminded that these charges are merely allegations, and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Reference is made to public records for more information.
Las Vegas Resident Sentenced to Prison for Million-Dollar Tax Refund Fraud SchemeRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today to 30 months in prison followed by one year of supervised release for claiming $989,031 in fraudulent income tax refunds from the IRS for himself and shell companies for tax years 2007 through 2011.
In December 2022, a federal jury convicted Anthony Uvari of four counts of making and subscribing false tax returns. United States District Judge Andrew P. Gordon presided over the four-day trial.
According to court documents and evidence presented at trial, between December 2008 and May 2013, Uvari filed tax returns that falsely claimed businesses — including numerous gaming companies and a bank — had paid him or his companies gambling winnings or other income, but withheld more than $900,000 of income tax on his behalf and paid it to the IRS. As a result, he requested from the IRS over $900,000 in fraudulent income tax refunds. The IRS paid out more than $300,000 in fraudulently requested refunds before detecting Uvari’s scheme and denying the remaining refund requests. After one such refund request was denied, Uvari provided the IRS with new false documents — including a fake log supposedly documenting his gambling — in a further effort to deceive the IRS into providing the fraudulently requested tax refund.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Albert Childress of the IRS Criminal Investigation (IRS-CI) made the announcement.
This case was investigated by IRS-CI. Assistant United States Attorneys Eric Schmale and Jessica Oliva prosecuted the case.
###
Justice Department Seeks to Shut Down Florida Tax Return PreparerRead the Press Release
The United States has filed a complaint in the U.S. District Court for the Middle District of Florida against Tyrone Johnson and TJ Professional Services, LLC. The civil complaint seeks to enjoin the defendants from preparing federal income tax returns for others. The complaint also requests that the court require Johnson and the business he controls to disgorge the fees they obtained by preparing federal tax returns that make grossly incompetent, negligent, reckless, and/or fraudulent claims.
The civil complaint alleges that since at least 2016, defendants prepared returns that claim fictitious businesses and fabricated business losses. As a result, the complaint alleges, defendants decreased the amount of taxable income reported to make it appear that their customers were entitled to a larger refund than they were in fact entitled to receive. The complaint further alleges that defendants do not identify themselves as paid preparers on their customer’s returns, but instead operate as “ghost preparers” that file returns using six-digit PINs affiliated with individual customers. According to the complaint, the defendants’ schemes have cost the Treasury millions of dollars in lost tax revenue.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer, as well as steps taxpayers can take to get a jumpstart on filing.
Taxpayers seeking assistance can access the IRS’s free directory of federal tax preparers. The IRS also has programs offering free basic return preparation for qualifying seniors and individuals with low to moderate income). In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
High-Ranking Wilmington Gang Leader Convicted for Drug TraffickingRead the Press Release
RALEIGH, N.C. – A federal jury convicted a high-ranking Bloods gang leader from Wilmington on charges of trafficking heroin, fentanyl and cocaine.
Don Eugene Nixon, Jr., age 48, was convicted on eight counts, including conspiracy to distribute and possess with intent to distribute heroin and fentanyl, distribution of heroin and fentanyl, and possession with the intent to distribute heroin. Nixon faces a minimum term of imprisonment of 5 years and a maximum term of imprisonment of 40 years on each count when sentenced later this year, for a total possible sentence of up to 320 years imprisonment.
“The gangs pushing deadly fentanyl in our community have a role in fueling the deadliest drug epidemic our country has ever seen,” said U.S Attorney Michael Easley. “Our office is partnering with law enforcement at every level to fight the fentanyl epidemic and put drug traffickers behind bars.”
According to court records and evidence presented at trial, a months-long investigation by the Federal Bureau of Investigation (FBI) and the Wilmington Police Department resulted in six controlled purchases of large quantities of drugs, including heroin and fentanyl, from Nixon. Nixon would deliver the drugs to the informant pressed into a square block shape, tightly wrapped with black electrical tape. In addition, law enforcement executed a search warrant at Nixon’s home and seized 131 grams of heroin and three handguns.
Trial testimony established that Nixon was a large-scale heroin dealer who operated well over a decade in Eastern North Carolina. Additionally, his rank in and reach within the Bloods gang made it difficult to investigate and prosecute his crimes. Witnesses refused to testify due to the threats they faced. Witnesses who did assist in the investigation have had to relocate and are receiving federal protection.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. The Federal Bureau of Investigation and the Wilmington Police Department are investigating the case and Assistant U.S. Attorneys Brad Knott and Jimmie Bellamy are prosecuting the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.7:21-CR-00071.
Haitian National Found Guilty of Biting ICE Officers on Deportation AircraftRead the Press Release
SAN ANTONIO – A federal jury convicted a Haitian national in a federal court in San Antonio Tuesday for two counts of assaulting, resisting, or impeding certain officers or employees and inflicting bodily injury and one count of assaulting, resisting, or impeding certain officers or employees involving physical contact.
According to court documents and evidence presented at trial, Immigration and Customs Enforcement (ICE) officers were loading 112 Haitian nationals onto a contract aircraft in San Antonio bound for Port Au Prince, Haiti in September 2021, when a disturbance involving several individuals occurred in the middle section of the aircraft. Jubenson Domenique was identified as the main instigator of the disturbance and a decision was made for three officers to remove him from the aircraft.
During Domenique’s extraction from the aircraft, he bit the officers, breaking the skin and leaving teeth marks on all three. Emergency Medical Services responded, and one officer was treated at a local hospital, provided prescriptions for medication and began treatment and testing for possible infections, including six months of HIV treatment.
Domenique faces a maximum penalty of 20 years in prison for each count of inflicting bodily injury and eight years in prison for the third count.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Jennifer Huerta for the ICE Office of Professional Responsibility made the announcement.
ICE is investigating the case.
Assistant U.S. Attorneys Amanda Brown and Amy Hail are prosecuting the case.
###
Greensboro Man Sentenced for Role in Two Greensboro Shootings and Drug Trafficking in the Middle DistrictRead the Press Release
WINSTON SALEM – A Greensboro man was sentenced today to 25 years in prison, after pleading guilty to firearms charges connected to two Greensboro shootings and drug trafficking in the Middle District of North Carolina (MDNC), announced United States Attorney Sandra J. Hairston.
LAJAUREN DAMITRI WIMBUSH, age 36, was indicted in February 2022 for two separate incidents, one involving possession with intent to distribute methamphetamine and one in which he was charged with three counts of illegal firearm and/or ammunition possession by a felon. According to court records, in September 2020, Surry County Sheriff’s Deputies executed a search warrant on a residence in Mount Airy where they encountered WIMBUSH and confiscated multiple bags of suspected methamphetamine from his vehicle. During his arrest, WIMBUSH claimed ownership of the contents of the bags, which were later confirmed by the State Crime Lab to contain quantities of methamphetamine.
WIMBUSH was also indicted in another case with three counts of felon in possession of a firearm and/or ammunition stemming from two Greensboro shootings at the Four Seasons Mall on December 21, 2021, and at Studio Motel 6 on January 6, 2022. According to court documents, the Greensboro Police Department (GPD) responded to reports of a shooting at the Four Seasons Mall in Greensboro on the afternoon of December 21st and located a victim who had been shot multiple times. Mall security footage showed the exchange between the victim and assailant in the parking lot of the mall, and officers were able to locate additional footage tracing the assailant back to a motel room which WIMBUSH was staying in at the time.
On January 6, 2022, an officer with the GPD responded to reports of an aggravated assault at the same motel and located a victim who had been shot multiple times and beaten by WIMBUSH. Surveillance footage from the motel confirmed the victim’s account of events and showed WIMBUSH shooting at and attacking the victim. At the time of both shootings, WIMBUSH was a previously convicted felon and was aware that he was prohibited from possessing a firearm or ammunition. WIMBUSH is facing additional charges in these cases in state court.
WIMBUSH pleaded guilty on November 10, 2022, in a combined plea agreement to one count of possession with intent to distribute methamphetamine and two counts of felon in possession of a firearm. WIMBUSH was sentenced today to 300 months imprisonment in case number 1:22CR44, and two 120-month terms of imprisonment in case number 1:22CR41 to run concurrent with his sentence in case number 1:22CR40 by the Honorable Loretta C. Biggs, United States District Judge in the United States District Court for the MDNC. In addition to prison time, WIMBUSH was ordered to serve concurrent five year terms of supervised release, pay a special assessment of $300.00, and pay $8,762.28 in restitution.
The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Greensboro Police Department, and the Surry County Sheriff’s Department, and are being prosecuted by Assistant United States Attorney Cliff Barrett.
###
Four People Charged for Roles in Bank Fraud, Identity Theft SchemeRead the Press Release
NEWARK, N.J. – Four people have been charged with conspiring to use and using victims’ personal identifiable information to defraud individuals and financial institutions, U.S. Attorney Philip R. Sellinger announced today.
Marc Lazarre, 37, of Secaucus, New Jersey: Fritzgerald Steide, 28, of Valley Stream, New York; Mohammed Khan, 32, of Elmont, New York; and Andrea Lewis, 29, of Inwood, New York, are each charged by indictment with one count of conspiracy to engage bank fraud. Lazarre is also charged with one count of bank fraud and three counts of aggravated identity theft.
According to documents filed in this case and statements made in court:
From September 2021 through October 2022, Lazarre, Steide, Khan, and Lewis conspired to enrich themselves by fraudulently obtaining victims’ funds. Lazarre utilized unlawfully obtained bank account and personal identifiable information to open accounts in victims’ names without their knowledge, caused the transfer of funds from the victims’ actual financial accounts to the accounts he opened, and then withdrew the funds. Lazarre also unlawfully obtained or fabricated checks made out to victims, used fraudulent identification documents to open accounts in names almost identical to the victims’ names, and then cashed the unlawfully obtained or fabricated checks.
Lazarre also worked with Steide and Khan, both of whom were employees of an Oceanside, New York, branch of a victim financial institution. Lazarre sent victims’ personal identifiable information to Steide and Khan, who in turn used this information to determine whether those individuals had bank accounts with Steide and Khan’s employer. In Khan’s role as a customer service representative, he received documents that he knew reflected stolen personal identifiable information from Lazarre and subsequently opened bank accounts using that information. Steide advised Lazarre regarding how to avoid detection, including by telling him when a conspirator should arrive at the bank to meet with Khan. Lewis impersonated numerous victims using false forms of identification provided by Lazarre. On at least one occasion, Lewis communicated with Lazarre in real time for assistance with responding to a bank representative’s questions regarding her purported identity.
The conspiracy to commit bank fraud and bank fraud counts are punishable by a maximum of 30 years in prison and a maximum fine of up to $1 million or twice the gross gain or loss from the offense. The aggravated identity theft counts carry an additional consecutive mandatory minimum term of two years in prison and a maximum fine of up to $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and special agents of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Andrew McKay with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Shawn Barnes, Chief of the OCDETF/Narcotics Unit, and Matthew Belgiovine of the U.S. Attorney’s Office in Trenton.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
lazarreetal.indictment.pdfFormer Naugatuck Resident Charged with Offenses Stemming from Alleged Investment Fraud SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that RAFAEL MUZZI, 27, a citizen of Brazil formerly residing in Naugatuck, has been charged in a 14-count indictment with fraud and money laundering offenses stemming from an alleged investment fraud scheme.
As alleged in the indictment, in 2017 and 2018, Muzzi, at times using two entities he formed, Solace Investments LLC and Asseno LLC, induced victim-investors to provide him funds based on the representation he would use the funds for trading currencies in foreign exchange markets using a trading software program that he told his victims he had developed. Muzzi represented to victims that his software program had a feature that would cause trading to cease in the event of a certain loss in value, thus minimizing downside risk. Muzzi failed to invest a substantial portion of invested funds as he represented, and instead diverted those funds for his own personal use, and to pay other individuals who had invested with him.
It is alleged that, through this scheme, Muzzi defrauded at least 12 victim-investors out of a total of more than $550,000.
The indictment further alleges that Muzzi sent victims fabricated monthly account statements that falsely overstated their return on investment and their account balances. These misrepresentations induced some victim-investors to provide him with additional investment funds. Muzzi also provided victims with purported tax documents reflecting fictitious investment profits, causing victims to report and pay taxes on profits that they had not realized.
As alleged in court documents, in response to victim complaints, the State of Connecticut’s Department of Banking investigated Muzzi’s conduct, issued orders finding that Muzzi and Solace Investments had violated state securities laws, ordered them to make restitution to victims, and fined Muzzi $300,000. On September 6, 2020, Muzzi traveled to Brazil and did not return.
On August 23, 2022, a federal grand jury in New Haven returned an indictment charging Muzzi with 12 counts of wire fraud and two counts of money laundering.
Muzzi was arrested on April 1, 2023, in Panama, and subsequently waived his right to contest his extradition to the U.S. He appeared in Hartford federal court on April 28, pleaded not guilty to the charges in the indictment, and was ordered detained. A detention hearing is scheduled for tomorrow.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation with the assistance of the Connecticut Department of Banking, Securities Division.
U.S. Attorney Avery thanked Interpol and Panamanian authorities for their assistance in apprehending this defendant, and the U.S. Department of Justice’s Office of International Affairs for coordinating the extradition proceedings in this matter.
The case is being prosecuted by Assistant U.S. Attorneys Conor M. Reardon and Michael S. McGarry.
Former Information Technology Manager Agrees to Plead Guilty to Theft of over $1.4 Million from EmployerRead the Press Release
BOSTON – The former information technology manager of a Quebec City, Canada-based telecommunications company has been charged and has agreed to plead guilty in connection with a fraud scheme that involved the theft of over $1.4 million in computer equipment from his employer.
Tod Erickson, 60, of Londonderry, N.H., has been charged, and has agreed to plead guilty, to wire fraud and filing a false tax return. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, Erickson served as the information technology manager at a telecommunications company that, until February 2019, had an office located in Chelmsford, Mass. As information technology manager, Erikson was responsible for submitting requests to purchase equipment – such as computers and hard drives. It is alleged that from at least January 2012 through February 2019, Erickson fraudulently submitted purchase requests for computer equipment that the company did not need. Thereafter, without the knowledge or approval of his employer, Erickson allegedly sold the items to third parties and used the illicit proceeds for his personal benefit. Erickson also filed income tax returns for the tax year 2016 in which he intentionally underreported his income by failing to disclose money he received from the sale of his employer’s property.
The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, restitution, and forfeiture. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release, a fine of $250,000, restitution, and forfeiture. 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.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Rollins’ 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.
Former Founder and CEO of Nanotechnology Company Sentenced to 48 Months in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that JAMES JEREMY BARBERA, the founder and former chief executive officer (“CEO”) of a New York-based nanotechnology company, Nanobeak Biotech, Inc. (“Nanobeak”), was sentenced today to 48 months in prison by U.S. District Judge John G. Koeltl. BARBERA was previously convicted following a one-week trial of securities fraud, wire fraud, and conspiracy offenses.
According to the Indictment, evidence presented during trial, court documents, and statements made in open court:
From in or about 2013 and in or about 2019, BARBERA was the founder and CEO of Nanobeak, a privately held nanotechnology company that represented to investors that the company had developed a breathalyzer sensor technology that could detect cancer and narcotics in human breath.
From at least in or about 2013 through in or about 2020, BARBERA and others perpetrated a scheme to defraud dozens of investors out of at least approximately $7 million (i) by soliciting investments through false and misleading statements, (ii) by failing to use investors’ funds as promised, and (iii) by converting investors’ money for his own use. Specifically, BARBERA falsely represented that Nanobeak had developed a breathalyzer sensor that could detect narcotics and cancer in a person’s breath and that the company was expected to earn millions of dollars in sales revenue through distribution contracts. In truth and in fact, Nanobeak never developed the purported technology, and it was impossible for the company to generate revenue because there was no breathalyzer device to sell and, accordingly, no distribution contracts.
BARBERA also falsely represented that he had undergraduate and graduate degrees in physics from New York University, that he had a business degree from the Massachusetts Institute of Technology, and that Nanobeak would soon have an initial public offering (“IPO”), which would result in large profits to investors. In truth and in fact, the company was not close to an IPO, BARBERA was permanently barred from serving as the CEO of a public company as a result of a prior, unrelated proceeding brought by the U.S. Securities and Exchange Commission (“SEC”), and BARBERA never finished college and never attended MIT.
BARBERA converted for his own use approximately half of the investor funds raised in the form of cash withdrawals and to pay personal expenses, including private school and college tuition for his children, mortgage payments on his Central Park West apartment, and for other personal items, such as credit card bills, jewelry, automobiles, and daily living expenses.
* * *
In addition to his prison sentence, BARBERA, 67, of New York, New York, was ordered to pay more than $7 million in forfeiture.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the National Aeronautics and Space Administration’s Office of Inspector General, and he also thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Kiersten A. Fletcher is in charge of the prosecution.
Former Boy Scout Camp Employee Indicted for Possession and Distribution of Child PornographyRead the Press Release
NEWARK N.J. – A federal grand jury indicted a Morris County, New Jersey, man for possessing and distributing child abuse and exploitation material, U.S. Attorney Philip R. Sellinger announced today.
William Mickel, 69, of Lake Hopatcong, New Jersey, is charged by indictment with one count of distribution of child pornography and one count of possession of child pornography. He had his initial appearance today before U.S. district Judge Cathy L. Waldor in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
Mickel was employed by Boy Scout camps in New Jersey, and from February 2022 through April 2022, he distributed and possessed images and videos of child sexual abuse. Mickel used email accounts to distribute these materials, and stored hundreds of images and videos on electronic devices in his home. Some of the videos in Mickel’s possession depicted children who were surreptitiously recorded using bathrooms in the Boy Scout camps where Mickel worked.
The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. The count of possession of child pornography carries a maximum penalty of 20 years in prison and a fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, and substantial assistance from the Morris County Prosecutor’s Office under the direction of Prosecutor Robert J. Carroll; and the Chester Police Department, under the direction of Chief Ryan T. McNamee, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark.
If you think you or your child may have been a victim, please contact the FBI at www.fbi.gov.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
mickel.indictment.pdfFormer Boston Public Schools Dean Who Recruited Students into Latin Kings Gang Sentenced to over Eighteen Years in PrisonRead the Press Release
BOSTON – A former member of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) who was, at the time, an academic dean in the Boston Public Schools was sentenced today in federal court in Boston on racketeering charges. The defendant attempted to murder a student that he had recruited into the gang and who was selling marijuana in the high school at the defendant’s direction.
Shaun Harrison, a/k/a “Rev,” 63, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 218 months in prison, with credit for 98 months’ time served, and three years of supervised release. In August 2022, Harrison pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
“The level of betrayal and dishonesty exhibited here is astonishing. Harrison was in a position of trust, but was actually a dangerous predator. As the academic dean at a Boston Public high school he lured and manipulated teenagers into a criminal enterprise that specialized in street terrorism. Harrison was the architect of ruin for an entire generation of promising young lives – exclusively targeting and grooming vulnerable, at-risk youth. The very thing he was hired to work against. When one of his students – the victim in this matter – resisted his recruiting efforts, Harrison attempted to murder him in cold blood. In response to that student bravely doing the right thing and rejecting a life of crime, Harrison shot him point blank in the back of the head. Miraculously, he lived but now has partial face paralysis, neuropathy in his neck and face and permanent hearing loss among other significant injuries. The fact that Harrison continued to associate with Latin Kings members while in state prison for this attempted murder shows a callous disregard for the law and the harm he caused,” said United States Attorney Rachael S. Rollins. “Today’s sentence is a testament to the tireless efforts of our state, local and federal law enforcement partners. The dismantling of the Latin Kings organization is a significant milestone in our collective efforts to combat violent crime. We will continue to work to ensure that our schools and communities are safe.”
“Shaun Harrison led a double life – using his position as a high school dean to engage in violence and recruit at-risk youth into a violent criminal enterprise. Today’s sentence ensures he will stay in prison and off our city streets for a significant period of time,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The convergence of gangs, guns, and drugs are a serious threat to our communities which the FBI and our law enforcement partners are working hard every day to address.”
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against dozens of leaders, members and associates of the Latin Kings.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In 2015, Harrison was hired by the Boston Public Schools to serve as an academic dean at English High School. In that role, Harrison was to act as a mediator between teachers and students, contact families when students struggled, work with at-risk students and run an anger management program for 10 boys after school. While working at the Boston Public Schools, Harrison was a member of the Latin Kings, known as “Rev” or “King Rev,” and used his position as academic dean to recruit a number of the at-risk students into the gang. Harrison directed the recruited students to distribute marijuana and other drugs, which he provided, in the high school and collected the drug proceeds. A number of the students that Harrison recruited included Wilson Peguero, a/k/a “King Dubb,” who later became the “Inca” or the leader of the D5K Chapter of the Latin Kings; Alexis Peguero, a/k/a “King Lexi,” who became the “Cacique” or the second-in-command of the D5K Chapter of the Latin Kings; Dante Lara, a/k/a “King Nasty;” Oscar Pena, a/k/a “King O-Block;” and others. Wilson Peguero, Alexis Peguero, Lara and Pena were each charged in this case and sentenced to serve 30 months, 21 months, two years and 32 months in prison, respectively.
In March 2015, Harrison came to believe that one of the students distributing drugs for him had stolen money from him, no longer wished to sell drugs and may tell the police about Harrison’s crimes. On March 3, 2015, Harrison met up with this student, pulled out a handgun and shot the student in the back of the head at point blank range. This shooting was captured on video by a surveillance camera in the area. The student survived.
Harrison was arrested soon thereafter and charged in Suffolk Superior Court with crimes related to the attempted murder. In 2018, Harrison was convicted by a jury and sentenced to approximately 25 years in state prison.
While in state prison following his conviction, Harrison continued to associate with Latin Kings members, including through jail calls to other co-defendants. The Latin Kings supported Harrison during his state incarceration, discussed Harrison’s loyalty to the Latin Kings and refusal to implicate others and put money into his jail accounts.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. In total, 60 defendants in the case have pleaded guilty. Of the 62 charged defendants in the indictment, two remain fugitives. All of the remaining 60 defendants have pleaded guilty and have been sentenced or are awaiting sentencing. Harrison is the 59th defendant to be sentenced.
U.S. Attorney Rollins; FBI SAC Bonavolonta; Commissioner Carol Mici of the Massachusetts Department of Correction; Suffolk County District Attorney Kevin Hayden; Boston Police Commissioner Michael Cox; and New Bedford Police Chief Paul Oliveira made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of Rollins’ Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The two remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law
Five Charged in an $11 Million Health Care Fraud SchemeRead the Press Release
DETROIT – Five individuals, including a physician and a certified social worker, were charged in a Second Superseding Indictment for their alleged roles in an $11 million health care fraud scheme, which involved submitting false claims to Medicare for purported psychotherapy services that were induced by kickbacks and/or never rendered, announced United States Attorney Dawn N. Ison.
Mohammad Kazkaz is also charged with six counts of money laundering for engaging in monetary transactions exceeding $10,000 including transferring more than $1.4 million dollars in fraudulent health care fraud proceeds to a national restaurant chain.
Joining in the announcement were James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Mario Pinto, Special Agent in Charge, United States Department of Health and Human Services – Office of Inspector General (HHS-OIG).
Charged as members of the conspiracy in the indictment are:
Mohamed Kazkaz, 54, of Farmington Hills, Michigan;
Ziad Khalel, 52, of Rochester Hills, Michigan;
Dr. Mustafa Hares, 76, of West Bloomfield, Michigan;
Geraldine Letman, MSW, 70, of Phoenix, Arizona; and
Gamela Ali, 33, of Dearborn, Michigan.
The indictment alleges that Kazkaz was the owner and operator of Centre HRW, a psychotherapy agency in Farmington Hills, Michigan. Kazkaz offered and provided kickbacks and bribes to Khalel, who was a patient recruiter, as an inducement to refer Medicare beneficiaries to Centre HRW for psychotherapy services, even though such services were medically unnecessary and were never rendered. Khalel would require the recruited Medicare beneficiaries to sign blank Centre HRW sign-in sheets to allow Kazkaz to submit claims to Medicare, through Centre HRW, for psychotherapy services that were never provided.
Ali, as the office manager of Centre CRW, was responsible for obtaining information regarding the patients’ legitimate medical visits to ensure Kazkaz did not submit claims for a psychotherapy appointment on the same date the patient had a legitimate appointment with another medical provider. Dr. Hares and Letman would complete fraudulent patient charts indicating they had seen the patient, when in fact, such psychotherapy services were never rendered and/or were induced by kickbacks. As a result of the false and fraudulent claims submitted to Medicare, Centre HRW billed Medicare more than $11 million and Medicare made payments to Centre HRW in an amount more than $5.3 million.
Kazkaz and Khalel were originally charged in a January 11, 2023 indictment. Dr. Hares, Letman, and Ali were added as new defendants in today’s Second Superseding Indictment.
“My office is committed to prosecuting any individual, especially medical professionals, who exploits Medicare, a taxpayer-funded program that provides essential services to seniors and disabled individuals,” stated U.S. Attorney Ison.
“The payment of kickbacks to induce referrals for medical services in Federal health care programs, as well as billing for services not rendered, can undermine the trust we place in our nation’s providers and results in costly reductions to our federal health care programs," said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to ensure that those who commit fraud and pay kickbacks are held accountable.”
“Health care professionals who fraudulently bill Medicare for services never actually provided divert taxpayer money meant to pay for medically necessary services for people enrolled in Medicare,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “The FBI is committed to working with our partners to eradicate schemes that defraud government-sponsored health care programs.”
An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by Assistant United States Attorneys Regina R. McCullough and Philip A. Ross. Assistant United States Attorney K. Craig Welkener, of the Money Laundering & Asset Recovery Unit, is handling related forfeiture matters. The investigation is being conducted jointly by the FBI and HHS-OIG
Federal Jury Convicts Child Psychiatrist of Sexual Exploitation of A MinorRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte has convicted David Tatum, 41, a child psychiatrist in Charlotte, N.C., of sexual exploitation of a minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of Federal Bureau of Investigation (FBI) in North Carolina join U.S. Attorney King in making today’s announcement.
According to filed court documents, trial evidence and witness testimony, between 2016 and 2021, Tatum possessed images and videos of child pornography. Trial evidence also established that in or about July 2016, Dr. Tatum secretly recorded a minor while the minor was undressing and showering. A forensic analysis of electronic devices revealed that the defendant produced the video of the minor and possessed it, along with other images and videos of child pornography. According to trial evidence, Dr. Tatum made similar surreptitious recordings of others, including of his patient during an outpatient visit who had just turned 18 years old five days before the recording. The jury convicted Dr. Tatum of one count production of child pornography, one count of transportation of child pornography, and one count of possession of child pornography.
Dr. Tatum is currently in federal custody. A sentencing date has not been set. The count of production of child pornography carries a minimum statutory sentence of 15 years and a maximum of 30 years in prison and a $250,000 fine. The charge of transportation of child pornography carries a minimum statutory sentence of 5 years and a maximum of 20 years in prison and a $250,000 fine. The charge of possession of child pornography carries a statutory penalty of no more than 10 years in prison and a $250,000 fine.
In making today’s announcement, U.S. Attorney King commended FBI for their investigation of the case.
Assistant United States Attorneys Daniel Cervantes and Mark Odulio of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Grand Jury Indicts Louisville Man for Carjacking and Firearms OffensesRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment on April 19, 2023, charging a local man with carjacking, possession of a firearm in furtherance of a crime of violence, and possession of a firearm by a convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department, Special Agent in Charge Rana Saoud of the Homeland Security Investigations (HSI) Nashville, and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
According to the indictment, on February 15, 2023, Dekoda Stinson, 29, committed the following offenses: carjacking, possession of a firearm in furtherance of a crime of violence, and possession of a firearm by a convicted felon. Stinson was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses. On August 16, 2022, in Jefferson Circuit Court, Stinson was convicted of receiving stolen property. On June 17, 2020, in Hardin Circuit Court, Stinson was convicted of receiving stolen property. On July 11, 2017, in Hardin Circuit Court, Stinson was convicted of burglary in the third degree and bail jumping in the first degree. On April 7, 2016, in Hardin Circuit Court, Stinson was convicted of assault in the third degree.
On May 4, 2023, Stinson made an initial appearance before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky. If convicted, he faces a minimum sentence of 5 years in prison and a maximum sentence of 20 years. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by LMPD, HSI, and the FBI.
Assistant U.S. Attorney Joshua R. Porter is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Federal Grand Jury Indicts Bullitt County Man on Elder Fraud ChargesRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment on May 2, 2023, charging former Bullitt County Master Commissioner John Anthony Schmidt with engaging in a scheme to commit wire and bank fraud.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and FBI Special Agent in Charge Jodi Cohen of the Louisville Field Office made the announcement.
According to the indictment, between September 2014 and January 2019, while serving as the trustee for two separate trusts, Schmidt devised a scheme to defraud and to obtain money from the trusts by means of false and fraudulent pretenses and representations to use the trusts’ money for his own personal expenditures. Schmidt is charged with one count of wire fraud and two counts of bank fraud.
The defendant made his initial court appearance yesterday before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, Schmidt faces a maximum sentence of 80 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The FBI is investigating the case.
Assistant U.S. Attorney Stephanie M. Zimdahl is 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.
###
Former TSA Employee Sentenced on Fraud ConvictionRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Cleon Otto 35, of St. Thomas, was sentenced by Chief District Court Judge Robert A. Molloy to 12 months of probation on his conviction of creating a false authentication document. Molloy also ordered that Otto pay a $1,000.00 fine, a $25 special assessment and restitution in the amount of $1,162.20.
According to court documents, on July 9, 2021, Otto was an employee of the Transportation Safety Administration and a member of the Virgin Islands National Guard. In his capacity as a TSA officer, Otto produced a false document by placing the electronically generated signature of another employee to authorize his paid military leave request. Otto later submitted the fraudulently approved document and received compensation in the amount of $1,162.20.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Everard E. Potter.
Deputy Attorney General Recognizes Two Western District of Pennsylvania Assistant U. S. AttorneysRead the Press Release
WASHINGTON – Two employees of the United States Attorney’s Office for the Western District of Pennsylvania were among those recognized by Deputy Attorney General Lisa Monaco and Director Monty Wilkinson of the Executive Office for U.S. Attorneys (EOUSA), at the 38th Director’s Awards Ceremony on May 3, 2023, in Washington, D.C. The ceremony was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
Assistant United States Attorney (AUSA) Shaun E. Sweeney and AUSA Heidi M. Grogan each received the Superior Performance as an Assistant United States Attorney Award for their successful prosecution of Price Montgomery, who was convicted of murdering a federal witness as she was preparing to leave her residence to travel to the United States Attorney’s Office for an interview. Montgomery was also convicted of firearms offenses and being the leader of a significant heroin trafficking organization. Montgomery received a sentence of life imprisonment.
EOUSA Director Wilkinson said: “The recipients we honor today have shown remarkable resilience and commitment to justice through challenging times, rising to the occasion with unwavering dedication to their mission. They have worked tirelessly to protect the rights of Americans and exemplify the very best in federal service.”
“It is of paramount importance to protect the safety of government witnesses. Through their tireless efforts, AUSAs Sweeney and Grogan brought the perpetrator of this egregious murder to justice. In addition to murdering a federal witness, Montgomery also shot and grievously wounded the witness’s mother during the attack,” said Acting United States Attorney Troy Rivetti. “We also want to recognize the tremendous investigative work of our partner law enforcement agencies—the Western Pennsylvania Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Drug Enforcement Administration, the IRS Criminal Investigation Division, the U.S. Marshals Service, the Pennsylvania Office of the Attorney General and the Pittsburgh Bureau of Police.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Departments of Justice and Health and Human Services Announce Interim Resolution Agreement in Environmental Justice Investigation of Alabama Department of Public HealthRead the Press Release
The Departments of Justice and Health and Human Services (HHS) announced today an interim resolution agreement in their environmental justice investigation into the Alabama Department of Public Health and the Lowndes County Health Department (collectively ADPH) in Lowndes County, Alabama. ADPH cooperated throughout the investigation and agreed to the interim resolution agreement that puts ADPH on a path forward towards ensuring the development of equitable and safe wastewater disposal and management systems in Lowndes County.
In November 2021, Justice Department and HHS launched an investigation into whether ADPH’s conduct violates Title VI of the Civil Rights Act of 1964 (Title VI) and Section 1557 of the Affordable Care Act (Section 1557). Title VI prohibits recipients of federal funds from discriminating on the basis of race, color or national origin in their federally funded programs and activities. Section 1557 provides that an individual shall not be excluded from participation in, denied the benefits of or subjected to discrimination under, any health program or activity, any part of which is receiving federal financial assistance, based on the grounds prohibited under Title VI.
The nearly eighteen-month investigation revealed areas of concern in ADPH’s operations and compliance with Title VI and Section 1557. Specifically, the investigation revealed that ADPH’s enforcement of sanitation laws threatened residents of Lowndes County with criminal penalties and even potential property loss for sanitation conditions they did not have the capacity to alleviate. The investigation also revealed that ADPH engaged in a consistent pattern of inaction and/or neglect concerning the health risks associated with raw sewage. The investigation revealed that despite ADPH’s awareness of the issues and the disproportionate burden and impact placed on Black residents in Lowndes County, it failed to take meaningful actions to remedy these conditions.
“Today starts a new chapter for Black residents of Lowndes County, Alabama, who have endured health dangers, indignities and racial injustice for far too long,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our agreement puts Lowndes County on a path to long overdue reform as the state now takes steps necessary to provide access to basic sanitation services, end exposure to raw sewage and improve health outcomes for marginalized communities. This agreement marks the first environmental justice settlement ever secured by the Justice Department under our civil rights laws. Our work in Lowndes County should send a strong message regarding our firm commitment to advancing environmental justice, promoting accountability and confronting the array of barriers that deny Black communities and communities of color access to clean air, clean water and equitable infrastructure across our nation.”
“Environmental justice is a public health issue, and where you live should not determine whether you get sick from basic environmental hazards not faced in other affluent and white communities,” said Director Melanie Fontes Rainer of the HHS Office for Civil Rights. “We are pleased that Alabama’s Public Health Department has committed to take immediate and long-term steps to protect the health of Lowndes County residents. This community has long been at the heart of the civil rights struggle, and today’s resolution is yet another testament to the ongoing work that is the pursuit of racial justice.”
“This agreement creates a path towards sustainable sanitation solutions,” U.S Attorney Sandra J. Stewart for the Middle District of Alabama. “The measures required in the agreement will improve public health and the environment for the residents of Lowndes County. My office is proud to support the community and the parties in reaching these important goals.”
Under the agreement, ADPH has agreed to take a number of actions to address public health in Lowndes County including:
- Suspending Criminal Penalties and Liens: ADPH will suspend enforcement of sanitation laws that could result in criminal charges, fines, jail time and potential property loss for residents in Lowndes County who lack the means to purchase functioning septic systems. ADPH will ensure that Lowndes County residents are informed about the suspension of the criminal penalties and liens.
- Examining Public Health Risks within Lowndes County: ADPH will coordinate with the Centers for Disease Control and Prevention (CDC) to measure the level of health risks different populations experience from raw sewage exposure. ADPH agrees to work collaboratively with the CDC and adopt any public health recommendations provided by the CDC.
- Launching a Public Health Awareness Campaign: ADPH will develop a public health awareness campaign using radio, print ads, flyers, mailers, door-to-door outreach and other appropriate ways to ensure residents receive critical health and safety information related to raw sewage exposure.
- Providing Public Health Educational Materials for Lowndes County Health Care Providers: ADPH will create or supplement education materials for health care providers for Lowndes County residents, including school-based health centers and community-based organizations, to provide more information on symptoms and illness related to raw sewage exposure.
- Conducting Assessment to Determine Appropriate Septic and Wastewater Management Systems: ADPH will conduct a comprehensive assessment to determine the appropriate septic and wastewater management systems for homes within Lowndes County and use that information to prioritize properties to receive systems based on risk of exposure to raw sewage. ADPH cannot use this information for criminal penalties or liens.
- Creating a Sustainable and Equitable Public Health and Infrastructure Improvement Plan: Within one year, ADPH will create a plan to improve access to adequate sanitation systems and address public health risks associated with raw sewage exposure.
- Consistently Engaging with the Community: In carrying out each aspect of the interim resolution agreement, ADPH will consistently engage with community residents, local government officials, experts in wastewater, infrastructure, soil and engineering and environmental justice advocates. ADPH must also engage with community stakeholders on at least a quarterly basis regarding its progress in creating and implementing the final Public Health and Infrastructure Improvement Plan.
As a result of ADPH’s decision to enter into this interim voluntary resolution agreement, the departments have agreed to suspend their investigation. Under Title VI, the Justice Department is required to informally resolve an investigation that indicates noncompliance. If ADPH does not comply with the agreement, the departments will reopen their investigation.
Addressing discriminatory environmental and health impacts through enforcement of the nation’s civil rights laws is a top priority of both the Justice Department and HHS. Today’s announcement comes one day prior to the one-year anniversary of the Justice Department’s launch of its Office on Environmental Justice and its Comprehensive Environmental Justice Enforcement Strategy.
The Civil Rights Division’s Federal Coordination and Compliance Section and the HHS Office for Civil Rights conducted this investigation jointly with the support of the U.S. Attorney’s office in the Middle District of Alabama.
Individuals who believe their civil rights have been violated can file a complaint with the Civil Rights Division at www.civilrights.justice.gov/report/. Additional information about the Office for Civil Rights is available on its website at www.hhs.gov/ocr. If you believe that you have been discriminated against in programs or activities that HHS directly operates or to which HHS provides federal financial assistance, you may file a complaint for yourself or someone else at: www.hhs.gov/civil-rights/filing-a-complaint/index.html.
Departments of Justice and Health and Human Services Announce Interim Resolution Agreement in Environmental Justice Investigation of Alabama Department of Public HealthRead the Press Release
WASHINGTON – The Departments of Justice and Health and Human Services (HHS) announced today an interim resolution agreement in their environmental justice investigation into the Alabama Department of Public Health and the Lowndes County Health Department (collectively ADPH) in Lowndes County, Alabama. ADPH cooperated throughout the investigation and agreed to the interim resolution agreement that puts ADPH on a path forward towards ensuring the development of equitable and safe wastewater disposal and management systems in Lowndes County.
In November 2021, Justice and HHS launched an investigation into whether ADPH’s conduct violates Title VI of the Civil Rights Act of 1964 (Title VI) and Section 1557 of the Affordable Care Act (Section 1557). Title VI prohibits recipients of federal funds from discriminating on the basis of race, color, or national origin in their federally funded programs and activities. Section 1557 provides that an individual shall not be excluded from participation in, denied the benefits of, or subjected to discrimination under, any health program or activity, any part of which is receiving federal financial assistance, based on the grounds prohibited under Title VI.
The nearly eighteen-month investigation revealed areas of concern in ADPH’s operations and compliance with Title VI and Section 1557. Specifically, the investigation revealed that ADPH’s enforcement of sanitation laws threatened residents of Lowndes County with criminal penalties and even potential property loss for sanitation conditions they did not have the capacity to alleviate. The investigation also revealed that ADPH engaged in a consistent pattern of inaction and/or neglect concerning the health risks associated with raw sewage. The investigation revealed that despite ADPH’s awareness of the issues and the disproportionate burden and impact placed on Black residents in Lowndes County, it failed to take meaningful actions to remedy these conditions.
“Today starts a new chapter for Black residents of Lowndes County, Alabama who have endured health dangers, indignities and racial injustice for far too long,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our agreement puts Lowndes County on a path to long overdue reform as the state now takes steps necessary to provide access to basic sanitation services, end exposure to raw sewage and improve health outcomes for marginalized communities. This agreement marks the first environmental justice settlement ever secured by the Justice Department under our civil rights laws. Our work in Lowndes County should send a strong message regarding our firm commitment to advancing environmental justice, promoting accountability and confronting the array of barriers that deny Black communities and communities of color access to clean air, clean water and equitable infrastructure across our nation.”
“Environmental justice is a public health issue, and where you live should not determine whether you get sick from basic environmental hazards not faced in other affluent and white communities,” said Department of Health and Human Services Office for Civil Rights Director Melanie Fontes Rainer. “We are pleased that Alabama’s Public Health Department has committed to take immediate and long-term steps to protect the health of Lowndes County residents. This community has long been at the heart of the civil rights struggle, and today’s resolution is yet another testament to the ongoing work that is the pursuit of racial justice.”
“This agreement creates a path towards sustainable sanitation solutions,” U.S Attorney Sandra J. Stewart for the Middle District of Alabama. “The measures required in the agreement will improve public health and the environment for the residents of Lowndes County. My office is proud to support the community and the parties in reaching these important goals.”
Under the agreement, ADPH has agreed to take a number of actions to address public health in Lowndes County including:
- Suspending Criminal Penalties and Liens: ADPH will suspend enforcement of sanitation laws that could result in criminal charges, fines, jail time, and potential property loss for residents in Lowndes County who lack the means to purchase functioning septic systems. ADPH will ensure that Lowndes County residents are informed about the suspension of the criminal penalties and liens.
- Examining Public Health Risks within Lowndes County: ADPH will coordinate with the Centers for Disease Control and Prevention (CDC) to measure the level of health risks different populations experience from raw sewage exposure. ADPH agrees to work collaboratively with the CDC and adopt any public health recommendations provided by the CDC.
- Launching a Public Health Awareness Campaign: ADPH will develop a public health awareness campaign using radio, print ads, flyers, mailers, door-to-door outreach, and other appropriate ways to ensure residents receive critical health and safety information related to raw sewage exposure.
- Providing Public Health Educational Materials for Lowndes County Health Care Providers: ADPH will create or supplement education materials for health care providers for Lowndes County residents, including school-based health centers and community-based organizations, to provide more information on symptoms and illness related to raw sewage exposure.
- Conducting Assessment to Determine Appropriate Septic and Wastewater Management Systems: ADPH will conduct a comprehensive assessment to determine the appropriate septic and wastewater management systems for homes within Lowndes County and use that information to prioritize properties to receive systems based on risk of exposure to raw sewage. ADPH cannot use this information for criminal penalties or liens.
- Creating a Sustainable and Equitable Public Health and Infrastructure Improvement Plan: Within one year, ADPH will create a plan to improve access to adequate sanitation systems and address public health risks associated with raw sewage exposure.
- Consistently Engaging with the Community: In carrying out each aspect of the interim resolution agreement, ADPH will consistently engage with community residents, local government officials, experts in wastewater, infrastructure, soil and engineering, and environmental justice advocates. ADPH must also engage with community stakeholders on at least a quarterly basis regarding its progress in creating and implementing the final Public Health and Infrastructure Improvement Plan.
As a result of ADPH’s decision to enter into this interim voluntary resolution agreement, the departments have agreed to suspend their investigation. Under Title VI, the Justice Department is required to informally resolve an investigation that indicates noncompliance. If ADPH does not comply with the agreement, the departments will reopen their investigation.
Addressing discriminatory environmental and health impacts through enforcement of the nation’s civil rights laws is a top priority of both the Justice Department and the Department of Health and Human Services. Today’s announcement comes one day prior to the one-year anniversary of the Justice Department’s launch of its Office on Environmental Justice and its Comprehensive Environmental Justice Enforcement Strategy.
The Civil Rights Division’s Federal Coordination and Compliance Section and the HHS Office for Civil Rights conducted this investigation jointly with the support of the U.S. Attorney’s office in the Middle District of Alabama.
Individuals who believe their civil rights have been violated can file a complaint with the Civil Rights Division at www.civilrights.justice.gov/report/. Additional information about the Office for Civil Rights is available on its website at www.hhs.gov/ocr. If you believe that you have been discriminated against in programs or activities that HHS directly operates or to which HHS provides federal financial assistance, you may file a complaint for yourself or someone else at: www.hhs.gov/civil-rights/filing-a-complaint/index.html.
Department of Justice Recognizes Two U.S. Attorney's Office EmployeesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that two U.S. Attorney’s Office employees were among the 159 members of the Justice Department recognized by Attorney General Merrick B. Garland, Deputy Attorney General Lisa Monaco, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 38th Director’s Awards Ceremony yesterday in Washington, D.C.
The Western District of North Carolina was one of 31 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
Fred Hudson was recognized for his exemplary work as the Western District’s Law Enforcement Coordinator (LEC). As an LEC, Mr. Hudson has spent years cultivating relationships with federal, state, and local law enforcement, coordinating law enforcement officer training, and assisting partner agencies with federal grant opportunities. For over 18 years, Mr. Hudson has also spearheaded the Office’s community outreach efforts by fostering relationships with community organizations, schools, service providers, and other important stakeholders, and organizing events and engagement opportunities that advance Department of Justice priorities.
Lia Bantavani was recognized for her work as the Office’s Public Information Officer. In that capacity, Ms. Bantavani handles the Office’s communications with the media and the public, drafts and disseminates press releases, responds to media inquiries and coordinates media interviews. In addition, Ms. Bantavani maintains the Offices’ website and social media accounts, and assists with amplifying the Office’s outreach efforts and Department of Justice initiatives through targeted campaigns that promote public safety.
“I am honored and delighted that Fred and Lia were recognized for their achievements and contributions to furthering the mission of the Justice Department. This well-deserved award speaks to their dedication, hard work and professionalism. Fred and Lia are dedicated public servants who embody our ongoing commitment to serve our communities and further the cause of justice,” said U.S. Attorney King.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Defense Contractor and Chief Executive Officer Resolve False Claims Act and FIRREA Allegations for Misusing Pandemic-Relief FundsRead the Press Release
ALEXANDRIA, Va. – CybeCys, Inc., a defense contractor located in Texas, and its Chief Executive Officer, Harish Vajja of Fairfax, agreed to pay more than $283,000 in civil penalties, damages, and restitution and have repaid the full amount of two pandemic-relief loans to resolve allegations that Vajja transferred funds from the Small Business Administration’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program to his individual investment account, where he used the funds to purchase cryptocurrency and other investments.
The PPP and the EIDL program offered loans to eligible small businesses for economic relief during the COVID-19 pandemic. PPP borrowers were required to certify that they would use the funds to retain workers and maintain payroll or for other permissible purposes. EIDL borrowers were required to certify that they would use the funds solely as working capital to alleviate the economic injury caused by the COVID-19 pandemic.
According to the allegations, Vajja, on behalf of CybeCys, applied for a $954,446 PPP loan and an $80,700 EIDL loan. After CybeCys received the $954,446 PPP loan, Vajja transferred PPP funds to his individual investment account, where he allegedly purchased securities, exchange-traded funds, and cryptocurrency, while CybeCys used other corporate funds to maintain payroll. Vajja also allegedly directed EIDL funds issued to CybeCys to be deposited into his personal bank account, after which he allegedly transferred portions of the funds to his individual investment account and used the funds to purchase securities, exchange-traded funds, and cryptocurrency.
As part of the resolution, CybeCys and Vajja agreed to pay $178,493 in restitution, civil penalties, and damage multipliers under the False Claims Act, and $104,515 in civil penalties under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). CybeCys also repaid the full amounts of the PPP and EIDL loans and agreed not to seek forgiveness of the PPP loan.
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 Internal Revenue Service’s Criminal Investigation, and the Small Business Administration’s Office of Inspector General.
The matter was prosecuted by Assistant U.S. Attorney William Hochul III.
The civil claims are allegations only; there has been no admission of 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.
Defendants Sentenced in Air Force Contract Fraud CaseRead the Press Release
SAN ANTONIO – The four remaining defendants in the fraud case involving former Air Force civilian employee Keith Seguin were sentenced this week in a federal court in San Antonio.
According to court documents, David Joseph Bolduc Jr., 62, of Herndon, Virginia, was the owner and director of operations at QuantaDyn, a software engineering company that worked on Randolph Trainer Development (RTD) simulators at Randolph Air Force Base. From 2007 through 2018, he and others paid $2,375,725.26 in bribes to Seguin in return for Seguin’s influence in obtaining government contracts and subcontracts for QuantaDyn. Bolduc was sentenced to 120 months in prison for one count of conspiracy to commit wire fraud and ordered to pay $37,757,713.93 in restitution to the government in addition to a forfeiture of property and $8,750,775.77.
John G. Hancock, 61, of Fairborn, Ohio, was sentenced to 40 months in prison for one count of conspiracy to commit wire fraud and ordered to pay $23,769,884.41 in restitution to the government. Hancock and co-conspirator Karen K. Paulsen aided Seguin in unlawfully manipulating the award amounts and winners of federal contracts, to corrupt contracting processes, and to defraud the Air Force, General Services Administration (GSA), and companies competing for government contracts.
Paulsen, 59, of Beaver Creek, Ohio, was sentenced for one count of conspiracy, to five years of probation with six months home confinement and 100 hours of community service during each year of probation. She was also ordered to pay $8,015,860.00 in restitution to the government.
Rubens Wilson Fiuza Lima, 73, of Marietta, Georgia, was sentenced to 27 months in prison and ordered to pay $653,984.20 in restitution to the government for one count of conspiracy. As a friend of Seguin, Lima took a job as a subcontractor on an RTD contract in Texas, used his business Impex Import Export Inc. to assist Seguin by disguising the bribe money paid to Seguin as legitimate purchases of supplies and equipment related to flight simulators.
“The sentences handed down in this case send a clear message that corrupt behavior will not be tolerated, especially when it involves the safety and security of our nation’s military,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “We are grateful for the hard work of our law enforcement partners in uncovering this corruption and holding these co-conspirators accountable. My office will continue to work tirelessly to protect the integrity of our government contracts, ensuring taxpayer dollars are spent wisely.”
“The successful prosecution and sentencing of additional defendants demonstrate our unrelenting pursuit of justice in the face of complex criminal networks. Each co-conspirator played an active role in facilitating this fraudulent scheme and inflicted significant harm on the integrity of our institutions,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation’s Houston Field Office. “Our team remains committed to working together to dismantle such schemes and safeguard the interests of our nation.”
“The results of this investigation exemplify the skill, persistence, and professionalism of the special agents, auditors, analysts, and attorneys who worked together to achieve justice and maintain taxpayer confidence in the integrity of the federal procurement system," said Special Agent in Charge Jamie M. Willemin for GSA OIG Southwest and Rocky Mountain Investigations Division. "Their efforts and dedication should be applauded.”
"The Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) is committed to combating corruption that pollutes the DoD contracting process," said Acting Special Agent in Charge Gregory Shilling for DCIS Southwest Field Office. "These results are a reflection of the steadfast vigilance of DCIS and our investigative partners to protect against those who seek to fraudulently enrich themselves at the expense of the American taxpayer."
"The sentences reflect the results of the skilled and hard work put forth by all agencies involved," said Special Agent in Charge Blair Holmstrand, Air Force Office of Special Investigations, Procurement Fraud Detachment 3.
"This week’s sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in their pursuit of those who choose to defraud the government," said Special Agent in Charge Larry S. Moreland, of the Department of the Army Criminal Investigation Division’s, Major Procurement Fraud Field Office.
The GSA OIG; DCIS; AFOSI; Army CID; and IRS-CI investigated the case.
Assistant U.S. Attorneys William Lewis, Kelly Stephenson and Special Assistant U.S. Attorney Jay Porier prosecuted the case.
###
Defendants Convicted on Child Pornography Charges Receive Lengthy Prison SentencesRead the Press Release
LAKE CHARLES, La. – Two men convicted of receipt of child pornography appeared in federal court today for sentencing, announced United States Attorney Brandon B. Brown. United States District Judge James D. Cain, Jr. sentenced Terrence Landry and Steven M. Stinnett as follows:
Terrence Landry, 34, of Lake Charles, Louisiana, was sentenced to 210 months (17 years, 6 months) in prison, followed by 10 years of supervised release. In May 2020, agents with the Louisiana Bureau of Investigation received a complaint from the National Center for Missing and Exploited Children (NCMEC) regarding the possible distribution of child pornography originating in Lake Charles, Louisiana. Further investigation by agents revealed that the subscriber of the IP address associated with the images of child pornography was Landry. Agents obtained a search warrant and subsequently searched the residence of Landry. Numerous computers and electronic equipment belonging to Landry were seized and analyzed by law enforcement. Agents determined that those electronic devices contained over 5,000 still images and more than 400 videos containing child pornography, some of which depicted prepubescent children engaged in sexual activity with adults. Landry admitted to receiving specific images via the internet in May 2016, knowing that they contained child pornography. Landry pleaded guilty to the charge of receipt of child pornography on April 13, 2022.
The case was investigated by the Department of Homeland Security Investigations and Louisiana Bureau of Investigation and prosecuted by Assistant U.S. Attorney Craig R. Bordelon.
Steven M. Stinnett, 51, of Lake Charles, Louisiana, a former associate professor at McNeese State University, was sentenced to 151 months (12 years, 7 months) in prison, followed by a lifetime of supervised release. On November 17, 2022, law enforcement officers in Calcasieu Parish executed a search warrant at the residence of Stinnett. Officers seized computers and electronic equipment during the search. Agents with the Department of Homeland Security Investigations conducted a forensic review of Stinnett’s computer and found numerous images and videos containing child sexual abuse material. Stinnett admitted that one of the child pornography images was received via the internet in April 2017 and depicted a prepubescent female in a sexually explicit manner. Stinnett admitted to having 228 still images and 57 videos containing child sexual abuse material in his possession. Stinnett pleaded guilty to a charge of receipt of child pornography on February 3, 2023.
The case was investigated by the Department of Homeland Security Investigations and McNeese State University Police and prosecuted by Assistant U.S. Attorney Craig R. Bordelon.
These cases are part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
# # #
Colorado Man Pleads Guilty to Federal Hate Crime for Church ArsonRead the Press Release
A Colorado man pleaded guilty today to a hate crime charge in connection with a fire he set to a church in Loveland, Colorado.
According to court documents and admissions during the plea hearing, Darion Ray Sexton, 22, intentionally set fire to the church in the evening hours of Jan. 19. Sexton admitted that he set this fire by throwing two Molotov cocktails at the church – one at the front door and the other at the basement. Sexton further admitted that he was motivated to set this fire due to the religious character of the church and that he intended to destroy the church.
“Protecting religious freedom and observance is a top priority for the Department of Justice,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue to vigorously prosecute those who attack houses of worship and target religious communities.”
“We all have a right to feel safe and secure in our houses of worship – no matter our religion or belief,” said U.S. Attorney Cole Finegan for the District of Colorado. “An act of violence in one of our sacred places is especially serious, and we will work with our law enforcement partners to vigorously prosecute all such offenses.”
“The FBI treats hate crimes as the highest priority of our civil rights program because everyone deserves to feel safe to exercise their religion without fear of violence from others,” said Special Agent in Charge Mark Michalek of the FBI Denver Field Office. “FBI Denver is committed to protecting those rights, and we will continue to aggressively work with our law enforcement partners to bring justice to all communities that have been targeted.”
The sentencing hearing is scheduled for July 21. Sexton faces a maximum sentence of 20 years in prison and a $250,000 fine.
The FBI, ATF and the Loveland Police and Fire Departments investigated the case.
Assistant U.S. Attorney Bryan D. Fields for the District of Colorado and Trial Attorney Maura White of the Civil Rights Division’s Criminal Section are prosecuting the case.