Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 25 April 2023
Retired CHP Officer Pleads Guilty to Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Timothy Allen Horwath, 53, formerly of Redding, pleaded guilty today to receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between Feb. 25, 2019, and Oct. 10, 2019, Horwath knowingly received visual depictions of children engaging in sexually explicit conduct. At the time of his offense, Horwath was employed as a patrol officer by the California Highway Patrol. Horwath’s pretrial release was revoked on Feb. 24, 2023, after he violated his bond conditions by accessing the internet and using smart phones and tablet computers that he was prohibited from possessing. Horwath agreed to deposit $75,000 into the Court’s financial registry to be used to pay any court-ordered restitution to victims, assessments, and other financial penalties.
This case is the product of an investigation by the California Highway Patrol’s Computer Crime Investigation Unit and the Federal Bureau of Investigation. Assistant U.S. Attorney Christina McCall is prosecuting the case.
Horwath is scheduled to be sentenced on Aug. 22, 2023, by U.S. District Judge John A. Mendez. Horwath faces a mandatory minimum sentence of five years in prison and a maximum statutory penalty of 20 years in prison, a fine of up to $250,000, and restitution to the victims of the offense. The actual sentence, however, will 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Reno Man Sentenced to 10 Years in Prison for Dealing Large Amount of MethamphetamineRead the Press Release
RENO, Nev. – A Reno man was sentenced yesterday by United States District Chief Judge Miranda M. Du to 10 years in prison followed by five years of supervised release for distributing a large amount of methamphetamine.
James Raymond Ellis, 53, also known as “Jimbo,” pleaded guilty in December 2022 to possession with intent to distribute a controlled substance.
According to court documents and statements made in court, between May and June 2021, Ellis sold over 4 pounds of methamphetamine and 5 firearms, including an AR-15, to confidential informants. On August 20, 2021, law enforcement seized approximately 12 pounds of methamphetamine from Ellis’ residence. The Northern Nevada Safe Streets Task Force arrested him that day in Reno. When Ellis was taken into custody, he had a 9mm pistol in his vehicle. Ellis has a prior felony conviction in Nevada for possession of a chemical with intent to manufacture a controlled substance, and he is prohibited by law from possessing firearms.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
This case was investigated by the Northern Nevada Safe Streets Task Force, which is comprised of members from the FBI, Reno Police Department, Nevada State Police, Nevada Gaming Control Board, Douglas County Sheriff’s Office, Carson City Sheriff’s Office, and the Nevada Department of Corrections. Assistant U.S. Attorney Andolyn Johnson prosecuted the case.
This effort was 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.
###
Readout of U.S. Attorney General Merrick B. Garland’s Meeting with Ukraine Chief Justice Vsevolod KniazievRead the Press Release
U.S. Attorney General Merrick B. Garland met Tuesday in Washington, D.C., with Ukraine Chief Justice Vsevolod Kniaziev.
The Attorney General reaffirmed the Department’s steadfast commitment to accountability for Ukraine. Chief Justice Kniaziev thanked Attorney General Garland for the Justice Department’s support.
In the meeting, Chief Justice Kniaziev spoke about Ukraine’s justice system – the challenges posed by wartime conditions, his dedication to continuity of operations, and Ukraine’s ongoing implementation of justice sector reforms consistent with our countries’ shared democratic values that will deliver justice and uphold the rule of law. Both leaders discussed the need for openness and transparency in ensuring public trust in the judiciary and expanding access to justice, especially in those areas most affected by the war. Chief Justice Kniaziev and Attorney General Garland agreed on the importance of deepening U.S.-Ukraine cooperation to strengthen democracy and to build a judicial system that can provide justice for all, including victims of war crimes and other atrocities.
Also at the meeting was Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Ukraine’s Ambassador to the United States Oksana Markarova.
U.S. Attorney General Garland with Ukrainian Chief Justice Vsevolod Kniaziev and Ukrainian Ambassador to the U.S. Oksana Markarova U.S. Attorney General Garland with Ukrainian Chief Justice Vsevolod KniazievReadout of Deputy Attorney General Lisa O. Monaco’s Trip to California and ColoradoRead the Press Release
Deputy Attorney General (Deputy AG) Lisa O. Monaco traveled to San Francisco, California, and Aurora, Colorado this week to highlight the Justice Department’s forward-leaning approach to disrupting cyber threats and the weaponization of technology, and its efforts to root out sexual abuse at the Bureau of Prisons.
Deputy AG Monaco delivered an opening keynote at RSA Conference 2023, where she discussed the Justice Department’s pivot in its cyber strategy to prioritize near-term disruptions and victim protection. In a conversation moderated by Chris Krebs, the first director of the Cybersecurity and Infrastructure Security Agency (CISA), the Deputy AG emphasized that victim reporting has been integral to the success of disruptive law enforcement actions and stressed that true partnership involves the government and private industry working hand in hand, explaining: “We cannot get after these threats if we’re not working together.”
At the RSA Conference, Deputy AG Monaco also emphasized the Justice Department’s heightened focus on the emerging threat posed by adversaries abusing critical technology and data. Earlier in the day, she led a roundtable discussion, hosted by the Silverado Policy Accelerator, with legal, technology, and venture capital executives to discuss the Department’s partnership with private industry in these efforts, including through the newly created Disruptive Technology Strike Force, a multi-agency effort targeting illicit proliferation of critical technologies and hardening supply chains.
While in San Francisco, the Deputy AG also spoke at a gathering of cybersecurity officials from law enforcement agencies and governments around the world about the importance of strong cross-border collaboration to tackle the cyber threats of today and prepare for those of tomorrow.
In Colorado, Deputy AG Monaco addressed all wardens of the Federal Bureau of Prisons (BOP) during their first in-person training since the onset of the COVID-19 pandemic. She commended the wardens for their dedication to BOP’s dual responsibility to provide safe and humane custodial conditions, and to ensure that those in custody return to their communities fully prepared to be good neighbors. The Deputy AG also echoed the importance of the BOP’s new mission statement announced today by Director Peters, which emphasizes safety, security, normalcy, and reentry.
Speaking during Sexual Assault Awareness month, the Deputy AG thanked the wardens for their commitment to the Department’s ongoing efforts to address sexual misconduct within the BOP. She stressed: “It is only by empowering Bureau officials, at every level, to report abuse; by setting a tone of respect and humanity from the top; by fostering a culture that does not tolerate even one instance of sexual abuse—only then can we make true progress in addressing this problem. Let me be clear: this is a top priority at the highest levels of the Department of Justice, and it must be a top priority for each of you.”
The Deputy AG also announced the creation of the Sexual Abuse Facility Evaluation & Review (SAFER) teams, which will visit women’s facilities in each of the BOP’s six regions to measure progress in implementing the more than 50 recommendations issued last November by a working group of senior Department officials reviewing the issue of sexual abuse at BOP facilities. The SAFER teams, comprised of members of the Department’s standing Advisory Group dedicated to the issue, will deploy over the coming weeks and engage directly with both BOP personnel and incarcerated individuals to ensure a safe environment for all.
Private Oklahoma City School Pays $354,000 to Settle Allegations of Submitting False Claims to Tricare for Services Provided to Students with AutismRead the Press Release
OKLAHOMA CITY – Good Shepherd Catholic School, Inc. (“GSCS”), paid $354,000 to settle civil claims by the United States stemming from allegations that GSCS submitted false claims to TRICARE for services provided to students with autism, announced United States Attorney Robert J. Troester.
GSCS is a non-profit private educational institution located in Oklahoma City, Oklahoma. TRICARE is a health care program of the United States Department of Defense Military Health System. GSCS serves students with autism and other neurological disorders. As part of its program, GSCS provides Applied Behavior Analysis therapy ("ABA") services to students diagnosed with Autism Spectrum Disorder. GSCS submitted claims to TRICARE for providing ABA services to TRICARE beneficiaries. TRICARE requires that ABA services be delivered by a TRICARE authorized provider to a TRICARE beneficiary on a one-on-one basis.
The United States alleges that from May 13, 2013, to December 20, 2016, GSCS knowingly submitted false or fraudulent claims to TRICARE for providing ABA services to TRICARE beneficiaries. The claims were allegedly false or fraudulent because the ABA services were provided in a group setting and not on a one-on-one basis as required. To resolve the claims, GSCS agreed to pay $354,000 to the United States.
In reaching this settlement, GSCS did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Defense Criminal Investigative Service. Assistant U.S. Attorney Ronald R. Gallegos prosecuted the case.
Pharr man pleads guilty to exporting .50 caliber ammunitionRead the Press Release
McALLEN, Texas – A 21-year-old Pharr resident has pleaded guilty to smuggling goods from the United States, announced U.S. Attorney Alamdar S. Hamdani.
Pedro Cruz Almeida Jr. admitted to attempting to export .50 caliber tracer-equipped linked ammunition without a license to export.
On Feb. 3, Almeida was driving a red Hyundai Elantra, at which time authorities conducted a traffic stop.
A subsequent search led to the discovery of 600 rounds of .50 caliber ammunition in the vehicle. Almeida admitted he intended to transfer the ammunition to an individual waiting at the Port of Entry driving a vehicle with a Tamaulipas, Mexico, license plate. In Mexico, he received cash to order the ammunition. Almeida admitted he ordered ammunition approximately 30 occasions over the past year.
On Feb. 9, agents subsequently seized an additional 300 rounds of .50 caliber ammunition postmarked to Almeida.
At the plea today, Almeida informed the court he was attending a local police academy at the time of his arrest.
U.S. District Judge Micaela Alvarez accepted the plea and set sentencing for July 27. At that time, Almeida faces up to 10 years in federal prison.
Almeida was permitted to remain on bond pending sentencing
Homeland Security Investigations conducted the investigation with the assistance of the Hidalgo County Constable’s Office. Assistant U.S. Attorney Peter I. Brostowin is prosecuting the case.
This case is being prosecuted as part of the joint federal, state and local Project Safe Neighborhoods (PSN) Program. In May 2021, Attorney General Merrick B. Garland announced a new effort to reduce violent crime, including the gun violence that is often at its core. Integral to that effort was the reinvigoration of PSN, a two-decade old, evidence-based and community-oriented program focused on reducing violent crime. The updated PSN approach, outlined in the department’s Comprehensive Strategy for Reducing Violent Crime is guided by four key principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence, setting focused and strategic enforcement priorities and measuring the results of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
Pawtucket Man Admits to Being an Armed Heroin TraffickerRead the Press Release
PROVIDENCE – A Pawtucket man admitted to a federal judge on Monday that he was in possession of more than two kilos of fentanyl, a loaded Glock handgun, and nearly $80,000 in cash when Pawtucket Police executed a court-authorized search of his home and arrested him in October 2019, announced United States Attorney Zachary A. Cunha.
Appearing in U.S. District Court, Adrian Montalvo, 36, pleaded guilty to charges of possession with intent to distribute 40 grams of more of fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
According to information presented to the court, members of the Pawtucket Police Department’s Special Squad /Narcotics Unit developed information that Montalvo, previously convicted multiple times in state courts for trafficking narcotics, was selling large quantities of fentanyl in the city of Pawtucket. Following an investigation that included surveillance of Montalvo and his residence, Pawtucket Police requested and received a court-authorized search warrant for his residence. Pawtucket Police executed the search warrant on October 1, 2019, and seized a total of 2,118.35 grams of fentanyl; $79,106 in cash; a Glock 9mm semi-automatic pistol with an obliterated serial number; as well as several items used in the preparation and packaging of fentanyl for distribution.
Montalvo is scheduled to be sentenced on July 27, 2023. The defendant’s sentences will be determined by a federal judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
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.
###
Oklahoma City Man Charged with Setting Fire to Local ChurchRead the Press Release
OKLAHOMA CITY – Yesterday, a criminal complaint was unsealed that charges OSCAR REYNALDO GOMEZ, 54, of Oklahoma City, with arson of the God of No Limits Church located at 7200 South Walker Avenue, in Oklahoma City, announced United States Attorney Robert J. Troester.
Public records reflect that on April 23, 2023, Gomez was charged by criminal complaint with one count of arson. An affidavit filed in support of the criminal complaint alleges that the Oklahoma City Fire Department was dispatched to the God of No Limits (GONL) Church in the early morning hours of April 17, 2023. Fire crews arrived and observed fire emanating from the GONL, which caused significant damage to its roof.
According to the affidavit, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) identified Gomez as the person responsible for setting the fire and thereafter arrested him.
Yesterday, Gomez had his initial appearance on the complaint in federal court. The court ordered Gomez detained pending further proceedings in the case. If found guilty of arson, Gomez faces not less than five years and up to twenty years in federal prison, three years of supervised release, and a fine of $250,000.
This case is the result of an investigation by the National Response Team for the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Oklahoma City Fire Department. Assistant U.S. Attorney Stanley J. West is prosecuting the case.
The public is reminded that these charges are merely allegations, and that the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Reference is made to public records for more information.
Oficial de inteligencia militar extranjero condenado por su papel en un concierto internacional de narcotráficoRead the Press Release
Un ex oficial colombiano de inteligencia militar fue condenado hoy a una pena de 12 años de prisión por su participación en un concierto para distribuir cocaína para su importación a Estados Unidos.
De acuerdo con documentos judiciales, desde agosto de 2017 hasta abril de 2018, Fabián Humberto Tovar Caicedo, de 41 años, un sargento del Servicio de Inteligencia del Ejército Nacional de Colombia, ayudó a una organización de narcotráfico y concertó para enviar cargamentos de miles de kilogramos de cocaína de Colombia a México para su importación final a Estados Unidos. Entre otros servicios corruptos que Tovar Caicedo ofrecía a la organización de narcotráfico, se incluyen la colocación en el puerto de Santa Marta de policías dispuestos a facilitar la exportación de cocaína a cambio de remuneración; la sugerencia de utilizar los mismos teléfonos que la DEA usa para seguridad; la puesta a disposición de su experiencia militar para encriptar dichos teléfonos para seguridad adicional y el intento de venderle una lista de cooperadores de la DEA a la organización de narcotráfico.
Tovar Caicedo coordinó múltiples reuniones en apoyo del ardid para distribuir la cocaína. Él y sus cómplices concertaron para enviar múltiples cargamentos, que comenzaron en unos 1.000 kilogramos y alcanzaron hasta 10.000 kilogramos de cocaína por cargamento. Según la declaración de los hechos, un miembro de la organización de narcotráfico viajó a México para negociar la entrega de la cocaína con un oficial de alto rango de las fuerzas armadas de México.
Uno de los cómplices de Tovar Caicedo, Fabián Andrés Leyton Vargas, se aprovechaba de su cargo como oficial de la Fuerza Aérea de Colombia del Ministerio de Defensa de Colombia para identificar a funcionarios de seguridad y del orden público en el puerto de Santa Marta y comunicarse con ellos para sobornarlos. Una vez que dichos funcionarios recibían sus pagos corruptos, ellos aseguraban que los contenedores contaminados con cocaína pasaran por el puerto sin inspeccionarse. Empleando este método, Leyton Vargas, junto con los cómplices Antonio Aldemar Ávila Acevedo y José Mauricio Castañeda Garzón, intentaron enviar 1,773 kilogramos de cocaína de Colombia a Guatemala en ruta hacia Estados Unidos en julio de 2017, así como 2,081 kilogramos de cocaína de Colombia a México en ruta hacia Estados Unidos en marzo de 2018. Las fuerzas del orden público colombianas incautaron ambos cargamentos antes de que pudieran salir del puerto.
Un acusado en una causa relacionada, José María Fragoso D’Acunti, aprovechándose de su cargo anterior con la Policía Nacional de Colombia, además de conexiones personales, identificó y sobornó a funcionarios de seguridad y del orden público en el puerto de Cartagena en Colombia, para apoyar al tráfico de cocaína por parte de su organización. Fragoso D’Acunti y sus cómplices planearon traficar cocaína en cantidades de cientos de kilogramos, con un valor de millones de dólares estadounidenses, a Europa, al causar que dicha cocaína se ocultara a bordo de contendores comerciales de embarque. En noviembre de 2018, en el puerto de Savannah, Georgia, las autoridades del orden público de EE. UU. incautaron 516 kilogramos de cocaína enviados de Cartagena por la organización de narcotráfico de Fragoso D’Acunti, en ruta a Amberes, Bélgica. La cocaína se había mezclado con piñas en un contendor de embarque. En diciembre de 2018, de nuevo en el puerto de Savannah, Georgia, las autoridades del orden público de EE. UU. incautaron otros 205 kilogramos de cocaína enviados de Cartagena por la organización de narcotráfico de Fragoso D’Acunti, también en ruta a Bélgica. La cocaína se había mezclado con limas en un contendor de embarque. En apoyo del concierto, Fragoso D’Acunti pagó mil millones de pesos colombianos, lo cual equivale a más de $300,000 dólares estadounidenses, de soborno a un oficial de seguridad portuaria.
Fragoso D’Acunti, Fabián Andrés Leyton Vargas y Antonio Aldemar Ávila Acevedo fueron condenados a 12 años de prisión. El cómplice José Mauricio Castañeda Garzón fue condenado a siete años y cuatro meses de prisión.
Las Fuerzas de Tarea contra la Delincuencia Organizada y los Delitos Asociados al Narcotráfico (OCDETF, por sus siglas en inglés) apoyó estas causas. OCDETF identifica, interrumpe y desarticula a organizaciones delictivas transnacionales, pandillas, narcotraficantes y lavadores de dinero de gran envergadura que amenazan a los Estados Unidos, mediante una estrategia multiinstitucional, dirigida por fiscales y basada en inteligencia, la cual moviliza el potencial de los organismos de seguridad federales, estatales y locales en contra de redes criminales.
El fiscal general auxiliar Kenneth A. Polite, Jr., de la División Penal del Departamento de Justicia, la fiscal de EE. UU. para el Distrito Este de Virginia Jessica D. Aber y el agente especial a cargo de la División de la DEA en Louisville (estado de Kentucky) J. Todd Scott hicieron el anuncio.
La División de la DEA en Louisville y la Oficina de la DEA en Cartagena investigaron el caso, con cuantiosa asistencia de la Unidad de Explotación de Documentos y de los Medios de la Oficina de Inteligencia Especial de la DEA; y la Unidad de Investigaciones Bilaterales de la División de Operaciones Especiales, además de las oficinas de la DEA en Bogotá, Panamá, Ciudad de Guatemala, San José (Costa Rica), Bruselas, Ciudad de México, Madrid, Fráncfort, Londres, París, Roma, La Haya, Viena, Hong Kong, Islamabad, Savannah, Detroit, Tampa – PANEX y Nueva Orleans. El Centro Nacional de Identificación de Objetivos de la Oficina de Aduanas y Protección Fronteriza (CBP, por sus siglas en inglés) también brindó cuantiosa asistencia. La Policía Nacional de Colombia, la Policía Federal de Bélgica, el Zolfahndungsamt de Alemania, la Policía Nacional de los Países Bajos y la Guardia di Finanza de Italia también brindaron asistencia clave.
Los fiscales litigantes Douglas Meisel y Janet Turnbull de la Unidad de Narcóticos y Drogas Peligrosas (NDDS, por sus siglas en inglés) de la División Penal y el fiscal auxiliar de EE. UU. Anthony T. Aminoff del Distrito Este de Virginia procesaron la causa.
Los fiscales litigantes de NDDS Meisel y Teresita Mutton y el fiscal auxiliar de EE. UU. Aminoff del Distrito Este de Virginia están procesando la causa contra Fragoso D’Acunti.
Los fiscales auxiliares de EE. UU. Aminoff (entonces de la NDDS), Katie Rumbaugh y Dave Peters para el Distrito Este de Virginia procesaron la causa contra Leyton Vargas, Ávila Acevedo y Castañeda Garzón.
La Oficina de Asuntos Internacionales del Departamento de Justicia y la Agregaduría Judicial en la Embajada de EE. UU. en Bogotá brindaron cuantiosa ayuda para lograr la detención y extradición de los acusados.
New York Lawyers and Doctor Sentenced for Defrauding New York City-Area Businesses and Their Insurance Companies of More Than $31 Million Through Massive Trip-And-Fall Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that attorneys GEORGE CONSTANTINE and MARC ELEFANT and orthopedic surgeon ANDREW DOWD were sentenced yesterday and today for their participation in a massive trip-and-fall fraud scheme between 2013 and 2018. CONSTANTINE and DOWD, who were convicted at trial in December 2022 of mail fraud, wire fraud, and conspiracy to commit mail and wire fraud, were each sentenced to 102 months in prison. ELEFANT, who pled guilty to one count of conspiracy to commit wire fraud, was sentenced to 24 months in prison. U.S. District Judge Sidney H. Stein imposed all three sentences.
U.S. Attorney Damian Williams said: “George Constantine, Andrew Dowd, and Marc Elefant abused their professional licenses and degrees and exploited some of the most vulnerable members of society – many of whom were poor, drug addicts, or homeless – in order to enrich themselves through this egregious trip-and-fall fraud scheme. As officers of the court, Constantine and Elefant had a duty to honestly represent their clients and uphold the rule of law. Instead, they filed hundreds of fraudulent lawsuits that were filled with lies and stole millions of dollars from small businesses and insurance companies. Likewise, Dowd, as a medical doctor, took an oath to do no harm. But motivated by pure greed, Dowd performed hundreds of medically unnecessary surgeries, earning thousands of dollars per surgery. These sentences send a clear message to all who chose to engage in fraud – no matter their professional title or degree – that they will be held accountable.”
According to the Indictment, the evidence presented in court during trial, and other statements made during court proceedings:
Between 2013 and 2018, CONSTANTINE, ELEFANT, and DOWD, among others, engaged in an extensive fraud scheme (the “Fraud Scheme” or “Scheme”), through which Scheme participants defrauded businesses and insurance companies by staging trip-and-fall accidents and filing fraudulent lawsuits arising from those staged trip-and-fall accidents. CONSTANTINE and ELEFANT were personal injury lawyers involved in the Scheme, while DOWD was an orthopedic surgeon.
Fraud Scheme participants recruited individuals (the “Patients”) to stage or falsely claim to have suffered trip-and-fall accidents at particular locations throughout the New York City area (the “Accident Sites”). In the course of the Fraud Scheme, Scheme participants recruited more than 400 Patients. Members of the Fraud Scheme often recruited Patients who were extremely poor. For example, it was common for Patients to ask for food when they would appear for their intake meetings with the lawyers. Many of the Patients did not have sufficient clothing to keep them warm during the winter and had poor quality shoes. Members of the Fraud Scheme also recruited Patients who were drug addicts, and it was common for Scheme participants to recruit Patients from homeless shelters in New York City.
In the beginning, Scheme participants would instruct Patients to claim they had tripped and fallen at a particular location, when in fact, the Patients had suffered no such accidents. Eventually, at the direction of the lawyers who filed fraudulent lawsuits on behalf of the Patients, Scheme participants began to instruct Patients to stage trip-and-fall accidents, i.e., to go to a location and deliberately fall. Common Accident Sites used during the Fraud Scheme included cellar doors, cracks in concrete sidewalks, and purported “potholes.”
After the staged trip-and-fall accidents, Patients were referred to specific attorneys, including CONSTANTINE and ELEFANT, who would file personal injury lawsuits (the “Fraudulent Lawsuits”) against the owners of the Accident Sites and/or insurance companies of the owners of the accident sites (the “Victims”). The Fraudulent Lawsuits did not disclose that the Patients had deliberately fallen at the Accident Sites or, in some cases, had not fallen at all. During the course of the Fraud Scheme, the defendants, together with others, attempted to defraud the Victims of more than $31,000,000. CONSTANTINE personally filed nearly 200 Fraudulent Lawsuits and earned more than $5 million dollars in settlement fees from these fraudulent cases. ELEFANT likewise filed nearly 200 Fraudulent Lawsuits and earned millions of dollars in settlement fees.
The Patients were also instructed to receive ongoing chiropractic and medical treatment from certain chiropractors and doctors, including DOWD. The Fraud Scheme participants advised the Patients that if they intended to continue with their lawsuits, they were required to undergo surgery, which was critical to boosting the value of any potential settlement. Patients generally were told to undergo two surgeries. Fraud Scheme participants looked for doctors, like DOWD, who were willing to perform surgeries, even when others would not. During the course of the Scheme, DOWD performed nearly 300 medically unnecessary surgeries and earned more than $3.2 million dollars. DOWD received approximately $10,000 per surgery.
* * *
In addition to their prison terms, CONSTANTINE, 60, of Plainview, New York, DOWD, 67, of Miller Place, New York, and ELEFANT, 50, of Woodmere, New York, were each sentenced to three years of supervised release. CONSTANTINE was further ordered to pay $4,774,709 in forfeiture. DOWD was further ordered to pay $2,900,905 in forfeiture. ELEFANT was further ordered to pay $955,281.54 in forfeiture. Restitution will be decided by the Court within 90 days of today’s sentencings.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked the National Insurance Crime Bureau for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas Chiuchiolo, Nicholas Folly, Danielle Kudla, and Alexandra Rothman are in charge of the prosecution.
New York Attorney Pleads Guilty to Conspiring to Commit Money Laundering to Promote Sanctions Violations by Associate of Sanctioned Russian OligarchRead the Press Release
A New York attorney pleaded guilty today to participating in a scheme to make approximately $3.8 million in U.S. dollar payments to maintain six real properties in the United States that were owned by Viktor Vekselberg, a sanctioned oligarch.
According to court documents, Robert Wise of Pelham, New York, pleaded guilty to one count of conspiring to commit international money laundering, which carries a maximum sentence of five years in prison. Wise also agreed to forfeit more than $3.7 million and to be satisfied by a payment of $210,441. Sentencing is scheduled for Nov. 6.
According to the allegations in the information filed in Manhattan federal court today and other public filings:
On April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Vekselberg as a Specially Designated National (SDN) in connection with its finding that the actions of the Government of the Russian Federation in Ukraine constituted an unusual and extraordinary threat to the national security and foreign policy of the United States. On or about March 11, 2022, OFAC redesignated Vekselberg as an SDN and blocked Vekselberg’s yacht and private airplane.
Prior to his designation by OFAC, between approximately 2008 and 2017, Vekselberg, through a series of shell companies, acquired six real properties in the United States, specifically, (i) two apartments on Park Avenue in New York, New York, (ii) an estate in Southampton, New York, (iii) two apartments on Fisher Island, Florida, and (iv) a penthouse apartment also on Fisher Island, Florida (collectively, the Properties). As of the date of this information, the Properties were worth approximately $75 million.
Voronchenko, Vekselberg’s longtime associate, retained Wise, an attorney who practiced in New York, New York, to assist in the acquisition of the Properties. Wise also managed the finances of the Properties, including by paying common charges, property taxes, insurance premiums, and other fees associated with the Properties in U.S. dollar transactions from Wise’s interest on lawyer’s trust account (IOLTA account).
In particular, prior to Vekselberg’s designation as an SDN, between approximately February 2009 and March 2018, shell companies owned by Vekselberg sent approximately 90 wire transfers totaling approximately $18.5 million to the IOLTA account. At the direction of Voronchenko and his family member who lived in Russia, Wise used these funds to make various U.S. dollar payments to maintain and service the Properties.
Immediately after Vekselberg’s designation as an SDN, the source of the funds used to maintain and service the Properties changed. The IOLTA Account began to receive wires from a bank account in the Bahamas held in the name of a shell company controlled by Voronchenko, Smile Holding Ltd., and from a Russian bank account held in the name of a Russian national who was related to Voronchenko. Between approximately June 2018 and March 2022, approximately 25 wire transfers totaling approximately $3.8 million were sent to WISE’s IOLTA account. Although the source of the payments changed, the management of the payments remained the same as before: Wise used these funds to make various U.S. dollar payments to maintain and service the Properties, and he did so knowing that he was promoting sanctions violations. Additionally, after Vekselberg was sanctioned in 2018, Voronchenko, Wise, and others tried to sell both the Park Avenue apartment and the Southampton estate. No licenses from OFAC were applied for or issued for these payments or attempted transfers.
An indictment charging co-conspirator Vladimir Voronchenko, aka Vladimir Vorontchenko, who is a fugitive, was unsealed on Feb. 7. A civil forfeiture complaint was filed against the Properties on Feb. 24.
The FBI and Homeland Security Investigations are investigating the case. The Justice Department’s National Security Division and Office of International Affairs, and OFAC provided valuable assistance.
Assistant U.S. Attorneys Jessica Greenwood, Joshua A. Naftalis, and Sheb Swett for the Southern District of New York are prosecuting the case.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
New York Attorney Pleads Guilty to Conspiring to Commit Money Laundering to Promote Sanctions Violations by Associate of Sanctioned Russian OligarchRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Andrew C. Adams, the Director of Task Force KleptoCapture, Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and Jeffrey B. Veltri, Special Agent in Charge of the Miami Field Office of the Federal Bureau of Investigation (“FBI”), announced today that ROBERT WISE, a New York attorney, pled guilty to participating in a scheme to make approximately $3.8 million in U.S. dollar payments to maintain six real properties in the United States that were owned by Viktor Vekselberg, a sanctioned oligarch. WISE pled guilty before U.S. District Court Judge Mary Kay Vyskocil.
U.S. Attorney Damian Williams said “With today’s guilty plea, Robert Wise has admitted that he misused his position of trust as a lawyer, laundering money to promote sanctions violations by Viktor Vekselberg’s longtime associate, Vladimir Voronchenko. This Office is proud to continue its work to enforce the sanctions imposed in response to Russia’s illegal war in Ukraine.”
Director of Task Force KleptoCapture Andrew C. Adams said: “From its inception, the Task Force has targeted those enablers of money laundering and sanctions evasion who aim to hide crime behind a veneer of professionalism. Admission to the bar carries with it a public trust that attorneys will act with honesty and integrity – a trust that Robert Wise chose to betray in exchange for an easy, illicit paycheck. The Task Force will continue to pursue those who have made the same poor decision.”
HSI Special Agent in Charge Ivan J. Arvelo said: “The ill-gotten proceeds of Russia’s oligarchs do not move and hide themselves. Instead, the funds derived from Russia’s crony capitalism are secreted around the world in luxury assets by a professional class of enablers who specialize in secretive methods to shield the true owners and beneficiaries of the assets from detection, investigation, and enforcement. Today, working with our partners at the Department of Justice, HSI continues to fulfill our promise to hold all individuals accountable for their actions, especially those that betray their ethical codes.”
According to the allegations in the Information filed in Manhattan federal court today and other public filings:
On April 6, 2018, the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated Vekselberg as a Specially Designated National (“SDN”) in connection with its finding that the actions of the Government of the Russian Federation in Ukraine constituted an unusual and extraordinary threat to the national security and foreign policy of the United States. On or about March 11, 2022, OFAC redesignated Vekselberg as an SDN and blocked Vekselberg’s yacht and private airplane.
Prior to his designation by OFAC, between approximately 2008 and 2017, Vekselberg, through a series of shell companies, acquired six real properties in the United States, specifically, (i) two apartments on Park Avenue in New York, New York, (ii) an estate in Southampton, New York, (iii) two apartments on Fisher Island, Florida, and (iv) a penthouse apartment also on Fisher Island, Florida (collectively, “the Properties”). As of the date of this Information, the Properties were worth approximately $75 million.
Voronchenko, Vekselberg’s longtime associate, retained WISE, an attorney who practiced in New York, New York, to assist in the acquisition of the Properties. WISE also managed the finances of the Properties, including by paying common charges, property taxes, insurance premiums, and other fees associated with the Properties in U.S. dollar transactions from WISE’s interest on lawyer’s trust account (“IOLTA account”).
In particular, prior to Vekselberg’s designation as an SDN, between approximately February 2009 and March 2018, shell companies owned by Vekselberg sent approximately 90 wire transfers totaling approximately $18.5 million to the IOLTA account. At the direction of Voronchenko and his family member who lived in Russia, WISE used these funds to make various U.S. dollar payments to maintain and service the Properties.
Immediately after Vekselberg’s designation as an SDN, the source of the funds used to maintain and service the Properties changed. The IOLTA Account began to receive wires from a bank account in the Bahamas held in the name of a shell company controlled by Voronchenko, Smile Holding Ltd., and from a Russian bank account held in the name of a Russian national who was related to Voronchenko. Between approximately June 2018 and March 2022, approximately 25 wire transfers totaling approximately $3.8 million were sent to WISE’s IOLTA account. Although the source of the payments changed, the management of the payments remained the same as before: WISE used these funds to make various U.S. dollar payments to maintain and service the Properties, and he did so knowing that he was promoting sanctions violations. Additionally, after Vekselberg was sanctioned in 2018, Voronchenko, WISE, and others tried to sell both the Park Avenue apartment and the Southampton estate. No licenses from OFAC were applied for or issued for these payments or attempted transfers.
* * *
WISE, of Pelham, New York, pled guilty to one count of conspiring to commit international money laundering, which carries a maximum sentence of five years in prison. WISE also agreed to entry of a forfeiture order in the amount of $3,771,727.67, to be satisfied by a payment of $210,441.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
An Indictment charging co-conspirator Vladimir Voronchenko, a/k/a “Vladimir Vorontchenko,” who is a fugitive, was unsealed on February 7, 2023. A civil forfeiture complaint was filed against the Properties on February 24, 2023.
Mr. Williams praised the outstanding work of HSI and FBI. Mr. Williams further thanked the Department of Justice’s National Security Division and Office of International Affairs and OFAC for their assistance and cooperation in this investigation.
On March 2, 2022, the Attorney General announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The Task Force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Jessica Greenwood, Joshua A. Naftalis, and Sheb Swett are in charge of the prosecution.
New Orleans Man Pleads Guilty to Federal Weapons ViolationsRead the Press Release
NEW ORLEANS, LOUISIANA – On Wednesday, April 19, 2023, SHAWN BREAUX, age 29, resident of Orleans Parish, pled guilty to a two-count indictment for federal weapons violations, announced U.S. Attorney Duane A. Evans . BREAUX’s sentencing is set for August 16, 2023.
In Count 1 of the indictment, BREAUX is charged with illegally possessing firearms as a felon, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). If convicted, BREAUX faces a maximum sentence of 10 years of imprisonment, a fine of up to $250,000.00, and a period of up to 3 years of supervised release. Count 2 of the indictment charges BREAUX with being in possession of a machine gun in violation of Title 18, United States Code, Sections 922(o) and 924(a)(2). If convicted, BREAUX faces a maximum sentence of 10 years of imprisonment, a fine of up to $250,000.00, and a period of up to 3 years of supervised release. As to each count, BREAUX faces payment of a mandatory special assessment fee of $100.00.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit.
New Haven Man Sentenced to More Than 6 years in Federal Prison for Mail Theft, Identity Theft and Bank Fraud SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MARQUIS WILLIAMS, 46, of New Haven, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 78 months of imprisonment, followed by five years of supervised release, for operating a mail theft, identity theft, and bank fraud scheme.
According to court documents and statements made in court, from at least 2018 through November 2019, Williams and his then-girlfriend, Dara Morrison, stole mail from hundreds of residential mailboxes in Connecticut. The mail pieces contained checks, driver’s licenses, passports, social security cards, banking information, and other personally identifying information from businesses and individuals throughout Connecticut, including elderly nursing home residents. Williams and Morrison used stolen identities to produce fake identification, and then used the fake identification to cash or deposit stolen checks. Williams and Morrison also used the stolen checks to create additional, forged copies of checks that they then cashed or deposited into accounts they opened using stolen identities. Morrison also used and attempted to use stolen credit cards.
Williams was arrested on November 14, 2019. In association with his arrest, investigators searched his residence and vehicles and found numerous drivers’ licenses and identification cards with photographs of Williams or Morrison, but with different names and addresses; multiple passports, social security cards, drivers’ licenses, and other documents in the names of victims; approximately 50 debit and credit cards in the names of victims; notebooks containing handwritten identifying information of victims; approximately 130 checks, some showing signs of alteration, written from and to potential victims; items used to alter checks and make false identifications; and trash bags filled with stolen mail.
More than 70 bank fraud victims were identified during the investigation.
Judge Bryant ordered Williams to pay $116,152.26 in restitution to his victims.
On May 19, 2022, Williams pleaded guilty to conspiracy to commit bank fraud.
Morrison pleaded guilty to the same offense. On April 18, 2023, after Morrison had been detained for approximately 37 months, Judge Bryant sentenced her to time served.
Williams’ and Morrison’s criminal histories include prior federal convictions for similar crimes. In 2002, Williams was sentenced to 51 months of imprisonment for conspiracy, identity fraud and credit card fraud offenses.
This matter was investigated by the U.S. Postal Inspection Service, the U.S. Secret Service and the Hamden, Wallingford, Waterford, Guilford, and Old Saybrook Police Departments. The case was prosecuted by Assistant U.S. Attorneys Amanda Oakes and Hal Chen.
U.S. Attorney Avery thanked the State’s Attorneys for the Judicial Districts of New Haven, Fairfield, Middlesex, Ansonia/Milford, New London, Norwich, and Stamford/Norwalk for their cooperation in investigating and prosecuting this matter.
Individuals who believe they are a victim of mail theft may file a complaint by calling 888-USPS-OIG or by visiting https://www.uspsoig.gov/form/file-online-complaint.
New Haven Man Sentenced to Federal Prison for Firearm OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that TYRIQ MARTIN, 22, of New Haven, was sentenced today by U.S. District Judge Omar A. Williams in Hartford 15 months of imprisonment, followed by three years of supervised release, for unlawfully possessing ammunition.
According to court documents and statements made in court, a court-authorized search of Martin’s Snapchat account in the spring of 2022 revealed numerous photos and videos of Martin in possession of firearms. On June 15, 2022, New Haven Police arrested Martin in the area of Ferry Street and Chatham Street on an outstanding state warrant for firearm and narcotics offenses. At the time of his arrest, Martin possessed a loaded Polymer 80 privately made firearm. A subsequent search of the car Martin was seen driving revealed 11 rounds of 9mm ammunition.
In July 2021, Martin was convicted in state court of conspiracy to commit first-degree assault, stemming from the shooting of two victims, for which he was sentenced to five years of incarceration, execution suspended after 16 months, and three years of probation.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Martin has been detained since his arrest. On January 9, 2023, he pleaded guilty to possession of ammunition by a felon.
Martin is scheduled to be sentenced tomorrow in state court on related charges.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorneys Jocelyn Courtney Kaoutzanis and Rahul Kale through the Justice’s Department’s Project Safe Neighborhoods (PSN) program.
PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts, 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.
Methamphetamine Trafficker Sentenced to Six YearsRead the Press Release
TUCSON, Ariz. –Taylor Melton Addington, 33, of Phoenix, Arizona, was sentenced on April 13, 2023, by United States District Judge Jennifer G. Zipps to six years in prison, followed by five years of supervised release. Addington also was ordered to pay a $5,000.00 fine. Addington pleaded guilty to Conspiracy to Distribute Methamphetamine.
In September 2019, Addington sold approximately four pounds of methamphetamine to undercover government agents at his auto shop in Phoenix. In the weeks that followed, Addington negotiated with an undercover agent to provide an additional 100 pounds of methamphetamine, which the parties agreed would be delivered to a location in Washington State. While the transaction was being negotiated, Addington sent the attached photo to the undercover agent of a partial shipment of the drugs.
Addington was arrested on October 23, 2019, in Oak Harbor, Washington, when he delivered 50 pounds of methamphetamine, as the first part of the 100-pound transaction, to the undercover agent.
Homeland Security Investigations conducted the investigation in this case. Assistant United States Attorney Stefani K. Hepford, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR19-03120-TUC-JGZ (MSA)
RELEASE NUMBER: 2023-059_Addington# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Lead Man Sentenced for Receiving and Possessing Child PornographyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Lead, South Dakota, man convicted of Receipt of Child Pornography. The sentencing took place on April 14, 2023.
William Jacob Stone, 73, was sentenced to five years in federal prison, followed by 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Stone was indicted for Receipt of Child Pornography and Possession of Child Pornography by a federal grand jury in September of 2021. He pleaded guilty on December 16, 2022.
Between March 2020 and June 2021, Stone used the internet to download visual depictions of minors engaged in sexually explicit conduct. He then used Adobe PhotoShop software and his Apple iPad to superimpose naked images of himself sexually abusing the child pornography images he had downloaded, as well as clothed photos of local children known to Stone through his decades-long career as a school bus driver. This conduct was brought to the attention of law enforcement through a Cybertip sent by Adobe to the National Center for Missing and Exploited Children.
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.
This case was investigated by Homeland Security Investigations, South Dakota Division of Criminal Investigation Internet Crimes Against Children Task Force, Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Heather Knox Sazama prosecuted the case.
Stone was immediately remanded to the custody of the U.S. Marshals Service.
Las Vegas Man Sentenced to over 11 Years in Prison for Bank Robbery SpreeRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced yesterday by U.S. District Judge Jennifer A. Dorsey to 135 months in prison followed by three years of supervised release for committing a spree of bank robberies on the same day.
Jasmine Bernard Austion (35) pleaded guilty in January 2023 to three counts of bank robbery.
According to court documents, on October 26, 2021, Austion entered a bank in North Las Vegas and passed a note to the teller. The note read “$20,000 all money robbery got gun now.” Bank employees told Austion they were calling 911 and he fled the bank. He then ran across the street and entered a second bank. He pushed an elderly customer away from a teller window and demanded money from the teller. The teller refused and Austion fled from the bank. A short time later, Austion entered a third bank and passed a note to a teller. The note read “I will harm people all money all drawers.” After the teller refused to give Austion money, he banged a fire extinguisher against the barrier in an attempt to break into the teller area. Las Vegas Metropolitan Police Department SWAT responded and arrested Austion.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
The FBI, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department investigated the case. Assistant United States Attorney Bianca Pucci prosecuted the case.
###
Keene Woman Sentenced to 18 Months for Operating an Unlicensed Money Transmitting Business That Facilitated ScamsRead the Press Release
CONCORD – A Keene woman was sentenced in federal court for operating an unlicensed money transmitting business, U.S. Attorney Jane E. Young announces.
Aria DiMezzo, 35, was sentenced by U.S. District Court Judge Joseph LaPlante to 18 months in prison and one year of supervised release. DiMezzo was also ordered to pay a fine of $5,000, and to forfeit 1.93 bitcoin and more than $14,000 in U.S. currency.
“The defendant’s unlicensed bitcoin business allowed scammers of all kinds to obtain their victims’ money anonymously,” said U.S. Attorney Young. “The sentence today sends an important message that those who sell bitcoin, like other money exchangers, must register and comply with the rules meant to ensure that these businesses are not used to facilitate frauds.”
Between June 2020 and January 2021, DiMezzo charged a fee to exchange fiat currency (mostly U.S. dollars) for virtual currency. DiMezzo recruited customers on websites, including localbitcoins.com. Her customers sent money to her through bank accounts in her name, and in the name of an organization she created, the Reformed Satanic Church. DiMezzo then sent customers bitcoin or other virtual currency in return. DiMezzo also worked with Ian Freeman, selling virtual currency to customers that Freeman recruited, and she paid Freeman a percentage of the profits from the sales. A federal jury found Freeman guilty of money laundering, conspiracy to launder money, operation of an unlicensed money transmitting business, and tax evasion, on December 22, 2023. He is scheduled to be sentenced on July 17, 2023.
DiMezzo sold more than $3 million worth of virtual currency through her business. DiMezzo did not register her business as a money transmitting business and she did not comply with any of the various regulations imposed on money transmitting businesses. For example, DiMezzo never filed currency transaction reports for transactions over $10,000 or suspicious activity reports for transactions over $2,000 that may have involved funds derived from illegal activity, among other things.
This matter was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the United States Postal Inspection Service in coordination with the U.S. Treasury Department Financial Crimes Enforcement Network. The National Cryptocurrency Enforcement Team provided substantial assistance in the case. The case is being prosecuted by Assistant United States Attorneys Georgiana L. MacDonald, John J. Kennedy, and Seth R. Aframe.
###
Justice Department’s Civil Rights Division Joins Officials from CFPB, EEOC and FTC Pledging to Confront Bias and Discrimination in Artificial IntelligenceRead the Press Release
The Justice Department’s Civil Rights Division and officials from the Consumer Financial Protection Bureau (CFPB), the Equal Employment Opportunity Commission (EEOC) and the Federal Trade Commission (FTC) jointly pledged today to uphold America’s commitment to the core principles of fairness, equality and justice as emerging automated systems, including those sometimes marketed as “artificial intelligence” or “AI,” become increasingly common in our daily lives – impacting civil rights, fair competition, consumer protection and equal opportunity.
“As social media platforms, banks, landlords, employers and other businesses that choose to rely on artificial intelligence, algorithms and other data tools to automate decision-making and to conduct business, we stand ready to hold accountable those entities that fail to address the discriminatory outcomes that too often result,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This is an all hands on deck moment and the Justice Department will continue to work with our government partners to investigate, challenge and combat discrimination based on automated systems.”
“Technology marketed as AI has spread to every corner of the economy, and regulators need to stay ahead of its growth to prevent discriminatory outcomes that threaten families’ financial stability,” said CFPB Director Rohit Chopra. “Today’s joint statement makes it clear that the CFPB will work with its partner enforcement agencies to root out discrimination caused by any tool or system that enables unlawful decision making.”
“We have come together to make clear that the use of advanced technologies, including artificial intelligence, must be consistent with federal laws,” said EEOC Chair Charlotte A. Burrows. “America’s workplace civil rights laws reflect our most cherished values of justice, fairness and opportunity, and the EEOC has a solemn responsibility to vigorously enforce them in this new context. We will continue to raise awareness on this topic; to help educate employers, vendors and workers; and where necessary, to use our enforcement authorities to ensure AI does not become a high-tech pathway to discrimination.”
“We already see how AI tools can turbocharge fraud and automate discrimination, and we won’t hesitate to use the full scope of our legal authorities to protect Americans from these threats,” said FTC Chair Lina M. Khan. “Technological advances can deliver critical innovation – but claims of innovation must not be cover for lawbreaking. There is no AI exemption to the laws on the books, and the FTC will vigorously enforce the law to combat unfair or deceptive practices or unfair methods of competition.”
In the statement, the agencies reaffirmed that their existing legal authorities apply equally to the use of new technologies as they do to any other conduct. The joint statement summarizes recent accomplishments, including policy guidance and enforcement actions, the agencies have taken to combat illegal behavior committed through the use of automated systems. The joint statement also explains common problems related to automated systems, including when those systems rely on data and datasets which incorporate historical bias, that many automated systems are “black boxes” whose internal workings are not clear to most people and that the design of automated systems may not fully contemplate their ultimate use.
Additional information about the Civil Rights Division’s work to uphold and protect civil and constitutional rights is available online at justice.gov/crt. Complaints about discriminatory practices may be reported to the Civil Rights Division through its internet reporting portal at civilrights.justice.gov.
Jeffrey Dean Biddle Sentenced to Life in PrisonRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Francisco B. Burrola, Special Agent in Charge of Homeland Security Investigations El Paso, announced that Jeffery Dean Biddle was sentenced to life in prison. Biddle, 42, of Deming, pleaded guilty on Oct. 26 to production and attempted production of child pornography, receipt and attempted receipt of child pornography, and enticement and attempted enticement of a minor.
According to the plea agreement and other court records, in 2021, Biddle, a registered sex offender, started a conversation with a minor victim he met through Facebook. The conversation eventually moved to text messages and Biddle coerced the victim to take pornographic photos to send to him. Biddle specifically requested “naked” pictures and asked for nude photographs approximately 24 times. During these text exchanges, Biddle also sent the victim nude photographs of himself.
Biddle had entered into a global plea agreement where he also agreed to plead guilty in state court to multiple counts of Criminal Sexual Penetration in the First Degree (Child under 13), and Criminal Sexual Penetration in the Second Degree (Child under 13). That conduct involved Biddle’s sexual abuse of an 18-month-old child. On December 5, 2022, Biddle pled guilty in state court and was sentenced to 35 years in prison. When Biddle was originally arrested on those charges, he admitted to molesting at least eleven children, most of whom were under the age of five.
“This sentence was eminently fitting, given the abhorrent acts committed against innocent and vulnerable children,” said Francisco B. Burrola, Special Agent in Charge for HSI El Paso. “This case demonstrates once again how producing child pornography and abuse can go hand-in-hand. For that reason, child exploitation investigations are a top priority for Homeland Security Investigations, and we will continue to collaborate with our law enforcement partners to hold devious sexual predators accountable for their actions.”
“One child is too many. Eleven is unspeakable. Today, the Court imposed the only sentence which will ensure this serial child molester will never add another name to his terrible list,” said U.S. Attorney Alexander Uballez. “This case highlights what is possible when local, state, and federal agencies team up to relentlessly pursue sexual predators who seek to harm our most vulnerable population.”
Homeland Security Investigations (HSI) investigated this case with assistance from the FBI, the Drug Enforcement Administration’s Las Cruces District Office, New Mexico State Police, the Deming Police Department, Luna County Sheriff’s Office, and the District Attorney’s Office for the Sixth Judicial District as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program is a nationwide network of task forces including over 90 federal, state, local and tribal law enforcement agencies in New Mexico dedicated to investigating, prosecuting and developing effective responses to Internet crimes against children.
Assistant United States Attorneys Marisa A. Ong and Matilda McCarthy Villalobos are prosecuting the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
# # #
23-87
Houstonian ordered to prison following HPD officer shootingRead the Press Release
HOUSTON ‐ A 24-year-old Pasadena man has been sent to federal prison following his conviction of firearm and drug trafficking offenses related to his role in the shooting of a Houston Police Department (HPD) officer, announced U.S. Alamdar S. Hamdani.
Jimmy Caston Bryan pleaded guilty Oct. 13, 2022, to possessing with intent to distribute meth and to carrying and discharging a firearm during and in relation to a drug trafficking crime.
Today, Chief U.S. District Judge Lee H. Rosenthal handed Bryan a 100-month term of imprisonment for drug trafficking meth. He also received 120 months for the firearms charge which must be served consecutively to the other sentence imposed. The total 220-month prison term will be immediately followed by five years of supervised release. In handing down the sentence, the court noted Bryan’s lengthy criminal history and the violent nature of the offense.
“Almost a year ago, Bryan, a known drug trafficker, shot an HPD officer during a traffic stop,” said Hamdani. “That cruel act carries severe consequences, especially in the federal system, and today’s 220-month prison sentence reflects those consequences.”
At the time of his plea, Bryan admitted that on May 4, 2022, he fired multiple shots at an HPD officer near 14300 Gulf Freeway.
Bryan previously trafficked narcotics in the Houston area, had possessed meth and was believed to be in the possession of multiple firearms. On May 4, 2022, authorities conducted a traffic stop, at which time two HPD officers approached Bryan’s truck and requested identifying information.
Bryan did not comply which led law enforcement to ask him to step out of the vehicle. As one officer opened Bryan’s door, Bryan quickly reached into his waistband and pulled out a semi-automatic handgun.
At the time of his plea, Bryan also admitted he shot and struck the other HPD officer twice - once in the chest and once in the right hip.
Both officers returned gunfire and struck Bryan.
A search of Bryan’s vehicle revealed over 48 grams of meth, heroin, cocaine, ecstasy, a digital scale and two additional handguns.
Bryan has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, HPD, Texas Department of Public Safety and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Michael Day prosecuted the case.
Hammond Man Charged in Federal Arson CaseRead the Press Release
NEW ORLEANS, LOUISIANA – TERRENCE COE, age 29, a resident of Hammond, Louisiana, was charged by a federal grand jury in a one-count indictment with arson, in violation of Title 18, United States Code, Section 844(i), announced U.S. Attorney Duane A. Evans.
According to the indictment, on or about December 24, 2022, COE, maliciously damaged and destroyed by means of fire, the building, known as Walmart, located at 2799 W. Thomas Street in Hammond, Louisiana. If convicted, COE faces a maximum sentence of 20 years imprisonment, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory $100 special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Louisiana Office of State Fire Marshal, and the Hammond Fire Department. Assistant United States Attorney Troy L. Bell of the General Crimes Unit is in charge of the prosecution.
Greensburg Felon Sentenced to Prison for Illegally Possessing Multiple FirearmsRead the Press Release
PITTSBURGH, PA – A Westmoreland County resident has been sentenced in federal court to 24 months in prison and three years' supervised release on his conviction of being a felon in possession of multiple firearms, Acting United States Attorney Troy Rivetti announced today.
United States District Judge W. Scott Hardy imposed the sentence on Dale Kuhn, age 75, of Greensburg, PA 15601. Kuhn was also ordered to forfeit multiple firearms and ammunition to the United States.
According to information presented to the court, on or about Feb. 19, 2021, Kuhn, previously convicted of a felony, did knowingly possess 32 firearms. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
Assistant United States Attorneys Nicole Vasquez-Schmitt prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and Pennsylvania State Police for the investigation leading to the successful prosecution of Kuhn.
Georgia Man Indicted for Scheme to Defraud Elderly Suffolk County Victim of More Than $5 MillionRead the Press Release
Earlier today, a two-count indictment was unsealed in federal court in Central Islip charging Odera Odabi, a resident of Georgia, with conspiring to commit mail fraud, wire fraud and money laundering. Odabi was arrested today in Georgia and made his initial appearance in federal court in Atlanta where he was ordered detained pending trial. Odabi will be arraigned in federal court in Central Islip at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrest and charges.
“Odabi and his co-conspirators callously abused the trust of an elderly victim to line their pockets with millions in stolen cash,” stated United States Attorney Peace. “This Office and our partners will work tirelessly to ensure that those who prey upon some of the most vulnerable members of our community are called to account for their crimes.”
“As alleged, the defendant and his co-conspirators took advantage of an elderly individual, deceiving the victim into sending more than five million dollars, which the schemers used for their own personal benefit. Financial frauds targeting elderly members of our communities are sadly rising at an alarming rate. The FBI is resolute in ensuring those who financially exploit the elderly face the consequences in the criminal justice system,” stated Assistant Director-in-Charge Driscoll.
As alleged in the Indictment and in court filings and proceedings, between approximately April 2020 and December 2021, Odabi and his co-conspirators falsely informed an elderly Suffolk County resident (John Doe) that he needed to send around $5.3 million to various bank accounts in order to obtain a purported “Certificate of Origination” from the International Monetary Fund (IMF) and claim a purported inheritance in Singapore. In fact, the IMF does not issue such Certificates and has posted a warning on its website alerting the public to fraudulent schemes involving purported IMF certificates.
As a result of the false communications, John Doe sent Odabi and his co-conspirators approximately $5.3 million, including approximately $2 million to accounts held in the name of Oh-Dabi Properties, LLC and American Commodity Exchange, Inc., two Georgia-based companies that Odabi operated. Ultimately, Odabi and his co-conspirators stole nearly all of John Doe’s funds to benefit themselves, including through purchases at an Apple Store and Louis Vuitton, except for $197,000 that was frozen by bank officials on suspicion of fraud.
If convicted of the charges in the Indictment, Odabi faces up to a maximum term of 40 years’ imprisonment.
If you or someone you know is a victim of elder fraud, please call the Department of Justice’s National Elder Fraud Hotline at 833–FRAUD–11 (833–372–8311). The U.S. Attorney’s Office for the Eastern District of New York conducts presentations by Assistant U.S. Attorneys about ways to protect yourself and your community against scams, especially those targeting seniors. To request a presentation please email [email protected].
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorney Bradley T. King and Madeline O’Connor are in charge of the prosecution.
The Defendant:
ODERA ODABI (also known as “Chief Odera Odabi”)
Age: 54
Lawrenceville, GeorgiaE.D.N.Y. Docket No. 23-CR-169 (JS)
Fremont Business Owner Pleads Guilty to Crimes in Scheme to Avoid Millions of Dollars in Income TaxesRead the Press Release
SAN JOSE –Roger Chi Quan, pleaded guilty to crimes related to a scheme to underreport his 2017 business income by over $4 million, announced United States Attorney Ismail J. Ramsey and Kareem Carter, Acting Special Agent in Charge of the IRS - Criminal Investigation Washington D.C. Field Office. The guilty plea was accepted by the Honorable Edward J. Davila, United States District Court.
Quan, 55, of Milpitas, Calif., owned and operated QXQ, Inc. (“QXQ”), a manufacturer of circuit board test fixtures based in Fremont, Calif. QXQ shipped its products to customers in the United States and Asia. According to his plea agreement, Quan admitted that since before 2014, QXQ maintained two sets of QuickBooks bookkeeping files. One set of books recorded sales to customers in the United States and all QXQ’s expenses. The second set of books recorded sales to customers in Asia. Quan directed QXQ’s customers in Asia to wire transfer their payments to QXQ’s bank accounts in New Zealand. Quan admitted that he retained an income tax preparer but provided the preparer only with the QuickBooks bookkeeping file that recorded QXQ’s sales to customers in the United States and all of its expenses. Further, Quan acknowledged he knowingly did not provide his income tax return preparer with, or disclose to the tax preparer the existence of, the bookkeeping file that recorded QXQ’s sales to customers in Asia or the statements from his and QXQ’s foreign bank accounts. Quan agreed his actions caused his 2017 federal income taxes to be underreported by $1,783,339.
The plea agreement contains further details of the scheme. For example, Quan admitted that he had signature authority over at least eleven foreign bank accounts in 2017. One of these accounts held a balance of at least $12,137,288.50 on April 15, 2018. Quan admitted that he knowingly did not report the existence of these accounts as required. For example, Quan was required to report the existence of the accounts on FinCEN Form 114, Report of Foreign Bank and Financial Accounts. Quan also did not report the interest earned in foreign bank accounts to his tax return preparer.
On March 27, 2023, Quan was charged by felony information with one count each of willfully aiding and assisting in the preparation of a false tax return, in violation of 26 U.S.C. § 7206(2), and willfully violating foreign bank account reporting requirements, in violation of 31 U.S.C. §§ 5314 and 5322(a). Quan pleaded guilty to both counts.
Judge Davila scheduled Quan’s sentencing for September 25, 2023. The maximum penalty for willfully violating foreign bank account reporting requirements, in violation of Title 31 U.S.C. §§ 5314 and 5322(a), is five years in prison and a fine of $250,000. The maximum penalty for filing a false tax return, in violation of Title 26 U.S.C. § 7206(2), is three years in prison and a fine of $250,000. Quan agreed to pay $8,167,733 of restitution to the Internal Revenue Service for the tax years 2014 through 2018.
Assistant U.S. Attorney Colin Sampson is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service – Criminal Investigation International Tax and Financial Crimes (ITFC), a group dedicated to investigating international tax crimes.
Former Union President Ordered to Serve Probation and Pay Restitution for Embezzling Union FundsRead the Press Release
WASHINGTON – Crystal R. Mathis, the former president of the American Federation of Government Employees Local 1812, was sentenced to 12 months, suspended, and three years of probation for embezzling funds from the union. The sentence was announced today by U.S. Attorney Matthew M. Graves and Mark Wheeler, Director of the Washington District Office of the U.S. Department of Labor, Office of Labor-Management Standards.
Mathis, 51, of Cheverly, Maryland, pleaded guilty in February 2023, in the Superior Court of the District of Columbia, to one count of first-degree theft. She was sentenced by the Honorable Errol R. Arthur, who also ordered her to pay more than $10,000 in restitution to the union and ordered three years of supervised release.
According to the government’s evidence, Mathis used her position as president of a local union of federal employees of the U.S Agency for Global Media to improperly access the union’s bank account between December 17, 2019, and June 21, 2021. During that period, Mathis made more than 35 separate unauthorized purchases, withdrawals or bill payments to fund personal vacations, dinners, and expenses.
In announcing the sentence, U.S. Attorney Graves and District Director Wheeler commended the work of those who investigated the case from the Labor Department’s Office of Labor-Management Standards. They also commended the work of Assistant U.S. Attorneys Benjamin D. Bleiberg and Brian P. Kelly, who investigated and prosecuted the case.
Former Teacher Sentenced to 10 Years in Prison for Possessing Child Sexual Abuse MaterialRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Norman Merrill II, 46, of Chester, Vermont, was sentenced yesterday to serve 10 years in prison after pleading guilty to possessing child sexual abuse material, previously referred to as child pornography. United States District Judge Christina Reiss also ordered that after Merrill’s release from prison, Merrill must serve a ten-year term of supervised release. Merrill was also ordered to pay $3,750 in restitution, a $5,000 fine, and a $3,000 special assessment to be paid to the Child Pornography Victims Reserve Fund.
According to court records, on May 7, 2022, Chester Police Officers received reports concerning potential voyeurism occurring at Merrill’s home. During the investigation, witnesses alleged they had found a hidden recording device in a bathroom at Merrill’s home, and that Merrill was surreptitiously recording young girls who were walking in front of him while at Green Mountain High School, where he was employed as a teacher. After interviewing witnesses, Chester Police Officers obtained search warrants for Merrill’s home and electronics, which were executed on May 11, 2022. Chester Police Officers seized numerous electronic devices, including cellular phones, digital storage media, “pinhole cameras,” and a “spy camera.”
The Vermont State Police conducted a preliminary forensic examination of a memory card seized from the residence which revealed numerous voyeuristic videos taken in residential bathrooms. Some of these videos were taken in a bathroom of Merrill’s residence and were determined to depict nude minor children. Special Agents with Homeland Security Investigations (HSI) agreed to assist local and state authorities with examining the contents of Merrill’s devices to determine whether any of the images and videos qualified as child pornography under federal law.The HSI investigation revealed that Merrill had placed hidden cameras in a deliberate effort to obtain video footage of a particular female minor. Merrill placed hidden cameras in the bathrooms of two residences, including one hidden camera placed underneath a bathroom sink, to capture the minor female’s genitalia while she occupied the bathroom. Merrill possessed screen-captures created from the videos of the minor female, which were intentionally created to focus solely on her genitalia. With the hidden cameras, Merrill also captured voyeuristic videos of additional children and some adults who used the bathroom in his residence. Some of these videos captured nudity, such as exposed breasts and/or visible genitalia.
The review of Merrill’s electronic devices revealed additional misconduct involving children, including a single file depicting the sexual abuse of a child, a file which Merrill did not create. Merrill also had a number of photographs of female children, the faces of which appear to have been clipped and digitally overlaid onto images of adult pornography. Merrill was also in possession of videos that appear to have been covertly taken at a school, suspected to be the school where Merrill was employed, depicting females in revealing clothing.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Chester Police Department, Vermont State Police, and the Department of Homeland Security’s Homeland Security Investigations.
Assistant United States Attorney Jonathan Ophardt handled the prosecution. Devin McLaughlin, Esq. represented Merrill.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and Child Exploitation Obscenity Section, Criminal Division (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former School Board President of Madison District Public Schools Pleads Guilty to Bribery and Tax EvasionRead the Press Release
DETROIT – The former School Board President of the Madison District Public Schools pleaded guilty today to taking bribes from a local school contractor in a pay-to-play scheme and to tax evasion, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Federal Bureau of Investigation, Michigan Division; Charles Miller, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division; and John Woolley, Special Agent in Charge of the Department of Education, Office of Inspector General.
Albert Morrison, age 62, pleaded guilty before United States District Judge Laurie Michelson to conspiracy to commit federal program bribery from 2014 through 2018 and tax evasion. Morrison was the elected President of the Madison District Public Schools Board of Education from 2012 through 2018. While Morrison was President, co-defendant John David was one of the owners of a building maintenance and reconstruction company, Emergency Restoration (a/k/a Emergency Reconstruction), that was awarded over $3.1 million in maintenance and construction projects in the Madison District Public Schools.
David, who was a long-time friend of Morrison, wrote over $550,000 in checks from his company to Morrison’s company, Comfort Consulting, from 2014 through 2018. Morrison deposited the checks from David into his own bank account. The investigation uncovered $561,667 in payments from David to Morrison. David admitted he had to “pay to play” in the school district, and David’s companies received approximately $3,167,275 from the Madison District during the bribery conspiracy. Morrison spent the money from David on personal luxuries such as vacations in Florida and a boat slip. David pleaded guilty to bribery conspiracy and bribery on April 13, 2023.
To keep the payments secret from the school board and the community in the Madison Schools, Morrison, when publicly confronted at a Madison District school board meeting, denied having any financial ties to David or Emergency Restoration. Morrison and David also failed to disclose to State of Michigan auditors the payments Morrison received from David.
Morrison did not declare to the IRS David’s payments to Comfort Consulting as income in 2014, 2015, 2016, 2017, or 2018. In a further effort to conceal the payments from David, Morrison did not file a federal income tax return in 2015, 2016, 2017, and 2018. By not declaring to the IRS the payments from David as income, Morrison avoided paying approximately $118,200 in taxes.
“This pay- to -play scheme damaged the Madison District Public Schools and undermined the community’s trust in the education system, ,” said U.S. Attorney Ison. “This prosecution demonstrates we will not allow the greed of corrupt school officials to harm the interests of our children.”
"Today, Mr. Morrison admitted to accepting bribes while he was president of the Madison District Public School Board. His actions intentionally betrayed the public's trust that he would act in the best interest of the school district and children. Further, his actions destroyed the public's trust that contracts would be awarded through a fair and transparent process." said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “We thank the IRS and Department of Education Office of Inspector General for working alongside the FBI to investigate these allegations and expose Mr. Morrison’s corruption.”
“The citizens of our community deserve trustworthy public officials, instead of an elected individual who abuses their power to enhance their own lifestyle," said Charles Miller, IRS Criminal Investigation Acting Special Agent in Charge, Detroit Field Office. "IRS-CI will continue to work with our law enforcement partners to make sure everyone pays their fair share of taxes, especially those individuals in positions of trust like Morrison."
The investigation of this case was conducted by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigation Division, and the Department of Education. It is prosecuted by Assistant U.S. Attorneys Sarah Resnick Cohen, Karen Reynolds, and Gjon Juncaj.
Former New York City Correction Officer Sentenced to Prison for Accepting Bribes in Exchange for Smuggling Contraband into Rikers IslandRead the Press Release
Earlier today in federal court in Brooklyn, former New York City correction officer Katrina Patterson was sentenced by United States District Judge Carol B. Amon to a year and a day in prison for accepting more than $34,000 in bribe payments in exchange for smuggling contraband into Rikers Island. Patterson was employed by the New York City Department of Correction (DOC) and worked as a correction officer at Rikers Island.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
Mr. Peace expressed his appreciation to Department of Homeland Security, Homeland Security Investigations, New York Field Office (HSI), New York City Department of Investigation (DOI), and the New York City Police Department (NYPD) for their assistance on the case.
According to court documents and facts presented at today’s sentencing proceeding, Patterson accepted at least $34,090 in bribes from co-conspirators in exchange for Patterson’s smuggling contraband into the Robert N. Davoren Center on Rikers Island for inmate (and co-defendant) Michael Ross. Ross, who was incarcerated on unrelated offenses, arranged for the bribes to be sent to Patterson. DOC subsequently located narcotics and cell phones in Ross’ cell. Law enforcement also recovered Patterson’s text messages, including messages where a co-conspirator told Patterson that some of the contraband would be “4 black joints in 1 paper,” and Patterson responded, “it better be wrapped so many times I don’t want to smell it.” Patterson also discussed with her co-conspirator the need to delete their text messages.
Ross previously pleaded guilty in July 2022 to bribing Patterson and was sentenced today by Judge Amon to 18 months’ imprisonment to run consecutive to the 16 years to life sentence he is serving in state custody for an unrelated conviction.
The government’s case is being handled by Assistant United States Attorney Philip Pilmar in the Office’s Public Integrity Section.
The Defendants:
KATRINA PATTERSON
Age: 32
Jamaica, New YorkE.D.N.Y. Docket No. 22-CR-196 (CBA)
Former Missouri State Highway Patrol Inspector Admits Accepting Cash BribesRead the Press Release
ST. LOUIS – A former supervisory motor vehicle inspector with the Missouri State Highway Patrol on Tuesday admitted taking thousands of dollars in cash bribes to falsely certify that vehicles had been inspected and were roadworthy.
Larry S. Conrad, 67, pleaded guilty to one felony charge of using a facility in interstate commerce, a cellular telephone, to facilitate his bribery scheme. He admitted accepting a total of about $14,020 in individual bribes to falsify forms and approve inspections of vehicles that had been damaged and had salvage titles or were listed as “abandoned,” even if he never saw the vehicle.
Conrad’s primary duty was to perform motor vehicle inspections at the Missouri State Highway Patrol’s Troop C facility in south St. Louis County. There is no fee for the inspections. If the vehicle passes, an inspector signs and certifies forms required for motor vehicle owners to apply for original Missouri Certificates of Title.
Conrad admitted accepting individual cash bribes ranging from $40 to $160 to pass vehicles. He often falsified certificates to indicate there was no apparent damage when there was visible damage to the vehicle being inspected.
On multiple occasions, Conrad took money for the inspection of vehicles that he never saw, including at least one that was not drivable, the plea agreement says.
Conrad communicated with the vehicle owners via text messages and cell phone conversations and had them place the cash bribes in the driver’s side door pocket. Conrad would then take the money at the time he was to be performing the inspection.
In court, Assistant U.S. Attorney Hal Goldsmith said Conrad’s bribery scheme thwarted procedures that are designed to make sure that vehicles are roadworthy and safe for both the occupants of that vehicle and others on the road.
Conrad is scheduled to be sentenced July 27. The charge carries a potential penalty of up to five years in prison, a $250,000 fine or both.
The case was investigated by the FBI, with the cooperation of the Missouri State Highway Patrol. Assistant U.S. Attorney Hal Goldsmith is prosecuting the case.
Former Methodist Hospital Employees Plead Guilty to HIPAA ViolationsRead the Press Release
Memphis, TN – Five former Methodist Hospital Employees and Roderick Harvey, 41, of Memphis, have pled guilty to unlawfully disclosing patient information in violation of the Health Insurance Portability and Accountability Act of 1996, commonly known as “HIPAA.” United States Attorney Kevin G. Ritz announced the guilty pleas today.
According to United States Attorney Ritz and the information presented in court, between November 2017 and December 2020, Harvey paid Kirby Dandridge, 38, Sylvia Taylor, 43, Kara Thompson, 31, Melanie Russell, 41, and Adrianna Taber, 26, to provide him with names and phone numbers of Methodist patients who had been involved in motor vehicle accidents. After obtaining the information, Harvey sold the information to third persons including personal injury attorneys and chiropractors.
HIPAA was enacted by Congress in 1996 to create national standards to protect sensitive patient information from being disclosed without a patient’s knowledge or consent. HIPAA’s provisions make it a crime to disclose patient information, or to obtain patient information with the intent to sell, transfer or use such information for personal gain.
On April 21, 2023, Harvey appeared before United States District Judge Thomas L. Parker and entered a guilty plea to conspiring with Dandridge, Taylor, Taber, Thompson, and Russell to violate HIPAA. Harvey faces a maximum penalty of five years’ imprisonment, a fine of $250,000 and three years of supervised release. Sentencing for Harvey is set for August 1, 2023.
Dandridge, Taylor, Taber, Thompson, and Russell previously entered guilty pleas to disclosing the information to Harvey in violation of HIPAA. Each of those violations carries a maximum penalty of one year imprisonment, a $50,000 fine, and one-year of supervised release.
Sentencing hearings for Dandridge, Taylor, Taber, Thompson, and Russell are scheduled before United States District Judge Thomas L. Parker as follows:
• Dandridge – April 25, 2023
• Taylor – May 17, 2023
• Taber – May 25, 2023
• Thompson – May 2, 2023
• Russell – June 21, 2023
This case was investigated by the Federal Bureau of Investigation and the Tennessee Bureau of Investigation.
Assistant United States Attorney Carroll L. André III is prosecuting the case on behalf of the government.
###
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.
Former Jacksonville Sheriff’s Office Corrections Officer Indicted for COVID Relief Fraud Involving Fraudulently Obtained Paycheck Protection Program LoanRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Deconna Burke (34, Jacksonville) with one count of wire fraud involving COVID Relief Fraud through the Paycheck Protection Program (PPP). If convicted, Burke faces up to 20 years in federal prison and payment of restitution to the United States government.
According to the indictment, in April 2021, Burke submitted a PPP loan application to a lender authorized by the Small Business Administration to lend funds for approved PPP loan applications. The PPP loan application falsely claimed that Burke operated his own babysitting business with a gross income of $98,000. Throughout the loan application Burke made multiple false statements regarding his purported payroll and operating expenses. In support of his PPP loan application, Burke submitted a false IRS Form 1040 “Profit or Loss From Business.” It contained false statements about operating expenses, gross income, and wage expenditures for his purported business. In reliance on the false statements in his PPP loan application and supporting documentation, Burke received a PPP loan for $20,415. After receiving the PPP loan proceeds into his bank account, Burke began making withdrawals and spending it on personal expenses to include paying off a loan for a motorcycle. In November 2021, Burke filed a PPP Loan Forgiveness Application, falsely stating that he had spent the $20,415 on payroll. In reliance on his false statements the Small Business Administration forgave the entire loan amount. Burke’s case is set for trial in July 2023.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Jacksonville Sheriff’s Office and the United States Secret Service – Jacksonville Field Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein. The asset forfeiture is being handled by Assistant United States Attorney Mai Tran.
Former Interiorscapes Bookkeeper Pleads Guilty to Embezzlement SchemeRead the Press Release
BIRMINGHAM, Ala. – The former bookkeeper for Interiorscapes, a small Birmingham-based business that offers plant services to a range of companies, has pleaded guilty to running a multi-year embezzlement scheme, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.
Tammi Spangenberg Turner, 60, of Morris, pleaded guilty yesterday before U.S. District Court Judge Karon O. Bowdre to wire fraud.
According to the plea agreement, Turner served as the bookkeeper at Interiorscapes from about 2015 until late 2021. Her duties included overseeing accounts payable and receivable, payroll, and entries in the company’s QuickBooks accounting software. During her tenure, Turner used a company credit card to pay tens of thousands of dollars of personal expenses. Turner hid her conduct by creating false entries in QuickBooks, writing personal checks to the company purportedly as reimbursement for the charges, keeping copies of those checks in the company records, but never depositing the checks in the company’s operating accounts. These unauthorized and unreimbursed charges totaled more than $94,000.
The maximum penalty for wire fraud is twenty years in prison, a fine of up to $250,000, and supervised release of up to three years.
The FBI investigated the case. Assistant U.S. Attorney J.B. Ward is prosecuting the case.
Former Air Force Civilian Employee Sentenced to More than 15 Years in Prison for FraudRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced in a federal court in San Antonio Monday to 188 months in prison for wire fraud and tax fraud.
According to court documents, Keith Alan Seguin, 57, was a civilian government employee authorized by the Air Force to solicit and accept orders for flight simulator technology and support, and to promote and manage related contracts. As part of a scheme that spanned more than 10 years, Seguin conspired with others who paid him more than $2.3 million in cash and bribes for $100 million in work on Air Force projects.
Senior United States District Judge David Ezra sentenced Seguin to 36 months confinement with one year of supervised release for the charge of making a false income tax return, and 188 months confinement followed by three years of supervised release for the charge of conspiracy to commit wire fraud. Those sentences will run concurrently. The judge also ordered Seguin to pay $736,618 in restitution to the IRS and, $38,733,720.65 in restitution to the Air Force, Army and General Services Administration and to forfeit $2,342,095 that he received in bribe money.
“Government employees who collude with dishonest contractors to defraud the integrity of a government contracting system for personal gain will not be tolerated,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “It removes legitimate businesses from competition and harms the American taxpayer. It harms our nation’s warfighters by inflating the cost to the Government, thereby reducing the materials and training available to our service members. This office will continue to work with our law enforcement partners to bring those offenders to justice.”
“The GSA OIG is committed to holding accountable those who abuse their government positions of trust for personal gain,” said the Honorable Carol Fortine Ochoa, Inspector General for the U.S. General Services Administration. "The outcome in this complex procurement fraud case is due to the dedicated efforts of GSA OIG special agents and our law enforcement partners."
"These results are a testament to the commitment of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), together with our investigative partners to protect the integrity of the DoD contracting process,” said The Honorable Robert P. Storch, Inspector General, Department of Defense Office of Inspector General. "DCIS stands vigilant to combat corruption within the DoD and will tirelessly pursue those who seek to fraudulently enrich themselves at the American taxpayer's expense."
"Today'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 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, San Antonio, Texas.
“Keith Seguin’s decade of millions of dollars of bribes and fraudulent contracts is insidious, infecting the trust placed in our government to serve the needs of its citizens. Now, he can dwell on his crimes while sitting in prison,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation’s IRS-CI Houston Field Office. “IRS-CI and our law enforcement partners are here to help restore the trust that was lost and protect the interests of this nation and its people.”
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.
###
Foreign Military Intelligence Official Sentenced for Role in International Drug Trafficking ConspiracyRead the Press Release
A former Colombian military intelligence official was sentenced today to 12 years in prison for his participation in a conspiracy to distribute cocaine for importation into the United States.
According to court documents, from August 2017 through April 2018, Fabian Humberto Tovar Caicedo, 41, a sergeant in the Colombian Army Intelligence, assisted a drug trafficking organization (DTO) and conspired to send multi-thousand-kilogram shipments of cocaine from Colombia to Mexico for eventual importation into the United States. Tovar Caicedo offered various corrupt services to the DTO, including providing police in the Port of Santa Marta willing to facilitate the export of cocaine in exchange for payment, suggesting the use of the same phones that the DEA uses for security, offering his military training to encrypt those phones for additional security, and attempting to sell a list of DEA cooperators to the DTO.
Tovar Caicedo organized multiple meetings in furtherance of the cocaine distribution scheme. He and his co-conspirators plotted to send multiple shipments, starting at 1,000 kilograms of cocaine and moving up to as many as 10,000 kilograms of cocaine per shipment. According to the statement of facts, a member of the DTO traveled to Mexico to negotiate the receipt of the cocaine with a high-ranking Mexican military official.
One of Tovar Caicedo’s co-conspirators, Fabian Andres Leyton Vargas, used his position as a Colombian Air Force officer in the Colombian Ministry of Defense to identify and contact security and law enforcement officials in the Port of Santa Marta for bribes. Once these officials received their corrupt payments, they would ensure that cocaine-laden cargo containers passed uninspected through the port. Using this method, Leyton Vargas, along with co-conspirators Antonio Aldemar Avila Acevedo and Jose Mauricio Castaneda Garzon, attempted to ship 1,773 kilograms of cocaine from Colombia to Guatemala en route to the United States in July 2017, as well as 2,081 kilograms of cocaine from Colombia to Mexico en route to the United States in March 2018. Colombian law enforcement seized both shipments before they could depart the port.
A related defendant, Jose Maria Fragoso D’Acunti, used his former position in the Colombian National Police, along with personal connections, to identify and bribe security and law enforcement officials in the port of Cartagena in Columbia to aid his organization’s cocaine trafficking. Fragoso D’Acunti and his co-conspirators planned to traffic multi-hundred-kilogram quantities of cocaine, valued at millions of United States dollars, to Europe by causing such cocaine to be secreted aboard commercial shipping containers. In November 2018, in the port of Savannah, Georgia, U.S. law enforcement seized 516 kilograms of cocaine sent by Fragoso D’Acunti’s DTO from Cartagena that were destined for Antwerp, Belgium. The cocaine was comingled with pineapples in a shipping container. In December 2018, again in the port of Savannah, Georgia, U.S. law enforcement seized an additional 205 kilograms of cocaine sent by Fragoso D’Acunti’s DTO from Cartagena, that were also destined for Belgium. The cocaine was comingled with limes in a shipping container. In support of the conspiracy, Fragoso D’Acunti paid 1 billion Colombian pesos, equivalent to more than $300,000 U.S., in bribe money to a port security officer.
Fragoso D’Acunti, Fabian Andres Leyton Vargas, and Antonio Aldemar Avila Acevedo were sentenced to 12 years in prison. Co-conspirator José Mauricio Castaneda Garzon was sentenced to seven years and four months in prison.
The Organized Crime Drug Enforcement Task Forces (OCDETF) supported these cases. 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, and multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Jessica D. Aber for the Eastern District of Virginia, and Special Agent in Charge J. Todd Scott of the DEA Louisville Division made the announcement.
The DEA Louisville Division and Cartagena Resident Office investigated the case, with substantial assistance from the DEA’s Office of Special Intelligence’s Document and Media Exploitation Unit and Special Operations Division’s Bilateral Investigations Unit, as well as the DEA’s offices in Bogota, Panama, Guatemala City, San Jose (Costa Rica), Brussels, Mexico City, Madrid, Frankfurt, London, Paris, Rome, The Hague, Vienna, Hong Kong, Islamabad, Savannah, Detroit, Tampa – PANEX, and New Orleans. The U.S. Customs and Border Protection (CBP) National Targeting Center also provided substantial assistance. The Colombian National Police, the Belgian Federal Police, the German Zolfahndungsamt, the National Police of the Netherlands, and the Italian Guardia di Finanza also provided critical support.
Trial Attorneys Douglas Meisel and Janet Turnbull of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) and Assistant U.S. Attorney Anthony T. Aminoff for the Eastern District of Virginia prosecuted the case.
NDDS Trial Attorneys Meisel and Teresita Mutton and Assistant U.S. Attorney Aminoff for the Eastern District of Virginia are prosecuting the case against Fragoso D’Acunti.
Assistant U.S. Attorneys Aminoff (then with NDDS), Katie Rumbaugh, and Dave Peters for the Eastern District of Virginia prosecuted the case against Leyton Vargas, Avila Acevedo, and Castaneda Garzon.
The Justice Department’s Office of International Affairs and the Judicial Attaché at the U.S. Embassy in Bogota provided substantial assistance in securing the arrest and extradition of the defendants.
Florida Man Faces 5-40 Years for Trafficking Methamphetamine in Bangor and Houlton AreasRead the Press Release
BANGOR, Maine: A Florida man pleaded guilty in U.S. District Court in Bangor today to conspiracy to distribute and possess with intent to distribute methamphetamine.
According to court records, between May 2018 and July 2018, Jared Fogg, 32, was obtaining large quantities of methamphetamine from Florida and distributing it in locations around Bangor and Houlton through a group of co-conspirators. On July 12, 2018, a truck driven by a co-conspirator and in which Fogg was a passenger was stopped by law enforcement in Lincoln. A search of the vehicle revealed multiple grams of methamphetamine and nearly $20,000 in cash in Fogg’s bag.
Fogg faces a minimum of five years and maximum of 40 years in prison, and a fine of up to $5 million. He will be sentenced after the completion of a presentence investigative report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency investigated this case.
# # #
Final Defendant in Bowling Green Methamphetamine Distribution Conspiracy Sentenced to 10 Years in Federal PrisonRead the Press Release
Bowling Green, KY – The final member of a three-man methamphetamine distribution conspiracy was sentenced today for his role in the drug trafficking conspiracy. These men were also convicted of possessing with the intent to distribute methamphetamine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division, and Director Tommy Loving of the Bowling Green/Warren County Appalachia High Intensity Drug Trafficking Area (AHIDTA) Drug Task Force made the announcement.
According to court documents, Leon Allen, 34, of Bowling Green, Kentucky, conspired with Antonio Billups, 34, of Columbus, Georgia, and Timothy Barnett, 47, of Bowling Green, Kentucky, to possess with the intent to distribute 6,597 grams of methamphetamine. All three defendants were convicted of this conspiracy. Allen and Billups were also convicted of possessing with the intent to distribute 5,729 grams of methamphetamine and for aiding and abetting Barnett in the possession with the intent to distribute 848 grams of methamphetamine. Barnett was convicted of possessing with the intent to distribute 848 grams of methamphetamine.
Today, Allen was sentenced to 10 years in prison followed by five years of supervised release. Billups was previously sentenced on February 2, 2023, to 12 years in prison followed by five years of supervised release. Barnett was previously sentenced on September 16, 2022, to 10 years in prison followed by five years of supervised release. There is no parole in the federal system.
This case was investigated by the DEA and the Bowling Green/Warren County Appalachia High Intensity Drug Trafficking Area (AHIDTA) Drug Task.
Assistant United States Attorney Mark J. Yurchisin II, of the United States Attorney’s Bowling Green Branch Office, prosecuted the case.
###
Federal Inmate Sentenced to Life in Prison for Murder of CellmateRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Romeo Lopez-Hernandez (37, Coleman) to life in federal prison. A federal jury had found Lopez-Hernandez guilty of first degree, premeditated murder on January 19, 2023.
According to evidence presented during the three-day trial, on February 1, 2021, Lopez-Hernandez strangled his cellmate to death using a torn bed sheet he had made with an improvised knife. After the victim lost consciousness, Lopez-Hernandez watched for guards and continued to strangle the victim until he was sure that the victim had died. Lopez-Hernandez later confessed to the murder and bragged about it to prison personnel. At trial, however, Lopez-Hernandez changed his story and claimed the victim had committed suicide.
This case was investigated by the Federal Bureau of Investigation and the Federal Bureau of Prisons. It was prosecuted by Assistant United States Attorneys Tyrie K. Boyer and Belkis H. Crockett.
Federal Charges Filed After Weekend Traffic Stop Nets 86 Pounds of Powdered Fentanyl and MethamphetamineRead the Press Release
PORTLAND, Ore.—A suspected drug trafficker faces federal charges after he was caught transporting dozens of pounds of powdered fentanyl, methamphetamine, and other illegal drugs on Interstate 5 near Salem, Oregon.
Miguel Cruz-Barrales, 22, whose place of residence is unknown, has been charged by criminal complaint with possessing with intent to distribute fentanyl and methamphetamine.
According to court documents, on April 23, 2023, an Oregon State Police (OSP) trooper initiated a traffic stop on a vehicle driven by Barrales on Interstate 5 south of Salem. The trooper’s canine alerted to two duffle bags located in the trunk of the vehicle that contained numerous packages suspected to contain powdered fentanyl, methamphetamine, and other illegal drugs. The packages were later confirmed to contain 15 kilograms of powdered fentanyl, 24.4 kilograms of methamphetamine, .6 kilograms of heroin, and 4.6 kilograms of cocaine.
On April 24, 2023, Cruz-Barrales made his first appearance in federal court before U.S. Magistrate Judge Stacie F. Beckerman. He was ordered detained pending further court proceedings.
This case is being investigated jointly by the U.S. Drug Enforcement Administration (DEA) and OSP. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Fayetteville Man Sentenced to 30 Years in Prison for Production of Child PornographyRead the Press Release
LITTLE ROCK—A Fayetteville man was sentenced to serve 30 years in federal prison for production of child pornography. Steven Luckett, 38, was sentenced earlier today by United States District Court Judge Lee P. Rudofsky.
In October 2020, the Fayetteville, Arkansas, Police Department began investigating allegations that five minor children were being sexually assaulted by Steven Luckett while they lived in Little Rock. A number of the minor victims were interviewed and disclosed that Luckett sexually assaulted them over the course of several years and, on some occasions, had taken videos of them performing sex acts or had taken nude photos of them. One of the minor victims told investigators that the abuse began when she was six years old and continued until she was 13.
Based on the allegations made by the victims, investigators interviewed Luckett and seized his cell phone. Luckett admitted filming a video of him having sexual contact with a 14-year-old girl and admitted sexually assaulting a 12-year-old girl. Later, a search warrant was obtained for Luckett’s cell phone, which revealed numerous pictures and videos of child pornography. The images of child pornography had been both downloaded from the internet and produced by Luckett.
Luckett was indicted in November 2020 and pleaded guilty in December 2022. In addition to the 30-year prison term, Luckett was sentenced to life of supervised release following his imprisonment. The case was investigated by the Fayetteville Police Department, the Little Rock Police Department, and the Department of Homeland Security. The case was prosecuted by Assistant United States Attorney Kristin Bryant.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Fayetteville Career Criminal Who Shot Pawn Shop Owner Convicted by a Federal JuryRead the Press Release
RALEIGH, N.C. – A federal jury convicted Mario Whitted, 28, today on charges arising from his shooting of a Fayetteville pawn shop owner as he closed up for the night on November 30, 2019. The owner, who survived the attack, was struck twice in the leg and returned fire with his own handgun. Whitted fled the scene and flagged down a Good Samaritan who offered to take him to a local Emergency Room. Whitted instead insisted that he be taken home. He was later apprehended in South Carolina after having a bullet extracted from his foot which ballistics examiners matched to the victim’s gun. DNA evidence also linked Whitted to the scene after he bled in the Good Samaritan’s car. Whitted was found guilty of being a felon in possession of ammunition, deemed an armed career criminal, and now faces 15 years to life in prison when he is sentenced later this year. Whitted has three prior state convictions for common law robbery.
“Today’s verdict puts a career criminal behind bars and makes the Fayetteville community safer,” said U.S. Attorney Michael Easley. “Our office will continue to partner with law enforcement to investigate and prosecute those driving gun violence around our homes and businesses.”
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 Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Fayetteville Police Department, and the Cumberland and Robeson County Sheriffs’ Offices investigated the case. Assistant U.S. Attorneys Chad Rhoades and Phil Aubart prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:20-CR-353-D.
###
Erie Man Sentenced to Prison for Possessing Child Sex Assault MaterialsRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 48 months in jail and 10 years supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Robert Mark Dyer IV, 32, of Erie, Pennsylvania.
According to information presented to the court, from November 2020 to April 2022, Dyer possessed and accessed with intent to view visual images and videos in individual computer files depicting prepubescent minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Lower Makefield Police Department located in Bucks County, Pennsylvania for the investigation leading to the successful prosecution of Dyer.
Eastern District of Louisiana Commemorates 2023 National Crime Victims' Rights WeekRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans joins the United States Department of Justice, the Office for Victims of Crime, the Eastern District of Louisiana’s (EDLA) state and local law enforcement as well as communities nationwide in observing National Crime Victims’ Rights Week (NCVRW), a celebration of victims’ rights, protections and services . This year’s NCVRW observance takes place April 23-27 and features the theme, “Survivor Voices: Elevate. Engage. Effect Change.”
According to a Bureau of Justice Statistics report , in 2021, the latest year for which such information is available, there were more than 4.6 million violent victimizations and 11.7 million property crimes.
“Each year, National Crime Victims’ Rights Week, allows law enforcement, judicial agencies, and direct service providers the opportunity to reassert their commitment to assist and empower crime victims,” said U.S. Attorney Evans. “Crime victims may rest assured that both law enforcement and direct service partners will continue to diligently investigate , prosecute and seek justice for those harmed by criminal wrongdoing .”
The federal Office for Victims of Crime (OVC) leads communities nationwide in their annual observances of National Crime Victims’ Rights Week both by raising awareness of victims' rights and by honoring crime victims and their advocates. This year’s theme is “Survivor Voices: Elevate. Engage. Effect Change.” Partner organizations are committed to engaging with crime victims; learning from their experiences; amplifying their voices; and fostering an environment of safety, support and sympathy.
In the Eastern District of Louisiana, the U.S. Attorney’s Office joins federal and local law enforcement, , judicial agencies and non-profit organizations to commemorate NCVRW, through a series of activities.
For events in those parishes comprising the Eastern District of Louisiana, please refer to the local law enforcement agencies websites for details. Please refer to the EDLA website for a listing of EDLA parishes https://www.justice.gov/usao-edla. We encourage participation in NCVRW’s victim recognition events.
For more information on creating your own public campaigns to raise awareness about crime victims’ rights online and at events throughout the year, please visit OVC’s website at ovc.ojp.gov.
Drug Dealer Sentenced to 10 Years in Prison for Selling the Fentanyl that Resulted in Death of Young WomanRead the Press Release
NEWS RELEASE SUMMARY – April 25, 2023
SAN DIEGO – Jonathan Miguel Lopez was sentenced in federal court to 120 months in prison for selling the fentanyl pills that resulted in the fatal overdose of 23-year-old Sherie Gil on September 30, 2021.
Lopez pleaded guilty in October 2022. According to the government’s sentencing memo, on the morning of September 30, 2021, law enforcement officials and paramedics responded to a 911 call from a commercial office building in San Diego. Law enforcement found Gil deceased in a bathroom along with drug paraphernalia, Gil’s cell phone, and “blues,” or counterfeit oxycodone pills containing fentanyl. The Medical Examiner’s Office later determined that Gil had died as the result of the “toxic effects of fentanyl, cocaine, and alprazolam.”
During a search of Gil’s cell phone, agents discovered that Gil had exchanged text messages with another phone number asking if she could “pick up” blues in the days leading up to Gil’s death. During the investigation that followed, law enforcement discovered that the other phone number was registered to Lopez’s co-defendant, Jamie Ashley Koryn. The text messages also indicated that, on September 29, 2021, Gil again messaged Koryn requesting blues; Koryn sent Gil. her address and Gil then responded that she was seven minutes away.
On October 8, 2021, during the execution of a search warrant at the residence Lopez shared with his co-defendant, Koryn, law enforcement located and arrested Koryn and Lopez and seized their cellular phones. Agents found text messages on Lopez’s and Koryn’s phones showing that they entered into an agreement to distribute fentanyl. Lopez’s plea agreement described some of the text messages in which Lopez was negotiated the price of the fentanyl he would charge their customers. During that search agents also found a loaded pistol under Lopez’s mattress. In his plea agreement Lopez admitted that he used that pistol to protect the drugs that he and Koryn stored at their residence.
Per the plea agreement, Lopez and the government stipulated that the Sentencing Guidelines for distribution of a controlled substance resulting in death and/or serious bodily injury would apply.
“This young woman’s death serves as another terrible reminder of the ongoing devastation inflicted by counterfeit fentanyl pills,” said U.S. Attorney Randy Grossman. “This office remains dedicated to pursuing individuals who seek to profit from the deadly fentanyl market. Those who cause such tragic loss of life will be held accountable.” Grossman thanked the prosecution team and investigating agencies who diligently pursued this case.
“San Diego has lost another life to the devastating effects of fentanyl,” said DEA Special Agent in Charge Shelly Howe. “The DEA and its partners will continue to pursue justice for those who fall victim to this poison.”
“Faced with a decade in federal prison, Lopez will no longer be able to contribute to the opioid epidemic terrorizing not only San Diego, but our entire country,” said Acting Special Agent in Charge Houtan Moshrefi of the FBI’s San Diego Field Office. “It is horrible that Lopez’s actions destroyed one life, but I am confident that his removal from society will save many more. Today’s sentence should put drug dealers on notice that the FBI and our law enforcement partners will continue to identify, disrupt, and remove anyone who peddles this poison from our communities.”
“Homeland Security Investigations (HSI) is dedicated to working with our law enforcement partners to prioritize our efforts and resources toward combatting this fentanyl crisis and will continue to relentlessly pursue those responsible for the smuggling and distribution of this deadly drug within our communities,” said Special Agent in Charge, Chad Plantz, HSI San Diego. “Today’s sentencing demonstrates that those who deliberately engage in these dangerous activities will be held accountable.”
Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation into Gil’s death. This case is the result of ongoing efforts by the U.S. Attorney’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the San Diego Police Department, and the California Department of Health Care Services to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. In 2018, the Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANT Case Number 22-CR-0214-LL
Jonathan Miguel Lopez Age: 35 San Diego
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Life in Prison
AGENCY
Drug Enforcement Administration
Federal Bureau of Investigation
San Diego Police Department
Homeland Security Investigations
California Department of Health Care Services
San Diego County District Attorney’s Office
Disputanta Tax Return Preparer Pleads Guilty to Tax and COVID-19 FraudRead the Press Release
RICHMOND, Va. – A Disputanta woman pleaded guilty today to filing a false individual tax return, preparing false returns for her taxpayer customers, and defrauding two COVID-19 relief programs.
According to court documents, Sherika T. Carter, 40, was the owner and operator of Binn’s Tax Service LLC (Binn’s Tax) which has been in operation since at least the 2016 tax return filing season. Carter routinely prepared and submitted to the Internal Revenue Service (IRS) individual income tax returns for Binn’s Tax’s customers. Between 2016 and continuing through 2021, she filed over 2,000 returns. Certain returns Carter prepared for her customers were fraudulent, as she added false items on the Schedules A, Schedules C, and residential energy credit forms accompanying the returns without the knowledge and consent of her customers. This resulted in her customers either receiving inflated refunds from the IRS or paying less taxes than were owed. Likewise, for tax year 2019, Carter prepared a false and misleading individual income tax return for herself, thereby fraudulently reducing her tax liability. In total, Carter’s crimes caused a tax loss to the IRS of at least $376,248.
Separately, Carter devised and repeatedly executed a scheme to defraud the Paycheck Protection Program (PPP) and the Pandemic Unemployment Assistance (PUA) program of finite funds intended for businesses and workers impacted by the COVID-19 pandemic. As part of this scheme, she submitted PPP applications to financial institutions that contained false supporting documentation, such as a false Schedule C that had never been filed with the IRS and which contained materially false information. Despite fraudulently obtaining three separate PPP loans for Binn’s Tax and herself, Carter further filed a fraudulent unemployment insurance/PUA application with the Virginia Employment Commission that contained false information about her employment status. Through this scheme, the defendant unlawfully recieved approximately $100,000 intended for businesses and workers suffering the effects of the pandemic.
Carter is scheduled to be sentenced on September 19, 2023. She faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kareem A. Carter, IRS Criminal Investigation Acting Special Agent in Charge of the Washington D.C. Field Office; and Troy W. Springer, Acting Special Agent in Charge of the National Capital Region, U.S. Department of Labor - Office of Inspector General, made the announcement after Senior U.S. District Judge John A. Gibney, Jr. accepted the plea.
Assistant U.S. Attorneys Kashan K. Pathan and Mike Gill are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:23-cr-45.
Department of Justice and United States Attorney for the Northern District of Iowa Commemorate National Crime Victims’ Rights WeekRead the Press Release
CEDAR RAPIDS, IA – The Department of Justice’s Office for Victims of Crime (“OVC”) and the United States Attorney for the Northern District of Iowa will join communities nationwide in observing National Crime Victims’ Rights Week and celebrating victims’ rights, protections, and services. This year’s observance takes place April 23-29 and features the theme, “Survivor Voices: Elevate. Engage. Effect Change.”
In the Northern District of Iowa, United States Attorney Timothy T. Duax announced winners for the following awards based on their service to victims in Iowa:
- The Law Enforcement Victim Services Award is presented to Sargent Investigator Brent Ostrander from the Clayton County Sheriff’s Department. This award is presented to law enforcement officers in Iowa who go beyond the call of duty to help crime victims. It is the highest federal honor in Iowa for victim services by a law enforcement officer. Sgt. Ostrander is recognized for his leadership skills when working with other law enforcement agencies and his compassion and survivor-centered approach when working with crime victims.
Sgt. Ostrander took the initiative to attend college courses on trauma-informed services for victims of sexual assault and was then assigned to investigate all sexual assault allegations in Clayton County. During these investigations, Sgt. Ostrander consistently showed victims great respect and empathy. Sgt. Ostrander took his experience, knowledge and skills and began to train law enforcement in rural areas on how to interview, investigate, and present cases for prosecution. He collaborated with the Iowa Law Enforcement Academy to implement a Sexual Assault training course. He assisted in creating the Clayton County Sexual Assault Response Team (SART), a team comprised of numerous law enforcement agencies, the Clayton County Attorney and Clayton County Victim Witness Coordinator. Sgt. Ostrander is a leader, educator and outstanding advocate for men, women, and children devastated by sexual violence.
- The Award for Excellence in Victim Services is presented to Victim Specialist Sherrie Schweder from the Federal Bureau of Investigation. The Law Enforcement Victim Services Award is presented to Detective Nathan West from the Sioux City Police Department, Special Agent Bradley Colligan from the Federal Bureau of Investigation, and Deputy Jared Junge from the Dakota County Nebraska Sheriff’s Department. These four individuals were nominated for their outstanding investigative and advocacy work that led to the successful prosecution of Arjune Ahmed.
Arjune Ahmed was convicted of kidnapping and sexually assaulting two women in Sioux City Iowa. While investigating these crimes, SA Colligan, Investigator West and Dep. Junge discovered five additional victims of attempted kidnapping and sexual assault by this defendant stemming back to 2014. Each of these victims were afraid of the defendant, distrustful of law enforcement, and keen to forget the worst day of their lives. But for the caring, comforting strong and inspirational conduct of Victim Specialist Schweder, the victims would not have cooperated with the government. Ms. Schweder provided varying levels of assistance to each victim, including crisis counseling, court accompaniment, and transportation. This incredible team effort made it possible to remove a serial kidnapper and rapist from the Siouxland area.
Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs, and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims.
For more information on how to create your own public campaigns to raise awareness about crime victims’ rights online and at events throughout the year, please visit: https://ovc.ojp.gov/ncvrw2023/overview.
D.C. Man Gets Seven Years for Using a Gun in a Crime of ViolenceRead the Press Release
WASHINGTON - Nicco Young, 26, of Washington, D.C., was sentenced today to 84 months in prison for using, carrying, and possessing a firearm during a crime of violence, announced U.S. Attorney Matthew M. Graves and Chief Robert J. Contee III, of the Metropolitan Police Department (MPD).
Nicco Young pleaded guilty in January 2023, in the United States District Court for the District of Columbia. U.S. District Court Judge Dabney Friedrich also ordered 36 months of supervised release.
According to the government’s evidence, the defendant entered the 7-Eleven, at 1700 17th Street, NW, at 10:30 a.m., on February 23, 2022, armed with a firearm. He approached and pointed the handgun at a store employee. The defendant then forced the employee to empty the cash register and had the employee lay down on the ground. The defendant took the money from the cash register and fled the store.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from both the Metropolitan Police Department and the Federal Bureau of Investigation. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Karla Nunez.
Finally, they commended the efforts of former Assistant U.S. Attorney Samuel Frey who indicted and prosecuted the case as well as Assistant U.S. Attorney Shehzad Akhtar.
Convicted Felon Sentenced to More than Six Years in Prison on Gun and Drug ChargesRead the Press Release
ANNISTON, Ala. – A federal judge on Friday sentenced a convicted felon on gun and drug charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Court Judge Corey L. Maze sentenced Demarious Dupree Kirksey, 40, of Anniston, to 74 months in prison. Kirksey pleaded guilty to possession with intent to distribute 5 grams or more of methamphetamine and being a felon in possession of a firearm in October 2022.
According to the plea agreement, on April 13, 2019, an officer from the Anniston Police Department Street Crimes Unit was patrolling Glen Addie Homes due to recent complaints regarding drug activity. The officer observed Kirksey pull a clear plastic bag from his front left pocket and begin to make a marijuana cigarette in his lap. When the officer approached Kirksey, he attempted to flee. The officer grabbed the back of Kirksey’s shirt to stop him from getting away. The officer recovered a stolen Springfield 9mm pistol loaded with 17 rounds of ammunition from Kirksey’s front waistband. In Kirksey’s pocket, the officer recovered eleven individually wrapped bags containing “crack” cocaine, a plastic bag containing methamphetamine, and a plastic bag containing one acetaminophen pill and one oxycodone pill. Near where Kirksey had been seated, the officer found a clear plastic baggie containing marijuana.
ATF investigated the case along with assistance from the Anniston Police Department, and the 7th Judicial Major Crimes Unit. Assistant U.S. Attorney Kristy Peoples and John Camp prosecuted the case.
Convicted Felon Sentenced for Armed Robberies in Maryland and VirginiaRead the Press Release
ALEXANDRIA, Va. – An Upper Marlboro, Maryland, man who had previously been convicted of a felony offense was sentenced today to over five years in prison for committing two armed robberies and one attempted armed robbery across Northern Virginia and Maryland.
According to court documents, in February 2021, Francis Ford, 53, robbed a Subway restaurant in Largo, Maryland, and a Papa John’s restaurant in Falls Church, and attempted to rob a Marathon gas station in Upper Marlboro, Maryland. On February 21, 2021, Ford and his co-conspirator, Jon Fleet, 62, of Upper Marlboro, Maryland, drove to the Subway restaurant. Fleet entered the Subway and brandished a firearm at employees while Ford waited in the getaway vehicle. Once Fleet had completed the robbery, he fled the restaurant and Ford drove himself and Fleet away from the crime scene. On February 23, 2021, Ford and Fleet both walked into the Papa John’s restaurant together. Fleet pointed a firearm at an employee and demanded that the cash register be opened; Ford made employees believe that he was carrying a firearm by keeping his hand on his waistband as though a firearm was there. After the employee eventually produced a bag containing cash, Ford and Fleet fled the store. Finally, on March 7, 2021, Ford entered the Marathon gas station with a sawed-off shotgun and demanded that the store clerk produce cash from the register. The store clerk refused to give Ford any money and called the police, thwarting Ford’s efforts.
At the time of the robberies, Ford and Fleet were convicted felons and thus prohibited from possessing firearms.
In February of 2022, Fleet was sentenced to 17 years in prison in connection with these and other robberies across Virginia and Maryland.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Kevin Davis, Fairfax County Chief of Police; and Malik Aziz, Chief of Prince George’s County Police, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
Assistant U.S. Attorneys Cristina Stam and Bibeane Metsch prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-10.