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Monday 24 April 2023
New Orleans Man Pleads Guilty to Federal Gun and Narcotics ChargesRead the Press Release
NEW ORLEANS, LA – HERBERT JAMES, age 27, of New Orleans, Louisiana, pleaded guilty on April 19, 2023 to a two-count indictment charging him with possessing a firearm as a convicted felon, in violation of the Federal Gun Control Act, Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) and possession with intent to distribute controlled substances, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(C) announced United States Attorney Duane A. Evans.
According to court documents, JAMES was arrested on April 22, 2022 during the course of a traffic stop, by the Louisiana State Police when, troopers found JAMES in possession of a fully loaded Sig Sauer, nine-millimeter handgun and a quantity of Ecstasy. Further investigation revealed that JAMES had been convicted in 2018 for aggravated flight from an officer, which prohibited his possession of a firearm.
The maximum penalties as to the weapon charge, are ten (10) years imprisonment, a fine of up to $250,000.00, and up to three (3) years of supervised release following any term of imprisonment. As to the narcotics charge, JAMES faces up to twenty (20) years imprisonment, a fine of up to $1,000,000, and at least three (3) years of supervised release. Additionally, JAMES will pay a $200 mandatory special assessment fee. Sentencing is scheduled for August 9, 2023.
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 Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Louisiana State Police. The case is being prosecuted by Assistant U.S. Attorney Greg Kennedy of the Violent Crime Unit.
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Member of 5-9 Brims Gang Convicted of Brooklyn MurderRead the Press Release
A federal jury in Brooklyn returned a guilty verdict today against Marvin Pippins, also known as “Mukk,” a member of the Brooklyn-based street gang 5-9 Brims, on counts of racketeering conspiracy, murder-in-aid-of racketeering, murder conspiracy, narcotics trafficking and use of a firearm. The verdict followed a two-week trial before United States District Judge Pamela K. Chen. When sentenced, Pippins faces a mandatory term of life imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
Mr. Peace expressed his thanks to the Federal Bureau of Investigation, New York Field Office, the Bureau of Alcohol, Tobacco, Firearms & Explosives, New York Division, and the New York City Police Department for their outstanding investigative work and dedication.
“As found by the jury, Pippins brazenly committed a gang-related murder with a gun, in broad daylight in Brooklyn, taking another human’s life on behalf of his criminal enterprise which also trafficked drugs and perpetrated fraud in our community,” stated United States Attorney Peace. “Pippins will now face very serious consequences for a brutal crime that was motivated by a senseless feud with rivals. Today’s verdict demonstrates the commitment of this Office and our law enforcement partners to dismantle violent gangs that threaten the safety of our communities.”
The evidence at trial established that between January 2012 and December 2019, Pippins and other members and associates of the 5-9 Brims engaged in drug trafficking and fraud, and committed acts of violence, including murder. Pippins sold crack and cocaine and committed numerous financial frauds, including possession and use of stolen identities, fraudulent checks and access devices such as credit cards and bank account information.
During this time period, the 5-9 Brims were feuding with a rival faction, known as “Real Ryte,” whose members also operated in Brooklyn. On December 19, 2015, Pippins killed Sean Peart, a Real Ryte member, by shooting at him six times while Peart sat in a car in Bedford Stuyvesant, Brooklyn.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant U.S. Attorneys Jennifer M. Sasso, Lindsey R. Oken and Dana Rehnquist are in charge of the prosecution, with the assistance of Paralegal Specialist Celine Laruelle.
The Defendant:
MARVIN PIPPINS (also known as “Mukk”)
Age: 32
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-378 (PKC)
Massachusetts Man Sentenced for Computer IntrusionRead the Press Release
United States Attorney Steven Russell announced that Jonathan Manzi, 31, currently of Beverly, Massachusetts, was sentenced on April 20, 2023, in Lincoln, Nebraska, by Senior United States District Judge John M. Gerrard for obtaining information from a protected computer. Manzi was sentenced to 18 months in prison and will also serve a year on supervised release. Manzi was also ordered to pay $655,000 in restitution.
Manzi was an owner and co-founder of Ink Labs, Inc., a business that specialized in technology to permit its customers and users to upload materials to “the cloud” and then print those uploaded materials at an Ink Labs “kiosk” or other printing location for a fee. The majority of Ink Labs’ customers are colleges and universities. One of Ink Labs competitors in this market was Wepa, Inc., a business located in Pelham, Alabama. The victim identified in the investigation worked at Ink Labs until February, 2017, when he resigned from his position. The victim later took a job at Wepa, Inc. as a regional sales representative.
In June, 2017, while traveling abroad with his family in Spain, the victim received notifications from both Google regarding his Gmail account and from his cellular provider, AT&T. These notifications made the victim aware that someone had been attempting to access his device and accounts. While still in Spain, the victim’s cellular phone lost service. He contacted AT&T and was told that he had requested that his phone number be moved to a Samsung device. The victim informed AT&T that he had not authorized this change and asked that his number be moved back to his phone. On this same day the victim also noticed that he was unable to log into his Gmail account using his credentials.
Evidence established that on July 1, 2017, Manzi accessed the victim’s Google email account without authorization. Additionally, Manzi impersonated the victim to AT&T to gain control over the victim’s phone. Once gaining control, Manzi was able to access the information contained in files and applications on the Google accounts, including access to the victim’s email account and web-based applications. Manzi then was able to obtain the victim’s login credentials for the Dropbox account for Wepa, Inc., which Manzi then used to access files belonging to Wepa.
In July, 2017, Manzi again accessed Wepa’s Dropbox account using the victim’s Google account and changed the password of the victim’s Dropbox account. Once Manzi accessed the Wepa, Inc. Dropbox account, Manzi was again able to access information of Wepa, Inc., including customer information.
This case was investigated by the Federal Bureau of Investigation.
Maryland Man Pleads Guilty to Federal Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – Timothy Lanier Allen III, 24, of Maryland, pleaded guilty today to three counts of making false statements in acquisition of firearms.
According to court documents and statements made in court, on June 1, 2022, Allen purchased two Ruger 57, 5.7x28mm-caliber pistols, a Glock 27, .40-caliber pistol, and a Glock 30S, .45-caliber pistol at various businesses in Barboursville and Huntington. Allen bought the firearms for an individual who was with him during the purchases and who provided the money to buy the firearms. Allen falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Record Form 4473 that he was the buyer of the firearms when he knew he was purchasing the firearms for the individual.
Allen is scheduled to be sentenced on July 31, 2023, and faces a maximum penalty of 15 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Finney is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-215.
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Man admits to hiding meth in air freshenerRead the Press Release
CORPUS CHRISTI, Texas – A 57-year-old man has pleaded guilty to possession with intent to distribute more than 180 grams of meth, announced U.S. Attorney Alamdar S. Hamdani.
On March 17, authorities encountered Sean Graham at a local restaurant. There, he appeared nervous and soon admitted he had meth in his truck. They searched his truck and found several bags containing approximately 80 grams of meth of the drug in the truck.
Law enforcement then obtained a search warrant for his residence where they found an additional 100 grams of meth. Some was located inside an Airwick air freshener.
The total weight was approximately 180.4 grams.
U.S. District Judge Drew Tipton will impose sentencing July 24. At that time, Graham faces up to life in prison and a possible $10 million maximum fine.
Graham has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of the Drug Enforcement Administration and the Corpus Christi Police Department. Assistant U.S. Attorney Patrick Overman is prosecuting the case.
Lowell Man Sentenced for Cocaine Conspiracy Tied to Colombian Organized Crime OrganizationRead the Press Release
BOSTON – A Lowell man was sentenced today in federal court in Boston for conspiring to distribute cocaine.
Miguel Colindres, 61, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 51 months in prison and three years of supervised release. In January, Colindres pleaded guilty to conspiracy to distribute and possess with intent to distribute five kilograms or more of cocaine. Colindres was arrested and charged on July 15, 2020 and subsequently indicted by a federal grand jury on July 21, 2020.
Colindres conspired with members of La Oficina de Envigado (La Oficina), a criminal organization based in Medellín, Colombia to distribute five kilograms of cocaine. La Oficina originated in the 1980s when its members provided enforcement and collection services for the Medellín Cartel, including deceased Medellín Cartel leader Pablo Escobar. Today, La Oficina is allegedly involved in international narcotics trafficking, drug debt collection, money laundering, extortion and murder for hire.
It is alleged that co-defendants Fabio de Jesus Yepes Sanchez and Mario Zapata Velez were members of La Oficina who were tasked with collecting a $750,000 drug debt from two cocaine traffickers in Massachusetts. It is further alleged that Colindres conspired with Yepes, Zapata and others, to obtain five kilograms of cocaine from the Massachusetts traffickers, sell those kilograms, and then repatriate the drug proceeds to Colombia, in partial satisfaction of the outstanding drug debt.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Valuable assistance in the investigation was provided by the Criminal Division’s Office of International Affairs of the Justice Department; Internal Revenue Service’s Criminal Investigations in Boston; and the Government of Colombia. Assistant U.S. Attorneys Lauren A. Graber and Jared C. Dolan of Rollins’ Criminal Division prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Lincoln Woman Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that Connie Robinson, 33, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln for possession with intent to distribute 50 grams or more of actual methamphetamine. Senior United States District Judge John M. Gerrard sentenced Robinson to 192 months’ imprisonment. There is no parole in the federal system. After her release from prison, she will begin a 10-year term of supervised release.
On April 14, 2022, a Lincoln Police Department officer was on duty checking hotels in Lincoln. The officer saw a black Ford sedan sitting in a hotel lot. The license plate on the vehicle did not match that vehicle. The officer stopped and made contact with the vehicle. Robinson, who was in the front passenger seat, rolled down the window for the officer. The officer smelled marijuana odor coming from the vehicle. Another officer arrived on the scene, and the vehicle was searched. The second officer opened a fanny pack where Robinson had been seated and found a pipe, baggies, a scale, and about 98 grams of actual methamphetamine. Officers also found about 2.4 grams of methamphetamine and drug paraphernalia in a sunglass case on the driver’s side. Robinson was arrested and taken to jail. While there, she made an excited utterance that the case was hers.
Robinson had a prior conviction for delivery of a controlled substance which raised the mandatory minimum sentence in this case from 10 to 15 years’ imprisonment.
This case was investigated by the Lincoln Police Department.
Leader of Organization that Distributed over 6 Kilograms of Heroin and Fentanyl Sentenced to over 33 Years in Federal PrisonRead the Press Release
A man who led a years‑long conspiracy to distribute heroin and fentanyl was sentenced on April 21, 2023, to over 33 years in federal prison.
Brian Jarrell Dennis, age 33, from Cedar Rapids, Iowa, received the prison term after his June 27, 2022 guilty pleas to one count of conspiracy to distribute heroin, two counts of distribution of heroin and fentanyl, two counts of distribution and aiding and abetting the distribution of heroin and fentanyl, and one count of possession of a firearm by a felon.
Evidence and information presented at the sentencing hearing and prior hearings showed that Dennis orchestrated the transport of over six kilograms of purported heroin from Chicago for distribution in Cedar Rapids. During the early part of 2021, the Drug Enforcement Administration in Cedar Rapids initiated a wiretap investigation into Dennis’s drug distribution ring. That evidence showed that during the months of the wiretap, Dennis employed intermediaries whom he supplied with purported heroin (which almost always also contained fentanyl or another synthetic opioid) to distribute to customers. Several of those customers regularly distributed that purported heroin to other individuals.
Evidence at the sentencing hearing showed that, in November 2018, Dennis was in a dispute with his cousin, who was one of his former heroin distributors. Dennis believed his cousin had stolen customers from him, so Dennis threatened that individual over the phone, telling him that he would “come at him with everything [he] had.” The sentencing court found that, during the evening of November 29, 2018, Dennis shot his cousin twice in the chest with a .22 caliber pistol during a drive‑by shooting in Cedar Rapids. The cousin survived the attack, but the sentencing judge observed that for Dennis, “money comes before family.” The judge described Dennis as the “poster child” for a major drug dealer who uses violence to control his business.
Information presented at sentencing and other hearings also showed that when officers attempted to arrest Dennis on the federal arrest warrant in June 2021, he led them on a high‑speed car chase during which Dennis threw a loaded handgun out of his vehicle, drove through traffic signals, and eventually drove onto a golf course where he ran his vehicle into a stone bridge. After Dennis exited his vehicle and attempted to flee on foot, he was arrested by officers.
“Heroin and fentanyl are lethal drugs, and have killed adults and children in our community,” said United States Attorney Timothy Duax. “Dennis brought these deadly drugs here intending to sell them for profit, regardless of the consequences. Dennis used violence to control his market and enhance his ability to make money from the vulnerable and addicted. Prosecuting dangerous individuals like Dennis remains a top priority for our office.”
drug“A known drug trafficker with a proven history of violence has been removed from our community making the streets of Cedar Rapids that much safer for our families,” Drug Enforcement Administration (DEA) Omaha Division Special Agent in Charge Justin C. King said. “Today’s sentencing, along with the sentencing of nine of Brian Dennis’ associates, should send a strong message about the penalty that comes from pushing potentially lethal substances like heroin and heroin laced with fentanyl into our neighborhoods. Drug trafficking is not an innocent crime and arrests are often made of traffickers who own multiple weapons and have inflicted harm on others. Brian Dennis is a dangerous criminal and now faces more than 33 years in federal prison for his violent acts.”
Nine other individuals, Cody Scott Deklotz, Andrew James Lehman, Ryan Rick Schlitter, Melinda Salvatora Werning, Jerry Dwayne Banghart, Thomas Nathaniel May, Demeco Demon Irvin, Taylor James Leyden, and David Michael Nelson, previously pled guilty to the heroin conspiracy and have been sentenced. Ryan Rick Schlitter was sentenced to 46 months’ imprisonment. Andrew James Lehman was sentenced to 10 months and 16 days’ imprisonment. Cody Scott Deklotz was sentenced to 84 months’ imprisonment. Melinda Salvatora Werning was sentenced to 12 months and one day of imprisonment. Jerry Dwayne Banghart was sentenced to 46 months’ imprisonment. Thomas Nathaniel May was sentenced to 31 months’ imprisonment. Demeco Demon Irvin was sentenced to 46 months’ imprisonment. Taylor James Leyden was sentenced to 24 months’ imprisonment. David Michael Nelson was sentenced to 24 months’ imprisonment. Ladonna Cynthia Givens, who also sold heroin and fentanyl for Dennis but who was charged in a separate indictment, was sentenced to 7 months and 14 days’ imprisonment.
Dennis was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Dennis was sentenced to a total of 400 months’ imprisonment on the conspiracy count, 240 months’ concurrent imprisonment on the remaining drug counts, and 120 months’ concurrent imprisonment on the gun count. He must also serve a total of a five-year term of supervised release after the prison term. There is no parole in the federal system.
Dennis is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21‑CR‑32‑CJW.
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L3 Technologies Settles False Claims Act Allegations Relating to Double-Charging for Certain Material CostsRead the Press Release
L3 Technologies, Inc., Communication Systems West, a Utah-based manufacturer of communications equipment for military systems, has agreed to pay $21.8 million to resolve allegations that it violated the False Claims Act by knowingly submitting and causing the submission of false claims to the Department of Defense by including in contract proposals the cost of certain parts twice, the Department of Justice announced today.
From approximately 2008 to 2011, L3 submitted, and the Department of Defense accepted, dozens of contract proposals for a handheld receiver called the Remote Operations Video Enhanced Receiver (ROVER), and a compact transceiver called the Video Oriented Transceiver for Exchange of Information (VORTEX), which operate together to provide real-time, full-motion video and other crucial data from the battlefield. The contract proposals included the cost of low-cost common-stock items, such as nuts and bolts, twice. As a result, the United States alleged that L3 knowingly double-charged the government for these parts.
“Government contractors must ensure that they provide the goods or services that they promised at the proper price,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our commitment to pursue those who knowingly overcharge the American taxpayers.”
“The U.S. Attorney’s Office is committed to protecting the integrity of federal procurement contracting,” said U.S. Attorney Trina A. Higgins for the District of Utah. “We will vigorously pursue federal contractors who fail to comply with the highest standards of accuracy to ensure federal agencies are appropriately charged for goods and services.”
“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense’s Office of Inspector General, is steadfastly committed to rooting out fraud and ensuring taxpayer dollars are properly utilized,” said Acting Special Agent in Charge Gregory P. Shilling of DCIS’s Southwest Field Office. “DCIS, the Department of Justice, and our law enforcement partners will continue to work together to ensure individuals and contractors that defraud the government are held accountable for their actions.”
“This settlement further demonstrates the resolve of Army Criminal Investigation Division and our law enforcement partners to protect and defend the assets of the United States Army,” said Special Agent in Charge Scott L. Moreland of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Utah, with assistance from the Department of Defense, Defense Contract Audit Agency, and Defense Contract Management Agency.
This matter was handled by attorneys Paul R. Perkins, Russell B. Kinner, and Allison Cendali of the Civil Division and Assistant U.S. Attorney Sandra Steinvoort for the District of Utah.
In conjunction with this resolution, the Justice Department has agreed to settle for $7,982,554 a lawsuit filed by L3 alleging breach of contract claims against the United States. That case, L3 Technologies, Inc., Communications Systems-West Division v. United States, Civil Action No. 17-1304 (Fed. Cl.), alleged that in an effort to prevent L3 from continuing to double-charge for common-stock items, the Department of Defense improperly prohibited L3 from charging certain other costs.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Justice Department Secures $2 Million Agreement in Sexual Harassment Lawsuit Against Alabama SheriffRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with the Sheriff of Mobile County, Alabama, to resolve the department’s lawsuit filed in the U.S. District Court for the Southern District of Alabama alleging violations of Title VII of the Civil Rights Act of 1964 (Title VII).
The settlement agreement resolves the department’s allegations that female corrections officers at the Mobile County Metro Jail were regularly subjected to severe and pervasive sexual harassment in the workplace by male inmates and that, despite the employees’ numerous reports to jail supervisors objecting to the harassment, the sheriff’s office did not take the complaints seriously and failed to take prompt and effective action to remedy this harassing conduct.
The department’s lawsuit also alleges that male inmates harassed female employees assigned to the jail’s housing units by frequently exposing their genitals to and masturbating at them, and that inmates also directed sexual slurs, sexual propositions, threats of sexual violence and sexually degrading comments toward female employees.
“Employers must take appropriate action to protect their employees from sexual harassment in the workplace,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Just like any other workplace, jails must take steps necessary to ensure that female employees are not subject to a sexually hostile work environment in any form.”
Under the terms of the settlement agreement, if approved by the court, the sheriff will pay $2.02 million into a settlement fund that will be used to compensate those women who were harmed by the employment practices challenged by the United States. The agreement also requires the sheriff to develop a comprehensive inmate sexual misconduct policy; train all jail employees on the new policy related to inmate sexual misconduct; maintain a dedicated housing area to house inmates found guilty of sexual misconduct; and appoint an Inmate Sexual Misconduct Disciplinary Hearing Officer to monitor and track compliance with the new inmate sexual misconduct policy.
This lawsuit is part of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative. The initiative is aimed at eradicating sexual harassment in state and local government workplaces. It focuses on litigation, outreach and development of effective remedial measures to address and prevent future sex discrimination and harassment.
Trial Attorneys Taryn Wilgus Null, Alicia Johnson, Juliet Gray, Emily Given, Catherine Sellers, Sharion Scott and Julia Quinn of the Civil Rights Division’s Employment Litigation Section prosecuted the case.
The full and fair enforcement of Title VII is a top priority of the Civil Rights Division’s Employment Litigation Section. Additional information about the Civil Rights Division and the Employment Litigation Section is available on its websites www.justice.gov/crt and www.justice.gov/crt/employment-litigation-section.
Justice Department Observes National Crime Victims’ Rights Week with Events Throughout the CountryRead the Press Release
Spokane, Washington – Vanessa R. Waldref, United States Attorney for the Eastern District of
Washington, announces National Crime Victims’ Rights Week (NCVRW), which will be
observed from April 23–29, 2023. The federal Office for Victims of Crime (OVC) leads
communities throughout the country in annual observances of National Crime Victims’ Rights
Week by raising awareness of victims’ rights and honoring crime victims and those who
advocate on their behalf.This year’s theme is “Survivor Voices: Elevate. Engage. Effect Change.” During this week, the
Department of Justice recognizes the individuals and groups whose advocacy has propelled the
victims’ rights movement forward for the past half century, inspiring in victims and their loved
ones a feeling of hope for progress, justice, and healing. Partner organizations are committed to
engaging with victims of crime; learning from their lived experiences; amplifying their voices;
and fostering an environment where they are heard, believed, and supported.The United States Attorney’s Office for the Eastern District of Washington seeks to raise
awareness about crime victims’ issues and rights and introduce our communities to the important
resources and services available. This matters because, according to a report from the Bureau of
Justice Statistics, in 2021, there were more than 4.6 million violent victimizations and 11.7
million property crimes, the latest year for which such information is available. President
Ronald Reagan proclaimed the first National Crime Victims’ Rights Week in 1981 to bring
greater sensitivity to the needs and rights of victims of crime and the Department of Justice is
proud to continue this important annual recognition.U.S. Attorney Waldref reaffirmed the commitment of the United States Attorney’s Office for the
Eastern District of Washington to supporting the rights of crime victims. “Our mission is to
secure justice for the victims of crime and to prosecute those who have done them harm. To do
this, we work closely with our law enforcement partners to address criminal activity in all of our
communities, and we engage with victims’ advocacy organizations to support survivors and
reduce the pain that so many victims of crime continue to endure.”OVC and the United States Attorney’s Office for the Eastern District of Washington encourage
continued participation in victim-related observances throughout the year. For additional
information on how to support victims of crime, visit OVC’s website at www.ovc.gov or contact
the U.S. Attorney’s Office for the Eastern District of Washington’s Victim Witness Program at
(509) 353-2767.Indianapolis Man Sentenced to Federal Prison for “Straw Purchases” of Nineteen Firearms and Illegal Gun Trafficking Using InstagramRead the Press Release
Indianapolis- DeAngelo Carnell, 24, of Indianapolis, Indiana was sentenced to one year and one day in federal prison after pleading guilty to six counts of making false statements in connection with the acquisition of a firearm and one count of dealing in firearms without a federal license.
According to court documents, over the course of 40 days, from April 2021 through May 2021, DeAngelo Carnell purchased a total of nineteen firearms from different gun retailers in the Indianapolis area over the course of six transactions as part of a “straw purchase” scheme. A straw purchase scheme is when a person not prohibited from purchasing or possessing a firearm falsely states to a federally licensed gun dealer that they are purchasing a firearm for themselves, when they know that the gun is actually intended for someone else, frequently someone who is prohibited from purchasing or possessing a firearm.
In each of these transactions, Carnell purported that he was buying the firearms for himself. On During a June 28, 2021, interview with a Bureau of Alcohol, Tobacco, Firearms, and Explosives agent, Carnell admitted that he purchased all but one gun for other individuals and that most of the transactions were facilitated using Instagram. On one occasion Carnell met subjects from Chicago and Gary, Indiana, at a gun store to illegally by guns for them. Carnell admitted that he charged a $50 fee for each illegal purchase, and that it was common for him to purchase handguns for young people who were unable to legally buy a gun because they were under the age of twenty-one. Carnell admitted that buying and selling firearms was his sole source of income from April 2020 through June 2021.
U.S. Attorney for the Southern District of Indiana, Zachary A. Myers and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division made the announcement.
“Illegal gun traffickers flood our streets with firearms and drive the violence plaguing too many of our neighborhoods, and saving lives requires us to stop the flow of crime guns at their source,” said U.S. Attorney Myers. “This defendant repeatedly lied to obtain firearms and profited by putting them into the hands of people prohibited from legally purchasing them. Now he will pay for his crimes in federal prison. This prosecution demonstrates that our office will work tirelessly with the ATF to identify illegal gun traffickers and hold them accountable.”
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated this case. The sentence was imposed by U.S. District Court Judge Chief Tanya Walton Pratt. Judge Pratt also ordered that Carnell be supervised by the U.S. Probation Office for 3 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Jayson McGrath, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Indianapolis Career Criminal Sentenced to Seven Years in Federal Prison for Fentanyl Trafficking After Threatening Woman with a FirearmRead the Press Release
INDIANAPOLIS- Corey Bussell, 42 of Indianapolis, Indiana, was sentenced to 7 years in federal prison after pleading guilty to possession with intent to distribute fentanyl.
According to court documents, on May 8, 2021, Indianapolis Metropolitan Police Department officers were alerted to shots fired at a residence on Guilford Avenue in Indianapolis, Indiana. Victim 1 explained to detectives that she was visiting Bussell’s wife at their home when Bussell came down the stairs with a gun in his hand. Bussell pulled the slide back on the firearm and told Victim 1 to “get the f*** out of my house.” As Victim 1 left the house, Bussell followed her outside and fired the gun into the ground next to the steps of the front porch. Victim 1 stated that Bussell continued to threaten her, claiming that he would “pop” her with the firearm if she did not leave.
IMPD officers recovered one spent shell casing right outside the porch steps of Bussell’s residence. On May 13, 2021, officers initiated a traffic stop on Bussell near Guilford Avenue. During a search of the vehicle, officers located a fully loaded Glock handgun with an extended magazine inserted. The weapon had been reported stolen on March 13, 2021. On that same day, IMPD SWAT officers executed a search warrant at Bussell’s residence where they found 57.4 grams of a substance containing fentanyl, 5.39 grams of cocaine, and marijuana in a backpack.
Bussell’s multiple previous felony convictions for resisting law enforcement, possession of narcotics, robbery, alteration of handgun identification markers, carrying a handgun without a license, dealing in a sawed-off shotgun, and three convictions for illegal possession of a firearm by a serious violent felon prohibit him from ever possessing a firearm.
Zachary A. Myers, United States Attorney for the Southern District of Indiana, Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division, and Randal Taylor, Chief of IMPD made the announcement.
“This defendant poses an extreme danger to our community, as shown by his lengthy criminal history and willingness to engage in gun violence,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Not only did he use a firearm to threaten an innocent woman, but he was also responsible for pushing deadly poisons into our communities. We are grateful to our exceptional partners at IMPD and ATF for ensuring that this defendant is behind bars and unable to threaten or harm another individual.”
IMPD and ATF investigated this case. The sentence was imposed by U.S. District Court Judge, Chief Tanya Walton Pratt. Judge Pratt also ordered that Bussell be supervised by the U.S. Probation Office for 4 years following his release from Federal Prison and be subject to a $500 fine.
U.S. Attorney Myers thanked Assistant United States Attorneys Michelle P. Brady and Samantha Spiro, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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IRB Brasil Agrees to Pay Shareholders $5M in Connection with Securities Fraud SchemeRead the Press Release
A publicly traded Brazilian reinsurance company, IRB Brasil Resseguros SA, aka IRB Brasil RE (IRB), has entered into a non-prosecution agreement (NPA) with the Justice Department and agreed to pay $5 million in victim compensation to resolve the government’s investigation into a securities fraud scheme to fraudulently prop up IRB’s stock price by spreading false information that U.S. investment firm Berkshire Hathaway Inc. had invested in the company. IRB trades on Brazil’s B3 exchange and has shareholders around the world, including in the United States.
As it admitted in the NPA, IRB, through its former CFO, Fernando Passos, executed the fraud scheme beginning in February 2020 after an investment company published a report questioning the accuracy of IRB’s financial statements and announcing that the investment company had taken a short position against IRB’s stock. IRB’s stock price dropped in the wake of the report. In response, Passos developed and executed a scheme to mislead shareholders and the investing public by disseminating and causing to be disseminated materially false information that Berkshire Hathaway had invested in IRB, despite knowing that Berkshire Hathaway had not made any such investment. Passos circulated, and caused subordinate IRB investor relations employees to circulate, false materials to members of the press, analysts, and members of IRB’s board of directors to spread the false information regarding Berkshire Hathaway’s purported investment.
News outlets in both Brazil and the United States began incorrectly reporting that Berkshire Hathaway had invested in IRB. Following the news coverage, on the evening of March 3, 2020, Berkshire Hathaway issued a press release stating that it was not currently, had never been, and had no intention of becoming a shareholder in IRB. On March 4, 2020, after Berkshire Hathaway’s press release, IRB’s stock price dropped precipitously, causing significant shareholder losses.
As part of the NPA, IRB admitted that the facts described in the NPA constitute securities fraud. Under the terms of the NPA, IRB has agreed to continue cooperating with the Justice Department in other related investigations, to continue to implement a compliance and ethics program as set forth in the NPA, and to report to the department regarding the company’s remediation and implementation of the compliance measures as described in the NPA. Further, IRB has agreed to pay victim compensation of $5 million to shareholders who sold IRB stock on March 4, 2020.
The department reached this resolution with IRB based on a number of factors, including, among others, the nature and seriousness of the offense conduct involving IRB’s former CFO, as well IRB’s cooperation and implementation of remedial measures. In addition, IRB and the department agreed that the total amount of losses to all shareholders who sold IRB stock on March 4, 2020, was significantly more than $5 million. However, despite agreeing that a larger amount otherwise would be appropriate based on the law and the facts, IRB made representations to the department that the company had an inability to pay a criminal monetary penalty and to cover the full loss to shareholders. Based on those representations, the department, with the assistance of a forensic accounting expert, conducted an independent inability-to-pay analysis, which determined that the payment of more than $5 million was reasonably likely to threaten the continued viability of IRB, which in turn may expose the company’s shareholders to a further risk of loss.
Passos has been indicted and is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.
The USPIS is investigating the case.
Trial Attorney Kate McCarthy of the Criminal Division’s Fraud Section is handling the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. To learn more about victims’ rights, please visit: www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. Victims can find case updates and additional information at www.justice.gov/criminal-vns/united-states-v-fernando-passos.
Gree U.S. Subsidiary Sentenced for Failure to Report Dangerous DehumidifiersRead the Press Release
Gree USA, Inc., the U.S. subsidiary of a Chinese appliance company, was sentenced today to pay a $500,000 criminal fine after pleading guilty to failing to notify the U.S. Consumer Product Safety Commission (CPSC) that millions of dehumidifiers it sold to U.S. consumers were defective and could catch fire.
Gree USA pleaded guilty to a felony violation of the Consumer Product Safety Act (CPSA). The fine, along with provisions to pay restitution to victims, was part of a $91 million resolution with three related Gree companies that represents the first corporate criminal enforcement action ever brought under the CPSA.
Gree USA, based in City of Industry, California, and a U.S. subsidiary of Hong Kong Gree Electric Appliances Sales Co., Ltd. (Gree Hong Kong), entered into a plea agreement in connection with a criminal information filed in 2021 in the U.S. District Court for the Central District of California. The criminal information filed along with the plea agreement charges Gree USA with one felony count under the CPSA of willfully failing to report consumer product safety information to the CPSC.
Gree Electric Appliances, Inc. of Zhuhai (Gree Zhuhai), a global appliance manufacturer headquartered in Zhuhai, China, and Gree Hong Kong entered into a deferred prosecution agreement (DPA) in connection with the same criminal information. Under the terms of the DPA, Gree Zhuhai and Gree Hong Kong agreed to a total monetary penalty of $91 million and also agreed to provide restitution for any uncompensated victims of fires caused by the companies’ defective dehumidifiers. Consistent with Justice Department policy, the DPA with Gree Zhuhai and Gree Hong Kong credits the Gree Companies’ earlier payment of $15.45 million in civil penalties to the CPSC against the agreed-upon $91 million total monetary penalty.
According to court filings, Gree Zhuhai, Gree Hong Kong and Gree USA (collectively, the Gree Companies) knew their dehumidifiers were defective, failed to meet applicable safety standards, and could catch fire, but the companies failed to report that information to the CPSC for months. The companies reported and recalled the dehumidifiers only after consumer complaints of fires and resulting harm continued to mount.
The Consumer Protection Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the Central District of California previously indicted Charley Loh, 64, of Arcadia, California, and Simon Chu, 67, of Chino Hills, California – the Chief Executive Officer and Chief Administrative Officer of Gree USA, respectively – with felony CPSA and wire fraud charges for their alleged roles in the failure to report the defective dehumidifiers. Loh and Chu have pleaded not guilty and are scheduled for trial on Nov. 7, 2023, in Los Angeles. An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
“Today’s sentencing of Gree USA is part of the Department of Justice’s ongoing efforts to hold accountable companies and executives that purposefully delay reporting dangerous consumer products to the CPSC,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department will continue to work closely with the CPSC to ensure consumers’ safety.”
“This corporation endangered the safety of American consumers by failing to promptly report a known problem with their defective humidifiers,” said U.S. Attorney Martin Estrada for the Central District of California. “Fortunately, authorities were able to stop this practice before Gree USA, Inc. could cause greater harm. This historic case underscores our commitment to protect the public from dangerous products that could cause consumers real harm and to hold accountable corporate entities who knowing violate our laws in promotion of their greed.”
“Today’s sentencing should serve as an example that companies will be held to account when they put profits before consumer safety,” said Chair Alex Hoehn-Saric of the CPSC. “The egregious behavior detailed in this case cannot be tolerated, and we are grateful for the support of the Department of Justice in bringing this company to justice and keeping consumers safe.”
“Homeland Security Investigations (HSI) works tirelessly to protect the American consumer from health and safety risks posed by sub-standard products entering the United States,” said Acting Special Agent in Charge Eddy Wang of HSI Los Angeles. “HSI, the Department of Justice, and the Consumer Product Safety Commission will continue to hold corporations accountable for placing profits above people.”
As part of the Gree USA plea agreement and the Gree Zhuhai and Gree Hong Kong DPA, the Gree Companies admitted that, between 2007 and 2013, they sold in the United States more than two million dehumidifiers manufactured by Gree Zhuhai and imported by Gree Hong Kong. In September 2012, employees of the Gree Companies, including high-level executives, learned that the Gree dehumidifiers had defects that could cause them to overheat and catch fire, and that consumers had reported fires caused by the dehumidifiers. Those same employees also knew of the obligation to report dangerous consumer products to the CPSC. Despite this knowledge, Gree USA continued to sell the defective dehumidifiers in the United States for at least another six months. The Gree Companies delayed reporting knowledge of the fires to the CPSC for approximately six months, and did not report the defects in the dehumidifiers for approximately nine months. Ultimately, Gree Zhuhai recalled the defective dehumidifiers almost a year after learning about the products’ dangerous defects.
HSI investigated this case.
Assistant Director Allan Gordus and Trial Attorneys Natalie Sanders and Maryann McGuire of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Joseph Johns for the Central District of California prosecuted the case with the assistance of Patricia Vieira of the CPSC’s Office of General Counsel.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Gree Subsidiary Sentenced for Failure to Report Dangerous DehumidifiersRead the Press Release
LOS ANGELES – The City of Industry-based subsidiary of a Chinese appliance company was sentenced today to pay a $500,000 criminal fine after pleading guilty to failing to notify the U.S. Consumer Product Safety Commission (CPSC) that millions of dehumidifiers it sold to domestic consumers were defective and could catch fire.
Gree USA Inc. was sentenced this morning after pleading guilty in January to a felony violation of the Consumer Product Safety Act (CPSA). The fine, along with provisions to pay restitution to victims, was part of a $91 million resolution with three related Gree companies that represents the first corporate criminal enforcement action ever brought under the CPSA.
Gree USA, a U.S. subsidiary of Hong Kong Gree Electric Appliances Sales Co., Ltd. (Gree Hong Kong), entered into a plea agreement in connection with a criminal information filed in 2021. Gree USA pleaded guilty to one felony count under the CPSA of willfully failing to report consumer product safety information to the CPSC.
Gree Electric Appliances, Inc. of Zhuhai (Gree Zhuhai), a global appliance manufacturer headquartered in Zhuhai, China, and Gree Hong Kong entered into a deferred prosecution agreement (DPA) in connection with the same case. Under the terms of the DPA, Gree Zhuhai and Gree Hong Kong agreed to a total monetary penalty of $91 million and also agreed to provide restitution for any uncompensated victims of fires caused by the companies’ defective dehumidifiers. Consistent with Justice Department policy, the DPA with Gree Zhuhai and Gree Hong Kong credits the Gree Companies’ earlier payment of $15.45 million in civil penalties to the CPSC against the agreed-upon $91 million total monetary penalty.
According to court filings, Gree Zhuhai, Gree Hong Kong and Gree USA (collectively, the Gree Companies) knew their dehumidifiers were defective, failed to meet applicable safety standards, and could catch fire, but the companies failed to report that information to the CPSC for months. The companies reported and recalled the dehumidifiers only after consumer complaints of fires and resulting harm continued to mount.
“This corporation endangered the safety of American consumers by failing to promptly report a known problem with their defective humidifiers,” said United States Attorney Martin Estrada. “Fortunately, authorities were able to stop this practice before Gree USA could cause greater harm. This historic case underscores our commitment to protect the public from dangerous products that could cause consumers real harm and to hold accountable corporate entities who knowing violate our laws in promotion of their greed.”
“Homeland Security Investigations (HSI) works tirelessly to protect the American consumer from health and safety risks posed by sub-standard products entering the United States,” said HSI Los Angeles Acting Special in Charge Eddy Wang. “HSI, the Department of Justice, and the Consumer Protection Safety Commission will continue to hold corporations accountable for placing profits above people.”
As part of the Gree USA plea agreement and the Gree Zhuhai and Gree Hong Kong DPA, the Gree Companies admitted that, between 2007 and 2013, they sold in the United States more than two million dehumidifiers manufactured by Gree Zhuhai and imported by Gree Hong Kong. In September 2012, employees of the Gree Companies, including high-level executives, learned that the Gree dehumidifiers had defects that could cause them to overheat and catch fire, and that consumers had reported fires caused by the dehumidifiers. Those same employees also knew of the obligation to report dangerous consumer products to the CPSC. Despite this knowledge, Gree USA continued to sell the defective dehumidifiers in the United States for at least another six months. The Gree Companies delayed reporting knowledge of the fires to the CPSC for approximately six months and did not report the defects in the dehumidifiers for approximately nine months. Ultimately, Gree Zhuhai recalled the defective dehumidifiers almost a year after learning about the products’ dangerous defects.
“Today’s sentencing of Gree USA is part of the Department of Justice’s ongoing efforts to hold accountable companies and executives that purposefully delay reporting dangerous consumer products to the CPSC,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department will continue to work closely with the CPSC to ensure consumers’ safety.”
“Today’s sentencing should serve as an example that companies will be held to account when they put profits before consumer safety,” said Chair Alex Hoehn-Saric of the CPSC. “The egregious behavior detailed in this case cannot be tolerated, and we are grateful for the support of the Department of Justice in bringing this company to justice and keeping consumers safe.”
The United States Attorney’s Office and the Consumer Protection Branch of the Justice Department’s Civil Division previously indicted Charley Loh, 64, of Arcadia, and Simon Chu, 67, of Chino Hills – respectively, the CEO and chief administrative officer of Gree USA – with felony CPSA and wire fraud charges for their alleged roles in the failure to report the defective dehumidifiers. Loh and Chu have pleaded not guilty and are scheduled for trial on November 7 in Los Angeles.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
HSI investigated this case.
This matter was prosecuted by Assistant U.S. Attorney Joseph Johns of the Environmental and Community Safety Crimes Section, along with Assistant Director Allan Gordus and Trial Attorneys Natalie Sanders and Maryann McGuire of the Justice Department’s Consumer Protection Branch. Patricia Vieira of the CPSC’s Office of General Counsel provided substantial assistance.
Georgia Doctor Pleads Guilty to Distributing Misbranded Weight Loss Drug ProductRead the Press Release
A Georgia physician pleaded guilty today to charges related to the sale of a purported weight loss drug product that contained human chorionic gonadotropin, or HCG.
Dr. Audrey Arona, 64, of Gainesville, Georgia, pleaded guilty to causing the introduction into interstate commerce of a misbranded drug product containing HCG and marketed under the name “Releana.” Pursuant to a plea agreement, Magistrate Judge J. Clay Fuller of the United States District Court for the Northern District of Georgia ordered Dr. Arona to forfeit approximately $65,000.
HCG is a hormone produced by the human placenta. The U.S. Food and Drug Administration (FDA) has approved certain injectable HCG drug products for the treatment of some cases of female infertility and for hormone treatment in males. But the FDA has never approved any oral or sublingual HCG drug products for any use, and the FDA has never approved any HCG drug product for weight loss. In fact, FDA has specifically warned consumers to avoid HCG weight-loss products, advising, “If you have HCG products for weight loss, quit using it, throw it out, and stop following the dieting instructions.”
“Doctors who distribute drugs must comply with federal law designed to ensure these products are safe and effective,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department will continue to work closely with our law enforcement partners to stop the distribution of misbranded HCG drugs and other misbranded drugs, including through criminal enforcement where appropriate.”
“Misbranded prescription drugs can present a serious health risk to those who buy and use them. The drugs may contain unknown ingredients and may be made under unknown conditions,” said Special Agent in Charge Charles L. Grinstead of the FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to investigate and bring to justice those who traffic in misbranded prescription drugs.”
According to court documents, Dr. Arona admitted to selling a sublingually administered HCG-for-weight-loss drug product to patients around the country. Dr. Arona further admitted that she represented to patients that the HCG-for-weight-loss drug product was FDA-approved and that it could assist with weight loss.
Dr. Arona was the third defendant to plead guilty in connection with the marketing and sale of Releana. In September 2022, Hoschton, Georgia, resident Maurice Bailey also pleaded guilty to causing the introduction into interstate commerce of a misbranded drug product containing HCG. According to court documents, Bailey admitted to preparing the Releana sold by Dr. Arona in a facility that was not properly registered with FDA, and to inaccurately labelling that Releana. In August 2021, Colorado resident Sarah Alberg pleaded guilty to causing the introduction into interstate commerce of a misbranded drug product containing HCG, with the intent to mislead or defraud. According to court documents, Alberg also distributed Releana, and she admitted to smuggling HCG into the United States from India and distributing HCG using bottles and supplies exposed to rodent droppings.
The FDA Office of Criminal Investigations investigated the cases.
Senior Litigation Counsel Patrick Runkle and Trial Attorney Michael Wadden of the Justice Department’s Consumer Protection Branch prosecuted the cases against Dr. Arona and Bailey, with assistance from Assistant U.S. Attorney Jennifer Keen for the Northern District of Georgia.
For more information about the enforcement efforts of the Consumer Protection Branch visit the Branch’s website at http://www.justice.gov/civil/consumer-protection-branch
Former Public Official and California Contractor Sentenced for Bid Rigging and BriberyRead the Press Release
A former Caltrans contract manager and a former contractor were sentenced today in the U.S. District Court for the Eastern District of California in Sacramento for their roles in a bid-rigging and bribery scheme involving Caltrans improvement and repair contracts.
Choon Foo “Keith” Yong, the former Caltrans contract manager, was sentenced to 49 months’ imprisonment and ordered to pay $984,699.53 in restitution. According to a plea agreement filed on April 11, 2022, Yong and his co-conspirators engaged in a conspiracy, from early 2015 through late 2019, to thwart the competitive bidding process for Caltrans contracts to ensure that companies controlled by Yong’s co-conspirators submitted the winning bid and would be awarded the contract. Yong also pleaded guilty for accepting bribes while working for Caltrans, a California state agency that receives significant federal funding. Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits that Yong received neared $1 million.
William D. Opp, the former contractor, was sentenced to 45 months’ imprisonment and ordered to pay $797,940.23 in restitution. According to a plea agreement filed on Oct. 3, 2022, Opp engaged in the same conspiracy, from early 2015 through at least as late as August 2018. As part of the conspiracy, Opp formed a separate construction company, with his wife as the nominal president, to submit sham bids on Caltrans contracts. During his participation in the conspiracy, Opp and co-conspirators provided nearly $800,000 in cash bribes and other benefits to Yong.
Yong and Opp are the second and third co-conspirators to be sentenced in the case. On April 17, 2023, former construction company owner Bill R. Miller was sentenced to 78 months’ imprisonment and ordered to pay nearly $1 million in restitution.
“These criminals – including a state employee who sought sales commissions for his role in the bid-rigging scheme – put greed and personal gain ahead of the public trust and are being punished accordingly,” said Director Daniel Glad of the Justice Department’s Procurement Collusion Strike Force (PCSF). “The Antitrust Division and our PCSF partners are on the lookout for those that try to cheat on government contracts.”
“A former Caltrans employee and a contractor have been sentenced today for a conspiracy that cheated a state agency out of taxpayer funds and that, if left unchecked, could threaten to undermine public confidence in the proper functioning of government institutions,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “The defendants’ abuse of public trust and the length and breadth of the criminal conduct fully warrant today’s sentences. Bribes have no place in government contracting.”
“All government employees are expected to conduct businesses in accordance with both law and policy to ensure the integrity of those transactions and maintain public trust in the agencies they represent,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “No government official should put personal gain ahead of the needs of the communities they represent. The FBI stands ever ready to identify, investigate, and disrupt public corruption to ensure the American public’s trust in the institutions designed to serve and protect them is maintained.”
Today’s sentencing is the result of a joint investigation that was conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, and the FBI’s Sacramento Field Office as part of the Justice Department’s Procurement Collusion Strike Force (PCSF).
Trial Attorneys Christopher J. Carlberg and Tai S. Milder and Assistant U.S. Attorney Lee S. Bickley prosecuted the case.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government — federal, state and local. To contact the Procurement Collusion Strike Force, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to construction or infrastructure, go to www.justice.gov/procurement-collusion-strike-force.
Former Public Official and California Contractor Sentenced for Bid Rigging and BriberyRead the Press Release
A former Caltrans contract manager and a former contractor were sentenced today in the U.S. District Court for the Eastern District of California in Sacramento for their roles in a bid-rigging and bribery scheme involving Caltrans improvement and repair contracts.
Choon Foo “Keith” Yong, the former Caltrans contract manager, was sentenced to 49 months’ imprisonment and ordered to pay $984,699.53 in restitution. According to a plea agreement filed on April 11, 2022, Yong and his co-conspirators engaged in a conspiracy, from early 2015 through late 2019, to thwart the competitive bidding process for Caltrans contracts to ensure that companies controlled by Yong’s co-conspirators submitted the winning bid and would be awarded the contract. Yong also pleaded guilty for accepting bribes while working for Caltrans, a California state agency that receives significant federal funding. Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits that Yong received neared $1 million.
William D. Opp, the former contractor, was sentenced to 45 months’ imprisonment and ordered to pay $797,940.23 in restitution. According to a plea agreement filed on Oct. 3, 2022, Opp engaged in the same conspiracy, from early 2015 through at least as late as August 2018. As part of the conspiracy, Opp formed a separate construction company, with his wife as the nominal president, to submit sham bids on Caltrans contracts. During his participation in the conspiracy, Opp and co-conspirators provided nearly $800,000 in cash bribes and other benefits to Yong.
Yong and Opp are the second and third co-conspirators to be sentenced in the case. On April 17, 2023, former construction company owner Bill R. Miller was sentenced to 78 months’ imprisonment and ordered to pay nearly $1 million in restitution.
“These criminals – including a state employee who sought sales commissions for his role in the bid-rigging scheme – put greed and personal gain ahead of the public trust and are being punished accordingly,” said Director Daniel Glad of the Justice Department’s Procurement Collusion Strike Force (PCSF). “The Antitrust Division and our PCSF partners are on the lookout for those that try to cheat on government contracts.”
“A former Caltrans employee and a contractor have been sentenced today for a conspiracy that cheated a state agency out of taxpayer funds and that, if left unchecked, could threaten to undermine public confidence in the proper functioning of government institutions,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “The defendants’ abuse of public trust and the length and breadth of the criminal conduct fully warrant today’s sentences. Bribes have no place in government contracting.”
“All government employees are expected to conduct businesses in accordance with both law and policy to ensure the integrity of those transactions and maintain public trust in the agencies they represent,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “No government official should put personal gain ahead of the needs of the communities they represent. The FBI stands ever ready to identify, investigate, and disrupt public corruption to ensure the American public’s trust in the institutions designed to serve and protect them is maintained.”
Today’s sentencing is the result of a joint investigation that was conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, and the FBI’s Sacramento Field Office as part of the Justice Department’s Procurement Collusion Strike Force (PCSF).
Trial Attorneys Christopher J. Carlberg and Tai S. Milder and Assistant U.S. Attorney Lee S. Bickley prosecuted the case.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government — federal, state and local. To contact the Procurement Collusion Strike Force, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to construction or infrastructure, go to www.justice.gov/procurement-collusion-strike-force.
Former Postal Service Mail Carrier Sentenced to 15 Months in Prison for Stealing from Her Mail Route Debit Cards Containing Public BenefitsRead the Press Release
LOS ANGELES – A former United States Postal Service (USPS) mail carrier was sentenced today to 15 months in federal prison for her role in a scheme that defrauded banks out of more than $200,000 via the theft of debit cards containing unemployment insurance and other benefits from her mail route and giving them to a co-schemer in exchange for cash payments and gifts.
Toya Toshell Hunter, 45, of South Los Angeles, was sentenced by United States District Judge John F. Walter, who also ordered her to pay $206,212 in restitution.
Hunter pleaded guilty in December 2022 to one count of bank fraud.
From at least August 2015 to May 2020, Hunter schemed to defraud Bank of America by using her position as a USPS mail carrier to steal mail containing California Employment Development Department (EDD) debit cards that contained unemployment insurances benefits. Hunter also stole debit cards containing Economic Impact Payments for federally issued monetary relief because of the COVID-19 pandemic, United States Treasury checks, and other mail containing personal identifying information related to victims assigned to Hunter’s mail route.
Hunter would then give the stolen EDD and other cards to co-defendant Michalea Latise Barksdale, a.k.a. “Miichii Bee,” 34, of Corona, who then activated and fraudulently used them. Hunter provided Barksdale the stolen debit cards in exchange for future payments and gifts.
During the scheme, Hunter helped Barksdale make fraudulent and unauthorized cash withdrawals from 68 separate victims’ accounts and stole approximately $204,812 from Bank of America.
In July 2021, Hunter stole from the mail and fraudulently activated a stolen EIP card belonging to a victim. Hunter then used this card to make fraudulent purchases and cash withdrawals from ATMs and stole approximately $1,400 from Fiserv, a Wisconsin-based financial institution.
“[Hunter]…abused her position by stealing access devices, checks, and personal identifying information from mail assigned to her mail routes,” prosecutors argued in a sentencing memorandum. “These access devices were cards intended for people who were struggling financially: those that were unemployed or impacted by the COVID-19 pandemic.”
Barksdale pleaded guilty on March 6 to one count of bank fraud and one count of possession of 15 or more unauthorized access devices. She has agreed to forfeit her ill-gotten gains from the scheme, including 103 EDD debit cards, 78 EIP cards and four iPhones. Barksdale will face up to 40 years in federal prison at her July 10 sentencing hearing.
The United States Postal Inspection Service; United States Postal Service Office, of Inspector General; and the United States Treasury Inspector General for Tax Administration investigated this matter.
Assistant United States Attorney Kyle W. Kahan of the General Crimes Section is prosecuting this case.
Former Physician to Pay More than $1.1 Million to Resolve Allegations He Performed Medically Unnecessary ProceduresRead the Press Release
Spokane, WA – Former physician Jason A. Dreyer has agreed to pay $1,174,849 to resolve allegations that he performed medically unnecessary neurosurgery procedures that Dreyer caused to be billed to Medicare, Medicaid, and other federal health care programs, announced Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. The joint settlement announced today is between Dreyer, the United States, and the State of Washington, which administers Washington’s Medicaid program using a combination of state and federal funding.
Between 2013 and 2018, Dreyer was employed as a neurosurgeon at Providence St. Mary’s Medical Center, a hospital in Walla Walla, Washington, owned and operated by Providence Health & Services Washington (Providence). In April 2022, United States Attorney Waldref announced that Providence agreed to pay $22,690,458 to resolve allegations that it fraudulently billed Medicare, Medicaid, and other federal health care programs for medically unnecessary neurosurgery procedures performed by Dreyer and another former Providence neurosurgeon. In the Providence settlement agreement, Providence admitted that, while Dreyer was employed at Providence St. Mary’s, Providence received concerns about Dreyer, including concerns from medical staff that Dreyer was endangering the safety of his patients. As admitted in the Providence settlement agreement, notwithstanding these concerns, Providence permitted Dreyer to resign without reporting him to the National Practitioner Data Bank or the Washington State Department of Health.
“Ensuring that surgical procedures are medically appropriate and properly performed is critical to building safe and strong communities here in the Eastern District of Washington,” said United States Attorney Waldref. “Patients with spinal injuries and back pain deserve top-notch care from a doctor who puts patients and their safety first. Significantly, as part of the settlement, Dr. Dreyer has agreed to voluntarily exclude himself from federal health care programs nationwide for at least nine years. This settlement will therefore make sure that patients, in Eastern Washington and nationwide, are protected from medically unnecessary and unsafe procedures for many years to come.”
After resigning from Providence, between May 2019 and November 2021, Dreyer was employed by Multicare Health Systems (Multicare) to provide neurosurgery services at Deaconess Hospital and Multicare Rockwood Clinic, both in Spokane, Washington. Both Providence and Multicare paid Dreyer based on a productivity metric through which he was paid more for performing more surgeries and for surgical procedures of greater complexity. The settlement announced today resolved allegations that, while employed by Multicare, Dreyer caused false and fraudulent billing to Medicare, Medicaid, and other federal health care programs by performing medically unnecessary procedures that did not meet requirements for federal and state reimbursement.
As part of the settlement, Dreyer entered into an exclusion agreement with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). As part of this agreement, Dreyer agreed to be excluded from participating in Medicare, Medicaid, and other federal health care programs nationwide for at least nine years before he can request reinstatement from HHS.
"Providers have a responsibility to ensure that patient needs and safety, not illegitimate personal financial gain, drive medical decisions," said Steven J. Ryan, Special Agent in Charge at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "As this settlement demonstrates, HHS-OIG is committed to protecting federal health care programs from fraudulent billing and ensuring that providers focus on providing medically necessary care."
"The announced settlement and exclusion agreements are constructive steps in holding Dr. Dreyer responsible for repeatedly violating his patients' trust by valuing financial gain more than patient care and safety," said Bryan D. Denny, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. "DCIS remains committed to working with its law enforcement partners in protecting the integrity of the DoD's TRICARE healthcare program, especially in situations involving allegations of potential patient harm."
“VA’s Community Care programs provide veterans and their families the ability to obtain critical healthcare services from providers within their own communities,” said Special Agent in Charge Jason Root of the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “This civil settlement reinforces the VA OIG’s commitment to safeguarding the integrity of VA’s healthcare programs and operations and preserving taxpayer funds."
“I appreciate our strong partnership with U.S. Attorney Waldref’s office,” said Washington State Attorney General Bob Ferguson. “I look forward to continuing our work together to protect Medicaid dollars for those who need them.”
United States Attorney Waldref continued “I want to express special appreciation for our close collaboration and partnership with the Washington Medicaid Fraud Control Division and for the exceptional investigative work performed by HHS-OIG, Office of Personnel Management OIG, Defense Criminal Investigative Service, and the Department of Veterans Affairs OIG. We will continue to work closely with our state and federal law enforcement partners to hold health care fraudsters accountable and to protect patient health and safety in the Eastern District of Washington.”
The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington; the State of Washington, Office of the Attorney General, Medicaid Fraud Control Division; the U.S. Department of Health and Human Services, Office of Inspector General, Seattle Field Office, the Defense Criminal Investigative Service, Seattle Field Office; the Office of Personnel Management, Office of Inspector General, Western Regional Office, and the United States Department of Veterans Affairs Office of Inspector General, Spokane Resident Agency. The United States Attorney’s Office would also like to express special thanks and appreciation for the logistical support provided by the Walla Walla Police Department during the investigation. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene of the Eastern District of Washington handled this matter on behalf of the United States.
final_fully_executed_dreyer_settlement_agreement.pdfFormer Contracting Officer for the Department of Defense Pleads Guilty in Conspiracy to Defraud the GovernmentRead the Press Release
BOSTON – An Uxbridge man pleaded guilty today in federal court in Boston to his role in a conspiracy to defraud the government of thousands of dollars from 2014 to 2018.
Thomas Bouchard, 60, pleaded guilty to one count of conspiracy and 10 counts of theft of government funds. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for June 26, 2023. Bouchard was arrested and charged in July 2020 along with co-defendant Chantelle Boyd.
Bouchard was the Contracting Officer in charge of the U.S. Army Natick Contracting Division, a full-service contracting organization for the Department of Defense. In 2014, Bouchard used his long-standing relationship with Evolution Enterprise, Inc., a government contractor, to allegedly have Boyd hired for a “no show” job as an assistant that specifically supported Bouchard. Boyd’s position cost the Department of Defense more than $490,000 during her time at Evolution from 2014 to 2018, during which Boyd performed little if any useful function.
Bouchard and Boyd took numerous government-funded trips, ranging in duration from two to 15 days, under the guise that they were work related. This included 31 trips to Orlando, Fla., among other locations such as Clearwater Beach, Fla., and Stafford, Va., during which Boyd allegedly performed little if any work. For many of the trips, Bouchard and Boyd stayed in the same hotel room and spent time at the pool and Disney parks – all during business hours. In order to conceal the personal nature of the trips, Bouchard altered, created and approved false travel to reimburse the Boyd for out-of-pocket expenses.On April 3, 2023, Boyd pleaded guilty to one count of conspiracy, 10 counts of theft of government funds and false declarations before the grand jury. She is scheduled to be sentenced on June 26, 2023.
The charge of conspiracy provides a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charges of theft of government funds each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph Dattoria, Special Agent in Charge of the General Services Administration Office of Inspector General; Patrick Hegarty, Special Agent in Charge of the Defense Criminal Investigative Service; and Scott Moreland, Special Agent in Charge of the Army Criminal Investigation Division Major Procurement Fraud Field Office made the announcement. Assistant U.S. Attorney Neil J. Gallagher, Jr. of Rollins’ Public Corruption & Special Prosecutions Unit is prosecuting the case.
Former Buffalo Man Pleads Guilty to COVID FraudRead the Press Release
BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Mohammad Fares, 28, formerly of Buffalo, now of Florida, who was convicted of theft of government property, was sentenced to serve to three years supervised release, perform 200 hours of community service, and pay restitution of approximately $43,000 by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Charles M. Kruly, who handled the case, stated that on May 18, 2020, Fares submitted an online application to the New York State Department of Labor for unemployment insurance benefits, stating that he did not work any day during the week of May 18, 2020; that he did not have gross earnings over $504; that his last day of work was March 21, 2020; and that his workplace had closed due to the COVID-19 pandemic. At the time, Fares co-owned a trucking company in Buffalo, for which he managed truck drivers and coordinated shipments. On June 11, 2020, Fares received $3,600 in Federal Pandemic Unemployment Compensation benefits. Every week through May 2, 2021, Fares certified to that he did not work during the prior week and had not returned to work. In doing so, Fares certified his continued eligibility for Federal Pandemic Unemployment Compensation and NYS Department of Labor unemployment benefits. During this time period, Fares continued to manage the trucking company. Fares received, in total, approximately $43,320 in unemployment benefits and Federal Pandemic Unemployment Compensation.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. It expands states’ ability to provide unemployment insurance for many workers impacted by COVID-19, including for workers who are not ordinarily eligible for benefits. The CARES Act provided for three new UI programs: Pandemic Unemployment Assistance (PUA); Federal Pandemic Unemployment Compensation (FPUC); and Pandemic Emergency Unemployment Compensation (PEUC).
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The sentencing is the result of an investigation by the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, Northeast Region, under the direction of Special Agent-in-Charge Jonathan Mellone and the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Michael Stansbury.
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Florence Man Sentenced to Ten Years in Federal Prison for Possession of Child PornographyRead the Press Release
CHARLESTON, SOUTH CAROLINA --- Tommy Rene Lee, 53, was sentenced to ten years in federal prison after pleading guilty to possession of child pornography involving a prepubescent minor.
Evidence presented to the Court showed that Lee used his personal electronic devices to possess child pornography. Lee came to the attention of law enforcement when two social networking sites reported evidence of alleged criminal activity on their servers. The IP addresses of the reports were ultimately traced to Lee. Upon Lee’s arrest, law enforcement seized electronic devices and conducted forensics examinations that found 121 images and 17 videos depicting child pornography.
The investigation also revealed that Lee had a prior conviction under North Carolina law involving second-degree exploitation of a minor.
United States District Judge Bruce Howe Hendricks sentenced Lee to 120 months and 1 day in prison, to be followed by a life term of court-ordered supervision. There is no parole in the federal system. Judge Hendricks also ordered Lee to pay $12,000 in restitution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by the Homeland Security Investigations (HSI) with assistance from the South Carolina Attorney General’s Office. Assistant U.S. Attorney Amy F. Bower is prosecuting the case.
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Five Individuals Charged in $2M Virtual Asset and Securities Manipulation SchemeRead the Press Release
An indictment was unsealed today in Miami charging two U.S. citizens and a South African national with conspiring to manipulate the market for HYDRO, a virtual asset created by the Hydrogen Technology Corporation. Two other individuals were also charged in separate charging documents for their roles in the scheme filed in the Southern District of Florida.
According to court documents, from around June 2018 through April 2019, Michael Kane, 38, of Miami; Shane Hampton, 31, of Philadelphia; and George Wolvaardt, 38, of Johannesburg, South Africa, allegedly conspired to manipulate the market for HYDRO, a token on the Ethereum blockchain platform, and defraud market participants by creating the false appearance of supply and demand for HYDRO to induce other market participants to trade at prices, quantities, and times that they otherwise would not have traded. The defendants allegedly used a trading bot to place thousands of orders that they did not intend to execute, or “spoof orders,” and thousands of orders where the bot bought and sold tokens to itself through the same account, or “wash trades.” The co-conspirators allegedly reaped $2 million in profit through their sales of HYDRO at artificially inflated prices.
As alleged in the indictment, Kane was the co-founder and CEO of Hydrogen Technology and Hampton was the Chief of Financial Engineering for the company. Wolvaardt was the Chief Technology Officer for Moonwalkers Trading Limited, a self-described “market-making” firm that purportedly designed the trading bot and was hired by Kane and Hampton to manipulate the market for HYDRO.
Relatedly, Tyler Ostern, 29, of Coos Bay, Oregon, the former CEO of Moonwalkers, and Andrew Chorlian, 29, of New York, New York, a blockchain engineer at Hydrogen Technology, were also charged for their participation in the scheme.
Kane, Hampton, and Wolvaardt are each charged with one count of conspiracy to commit securities price manipulation, one count of conspiracy to commit wire fraud, and two counts of wire fraud. If convicted, they each face a maximum penalty of five years in prison on the conspiracy to commit securities price manipulation count and 20 years in prison on each of the other charged counts. Ostern and Chorlian are each charged with one count of conspiracy to commit securities price manipulation and wire fraud. If convicted, they each face a maximum penalty of five years in prison.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Jeffrey B. Veltri of the FBI Miami Field Office made the announcement.
The FBI is investigating the case.
Trial Attorney Andrew Jaco and Assistant Chief Scott Armstrong of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eric Morales for the Southern District of Florida are prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
An indictment and information are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Firearms Trafficker Sentenced to 102 Months in Prison for Directing Straw Purchasing Conspiracy Involving over 60 FirearmsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Tykeam Markel Jackson, age 27, was sentenced on April 18, 2023, to 102 months’ imprisonment by U.S. District Court Judge Christopher C. Conner, for multiple firearms offenses related to his trafficking of over 60 firearms from Central Pennsylvania to Massachusetts.
According to United States Attorney Gerard M. Karam, between March 25 and July 26, 2020, Jackson orchestrated a scheme to obtain firearms using straw parties to purchase firearms from Cumberland, Dauphin, and Lancaster-area licensed firearms dealers. In exchange for cash from Jackson, the straw purchasers fraudulently certified to dealers that they were buying firearms for themselves, when in truth they were buying firearms for Jackson, who was a felon at the time and prohibited from purchasing or possessing firearms. Jackson then obliterated the serial numbers and transported the firearms to Massachusetts for resale.
The straw purchasing scheme led by Jackson purchased or attempted to purchase 61 firearms before ATF agents ended the operation by arresting Jackson in Massachusetts. While attempting to evade arrest, Jackson assaulted a deputized federal law enforcement officer, fled in his vehicle at speeds exceeding 100 miles per hour, and ditched a backpack containing cash, ammunition, a ghost gun, and 4 firearms with obliterated serial numbers, including 3 firearms recently purchased in Central Pennsylvania.
Jackson’s co-conspirators, Jamia Philecia Holton and Shadaya Nakeyma Jackson pleaded guilty to felonies for their roles as straw purchasers of firearms for Jackson and were sentenced to terms of probation. Jackson was separately charged, convicted, and sentenced to 77 months’ imprisonment for his assault of the officer in Massachusetts in connection with his arrest on July 27, 2020.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant U.S. Attorney Samuel S. Dalke prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Final Member of Human Smuggling Organization Sentenced for Smuggling 90 Individuals from Mexico, Guatemala, and HondurasRead the Press Release
TUCSON, Ariz. – Salvador Lopez-Vargas, 36, of Michoacan, Mexico, was sentenced last week by United States District Judge Scott H. Rash to a term of 36 months in prison, followed by three years of supervised release, for his management role in a criminal conspiracy to harbor and transport 90 undocumented non-citizens (UNCs). Lopez-Vargas pleaded guilty on December 8, 2022, to Conspiracy to Transport Illegal Aliens for Profit.
Agents from Homeland Security Investigations-Douglas conducted surveillance and discovered that UNCs were being transported to a house and an apartment in the Phoenix Metro area from various parking lots nearby. During the execution of search warrants, 51 UNCs were found in the house, and 32 UNCs were located in the apartment. As agents searched the house, Lopez-Vargas arrived driving a van and then attempted to leave. Agents stopped the van, and discovered seven UNCs were located inside the vehicle. During the investigation, several UNCs, who had traveled from Mexico, Guatemala, or Honduras, provided statements indicating they had crossed into the United States from Mexico in automobiles, and then arrived at the house or apartment to await further transportation to their final destinations in the United States. It was determined that Lopez-Vargas picked up UNCs at various locations and transported them to the apartment or the house, which were stash houses he managed as part of his role in the conspiracy.
Previously, Lopez-Vargas’s co-conspirators, Eleazar Soto-Diaz, 35, and Jesus Gabriel Villela-Duran, 28, both from Michoacan, Mexico, were each sentenced to 13 months and one day in prison for their roles in the conspiracy as supervisors of the stash houses.
This prosecution resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). The U.S. Attorney’s Office for the District of Arizona is part of JTFA, which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security, to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime.
The investigation in this case was conducted by Homeland Security Investigations-Douglas, in coordination with Homeland Security Investigations-Sells and Phoenix, Enforcement and Removal Office -Phoenix, and Customs and Border Protection’s United States Border Patrol in Tucson and Casa Grande. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-02072-TUC-SHR
RELEASE NUMBER: 2023-058_Lopez-Vargas# # #
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.Felon Pleads Guilty to Possessing A FirearmRead the Press Release
U.S. Attorney Trini E. Ross announced today that Maurice Chatman, 42, of Rochester, NY, pleaded guilty before U.S. Magistrate Judge Mark W. Pedersen to being a felon in possession of a firearm, which carries a maximum penalty of 15 years in prison, and a fine of $250,000 or both.
Assistant U.S. Attorney Charles Moynihan, who is handling the case, stated that on August 3, 2022, Rochester Police Officers responded to Post Avenue and Aberdeen Street after receiving a report of a male standing at the corner holding a gun. Officers also learned that the male was seen walking down Aberdeen Street carrying the gun. Subsequently, Chatman was observed standing in front of 91 Aberdeen Street holding a rifle. Officers went to 91 Aberdeen Street and confronted Chatman in the driveway. They observed the rifle nearby on top of a folding table. Officers arrested Chatman and seized the rifle. Chatman was previously convicted of felonies in 1997, 2004, 2011, and 2015, and is legally prohibited from possessing a firearm.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito.
Sentencing is scheduled for July 26, 2023, at 2:00 p.m. before U.S. District Judge David G. Larimer.
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Edinburg political consultant convicted of briberyRead the Press Release
McALLEN, Texas – A 52-year-old Edinburg man has entered a guilty plea to federal program bribery, announced U.S. Attorney Alamdar S. Hamdani.
Miguel A. Garza admitted his involvement in a scheme to help funnel bribe money from a McAllen-area business owner to certain officials with the City of Edinburg. In exchange, they were to award a city contract to the businessman.
“Funneling bribes damages the foundations of city governments, such as Edinburg,” said Hamdani. “Our office will be relentless in seeking justice against actors who threaten to crumble those foundations through their criminal acts.”
During the plea today, Garza admitted that during 2019 and 2020, he was acting as a political consultant on behalf of two elected officials in Edinburg. He told a local business owner he could secure votes from the officials relating to contracts the city maintained in exchange for bribe payments to the officials.
He then collected a series of payments intending to provide them to the city officials in exchange for their votes.
As part of the plea today, Garza admitted to the political payments which totaled $47,235 between approximately June 1, 2019, and March 1, 2020.
U.S. District Judge Ricardo H. Hinojosa will impose sentence July 31. At that time, Garza faces up to 10 years in prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorneys Robert L. Guerra Jr. and Arthur R. Jones are prosecuting the case.
Dubuque Fentanyl Dealer Who Referenced Overdoses During Drug Sales Sentenced to 18 Years in PrisonRead the Press Release
A two-time drug felon who possessed a firearm and sold fentanyl to drug users in Dubuque, Iowa, was sentenced today to 216 months in federal prison.
Jose Miguel Soto-Guzman, age 47, received the prison sentence after a December 6, 2022 guilty plea to distribution of a controlled substance near a protected location after having been previously convicted of a felony drug offense and possession of a firearm by a felon.
Evidence at hearings in Soto-Guzman and his co-defendant’s cases established that, between March and June 2022, Soto-Guzman supplied heroin users in the Dubuque area with fentanyl. Soto-Guzman and his co-defendant, Fallon Christina Murphy, regularly traveled to La Crosse, Wisconsin, to purchase fentanyl from Soto-Guzman’s source, which Soto-Guzman and Murphy then sold in Dubuque. During one of these trips, Soto-Guzman’s three-year-old child was present. Between March and June 2022, investigators conducted five controlled purchases from Soto‑Guzman and Murphy. The drugs purchased contained fentanyl, but some of the fentanyl was mixed with heroin and some with methamphetamine. During a drug sale, Soto-Guzman told an undercover agent that two people had overdosed the previous day. When investigators searched a residence where Soto-Guzman stayed, they located a firearm that he possessed. Soto-Guzman, a convicted felon, was also known to possess a firearm while selling controlled substances.
Soto-Guzman was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. He was sentenced to 216 months’ imprisonment. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system. Murphy was previously sentenced to 28 months’ imprisonment and 3 years of supervised release.
Soto-Guzman is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Nicole L. Nagin and Assistant United States Attorney Dan Chatham and was investigated by the Dubuque Drug Task Force as part of the Northern Iowa Heroin Initiative.
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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1022.
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DuPont and former employee sentenced for gas release that killed fourRead the Press Release
HOUSTON – E. I. du Pont de Nemours and Company Inc. (DuPont) pleaded guilty and has been sentenced for criminal negligence in connection with a 2014 accident that left four company employees dead, announced U.S. Attorney Alamdar S. Hamdani.
On Nov. 15, 2014, DuPont released approximately 24,000 pounds of a highly toxic, flammable gas called methyl mercaptan (MeSH) into the air. In addition to killing the four, the chemical release injured other DuPont employees and travelled downwind into the surrounding areas.
The company pleaded guilty today along with Kenneth Sandel, 52, Friendswood, unit operations leader of the Insecticide Business Unit (IBU) where the accident occurred.
U.S. District Judge Lee H. Rosenthal ordered DuPont to pay a $12 million penalty. The company must also serve two years of probation during which time the company must give the U.S. Probation Office full access to all of its operating locations. Judge Rosenthal also ordered Sandel to serve one year of probation. At the hearing, the court asked DuPont’s corporate representative whether the company had to publicly disclose their conviction, noting the importance of that fact.
They will also make a $4 million community service payment to the National Fish and Wildlife Foundation to address the harm they caused by funding projects that benefit air quality in and around areas adjacent to the western shores of Galveston Bay.
As a result of this case and other related civil cases tied to the explosion, DuPont will have paid a total of $19.26 million for its unlawful conduct.
“Four employees are dead because of DuPont’s criminal negligence,” said Hamdani. “The sentence imposed today sends a clear message of my office’s dedication to holding managers at industrial facilities, and the corporations that own and operate those facilities, accountable for violations of federal criminal laws; laws meant to protect the safety of workers and nearby communities.”
“The failure to follow required chemical safety procedures at Dupont’s La Porte facility resulted in the deaths of four employees,” said Acting Assistant Administrator Larry Starfield for the Environmental Protection Agency’s (EPA) Office of Enforcement and Compliance Assurance. “This case demonstrates the importance of holding chemical facilities accountable for implementing chemical safety requirements that are designed to protect workers and neighboring communities.”
DuPont is headquartered in Wilmington, Delaware, and owns chemical manufacturing plants around the world including a facility in La Porte. As part of its operations, the facility produces pesticides called Lannate and Vydate among other products.
The release of the MeSH on Nov. 15, 2014, resulted in the introduction of the pesticides into the air which travelled downwind into the city of Deer Park and beyond. In addition to killing the four employees, several others were injured.
The fatal accident occurred after an employee inadvertently left open a piping valve which caused a slushy material to block the flow of liquid MeSH into the Lannate process. To melt it, DuPont day shift employees began applying hot water to the outside of the blocked piping and opened other valves to vent MeSH gas into a waste gas system. However, the MeSH piping was still blocked at the end of the day.
As the IBU leader, Sandel was responsible for ensuring shift supervisors, operators and engineers understood and complied with government safety, health and environmental regulations. Specifically, Sandel was responsible for implementing a safety procedure at the IBU by making sure employees understood and followed the procedure’s requirements and did not release toxic chemicals inappropriately to the environment.
Sandel and other employees failed to provide sufficient instructions to the oncoming shift for how to safely clear remaining blockage. It finally cleared early the next morning, and a large volume of liquid MeSH began flowing into the waste gas system. At that time, an employee mistakenly believed the waste gas system only contained materials present during normal operations and opened valves that resulted in the release of the toxic gas.
Records indicate employees at DuPont’s LaPorte plant disregarded a federally mandated safety procedure when opening those valves on the waste system. Sandel should have known operators did not have a safe and effective way to drain the vent system and should have prevented it from happening.
As part of the pleas, DuPont and Sandel admitted to negligently releasing an extremely hazardous substance into the ambient air. The company also acknowledged negligently placing a person in imminent danger of death or serious bodily injury in violation of the federal Clean Air Act.
The IBU has since been demolished.
The charges against DuPont and Sandel are part of an EPA initiative titled Reducing Risks of Accidental Releases at Industrial and Chemical Facilities. EPA’s Criminal Investigation Division in Texas conducted the investigation with assistance from the Texas Environmental Enforcement Task Force and Texas Commission on Environmental Quality.
Assistant U.S. Attorneys (AUSA) John R. Lewis and Belinda Beek and Special AUSA Kristina Gonzales are prosecuting the case with assistance from the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
District Man Arraigned on Second Degree Child Sexual Abuse and Other ChargesRead the Press Release
WASHINGTON – Gary Jones, 35, of Washington, D.C., was arraigned today at a hearing before the Honorable Marisa Demeo on charges stemming from an incident at a public pool in August 2022.
Jones was indicted on April 19, 2023, by a grand jury in the Superior Court of the District of Columbia on two counts of second degree child sexual abuse, with aggravating circumstances; one count of attempted second degree child sexual abuse, with aggravating circumstances; and one count of misdemeanor sexual abuse of a child or minor, with aggravating circumstances.
According to a publicly available document, on August 18, 2022, at approximately 5:30 p.m., Jones entered the shower room at the Anacostia Pool. When two children entered the shower area, they observed Jones wearing underwear that exposed his genitals and rubbing his “private part” in front of them. Jones touched one child on the buttocks and attempted to touch the other child as well. The children immediately reported the incident to pool staff, who detained Jones until police arrived.
In announcing the charges, U.S. Attorney Graves and Chief Contee commended the work of those investigating the case from the Metropolitan Police Department (MPD). They also acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Veronica Vaughan and Paralegal Specialists ReShawn Johnson and Tiffany Fogle. Finally, they commended the work of Assistant U.S. Attorneys Jessica Wash, Kathleen Houck, and LaVater Massie-Banks, who are investigating and prosecuting the case.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws, and every defendant is presumed innocent until, and unless, proven guilty.
Department of Justice Commemorates National Crime Victims’ Rights WeekRead the Press Release
HAMMOND- Every April, the Justice Department’s Office for Victims of Crime (OVC) leads communities across the country in observing National Crime Victims’ Rights Week (NCVRW) to honor victims, promote their rights and recognize victim advocates. In 1981, President Ronald Reagan proclaimed the first National Crime Victims’ Rights Week to bring greater sensitivity to the needs and right of victims of crime. To observe National Crime Victims’ Rights Week , the United States Attorney’s Office for the Northern District of Indiana is co-sponsoring an Intimate Partner Violence Training on April 25, 2023 in coordination with the South Bend Police Department and the Office of Victims of Crime.
The Department of Justice and United States Attorney’s Offices observe National Crime Victims’ Rights Week nationwide by taking time to honor victims of crime and those who advocate on their behalf. According to a report from the Bureau of Justice Statistics, in 2021, there were more than 4.6 million violent victimizations and 11.7 million property crimes.
During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local, and tribal agencies host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services. On the evening of Wednesday, April 26th, a candlelight vigil will be held on the National Mall near the U.S. Capitol from 7:00pm-8:00pm EST. In recognition of this year’s theme: Survivor Voices: Elevate. Engage. Effect Change. – the vigil is an opportunity to commit to elevating and engaging survivors to lift their voices, inform policy and practice, thereby effect change. For more information on the candlelight vigil, please visit: https://ovc.ojp.gov/events.
United States Attorney Clifford D. Johnson said, “My office collaborates with federal, state, local and tribal law enforcement partners to highlight the importance of providing services at the earliest possible stage of victimization and litigation. Early intervention helps prevent further victimization and encourages victim involvement in the criminal justice system, mitigating the cycle of violence and restoring hope for the future.”
For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, please visit OVC’s website at www.ovc.gov. For ongoing updates from OVC and ideas throughout the year on how you can support victims, please subscribe to OVC’s email notifications at https://ovc.ojp.gov/subscribe/news-from-ovc.
Department of Justice Commemorates 2023 National Crime Victims’ Rights WeekRead the Press Release
DES MOINES, IA – The Department of Justice’s Office for Victims of Crime and the United States Attorney’s Office for the Southern District of Iowa join federal, state, and local 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, 2023 and features the theme, “Survivor Voices: Elevate. Engage. Effect Change,” which emphases the importance of engaging with victims of crime, learning from their lived experiences, amplifying their voices, and fostering an environment where they are heard, believed, and supported.
As part of this observance, the Southern District of Iowa recognizes the courage and bravery of victims, and the outstanding work of law enforcement, victim advocates, and community service partners throughout Iowa. Seven individuals are recognized for outstanding service to victims:
Award for Excellence in Victim Services
• United States Attorney’s Office, Southern District of Iowa, Victim Witness Specialist Charlotte Kovacs
• Family Resources/Braking Traffik Survivor Advocate Gretchen McCall
Law Enforcement Victim Service Award
• Des Moines Police Department Detective Ben Carter
• Council Bluffs Police Department Sergeant John Focht
• Altoona Police Department Detective David Lowe
• FBI Special Agent Amber Mann
• Ottumwa Police Department Investigator Jeremy Tosh“These awards proudly recognize the exceptional efforts of individuals providing assistance to federal and state victims in the Southern District of Iowa,” said United States Attorney Richard D. Westphal. “Advocacy for the rights and safety of victims is a cogent reminder of the long-term human impact of these crimes. The service of these individuals, and other state and federal victim advocates, are a vital component of our criminal justice system.”
The 2023 Award for Excellence in Victim Services is awarded to United States Attorney’s Office, Southern District of Iowa, Victim Witness Specialist Charlotte Kovacs. Kovacs provides selfless and dedicated advocacy to federal crime victims. Kovacs epitomizes the highest quality of victim advocacy in support of victims, witnesses, and their families during the investigation and prosecution of all federal crimes, and specifically human trafficking cases and fentanyl-related death cases. Kovacs’s extraordinary dedication to her profession and to the citizens of the Southern District of Iowa cannot be replicated.
The 2023 Award for Excellence in Victim Services is awarded to Family Resources/Braking Traffik Survivor Advocate Gretchen McCall. McCall has provided excellent victim services to the Davenport community and the Southern District of Iowa. McCall and her services were instrumental in a Davenport human trafficking case where, as a victim advocate, she provided the human trafficking victim with vital resources to ensure a solid foundation for the victim, before, during, and after trial. McCall’s devotion to her profession, time and time again, has proven to be an invaluable resource to the community and the victims for whom she relentlessly advocates.
The 2023 Law Enforcement Victim Service Award recognizes the performance of Des Moines Police Department Detective Ben Carter. Detective Carter showed outstanding work and unrelenting perseverance in the investigation and prosecution of Tyrone Cameron. Detective Carter’s dedication to the case began in early spring of 2022 from the death of Jeff Gillom and extended into April 2023 when Tyrone Cameron was convicted in federal court on charges related to the death of Gillom. During a year’s time, Detective Carter showed unwavering commitment to bring justice to the victim’s family and ultimately received justice by performing in his role as an investigator and as the victim’s family’s lifeline by exuding empathy and understanding with the victim’s family. Detective Carter went above and beyond in his duties for the victim’s family and for the Des Moines community, resulting in a conviction largely due to his unparalleled commitment and service.
The 2023 Law Enforcement Victim Service Award is awarded to Council Bluffs Police Department Sergeant John Focht for his support and dedication to his profession through the investigation and prosecution of several cases involving child victims. Sergeant Focht’s investigative skills were vital in the prosecution of Myron Brandon who was charged and convicted of Kidnapping and Transportation of a Minor. Sergeant Focht spent countless hours meeting with witnesses across the United States and assisted the prosecution with invaluable support during trial. Sergeant John Focht is an irreplaceable asset to the Council Bluffs community and to the people of Iowa.
The 2023 Law Enforcement Victim Service Award is awarded to Altoona Police Department Detective David Lowe for his outstanding service, commitment, and dedication to assisting victims in the Altoona community and the State of Iowa. Detective Lowe has established himself as an outstanding detective in the investigations of human trafficking and child exploitation cases by providing support to victims and witnesses. Detective Lowe has exceptional skills in communication, investigation, and prosecutorial support and exemplifies the highest order of conduct and performance in every investigation and with each victim.
The 2023 Law Enforcement Victim Service Award is awarded to FBI Special Agent Amber Mann as a fierce investigator and committed advocate for justice especially for minor victims in human trafficking and sex trafficking cases. Special Agent Mann successfully investigated and aided in the prosecution of two defendants, one convicted of Transportation of a Minor and Coercion and Enticement and one convicted of Travel with the Intent to Engage in Illicit Sexual Conduct. Both defendants preyed on children for their personal intentions. Special Agent Mann investigated the cases to the core, worked directly with the minor victims and their families, and dedicated long hours on the ultimate prosecution of two predators. Special Agent Mann is dedicated to our community and to fighting for justice for all victims.
The 2023 Law Enforcement Victim Service Award is awarded to Ottumwa Police Department Investigator Jeremy Tosh for his commitment to his work and for his relentless efforts to provide victims and witnesses of crimes with outstanding support. Investigator Tosh’s skills were put to the test during the investigation and prosecution of Nesly Mwarecheong and Bertino Weires, both of which plead guilty to forced labor crimes against three victims from the small island of Chuuk in the Federated States of Micronesia. Investigator Tosh provided constant support to the victims, despite significant obstacles with language barriers and American customs and norms. At sentencing, the victims expressed their gratitude for Investigator Tosh in their victim impact statements, proof that Investigator Tosh’s impact on the lives of victims makes him most deserving of this award.
President 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/ncvrw2022/overview.
Convicted Felon Sentenced for Crack Cocaine DistributionRead the Press Release
BOSTON – A Boston man, previously convicted of numerous state drug distribution charges, was sentenced today in federal court in Boston for distributing cocaine base (crack cocaine).
Jerry Cooper, a/k/a “Jerkz,” 30, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to seven years in prison and three years of supervised release. On Nov. 8, 2022, Cooper pleaded guilty to one count of distribution and possession with intent to distribute cocaine base.
This case arose from a series of controlled purchases of crack cocaine from Cooper, who, in September 2021, was recorded conducting a controlled purchase of crack cocaine.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement today. Assistant U.S. Attorney John T. Dawley, Jr. of the Organized Crime & Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Columbus Convicted Felon Pleads Guilty to Federal Firearms ChargeRead the Press Release
COLUMBUS, Ga. – A Columbus man with an extensive criminal history pleaded guilty to illegally possessing two pistols he tossed into the backyard of a home while fleeing deputies on foot through a residential area of the city.
Raymond Richmond, of Columbus, pleaded guilty to illegal possession of a firearm by a convicted felon before U.S. District Judge Clay Land on April 19. Richmond faces a maximum sentence of ten years in prison to be followed by at least three years of supervised release and a maximum $250,000 fine. Sentencing will occur within 90 days.
“The message is out that convicted felons caught with guns in Columbus will face federal charges, which carry stiff penalties,” said U.S. Attorney Peter D. Leary. “Columbus citizens demand a safer city; any real solution to reducing violent crime will be found with the continued cooperation of all community members working to achieve this goal.”
“The message must be resoundingly clear for convicted felons in possession of firearms in Muscogee County: We will not accept this behavior at any level,” said Muscogee County Sheriff Greg Countryman. “They must know that we will pursue them and seek to fully prosecute their crimes. The Muscogee County Sheriff’s Office stands committed to staying the course to fight for safer neighborhoods.”
“Taking illegal guns off the streets help keep communities safe. We will continue to work with our partners to investigate these types of crimes,” said GBI Director Mike Register.
“This case is another reminder that ATF remains on the frontline of preventing violent crimes along with our law enforcement partners,” said ATF Assistant Special Agent in Charge Beau Kolodka. “We will not allow residents to suffer such criminal behavior, especially that which threatens the safety of innocent civilians and law enforcement officers.”
According to court documents, on Dec. 15, 2020, a deputy with the Muscogee County Sheriff’s Office (MCSO), was in routine patrol in Columbus and observed a car without a brake light and attempted to initiate a traffic stop. The vehicle continued at a low rate of speed for several blocks but failed to stop. Near the intersection of 17th Street and Preston Drive—a residential section of the city—the vehicle slowed down and Richmond exited the front passenger seat with a black book bag and took off running.
A brief foot chase ensued, during which Richmond tossed his book bag in the backyard of a residence. Richmond was apprehended in the yard and the bookbag was located next to him in the shrubs. Inside, deputies found a .40 caliber Glock pistol with 26 rounds of ammunition, a .380 Kel-Tec pistol with five rounds of ammunition, along with crack, cocaine, pills and marijuana.
At the time of this incident, Richmond was wanted on several outstanding warrants. He has several prior felony convictions in Muscogee County, Georgia, Superior Court, including obstruction of a law enforcement officer, interference with government property and theft by taking. It is illegal for a convicted felon to possess a firearm.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Muscogee Co. Sheriff’s Office, GBI and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney Crawford Seals is prosecuting the case for the government.
Colorado Springs Man Convicted by Federal Jury for Gun and Drug CrimesRead the Press Release
DENVER -- The United States Attorney’s Office for the District of Colorado announces that a federal jury found Christopher Barron of Colorado Springs, guilty of six charges related to guns and drugs, including possession with intent to distribute a controlled substance, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a felon.
According to facts presented at a three-day trial in Denver, law enforcement executed a search warrant in January 2021, on a Lincoln Town Car registered to Barron, who was a convicted felon on parole for a weapons offense. The Lincoln Town Car was parked outside a motel in Colorado Springs. Inside the trunk of the car, investigators discovered over $18,000 in cash, a backpack that held six firearms, and approximately 349 grams of methamphetamine, in addition to heroin, fentanyl, and cocaine.
“Our office continues to prioritize gun crimes, especially when combined with drug trafficking – a truly dangerous combination,” said U.S. Attorney Cole Finegan. “We thank our law enforcement partners for their continued work making our communities safer by investigating these offenses.”
"Keeping our communities safe remains our top priority," said ATF Special Agent in Charge Brent Beavers. "We are grateful for our partnership with the Colorado Springs Police Department as it strengthens our ability to combat violent crime and carry out our unified mission.”
United States District Court Senior Judge R. Brooke Jackson presided over the jury trial, which returned guilty verdicts on April 19, 2023. The defendant is scheduled to be sentenced on June 1, 2023.
This case was investigated by the Colorado Springs Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Colorado Department of Corrections Office of Parole, and the Colorado Springs Police Department. The prosecution was handled by Assistant United States Attorneys Thomas Minser and Dan Warhola. Assistant United States Attorney Elizabeth Young handled the forfeiture.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Case No. 21-cr-00078
For more information about the U.S. Attorney's Office for the District of Colorado, visit: https://www.justice.gov/usao-co/pr
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Civil Complaint Alleges Millions of Dollars in Medicaid FraudRead the Press Release
PROVIDENCE, R.I. – The United States and the State of Rhode Island announced today that they have intervened in a civil lawsuit against Journey to Hope, Health, and Healing, Inc. and its then-CEO, Kenneth L. Richardson, Jr., filing a complaint alleging that these defendants billed the Rhode Island Medicaid program for millions of dollars for substance use disorder treatment services that the Defendants knowingly and routinely failed to provide to their patients who needed these services, and subsequently falsified records in order to make it appear that required services were being provided, according to United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
The Complaint in Intervention under the federal and Rhode Island state False Claims Acts and other theories of civil liability unsealed by a federal judge late this afternoon, lays out the governments’ allegations that Journey, despite holding itself out as a certified and accredited opioid treatment provider, routinely failed to provide treatment plans and adequate counseling for patients for whom they were providing methadone, while at the same time collecting over $15 million from the federal-and-state-administered Medicaid program during the period between January 2015 and July 2021. The complaint further alleges that in preparation for upcoming reviews by accreditation officials and other auditors, Journey personnel were instructed by management to falsify records in order to make it appear that the missing services had been provided. The United States and the State of Rhode Island allege that over half of amount claimed by Journey during this time period was false, and the government is seeking to recover up to three times the amount paid as a result of the alleged false claims, plus penalties.
As alleged in the governments’ complaint, in many cases, Medicaid beneficiaries were receiving methadone from Journey for years without any required individualized treatment plan in place, and that in some cases where plans did exist, they were not updated for years. Journey is further alleged to have failed to provide increased services or attention to patients who tested positive for illicit substances, including fentanyl, and to have maintained patient caseloads for counselors at a volume so high that it was physically impossible to offer required counselling services. Finally, the company is alleged to have altered and backdated documents in order to make it appear that updated individualized treatment plans were in place and that the required counseling sessions were occurring when, in fact, they were not.
Whistleblowers Sara Quaresma and Michael Delmonico, who are former employees of Journey, filed an action in federal court in October of 2020 under the qui tam provisions of the False Claims Act. Those provisions authorize private parties to sue on behalf of the United States and/or the State and to share a portion of any recovery; such a filing is initially made under seal. The Act permits federal and state governments to intervene and take over the lawsuit, as has occurred here, in part, by filing this complaint in intervention. The case was unsealed on Monday following the governments’ filing.
The case is being litigated in U.S. District Court by Assistant U.S. Attorneys Bethany N. Wong and Kevin Love Hubbard, and Rhode Special Assistant Attorney General Genevieve M. Allaire Johnson.
The matter has been investigated by the Office of Inspector General for the Department of Health and Human Services.
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Chester County Former CFO Indicted on Charges of Tax FraudRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that David L. Shull, 68, of Largo, FL (formerly of West Chester, PA) was charged by Indictment with six counts of failure to pay over employment taxes for a Chester County adult day care facility from 2013 through 2017, and failing to account for employment taxes owed in the same years.
The Indictment alleges that, as the Controller/Chief Financial Officer of the care facility, Shull was legally obligated to withhold payroll taxes from wages paid to the company’s employees and was responsible to pay over these taxes to the IRS. The Indictment also alleges that Shull was required to pay over the care facility’s contributions for Social Security and Medicare in amounts matching the amounts withheld from its employees’ pay for those purposes. Shull was also required to file, following the end of each calendar quarter, an Employer’s Quarterly Federal Income Tax Return (Form 941), setting forth the total amount of wages and other compensation subject to withholding, the total amount of income tax withheld, and the total amount of Social Security and Medicare taxes due to the IRS. The Indictment alleges that from 2005 through 2017, Shull caused the care facility to pay wages to its employees. The Indictment further alleges that during this same period, Shull also caused the care facility to withhold trust fund taxes from those wages and to issue Wage and Tax Statements (Form W-2) to the employees indicating that trust fund taxes had been withheld from those wages and implying that those trust fund taxes had been paid over to the IRS. The Indictment alleges that beginning in or about 2013 through in or about 2017, this was a false representation, as the withheld tax amounts were not paid over to the IRS, neither were the care facility’s employer contributions paid over during this time period. According to the Indictment, Shull caused some amounts to be paid to the IRS in 2013 and 2014, but this was insufficient to cover tax debts and penalties.
The Indictment further alleges that from 2013 through 2017, Shull caused the care facility to file only one Form 941, for the second quarter of 2013, despite the fact that during this period, the care facility had approximately 53-67 employees.
If convicted, the defendant faces a maximum possible sentence of 30 years in prison and a $1,500,000 fine. The defendant may also be responsible for the taxes due, in addition to the payment of penalties to the Internal Revenue Service.
The case was investigated by the Internal Revenue Service, and is being prosecuted by Assistant United States Attorney Angella Middleton.
Castine Man Pleads Guilty to Sending Obscene Images to Minor, Attempting to Possess Sexually Explicit Images of Minor, Obstructing InvestigationRead the Press Release
BANGOR, Maine: A Castine man pleaded guilty in U.S. District Court in Bangor today to attempted possession of child sexual abuse material, transfer of obscene material to a minor and obstruction of a federal investigation.
According to court records, in late July and early August 2018, Nicholas Wood, 26, used Snapchat to send a series of obscene images of himself to a child under the age of 16. Wood attempted to manipulate the victim into engaging in sex acts with him and sending him sexually explicit images. After being informed by federal agents that they were investigating the use of his Snapchat account to send obscene images to minors, Wood deleted the application and associated data from his phone to prevent its use in the investigation.
Wood faces up to 10 years in prison and a $250,000 fine on both the attempted possession of child pornography charge and the transfer of obscene material to a minor charge. He faces up to 20 years in prison and a $250,000 fine for obstruction. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Homeland Security Investigations investigated the case.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer re-victimization every time the images are viewed. File a report with the National Center for Missing & Exploited Children at https://report.cybertip.org/ or 1-800-843-5678. If you are in Maine and you or someone you know has been sexually assaulted or abused, you can get help by calling the free, private 24-hour statewide sexual assault helpline at 1-800-871-7741.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’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, visit www.justice.gov/psc.
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Canadian Woman Convicted for Her Role in a Large-Scale International Fentanyl Trafficking Operation, Investigated Under “Operation Denial”Read the Press Release
FARGO –United States Attorney Mac Schneider, District of North Dakota, announced that Marie Um, 42, from Montreal, Québec Canada, was found guilty for the charges of conspiracy to possess with intent to distribute and distribute controlled substances and controlled substance analogues resulting in serious bodily injury and death; conspiracy to import controlled substances and controlled substance analogues resulting in serious bodily injury and death; and international money laundering conspiracy.
On April 11, 2023, the trial of Marie Um commenced, in Fargo, North Dakota. Marie Um was part of an organization that was receiving fentanyl and fentanyl analogues from China and distributing them to the United States and Canada. After 2 weeks of trial and 3 ½ days of deliberation, the jury found Marie Um guilty of conspiracy to distribute and import controlled substances into the United States and money laundering conspiracy. The jury found that 9 overdoses (4 deaths and 5 serious bodily injuries) were reasonably foreseeable to her.
A sentence date has not yet been scheduled.
This case is part of “Operation Denial,” an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and fentanyl analogues and was significantly aided by the national and international coordination led by the multi-agency Special Operations Division (S.O.D.) near Washington, DC, as part of “Operation Deadly Merchant.” The investigation started in North Dakota, on January 3, 2015, with the overdose death in Grand Forks, ND, of Bailey Henke.
Operation Denial has led to thirty-one (31) defendants charged in North Dakota and three (3) defendants charged in Oregon. The investigation has resulted in nearly $1 million in cash and property forfeited from members of the organization.
In 2021, three Canadian nationals, including Marie Um, were extradited from Canada to the United States. The defendants were detained awaiting trial scheduled in Fargo. On August 31, 2021, the U.S. Department of State offered a reward of up to $5 million for information leading to the arrest and/or conviction of People’s Republic of China (PRC) national Jian Zhang, a fugitive in this transnational investigation.
This case was investigated by U.S. Immigration and Customs Enforcement -Homeland Security Investigations; North Dakota Bureau of Criminal Investigation; U.S. Drug Enforcement Administration; U.S. Postal Inspection Service; Grand Forks Narcotics Task Force; Royal Canadian Mounted Police; Portland Oregon Police Bureau – Drugs and Vice Division; Portland HIDTA Interdiction Task Force; Oregon State Police; and Grand Forks Police Department. The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition of the three Canadian nationals.
The prosecutor for this case was Assistant U.S. Attorney Christopher C. Myers, District of North Dakota.
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Cabell County Woman Sentenced for Federal Fraud CrimesRead the Press Release
HUNTINGTON, W.Va. – Tiffani Meeks, 38, of Barboursville, was sentenced today to three years in prison, to be followed by four years of supervised release, for committing wire fraud on three separate occasions. Meeks was also ordered to pay $121,841.60 in restitution.
According to court documents and statements made in court, from August 1, 2019, through March 9, 2021, Meeks worked as a bookkeeper at a Cabell County business. Her duties included paying bills, monitoring credit and bank statements, maintaining accurate accounting records, and providing those records to the company’s owners upon request. Meeks pleaded guilty to using company credit cards not issued to her to make three unauthorized personal online purchases totaling $7,329.39 between February 19, 2020, and November 3, 2020.
Meeks further admitted that her unauthorized personal online purchases with the company credit cards totaled at least $121,841.60 between February 12, 2020, and June 18, 2021. Meeks made at least $6,862.83 of the unauthorized online purchases after she was fired by the company on March 9, 2021. In an effort to conceal her criminal conduct, Meeks had the unauthorized purchases shipped to her residence, mislabeled them as legitimate payments in company records, and withheld pages listing them before providing those records to the owners.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Office.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys Ryan A. Keefe and Kristin F. Scott prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-119.
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Bureau of Indian Affairs, Drug Enforcement Administration, and Local Drug Task Force Make Substantial Drug Seizures in Rural WashingtonRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that the Bureau of Indian Affairs Division of Drug Enforcement (“BIA”), the Drug Enforcement Administration (“DEA”), the North Central Washington Narcotics Task Force, and other Federal, State, Local, and Tribal law enforcement, executed a series of federal search warrants at a number of residential locations in rural Okanogan County, near Oroville, Washington, seizing more than 100 pounds of illegal controlled substances and multiple firearms.
The drugs were seized on April 19, 2023, as part of an investigation into the trafficking of multiple-pound quantities of dangerous controlled substances, including fentanyl-laced pills, methamphetamine, heroin, and cocaine. In total, the BIA, DEA, and their law enforcement partners seized approximately 161,000 fentanyl-laced pills (to include Mexi-blues and rainbow-colored pills), approximately 80 pounds of methamphetamine, approximately 6 pounds of heroin, and more than 2 pounds of cocaine. The BIA, DEA, and their partners also seized approximately 12 firearms. A significant portion of the drugs seized were believed to be destined for the Confederated Tribes of the Colville Reservation, as well as for other Native American communities and surrounding areas in Washington and Montana.
According to court documents, several individuals have been charged in connection with the investigation. On April 18, 2023, Erubey Arciga Medrano, Luis Esquivel-Balonos, Chad Winston Vanatta, Emily Wisdom, and Jeremy Wright were indicted by a federal grand jury for the Eastern District of Washington for Conspiracy to Distribute 50 Grams or More of Actual (Pure) Methamphetamine, and 400 Grams or More of Fentanyl, as well as other related drug-trafficking charges.
U.S. Attorney Waldref commended the joint efforts of law enforcement for removing such a large quantity of illegal drugs from the community. U.S. Attorney Waldref stated, “Illegal drugs, and fentanyl in particular, have become a scourge across the United States, including in Indian country. I’m grateful to the BIA, DEA, and our critical Federal, State, and Tribal partners for working together to combat this dangerous poison. Without their combined efforts, approximately 161,000 deadly fentanyl-laced pills and more than 80 pounds of methamphetamine would not have been removed from communities in and around Indian country. As a result, our neighborhoods and communities in Eastern Washington and elsewhere are safer and stronger.”
“The Bureau of Indian Affairs, Division of Drug Enforcement – working hand in hand with the DEA, Tribes, and our law enforcement partners – dealt a real blow to drug trafficking organizations operating in and through Indian country,” stated Associate Director Jason Thompson from the BIA. “Investigative efforts resulted in significant seizures of narcotics across multiple jurisdictions. As a result of all of the agencies involved, Indian country is safer today than yesterday.”
“Our combined efforts at the State, Local, Tribal, and Federal levels removed large amounts of illicit narcotics and firearms,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle. “The partnerships seen here are saving lives and working to ensure our communities are safe from dangerous drugs and deadly weapons.”
This ongoing case is being investigated by the Bureau of Indian Affairs Division of Drug Enforcement, Drug Enforcement Administration, and the North Central Washington Narcotics Task Force. The investigation team is being assisted by the U.S. Marshals Service, U.S. Customs and Border Protection, the Okanogan County Sheriff, Colville Tribal Police Department, and the Kalispel Tribal Police Department. The case is being prosecuted by Assistant United States Attorney Richard R. Barker.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
2:23-CR-00047-TOR
Bridgeport Man Sentenced to Nearly 10 Years in Federal Prison for Stratford and New Haven RobberiesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that LATRELL S. MOORE, 33, of Bridgeport, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 118 months of imprisonment, followed by five years of supervised release, for robbery and firearm offenses.
According to court documents and statements made in court, on August 5, 2019, Moore committed an armed robbery of the Dunkin Donuts located on Lordship Boulevard in Stratford, taking approximately $400. On August 12, 2019, he robbed the Santander Bank located on Grand Avenue in New Haven, taking approximately $2,000.
Moore was arrested on related state charges on August 14, 2019. At the time of his arrest he possessed a loaded .38 caliber revolver and a .25 caliber semiautomatic handgun.
Moore’s criminal history includes convictions for criminal weapon possession and possession of narcotics. 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.
Moore has been detained since his arrest. On March 30, 2022, he pleaded guilty to one count of Hobbs Act robbery, one count of brandishing a firearm during and in relation to a robbery, one count of bank robbery, and one count of count of unlawful possession of a firearm by a felon.
Judge Chatigny ordered that the 118-month federal sentence is in addition to the approximately 43 months Moore has already served since his arrest.
State charges against Moore are pending.
This investigation was conducted by the Federal Bureau of Investigation, the Connecticut State Police and the Stratford, New Haven, and Bridgeport Police Departments. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Braymer Man Sentenced to 32 Years for Cattle Fraud Scheme That Led to MurdersRead the Press Release
KANSAS CITY, Mo. – A Braymer, Mo., man was sentenced in federal court today for a $215,000 cattle fraud scheme that he attempted to cover up by murdering two Wisconsin brothers.
Garland Joseph Nelson, 28, was sentenced by U.S. Chief District Judge Beth Phillips to 32 years in federal prison without parole. The court also ordered Nelson to pay $260,925 in restitution to his victims.
On Oct. 4, 2022, Nelson pleaded guilty to one count of mail fraud and one count of being a felon in possession of a firearm. Nelson admitted that he defrauded a Shawano County, Wisconsin company, Diemel’s Livestock, LLC, of $215,000 in a cattle contract.
Nelson is also serving two life sentences in a separate state case related to the murders of Nicholas and Justin Diemel, two brothers who were principals in Diemel’s Livestock. Nelson’s federal prison sentence must be served consecutively to his state sentence.
Nelson – an employee of J4s Farm Enterprises, Inc., a business started by his mother – agreed to care for cattle belonging to Diemel’s Livestock. Diemel’s Livestock invested and traded in cattle and other livestock. Nelson agreed to feed and pasture the cattle, then sell the cattle and send Diemel’s Livestock the proceeds (minus the costs of raising the cattle).
The Diemels sent several loads of cattle to Nelson from November 2018 through April 2019. Nelson sold some loads of cattle and paid the Diemels. However, Nelson admitted he killed many of the Diemels’s cattle and then fraudulently billed the Diemels for feed and yardage for the dead cattle.
Nelson admitted that he did not properly care for cattle due to incompetence, neglect, or maltreatment. Hundreds of calves entrusted to Nelson died due to underfeeding, neglect, and/or maltreatment. Nelson fed cattle inadequately and poorly. For example, he dropped feed bales in a pasture for calves but did not remove the plastic covering so that calves ate the plastic and died.
Throughout the spring of 2019, Nicholas Diemel pressed Nelson for payment for his cattle. He sent no more loads of cattle to Nelson while he awaited his payment.
To deprive the Diemels of their cattle or their money and to prevent them from recovering either their cattle or their money, in June 2019 Nelson fraudulently sent the Diemels a bad check for $215,936 while his bank account had a balance of 21 cents. The check had been intentionally torn and damaged so that it could not be submitted for payment.
Nelson told the Diemels they could come to Missouri to get their money. On July 17, 2019, Nicholas Diemel bought two round-trip airline tickets from Milwaukee to Kansas City. On July 20, 2019, Nicholas and Justin Diemel arrived in Kansas City and rented a pickup truck from Budget.
On July 21, 2019, the Diemels drove their rental truck to Nelson’s mother’s farm in Braymer. Nelson’s mother and other family members were in Branson for the weekend, so Nelson was alone on the farm. Nelson murdered both of the Diemels and attempted to dispose of their bodies, but the remains were later found by investigators.
Nelson also was in possession of a Marlin 30-30 rifle and ammunition from July 18 to July 21, 2019. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Nelson has a 2015 federal felony conviction for an earlier cattle fraud scheme that resulted in losses of more than $262,000 to his victims, as well as two prior state felony convictions for passing bad checks.
According to court documents, Nelson engaged in at least two more cattle fraud schemes. In December 2018, Nelson was entrusted with feeding and caring for 131 calves he co-owned with a Kansas farmer (less than a year after he was released from prison for his 2015 conviction and in direct contravention to the conditions of his supervised release). On May 23, 2019, Nelson dropped off 35 calves at the co-owner’s farm in Kansas, apparently all that survived of the 131. Of the surviving 35 calves, many were emaciated and had ringworm; some could not even walk onto a truck to be transported. Some calves had their ears torn as though identifying ear tags had been removed.
According to court documents, those calves were involved in another cattle fraud scheme engaged by Nelson. Nelson told a Bogard, Mo., farmer that he would furnish all the food and medicine for 131 bottle calves and pay the farmer a dollar per day per calf for the use of his barn and the time he would spend feeding the calves. Nelson bought almost no food or medicine for the calves in the five months he kept them at the Bogard farm. Instead, the farmer paid $14,363 out of his own pocket for food and veterinary care for the calves. Nor did Nelson ever pay anything to the farmer for the use of his barn and time spent feeding and caring for the calves as he had promised. (Nelson’s mother later paid the farmer $2,000.) In late April 2019, Nelson picked up the living bottle calves from the Bogard farm and took them to his mother’s farm. On May 23, 2019, Nelson dumped the 35 remaining calves without warning at the Kansas farm. This was a problem because the Kansas farmer had a closed dairy herd and bringing unvaccinated and potentially diseased calves onto his property put his existing herd at risk.
On Sept. 30, 2022, Nelson pleaded guilty to two counts of murder in the first degree in Johnson County, Mo., and was sentenced to life imprisonment without parole on each count to run consecutively.
This case was prosecuted by Assistant U.S. Attorneys Kathleen D. Mahoney and Nicholas Heberle. It was investigated by the FBI, the U.S. Department of Agriculture – Office of Inspector General, the Caldwell County, Mo., Sheriff’s Department, the Bourbon County, Kan., Sheriff’s Department, and the Missouri State Highway Patrol.
Bookkeeper Sentenced to 29 Months in PrisonRead the Press Release
NEWS RELEASE SUMMARY – April 24, 2023
SAN DIEGO – Former bookkeeper Susan Ann Sears was sentenced in federal court today to 29 months in prison for embezzling more than $765,000 from Shapery Enterprises and nearly $165,000 from Hope Campbell Realty Inc.
Sears was also ordered to pay $839,419.22 in restitution—$674,673.93 to American Express and $164,745.29 to Hope Campbell Realty.
Sears served as the bookkeeper for Shapery Enterprises from July 2018 to November 2019. As the bookkeeper, Sears had access to the business’s bank accounts, American Express credit card, and accounting programs. In her plea agreement, Sears admitted that she opened a personal American Express credit card in the name of a family member, obtained American Express cards for herself and family members, and used Shapery Enterprises’ bank account to pay the personal American Express account. Sears made the payments appear to be legitimate business expenses by entering “S. Sharpery,” which is one letter off from the CEO’s last name of Shapery.
Sears also issued herself unauthorized checks and falsified entries in the business’ accounting programs. In total, Sears stole more than $765,000 from Shapery Enterprises. Since American Express reimbursed Shapery Enterprises $674,673.93, Sears admitted that the loss to American Express was $674,673.93.
After Sears was fired from Shapery Enterprises in November 2019 and the government notified her that she was under investigation for wire fraud, Sears was employed by Hope Campbell Realty as its bookkeeper from February 2021 to November 2021. Sears again abused her position of trust and issued herself and her family members unauthorized checks. Sears also falsified entries in Hope Campbell Realty’s accounting programs to make it appear that the checks were for legitimate business purposes. Between March 2021 and November 2021, Sears stole nearly $165,000 from Hope Campbell Realty.
“Sears took advantage of her employers’ trust and treated their bank accounts as her personal piggy bank, stealing hundreds of thousands of dollars,” said U.S. Attorney Randy S. Grossman. “This defendant inflicted substantial damage to two San Diego businesses and has been held to account for her conduct.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.
“Susan Ann Sears went to great lengths to defraud not one, but two of her employers. Even after learning that she was under investigation, she brazenly continued to abuse her position of trust to feed her own greed,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “Embezzlement will always come to light—the short-term benefits are never worth the repercussions. The FBI will continue to identify and investigate those who choose to line their own pockets at the expense of others.”
DEFENDANTS Case Number 21cr3189-GPC
Susan Ann Sears Age: 64 San Diego, CA
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and $250,000 fine, or twice the gain/loss, whichever is greater
AGENCY
Federal Bureau of Investigation
Baltimore Felon Sentenced to Almost Five Years in Federal Prison for Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Steven McCullough, age 36, of Baltimore, Maryland, to 58 months in federal prison, followed by three years of supervised release, for being a felon in possession of a firearm an ammunition.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department.
“Our strategy of preventing violence by removing illegal guns and repeat offenders from the streets by any legal means necessary is paying off,” said United States Attorney Erek L. Barron. “As of today, homicides in Baltimore are down more than 17% from last year and non-fatal shootings are down nearly 20%. We remain laser-focused on reducing violent crime in Baltimore and throughout the state.”
According to his guilty plea, on December 3, 2020, McCullough posted a video of himself on social media, which shows him approaching a vehicle holding a black handgun. Baltimore Police officers saw the video, recognized that McCullough was in the 1200 block of North Luzerne Avenue and responded to that location. Officers located McCullough, wearing the same gray sweatshirt and sweatpants as in the video, and attempted to place him under arrest. McCullough ran, pulling a black firearm from his sweatshirt pocket. A short distance later, McCullough tripped, with the gun still in his hand, and tossed the firearm out of his reach. McCullough was arrested and the gun, a 10mm pistol was recovered. The handgun was loaded with one round of 10mm jacketed hollow point ammunition in the chamber but was missing a magazine. A canvass of the path of pursuit recovered a magazine loaded with nine rounds of 10mm ammunition identical to the round found in the gun. McCullough was searched and officers also recovered approximately 36 vials containing a total of approximately 40 grams of cocaine for distribution. McCullough admitted that he knew he has a previous felony conviction and was prohibited from possessing a firearm or ammunition.
In two separate cases last week, defendants pleaded guilty to illegal possession of a firearm in a school zone. Terrence Johnson, age 23, of Baltimore, posted a video on social media showing him driving a car with a black and brown handgun between the center console and the driver’s seat. Johnson was located within 1,000 feet of Green Street Academy and detectives recovered the gun, a 9mm semi-automatic pistol loaded with eight rounds of 9mm ammunition from Johnson’s waistband. Johnson was sentenced to six months in federal prison and ordered to forfeit the gun and ammunition.
In the second case, Gerald Dean, age 31, of Baltimore, was found by BPD officers asleep in a car with the lights on and the engine running. The pink handle of a handgun was seen protruding from under the armrest of the center console. Officers opened the door, secured Dean, and recovered the handgun from under the armrest of the center console. Dean was searched and officers recovered eight small green containers of crack cocaine, four small black containers of heroin, sixteen pills of methamphetamine, and one sublingual strip. At the time, Dean was within 1,000 feet of the grounds of a school zone, specifically Katherine Johnson Global Academy (formerly Calverton Elementary/Middle School). Dean will be sentenced on July 27, 2023.
These cases are 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.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in these investigations. Mr. Barron thanked Assistant U.S. Attorneys Martin J. Clarke and Brandon K. Moore, who prosecuted the McCullough case and thanked Special Assistant U.S. Attorneys Liane Kozik and Jonathan Tsuei, who prosecuted the Johnson and Dean cases, respectively.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psn and https://www.justice.gov/usao-md/community-outreach.
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Bakersfield Pain Management Doctor Sentenced to Prison for Tax EvasionRead the Press Release
FRESNO, Calif. — Janardhan Grandhe, 65, of Bakersfield, was sentenced to one year and one day of prison today for tax evasion, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Grandhe was a pain management doctor in Bakersfield, doing business as Central Valley Pain Management (CVPM). In 2017, 2018 and 2019, Grandhe willfully filed false tax returns for CVPM with overstated expenses and false individual tax returns for himself that omitted gross receipts he received. In total, Grandhe evaded personal tax liability exceeding $300,000.
Between 2017 and 2019, Grandhe provided checks to employees claiming to be reimbursements for employee expenses that were then included as deductions on the CVPM tax returns. Grandhe claimed the reimbursements were for out-of-pocket costs incurred by employees for continuing medical education, meals, mileage, and travel expenses. In many cases, those expenses were never incurred by the employees. Grandhe instead instructed those employees to cash the checks and provide cash back to Grandhe, which he deposited into accounts controlled by him or his family members. Grandhe then provided false documentation to his tax preparer to support the false deductions.
According to court documents, between 2017 and 2019, Grandhe also diverted business receipts to his personal bank accounts and hid this money from his tax preparer so that these amounts would not be included as business gross receipts on the CVPM tax returns. The unreported income on the CVPM tax returns resulted in decreased net income on Grandhe’s personal tax returns, reducing his taxes based on false information.
This case was the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant U.S. Attorney Jeffrey A. Spivak prosecuted the case.
Bakersfield Man Pleads Guilty to Distributing FentanylRead the Press Release
FRESNO, Calif. — Marcus Randall, 39, of Bakersfield, pleaded guilty today to conspiring to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 16, 2020, Randall sold fentanyl pills to a victim who later ingested the pills, resulting in her overdose death.
This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the U.S. Secret Service, the Bakersfield Police Department, the Kern County Probation Department, and the California Highway Patrol. Assistant U.S. Attorneys Justin J. Gilio and Antonio J. Pataca are prosecuting the case.
Randall is scheduled to be sentenced on Aug. 7, 2023, by U.S. District Judge Jennifer L. Thurston. Randall faces a maximum statutory penalty of 20 years in prison and a fine up to $1 million. 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 is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Armed Heroin Dealer Sentenced to Seven Years in PrisonRead the Press Release
PROVIDENCE – A 35-year-old Providence man for whom court records indicate multiple previous state court convictions for similar conduct, was sentenced today to seven years in federal prison for being an armed drug dealer, a felon in possession of firearms, and for trafficking heroin, announced United States Attorney Zachary A. Cunha.
According to court documents, Giancarlo Fermin has repeatedly engaged in similar conduct in the past, despite multiple state convictions; his first term of incarceration came at age eighteen following a Rhode Island state conviction on narcotics and firearm charges.
Most recently, Fermin was arrested when members of the FBI Safe Street Task Force executed a court-authorized search of his residence in August 2021, where they located two fully loaded firearms, ammunition, approximately 16 grams of heroin, and numerous items used to prepare and package narcotics for distribution, including a grinder, a digital scale, and more than 2,000 blue miniature paper envelopes. As FBI agents entered Fermin’s residence, the agents witnessed Fermin tossing blue envelopes, some containing heroin, out of a window. Fermin later admitted that he possessed the firearms for “protection.”
“Armed drug traffickers who choose to make a career out of peddling opioids into our Rhode Island communities can look forward to prison, not profits,” said U.S. Attorney Cunha. “Today’s sentence should leave no doubt about this Office’s resolve to use every means at our disposal to deal with those who put guns and drugs on our streets.”
“Today’s sentence makes it clear that career criminals like Giancarlo Fermin who refuse to learn from their mistakes by repeatedly breaking the law and threatening the safety of others will be held accountable,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “No community is untouched by violent crime which is why our RI Safe Streets Task Force continues to work hard every day alongside our law enforcement partners in identifying, investigating, and disrupting others like Mr. Fermin who incite violence and threaten the safety our citizens.”
Fermin pleaded guilty on November 3, 2022, as charged by way of indictment, to possession with intent to distribute heroin, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. He was sentenced today to eighty-four months in federal prison to be followed by three years of federal supervised release.
The case was 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.
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