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15 May 2023
Jury Convicts St. Lawrence County Sex Offender of Child Exploitation OffensesRead the Press Release
UTICA, NEW YORK – A jury on Friday voted to convict Jerod Schaffer, age 40, of Potsdam, New York, of sexual exploitation of a minor, committing a felony offense against a minor while being required to register as a sex offender, and receipt and possession of child pornography, following a 5-day trial in Utica.
United States Attorney Carla B. Freedman and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), made the announcement.
The trial evidence established that Schaffer was convicted in 2014 in Franklin County, New York, of attempted sexual abuse in the first degree and, as a result, was required to register as a sex offender. In November 2021, Schaffer met a 14-year-old girl on a social media site and began requesting and receiving child pornography from her. In early 2022, Schaffer traveled from New York to Ohio where he had sex with the victim on multiple occasions, recorded it, and posted a sex video online. When Schaffer’s house was searched in May 2022, he had dozens of sexually explicit files depicting the victim.
The jury voted to acquit Schaffer of one count of sexual exploitation of a child and failed to reach a verdict as to three other counts.
At sentencing scheduled for September 21, 2023, before United States District Judge David N. Hurd, Schaffer faces at least 35 years and a maximum term of 120 years in prison, restitution to the victim, and forfeiture of the electronic device involved in the commission of his offense. A defendant’s sentence is imposed by a judge based on the statutes the defendant violated, the U.S. Sentencing Guidelines, and other factors.
HSI and the Potsdam Police Department investigated this case. Assistant United States Attorneys Michael D. Gadarian and Adrian LaRochelle are prosecuting this case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Jury Convicts Insurance Agent of Defrauding Elderly InvestorsRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that today, following a six-week trial, a jury has returned guilty verdicts on nine counts of the superseding indictment charging Phillip Roy Wasserman (66, Sarasota) with conspiracy to commit wire fraud and mail fraud and substantive counts of wire fraud and mail fraud. Wasserman faces a maximum penalty of 20 years’ imprisonment on each of the conspiracy, mail fraud, and wire fraud counts. The United States is also seeking a money judgment in the amount of at least $6.3 million, the proceeds of the charged criminal conduct. Prior to trial, the tax counts in the superseding indictment were ordered to be tried separately at the request of Wasserman.
On July 21, 2021, Wasserman’s codefendant, Kenneth Rossman, pleaded guilty to conspiracy to commit wire fraud and mail fraud as well as aiding and abetting the preparation of a false and fraudulent income tax return. He is scheduled to be sentenced on June 8, 2023.
According to the evidence presented at trial, Wasserman, a former lawyer and licensed insurance agent, and Rossman, a Florida certified public accountant and licensed insurance agent, made false and fraudulent misrepresentations and concealed material information to convince elderly victim-investors to put their money into Wasserman’s new insurance venture – “FastLife.” Some victim-investors were persuaded to liquidate traditional investments such as annuities and/or to borrow funds against existing life insurance policies to generate cash to invest in the venture. These victim-investors were not told about surrender fees and other costs associated with said liquidations, or about negative personal tax consequences resulting from liquidations. Wasserman paid Rossman a percentage of the victim-investors’ money as compensation for his role in the conspiracy. Wasserman also used victim-investors’ money to make payments to earlier victim-investors in the FastLife venture, as well to as other earlier creditors.
Wasserman spent a significant amount of the victim-investors’ money to finance a lavish lifestyle that included a luxury personal residence, a beach house on Casey Key, Tampa Bay Lightning season and playoff tickets, concerts and other shows, vehicles, jet skis, jewelry, personal celebrity entertainment, gambling, retail shopping, home improvements, personal insurance, and a host of other expenses for his personal benefit and the benefit of family members.
The evidence also established that Wasserman took numerous affirmative steps to evade payment of more than $900,000 in taxes due and owed. Wasserman also failed to disclose a multitude of civil judgments and other debts pending against him at the time he solicited victim-investors to put their money into FastLife. In addition, Wasserman took steps to conceal FastLife’s mounting business debts to various business vendors and service providers, employees and independent contractors, and victim-investors. The investigation revealed that Wasserman had created a second set of books and fabricated a compensation agreement in an effort to convince investigators that he had not made improper personal use of victim-investors’ funds.
Moreover, Wasserman urged one witness to lie to investigators, attempted to dissuade several victim-investors from cooperating with law enforcement, and requested that one victim-investor make a baseless complaint against an investigator. In a further effort to thwart the investigation, Wasserman falsely and fraudulently represented that he had an audit from a highly regarded financial services firm that would show neither he nor FastLife had committed any wrongdoing. In fact, Wasserman had never even engaged the firm to perform an audit and never received any final work product of any kind from the firm.
This case was investigated by the Internal Revenue Service - Criminal Investigation and the Florida Office of Financial Regulation. It is being prosecuted by Assistant United States Attorneys Rachelle DesVaux Bedke and Rachel K. Jones.
Jury Convicts Former Aequitas CEO and Company Executives for Roles in $300 Million Fraud ConspiracyRead the Press Release
PORTLAND, Ore.—After a six-week trial in Portland, a federal jury found three former executives of Aequitas Management, LLC, and associated companies, guilty today for their roles in a vast fraud conspiracy. Evidence at trial showed the conspirators raised nearly $300 million from defrauded investors.
Robert J. Jesenik, 63, former chief executive officer of Aequitas and resident of Lake Oswego, Oregon; Andrew N. MacRitchie, 59, formerly of Palm Harbor, Florida; and Brian K. Rice, 56, of Portland were found guilty of conspiring with one another to commit mail and wire fraud and 28 individual counts of wire fraud. Jesenik was also convicted of making a false statement on a loan application.
“Today’s guilty verdicts are an important milestone in the yearslong effort to hold Bob Jesenik and other former Aequitas executives accountable for cheating investors and going to extraordinary lengths to conceal the precarious and rapidly-declining financial condition of their company,” said Ethan Knight, Chief of the Economic Crimes Unit for the U.S. Attorney’s Office.
“Theft is theft, whether it be taking from another's pocket or taking through a corrupt financial investment scheme. Bob Jesenik and his co-conspirators deliberately deceived investors and the federal government for years and now they will finally face the consequences,” said Kieran L. Ramsey, Special Agent in Charge of the FBI Portland Division. “The length of this investigation and this trial demonstrates the full measure to which the FBI, and our law enforcement partners, will go to seek justice. Today’s conviction sends a message that you will be held accountable for corrupt financial practices. We thank IRS-Criminal Investigation, the Employee Benefits Security Administration, and the U.S. Attorney’s Office for their diligent work on this case.”
“Strictly speaking, borrowing from Peter to pay Paul isn’t illegal. However, lying to Peter for personal financial gain and then not paying Paul is definitively criminal,” said Special Agent in Charge Adam Jobes, IRS Criminal Investigation (IRS:CI), Seattle Field Office. “Corporate executives engaged in fraud tell a multitude of lies, and one of the first is convincing themselves they will get away with it. Today, these individuals are learning the cold, hard truth—they undeniably have not gotten away with it. IRS:CI is committed to bringing conmen and fraudsters to justice.”
“Some of the victims of this shameful scheme were participants of employee pension benefit plans, who worked hard for a secure retirement” said Klaus Placke, Employee Benefits Security Administration’s Regional Director in San Francisco. “We were pleased to partner with federal law enforcement agencies to prosecute these former executives to the full extent of the law.”
According to court documents, Jesenik, MacRitchie, Rice, and others used Aequitas, formerly headquartered in Lake Oswego, to solicit investments in a variety of notes and funds, many of which were purportedly backed by trade receivables in education, health care, transportation, and other consumer credit areas. At its peak, Aequitas employed nearly 200 people.
From June 2014 through February 2016, the former executives solicited investors by misrepresenting Aequitas’ use of investor money, the financial health and strength of the company and its subsidiaries, and the risks associated with its investments and investment strategies. Collectively, the defendants also failed to disclose other critical facts about the company, including its near-constant liquidity and cash-flow crises, the use of investor money to repay other investors and to defray operating expenses, and the lack of collateral to secure funds.
In 2005, Jesenik founded the Aequitas group of companies, and, as chief executive officer, controlled the organization’s structure and had ultimate decision-making authority over company activities. As elicited through trial testimony, Jesenik was a micromanager deeply entrenched in the day-to-day workings of Aequitas. He also served as the company’s principal pitchman, frequently telling others that Aequitas would one day rival leading asset management firms.
MacRitchie was Aequitas’s executive vice president and chief compliance officer responsible for the development and implementation of risk management and compliance processes and procedures. MacRitchie oversaw the company’s accounting, legal, and auditing functions, and participated in fundraising. He also established Aequitas’s New York office and directed the company’s “Lux Fund,” a Luxembourg-based fund used to solicit international investors.
Rice served as Aequitas’s executive vice president and president of wealth management. Among other responsibilities, Rice oversaw the solicitation of investments through registered investment advisors (RIA) and managed Aequitas’s affiliated RIAs.
The company’s largest holdings were from various hospital networks, a consumer debt-consolidator, a motorcycle lender, and Corinthian Colleges, one of the nation’s largest operators of for-profit technical and post-secondary schools. The student loans Aequitas owned from Corinthian Colleges, valued at more than $200 million, were by far the company’s largest single category of receivables.
By early 2014, the U.S. Department of Education began scrutinizing Corinthian’s graduation and job-placement rates and, by June of 2014, announced it would defer the payment of federal-aid funds to the schools. Soon after, Corinthian defaulted on its monthly recourse payment to Aequitas, costing the company more than $4 million per month.
The collapse of Corinthian Colleges set off a series of events that ultimately led to Aequitas’s own demise. Meanwhile, Jesenik, MacRitchie, Rice, and others committed numerous financial crimes in an effort to conceal Aequitas’ bleak financial picture. In June 2014, they prepared a letter to investors claiming that Corinthian’s woes would not impact Aequitas’s ability to recoup its investment from student borrowers. At the same time, they continued soliciting new non-equity investments in the company, falsely claiming Aequitas used new investment funds to purchase receivables when, in reality, they were using the funds to pay the company’s bills and prior investors. By July 2014, Aequitas was effectively insolvent, and, in March 2016, the company collapsed.
On July 13, 2022, a federal grand jury in Portland returned a 31-count superseding indictment charging Jesenik, MacRitchie, and Rice with one count each of conspiracy to commit mail and wire fraud and conspiracy to commit money laundering, and 28 counts of wire fraud. Jesenik was also charged with a single count of making a false statement on a loan application.
In 2019, former Aequitas executives and co-conspirators Brian A. Oliver, 58, of Aurora, Oregon, and Olaf Janke, 52, of Portland, pleaded guilty to conspiring to commit mail and wire fraud and money laundering. Oliver and Janke will be sentenced on December 19, 2023, and June 20, 2023, respectively, and, as part of their plea agreements, have agreed to pay restitution in full to their victims as recommended by the government and ordered by the court.
On May 26, 2022, former Aequitas senior executive and chief financial officer Nelson Scott Gillis, 70, of Lake Oswego, pleaded guilty to making a false statement to a bank. He will be sentenced on June 27, 2023, and has also agreed to pay full restitution.
Conspiracy to commit mail and wire fraud and wire fraud are punishable by up to 20 years in prison, three years’ supervised release, and a minimum $500,000 fine per count of conviction. Making false statements on a loan application is punishable by up to 30 years in prison, three years’ supervised release, and a $1 million fine.
This case was investigated by the FBI, IRS-Criminal Investigation, and U.S. Department of Labor Employee Benefits Security Administration. It was prosecuted by Ryan W. Bounds, Christopher L. Cardani, and Siddharth Dadhich, Assistant U.S. Attorneys for the District of Oregon. Assistant U.S. Attorney Hannah Horsley assisted the trial team.
Joshua Pincoske Pleads Guilty to Production of Child Sexual Abuse Materials and Possession of Child Sexual Abuse MaterialsRead the Press Release
Burlington, Vermont – The Office of the United States Attorney for the District of Vermont announced that Joshua Pincoske, 47, of Concord, New Hampshire pleaded guilty today in United States District Court in Concord, New Hampshire to one count of production of child sexual abuse materials (formerly called child pornography) and one count of possession of child pornography. U.S. District Judge Joseph N. Laplante ordered that Pincoske remain detained in the custody of the United States Marshals Service pending sentencing. Pincoske’s sentencing hearing is set to occur in Concord, New Hampshire on August 28, 2023.
According to court records, on February 2, 2022, law enforcement executed search warrants authorizing the searches of Pincoske’s residence, his vehicle, and his person. During the execution of those search warrants, law enforcement seized a number of electronic devices, including his cellular phones. Examinations of the contents of Pincoske’s cellular phones revealed numerous visual depictions of minor females engaged in sexually explicit conduct. In the plea agreement between Pincoske and the United States, Pincoske admitted to engaging in sexual activity with a fifteen-year-old female in the master bedroom of his home in Concord on October 4, 2019. During the sexual activity, Pincoske, using his cellular phone, created videos and images of the juvenile engaged in sexual activity. Pincoske also admitted to engaging in sexual activity with a second juvenile female on November 12, 2021 while in Massachusetts, and creating both images and videos of this juvenile female engaged in sexually explicit conduct.
At sentencing, if the plea agreement is accepted by the Court, Pincoske will face a sentence of not less than 20 years and not more than 30 years of imprisonment, and a 10-year term of supervised release. Pincoske is required to pay restitution to the victims of his federal convictions and has agreed to pay restitution to four additional juvenile victims related to pending prosecutions in Merrimack and Strafford Counties.
The resolution of Pincoske’s federal charges occurs in conjunction with coordinated resolutions concerning matters pending before New Hampshire state courts in Merrimack and Strafford Counties. Those resolutions are the subject of separate agreements with the prosecutors in those jurisdictions.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Concord Police Department and the Farmington Police Department. He also thanked the New Hampshire Internet Crimes Against Children Task Force, the Merrimack County Child Advocacy Center, the Yarmouth, Massachusetts Police Department, the Bangor, Maine Police Department, the El Dorado, Kansas Police Department, and the United States Secret Service for their vital assistance.
The United States Attorney for the District of Vermont has been appointed to handle this prosecution under the authority described in 28 U.S.C. § 515. The prosecutor assigned to the matter is Jonathan A. Ophardt, an Assistant United States Attorney in the District of Vermont. Pincoske is represented by Assistant Federal Public Defender Behzad Mirhashem.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and Child Exploitation Obscenity Section, Criminal Division (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jefferson County Men Sentenced for Federal Firearms and Narcotics OffensesRead the Press Release
Louisville, KY – The final members of a fifteen-person drug trafficking conspiracy were recently sentenced for their roles in the conspiracy.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department made the announcement.
Levontay Townes, 30, of Louisville, was sentenced on May 3, 2023, to 15 years in prison, followed by a 5-year term of supervised release, for conspiring to distribute fentanyl and heroin, possessing a firearm in furtherance of a drug trafficking crime (two counts), possessing with the intent to distribute heroin and methamphetamine, and possessing a firearm by a convicted felon (two counts).
Deonte Beason, 34, of Louisville, was previously sentenced on April 18, 2023, to 6 years and 5 months in prison, followed by a 4-year term of supervised release, for conspiring to distribute fentanyl and heroin and possessing with the intent to distribute fentanyl.
Jean-Luc Henry, 32, of Louisville, was previously sentenced on April 18, 2023, to 5 years in prison, followed by a 4-year term of supervised release for conspiring to distribute fentanyl and heroin and possession of a firearm by a convicted felon.
Co-conspirators Frank Trammell, 30, and Khalid Raheem, II, 26, also of Louisville, were previously convicted following a jury trial. On February 28, 2023, Raheem was sentenced to 11 years in prison, followed by a 3-year term of supervised release, for conspiracy to distribute heroin and 40 grams or more of fentanyl, for distribution of fentanyl, and for possession of a firearm by a convicted felon. During the sentencing hearing, the court heard testimony concerning witness intimidation and applied an enhancement to Raheem’s sentence for obstruction of justice.
On March 1, 2023, Trammell was sentenced to 32 years and 3 months years in prison, followed by an 8-year term of supervised release, for conspiracy to possess with the intent to distribute heroin and 40 grams or more of fentanyl, for distribution of fentanyl, for possession with the intent to distribute 40 grams or more of fentanyl, for possession of a firearm in furtherance of drug trafficking, and for possession of a firearm by a convicted felon.
On February 1, 2023, Destiney Rhodes, 25, of Louisville, was sentenced to 10 years in prison, followed by a 4-year term of supervised release, for conspiracy to possess with the intent to distribute heroin and 40 grams or more of fentanyl, for distribution of fentanyl, for possession with the intent to distribute 40 grams or more of fentanyl, for possession of a firearm in furtherance of drug trafficking, and for making a false statement during the purchase of a firearm.
Also previously sentenced in this case were the following:
On June 8, 2022, Kevin Henry, 26, of Louisville, was sentenced to 4 years in prison, followed by a 3-year term of supervised release, for conspiracy to distribute fentanyl and heroin.
On December 1, 2021, James Bivens, 34, of Louisville, was sentenced to time served and 3 years of supervised release for conspiracy to distribute fentanyl and heroin.
Reginald Harris, 31, of Louisville, and Jason Logsdon, 43, of Elizabethtown, were each sentenced to 2 years of probation for conspiracy to distribute fentanyl and heroin. Harris was sentenced on November 30, 2021, and Logsdon was sentenced on February 1, 2023.
K’lan Dunlap, 30, and Pierre Travis, 31, both of Louisville, were each sentenced to time served for conspiracy to distribute fentanyl and heroin. Dunlap was sentenced on December 1, 2021, and Travis was sentenced on October 20, 2021.
On September 2, 2022, Daryion Newsome, 21, of Louisville, was sentenced to 41 months in prison, followed by a 3-year term of supervised release, for conspiracy to distribute fentanyl and heroin.
On August 31, 2022, Kevone Evans, 21, of Louisville, was sentenced to 27 months in prison, followed by a 3-year term of supervised release, for conspiracy to distribute fentanyl and heroin.
On January 18, 2023, Ronnie Gadberry, 32, of Campbellsville, was sentenced to 20 months in prison, followed by a 3-year term of supervised release, for conspiracy to distribute fentanyl and heroin.
There is no parole in the federal system.
“This successful prosecution resulted from the outstanding work of our federal, state, and local law enforcement partners and the strong working relationships that exist between the agencies,” stated U.S. Attorney Bennett. “We all benefit from the combined effort of the agents, deputies, detectives, officers, and troopers who work to keep our communities safe.”
This case was investigated by the FBI, the ATF, and the Louisville Metro Police Department, with assistance from the DEA, the IRS Criminal Investigation, the U.S. Department of Homeland Security, Homeland Security Investigations, the U.S. Marshals Service, the Jefferson County Sheriff’s Office, the St. Matthews Police Department, the Jeffersontown Police Department, the Shepherdsville Police Department, the Kentucky State Police, and the Indiana State Police.
Assistant U.S. Attorney Erin McKenzie and Assistant U.S. Attorney Frank E. Dahl, III 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 www.justice.gov/OCDETF.
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Inland Empire Man Sentenced to 2½ Years in Federal Prison for BB Gun Attacks on Planned Parenthood Clinic and Firearm OffenseRead the Press Release
LOS ANGELES – A San Bernardino County man was sentenced today to 30 months in federal prison for firing BB guns at a Planned Parenthood facility in Pasadena nearly a dozen times and for illegally possessing a firearm and ammunition.
Richard Royden Chamberlin, 53, who currently resides in Ontario, but previously maintained a residence in Altadena, was sentenced by United States District Judge Michael W. Fitzgerald, who also ordered him to pay $42,663 in restitution.
At today’s sentencing hearing, Judge Fitzgerald described Chamberlin’s year-long string of BB gun attacks as a “reign of terror” and that Chamberlin had acted “in a calculated and cruel way” against Planned Parenthood, its staff, and patients.
Chamberlin pleaded guilty in December 2022 to one count of violating the federal Freedom of Access to Clinic Entrances (FACE) Act and one count of being a felon in possession of a firearm and ammunition.
Chamberlin admitted in his plea agreement to driving past the Planned Parenthood facility in Pasadena and firing his BB gun at the clinic on at least 11 occasions between June 2020 and May 2021. Chamberlin admitted that he intentionally conducted the attacks to intimidate and interfere with the clinic, its doctors, staff, and patients specifically because the clinic was providing reproductive health services, including services related to the termination of pregnancies.
Beginning on June 27, 2020, Chamberlin’s attacks involved him firing BB pellets through the window of his car. The attacks caused physical damage to the clinic, including shattered windows, and served to intimidate the staff of the clinic.
On March 29, 2021, an employee of the clinic heard an object hit her office window, which caused her to fear for her physical safety and interfered with the performance of her job duties. The next day, at 8:30 a.m. while the clinic was open and receiving patients, Chamberlin again drove by and fired his BB gun at the front entrance. During this attack, a patient’s support companion was seated on the front porch and was nearly hit when the BB gun pellets peppered the banners directly in front of where she was seated. No one was injured in any of the shootings.
On May 7, 2021, the Pasadena Police Department stopped Chamberlin while he was driving away from the clinic following yet another BB gun attack. At this time, Chamberlin possessed eight BB guns, including BB guns designed to look like assault rifles. On the front passenger seat of his vehicle, police found a backpack containing a .22-caliber pistol, which was loaded with 10 rounds of ammunition. In his plea agreement, Chamberlin admitted that he possessed this firearm and ammunition after being previously convicted in Arizona in 2012 of a felony offense of attempted transportation of a narcotic drug for sale.
Following his May 7, 2021, arrest, Chamberlin attempted to dispose of his remaining firearms by selling four firearms to a local consignment store and transferring ownership of eight additional firearms to a neighbor. During a subsequent search of his home, authorities recovered thousands of rounds of ammunition, gun powder, a dozen additional BB guns, a black cylinder resembling a suppressor, a Polymer 80 gun-making kit, various gun parts and multiple documents identifying and referring to Planned Parenthood.
“These victims have all been deeply impacted by [Chamberlin’s] conduct,” prosecutors argued in a sentencing memorandum. “The clinic’s employees still experience daily anxiety and fear, and they have an overwhelming sense of being unsafe in their work environment.”
The FBI and the Pasadena Police Department conducted the investigation in this matter.
Assistant United States Attorney Frances S. Lewis of the Public Corruption and Civil Rights Section prosecuted this case.
Indiana Man Sentenced to 72 Months in PrisonRead the Press Release
SOUTH BEND – Michael Snyder, 35 years old, of Francesville, Indiana, was sentenced by United States District Court Judge Robert L. Miller, Jr. after pleading guilty in two cases, one for distributing 50 grams or more of methamphetamine and one for being a convicted felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Snyder was sentenced to 72 months in prison followed by 3 years of supervised release.
According to documents in these cases, in November 2021, Snyder, who was driving a stolen vehicle in Mishawaka, was stopped by law enforcement officers. A loaded, stolen handgun was recovered from under his seat. Snyder had a prior felony conviction, and as such, was prohibited from possessing the firearm. In April 2022, an investigation revealed that Snyder was the source of a pound of methamphetamine that was sold in Winamac, Indiana.
These cases were investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Porter County Multi-Enforcement Group, and the Mishawaka Police Department. These cases were prosecuted by Assistant United States Attorney Joel Gabrielse.
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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Honoring National Police WeekRead the Press Release
HAMMOND— In honor of National Police Week, United States Attorney Clifford D. Johnson salutes the service and sacrifice of federal, state, local, and tribal law enforcement. This year, the week is observed Sunday, May 14, 2023 through Saturday, May 20, 2023.
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Today is Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), 224 law enforcement officers died nationwide in the line of duty in 2022, with four of those officers having served in the State of Indiana. One officer, Noah C. Rainey, from the Northern District of Indiana lost his life in 2022.
“It is my solemn duty to honor all law enforcement officers who have made the ultimate sacrifice,” said United States Attorney Clifford D. Johnson. “Law enforcement officers undertake great risks every day to protect others. These selfless acts deserve the upmost respect and honor. On behalf of my Office, I want to say to all law enforcement officers; we are grateful for the work that you perform each day.”
The names of the 556 fallen officers added this year to the wall at the National Law Enforcement Officer Memorial were read on Saturday, May 13, 2023, during a Candlelight Vigil in Washington, D.C. Starting last Friday and continuing throughout the current week, US Attorney staff will be attending District events in remembrance of fallen officers.
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Guilty Pleas in Fraudulent Nursing Diploma SchemeRead the Press Release
MIAMI – Five of dozens of defendants charged in the Southern District of Florida for their alleged participation in a scheme that created an illegal licensing and employment shortcut for aspiring nurses have pleaded guilty to wire fraud conspiracy.
Krystal Lopez and Damian Lopez (both of Palm Beach County, Fla.); Francois Legagneur (of Nassau County, N.Y.), Reynoso Seide (of Union County, N.J.); and Yelva Saint Preux (of Suffolk County, N.Y.) will be sentenced by U.S. District Judge Raag Singhal in federal district court in Fort Lauderdale on July 27. They each face up to 20 years in federal prison.
During guilty plea hearings before U.S. District Judge Raag Singhal, D. Lopez, Legagneur, Seide, and Saint Preux admitted to soliciting and recruiting people who sought nursing credentials that would allow them to work as registered, licensed practical, or vocational nurses. They also admitted to working with Palm Beach School of Nursing to create and distribute fraudulent diplomas and transcripts representing that the aspiring nursing candidates had attended the school and completed the necessary courses and clinicals to obtain their nursing diplomas. In fact, the aspiring nurses had not completed the courses and clinicals. K. Lopez admitted that, in her role as Palm Beach School of Nursing’s Finance Director, she processed applications for individuals who were issued fraudulent nursing school diplomas and transcripts and that each student paid the school $15,000 for the documents. The defendants all admitted to profiting from the scam.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Jeffrey B. Veltri of the FBI, Miami Field Office, and Special Agent in Charge Omar Pérez Aybar of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Miami Region, made the announcement.
FBI Miami and HHS-OIG Miami investigated, with valuable assistance from Homeland Security Investigations, Miami Field Office; U.S. Department of Veterans Affairs-Office of Inspector General; United States Postal Inspection Service, Miami; and Florida Attorney General-Florida Medicaid Fraud Control Unit, Mid-Atlantic Field Office.
Assistant U.S. Attorney Christopher J. Clark is prosecuting this case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
This case is being prosecuted in conjunction with a related criminal matter in the District of Maryland.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 23-cr-60007. Related cases in the Southern District of Florida are case nos. 22-cr-60111, 22-cr-60118, 23-cr-60005, 23-cr-60010, 23-cr-60012, and 23-cr-60013.
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Guatemalan Man Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Guatemalan man residing in Framingham has been sentenced in federal court in Boston for illegally reentering the United States after deportation.
Carmen Jimenez-Cruz, 42, was sentenced on May 11, 2023 by U.S. District Court Judge Angel Kelley to one year and one day in prison followed by one year of supervised release. Jimenez-Cruz will be subject to deportation proceedings upon completion of his sentence. On Jan. 24, 2023, Jimenez-Cruz pleaded guilty to illegal reentry.
In May 2013, Jimenez-Cruz was encountered by federal immigration authorities after he illegally crossed the Mexican border into Texas without being admitted by an immigration officer. He was removed from the United States in June 2013. One month after his removal, Jimenez-Cruz illegally reentered the United States and, in July 2013, he was again encountered by federal immigration authorities in Texas after having entered the United States without inspection. He was removed from the United States shortly thereafter in July 2013.
On an unknown date and place, Jimenez-Cruz illegally reentered the United States again. In April 2019, federal immigration authorities located Jimenez-Cruz at the Middlesex County House of Correction where he was being held pretrial on unrelated state charges. According to court records, in May 2022, Jimenez-Cruz was convicted of strangulation/suffocation and assault and battery on a family/household member and was sentenced to an 11-month split sentence followed by probation until May 2023. Upon completion of his sentence, Jimenez-Cruz was released from state prison.
Jimenez-Cruz was later located in September 2022 after being identified as a passenger during a motor vehicle stop in Framingham. Jimenez-Cruz was taken into custody and fingerprints obtained during his booking process were confirmed as an identical match to a prior removal verification document.
United States Attorney Rachael S. Rollins; Todd Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and Framingham Police Chief Lester Baker made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit is prosecuted the case.Georgia Couple Charged with Labor Trafficking Conspiracy, Forced Labor and Alien SmugglingRead the Press Release
A 16-count indictment was unsealed today charging a Georgia husband and wife with conspiring to commit labor trafficking, in addition to forced labor and alien smuggling, in connection with their operation of two Mexican restaurants, Sabor A Mexico at 805 Floy Farr Parkway, Fayetteville, Georgia, and Sabor A Mexico at 7860B Ella Lane, Fairburn, Georgia.
According to the indictment, between March 2021 and October 2022, Efrain Gonzalez, 40, and Estella Gonzalez, 34, both of Peachtree City, conspired to commit labor trafficking. The indictment alleges that the couple used force, threats of force, coercion and abuse of law and legal process to compel victims to engage in forced labor. The indictment further alleges that the couple engaged in alien smuggling for commercial gain, alleging five counts of alien smuggling against Efrain Gonzalez and one count against Estella Gonzalez.
The charge of forced labor carries a maximum of 20 years in prison, up to five years of supervised release, and a fine of up to $250,000. A federal district court judge will determine any sentence after considering U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia, and Acting Special Agent in Charge Travis Picknard of HSI Atlanta made the announcement.
Assistant U.S. Attorney Annalise Peters and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who believes that they may have been a victim of this case or may have relevant information to share is asked to call the HSI tip line at 866-DHS-2423.
If you or someone you know is a victim of human trafficking, please call the National Human Trafficking Hotline at 1-888-373-7888.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Franklin Naturopathic Practitioner Sentenced to Twelve Months’ Imprisonment for Unlawful Prescribing of Controlled SubstancesRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on May 12, 2023, Michele Nickels (48) was sentenced to 12 months and one day of imprisonment, to be followed by two years of supervised release. On February 8, 2023, Nickels pled guilty to an information charging her with one count of unlawful distribution of controlled substances. Nickels’ conviction stemmed from her practice, over at least a 4-year period, of prescribing medications, including controlled substances such as Adderall, without a medical license or a DEA registration.
According to court documents, during the relevant time period, Nickels was a licensed Acupuncturist who had graduated from Southwest College of Naturopathic Medicine in Arizona. Although Nickels owned and operated Self-Integrative Family Wellness Center between 2008 and 2022, Nickels was never licensed to practice medicine or prescribe medications in Wisconsin. Despite lacking the authority and licensure to prescribe medications or controlled substances, Nickels prescribed such substances over a four-year period by, among other things, using a DEA registration number that was not assigned to her.
In announcing the sentence, United States District Judge J.P. Stadtmueller focused on the trust that society places in licensing authorities to impose meaningful requirements in order to ensure the protection of the public. Judge Stadtmueller noted that individuals, like Nickels, who are unable to conform their conduct to the requirements of their licensing authorities must face appropriate consequences.
The Drug Enforcement Administration Diversion Control Division investigated this case, which Assistant United States Attorney Julie F. Stewart prosecuted.
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Former U.S. Army Employee Arrested in Bribery and Kickbacks Scheme Involving Defense ContractsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and L. Scott Moreland, Special Agent in Charge of the Department of the United States Army Criminal Investigation Division’s (“Army CID”) Major Procurement Fraud Field Office, announced today the arrest YOUNG BEOM KIM, a native of the Republic of Korea (“Korea”) and a United States citizen, on charges of honest services wire fraud, bribery, and money laundering. As alleged in an Indictment unsealed today in Manhattan federal court, KIM, while acting in his capacity as Chief of the Design Branch at Army Garrison Yongsan/Casey in Korea (“USAG-Y/C”), schemed to enrich himself through bribes and kickbacks from various manufacturers and suppliers of parts used in U.S. Army contracts. KIM is expected to be presented today before United States Magistrate Judge James L. Cott. The case has been assigned to United States District Judge Richard M. Berman.
U.S. Attorney Damian Williams said: “As alleged in the Indictment, Young Beom Kim was responsible for overseeing construction contracts, including for the repair of bunkers, at Army Garrison Yongsan/Casey in Korea, located just miles from the North Korean border. The importance of Kim’s work and duties to the Army and its troops cannot be overstated. Kim betrayed those duties in exchange for a quick buck. Individuals who would betray their positions of trust for personal financial gain will continue to be held to account by this Office.”
Special Agent in Charge L. Scott Moreland said: “Today’s arrest should serve as a stark reminder that our agents are relentless in their pursuit of those who choose to defraud the government. We have a very robust group of highly trained special agents and analysts who are masters at combating and uncovering fraud, deception, and other criminal acts associated with government contracting and purchasing. CID will continue to see to it that anyone suspected of contract fraud and corruption is brought to justice.”
According to the allegations in the Indictment unsealed today in Manhattan federal court and other publicly filed documents: [1]
From at least May 2017 through at least August 2021, KIM was a civilian employee for the U.S. Army, primarily serving as Chief of the Design Branch for the Directorate of Public Works at USAG-Y/C in Korea. KIM’s responsibilities included designing, reviewing, approving, and/or amending various maintenance, repair, and construction contracts at USAG-Y/C. While acting in that capacity, KIM helped ensure that certain Army contracts included the use of parts manufactured or supplied by specific companies. Some of these parts included blast doors, blast valves, shock mounts, and shock isolators (i.e., equipment designed to protect Army personnel in the event of an attack). In return, the companies manufacturing or supplying those parts collectively sent over $400,000 in kickbacks to KIM. A significant portion of these funds were laundered through bank accounts controlled by KIM’s adult relatives – including one account held in the name of a shell company (i.e. a company which existed in name only and which performed no legitimate business functions) – and were ultimately used to enrich KIM and to pay for bills and expenses incurred by KIM.
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KIM, 62, a resident of Korea, is charged with one count of conspiracy to commit honest services wire fraud and bribery, which carries a maximum sentence of five years in prison; two counts of honest services wire fraud; each of which carry a maximum sentence of 20 years in prison; two counts of bribery, each of which carry a maximum sentence of 15 years in prison; and one count of conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding work of Army CID and Special Agents from the U.S. Attorney’s Office for the Southern District of New York. Mr. Williams thanked the Antitrust Division of the U.S. Department of Justice for its assistance in this case.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Frank J. Balsamello and Jonathan E. Rebold are in charge of the prosecution.
The charges in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Prince George’s County Police Department Lieutenant Sentenced to 16 Months in Federal Prison for Tax Evasion—Failed to Report More Than $1.3 Million in Income from His Security BusinessRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah L. Boardman sentenced Edward Scott Finn, age 48, of Dunkirk, Maryland, today to 16 months in federal prison, followed by two years of supervised release, for a tax evasion charge. Finn is a former Lieutenant with the Prince George’s County Police Department and owned and operated Edward Finn Inc. (EFI), a private company. Judge Boardman also ordered Finn to pay restitution in the full amount of the loss, $367,765.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
United States Attorney Erek L. Barron said, “Law enforcement officers are not above the law and we will hold them accountable—as we would anyone—for their criminal actions.”
“To maintain faith in our nation’s tax system, all Americans, including those in positions of public trust, must be held accountable for paying their fair share,” said Kareem A. Carter, Acting Special Agent in Charge, Washington D.C. Field Office. “IRS Criminal Investigation will continue to investigate those who intentionally conceal income and file false returns.”
“Despite Finn’s position of trust as an officer of the law, he lied and stole from the government. He used his Secondary Law Enforcement Employment (SLEE) to propel his greed,” said Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office. “Today’s sentence articulates financial crimes do not pay.”
According to his plea agreement and other court documents, from approximately December 26, 1995 to April 26, 2021, Finn was a member of the Prince George’s County Police Department (PGPD). Members of the PGPD were allowed to work part-time outside employment in addition to their full-time duties, known as Secondary Law Enforcement Employment (SLEE). According to the plea agreement and court documents, from 2014 to 2021, Finn used EFI and employed off-duty law enforcement officers to provide security services to apartment complexes and other businesses, primarily in Prince George’s and Montgomery Counties, to manage and operate his SLEE business.
Finn admitted that he underreported a total of more than $1.3 million of EFI income on his 2014 through 2019 individual income tax returns. During that time frame, Finn deposited checks payable to EFI into personal bank accounts or non-EFI bank accounts over which Finn had signature authority. Finn also created false business expenses to lower his tax due by writing checks to relatives and friends for purported services performed; and used business funds to purchase a boat, a car, and other items for his personal use. This underreported income resulted in a total tax loss to the government of $367,765.
Further, Finn admitted that on April 22, 2021, as federal agents announced their presence at his front door to execute a search warrant on his residence, Finn initiated the erasure and resetting of his cellphone. Finn then opened the front door to his residence and law enforcement recovered the phone in the master bedroom.
United States Attorney Erek L. Barron commended the IRS-CI and the FBI and for their work in the investigation and thanked the Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their assistance. Mr. Barron thanked Assistant U.S. Attorney Timothy F. Hagan, Jr., who prosecuted this case.
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Former Preschool Teacher's Assistant Sentenced to 90 Years in Federal Prison for Producing Child PornographyRead the Press Release
LITTLE ROCK— Augustus “Gus” Shenker, 23, of Little Rock was sentenced to serve the next 90 years in federal prison for production of child pornography. Shenker was sentenced earlier today by United States District Judge Lee P. Rudofsky.
In May 2021, FBI received a cyber tip that Dropbox user Augustus Shenker, using an email address that contained his name, possessed seven videos containing child pornography. Investigators determined Shenker’s address and learned that he was employed at Miss Selma’s School in Little Rock, an early education school with children from 18 months old to fifth grade.
FBI agents obtained a search warrant for Shenker’s home and made contact with him at the school where he worked. Law enforcement seized Shenker’s iPhone and advised him a search warrant was being executed at his residence.
A review of items seized from Shenker’s residence revealed six videos created in March 2021 that showed Shenker touching the buttocks and vagina of a preschool-age child in a classroom at Miss Selma’s School. His iPhone contained a hidden folder with 19 additional videos, all of which were taken in the same preschool classroom where Shenker worked. Shenker’s face is visible in several of the videos. In addition to the videos of abuse that Shenker produced himself, law enforcement located more than a thousand images of child sexual abuse on Shenker’s phone and other devices. Shenker later admitted making the videos of the preschool-age children during nap time.
Shenker was first charged in a criminal complaint on May 18, 2021, when the FBI received the initial cyber tip. On June 1, 2021, after the discovery of the videos on his phone, a federal grand jury returned an indictment, charging Shenker with 22 counts of production of child pornography and one count of possession of child pornography. Shenker pleaded guilty to three counts of production of child pornography in December 2022. Judge Rudofsky sentenced Shenker to the maximum of 30 years on each count, to run consecutively, for a total of 90 years. In addition to the 90-year prison term, Shenker was sentenced to life of supervised release following imprisonment. There is no parole in the federal system.
“We are grateful that Judge Rudofsky imposed the maximum sentence allowed by the law against Mr. Shenker,” said United States Attorney Jonathan D. Ross. “This sentence ensures that Mr. Shenker will spend the rest of his life in prison, which means he will never harm another child. In the Eastern District of Arkansas, we will not waste time empathizing with adults who have a sexual interest in children, but rather resolve to fully investigate and prosecute each and every child predator. Our office, the FBI, and the National Center for Missing and Exploited Children will maintain our commitment to make sure that every criminal that harms and exploits children will be brought to justice.”
“As an educator, Mr. Shenker was entrusted to support and protect our children,” said FBI Special Agent in Charge James A. Dawson. “Instead, he chose to exploit and manipulate the very children he was hired to teach. Today’s sentence ensures he will never again victimize our community. FBI Little Rock will continue to utilize all resources to protect innocent youth from predators who seek to harm them.”
The investigation was conducted by the FBI Little Rock Child Exploitation and Human Trafficking Task Force and was prosecuted by Assistant United States Attorney Kristin Bryant.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Former Orange County Elementary School Teacher Pleads Guilty to Possessing Child Sexual Abuse MaterialRead the Press Release
SANTA ANA, California – A former Orange County elementary school teacher and high school wrestling coach pleaded guilty today to possessing child sexual abuse material (CSAM), including at least one video portraying masochistic sexual conduct involving a child.
Richard O’Connor, 45, of Anaheim, pleaded guilty to one count of possession of child pornography.
O’Connor formerly was employed as a fourth-grade teacher at Crescent Elementary School in Anaheim and volunteered as a boys’ wrestling coach at Canyon High School, also located in Anaheim. He is not accused of victimizing students.
According to his plea agreement, in October 2022, law enforcement served a federal search warrant on Apple Inc. for the contents of O’Connor’s Apple iCloud account.
A forensic review of O’Connor’s iCloud account identified at least 81 videos and 158 images of CSAM. O’Connor admitted in his plea agreement that several of the videos and images of CSAM in his iCloud account depicted infants or toddlers as well as violent, sadistic, or masochistic conduct.
O’Connor further admitted in his plea agreement that he knew that at least three of the videos that he possessed depicted minors engaged in sexual conduct. He also admitted to possessing at least one video that portrayed a child engaged in sadistic or masochistic conduct, particularly bondage.
United States District Judge David O. Carter scheduled a December 18 sentencing hearing, at which time O’Connor will face a statutory maximum sentence of 20 years in federal prison and will be required to register as a sex offender.
Federal prosecutors have agreed to recommend to the court that O’Connor be sentenced to a term of imprisonment no higher than five years.
Homeland Security Investigations investigated this case.
Assistant United States Attorney Melissa S. Rabbani of the Santa Ana Branch Office is prosecuting this case.
Former Indianapolis Police Sergeant Pleads Guilty to Using Excessive Force During Arrest on Monument CircleRead the Press Release
INDIANAPOLIS- A former Indianapolis Metropolitan Police Department Sergeant pleaded guilty today to violating the civil rights of an arrestee by using excessive force.
According to court documents, on Sept. 24, 2021, Eric Huxley, 44, of Indianapolis, then a sergeant with the Indianapolis Metropolitan Police Department, was on patrol in downtown Indianapolis when another officer requested his assistance in confronting a disorderly person on Monument Circle.
After officers placed the victim, identified as J.V., under arrest for disorderly conduct, Huxley assisted other officers with conducting an inventory of J.V.’s property. When officers began to remove J.V.’s belt, J.V. became confrontational with the officers. The primary arresting officer used a department-approved takedown maneuver to bring J.V., who had already been handcuffed, to the ground. The arresting officer held J.V. down with one hand while a second officer restrained his legs. This reasonable and appropriate use of force effectively overcame J.V.’s resistance and rendered him physically unable to move.
Despite knowing that J.V. had been effectively restrained and posed no further danger to officers or the public, Huxley then intentionally raised his right foot and drove it down onto J.V.’s head and face.
“This police officer violently and callously assaulted a homeless man who posed no threat,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to investigate and prosecute law enforcement officers for violating federal civil rights laws.”
“In addition to the trauma inflicted on victims, police officers who break the law and use excessive force damage the community’s trust in the law enforcement profession,” said United States Attorney for the Southern District of Indiana, Zachary A. Myers. “Officers put themselves at risk every day doing a difficult and sometimes dangerous job to uphold the law and protect their communities. Those who instead commit crimes must be identified and prosecuted. Today’s guilty plea demonstrates that the FBI, Department of Justice, and our U.S. Attorney’s Office are committed to seeking accountability for those who violate people’s civil rights under the color of law.”
“Everyday law enforcement officers in this country face dangerous situations which require the application of reasonable force to protect themselves and others. Unfortunately, some officers fail to adhere to the applicable standards of law and policy, inflicting harm instead of preventing it,” said Special Agent in Charge Herbert J. Stapleton of the Indianapolis Federal Bureau of Investigation. “This guilty plea reflects the FBI’s commitment to protecting the civil rights of all citizens, and I commend the work of the Special Agents and prosecutors who helped ensure the defendant was held accountable for his illegal conduct.”
Sentencing has not yet been scheduled. Huxley faces a maximum of 10 years in prison followed by supervised release. A federal judge will determine sentencing guidelines based on the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Clarke, U.S. Attorney Zachary A. Myers, and Special Agent in Charge Stapleton made the announcement.
The FBI Indianapolis Field Office investigated the case.
Assistant U.S. Attorney Tiffany Preston for the Southern District of Indiana and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section prosecuted the case.
Prior release here
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Former Indianapolis Police Sergeant Pleads Guilty to Using Excessive Force During ArrestRead the Press Release
A former Indianapolis Metropolitan Police Department Sergeant pleaded guilty today to violating the civil rights of an arrestee by using excessive force.
According to court documents, on Sept. 24, 2021, Eric Huxley, 44, was on patrol in downtown Indianapolis when another officer requested his assistance in confronting a disorderly person on Monument Circle. After officers placed the victim, identified as J.V., under arrest for disorderly conduct, Huxley assisted other officers with conducting an inventory of J.V.’s property. When officers began to remove J.V.’s belt, he became confrontational with the officers. The primary arresting officer used a department-approved takedown maneuver to bring J.V., who had already been handcuffed, to the ground. The arresting officer held J.V. down with one hand while a second officer restrained his legs. This reasonable and appropriate use of force effectively overcame J.V.’s resistance and rendered him physically unable to move.
Despite knowing that J.V. had been effectively restrained and posed no further danger to officers or the public, Huxley then intentionally raised his right foot and drove it down onto J.V.’s head and face.
“This police officer violently and callously assaulted a homeless man who posed no threat,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to investigate and prosecute law enforcement officers for violating federal civil rights laws.”
“In addition to the trauma inflicted on victims, police officers who break the law and use excessive force damage the community’s trust in the law enforcement profession,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “Officers put themselves at risk every day doing a difficult and sometimes dangerous job to uphold the law and protect their communities. Those who instead commit crimes must be identified and prosecuted. Today’s guilty plea demonstrates that the FBI, Department of Justice, and our U.S. Attorney’s Office are committed to seeking accountability for those who violate people’s civil rights under the color of law.”
“Every day law enforcement officers in this country face dangerous situations which require the application of reasonable force to protect themselves and others. Unfortunately, some officers fail to adhere to the applicable standards of law and policy, inflicting harm instead of preventing it,” said Special Agent in Charge Herbert J. Stapleton of the FBI Indianapolis Field Office. “This guilty plea reflects the FBI’s commitment to protecting the civil rights of all citizens, and I commend the work of the Special Agents and prosecutors who helped ensure the defendant was held accountable for his illegal conduct.”
Sentencing has not yet been scheduled. Huxley faces a maximum of 10 years in prison followed by supervised release. A federal judge will determine the sentence based on the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Clarke, U.S. Attorney Myers and Special Agent in Charge Stapleton made the announcement.
The FBI Indianapolis Field Office investigated the case.
Assistant U.S. Attorney Tiffany Preston for the Southern District of Indiana and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section prosecuted the case.
Federal Court Grants Provisional Approval of $2 Million in Sexual Harassment Lawsuit Against Alabama SheriffRead the Press Release
The Justice Department announced today that the U.S. District Court for the Southern District of Alabama has provisionally approved its $2 million settlement agreement with the Sheriff of Mobile County, Alabama. The agreement, announced by the department on April 24, resolves the department’s lawsuit alleging 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 the sheriff’s office failed to take prompt and effective action to remedy this harassing conduct as required by Title VII of the Civil Rights Act of 1964.
The court’s provisional approval means that the parties can begin to implement the agreement, including by providing notice to the current and former employees who have a right to request a monetary award under the agreement. Those individuals will then have an opportunity to submit comments on the settlement, which the court will consider at a fairness hearing on Aug. 25, 2023, before giving final approval to the agreement.
“The Justice Department brought this litigation to bring an end to the hostile work environment faced by women employed at the Mobile County Metro Jail,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The court’s action will help ensure that impacted female employees receive the relief that they rightly deserve.”
Under the terms of the agreement, the sheriff will pay compensatory damages to plaintiffs named in the lawsuit. The sheriff will also establish a $1.41 million settlement fund to compensate other women harmed by the discrimination alleged by the department.
- All women who have worked as corrections officers or corporals at the Mobile County Metro Jail at any time between Jan. 1, 2011, and April 21, 2023 are potentially eligible to recover monetary relief under the fund.
- Over the next several weeks, a claims administrator retained by the department will contact women who may be eligible to notify them of the fund and provide specific instructions about next steps, including when they can apply to the fund.
- People with questions about the agreement and claims process can contact the Justice Department at [email protected] or 1-800-556-1950 (option 6).
In addition to the monetary relief, the agreement also requires the sheriff to implement specific changes at the jail to reduce the instances of sexual harassment of female jail employees. These changes are based on recommendations from a corrections expert who has run jails and consulted with dozens of jails throughout the country for over three decades. None of the settlement funds will be used to implement these changes.
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.
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.
Everett Eugene Miller, Jr. Sentenced to Life Plus 120 Months for Sex Crimes Against A Child and EscapeRead the Press Release
KNOXVILLE, Tenn. – On May 11, 2023, Everett Eugene Miller, Jr., age 56, currently of Sunbright, Tennessee, was sentenced by the Honorable Judge Katherine A. Crytzer, in the United States District Court for the Eastern District of Tennessee at Knoxville.
At trial, Miller was convicted on all counts in the indictment. The indictment charged Miller with Enticement of a Minor to Engage in Sexual Activity, Transportation of a Minor to Engage in Sexual Activity, Felony Offense Involving a Minor by an Individual Required to Register as a Sex Offender, and Escape. Miller was sentenced to life plus 120 months in prison, followed by a lifetime on supervised release. Miller will be required to register with state sex offender registries and comply with special sex offender conditions during his supervised release.
The government’s evidence at trial proved that from July 2019 through January 2020, Miller’s minor niece was living with Miller and his wife. Miller was on the sex offender registry for sexual assaults against other children. Miller bought his niece a secret cell phone, and the two exchanged over 2900 messages. Miller told his minor niece he loved her and only wanted to be with her. Miller further told his niece he would divorce her aunt for her, and they would be married. From December 29, 2019, through January 2, 2020, Miller took his niece on a long-haul trucking run to New Mexico and during the trip raped her multiple times. On August 14, 2020, while incarcerated and awaiting trial, Miller was taken to a local hospital for a procedure where he attempted to escape.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The criminal indictment was the result of an investigation by the Federal Bureau of Investigation.
Assistant United States Attorney Jennifer Kolman represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.
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El Departamento de Justicia llega a un acuerdo con la Oficina del Sheriff del Condado de Liberty que resuelve una queja relacionada con discriminación racial presentada por la Universidad Estatal de DelawareRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con la Oficina del Sheriff del Condado de Liberty (LCSO, por sus siglas en inglés) que resuelve una queja de derechos civiles relacionada con la discriminación racial, en virtud del Título VI de la ley de Derechos Civiles de 1964. Como respuesta a la demanda, la LCSO colaboró con el Departamento de Justicia para llegar a un acuerdo que modernizará sus operaciones policiales y fomentará sus esfuerzos continuos por prevenir y abordar prácticas discriminatorias de aplicación de la ley.
En mayo del 2022, el Departamento de Justicia recibió una queja de la Universidad Estatal de Delaware (DSU, por sus siglas en inglés), una universidad tradicionalmente negra, que alegó que la LCSO discriminó a sus atletas estudiantes, entrenador y conductor cuando realizó una parada de tránsito racista en Georgia de un autobús fletado por la DSU. Después de la parada de tránsito, la Universidad alegó que la posterior interrogación y el registro de las pertenencias personales de los pasajeros, que eran principalmente negros –lo que incluyó el uso de un perro detector de drogas– constituyó discriminación racista ilícita, en contra del Título VI de la ley de Derechos Civiles (Título VI). El Título VI prohíbe la discriminación por motivos de raza, color de piel y nacionalidad de origen por parte de beneficiarios de fondos federales. La LCSO es un beneficiario de fondos federales provenientes del Departamento de Justicia.
«La justicia y la equidad racial son principios fundamentales en la aplicación eficaz de la ley, sobre todo para aquellas agencias que son beneficiarios de fondos federales». comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Los estudiantes y personal de la Universidad Estatal de Delaware merecen una vigilancia policial que sea equitativa a nivel racial y libre de sesgos. El acuerdo que hemos alcanzado con la Oficina del Sheriff del Condado de Liberty ayudará a garantizar que, en el futuro, sus prácticas de vigilancia policial sean libres de discriminación y sesgos raciales. Seguiremos trabajando para asegurar que las agencias de aplicación de la ley que se beneficien de fondos federales cumplan con nuestras leyes federales de derechos civiles».
«La aplicación de la ley es lo más eficaz cuando viene acompañada de la confianza pública», afirmó Jill E. Steinberg, la Fiscal Federal para el Distrito Sur de Georgia. «El acuerdo que se ha anunciado hoy representa un paso hacia garantizar una vigilancia policial equitativa».
Conforme el acuerdo, la LCSO revisará sus políticas de vigilancia policial libre de sesgos, actualizará sus políticas para los registros de tránsito y la aplicación de las leyes de tránsito, según sea necesario, y desarrollará e implementará procedimientos de recopilación de datos, entre otras disposiciones.
La ejecución del Título VI representa una de las prioridades principales de la División de Derechos Civiles. Para más información sobre la División de Derechos Civiles, visite su sitio web en www.justice.gov/crt-espanol. Miembros del público también pueden informar de posibles vulneraciones de derechos civiles en https://civilrights.justice.gov/report/.
Agreement.pdfCourt Enters $487 Million Judgment Against Precision Lens and Owner Paul Ehlen for Paying Kickbacks to Doctors in Violation of the False Claims ActRead the Press Release
ST. PAUL, Minn. – U.S. District Judge Wilhelmina M. Wright has entered a judgment against Defendants Cameron-Ehlen Group, Inc. dba Precision Lens and its owner Paul Ehlen in the amount of $487,048,705.13.
On February 27, 2023, a federal civil jury concluded that the Defendants violated the False Claims Act and the Anti-Kickback Statute by paying kickbacks to ophthalmic surgeons to induce their use of the Defendants’ products in cataract surgeries reimbursed by Medicare. The jury found that 64,575 false claims were submitted to Medicare due to the Defendants’ conduct, which resulted in $43,694,641.71 in damages to Medicare.
Under the False Claims Act (FCA), a person or entity found to have violated the FCA is liable to the United States Government for a minimum civil penalty of $5,000 per false claim and three times the amount of damages sustained by the Government. In this matter, the amount included $358,445,780 in statutory penalties and an additional $131,083,925.13 in trebled damages, resulting in a total amount of $489,529,705.13, less $2,481,000 in proceeds from a previous settlement with Sightpath Medical.
As proven at trial, the Defendants provided kickbacks to physicians in various forms, including travel and entertainment. The United States identified multiple examples of trips, including high-end skiing, fishing, golfing, hunting, sporting, and entertainment vacations, often at exclusive destinations. For many of the trips, the Defendants transported physicians to luxury vacation destinations on private jets. These included trips to New York City to see a Broadway musical, the College Football National Championship Game in Miami, Florida, and the Masters golf tournament in Augusta, Georgia. The Defendants also sold frequent flyer miles to their physician customers at a significant discount, enabling the physicians to take personal and business trips at well below fair market value.
“This judgment affirms Congress’ intent to hold individuals and companies accountable when they use illegal kickbacks to defraud federal healthcare programs,” said Bahram Samie, Deputy Civil Chief for the United States Attorney’s Office for the District of Minnesota. “Medicare beneficiaries are entitled to know with certainty that their physician’s decision-making has not been compromised by a private flight, expensive ski-trip, or any other unlawful inducement. This office is committed to investigating misconduct and recovering funds unlawfully obtained from federal healthcare programs.”
The United States also proved that Precision Lens maintained a fund, referred to internally at Precision Lens as a secret fund or slush fund, in furtherance of its kickback scheme. Precision Lens used money from the secret fund to finance multiple physician trips.
The United States previously announced a $12 million settlement of related allegations with Sightpath Medical, Inc. and TLC Vision Corporation (collectively Sightpath) and their former CEO, James Tiffany. Dr. Jitendra Swarup also resolved claims that he had accepted kickbacks in a settlement agreement of more than $2.9 million.
This civil lawsuit was originally brought by a Relator, or whistleblower, under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government for false claims and to share in any recovery. The government often relies on whistleblowers to bring fraud schemes to light that might otherwise go undetected. The whistleblower in this matter, Kipp Fesenmaier, will receive a percentage of the amounts awarded at trial.
The case was handled by the Civil Division of the U.S. Attorney’s Office for the District of Minnesota, including AUSAs Chad Blumenfield, Bahram Samie, and Andy Tweeten and paralegals Darcie Boschee and Laura Kolars. The case was investigated with assistance from the Office of Inspector General of the U.S. Department of Health and Human Services and the Federal Bureau of Investigation.
Chicago Man Convicted of Drug and Firearm OffensesRead the Press Release
URBANA, Ill. – A federal jury returned a guilty verdict on May 5, 2023, against Tyrone L. Fulwiley, 40, of the 12900 block of South Sangamon Street in Chicago, for possession of 500 grams or more of cocaine with intent to distribute, possession of a firearm by a felon, and possession of a firearm in furtherance of a drug-trafficking offense. Sentencing for Fulwiley has been scheduled on September 11, 2023, at the U.S. Courthouse in Urbana, Illinois.
Over four days of testimony, the government presented evidence establishing that Fulwiley and his co-defendant, Deandre Maxwell, possessed over 630 grams of cocaine inside a shared apartment on Plymouth Drive in Champaign, Illinois, which was packaged and intended for distribution. Also inside the shared apartment, Fulwiley and Maxwell possessed two untraceable “ghost guns,” despite both men being convicted felons. Those firearms had a DNA profile matching Fulwiley’s DNA, and he possessed them in furtherance of his drug trafficking activities.
Fulwiley remains in the custody of the United States Marshal Service. At sentencing, Fulwiley faces statutory penalties of up to life imprisonment, fines not to exceed $8,000,000 and not less than an eight-year term of supervised release.
Maxwell previously pleaded guilty in March 2023 to possession of 500 grams or more of cocaine with intent to distribute, possession of a firearm by a felon, and possession of a firearm in furtherance of a drug-trafficking offense. He is scheduled for sentencing on July 24, 2023, at the U.S. Courthouse in Urbana, Illinois.
The case investigation was conducted by the Drug Enforcement Administration and the Champaign County Street Crimes Task Force, with assistance from the Illinois State Police Forensic Laboratory. Assistant U.S. Attorneys Rachel Ritzer and Bryan Freres represented the government at trial.
Cape Girardeau Man Sentenced to 51 Months in Prison for Possessing Machine GunRead the Press Release
CAPE GIRARDEAU – U.S. District Judge Matthew T. Schelp on Monday sentenced a man from Cape Girardeau, Missouri who was caught with a fully automatic Glock pistol to 51 months in prison.
Kaydence K. Robertson, 21, was driving a speeding vehicle that was pulled over by the Cape Girardeau Sheriff’s Office on Oct. 23, 2022. A deputy found a backpack on the floor of the front driver’s side of the vehicle containing marijuana, suspected crack cocaine and a .45-caliber Glock pistol modified with an illegal 3D-printed “switch” to make it fully automatic. Under the driver’s seat, the deputy found pills containing oxycodone and a loaded 9mm Glock pistol.
Glock switches, sometimes referred to as “auto sears,” are considered machine guns under federal law, even if not installed in a firearm.
Robertson pleaded guilty in February to one count of possession of a machine gun.
The case was investigated by the Cape Girardeau Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Christopher Shelton is prosecuting the case.
Canadian Man Sentenced to 32 Years in Federal Prison for Production of Child Pornography and Extortion Related to His “Sextortion” of Five Minor VictimsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis today sentenced Muhammad Luqman Rana, age 33, of City of Vaughan, Ontario, to 32 years in federal prison, followed by lifetime supervised release, for producing image and videos depicting the sexual abuse of children and for extortion related to an online “sextortion” scheme.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Myron Demkiw of the Toronto Police Services (Canada).
According to his guilty plea and other court documents, from June 2014 to June 2016, Rana used a free online chat website to target adult and minor victims living in the United States and Canada to produce sexually explicit images. Rana tricked five minor U.S. victims, who ranged from ages 12 to 17, into producing sexually explicit images because they believed they were chatting with a young male. Rana surreptitiously captured two of the minor victims changing in their bedrooms after they had accidentally left their webcam on after chatting with him. Once Rana had embarrassing and sensitive videos of his victims, he forced them to produce and send additional sexually explicit images and videos via both live transmission and to his email account out of fear that he would publicly post the videos he had previously obtained if they did not comply with his demands. Rana’s victims were terrorized by him almost daily for months, and some for over a year.
The Canadian York Regional Police executed a search warrant on Rana’s residence and seized digital evidence which was made available to U.S. law enforcement and Canada agreed to extradite Rana to the United States. In January 2021, Rana was arrested in Canada on a provisional arrest warrant
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron and Assistant Attorney General Kenneth A. Polite, Jr. commended the FBI and the Toronto Police Services for their work in the investigation and recognized the Justice Department’s Office of International Affairs conducted the requests for mutual legal assistance and extradition. Mr. Barron and Mr. Polite thanked Assistant U.S. Attorney G. Michael Morgan, Jr. and Senior Trial Attorney Jennifer Leonardo of the Justice Department’s Criminal Child Exploitation and Obscenity Unit, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Bedford Man Sentenced to 14 Months in Federal Prison After Stealing 16 Firearms from Local Gun ShopRead the Press Release
NEW ALBANY- Calvin Levi Johnson, 20, of Bedford, Indiana, was sentenced to 14 months in federal prison after pleading guilty to theft from a federally licensed firearms dealer.
According to court documents, on January 11, 2022, at approximately 2:11 in the morning, officers with the Bedford Police Department (BPD) responded to a burglary alarm at a local Knife and Gun shop.
Investigation of surrounding security cameras showed Calvin Levi Johnson using a hammer to break a display case, remove 16 handguns from the case, and place them inside a backpack. BPD obtained a search warrant for Johnson’s residence where they found four firearms inside a black “Champion” book bag on the floor by his bed. All of the stolen firearms have been located and confiscated by law enforcement.
“Thefts from gun retailers help to arm criminals and drive the violence in our communities,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “Identification and prosecution of gun traffickers helps to stem violent crime at its source and is a top priority for federal law enforcement. I commend the ATF, Indiana State Police, and the Bedford Police Department for their efforts to hold this criminal accountable and track down all of the stolen guns to ensure they aren’t in the hands of dangerous, prohibited individuals.”
“Stolen firearms are a significant source of crime guns for violent criminals,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “As the federal agency with both a responsibility to investigate violent firearms crimes and regulatory oversight of the firearms industry, we are committed to finding those responsible for burglaries like this one. We will join with our partners to bring them to justice and disrupt the flow of firearms from lawful commerce to the criminal element.”
ATF investigated this case, with valuable assistance provided by the Indiana State Police and the Bedford Police Department. The sentence was imposed by U.S. District Court Chief Judge, Tanya Walton Pratt. Judge Pratt also ordered that Johnson be supervised by the U.S. Probation Office for 2 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Jayson W. McGrath, who prosecuted this case.
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Amory Man Sentenced to Prison for Drug Distribution SchemeRead the Press Release
Oxford, MS – An Amory man was sentenced today to 18 years in prison for possession with intent to distribute methamphetamine.
According to court documents, Michael Wright, 40, of Amory, Mississippi pled guilty to possession with intent to distribute more than 50 grams of methamphetamine in February. Court records show that Wright received more than two pounds of methamphetamine in the mail that he intended to distribute.
Senior U.S. District Court Judge Glen H. Davidson sentenced Wright to 216 months of incarceration to be followed by a 5-year term of supervised release.
“When criminals seek to inject poison into our communities, the United States Attorney’s Office will do everything we can to hold them accountable for it,” said U.S. Attorney Clay Joyner. “We hope that this sentence will serve as a deterrent to others who would consider engaging in the illegal drug trade.”
“Illegal drugs have no business being a part of the mail stream,” said Scott Fix, Inspector in Charge of the Houston Division of the U.S. Postal Inspection Service. “Postal Inspectors work tirelessly to rid the mail of illicit and dangerous drugs and provide a safe environment for postal employees and Postal Service customers. Today’s sentencing of Michael Wright demonstrates that Postal Inspectors will never tolerate this abuse of the US Mail. We thank the Monroe County Sheriff’s Office for their assistance in bringing this criminal to justice.”
The U.S. Postal Inspection Service investigated the case.
Assistant U.S. Attorney Paul D. Roberts prosecuted the case.
American living in Brazil admits to business email compromise schemeRead the Press Release
HOUSTON – A 58-year-old U.S. citizen has pleaded guilty to wire fraud, announced U.S. Attorney Alamdar S. Hamdani.
Michael Knighten aka Michael Sabatine had been living in Brazil but was extradited in June 2022.
Knighten admitted he participated in a business email compromise (BEC) scheme which defrauded a number of companies including several in Houston. Using his alias, he sent fraudulent emails requesting changes to payment information on invoices due to vendors. This included where payments should be made, one of which was to a bank in Las Vegas. However, the accounts were not the vendor’s actual bank account.
He had fraudulently used the name and passport of a relative to contact the owner of this bank account in Las Vegas by email. Knighten had him set up a company and accept deposits and make disbursements until he could come to Las Vegas and set up his own account.
Knighten also used his alias in emails to Bennu Oil and Gas Company in Houston beginning in March 2014. He fraudulently represented himself to be the financial director of Ceona Offshore and requested payments due to Ceona from Bennu. In May 2014, he sent additional emails to Bennu and caused the company to send a wire transfer in the amount of $651,125, to a bank account in Portugal.
After making this payment, Bennu uncovered the fraud and was able to freeze some of the funds, but still suffered a loss of $224,000.
As part of his plea, Knighten admitted the companies he defrauded suffered total losses of over $3 million.
“Knighton defrauded several companies, large and small, out of millions of dollars using business email compromise schemes,” said Hamdani. “BEC scams have become a serious problem, targeting not just companies but individuals, often from the comfort of an overseas hideaway. Despite that, we will not rest until we bring scammers, like Knighton, to justice, no matter where they reside. Note that criminals will continue to use phishing emails to try to obtain important information which can lead to serious financial losses. So, stay alert!”
U.S. District Judge Lee H. Rosenthal will impose sentencing Aug. 31. At that time, Knighten faces up to 20 years in prison and a possible $250,000 maximum fine.
Knighten has been and will remain in custody pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Akron Man Sentenced on Drug Trafficking and Firearm ChargesRead the Press Release
CLEVELAND – Alex R. Andrus, 31, of Akron, Ohio, was sentenced on Tuesday, May 9, 2023, to 115 months in prison by U.S. District Judge Dan Aaron Polster after he pleaded guilty to possession with intent to distribute fentanyl and methamphetamine and being a felon in possession of a firearm and ammunition.
According to court documents, during the execution of a search warrant at Andrus’ Akron home on March 8, 2022, Andrus possessed fentanyl and more than 200 pills containing methamphetamine, which he intended to sell to drug customers, as well as a loaded pistol. Andrus is prohibited under federal law from possessing a firearm due to previous felony convictions.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation and the Akron Police Department.
This case was prosecuted by Assistant United States Attorney Peter E. Daly.
Adair County Resident Pleads Guilty to Aggravated Sexual Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Bryan Udale Jones, 63, of Stilwell, Oklahoma, entered a guilty plea to Aggravated Sexual Abuse in Indian Country, which is punishable by not less than thirty years imprisonment.
Government prosecutors alleged that beginning in 2003 and continuing until 2010, the defendant engaged in sexual acts with a child who had not yet attained the age of 12. As a part of the plea allocution, the defendant also admitted to sexually assaulting three other children, all less than 12 years old at the time of the abuse.
The charges arose from an investigation by the Adair County Sheriff’s Office and the Federal Bureau of Investigation.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant is a member of a federally recognized Indian tribe and the crimes occurred in Adair County, within the boundaries of the Cherokee Nation Reservation, and within the Eastern District of Oklahoma.
The Honorable Jason A. Robertson, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the pleas and ordered the completion of a presentence investigation report. Sentencing will be scheduled following completion of the report. Jones was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorneys Nicole Paladino and Anthony C. Marek represented the United States.
Ada Resident Sentenced for Manslaughter in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Nathan Paul Nolen, age 47, of Ada, Oklahoma, was sentenced for driving while under the influence of methamphetamine and causing a fatal car crash. Nolen was sentenced to 68 months in prison for Manslaughter in Indian Country.
The charges arose from investigations by the Oklahoma Highway Patrol and the Federal Bureau of Investigations.
On May 10, 2022, Nolen pleaded guilty to Manslaughter in Indian Country. According to investigators, the defendant was driving under the influence of methamphetamine when he crossed the center line of State Highway 3 in Pontotoc County, Oklahoma. The defendant struck an oncoming vehicle, killing two passengers and seriously injuring a third.
“No sentence will fully heal the pain from this tragic loss of two innocent lives,” said FBI Oklahoma City Special Agent in Charge Edward J. Gray. “But it is important for our community to see such careless actions come with very serious consequences. The FBI and our law enforcement partners will continue to hold accountable those who engage in criminally reckless violence.”
“The defendant’s decision to ingest methamphetamine and drive a motor vehicle resulted in a disastrous collision and loss of life,” said United States Attorney Christopher J. Wilson. “My heart goes out to the families of the victims, and I can only hope the sentence imposed will deter the defendant and others from driving under the influence and endangering the lives of others.”
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted these cases because the victim is a member of a federally recognized Indian tribe and the crimes occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation and within the Eastern District of Oklahoma.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, presided over the hearings in Muskogee. Nolen will remain in custody of the U.S. Marshal pending transportation to a designated United States Bureau of Prisons facility to serve a non-paroleable sentence of incarceration.
Assistant United States Attorney Zachary W. Parsons represented the United States.
13 May 2023
U.S. Attorney's Office Observers National Police WeekRead the Press Release
CHARLOTTE, N.C. – In observance of National Police Week, the U.S. Attorney’s Office for the Western District of North Carolina recognizes the service and sacrifice of federal, state, local, and Tribal law enforcement and pays tribute to the officers who have fallen in the line of duty.
In 1962, President John F. Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty.
“During National Police Week, we honor and remember the law enforcement officers who sacrificed their lives in the line of duty,” said U.S. Attorney Dena J. King. “We remember their bravery, their service, and their willingness to put themselves at harm’s way to protect the lives of others. We also pledge our support to our federal, state, local and Tribal law enforcement officers for their dedication and for serving our communities with honor, dignity, and excellence.”
This year, the names of 556 law enforcement officers killed in the line of duty were added to the National Law Enforcement Officers Memorial (NLEOMF) in Washington D.C., to include Master Trooper John Sumter Horton with the North Carolina Highway Patrol of Western North Carolina, who died on January 3, 2022. An additional 332 officers added to the Memorial died earlier in history but their names and stories of sacrifice had not been previously documented. There are currently 23,785 names engraved on the Memorial, representing law enforcement officers from all 50 states, the District of Columbia, territories, federal law enforcement, and military police agencies.
The names of the fallen officers added to the Memorial this year will be read on Saturday, May 13, 2023, at the 35th Annual Candlelight Vigil in Washington, D.C., starting at 8:00 p.m. EST. The Candlelight Vigil will be livestreamed on the NLEOMF YouTube channel at https://www.youtube.com/TheNLEOMF. The schedule of National Police Week events is available on NLEOMF’s website.
Massachusetts Man Indicted for Acting as an Illegal Agent of the People's Republic of ChinaRead the Press Release
BOSTON – A Massachusetts man was arrested on May 9 for allegedly acting as an agent of the People’s Republic of China (PRC) without providing notification to the U.S. Attorney General.
Litang Liang, 63, of Brighton, was indicted on one count of acting as an agent of a foreign government without providing notification to the U.S. Attorney General and one count of conspiracy to act as an agent of a foreign government without providing notification to the U.S. Attorney General.
According to the charging documents, from in or around 2018 through at least 2022, Liang acted within the United States as an agent of the PRC government by allegedly providing PRC government officials with information on Boston-area individuals and organizations; organizing a counter-protest against pro-democracy dissidents; providing photographs of and information about dissidents to PRC government officials; and providing the names of potential recruits to the PRC’s Ministry of Public Security. At no point did Liang notify the U.S. Attorney General that he was acting as a PRC government agent.
Specifically, beginning in or around 2018, Liang allegedly provided information about Chinese individuals and organizations in the Boston area to PRC government officials – including PRC officials formerly in the United States, the Ministry of Public Security, and the United Front Work Department, an entity which reports directly to the Central Committee of the Chinese Communist Party (CCP) and works to further the CCP’s goals.
It is alleged that Liang provided PRC government officials with information regarding members and leaders of Boston-area, Chinese family associations and community organizations with pro-Taiwan leanings. Additionally, it is alleged that Liang sent information regarding anti-PRC dissidents to PRC officials including: identification of an individual he accused of having “sabotaged” PRC flags in Boston’s Chinatown in October 2018; video of a dissident attending the “Boston Stands with Hong Kong” march in August 2019; and photographs of anti-PRC dissidents in front of the Boston Public Library in September 2019.
The charge of acting as an agent of a foreign government without providing notification to the U.S. Attorney General provides for a sentence of up to 10 years in prison, three years supervised release, and a fine of up to $250,000. The charge of conspiracy to act as an agent of a foreign government without providing notification to the U.S. Attorney General provides for a sentence of up to five years in prison, three years supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; Assistant Director Suzanne Turner of the FBI Counterintelligence Division; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Timothy H. Kistner for the District of Massachusetts is prosecuting the case. Valuable assistance was provided by Trial Attorney Elizabeth Abraham of the Justice Department’s Counterintelligence and Export Control Section.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
12 May 2023
Wilmington Man Federally Indicted for Possessing over a Kilogram of CocaineRead the Press Release
WILMINGTON, Del. – A federal grand jury returned an indictment yesterday charging a Wilmington man with possession of over a kilogram of cocaine with intent to distribute it.
According to the indictment and statements made in open court, Aaron Cephas, a/k/a “Ace,” age 41, was the subject of a Drug Enforcement Administration investigation. On April 10, 2023, surveillance officers saw Cephas moving bags into and out of a house in Newark, Delaware, and thereafter getting into a Jeep and driving to the 800 block of West 5th Street in Wilmington. Law enforcement officers stopped the Jeep there, finding Alprazolam pills and $1,000 on Cephas’ person and over 80 grams of cocaine in the Jeep. Agents subsequently searched the house in Newark where Cephas had been seen and found approximately 1 kilogram of cocaine, $27,000, and a loaded handgun magazine.
Cephas is charged with two counts of possession with intent to distribute cocaine. If convicted, he faces a maximum penalty of 20 years in prison for each count. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
David C. Weiss, U.S. Attorney for the District of Delaware, and Thomas Hodnett, Special Agent in Charge for the Philadelphia Division of the Drug Enforcement Administration, made the announcement. The Wilmington Department of Police assisted with the investigation and Assistant U.S. Attorney Jennifer K. Welsh is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 23-43.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Wilmington Man Federally Indicted for Possessing over a Kilogram of CocaineRead the Press Release
WILMINGTON, Del. – A federal grand jury returned an indictment yesterday charging a Wilmington man with possession of over a kilogram of cocaine with intent to distribute it.
According to the indictment and statements made in open court, Aaron Cephas, a/k/a “Ace,” age 41, was the subject of a Drug Enforcement Administration investigation. On April 10, 2023, surveillance officers saw Cephas moving bags into and out of a house in Newark, Delaware, and thereafter getting into a Jeep and driving to the 800 block of West 5th Street in Wilmington. Law enforcement officers stopped the Jeep there, finding Alprazolam pills and $1,000 on Cephas’ person and over 80 grams of cocaine in the Jeep. Agents subsequently searched the house in Newark where Cephas had been seen and found approximately 1 kilogram of cocaine, $27,000, and a loaded handgun magazine.
Cephas is charged with two counts of possession with intent to distribute cocaine. If convicted, he faces a maximum penalty of 20 years in prison for each count. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
David C. Weiss, U.S. Attorney for the District of Delaware, and Thomas Hodnett, Special Agent in Charge for the Philadelphia Division of the Drug Enforcement Administration, made the announcement. The Wilmington Department of Police assisted with the investigation and Assistant U.S. Attorney Jennifer K. Welsh is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 23-43.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Watertown Man Sentenced to 144 Months for Attempted Enticement of a Minor and Distribution of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – Conner Spells, age 24, of Watertown, New York was sentenced yesterday to serve 144 months in prison and 10 years of supervised release for the attempted enticement of a minor he believed was 10 years old and for distribution of child pornography. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
When Spells pled guilty he admitted that, in October 2021, he exchanged multiple sexually explicit messages online with an undercover officer to arrange a sexual encounter with a 10-year-old child the undercover officer purported to have access to and could provide for sex. Spells also admitted that, during his text message communications with the undercover officer, he distributed child pornography to the officer and traveled from the Watertown, New York area to the Binghamton, New York area as arranged for the sexual encounter.
Spells’s case was investigated by the FBI Syracuse Mid-State Child Exploitation Task Force. This task force is comprised of FBI Special Agents and Investigators of the New York State Police, Bureau of Criminal Investigation (BCI) and was prosecuted by Assistant U.S. Attorney Michael D. Gadarian as a part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Waldorf Man Sentenced to over Three Years in Federal Prison for Possession of Child PornographyRead the Press Release
Greenbelt, Maryland - U.S. District Judge Paul Xinis today sentenced Jeffrey Darnell Alderson, age 34, of Waldorf, Maryland, to 42 months in federal prison, followed by five years of supervised release, for possession of child pornography. Judge Xinis also ordered that, upon his release from prison, Alderson must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (“SORNA”).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to Alderson’s guilty plea, a man was arrested in Philadelphia in January 2020, on charges relating to the advertisement and sale of child sexual abuse material. Alderson was identified as one of that individual’s customers through social media and financial records. At that time, Alderson was a Mission Support Specialist with the Department of Homeland Security in Washington, D.C. Specifically, Alderson engaged in several conversations via messaging applications between September 2019 and January 2020 and ultimately purchased links to child sexual abuse material that documented the sexual abuse of minor boys, including prepubescent minors. On October 2, 2020, law enforcement executed federal search warrant for the contents of multiple online accounts controlled by Alderson. A review of the information revealed communications with other users whose usernames indicated an interest in child sexual abuse material and searches and visits to websites related to child sexual abuse material.
On March 4, 2021, a search warrant for the contents of Alderson’s online storage account was executed and additional images of minors engaged in sexually explicit conduct were discovered. On May 13, 2021, FBI agents executed a search warrant at Alderson’s residence and seized his cell phone. A subsequent review of the contents of the phone included chats on various platforms about sexually explicit images and videos of children and/or obtaining additional child sexual abuse material. Links to additional images and videos documenting the sexual abuse of children were also found.
The child pornography that Alderson possessed included prepubescent minors and material portraying the sexual abuse of exploitation of an infant or toddler. In total, Alderson possessed over 100 videos and hundreds of images containing child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Timothy F. Hagan, Jr. and Joel Crespo, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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United States Files Complaint Against Telecommunications Service Provider for Assisting and Facilitating Illegal RobocallsRead the Press Release
The Department of Justice, together with the Federal Trade Commission (FTC), today announced a civil enforcement action against XCast Labs, Inc. for allegedly violating the Telemarketing Sales Rule (TSR) by assisting and facilitating illegal telemarketing campaigns.
According to a complaint filed in the U.S. District Court for the Central District of California, XCast Labs, Inc., provided voice over internet protocol (VoIP) services that transmitted billions of illegal robocalls to American consumers, including scam calls that fraudulently claimed to be from government agencies. These robocalls delivered prerecorded marketing messages, and many of them were delivered to numbers listed on the National Do Not Call Registry, failed to truthfully identify the seller of the services being marketed, falsely claimed affiliations with government entities, contained other false or misleading statements to induce purchases, or were transmitted with “spoofed” caller ID information. The complaint alleges that XCast Labs continued to allow its services to transmit these calls even after being alerted to their illegality.
The complaint seeks monetary civil penalties and a permanent injunction to prohibit the defendant from future violations.
“The Department of Justice is committed to stopping telecommunications providers from enabling unscrupulous telemarketers to bombard American consumers with illegal robocalls,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to work with the FTC to enforce the Telemarketing Sales Rule.”
“XCast Labs played a key role in helping telemarketers flood homes with unlawful robocalls, including robocalls impersonating the Social Security Administration,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “VoIP providers like XCast Labs that bury their heads in the sand when their customers use their services to break the law can expect to hear from the FTC.”
A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.
The case is being handled by attorneys in the Civil Division’s Consumer Protection Branch, including Trial Attorney Zachary A. Dietert, in conjunction with staff at the FTC’s Division of Marketing Practices.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.
United States Attorney Brandon B. Brown and Staff Mourn the Passing of Senior U.S. District Court Judge Michael J. JuneauRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown and the staff of the United States Attorney’s Office for the Western District of Louisiana mourn the passing of Senior United States District Court Judge Michael J. Juneau and issue the following statement:
“Judge Michael J. Juneau was a great American jurist and the consummate professional on and off the bench exhibiting textbook judicial temperament, especially when faced with tense situations during litigation. While in private practice, he was well known and respected throughout the state for being highly skilled in complex civil litigation. Although his time with us on the bench in the Western District of Louisiana was brief by Article III federal judge standards, it was impactful, and he will be missed. The employees of the Western District of Louisiana’s United States Attorney’s Office will keep his wife, Becky, and their children, lifted in prayer and our thoughts during this difficult time.”
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U.S. Attorney’s Office Uses Civil Forfeiture to Recover $95,325.29 for Fraud VictimRead the Press Release
Jackson, Miss. – On May 10, 2023, U.S. District Judge Sul Ozerden entered Final Judgment of Forfeiture against $95,325.29 in U.S. Currency seized from a Merchant and Marine Bank Account, announced U.S. Attorney Darren J. LaMarca. According to the Verified Complaint for Forfeiture in Rem filed by the U.S. Attorney’s Office, the Merchant and Marine Bank Account had been set up by a conspirator in a business email compromise scheme (BEC) to receive fraud proceeds.
A BEC is a sophisticated scam, often targeting businesses involved in wire transfer payments. The fraud is carried out by compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques. It causes employees of the victim company (or other individuals involved in legitimate business transactions with them) to transfer funds to accounts the scammers control.
The complaint was filed Feb. 27, 2023, alleging that on August 31, 2020, the victim’s husband received an email from the title company handling the couple’s closing on the purchase of a home. This email was legitimate and contained accurate wiring instructions, but on September 1, 2020, the victim received a second email with false wiring instructions. The spoofed email appeared to be from the couple’s title company and listed the account to which the funds were to be transferred as a Merchant and Marine Bank Account, which a conspirator had opened on August 31, 2020.
The victim followed the instructions in the fraudulent email and wired funds into the Merchant and Marine Bank Account. On September 2, 2020, the victim realized the fraudulent email after receiving a call from the title company about the closing costs. By that time, a conspirator had already sent a wire transfer, purchased a cashier’s check made payable to herself, and made a sizable cash withdrawal.
The victim’s husband contacted Merchant and Marine Bank, which froze the remaining funds in the account and placed a stop payment on the cashier’s check. On March 20, 2023, the victim filed a claim in the civil forfeiture proceeding and filed a subsequent answer, in which she explained that she had been the victim of the fraud scheme. The U.S. Attorney’s Office entered into a Stipulated Settlement Agreement with the victim and asked the Court to enter a Final Judgment ordering the return of the $95,325.29 to the victim and canceling the interests of any other person or entity.
The Federal Bureau of Investigation conducted the investigation. The USAO Asset Recovery Unit team led by AUSA Clay B. Baldwin handled the matter. The Government would like to thank Merchant & Marine Bank for its cooperation in this matter.
Business Email Compromise schemes can be prevented. Here are some tips:
• Independently obtain mortgage payoff statements and confirm with verified and trusted sources.
• Independently verify the authenticity of information included in correspondence and statements.
• Enable Multi-Factor Authentication (MFA) on all email accounts.
• Routinely change passwords.
• Routinely monitor email account access, check for unauthorized email rules and forwarding settings.
• Restrict wire transfers to known and previously verified accounts.
• Pay using checks when the information cannot be independently verified.
• Have a clear and detailed Incident Response Plan.
For more information visit the Secret Service’s Preparing for a Cyber Incident page. To learn more about the Secret Service and efforts to combat Business Email Compromise fraud, please click here.
U.S. Attorney Roger Handberg Recognizes Police WeekRead the Press Release
Tampa, FL - In honor of National Police Week, United States Attorney Roger Handberg recognizes the service and sacrifice of federal, state, and local law enforcement. This year, national events are taking place in Washington, D.C. on Wednesday, May 10 through Monday, May 15, 2023.
“Each day, law enforcement officers across America answer the call to uphold the law, preserve the peace, and protect all of us from harm,” said U.S. Attorney Handberg. “This sacred duty comes with great responsibility and oftentimes at great risk. This week, our District remembers the men and women who have paid the ultimate price while answering the call to public service and supports those who continue to serve the people of Florida and across our nation.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), 118 law enforcement officers died nationwide in the line of duty in 2022. During this period, four officers have died in the line of duty in the Middle District of Florida.
Additionally, according to 2022 statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 60 law enforcement officers who died in the line of duty in 2022 were killed as a result of felonious acts, whereas 58 died in accidents. Deaths resulting from felonious acts decreased 17.8% in 2022, when compared to the 73 officers who were killed as a result of criminal acts in 2021. Additional LEOKA statistics can be found on FBI’s Crime Data Explorer website for the LEOKA program.
The names of 556 fallen officers added this year to the wall at the National Law Enforcement Officer Memorial will be read on Saturday, May 13, 2023, during a Candlelight Vigil (https://nleomf.org/event/35th-annual-candlelight-vigil/) in Washington, D.C., starting at 8:00 PM EDT. Those who wish to view the vigil live online, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/TheNLEOMF. The schedule of National Police Week events is available on NLEOMF’s website.
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Reference to any specific organization or service(s) offered by an organization is for the information and convenience of the public, and does not constitute endorsement, recommendation, or favoring by the United States Department of Justice.
U.S. Attorney Expresses Condolences for Fallen Cameron Police Officer, Honors Law Enforcement Partners During Police WeekRead the Press Release
SAN ANTONIO – In honor of National Police Week, U.S. Attorney Jaime Esparza recognizes the dedication, service and sacrifice of federal, state, local and tribal law enforcement officers. This year, the week is observed Sunday, May 14 through Saturday, May 20. A livestreamed candlelight vigil on the National Mall in Washington D.C. will signify the start of the commemoration, Saturday, May 13 at 8pm EST.
President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week in 1962 to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which falls on May 15 each year, honors law enforcement officers killed or disabled in the line of duty. Based on data analyzed by the National Law Enforcement Officers Memorial Fund, 226 federal, state, local and tribal law enforcement officers nationwide died in the line of duty in 2022.
“This is a week for all of us across the nation to recognize and appreciate the dedication of the brave men and women who put their lives on the line every day to keep our communities safe,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “As the U.S. Attorney, I thank our federal, state, local and tribal law enforcement partners in this district for their commitment to protecting our citizens and upholding the rule of law. We stand with them in solidarity and pledge to continue working together to build safer and stronger communities.”
On Wednesday, a Cameron Police Officer was fatally shot by a subject while executing a search warrant in Cameron, south of Waco. The Milam County Sheriff’s Office identified the officer as Sergeant Joshua Clouse, a U.S. Army veteran who is survived by his wife and two children.
“The loss of Sgt. Clouse is a difficult reminder of why we recognize Police Week and I extend my deepest sympathies to his family, friends and those who served by his side,” said U.S. Attorney Esparza. “We are grateful for his service and sacrifice in protecting his community. His memory should be forever honored.”
For further details about National Police Week, visit NationalPoliceWeek.org, or learn more from the principal organizer of the week, the National Law Enforcement Officers Memorial Fund, at NLEOMF.org.
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Two St. Petersburg Men Plead Guilty to Possession of Controlled Substances with Intent to DistributeRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces that Armani Dilworth (28, St. Petersburg) and Lemar Cowart (27, St. Petersburg) have pleaded guilty to possessing controlled substances with the intent to distribute them. Each faces up to 20 years in federal prison. Dilworth has also pleaded guilty to possessing a firearm during a drug trafficking offense and faces a minimum mandatory penalty of five years, up to life, in federal prison for the firearm offense, to run consecutive to the other sentence imposed. Sentencing dates have not yet been set.
According to court documents, on May 4, 2020, an eyewitness observed a vehicle, occupied by Dilworth and Cowart, pull into oncoming traffic and shoot into the front of another vehicle. This action caused the other vehicle to retaliate, and a high-speed chase ensued. The car which Dilworth and Cowart occupied ultimately crashed into a gate at Azalea Middle School, and Cowart and Dilworth ran from the vehicle. Inside the vehicle, officers found cocaine, two substances containing a mixture of heroin and fentanyl, alprazolam, oxycodone, amphetamine, buprenorphine, and cannabis. They also found evidence of narcotics distribution inside the vehicle including plastic baggies, two scales, scissors, and a firearm. Both Dilworth and Cowart’s DNA were found on the firearm recovered from the vehicle.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney Samantha Newman. The forfeiture is being handled by Assistant United States Attorney James Muench.
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.
Two St. Paul Men Indicted for Assaulting a Federal AgentRead the Press Release
MINNEAPOLIS – Two St. Paul men have been indicted for conspiracy and assault of a federal law enforcement officer, announced U.S. Attorney Andrew M. Luger.
According to court documents, on March 30, 2023, Dion Darnell Miller, 27, and Aaron Maurice Admir Harris, 29, conspired with each other to assault, intimidate, and interfere with a law enforcement agent, who was engaged in their official duties, by use of a deadly and dangerous weapon, namely a 9mm Taurus Model semi-automatic handgun.
The indictment charges Miller and Harris with one count of conspiracy to assault a federal law enforcement officer, one count of assault upon a federal law enforcement officer, and one count of brandishing a firearm during and in relation to a crime of violence. The defendants made their initial appearances on April 3, 2023, in U.S. District Court before Magistrate Judge Tony N. Leung. They were ordered to remain in federal custody pending further court proceedings.
This case is the result of an investigation conducted by the Drug Enforcement Administration, Homeland Security Investigations, the Ramsey County Violent Crimes Enforcement Team, the Minnesota Bureau of Criminal Apprehension, and the St. Paul Police Department.
Assistant U.S. Attorney Allen A. Slaughter is prosecuting the case.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Gang Members Sentenced for Sexual Assault and Firearms ChargesRead the Press Release
United States Attorney Steven Russell announced that two No Name Demon gang members were sentenced on May 11, 2023 for their roles in the video recorded gang rapes of two minor females in Lincoln, Nebraska. One victim was 16 years old at the time of the assault and the other was 14 years old. Senior United States District Judge John M. Gerrard sentenced Isaiah Dorsey, 21, of Lincoln to 240 months, or 20 years, in federal prison for conspiracy to produce child pornography. Krysean Reynolds, 21, of Lincoln, Nebraska was sentenced to 200 months in federal prison for producing child pornography.
Investigation revealed that the gang members were tricking young women into Reynolds’s home and then forcing them to participate in painful sexual acts with multiple gang members at the same time, and one victim had a cut glass bottle forced inside her body against her will. Reynolds and Dorsey recorded the rapes and shared them in the No Name Demon’s group Snapchat. Each of the defendants also pleaded guilty to participating in a firearms conspiracy in furtherance of drug trafficking with other gang members and received concurrent sentences for those offenses of 70 months in federal prison. There is no parole in the federal system. In addition, at the end of their respective terms of federal imprisonment, each of the defendants will be placed on a term of supervised release for 10 years.
Judge Gerrard described the video recorded rapes of the two underage teenage girls as “unspeakable sexual assaults,” and “horrendous” crimes. Judge Gerrard went on to state that young men who are willing to join gangs, tote guns, and promote violence on social media need to be prepared to do serious time. The Court promised to protect the public from these senseless violent acts.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was primarily investigated by the Federal Bureau of Investigation and the Lincoln Police Department.
Two Additional Defendants Charged in Juvenile Overdose CaseRead the Press Release
Two more defendants have been charged in the drug conspiracy that claimed the lives of three teenagers, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Roberta Alexander Gaitan, 20, and Rafael Soliz, Jr., 22, were charged in a superseding indictment filed in March with conspiracy to distribute a controlled substance; Mr. Gaitan was also charged with distribution of a controlled substance to a person under 21 years of age. The charges were unsealed on Tuesday, immediately following the defendants’ arrests. They made their initial appearances before U.S. Magistrate Judge Renee Toliver on Friday and were both ordered detained pending trial.
According to the indictment, Mr. Gaitan and Mr. Soliz allegedly conspired with Jason Xavier Villanueva, Donovan Jude Andrews, Stephan Paul Brinson, Magaly Mejia Cano, and Luis Eduardo Navarrete to traffic counterfeit opioid pills laced with fentanyl to young teens, often via juvenile dealers.
To date, members of the conspiracy are tied to at least 12 juvenile overdoses – three of them fatal – in Carrollton and Flower Mound. The victims span the ages of 13 to 17. The deadly drugs were often advertised via social media.
An indictment is merely an allegation of criminal conduct, not evidence. All conspirators are presumed innocent until proven guilty in a court of law.
If convicted, the defendants face up to 20 years each in federal prison.
The Drug Enforcement Administration’s Dallas Field Office and the Carrollton Police Department conducted the investigation with the assistance of School Resource Officers from the Carrollton – Farmer’s Branch Independent School District and the Lewisville Independent School District. Assistant U.S. Attorneys Phelesa Guy and Rick Calvert are prosecuting the case.
Note: Illicitly produced, fentanyl-laced pills often look similar to legitimate prescription pills like Oxycontin or Percocet, but can pose significantly more danger. On the street, these pills are often referred to as “M30s” (a reference to the markings on some of the pills), “blues,” “perks,” “yerks,” “china girls,” or “TNT.” DEA research shows that six out of ten pills laced with fentanyl contain a potentially lethal dose. One pill can kill. For resources, visit https://www.dea.gov/onepill.
Three Waterloo Fentanyl Dealers Sentenced to Federal PrisonRead the Press Release
Three Waterloo fentanyl dealers were sentenced to federal prison this week.
Sheryl Wellner, age 44, received the prison term after an October 11, 2022 guilty plea to one count of possession with intent to distribute a controlled substance.
Melvin Williams, age 55, received the prison term after a January 8, 2023 guilty plea to one count of conspiracy to distribute a controlled substance.
Justin Jensen, age 41, received the prison term after a January 9, 2023 guilty plea to one count of conspiracy to distribute a controlled substance.
Information at a prior hearing showed that, on August 7, 2021, and August 13, 2021, Wellner distributed heroin to another person in Waterloo, Iowa. Then, on August 18, 2021, law enforcement officers searched Wellner’s residence and recovered almost 10 grams of a heroin/fentanyl mixture and a digital scale.
Information disclosed at their respective sentencing hearings showed that, between March 2022, and May 26, 2022, Williams and Jensen worked together to distribute fentanyl. In late March 2022, Williams distributed an amount of fentanyl to another person, which caused the person to suffer an overdose and die. Then, in early April 2022, Williams distributed fentanyl to Jensen, who in turn distributed it to another person, which caused the person to suffer an overdose and crash their car on a highway in Waterloo. In May 2022, law enforcement officers conducted several controlled purchases from Williams and Jensen before arresting them on May 26, 2022.
All three individuals were sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Wellner was sentenced to 41 months’ imprisonment. She must also serve a six‑year term of supervised release after the prison term. There is no parole in the federal system.
Williams was sentenced to 79 months’ imprisonment. He must also serve a five‑year term of supervised release after the prison term. There is no parole in the federal system.
Jensen was sentenced to 33 months’ imprisonment. He must also serve a three‑year term of supervised release after the prison term. There is no parole in the federal system.
Wellner, Williams, and Jensen are being held in the United States Marshal’s custody until they can be transported to a federal prison.
These case was prosecuted by Assistant United States Attorney Dillan Edwards and were investigated as part of the Northern Iowa Heroin Initiative and the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Federal Bureau of Investigation; the Tri-County Drug Enforcement Task Force consisting of the Waterloo Police Department, Cedar Falls Police Department, Black Hawk County Sheriff’s Department, Evansdale Police Department, Waverly Police Department, Hudson Police Department, La Porte City Police Department, and the Bremer County Sheriff’s Department; and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 22‑CR‑02028 and 22-CR-02034.
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Texas Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – FERMIN RODRIGUEZ-ORTEGA, age 24, a resident of Dallas, Texas, pled guilty, before U.S. District Judge Carl J. Barbier to a two-count indictment charging him with conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846, and possession with intent to distribute 400 grams or more of fentanyl, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), announced U.S. Attorney Duane A. Evans.
According to court documents, on September 27, 2022, RODRIGUEZ-ORTEGA traveled from Dallas, Texas to a Super 8 motel in Covington, Louisiana carrying approximately five kilograms of fentanyl. Based on information obtained through investigation, Homeland Security Investigations agents and St. Tammany Parish Sheriff’s Office deputies encountered RODRIGUEZ-ORTEGA upon his arrival at the motel. Agents then searched his luggage and discovered five kilograms of fentanyl.
As to each count to which he pled guilty, RODRIGUEZ-ORTEGA faces a mandatory minimum sentence of ten years, up to life imprisonment, a fine of up to $10,000,000, at least five years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
This case was investigated by the United States Homeland Security Investigations and St. Tammany Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Tampa Man Convicted in A Conspiracy to Distribute Nearly Four Kilograms of Methamphetamine and over 8,000 Pressed Fentanyl PillsRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that a federal jury has found Victor Yoel Perez Cremades (52, Tampa) guilty of one count of conspiracy to possess with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine and 400 grams or more of fentanyl, and one count of possession with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine and 400 grams or more of fentanyl. Cremades faces a minimum mandatory penalty of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for August 8, 2023. Cremades had been indicted on June 22, 2022.
According to testimony and evidence presented at trial, on September 8, 2021, the FBI served a search warrant at Cremades’s residence located at 4813 N. MacDill Avenue in Tampa. Inside Cremades’s bedroom, agents located a bag containing more than 800 grams of pills pressed to look like oxycodone tablets and over 3,000 grams of methamphetamine. The bag was in the same closet as Cremades’s passport, ID card, and Social Security card.
On the same day, agents intercepted a suspicious package from the mail that was addressed to a fictitious person at 4813 N. MacDill Avenue. The package contained more than 1,300 grams of methamphetamine and over 1,200 fentanyl pills pressed to look like oxycodone tablets. During the search, agents located financial receipts showing Cremades had sent money to the same city from which the suspicious package was mailed.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Samantha Beckman.
Tallahassee Man Indicted for Possessing Methamphetamine with Intent to DistributeRead the Press Release
Ocala, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Brian Keith Coleman (33, Tallahassee) with possession of 50 grams or more of methamphetamine with the intent to distribute it. If convicted, Coleman faces a minimum mandatory term of 10 years, up to life, in federal prison.
According to court documents, a trooper with the Florida Highway Patrol found Coleman’s vehicle broken down on the shoulder of the interstate and, after a probable cause search of the vehicle, found methamphetamine, fentanyl, and marijuana. The trooper also found half a kilogram of methamphetamine where Coleman had been when the trooper first arrived on scene.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by Drug Enforcement Administration, the Tallahassee Police Department, and the Florida Highway Patrol. It will be prosecuted by Assistant United States Attorneys Belkis H. Crockett and Tyrie K. Boyer.