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4 May 2023
Missouri Felon Sentenced to 66 Months in Prison for Selling 7 Machine GunsRead the Press Release
CAPE GIRARDEAU – A man from Dunklin County, Missouri, was sentenced Thursday to five and one-half years in prison for selling seven devices that convert AR-15-style rifles into fully automatic weapons.
U.S. District Judge Stephen N. Limbaugh, Jr. ordered the sentence for Lamad Cross, 24, of Kennett, Missouri, to run consecutive to any sentence he receives for violating his probation in a Dunklin County Circuit Court case. Cross pleaded guilty in 2021 in that case to resisting arrest by fleeing.
“We’ve seen a dramatic increase in the use of these devices on firearms in our area,” said U.S. Attorney Sayler A. Fleming. “They are incredibly dangerous, and anyone contemplating their purchase or use needs to know that we will vigorously prosecute these cases.”
“The possession and use of machine gun conversion devices is an emerging threat to the safety of our communities and the law enforcement officers who are sworn to protect them. This investigation and today’s sentencing send a very clear message that the use of these devices will not be tolerated,” said Bernard Hansen, Special Agent in Charge of ATF’s Kansas City Field Division.
The investigation began when police in Cape Girardeau recovered a Glock pistol that had a “switch” installed that converted it to an automatic weapon. Investigators learned that a straw purchaser bought the pistol for Cross, who is a convicted felon and barred from purchasing or possessing firearms, Cross’ plea agreement says. He was also on probation from two state criminal cases at the time.
A confidential informant working with the Bureau of Alcohol, Tobacco, Firearms and Explosives contacted Cross via social media and asked about buying a Glock switch. Cross instead offered a drop-in “auto sear” that converts an AR-15-style rifle into an automatic weapon. On Sept. 19, 2022, Cross’ girlfriend delivered the device in exchange for $800. Cross later said he would send videos showing how to install the auto sear and said he could offer a lower price for bulk purchases.
On Sept. 27, 2022, Cross met with the informant in Cape Girardeau and sold three auto sears for $650 each. Cross also said that he was thinking about obtaining AR-15s so he could install the auto sears and then sell automatic rifles.
On Oct. 12, 2022, Cross agreed to sell three more auto sears for a total of $1,900 and used a different woman to deliver them to an undercover ATF agent.
He also said he’d sold two of the devices to someone else, although that claim has not been verified.
Although most of the devices were recovered by law enforcement, “Cross’s conduct posed a tremendous risk to the public,” Assistant U.S. Attorney Timothy Willis wrote in a sentencing memo.
Glock switches and auto sears, even if not installed in a firearm, are considered machine guns under federal law.
Cross pleaded guilty in U.S. District Court in Cape Girardeau in January to one felony charge of unlawful transfer of a machine gun.
During a January 5 press conference in St. Louis, local and federal officials warned of an increase in the recovery and use of Glock switches and auto sears, which make firearms difficult to control and “inherently dangerous.”
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Timothy Willis is prosecuting the case.
Middlesex County Man Sentenced to 97 Months in Prison for Role in Heroin and Fentanyl Drug Trafficking OrganizationRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was sentenced today to 97 months in prison and four years of supervised release for leading a drug trafficking organization that operated out of a drug mill located in the Bronx, New York. Luis Cabrera, 38, of Perth Amboy, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court on Aug. 24, 2022, to an information charging him with conspiracy to distribute and possess with intent to distribute heroin, fentanyl, and methamphetamine.
Mexican citizen admits trafficking fentanyl in Kalispell areaRead the Press Release
MISSOULA —A Mexican citizen admitted today to allegations that he trafficked fentanyl in the Kalispell area after law enforcement seized 12,000 fentanyl pills, more than $72,000 in U.S. currency and a pistol from his vehicle, U.S. Attorney Jesse Laslovich said.
Cuauhtemoc Cervantes Samaniego, 30, pleaded guilty to a superseding information charging him with possession with intent to distribute fentanyl. Samaniego faces a mandatory minimum of five years to 40 years in prison, a $5 million fine and at least four years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. A sentencing date was set for Sept. 21 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Samaniego was detained pending further proceedings.
The government alleged in court documents that Samaniego trafficked fentanyl in the Kalispell community from about May 2022 through Oct. 5, 2022. Investigators received information in October that Samaniego was in Kalispell with a large amount of fentanyl to distribute. At about 2:50 a.m. on Oct. 5, law enforcement officers located Samaniego at a gas station in Kalispell and searched his vehicle. Officers found 12,000 fentanyl pills, $72,687 in U.S. currency and a 9mm pistol. An individual later told an agent that Samaniego had met with a person prior to law enforcement stopping him and that Samaniego had provided the person fentanyl pills. The person gave Samaniego a firearm.
Assistant U.S. Attorney Jennifer S. Clark is prosecuting the case. Homeland Security Investigations and the Montana Highway Patrol conducted the investigation.
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Mexican National Sentenced to More than 12 Years for Drug Trafficking in the Tri CitiesRead the Press Release
Richland, Washington – United States District Judge Mary K. Dimke sentenced Jose Mendoza-Ruelas, 38, to 150 months in federal prison after his guilty plea to Conspiracy to Distribute 50 Grams or More of Actual (Pure) Methamphetamine, 400 Grams or More of Fentanyl, and 5 Kilograms or More of Cocaine. Mendoza-Ruelas, who is from Mexico, also will serve 5 years of federal supervision after he is released from federal custody.
According to information disclosed in court documents and proceedings, Mendoza-Ruelas was part of a large drug trafficking organization that involved a legitimate landscaping business used to cover up the organization’s drug trafficking activities. During the course of the investigation, the Drug Enforcement Administration recovered large quantities of methamphetamine, fentanyl, and cash. Mendoza-Ruelas further made statements that the drug trafficking organization would give him 50,000 to 60,000 fentanyl laced pills in addition to large quantities of methamphetamine. Mendoza Ruelas was negotiating a 30 pound methamphetamine delivery when he was taken into custody. Around that time, DEA, in partnership with local law enforcement, executed numerous search warrants to include at the landscaping compound. There, law enforcement recovered over $160,000 in U.S. currency secreted inside a compartment in the wall. Law enforcement also recovered several automatic rifles armed with loaded barrel drums hanging on the wall. This compound was utilized to intake and process large drug shipments for distribution.
Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, stated “Drug distribution continues to be a scourge in the Tri-Cities and elsewhere.” U.S. Attorney Waldref continued: “I commend the collaborative efforts of state, local, and federal law enforcement to identify Mr. Mendoza-Ruelas’s drug trafficking activities and to prevent him from further distributing this poison in our communities. The Tri-Cities area and Eastern Washington are safer and stronger as a result of today’s sentence.”
Mr. Mendoza-Ruelas will spend a significant amount of time in prison due to the dedication of our state, local and federal partners who continue to work to keep our communities safe, healthy and free of individuals like him,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division.
This case was investigated by the DEA Tri-Cities, Border Patrol, the METRO Drug Task Force, Richland Police Department, Kennewick Police Department, Pasco Police Department, and West Richland Police Department. This case was prosecuted by Assistant United States Attorney Stephanie Van Marter.
4:21CR06028-MKD-1
Mexican National Charged with Fentanyl and Methamphetamine Distribution in Madera CountyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jesus Cota Verdugo, 21, of Mexico, charging him with possession with intent to distribute methamphetamine and fentanyl and possession of a firearm in furtherance of drug trafficking, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 11, 2023, Verdugo crashed his vehicle into another vehicle in Chowchilla and then fled from the scene. Law enforcement officers recovered his vehicle on the side of the road with the keys in the ignition and running. Inside the vehicle, officers recovered methamphetamine, fentanyl, an FN Scar rifle, an Aero Precision AR rifle, an Anderson rifle, an HK AR pistol, and a Springfield XD-9 pistol.
This case is the product of an investigation by the Chowchilla Police Department, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Arin C. Heinz is prosecuting the case.
If convicted, Verdugo faces a maximum statutory penalty of a mandatory minimum of five years in prison, a maximum of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Massachusetts and Connecticut Men Sentenced for Ponzi and Tax Fraud SchemesRead the Press Release
BOSTON – Two men were sentenced yesterday in federal court in Boston for a multi-year fraud scheme that caused more than $6 million in losses to investors.
Thomas D. Renison, 69, of South Glastonbury, Conn., was sentenced by U.S. Senior District Court Judge George A. O’Toole, Jr. to four years in prison and three years of supervised release. Renison was also ordered to pay forfeiture of $526,120 and restitution of $6,240,983. In October 2020, Renison pleaded guilty to one count of conspiracy to commit wire fraud and two counts of filing false tax returns.Timothy J. Allcott, 65, of Peabody, Mass., was sentenced by Judge O’Toole to 30 months in prison and three years of supervised release. Allcott was also ordered to pay forfeiture of $5,052,661 and restitution in the amount of $6,098,173. In July 2020, Allcott pleaded guilty to one count of conspiracy to commit wire fraud. In January 2020, the Securities and Exchange Commission (SEC) charged Allcott and Renison with fraudulently misleading investors in connection with the same conduct.
Renison was the former owner of ARO Equity LLC, a privately-held investment company that purportedly pooled money from investors and then invested it in various New England-based businesses. Between 2015 and 2018, Renison and Allcott fraudulently raised and solicited funds for ARO Equity LLC by misrepresenting to victims how their money would be invested, ARO’s investment track record and the safety of the investments. Allcott and Renison also concealed Renison’s ownership interest and affiliation with ARO because the SEC and regulators in Maine had previously barred Renison from working in the securities industry.
Over the course of the scheme, ARO took in over $6 million from investors but only invested half of that amount. Of the investments that ARO actually made, the substantial majority yielded significant losses. Despite these losses, Allcott and Renison failed to inform the victims of the poor performance of prior investments. Instead, they told the victims on many occasions that the investments were doing well and remained safe. ARO paid required monthly payments to earlier investors using funds raised from later investors.
The defendants generally told victims that ARO would use their investments to fund one of three different businesses. Instead, Renison and Allcott paid themselves exorbitant commission fees, satisfied monthly interest obligations to other investors and invested in different undisclosed businesses. As part of the scheme, Allcott and Renison disguised commissions paid to Renison as loans to Renison’s wife, which allowed them to continue to conceal Renison’s ownership stake in the company. In addition, Renison failed to declare more than half a million dollars of commission income and failed to pay over $150,000 in taxes.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Man Sentenced to over 19 Years in Federal PrisonRead the Press Release
Memphis, TN – Jon Glover, 57, of Millington, was sentenced to federal prison for distribution of methamphetamine and for being a convicted felon in possession of a firearm. United States Attorney
Kevin Ritz announced the sentence today.According to U.S. Attorney Ritz, and the information presented in court, in 2021, the Drug
Enforcement Administration (DEA) began investigating the drug trafficking activities of Glover.
During the course of the investigation, officers seized approximately one-half kilogram of methamphetamine and a Smith & Wesson 9mm caliber pistol. After his arrest, Glover pleaded guilty.This week, United States District Court Judge John T. Fowlkes, Jr., sentenced Glover to 230 months in federal prison. There is no parole in the federal system.
This case was investigated by DEA, the Shelby County Sheriff’s Department, and the West Tennessee
Drug Task Force.United States Attorney Kevin Ritz thanked Assistant United States Attorney Michelle Kimbril-Parks, who prosecuted this case, as well as law enforcement partners who investigated the case.
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.
Man Pleads Guilty to Dog Fighting OffensesRead the Press Release
An Ohio man pleaded guilty to two counts of raising and training dogs for the purpose of dog fighting.
Michael Valentine, 40, of Bidwell, Ohio, admitted to raising and training over fifty dogs near his home in Gallia County, Ohio. According to court documents, law enforcement first investigated Valentine for dog fighting offenses in 2019 following a dog attack on a small child living with the defendant. That investigation led to a search warrant of the defendant’s residence and the seizure of 40 dogs. The search also recovered numerous items of dog fighting paraphernalia, including treadmills, veterinary supplies, and dog fighting videos.
On March 8, 2022, a second search warrant was executed at the defendant’s residence as part of a fentanyl-distribution investigation. That search revealed substantial evidence of drug distribution, as well as two assault-style rifles. In addition, a search of a nearby parcel of land revealed an additional 11 dogs, which the defendant was keeping for purposes of dog fighting.
Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section, and Assistant U.S. Attorney Nicole Pakiz, and Special Assistant U.S. Attorney Mike Marous for the Southern District of Ohio are prosecuting this case.
The case was investigated by the U.S. Department of Agriculture Office of the Inspector General (USDA-OIG) and the FBI.
This investigation was conducted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) initiative. OCDETF identifies, disrupts, and dismantles criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Man Charged with COVID-Relief Fraud and Money LaunderingRead the Press Release
NEWS RELEASE SUMMARY – May 4, 2023
SAN DIEGO – Nasser Salman, a former San Diego resident living in Morocco, was arraigned in federal court today on charges that he fraudulently obtained more than $400,000 in COVID-relief loan funds on behalf of three companies.
According to the indictment, Salman submitted fraudulent applications to the federal Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) in connection with Lemon Grove Deli and Grill, Inc., Al Laith Trading and Construction Consulting Inc. and Alliance Security Consulting Services, Inc.
The indictment said that between April and August 2020, Salman successfully obtained five separate PPP and EIDL loans totaling $401,000 using applications that included false representations about the number of employees, the average monthly payroll, and the gross receipts earned by these purported businesses. Salman also submitted fictitious documents in support of the applications
According to the indictment, when Salman applied for the loans, he acknowledged the funds must be used to retain workers and maintain payroll, or to make mortgage interest payments, lease payments and utility payments. Instead, as alleged in the indictment, Salman engaged in a series of financial transactions, including international wire transfers to a Morocco-based bank account, that were designed to conceal and disguise the fact that the sources for the funds were the fraudulently obtained PPP and EIDL loans.
“These loan programs were designed to render economic relief to Americans during an unprecedented public health emergency,” said U.S. Attorney Randy Grossman. “This office is dedicated to investigating and prosecuting those who exploited the global pandemic to enrich themselves. We encourage anyone with information regarding individuals who have engaged in COVID-relief fraud to come forward.” Grossman thanked the prosecution team and the law enforcement agencies for their excellent work on this case.
“Covid relief fraud not only waste taxpayers’ dollars; it undermines the public trust of government programs,” said Chad Plantz, special agent in charge, HSI San Diego. “HSI will continue to work with our law enforcement partners to investigate and bring to justice fraudsters who diverted financial relief away from Americans at a time when they need it the most.”
A detention hearing is scheduled for May 9, 2023, at 9:30 a.m. before U.S. Magistrate Judge Barbara L. Major.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020 and is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
DEFENDANTS Case Number 23CR0821-LL
Nasser Salman Age: 60 United States
SUMMARY OF CHARGES
Counts 1-5- Wire Fraud
Title 18, U.S.C., Section 1343
Maximum Penalty: Thirty years in prison and $1,000,000 fine
Counts 6-11 – Laundering of Monetary Instruments
Title 18, U.S.C., Sections 1956(a)(1)(a)(B)(i)Maximum Penalty: Twenty years in prison; a fine of $500,000 or twice the amount of the monetary instruments involved, whichever is greater
AGENCIES
Homeland Security Investigations (HSI)
Small Business Administration (SBA)
The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Malachi Crockett charged in Federal Court for Carjacking SpreeRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that Malachi Alan Crockett was arraigned on an indictment charging him with three counts of carjacking, one count of attempted carjacking, and using, carrying, and brandishing a firearm during and in relation to a crime of violence. Crockett, 18, of Albuquerque, will remain in custody pending trial.
A federal grand jury indicted Crockett on April 27. According to the indictment and other court records, on March 21, Crockett and accomplices allegedly approached the first victim, identified as Jane Doe 1, while she was stopped in her car, a white Nissan sedan, at the intersection of 86th St SW and Tower Road SW. One of the individuals brandished a handgun and pointed it directly at Doe 1. Doe 1 opened her car door and fled.
A second victim, identified in court documents as Jane Doe 2, was parked on the south side of the Westgate Community Park in a grey Chevrolet SUV, waiting for her children. Doe 2 observed the white Nissan pull in front of her vehicle, blocking her in. Two individuals got out of the car and approached her. Doe 2 observed one of the individuals pointing a handgun at her head. Doe 2 exited the vehicle and fled.
A witness at the park observed the second carjacking as she drove by the incident. The white Nissan then began to follow her and she observed the occupants pointing firearms at her. She accelerated away and heard multiple gunshots before observing the grey Chevrolet approaching her then striking a tree. An individual exited the Chevrolet with a handgun and she attempted to drive away and observed the white Nissan following her and the occupants shooting at her vehicle. The witness lost control of her vehicle and crashed into a residence. The white Nissan stopped behind her and the individuals exited the car with handguns and the witness fled her vehicle on foot.
A short time later, two victims identified as Jane Doe 3 and John Doe, were driving near Carlos Rey Elementary when they observed the white Nissan. A young male exited the vehicle with a handgun and ran towards Jane Doe 3 and John Doe, pointing the handgun at them. As he approached, Jane Doe 3 drove away at a high rate of speed.
A few minutes later, Jane Doe 4 was approaching the intersection of Barbados Ave SW and Gibson Blvd SW in a red Chevrolet hatchback. The white Nissan drove past her and parked in front of her, blocking her vehicle. Doe 4 thought the occupants of the white Nissan may need assistance, so she stopped her car, turned it off and exited the vehicle with her keys. Doe 4 then observed three masked males exit the white Nissan and approach her. All three were armed with handguns and dressed in dark-colored clothing. They yelled at her to give them the keys, at which point Doe 4 threw the keys to the ground. One of the individuals picked up the keys, got into her vehicle and drove away while the other two returned to the white Nissan and drove away.
Responding APD officers observed the red Chevrolet hatchback and initiated pursuit. The driver crashed the vehicle near the area of Atrisco Dr SW and Bridge Blvd SW. Officers managed to apprehend the fleeing occupants. Crockett was wearing a black hoodie and black pants and in possession of a black mask when he was apprehended. During his attempt to flee, Crockett allegedly disposed of a handgun. Upon observation of the handgun, APD personnel reported the backplate of the handgun appeared to have been modified.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Crockett faces imprisonment of up to 15 years for each carjacking count and a consecutive term of up to life in prison for using, carrying and brandishing a firearm during and in relation to a crime of violence.
The FBI Albuquerque Field Office investigated this case with assistance from the Albuquerque Police Department. Assistant United States Attorney Thomas J. Aliberti is prosecuting the case.
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Local drug distribution network dismantledRead the Press Release
CORPUS CHRISTI – The final members of a Corpus Christi drug trafficking organization have been ordered to federal prison following their convictions of conspiracy to possess with intent to distribute cocaine and money laundering, announced U.S. Attorney Alamdar S. Hamdani.
Gilbert DeLosSantos, 51, and his wife, Corina DeLosSantos, 56, pleaded guilty Nov. 7, 2022, while Lawrence Guevara, 52, and Amber Ramirez, 35, entered their pleas Sept. 29, 2022. All are from Corpus Christi.
Today, U.S. District Judge David Morales found Gilbert DeLosSantos to be a leader in the conspiracies and sentenced him to a total of 180 months in federal prison to be immediately followed by 10 years of supervised release. Corina DeLosSantos received a 54-month-term of imprisonment followed by three years of supervised release for her role in the money laundering conspiracy.
Judge Morales previously sentenced Guevara and Ramirez for their respective involvement in the drug conspiracy to 120 and 51 months, respectively.
As a result of the criminal convictions in this case, approximately $13,000 in U.S. currency and six pieces of real property have been forfeited to the United States.
In September 2019, a seizure of cocaine at the Sarita Border Patrol checkpoint sparked an investigation into a drug trafficking operation that Gilbert DeLosSantos ran in Corpus Christi. This resulted in the identification of drug distribution locations and multiple individuals ranging from street-level dealers to mid-level suppliers.
On May 10, 2022, authorities conducted four federal search warrants at locations in the Corpus Christi area. At one, they arrested Guevara and Ramirez who were workers at the residence and seized 634 grams of cocaine, 331 grams of heroin, 31 grams of crack cocaine, $1,170 U.S. currency and several drug ledgers.
Law enforcement later arrested DeLosSantos at his residence and seized approximately $12,000 in U.S. currency, multiple phones and electronic devices, Nueces County property tax statements and banking records.
The investigation led authorities to believe DeLosSantos and his organization were selling approximately one kilogram each of cocaine and heroin per week.
Previously released on bond, both were permitted to remain on bond and voluntarily surrender at a later date.
Homeland Security Investigations and the Drug Enforcement Administration conducted the Organized Crime Drug Enforcement Task Forces (OCDETF) investigation dubbed Operation New Trap on the Block with the assistance of Customs and Border Protection, Corpus Christi Police Department and Texas Department of Public Safety.
OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorney Lance Watt prosecuted the case.
Lawton Woman and Former Army Training Manager at Fort Sill Indicted on Public Corruption ChargesRead the Press Release
OKLAHOMA CITY – Earlier this week, a federal grand jury returned an Indictment charging CANDY HANZA, 50, of Lawton, and ALFRED PALMA, 64, of Duncan, with bribery, announced Robert J. Troester, United States Attorney for the Western District of Oklahoma. Hanza is also charged with wire fraud and money laundering.
According to the publicly filed Indictment, Palma, a United States Army employee and public official, was the manager of the Institutional Training Directed Lodging and Meals (“ITDLM”) program at Fort Sill, through which he booked hotel rooms for soldiers who attended on-post trainings. Hanza, then the general manager of a local hotel in Lawton, paid Palma to direct soldiers to the hotel. The Indictment alleges that Hanza then personally profited through her own scheme to defraud the hotel owners and laundered the resulting proceeds.
Hanza and Palma will be arraigned in federal court on the charges. If found guilty of bribery, Hanza and Palma each face up to fifteen years in federal prison, a fine of $250,000.00 or three times the monetary value of the bribes, and up to three years of supervised release. Hanza additionally faces up to twenty years in prison, a $250,000.00 fine, and up to three years of supervised release if convicted of wire fraud, as well as up to ten years in prison, a $250,000.00 fine, and up to three years of supervised upon conviction for money laundering.
This case is the result of an investigation by the United States Army Criminal Investigation Division and the Department of Defense Contract Audit Agency. Assistant U.S. Attorney Julia E. Barry is prosecuting the case.
The public is reminded that these charges are merely allegations, and that the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Reference is made to public records for more information.
Las Vegas Resident Sentenced to Prison for Million-Dollar Tax Refund Fraud SchemeRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today to 30 months in prison followed by one year of supervised release for claiming $989,031 in fraudulent income tax refunds from the IRS for himself and shell companies for tax years 2007 through 2011.
In December 2022, a federal jury convicted Anthony Uvari of four counts of making and subscribing false tax returns. United States District Judge Andrew P. Gordon presided over the four-day trial.
According to court documents and evidence presented at trial, between December 2008 and May 2013, Uvari filed tax returns that falsely claimed businesses — including numerous gaming companies and a bank — had paid him or his companies gambling winnings or other income, but withheld more than $900,000 of income tax on his behalf and paid it to the IRS. As a result, he requested from the IRS over $900,000 in fraudulent income tax refunds. The IRS paid out more than $300,000 in fraudulently requested refunds before detecting Uvari’s scheme and denying the remaining refund requests. After one such refund request was denied, Uvari provided the IRS with new false documents — including a fake log supposedly documenting his gambling — in a further effort to deceive the IRS into providing the fraudulently requested tax refund.
United States Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Albert Childress of the IRS Criminal Investigation (IRS-CI) made the announcement.
This case was investigated by IRS-CI. Assistant United States Attorneys Eric Schmale and Jessica Oliva prosecuted the case.
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Justice Department Seeks to Shut Down Florida Tax Return PreparerRead the Press Release
The United States has filed a complaint in the U.S. District Court for the Middle District of Florida against Tyrone Johnson and TJ Professional Services, LLC. The civil complaint seeks to enjoin the defendants from preparing federal income tax returns for others. The complaint also requests that the court require Johnson and the business he controls to disgorge the fees they obtained by preparing federal tax returns that make grossly incompetent, negligent, reckless, and/or fraudulent claims.
The civil complaint alleges that since at least 2016, defendants prepared returns that claim fictitious businesses and fabricated business losses. As a result, the complaint alleges, defendants decreased the amount of taxable income reported to make it appear that their customers were entitled to a larger refund than they were in fact entitled to receive. The complaint further alleges that defendants do not identify themselves as paid preparers on their customer’s returns, but instead operate as “ghost preparers” that file returns using six-digit PINs affiliated with individual customers. According to the complaint, the defendants’ schemes have cost the Treasury millions of dollars in lost tax revenue.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS offers tips on how to accurately file returns and how to choose a tax return preparer, as well as steps taxpayers can take to get a jumpstart on filing.
Taxpayers seeking assistance can access the IRS’s free directory of federal tax preparers. The IRS also has programs offering free basic return preparation for qualifying seniors and individuals with low to moderate income). In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
High-Ranking Wilmington Gang Leader Convicted for Drug TraffickingRead the Press Release
RALEIGH, N.C. – A federal jury convicted a high-ranking Bloods gang leader from Wilmington on charges of trafficking heroin, fentanyl and cocaine.
Don Eugene Nixon, Jr., age 48, was convicted on eight counts, including conspiracy to distribute and possess with intent to distribute heroin and fentanyl, distribution of heroin and fentanyl, and possession with the intent to distribute heroin. Nixon faces a minimum term of imprisonment of 5 years and a maximum term of imprisonment of 40 years on each count when sentenced later this year, for a total possible sentence of up to 320 years imprisonment.
“The gangs pushing deadly fentanyl in our community have a role in fueling the deadliest drug epidemic our country has ever seen,” said U.S Attorney Michael Easley. “Our office is partnering with law enforcement at every level to fight the fentanyl epidemic and put drug traffickers behind bars.”
According to court records and evidence presented at trial, a months-long investigation by the Federal Bureau of Investigation (FBI) and the Wilmington Police Department resulted in six controlled purchases of large quantities of drugs, including heroin and fentanyl, from Nixon. Nixon would deliver the drugs to the informant pressed into a square block shape, tightly wrapped with black electrical tape. In addition, law enforcement executed a search warrant at Nixon’s home and seized 131 grams of heroin and three handguns.
Trial testimony established that Nixon was a large-scale heroin dealer who operated well over a decade in Eastern North Carolina. Additionally, his rank in and reach within the Bloods gang made it difficult to investigate and prosecute his crimes. Witnesses refused to testify due to the threats they faced. Witnesses who did assist in the investigation have had to relocate and are receiving federal protection.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. The Federal Bureau of Investigation and the Wilmington Police Department are investigating the case and Assistant U.S. Attorneys Brad Knott and Jimmie Bellamy are prosecuting the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.7:21-CR-00071.
Haitian National Found Guilty of Biting ICE Officers on Deportation AircraftRead the Press Release
SAN ANTONIO – A federal jury convicted a Haitian national in a federal court in San Antonio Tuesday for two counts of assaulting, resisting, or impeding certain officers or employees and inflicting bodily injury and one count of assaulting, resisting, or impeding certain officers or employees involving physical contact.
According to court documents and evidence presented at trial, Immigration and Customs Enforcement (ICE) officers were loading 112 Haitian nationals onto a contract aircraft in San Antonio bound for Port Au Prince, Haiti in September 2021, when a disturbance involving several individuals occurred in the middle section of the aircraft. Jubenson Domenique was identified as the main instigator of the disturbance and a decision was made for three officers to remove him from the aircraft.
During Domenique’s extraction from the aircraft, he bit the officers, breaking the skin and leaving teeth marks on all three. Emergency Medical Services responded, and one officer was treated at a local hospital, provided prescriptions for medication and began treatment and testing for possible infections, including six months of HIV treatment.
Domenique faces a maximum penalty of 20 years in prison for each count of inflicting bodily injury and eight years in prison for the third count.
U.S. Attorney Jaime Esparza of the Western District of Texas and Special Agent in Charge Jennifer Huerta for the ICE Office of Professional Responsibility made the announcement.
ICE is investigating the case.
Assistant U.S. Attorneys Amanda Brown and Amy Hail are prosecuting the case.
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Greensboro Man Sentenced for Role in Two Greensboro Shootings and Drug Trafficking in the Middle DistrictRead the Press Release
WINSTON SALEM – A Greensboro man was sentenced today to 25 years in prison, after pleading guilty to firearms charges connected to two Greensboro shootings and drug trafficking in the Middle District of North Carolina (MDNC), announced United States Attorney Sandra J. Hairston.
LAJAUREN DAMITRI WIMBUSH, age 36, was indicted in February 2022 for two separate incidents, one involving possession with intent to distribute methamphetamine and one in which he was charged with three counts of illegal firearm and/or ammunition possession by a felon. According to court records, in September 2020, Surry County Sheriff’s Deputies executed a search warrant on a residence in Mount Airy where they encountered WIMBUSH and confiscated multiple bags of suspected methamphetamine from his vehicle. During his arrest, WIMBUSH claimed ownership of the contents of the bags, which were later confirmed by the State Crime Lab to contain quantities of methamphetamine.
WIMBUSH was also indicted in another case with three counts of felon in possession of a firearm and/or ammunition stemming from two Greensboro shootings at the Four Seasons Mall on December 21, 2021, and at Studio Motel 6 on January 6, 2022. According to court documents, the Greensboro Police Department (GPD) responded to reports of a shooting at the Four Seasons Mall in Greensboro on the afternoon of December 21st and located a victim who had been shot multiple times. Mall security footage showed the exchange between the victim and assailant in the parking lot of the mall, and officers were able to locate additional footage tracing the assailant back to a motel room which WIMBUSH was staying in at the time.
On January 6, 2022, an officer with the GPD responded to reports of an aggravated assault at the same motel and located a victim who had been shot multiple times and beaten by WIMBUSH. Surveillance footage from the motel confirmed the victim’s account of events and showed WIMBUSH shooting at and attacking the victim. At the time of both shootings, WIMBUSH was a previously convicted felon and was aware that he was prohibited from possessing a firearm or ammunition. WIMBUSH is facing additional charges in these cases in state court.
WIMBUSH pleaded guilty on November 10, 2022, in a combined plea agreement to one count of possession with intent to distribute methamphetamine and two counts of felon in possession of a firearm. WIMBUSH was sentenced today to 300 months imprisonment in case number 1:22CR44, and two 120-month terms of imprisonment in case number 1:22CR41 to run concurrent with his sentence in case number 1:22CR40 by the Honorable Loretta C. Biggs, United States District Judge in the United States District Court for the MDNC. In addition to prison time, WIMBUSH was ordered to serve concurrent five year terms of supervised release, pay a special assessment of $300.00, and pay $8,762.28 in restitution.
The cases were investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Greensboro Police Department, and the Surry County Sheriff’s Department, and are being prosecuted by Assistant United States Attorney Cliff Barrett.
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Four People Charged for Roles in Bank Fraud, Identity Theft SchemeRead the Press Release
NEWARK, N.J. – Four people have been charged with conspiring to use and using victims’ personal identifiable information to defraud individuals and financial institutions, U.S. Attorney Philip R. Sellinger announced today.
Marc Lazarre, 37, of Secaucus, New Jersey: Fritzgerald Steide, 28, of Valley Stream, New York; Mohammed Khan, 32, of Elmont, New York; and Andrea Lewis, 29, of Inwood, New York, are each charged by indictment with one count of conspiracy to engage bank fraud. Lazarre is also charged with one count of bank fraud and three counts of aggravated identity theft.
According to documents filed in this case and statements made in court:
From September 2021 through October 2022, Lazarre, Steide, Khan, and Lewis conspired to enrich themselves by fraudulently obtaining victims’ funds. Lazarre utilized unlawfully obtained bank account and personal identifiable information to open accounts in victims’ names without their knowledge, caused the transfer of funds from the victims’ actual financial accounts to the accounts he opened, and then withdrew the funds. Lazarre also unlawfully obtained or fabricated checks made out to victims, used fraudulent identification documents to open accounts in names almost identical to the victims’ names, and then cashed the unlawfully obtained or fabricated checks.
Lazarre also worked with Steide and Khan, both of whom were employees of an Oceanside, New York, branch of a victim financial institution. Lazarre sent victims’ personal identifiable information to Steide and Khan, who in turn used this information to determine whether those individuals had bank accounts with Steide and Khan’s employer. In Khan’s role as a customer service representative, he received documents that he knew reflected stolen personal identifiable information from Lazarre and subsequently opened bank accounts using that information. Steide advised Lazarre regarding how to avoid detection, including by telling him when a conspirator should arrive at the bank to meet with Khan. Lewis impersonated numerous victims using false forms of identification provided by Lazarre. On at least one occasion, Lewis communicated with Lazarre in real time for assistance with responding to a bank representative’s questions regarding her purported identity.
The conspiracy to commit bank fraud and bank fraud counts are punishable by a maximum of 30 years in prison and a maximum fine of up to $1 million or twice the gross gain or loss from the offense. The aggravated identity theft counts carry an additional consecutive mandatory minimum term of two years in prison and a maximum fine of up to $250,000, or twice the gross gain or loss from the offense.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; and special agents of the Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Andrew McKay with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Shawn Barnes, Chief of the OCDETF/Narcotics Unit, and Matthew Belgiovine of the U.S. Attorney’s Office in Trenton.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
lazarreetal.indictment.pdfFormer Naugatuck Resident Charged with Offenses Stemming from Alleged Investment Fraud SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that RAFAEL MUZZI, 27, a citizen of Brazil formerly residing in Naugatuck, has been charged in a 14-count indictment with fraud and money laundering offenses stemming from an alleged investment fraud scheme.
As alleged in the indictment, in 2017 and 2018, Muzzi, at times using two entities he formed, Solace Investments LLC and Asseno LLC, induced victim-investors to provide him funds based on the representation he would use the funds for trading currencies in foreign exchange markets using a trading software program that he told his victims he had developed. Muzzi represented to victims that his software program had a feature that would cause trading to cease in the event of a certain loss in value, thus minimizing downside risk. Muzzi failed to invest a substantial portion of invested funds as he represented, and instead diverted those funds for his own personal use, and to pay other individuals who had invested with him.
It is alleged that, through this scheme, Muzzi defrauded at least 12 victim-investors out of a total of more than $550,000.
The indictment further alleges that Muzzi sent victims fabricated monthly account statements that falsely overstated their return on investment and their account balances. These misrepresentations induced some victim-investors to provide him with additional investment funds. Muzzi also provided victims with purported tax documents reflecting fictitious investment profits, causing victims to report and pay taxes on profits that they had not realized.
As alleged in court documents, in response to victim complaints, the State of Connecticut’s Department of Banking investigated Muzzi’s conduct, issued orders finding that Muzzi and Solace Investments had violated state securities laws, ordered them to make restitution to victims, and fined Muzzi $300,000. On September 6, 2020, Muzzi traveled to Brazil and did not return.
On August 23, 2022, a federal grand jury in New Haven returned an indictment charging Muzzi with 12 counts of wire fraud and two counts of money laundering.
Muzzi was arrested on April 1, 2023, in Panama, and subsequently waived his right to contest his extradition to the U.S. He appeared in Hartford federal court on April 28, pleaded not guilty to the charges in the indictment, and was ordered detained. A detention hearing is scheduled for tomorrow.
U.S. Attorney Avery stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation with the assistance of the Connecticut Department of Banking, Securities Division.
U.S. Attorney Avery thanked Interpol and Panamanian authorities for their assistance in apprehending this defendant, and the U.S. Department of Justice’s Office of International Affairs for coordinating the extradition proceedings in this matter.
The case is being prosecuted by Assistant U.S. Attorneys Conor M. Reardon and Michael S. McGarry.
Former Information Technology Manager Agrees to Plead Guilty to Theft of over $1.4 Million from EmployerRead the Press Release
BOSTON – The former information technology manager of a Quebec City, Canada-based telecommunications company has been charged and has agreed to plead guilty in connection with a fraud scheme that involved the theft of over $1.4 million in computer equipment from his employer.
Tod Erickson, 60, of Londonderry, N.H., has been charged, and has agreed to plead guilty, to wire fraud and filing a false tax return. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, Erickson served as the information technology manager at a telecommunications company that, until February 2019, had an office located in Chelmsford, Mass. As information technology manager, Erikson was responsible for submitting requests to purchase equipment – such as computers and hard drives. It is alleged that from at least January 2012 through February 2019, Erickson fraudulently submitted purchase requests for computer equipment that the company did not need. Thereafter, without the knowledge or approval of his employer, Erickson allegedly sold the items to third parties and used the illicit proceeds for his personal benefit. Erickson also filed income tax returns for the tax year 2016 in which he intentionally underreported his income by failing to disclose money he received from the sale of his employer’s property.
The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, restitution, and forfeiture. The charge of filing false tax returns provides for a sentence of up to three years in prison, one year of supervised release, a fine of $250,000, restitution, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston, made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Founder and CEO of Nanotechnology Company Sentenced to 48 Months in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that JAMES JEREMY BARBERA, the founder and former chief executive officer (“CEO”) of a New York-based nanotechnology company, Nanobeak Biotech, Inc. (“Nanobeak”), was sentenced today to 48 months in prison by U.S. District Judge John G. Koeltl. BARBERA was previously convicted following a one-week trial of securities fraud, wire fraud, and conspiracy offenses.
According to the Indictment, evidence presented during trial, court documents, and statements made in open court:
From in or about 2013 and in or about 2019, BARBERA was the founder and CEO of Nanobeak, a privately held nanotechnology company that represented to investors that the company had developed a breathalyzer sensor technology that could detect cancer and narcotics in human breath.
From at least in or about 2013 through in or about 2020, BARBERA and others perpetrated a scheme to defraud dozens of investors out of at least approximately $7 million (i) by soliciting investments through false and misleading statements, (ii) by failing to use investors’ funds as promised, and (iii) by converting investors’ money for his own use. Specifically, BARBERA falsely represented that Nanobeak had developed a breathalyzer sensor that could detect narcotics and cancer in a person’s breath and that the company was expected to earn millions of dollars in sales revenue through distribution contracts. In truth and in fact, Nanobeak never developed the purported technology, and it was impossible for the company to generate revenue because there was no breathalyzer device to sell and, accordingly, no distribution contracts.
BARBERA also falsely represented that he had undergraduate and graduate degrees in physics from New York University, that he had a business degree from the Massachusetts Institute of Technology, and that Nanobeak would soon have an initial public offering (“IPO”), which would result in large profits to investors. In truth and in fact, the company was not close to an IPO, BARBERA was permanently barred from serving as the CEO of a public company as a result of a prior, unrelated proceeding brought by the U.S. Securities and Exchange Commission (“SEC”), and BARBERA never finished college and never attended MIT.
BARBERA converted for his own use approximately half of the investor funds raised in the form of cash withdrawals and to pay personal expenses, including private school and college tuition for his children, mortgage payments on his Central Park West apartment, and for other personal items, such as credit card bills, jewelry, automobiles, and daily living expenses.
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In addition to his prison sentence, BARBERA, 67, of New York, New York, was ordered to pay more than $7 million in forfeiture.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and the National Aeronautics and Space Administration’s Office of Inspector General, and he also thanked the SEC for its assistance.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Kiersten A. Fletcher is in charge of the prosecution.
Former Boy Scout Camp Employee Indicted for Possession and Distribution of Child PornographyRead the Press Release
NEWARK N.J. – A federal grand jury indicted a Morris County, New Jersey, man for possessing and distributing child abuse and exploitation material, U.S. Attorney Philip R. Sellinger announced today.
William Mickel, 69, of Lake Hopatcong, New Jersey, is charged by indictment with one count of distribution of child pornography and one count of possession of child pornography. He had his initial appearance today before U.S. district Judge Cathy L. Waldor in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
Mickel was employed by Boy Scout camps in New Jersey, and from February 2022 through April 2022, he distributed and possessed images and videos of child sexual abuse. Mickel used email accounts to distribute these materials, and stored hundreds of images and videos on electronic devices in his home. Some of the videos in Mickel’s possession depicted children who were surreptitiously recorded using bathrooms in the Boy Scout camps where Mickel worked.
The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000. The count of possession of child pornography carries a maximum penalty of 20 years in prison and a fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, and substantial assistance from the Morris County Prosecutor’s Office under the direction of Prosecutor Robert J. Carroll; and the Chester Police Department, under the direction of Chief Ryan T. McNamee, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the Economic Crimes Unit in Newark.
If you think you or your child may have been a victim, please contact the FBI at www.fbi.gov.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
mickel.indictment.pdfFormer Boston Public Schools Dean Who Recruited Students into Latin Kings Gang Sentenced to over Eighteen Years in PrisonRead the Press Release
BOSTON – A former member of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) who was, at the time, an academic dean in the Boston Public Schools was sentenced today in federal court in Boston on racketeering charges. The defendant attempted to murder a student that he had recruited into the gang and who was selling marijuana in the high school at the defendant’s direction.
Shaun Harrison, a/k/a “Rev,” 63, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 218 months in prison, with credit for 98 months’ time served, and three years of supervised release. In August 2022, Harrison pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
“The level of betrayal and dishonesty exhibited here is astonishing. Harrison was in a position of trust, but was actually a dangerous predator. As the academic dean at a Boston Public high school he lured and manipulated teenagers into a criminal enterprise that specialized in street terrorism. Harrison was the architect of ruin for an entire generation of promising young lives – exclusively targeting and grooming vulnerable, at-risk youth. The very thing he was hired to work against. When one of his students – the victim in this matter – resisted his recruiting efforts, Harrison attempted to murder him in cold blood. In response to that student bravely doing the right thing and rejecting a life of crime, Harrison shot him point blank in the back of the head. Miraculously, he lived but now has partial face paralysis, neuropathy in his neck and face and permanent hearing loss among other significant injuries. The fact that Harrison continued to associate with Latin Kings members while in state prison for this attempted murder shows a callous disregard for the law and the harm he caused,” said United States Attorney Rachael S. Rollins. “Today’s sentence is a testament to the tireless efforts of our state, local and federal law enforcement partners. The dismantling of the Latin Kings organization is a significant milestone in our collective efforts to combat violent crime. We will continue to work to ensure that our schools and communities are safe.”
“Shaun Harrison led a double life – using his position as a high school dean to engage in violence and recruit at-risk youth into a violent criminal enterprise. Today’s sentence ensures he will stay in prison and off our city streets for a significant period of time,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The convergence of gangs, guns, and drugs are a serious threat to our communities which the FBI and our law enforcement partners are working hard every day to address.”
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against dozens of leaders, members and associates of the Latin Kings.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In 2015, Harrison was hired by the Boston Public Schools to serve as an academic dean at English High School. In that role, Harrison was to act as a mediator between teachers and students, contact families when students struggled, work with at-risk students and run an anger management program for 10 boys after school. While working at the Boston Public Schools, Harrison was a member of the Latin Kings, known as “Rev” or “King Rev,” and used his position as academic dean to recruit a number of the at-risk students into the gang. Harrison directed the recruited students to distribute marijuana and other drugs, which he provided, in the high school and collected the drug proceeds. A number of the students that Harrison recruited included Wilson Peguero, a/k/a “King Dubb,” who later became the “Inca” or the leader of the D5K Chapter of the Latin Kings; Alexis Peguero, a/k/a “King Lexi,” who became the “Cacique” or the second-in-command of the D5K Chapter of the Latin Kings; Dante Lara, a/k/a “King Nasty;” Oscar Pena, a/k/a “King O-Block;” and others. Wilson Peguero, Alexis Peguero, Lara and Pena were each charged in this case and sentenced to serve 30 months, 21 months, two years and 32 months in prison, respectively.
In March 2015, Harrison came to believe that one of the students distributing drugs for him had stolen money from him, no longer wished to sell drugs and may tell the police about Harrison’s crimes. On March 3, 2015, Harrison met up with this student, pulled out a handgun and shot the student in the back of the head at point blank range. This shooting was captured on video by a surveillance camera in the area. The student survived.
Harrison was arrested soon thereafter and charged in Suffolk Superior Court with crimes related to the attempted murder. In 2018, Harrison was convicted by a jury and sentenced to approximately 25 years in state prison.
While in state prison following his conviction, Harrison continued to associate with Latin Kings members, including through jail calls to other co-defendants. The Latin Kings supported Harrison during his state incarceration, discussed Harrison’s loyalty to the Latin Kings and refusal to implicate others and put money into his jail accounts.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. In total, 60 defendants in the case have pleaded guilty. Of the 62 charged defendants in the indictment, two remain fugitives. All of the remaining 60 defendants have pleaded guilty and have been sentenced or are awaiting sentencing. Harrison is the 59th defendant to be sentenced.
U.S. Attorney Rollins; FBI SAC Bonavolonta; Commissioner Carol Mici of the Massachusetts Department of Correction; Suffolk County District Attorney Kevin Hayden; Boston Police Commissioner Michael Cox; and New Bedford Police Chief Paul Oliveira made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of Rollins’ Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The two remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law
Five Charged in an $11 Million Health Care Fraud SchemeRead the Press Release
DETROIT – Five individuals, including a physician and a certified social worker, were charged in a Second Superseding Indictment for their alleged roles in an $11 million health care fraud scheme, which involved submitting false claims to Medicare for purported psychotherapy services that were induced by kickbacks and/or never rendered, announced United States Attorney Dawn N. Ison.
Mohammad Kazkaz is also charged with six counts of money laundering for engaging in monetary transactions exceeding $10,000 including transferring more than $1.4 million dollars in fraudulent health care fraud proceeds to a national restaurant chain.
Joining in the announcement were James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Mario Pinto, Special Agent in Charge, United States Department of Health and Human Services – Office of Inspector General (HHS-OIG).
Charged as members of the conspiracy in the indictment are:
Mohamed Kazkaz, 54, of Farmington Hills, Michigan;
Ziad Khalel, 52, of Rochester Hills, Michigan;
Dr. Mustafa Hares, 76, of West Bloomfield, Michigan;
Geraldine Letman, MSW, 70, of Phoenix, Arizona; and
Gamela Ali, 33, of Dearborn, Michigan.
The indictment alleges that Kazkaz was the owner and operator of Centre HRW, a psychotherapy agency in Farmington Hills, Michigan. Kazkaz offered and provided kickbacks and bribes to Khalel, who was a patient recruiter, as an inducement to refer Medicare beneficiaries to Centre HRW for psychotherapy services, even though such services were medically unnecessary and were never rendered. Khalel would require the recruited Medicare beneficiaries to sign blank Centre HRW sign-in sheets to allow Kazkaz to submit claims to Medicare, through Centre HRW, for psychotherapy services that were never provided.
Ali, as the office manager of Centre CRW, was responsible for obtaining information regarding the patients’ legitimate medical visits to ensure Kazkaz did not submit claims for a psychotherapy appointment on the same date the patient had a legitimate appointment with another medical provider. Dr. Hares and Letman would complete fraudulent patient charts indicating they had seen the patient, when in fact, such psychotherapy services were never rendered and/or were induced by kickbacks. As a result of the false and fraudulent claims submitted to Medicare, Centre HRW billed Medicare more than $11 million and Medicare made payments to Centre HRW in an amount more than $5.3 million.
Kazkaz and Khalel were originally charged in a January 11, 2023 indictment. Dr. Hares, Letman, and Ali were added as new defendants in today’s Second Superseding Indictment.
“My office is committed to prosecuting any individual, especially medical professionals, who exploits Medicare, a taxpayer-funded program that provides essential services to seniors and disabled individuals,” stated U.S. Attorney Ison.
“The payment of kickbacks to induce referrals for medical services in Federal health care programs, as well as billing for services not rendered, can undermine the trust we place in our nation’s providers and results in costly reductions to our federal health care programs," said Special Agent in Charge Mario M. Pinto of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG will continue to work with our law enforcement partners to ensure that those who commit fraud and pay kickbacks are held accountable.”
“Health care professionals who fraudulently bill Medicare for services never actually provided divert taxpayer money meant to pay for medically necessary services for people enrolled in Medicare,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “The FBI is committed to working with our partners to eradicate schemes that defraud government-sponsored health care programs.”
An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being prosecuted by Assistant United States Attorneys Regina R. McCullough and Philip A. Ross. Assistant United States Attorney K. Craig Welkener, of the Money Laundering & Asset Recovery Unit, is handling related forfeiture matters. The investigation is being conducted jointly by the FBI and HHS-OIG
Federal Jury Convicts Child Psychiatrist of Sexual Exploitation of A MinorRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte has convicted David Tatum, 41, a child psychiatrist in Charlotte, N.C., of sexual exploitation of a minor, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert M. DeWitt, Special Agent in Charge of Federal Bureau of Investigation (FBI) in North Carolina join U.S. Attorney King in making today’s announcement.
According to filed court documents, trial evidence and witness testimony, between 2016 and 2021, Tatum possessed images and videos of child pornography. Trial evidence also established that in or about July 2016, Dr. Tatum secretly recorded a minor while the minor was undressing and showering. A forensic analysis of electronic devices revealed that the defendant produced the video of the minor and possessed it, along with other images and videos of child pornography. According to trial evidence, Dr. Tatum made similar surreptitious recordings of others, including of his patient during an outpatient visit who had just turned 18 years old five days before the recording. The jury convicted Dr. Tatum of one count production of child pornography, one count of transportation of child pornography, and one count of possession of child pornography.
Dr. Tatum is currently in federal custody. A sentencing date has not been set. The count of production of child pornography carries a minimum statutory sentence of 15 years and a maximum of 30 years in prison and a $250,000 fine. The charge of transportation of child pornography carries a minimum statutory sentence of 5 years and a maximum of 20 years in prison and a $250,000 fine. The charge of possession of child pornography carries a statutory penalty of no more than 10 years in prison and a $250,000 fine.
In making today’s announcement, U.S. Attorney King commended FBI for their investigation of the case.
Assistant United States Attorneys Daniel Cervantes and Mark Odulio of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Federal Grand Jury Indicts Louisville Man for Carjacking and Firearms OffensesRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment on April 19, 2023, charging a local man with carjacking, possession of a firearm in furtherance of a crime of violence, and possession of a firearm by a convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Chief Jacquelyn Gwinn-Villaroel of the Louisville Metro Police Department, Special Agent in Charge Rana Saoud of the Homeland Security Investigations (HSI) Nashville, and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
According to the indictment, on February 15, 2023, Dekoda Stinson, 29, committed the following offenses: carjacking, possession of a firearm in furtherance of a crime of violence, and possession of a firearm by a convicted felon. Stinson was prohibited from possessing a firearm because he had previously been convicted of the following felony offenses. On August 16, 2022, in Jefferson Circuit Court, Stinson was convicted of receiving stolen property. On June 17, 2020, in Hardin Circuit Court, Stinson was convicted of receiving stolen property. On July 11, 2017, in Hardin Circuit Court, Stinson was convicted of burglary in the third degree and bail jumping in the first degree. On April 7, 2016, in Hardin Circuit Court, Stinson was convicted of assault in the third degree.
On May 4, 2023, Stinson made an initial appearance before a U.S. Magistrate Judge in the United States District Court for the Western District of Kentucky. If convicted, he faces a minimum sentence of 5 years in prison and a maximum sentence of 20 years. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by LMPD, HSI, and the FBI.
Assistant U.S. Attorney Joshua R. Porter is prosecuting this case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Indicts Bullitt County Man on Elder Fraud ChargesRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky, returned an indictment on May 2, 2023, charging former Bullitt County Master Commissioner John Anthony Schmidt with engaging in a scheme to commit wire and bank fraud.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and FBI Special Agent in Charge Jodi Cohen of the Louisville Field Office made the announcement.
According to the indictment, between September 2014 and January 2019, while serving as the trustee for two separate trusts, Schmidt devised a scheme to defraud and to obtain money from the trusts by means of false and fraudulent pretenses and representations to use the trusts’ money for his own personal expenditures. Schmidt is charged with one count of wire fraud and two counts of bank fraud.
The defendant made his initial court appearance yesterday before a U.S. Magistrate Judge of the U.S. District Court for the Western District of Kentucky. If convicted, Schmidt faces a maximum sentence of 80 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The FBI is investigating the case.
Assistant U.S. Attorney Stephanie M. Zimdahl is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former TSA Employee Sentenced on Fraud ConvictionRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Cleon Otto 35, of St. Thomas, was sentenced by Chief District Court Judge Robert A. Molloy to 12 months of probation on his conviction of creating a false authentication document. Molloy also ordered that Otto pay a $1,000.00 fine, a $25 special assessment and restitution in the amount of $1,162.20.
According to court documents, on July 9, 2021, Otto was an employee of the Transportation Safety Administration and a member of the Virgin Islands National Guard. In his capacity as a TSA officer, Otto produced a false document by placing the electronically generated signature of another employee to authorize his paid military leave request. Otto later submitted the fraudulently approved document and received compensation in the amount of $1,162.20.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant United States Attorney Everard E. Potter.
Deputy Attorney General Recognizes Two Western District of Pennsylvania Assistant U. S. AttorneysRead the Press Release
WASHINGTON – Two employees of the United States Attorney’s Office for the Western District of Pennsylvania were among those recognized by Deputy Attorney General Lisa Monaco and Director Monty Wilkinson of the Executive Office for U.S. Attorneys (EOUSA), at the 38th Director’s Awards Ceremony on May 3, 2023, in Washington, D.C. The ceremony was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
Assistant United States Attorney (AUSA) Shaun E. Sweeney and AUSA Heidi M. Grogan each received the Superior Performance as an Assistant United States Attorney Award for their successful prosecution of Price Montgomery, who was convicted of murdering a federal witness as she was preparing to leave her residence to travel to the United States Attorney’s Office for an interview. Montgomery was also convicted of firearms offenses and being the leader of a significant heroin trafficking organization. Montgomery received a sentence of life imprisonment.
EOUSA Director Wilkinson said: “The recipients we honor today have shown remarkable resilience and commitment to justice through challenging times, rising to the occasion with unwavering dedication to their mission. They have worked tirelessly to protect the rights of Americans and exemplify the very best in federal service.”
“It is of paramount importance to protect the safety of government witnesses. Through their tireless efforts, AUSAs Sweeney and Grogan brought the perpetrator of this egregious murder to justice. In addition to murdering a federal witness, Montgomery also shot and grievously wounded the witness’s mother during the attack,” said Acting United States Attorney Troy Rivetti. “We also want to recognize the tremendous investigative work of our partner law enforcement agencies—the Western Pennsylvania Office of the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Drug Enforcement Administration, the IRS Criminal Investigation Division, the U.S. Marshals Service, the Pennsylvania Office of the Attorney General and the Pittsburgh Bureau of Police.”
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Departments of Justice and Health and Human Services Announce Interim Resolution Agreement in Environmental Justice Investigation of Alabama Department of Public HealthRead the Press Release
The Departments of Justice and Health and Human Services (HHS) announced today an interim resolution agreement in their environmental justice investigation into the Alabama Department of Public Health and the Lowndes County Health Department (collectively ADPH) in Lowndes County, Alabama. ADPH cooperated throughout the investigation and agreed to the interim resolution agreement that puts ADPH on a path forward towards ensuring the development of equitable and safe wastewater disposal and management systems in Lowndes County.
In November 2021, Justice Department and HHS launched an investigation into whether ADPH’s conduct violates Title VI of the Civil Rights Act of 1964 (Title VI) and Section 1557 of the Affordable Care Act (Section 1557). Title VI prohibits recipients of federal funds from discriminating on the basis of race, color or national origin in their federally funded programs and activities. Section 1557 provides that an individual shall not be excluded from participation in, denied the benefits of or subjected to discrimination under, any health program or activity, any part of which is receiving federal financial assistance, based on the grounds prohibited under Title VI.
The nearly eighteen-month investigation revealed areas of concern in ADPH’s operations and compliance with Title VI and Section 1557. Specifically, the investigation revealed that ADPH’s enforcement of sanitation laws threatened residents of Lowndes County with criminal penalties and even potential property loss for sanitation conditions they did not have the capacity to alleviate. The investigation also revealed that ADPH engaged in a consistent pattern of inaction and/or neglect concerning the health risks associated with raw sewage. The investigation revealed that despite ADPH’s awareness of the issues and the disproportionate burden and impact placed on Black residents in Lowndes County, it failed to take meaningful actions to remedy these conditions.
“Today starts a new chapter for Black residents of Lowndes County, Alabama, who have endured health dangers, indignities and racial injustice for far too long,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our agreement puts Lowndes County on a path to long overdue reform as the state now takes steps necessary to provide access to basic sanitation services, end exposure to raw sewage and improve health outcomes for marginalized communities. This agreement marks the first environmental justice settlement ever secured by the Justice Department under our civil rights laws. Our work in Lowndes County should send a strong message regarding our firm commitment to advancing environmental justice, promoting accountability and confronting the array of barriers that deny Black communities and communities of color access to clean air, clean water and equitable infrastructure across our nation.”
“Environmental justice is a public health issue, and where you live should not determine whether you get sick from basic environmental hazards not faced in other affluent and white communities,” said Director Melanie Fontes Rainer of the HHS Office for Civil Rights. “We are pleased that Alabama’s Public Health Department has committed to take immediate and long-term steps to protect the health of Lowndes County residents. This community has long been at the heart of the civil rights struggle, and today’s resolution is yet another testament to the ongoing work that is the pursuit of racial justice.”
“This agreement creates a path towards sustainable sanitation solutions,” U.S Attorney Sandra J. Stewart for the Middle District of Alabama. “The measures required in the agreement will improve public health and the environment for the residents of Lowndes County. My office is proud to support the community and the parties in reaching these important goals.”
Under the agreement, ADPH has agreed to take a number of actions to address public health in Lowndes County including:
- Suspending Criminal Penalties and Liens: ADPH will suspend enforcement of sanitation laws that could result in criminal charges, fines, jail time and potential property loss for residents in Lowndes County who lack the means to purchase functioning septic systems. ADPH will ensure that Lowndes County residents are informed about the suspension of the criminal penalties and liens.
- Examining Public Health Risks within Lowndes County: ADPH will coordinate with the Centers for Disease Control and Prevention (CDC) to measure the level of health risks different populations experience from raw sewage exposure. ADPH agrees to work collaboratively with the CDC and adopt any public health recommendations provided by the CDC.
- Launching a Public Health Awareness Campaign: ADPH will develop a public health awareness campaign using radio, print ads, flyers, mailers, door-to-door outreach and other appropriate ways to ensure residents receive critical health and safety information related to raw sewage exposure.
- Providing Public Health Educational Materials for Lowndes County Health Care Providers: ADPH will create or supplement education materials for health care providers for Lowndes County residents, including school-based health centers and community-based organizations, to provide more information on symptoms and illness related to raw sewage exposure.
- Conducting Assessment to Determine Appropriate Septic and Wastewater Management Systems: ADPH will conduct a comprehensive assessment to determine the appropriate septic and wastewater management systems for homes within Lowndes County and use that information to prioritize properties to receive systems based on risk of exposure to raw sewage. ADPH cannot use this information for criminal penalties or liens.
- Creating a Sustainable and Equitable Public Health and Infrastructure Improvement Plan: Within one year, ADPH will create a plan to improve access to adequate sanitation systems and address public health risks associated with raw sewage exposure.
- Consistently Engaging with the Community: In carrying out each aspect of the interim resolution agreement, ADPH will consistently engage with community residents, local government officials, experts in wastewater, infrastructure, soil and engineering and environmental justice advocates. ADPH must also engage with community stakeholders on at least a quarterly basis regarding its progress in creating and implementing the final Public Health and Infrastructure Improvement Plan.
As a result of ADPH’s decision to enter into this interim voluntary resolution agreement, the departments have agreed to suspend their investigation. Under Title VI, the Justice Department is required to informally resolve an investigation that indicates noncompliance. If ADPH does not comply with the agreement, the departments will reopen their investigation.
Addressing discriminatory environmental and health impacts through enforcement of the nation’s civil rights laws is a top priority of both the Justice Department and HHS. Today’s announcement comes one day prior to the one-year anniversary of the Justice Department’s launch of its Office on Environmental Justice and its Comprehensive Environmental Justice Enforcement Strategy.
The Civil Rights Division’s Federal Coordination and Compliance Section and the HHS Office for Civil Rights conducted this investigation jointly with the support of the U.S. Attorney’s office in the Middle District of Alabama.
Individuals who believe their civil rights have been violated can file a complaint with the Civil Rights Division at www.civilrights.justice.gov/report/. Additional information about the Office for Civil Rights is available on its website at www.hhs.gov/ocr. If you believe that you have been discriminated against in programs or activities that HHS directly operates or to which HHS provides federal financial assistance, you may file a complaint for yourself or someone else at: www.hhs.gov/civil-rights/filing-a-complaint/index.html.
Departments of Justice and Health and Human Services Announce Interim Resolution Agreement in Environmental Justice Investigation of Alabama Department of Public HealthRead the Press Release
WASHINGTON – The Departments of Justice and Health and Human Services (HHS) announced today an interim resolution agreement in their environmental justice investigation into the Alabama Department of Public Health and the Lowndes County Health Department (collectively ADPH) in Lowndes County, Alabama. ADPH cooperated throughout the investigation and agreed to the interim resolution agreement that puts ADPH on a path forward towards ensuring the development of equitable and safe wastewater disposal and management systems in Lowndes County.
In November 2021, Justice and HHS launched an investigation into whether ADPH’s conduct violates Title VI of the Civil Rights Act of 1964 (Title VI) and Section 1557 of the Affordable Care Act (Section 1557). Title VI prohibits recipients of federal funds from discriminating on the basis of race, color, or national origin in their federally funded programs and activities. Section 1557 provides that an individual shall not be excluded from participation in, denied the benefits of, or subjected to discrimination under, any health program or activity, any part of which is receiving federal financial assistance, based on the grounds prohibited under Title VI.
The nearly eighteen-month investigation revealed areas of concern in ADPH’s operations and compliance with Title VI and Section 1557. Specifically, the investigation revealed that ADPH’s enforcement of sanitation laws threatened residents of Lowndes County with criminal penalties and even potential property loss for sanitation conditions they did not have the capacity to alleviate. The investigation also revealed that ADPH engaged in a consistent pattern of inaction and/or neglect concerning the health risks associated with raw sewage. The investigation revealed that despite ADPH’s awareness of the issues and the disproportionate burden and impact placed on Black residents in Lowndes County, it failed to take meaningful actions to remedy these conditions.
“Today starts a new chapter for Black residents of Lowndes County, Alabama who have endured health dangers, indignities and racial injustice for far too long,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our agreement puts Lowndes County on a path to long overdue reform as the state now takes steps necessary to provide access to basic sanitation services, end exposure to raw sewage and improve health outcomes for marginalized communities. This agreement marks the first environmental justice settlement ever secured by the Justice Department under our civil rights laws. Our work in Lowndes County should send a strong message regarding our firm commitment to advancing environmental justice, promoting accountability and confronting the array of barriers that deny Black communities and communities of color access to clean air, clean water and equitable infrastructure across our nation.”
“Environmental justice is a public health issue, and where you live should not determine whether you get sick from basic environmental hazards not faced in other affluent and white communities,” said Department of Health and Human Services Office for Civil Rights Director Melanie Fontes Rainer. “We are pleased that Alabama’s Public Health Department has committed to take immediate and long-term steps to protect the health of Lowndes County residents. This community has long been at the heart of the civil rights struggle, and today’s resolution is yet another testament to the ongoing work that is the pursuit of racial justice.”
“This agreement creates a path towards sustainable sanitation solutions,” U.S Attorney Sandra J. Stewart for the Middle District of Alabama. “The measures required in the agreement will improve public health and the environment for the residents of Lowndes County. My office is proud to support the community and the parties in reaching these important goals.”
Under the agreement, ADPH has agreed to take a number of actions to address public health in Lowndes County including:
- Suspending Criminal Penalties and Liens: ADPH will suspend enforcement of sanitation laws that could result in criminal charges, fines, jail time, and potential property loss for residents in Lowndes County who lack the means to purchase functioning septic systems. ADPH will ensure that Lowndes County residents are informed about the suspension of the criminal penalties and liens.
- Examining Public Health Risks within Lowndes County: ADPH will coordinate with the Centers for Disease Control and Prevention (CDC) to measure the level of health risks different populations experience from raw sewage exposure. ADPH agrees to work collaboratively with the CDC and adopt any public health recommendations provided by the CDC.
- Launching a Public Health Awareness Campaign: ADPH will develop a public health awareness campaign using radio, print ads, flyers, mailers, door-to-door outreach, and other appropriate ways to ensure residents receive critical health and safety information related to raw sewage exposure.
- Providing Public Health Educational Materials for Lowndes County Health Care Providers: ADPH will create or supplement education materials for health care providers for Lowndes County residents, including school-based health centers and community-based organizations, to provide more information on symptoms and illness related to raw sewage exposure.
- Conducting Assessment to Determine Appropriate Septic and Wastewater Management Systems: ADPH will conduct a comprehensive assessment to determine the appropriate septic and wastewater management systems for homes within Lowndes County and use that information to prioritize properties to receive systems based on risk of exposure to raw sewage. ADPH cannot use this information for criminal penalties or liens.
- Creating a Sustainable and Equitable Public Health and Infrastructure Improvement Plan: Within one year, ADPH will create a plan to improve access to adequate sanitation systems and address public health risks associated with raw sewage exposure.
- Consistently Engaging with the Community: In carrying out each aspect of the interim resolution agreement, ADPH will consistently engage with community residents, local government officials, experts in wastewater, infrastructure, soil and engineering, and environmental justice advocates. ADPH must also engage with community stakeholders on at least a quarterly basis regarding its progress in creating and implementing the final Public Health and Infrastructure Improvement Plan.
As a result of ADPH’s decision to enter into this interim voluntary resolution agreement, the departments have agreed to suspend their investigation. Under Title VI, the Justice Department is required to informally resolve an investigation that indicates noncompliance. If ADPH does not comply with the agreement, the departments will reopen their investigation.
Addressing discriminatory environmental and health impacts through enforcement of the nation’s civil rights laws is a top priority of both the Justice Department and the Department of Health and Human Services. Today’s announcement comes one day prior to the one-year anniversary of the Justice Department’s launch of its Office on Environmental Justice and its Comprehensive Environmental Justice Enforcement Strategy.
The Civil Rights Division’s Federal Coordination and Compliance Section and the HHS Office for Civil Rights conducted this investigation jointly with the support of the U.S. Attorney’s office in the Middle District of Alabama.
Individuals who believe their civil rights have been violated can file a complaint with the Civil Rights Division at www.civilrights.justice.gov/report/. Additional information about the Office for Civil Rights is available on its website at www.hhs.gov/ocr. If you believe that you have been discriminated against in programs or activities that HHS directly operates or to which HHS provides federal financial assistance, you may file a complaint for yourself or someone else at: www.hhs.gov/civil-rights/filing-a-complaint/index.html.
Department of Justice Recognizes Two U.S. Attorney's Office EmployeesRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced that two U.S. Attorney’s Office employees were among the 159 members of the Justice Department recognized by Attorney General Merrick B. Garland, Deputy Attorney General Lisa Monaco, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 38th Director’s Awards Ceremony yesterday in Washington, D.C.
The Western District of North Carolina was one of 31 districts represented at the ceremony which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.
Fred Hudson was recognized for his exemplary work as the Western District’s Law Enforcement Coordinator (LEC). As an LEC, Mr. Hudson has spent years cultivating relationships with federal, state, and local law enforcement, coordinating law enforcement officer training, and assisting partner agencies with federal grant opportunities. For over 18 years, Mr. Hudson has also spearheaded the Office’s community outreach efforts by fostering relationships with community organizations, schools, service providers, and other important stakeholders, and organizing events and engagement opportunities that advance Department of Justice priorities.
Lia Bantavani was recognized for her work as the Office’s Public Information Officer. In that capacity, Ms. Bantavani handles the Office’s communications with the media and the public, drafts and disseminates press releases, responds to media inquiries and coordinates media interviews. In addition, Ms. Bantavani maintains the Offices’ website and social media accounts, and assists with amplifying the Office’s outreach efforts and Department of Justice initiatives through targeted campaigns that promote public safety.
“I am honored and delighted that Fred and Lia were recognized for their achievements and contributions to furthering the mission of the Justice Department. This well-deserved award speaks to their dedication, hard work and professionalism. Fred and Lia are dedicated public servants who embody our ongoing commitment to serve our communities and further the cause of justice,” said U.S. Attorney King.
EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.
Defense Contractor and Chief Executive Officer Resolve False Claims Act and FIRREA Allegations for Misusing Pandemic-Relief FundsRead the Press Release
ALEXANDRIA, Va. – CybeCys, Inc., a defense contractor located in Texas, and its Chief Executive Officer, Harish Vajja of Fairfax, agreed to pay more than $283,000 in civil penalties, damages, and restitution and have repaid the full amount of two pandemic-relief loans to resolve allegations that Vajja transferred funds from the Small Business Administration’s Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) program to his individual investment account, where he used the funds to purchase cryptocurrency and other investments.
The PPP and the EIDL program offered loans to eligible small businesses for economic relief during the COVID-19 pandemic. PPP borrowers were required to certify that they would use the funds to retain workers and maintain payroll or for other permissible purposes. EIDL borrowers were required to certify that they would use the funds solely as working capital to alleviate the economic injury caused by the COVID-19 pandemic.
According to the allegations, Vajja, on behalf of CybeCys, applied for a $954,446 PPP loan and an $80,700 EIDL loan. After CybeCys received the $954,446 PPP loan, Vajja transferred PPP funds to his individual investment account, where he allegedly purchased securities, exchange-traded funds, and cryptocurrency, while CybeCys used other corporate funds to maintain payroll. Vajja also allegedly directed EIDL funds issued to CybeCys to be deposited into his personal bank account, after which he allegedly transferred portions of the funds to his individual investment account and used the funds to purchase securities, exchange-traded funds, and cryptocurrency.
As part of the resolution, CybeCys and Vajja agreed to pay $178,493 in restitution, civil penalties, and damage multipliers under the False Claims Act, and $104,515 in civil penalties under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). CybeCys also repaid the full amounts of the PPP and EIDL loans and agreed not to seek forgiveness of the PPP loan.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia, the Internal Revenue Service’s Criminal Investigation, and the Small Business Administration’s Office of Inspector General.
The matter was prosecuted by Assistant U.S. Attorney William Hochul III.
The civil claims are allegations only; there has been no admission of liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Defendants Sentenced in Air Force Contract Fraud CaseRead the Press Release
SAN ANTONIO – The four remaining defendants in the fraud case involving former Air Force civilian employee Keith Seguin were sentenced this week in a federal court in San Antonio.
According to court documents, David Joseph Bolduc Jr., 62, of Herndon, Virginia, was the owner and director of operations at QuantaDyn, a software engineering company that worked on Randolph Trainer Development (RTD) simulators at Randolph Air Force Base. From 2007 through 2018, he and others paid $2,375,725.26 in bribes to Seguin in return for Seguin’s influence in obtaining government contracts and subcontracts for QuantaDyn. Bolduc was sentenced to 120 months in prison for one count of conspiracy to commit wire fraud and ordered to pay $37,757,713.93 in restitution to the government in addition to a forfeiture of property and $8,750,775.77.
John G. Hancock, 61, of Fairborn, Ohio, was sentenced to 40 months in prison for one count of conspiracy to commit wire fraud and ordered to pay $23,769,884.41 in restitution to the government. Hancock and co-conspirator Karen K. Paulsen aided Seguin in unlawfully manipulating the award amounts and winners of federal contracts, to corrupt contracting processes, and to defraud the Air Force, General Services Administration (GSA), and companies competing for government contracts.
Paulsen, 59, of Beaver Creek, Ohio, was sentenced for one count of conspiracy, to five years of probation with six months home confinement and 100 hours of community service during each year of probation. She was also ordered to pay $8,015,860.00 in restitution to the government.
Rubens Wilson Fiuza Lima, 73, of Marietta, Georgia, was sentenced to 27 months in prison and ordered to pay $653,984.20 in restitution to the government for one count of conspiracy. As a friend of Seguin, Lima took a job as a subcontractor on an RTD contract in Texas, used his business Impex Import Export Inc. to assist Seguin by disguising the bribe money paid to Seguin as legitimate purchases of supplies and equipment related to flight simulators.
“The sentences handed down in this case send a clear message that corrupt behavior will not be tolerated, especially when it involves the safety and security of our nation’s military,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “We are grateful for the hard work of our law enforcement partners in uncovering this corruption and holding these co-conspirators accountable. My office will continue to work tirelessly to protect the integrity of our government contracts, ensuring taxpayer dollars are spent wisely.”
“The successful prosecution and sentencing of additional defendants demonstrate our unrelenting pursuit of justice in the face of complex criminal networks. Each co-conspirator played an active role in facilitating this fraudulent scheme and inflicted significant harm on the integrity of our institutions,” said Special Agent in Charge Ramsey E. Covington of IRS Criminal Investigation’s Houston Field Office. “Our team remains committed to working together to dismantle such schemes and safeguard the interests of our nation.”
“The results of this investigation exemplify the skill, persistence, and professionalism of the special agents, auditors, analysts, and attorneys who worked together to achieve justice and maintain taxpayer confidence in the integrity of the federal procurement system," said Special Agent in Charge Jamie M. Willemin for GSA OIG Southwest and Rocky Mountain Investigations Division. "Their efforts and dedication should be applauded.”
"The Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) is committed to combating corruption that pollutes the DoD contracting process," said Acting Special Agent in Charge Gregory Shilling for DCIS Southwest Field Office. "These results are a reflection of the steadfast vigilance of DCIS and our investigative partners to protect against those who seek to fraudulently enrich themselves at the expense of the American taxpayer."
"The sentences reflect the results of the skilled and hard work put forth by all agencies involved," said Special Agent in Charge Blair Holmstrand, Air Force Office of Special Investigations, Procurement Fraud Detachment 3.
"This week’s sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in their pursuit of those who choose to defraud the government," said Special Agent in Charge Larry S. Moreland, of the Department of the Army Criminal Investigation Division’s, Major Procurement Fraud Field Office.
The GSA OIG; DCIS; AFOSI; Army CID; and IRS-CI investigated the case.
Assistant U.S. Attorneys William Lewis, Kelly Stephenson and Special Assistant U.S. Attorney Jay Porier prosecuted the case.
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Defendants Convicted on Child Pornography Charges Receive Lengthy Prison SentencesRead the Press Release
LAKE CHARLES, La. – Two men convicted of receipt of child pornography appeared in federal court today for sentencing, announced United States Attorney Brandon B. Brown. United States District Judge James D. Cain, Jr. sentenced Terrence Landry and Steven M. Stinnett as follows:
Terrence Landry, 34, of Lake Charles, Louisiana, was sentenced to 210 months (17 years, 6 months) in prison, followed by 10 years of supervised release. In May 2020, agents with the Louisiana Bureau of Investigation received a complaint from the National Center for Missing and Exploited Children (NCMEC) regarding the possible distribution of child pornography originating in Lake Charles, Louisiana. Further investigation by agents revealed that the subscriber of the IP address associated with the images of child pornography was Landry. Agents obtained a search warrant and subsequently searched the residence of Landry. Numerous computers and electronic equipment belonging to Landry were seized and analyzed by law enforcement. Agents determined that those electronic devices contained over 5,000 still images and more than 400 videos containing child pornography, some of which depicted prepubescent children engaged in sexual activity with adults. Landry admitted to receiving specific images via the internet in May 2016, knowing that they contained child pornography. Landry pleaded guilty to the charge of receipt of child pornography on April 13, 2022.
The case was investigated by the Department of Homeland Security Investigations and Louisiana Bureau of Investigation and prosecuted by Assistant U.S. Attorney Craig R. Bordelon.
Steven M. Stinnett, 51, of Lake Charles, Louisiana, a former associate professor at McNeese State University, was sentenced to 151 months (12 years, 7 months) in prison, followed by a lifetime of supervised release. On November 17, 2022, law enforcement officers in Calcasieu Parish executed a search warrant at the residence of Stinnett. Officers seized computers and electronic equipment during the search. Agents with the Department of Homeland Security Investigations conducted a forensic review of Stinnett’s computer and found numerous images and videos containing child sexual abuse material. Stinnett admitted that one of the child pornography images was received via the internet in April 2017 and depicted a prepubescent female in a sexually explicit manner. Stinnett admitted to having 228 still images and 57 videos containing child sexual abuse material in his possession. Stinnett pleaded guilty to a charge of receipt of child pornography on February 3, 2023.
The case was investigated by the Department of Homeland Security Investigations and McNeese State University Police and prosecuted by Assistant U.S. Attorney Craig R. Bordelon.
These cases are part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Colorado Man Pleads Guilty to Federal Hate Crime for Church ArsonRead the Press Release
A Colorado man pleaded guilty today to a hate crime charge in connection with a fire he set to a church in Loveland, Colorado.
According to court documents and admissions during the plea hearing, Darion Ray Sexton, 22, intentionally set fire to the church in the evening hours of Jan. 19. Sexton admitted that he set this fire by throwing two Molotov cocktails at the church – one at the front door and the other at the basement. Sexton further admitted that he was motivated to set this fire due to the religious character of the church and that he intended to destroy the church.
“Protecting religious freedom and observance is a top priority for the Department of Justice,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue to vigorously prosecute those who attack houses of worship and target religious communities.”
“We all have a right to feel safe and secure in our houses of worship – no matter our religion or belief,” said U.S. Attorney Cole Finegan for the District of Colorado. “An act of violence in one of our sacred places is especially serious, and we will work with our law enforcement partners to vigorously prosecute all such offenses.”
“The FBI treats hate crimes as the highest priority of our civil rights program because everyone deserves to feel safe to exercise their religion without fear of violence from others,” said Special Agent in Charge Mark Michalek of the FBI Denver Field Office. “FBI Denver is committed to protecting those rights, and we will continue to aggressively work with our law enforcement partners to bring justice to all communities that have been targeted.”
The sentencing hearing is scheduled for July 21. Sexton faces a maximum sentence of 20 years in prison and a $250,000 fine.
The FBI, ATF and the Loveland Police and Fire Departments investigated the case.
Assistant U.S. Attorney Bryan D. Fields for the District of Colorado and Trial Attorney Maura White of the Civil Rights Division’s Criminal Section are prosecuting the case.
Colorado Man Pleads Guilty to Federal Hate Crime for Church ArsonRead the Press Release
A Colorado man pleaded guilty today to a hate crime charge in connection with a fire he set to a church in Loveland, Colorado.
According to court documents and admissions during the plea hearing, Darion Ray Sexton, 22, intentionally set fire to the church in the evening hours of Jan. 19. Sexton admitted that he set this fire by throwing two Molotov cocktails at the church – one at the front door and the other at the basement. Sexton further admitted that he was motivated to set this fire due to the religious character of the church and that he intended to destroy the church.
“Protecting religious freedom and observance is a top priority for the Department of Justice,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue to vigorously prosecute those who attack houses of worship and target religious communities.”
“We all have a right to feel safe and secure in our houses of worship – no matter our religion or belief,” said U.S. Attorney Cole Finegan for the District of Colorado. “An act of violence in one of our sacred places is especially serious, and we will work with our law enforcement partners to vigorously prosecute all such offenses.”
“The FBI treats hate crimes as the highest priority of our civil rights program because everyone deserves to feel safe to exercise their religion without fear of violence from others,” said Special Agent in Charge Mark Michalek of the FBI Denver Field Office. “FBI Denver is committed to protecting those rights, and we will continue to aggressively work with our law enforcement partners to bring justice to all communities that have been targeted.”
"Arson, especially when motivated by hatred, should never be tolerated, and often leads to deadly consequences," said ATF Special Agent in Charge Brent Beavers. "Denver Fire Department Accelerant Detection Canine Peaches responded with our Certified Fire Investigators, who provided expertise and guidance while working in tandem with law enforcement partners to investigate and determine the origin and cause of the arson, making a substantial contribution to this investigation."
The sentencing hearing is scheduled for July 21. Sexton faces a maximum sentence of 20 years in prison and a $250,000 fine.
The FBI, ATF, and the Loveland Police and Fire Departments investigated the case.
Assistant U.S. Attorney Bryan D. Fields for the District of Colorado and Trial Attorney Maura White of the Civil Rights Division’s Criminal Section are prosecuting the case.
Clarksville Man Convicted of Drug Trafficking & Firearms CrimesRead the Press Release
NASHVILLE – A federal jury in Nashville has convicted a Clarksville, Tennessee, man of drug trafficking and firearms offenses, announced United States Attorney Henry C. Leventis.
Mark Ellis, 29, was convicted after a two-day trial of conspiracy to distribute, and possession with intent to distribute, more than 400 grams of fentanyl; being a convicted felon in possession of a firearm; and possession of a firearm in furtherance of a drug trafficking crime.
Ellis and his wife, Yennifer Angeles, 23, were indicted by a federal grand jury in February 2022 after their arrests by Clarksville Police Department (CPD) officers in January 2022.
"We will relentlessly pursue violent drug dealers like this one to hold them accountable for their crimes," said U.S. Attorney Leventis. "I commend the trial team, the Clarksville Police Department and ATF for their work investigating and prosecuting this important case. The citizens of Clarksville are safer because of their efforts."
According to evidence and testimony introduced at trial, CPD officers, using a confidential informant, made a controlled purchase of fentanyl from Ellis while seated in his car at a residence on Mark Spitz Drive in Clarksville. During the transaction, Ellis’ wife exited the car, went into the house, and returned with a baggie of fentanyl which was sold to the informant. A 9mm handgun was visible in the car during the transaction. The resulting investigation and subsequent search of Ellis’ vehicle led to the recovery of a Ruger 9mm pistol and the seizure of almost a pound of fentanyl from the residence, where Ellis lived.
During this investigation, and at the time of his arrest, Ellis was under electronic monitoring and out on bond from an unrelated murder charge in Montgomery County.
While in the Montgomery County Jail, Ellis called his wife and directed her to continue selling fentanyl. That same day, Angeles was stopped by CPD officers in the same vehicle used to make the drug deal the previous day. Further investigation led to the execution of a search warrant on South Lancaster Road in Clarksville, where more than 40 grams of fentanyl was recovered.
“ATF and our law enforcement partners work tirelessly to disrupt the illegal possession of firearms, distribution of narcotics and other acts of violence within our community,” said Marcus Watson, Special Agent in Charge of the ATF Nashville Field Division. “The outcome of this case is the result of extremely great work done by the individuals that took part in this investigation.”
"I would like to commend the detectives and agents with the Clarksville Police Department’s Special Operations Unit, agents with the ATF, and the federal prosecutors who spent countless hours on this investigation,” said Chief David Crockarell. “Their relentless pursuit of justice culminated with the guilty verdict ensures the citizens of Clarksville are much safer today.”
Ellis faces a minimum of 15 years, and up to life in prison when he is sentenced on December 8, 2023. Yennifer Angeles pleaded guilty in March 2023 to conspiracy to distribute fentanyl and faces up to 20 years in prison. She will be sentenced on August 9, 2023.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Clarksville Police Department. Assistant U.S. Attorney Robert E. McGuire is prosecuting the case.
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Citizen of Dominican Republic Sentenced to 78 Months in Prison for Role as Leader of International Money Laundering OrganizationRead the Press Release
NEWARK, N.J. – The leader of an international money laundering organization in the Dominican Republic was sentenced today to 78 months in prison and ordered to pay $80 million in forfeiture for his role in a conspiracy to commit money laundering. Luis Velazquez-Cordero, aka El Pequeño, 38, a citizen of the Dominican Republic, pleaded guilty before U.S. District Judge Brian R. Martinotti on May 4, 2022, to Count One of an indictment charging him with conspiring to commit money laundering. Velazquez-Cordero was extradited to the United States after his arrest the Dominican Republic on July 28, 2020.
Charleston Woman Sentenced for COVID-19 Relief Fraud SchemeRead the Press Release
CHARLESTON, W.Va. – Tiffany Bowlin, 33, of Charleston, was sentenced today to five years of federal probation, including four months on home detention, and ordered to pay $20,833 in restitution for wire fraud. Bowlin admitted a scheme to defraud the Paycheck Protection Program (PPP) of $20,833 in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
According to court documents and statements made in court, on April 27, 2021, Bowlin applied for a PPP loan for her purported sole proprietorship, a hair salon operating under the business name “Tiffany Bowlin.” Bowlin admitted that she falsely stated that “Tiffany Bowlin” was established in 2019, when it in fact was not a legitimate business and had not engaged in substantial business activities on or before February 15, 2020. Bowlin further admitted that she submitted a false IRS Form 1040 stating that “Tiffany Bowlin” received $106,600 in gross income in 2020.
The CARES Act, enacted in March 2020, offered emergency financial assistance to Americans suffering from the economic effects caused by the COVID-19 pandemic. This assistance included forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program. Businesses applying for PPP loans had to certify that the business was in operation on February 15, 2020, and were required to provide documentation showing their prior gross income from either 2019 or 2020.
Bowlin submitted the loan application electronically from West Virginia and it was uploaded to servers in Kansas for processing. Bowlin’s loan application was approved and she received $20,833 via an electronic transfer to her personal bank account on May 13, 2021. Bowlin admitted that she spent the fraudulently obtained money to benefit herself personally and not for authorized business expenses.
On March 2, 2022, Bowlin applied to have the PPP loan forgiven even though she had not spent the loan proceeds on permissible business expenses. The SBA forgave Bowlin’s PPP loan on or about March 9, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police-Bureau of Criminal Investigations (BCI), and the Litigation Financial Analyst with the U.S. Attorney’s Office.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Ryan Blackwell prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-205.
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Centreville Man Pleads Guilty to Conspiracy to Possess with Intent to Distribute FentanylRead the Press Release
Gulfport, Miss. – A Centreville man pled guilty to conspiracy to possess with intent to distribute fentanyl, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Phillip Montgomery, 41, pled guilty in U.S. District in Gulfport on May 3, 2023.
According to court records, in late 2021, the DEA conducted an investigation involving a large drug trafficking organization trafficking large quantities of fentanyl in Moss Point, Mississippi. The investigation revealed that individuals were selling fentanyl that was brought to them by Phillip Montgomery. Montgomery admitted in court to bringing 3 kilograms of fentanyl into Jackson County and furnishing it to the individuals involved in the drug trafficking organization in Moss Point so that it could be sold.
Montgomery will be sentenced on August 3, 2023 and faces a minimum of 10 years to life in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Drug Enforcement Administration.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Cartel member imprisoned for drug trafficking in local neighborhoodRead the Press Release
HOUSTON – A 32-year-old Mexican citizen who illegally resided in Houston has been ordered to federal prison following his conviction for conspiracy to distribute meth during a transaction that occurred in a Houston residential neighborhood, announced US Attorney Alamdar S. Hamdani.
Ismael Salas Navarro pleaded guilty Nov. 17, 2022.
Today, U.S. District Judge David Hittner sentenced Navarro to a total of 135 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment.
“Mexican cartels and their drugs are not welcome in our cities,” said Hamdani. “Cartels, like the Gulf Cartel, endanger the lives of our citizens and loved ones. Today’s sentence sends a strong message to criminals like Navarro that our communities will not tolerate the scourge of drug traffickers.”
Navarro’s arrest and ultimate conviction stems from an investigation into individuals affiliated with the Gulf Cartel operating in Houston. On Jan. 25, 2021, law enforcement recorded Navarro ordering two kilograms of crystal meth from a co-conspirator. Authorities then watched as the narcotics were delivered to Navarro in a quiet Houston neighborhood.
They took him into custody before he could drive off with the narcotics.
Navarro has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration, FBI, Houston Police Department, Harris County Precinct 5 Constable’s Office and the Harris County Sheriff’s Office conducted this investigation. Assistant U.S. Attorney Shelley J. Sullivan prosecuted the case.
Camden Registered Sex Offender Admits Sex Trafficking MinorsRead the Press Release
CAMDEN, N.J. – A Camden man admitted trafficking three minors to engage in commercial sex acts, U.S. Attorney Philip R. Sellinger announced today.
Semaj A. Gilmore, 33, pleaded guilty before U.S. Chief District Judge Renée Marie Bumb on May 3, 2023, to three counts of a superseding indictment charging him with sex trafficking minors.
According to documents filed in this case and statements made in court:
From September 2020 to April 2021 Gilmore transported, at various times, three minor victims from Philadelphia to New Jersey knowing they would engage in a commercial sex act at Gilmore’s direction. Each of the victims was under age 18 at the time.
Each count of sex trafficking of a minor is punishable by a mandatory minimum penalty of 10 years in prison, a maximum of life in prison and a fine of up to $250,000. Sentencing is scheduled for Sept. 5, 2023.
U.S. Attorney Sellinger credited special agents of FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia, with the investigation leading to the guilty plea. He also thanked members of the Mount Laurel Police Department and the Burlington County Prosecutor’s Office for their assistance.
The government is represented by Assistant U.S. Attorney Jeffrey Bender and Special Assistant U.S. Attorney Katelyn Waegener of the U.S. Attorney’s Office in Camden.
gilmore.sindictment.pdfCalifornia pair indicted for retail theft scheme; more than $800,000 in equipment stolen from home improvement chainRead the Press Release
Seattle – A man and woman from Southern California were arrested this week on an indictment charging them with conspiracy and ten counts of wire fraud related to an organized retail theft scheme, announced U.S. Attorney Nick Brown. Jalen Amir Thomas, 27, of Santa Monica, California, and Armia Ta’Jae Timmons, 25, of Los Angeles, were arrested on the eleven-count indictment. They appeared in U.S. District Court in the Central District of California yesterday. Prosecutors will ask that they be detained and transported to the Western District of Washington for arraignment.
“Organized retail theft has exploded across the country, due in large part to the growth of an online resale marketplace,” said U.S. Attorney Nick Brown. “In this case, we allege the coconspirators hatched a scheme to rent high-value construction equipment and then fail to return it. They allegedly sold the stolen goods on websites such as OfferUp and Facebook Marketplace. They traveled through 23 different states and hit nearly 200 stores causing more than $800,000 in losses. We are putting a stop to it here in Western Washington.”
“As the US retail sector faces increasing challenges such as layoffs and store closings, it becomes more difficult for stores to absorb the impact of retail fraud, which amounts to billions of dollars in losses,” said SAC Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI is proud to have started a strategic initiative with the Seattle Police Department and various corporate partners in 2023 to hold those involved in organized retail theft accountable for their actions.”
According to the indictment, as early as March 2022, Thomas led a group including Timmons, that traveled the U.S., stopping at home improvement stores and renting two types of expensive construction equipment: jumping jack tampers and vibratory plate compactors valued between $1,500 and $2,000 each. The group used debit cards to make a small rental deposit for each machine and signed an agreement that if the equipment was not returned on time, they would pay mounting fees. They used false identities and ruse telephone numbers to rent the equipment. They transported stolen goods in vans and rental trucks.
In all, some 480 pieces of equipment were stolen from the home improvement stores. When a store tried to charge the debit account for the value of the equipment or the penalties incurred, it learned there was insufficient funds to cover the debt. Thomas and Timmons then attempted to sell the stolen equipment at a steep discount on various online marketplaces.
The group stole multiple items of equipment from stores in Federal Way, Tacoma, Vancouver, Covington, Longview, Bothell, Everett, Redmond, and Seattle.
Because the deposits traveled by wire outside the state of Washington, the pair is charged with conspiracy to commit wire fraud and ten counts of wire fraud and/or aiding and abetting wire fraud.
The conspiracy count and the wire fraud counts are each punishable by up to 20 years in prison and a $250,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The investigation is being led by Homeland Security Investigations (HSI).
The case is being prosecuted by Assistant United States Attorney Lauren Watts Staniar.
California man sentenced to five years in prison for assisting in the transportation a person to Billings for prostitutionRead the Press Release
BILLINGS — A California man who was convicted in a commercial sex investigation in which a woman brought a minor girl to Billings to engage in prostitution was sentenced today to five years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Cecil Jerome Hatchett, 32, of Carmichael, California, pleaded guilty in January to transportation of a person with intent to engage in prostitution.
Co-defendant, Ashley Stella, of Reno, Nevada, was sentenced previously to eight years in prison for transportation of a minor to engage in prostitution.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that Hatchett arranged and aided the transportation of Stella and a minor girl, identified as Jane Doe, to travel to Montana and elsewhere to engage in commercial sex. In April 2021, law enforcement responded to a call by Quality Inn staff in Billings about possible commercial sex activity. Upon arrival, officers found an individual emerging from the motel room while buttoning up his shirt and Stella and Jane Doe in the room. Law enforcement interviewed all three individuals and determined that the individual had responded to an ad in setting up the meeting and that Stella and the individual had corresponded about the potential sex encounter before he arrived in the room. Stella later admitted that when law enforcement arrived, she was in the midst of a commercial sex encounter.
The government further alleged that these events triggered a federal investigation into allegations of sex trafficking. Investigators found electronic messages between Hatchett and Stella discussing commercial sex appointments, including those that involved Jane Doe. Hatchett also had rented the car that Stella and Jane Doe used to travel to Montana.
Assistant U.S. Attorneys Zeno B. Baucus and Bryan T. Dake prosecuted the case. The FBI, Montana Division of Criminal Investigation, Billings Police Department, Reno, Nevada., Police Department and IRS conducted the investigation.
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Buffalo Woman Sentenced for Setting Fire That Injured A Buffalo FirefighterRead the Press Release
BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced that Jade Smart, 34, of Buffalo, NY, who was convicted of unlawfully damaging or destroying property by means of fire or explosive causing personal injury to a public safety officer, was sentenced to serve 51 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney P. Richard Antoine, who handled the case, stated that in the early evening hours of January 28, 2020, the Buffalo Fire Department responded to the scene of a fire at 79 Kilhoffer Street in Buffalo, and found the building engulfed in flames. Ultimately, the building burned completely to the ground. A firefighter injured his back fighting the fire and subsequently went on medical leave to address the injuries. Investigators recovered a firebomb, and a red gas can nearby and ruled the fire an arson. Video footage recovered from a nearby gas station shows Smart filling up a red plastic gas can. Smart then went to 79 Kilhoffer Street, where she poured gasoline from the plastic gas can into a used iced tea bottle and used it to set the residence on fire. 79 Kilhoffer Street was a building owned by the Buffalo Peacemakers and under renovation and possessed by Habitat for Humanity.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division, and the Buffalo Fire Department, under the direction of Commissioner William Renaldo.
Buffalo Man Pleads Guilty to Drug and Gun ChargesRead the Press Release
BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Rayshawn Miller, 40, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to possession with intent to distribute fentanyl and acetyl-fentanyl, and possession of firearms in furtherance of drug trafficking crimes. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Evan K. Glaberson, who is handling the case, stated that on July 20, 2021, the DEA executed a search warrant at Miller’s Broadway Street residence and seized 167 grams of a mixture containing fentanyl and acetyl fentanyl, 21 grams of crack cocaine, 124 grams of cocaine, two pistols, ammunition, $15,380 in cash, and drug packaging materials.
The plea is the result of an investigation by Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, and the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia.
Sentencing is scheduled for July 11, 2023, at 9:00 a.m. before Judge Sinatra.
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Buffalo Man Going to Prison for COVID Relief FraudRead the Press Release
BUFFALO, N.Y. – U.S. Attorney Trini E. Ross announced today that Christian Johnson, 25, of Buffalo, NY, who was convicted of wire fraud, was sentenced to serve 30 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney David J. Rudroff, who handled the case, stated that Johnson submitted multiple fraudulent Paycheck Protection Program loan applications on behalf of a company called Million Man LLC (Million Man) to at least three financial institutions. The applications contained numerous false and misleading statements about Million Man’s business and operations, including the number of employees and average monthly payroll. Johnson submitted falsified federal tax documents and payroll records in support of the applications.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans, guaranteed by the Small Business Administration (SBA), to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
This case was investigated by the FDIC-OIG, TIGTA-OIG, FBI, and SBA-OIG. Trial Attorneys Matthew Reilly and Jennifer Bilinkas of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David J. Rudroff of the U.S. Attorney’s Office of the Western District of New York are prosecuting the case.
The Fraud Section leads the Department’s prosecution of fraud schemes that exploit the PPP. In the nine months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Billings man admits sexual abuse crimeRead the Press Release
BILLINGS — A Billings man today admitted to sexually abusing a girl in Busby, on the Northern Cheyenne Indian Reservation, between 2009 and 2010, U.S. Attorney Jesse Laslovich said.
Travis Ridenour, aka Travis Lamere, 34, pleaded guilty to abusive sexual contact. Ridenour faces a maximum of 10 years in prison, a $250,000 fine and not less than five years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Aug. 31. Ridenour was detained pending further proceedings.
The government alleged in court documents that Jane Doe 1 disclosed that when she approximately 13 years old, in 2009, she was sleeping in the same bed as another female. Ridenour also was in the bed. At some point, Jane Doe 1 woke up, and Ridenour’s hand was underneath her underwear on her vaginal area.
The U.S. Attorney’s Office is prosecuting the case. The FBI conducted the investigation.
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Attorney General Merrick Garland Honors Three Spokane Federal Prosecutors for their Outstanding Government ServiceRead the Press Release
Spokane, Washington – U.S. Attorney Vanessa R. Waldref announced today that three members of her team – Special Assistant United States Attorney (SAUSA) Frieda Zimmerman as well as Assistant United States Attorneys (AUSAs) Tyler Tornabene and Dan Fruchter – were honored for their service to the United States and the citizens of Eastern Washington. SAUSA Zimmerman received the Director’s Award for Superior Performance as a Special Assistant United States Attorney. AUSAs Tornabene and Fruchter were awarded with the Director’s Award for Superior Performance by Civil AUSAs. Each was honored by Attorney General Merrick Garland at the Annual Director’s Awards Ceremony in Washington D.C. earlier today. Attorney General Garland himself is a past recipient of a Director’s Award.
SAUSA Zimmerman, who serves as a SAUSA for the Department of Energy Office of Inspector General, was honored for her incredible contributions to the Department of Justice, including in the areas of white-collar crime, False Claims Act cases, health care fraud, civil rights, and COVID-19 fraud. She is universally respected throughout the Department for her unique expertise in procurement fraud, and she is beloved by agents for her skill, dedication, breadth of expertise, and poise. SAUSA Zimmerman embodies not only the best qualities in a federal prosecutor and SAUSA, but the critically important relationships between the U.S. Attorney’s Office and its law enforcement partners.
AUSAs Tornabene and Fruchter were honored for their work to protect innocent patients, who were being defrauded by their medical providers. AUSAs Tornabene and Fruchter resolved allegations against two neurosurgeons, who performed medically unnecessary spinal surgeries and falsely billed federal and state health programs in Eastern Washington. Not only did AUSAs Tornabene and Fruchter – along with their state and federal partners – stop the appalling conduct, but their team secured the Eastern District of Washington’s largest-ever health care fraud settlement of $22,690,458. As part of the settlement, Providence Health and Services not only admitted that their doctors endangered patient safety for profit, Providence also entered into a five-year Corporate Integrity Agreement requiring Providence to implement and maintain quality-of-care and patient safety obligations. Beyond this trailblazing case, AUSAs Tornabene and Fruchter have prosecuted numerous nation-wide fraud cases, built a successful COVID-19 Relief Fraud Strike Force, and significantly contributed to the District’s expanded civil rights efforts.
In announcing today’s awards, U.S. Attorney Waldref thanked SAUSA Zimmerman and AUSAs Tornabene and Fruchter for their incredible service. “Today’s awards are a reflection of the amazing work being done in the Eastern District of Washington by our entire team. The AUSAs in our District often face daunting and sometimes dangerous challenges. Yet, Frieda, Tyler, and Dan have dedicated their leadership, time, expertise, and energy to the service of their nation. And they, like each of the members of my office, are devoted to the high ideals and deeply-held values that define our great nation and our mission to ensure justice is meted out fairly and swiftly. Each member of our office routinely sacrifices their time and energy to keep Eastern Washington safe and strong. I am honored to serve alongside such talented government servants, whose commitment to justice is beyond reproach. I am also so grateful for the support and administrative staff, without whom our mission could not be possible.”
SAUSA Zimmerman works at the Department of Energy Office of Inspector General, and serves as a SAUSA at the U.S. Attorney’s Office in Spokane, Washington. Through her work at the Department of Energy, SAUSA Zimmerman is able to take on additional cases combating fraud and supporting environmental remediation at the Hanford Cleanup Site.
AUSA Tornabene leads the Civil Rights Unit for the Eastern District of Washington and serves as an AUSA in the Civil Division. AUSA Fruchter leads the office’s Fraud and White Collar Unit and serves as a Deputy Chief in the Criminal Division. He handles both criminal and civil fraud matters.