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18 April 2023
Raleigh Eight Trey Gangster Crip Convicted in Aborted Murder Plot Targeting Rival Gang Member Receives 11 years in PrisonRead the Press Release
RALEIGH, N.C. – A Raleigh member of the Eight Trey Gangster Crips (ETGC) was sentenced yesterday to 132 months in prison for trafficking methamphetamine and his role in a murder conspiracy to kill a rival gang member that was aborted by law enforcement. Clinton Basco pled guilty to the charges on June 23, 2021.
“This case is part of an operation that led to over twenty indictments, taking down dangerous gang leaders and those who, like Basco, peddled dangerous drugs and conspired to kill rivals,” said U.S. Attorney Michael Easley. “We’ve forged a close partnership with Raleigh Police and the ATF to tackle violent crime, allowing for swift action by police to prevent yet another senseless murder.”
According to court documents and other information presented in court, an investigation identified a large drug-trafficking organization (DTO) which was distributing significant amounts of cocaine, methamphetamine, phencyclidine (PCP), 3,4-Methlyenedioxymethamphetamine (MDMA) and marijuana in the Raleigh area. The conduct of the DTO was perpetrated by leaders, members, and associates of the ETGC. Basco was responsible for conspiring to distribute more than 1,124.54 kilograms of converted drug weight in the Raleigh area.
Basco was in a leadership role within the ETGC and was known as an enforcer who committed acts of violence of behalf of the EGTC in Raleigh. Wiretap surveillance intercepted a conversation among members of the ETGC to kill a member of a rival gang that had tased high-level ETGC member Deandre Earp. At the direction of ETGC leader Dexter Maxwell, another gang member, Rayquan Wiggins, provided information on when the target of the murder plot would be in a certain area in Raleigh so that other ETGC’s, Basco and Earp, could commit the murder. Agents took enforcement action to prevent the murder from occurring by having Basco and Earp stopped as they were traveling by car to go murder the rival gang member. They were arrested before the murder could be committed. Maxwell and Earp previously pled guilty to charges related to the planned murder, as well as drug trafficking charges. Earp was sentenced to 40 years. https://www.justice.gov/usao-ednc/pr/raleigh-eight-trey-crip-gangster-sentenced-40-years-prison-vicar-and-methamphetamine Maxwell’s sentencing is pending.
This investigation is part of an Organized Crime and Drug Enforcement Task Force Operation (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Raleigh Police Department led the investigation with assistance from the Federal Bureau of Investigation, Raleigh/Wake City-County Bureau of Identification and United States Marshals Service. Assistant U.S. Attorney Kelly L. Sandling prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-cr-00395-D-5.
RGV brothers sentenced for methRead the Press Release
McALLEN, Texas – Two brothers residing in La Villa have been ordered to federal prison following their convictions of possession with intent to distribute meth, announced U.S. Attorney Alamdar S. Hamdani.
Roberto Serna pleaded guilty Feb. 3, while his brother Artemio entered his plea Nov. 30, 2022.
Today, Chief U.S. District Judge Randy Crane ordered Roberto to serve 120 months in federal prison to be immediately followed by five years of supervised release.
Artemio was previously ordered to serve the same sentence.
On Sept. 26, 2022, the Sernas sold a kilogram of meth undercover authorities.
At the time of their plea, the brothers admitted to selling the drugs on two separate occasions.
The FBI conducted the investigation. Assistant U.S. Attorney Robert L. Guerra Jr. prosecuted the case.
Prison guard who smuggled contraband to prison inmate pleads guilty to federal drug chargeRead the Press Release
BRUNSWICK, GA: A former Georgia state prison guard awaits sentencing after pleading guilty to her role in a widespread drug trafficking conspiracy linked to a white supremacist street gang.
Desiree M. Briley, 26, of McRae-Helena, Ga., faces up to 20 years in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, Methamphetamine, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. Briley was a Georgia state corrections officer with the rank of sergeant when arrested as part of Operation Ghost Busted in January 2023.
“Desiree Briley played a key role in enabling members of the Ghost Face Gangsters to operate a massive drug trafficking operation inside and outside Georgia’s prison system,” said U.S. Attorney Steinberg. “Her actions compromised the security of the facility she was sworn to protect, and threatened the safety of every person in the community where this conspiracy distributed illegal drugs.”
Operation Ghost Busted, announced with the January unsealing of the indictment in USA v. Alvarez, et al., is an Organized Crime Drug Enforcement Task Forces investigation, led by the FBI Coastal Georgia Violent Gang Task Force, the Glynn County Police Department, the Brunswick Police Department, the Glynn County Sheriff’s Office, and the Camden County Sheriff's Office.
Over a more than two-year period, the investigation identified a sprawling drug trafficking network operating in south Georgia counties including Glynn, Pierce, Camden, Wayne, Treutlen, McIntosh, Toombs, Telfair, Dodge, and Ware. The conspiracy operated inside and outside state prison facilities with assistance from Briley, who worked with an inmate indicted as part of the conspiracy: James D. NeSmith, 25, who currently is serving a life sentence for murder at Telfair State Prison. Including Briley and NeSmith, 76 defendants were indicted on federal charges as part of Operation Ghost Busted.
As noted during her plea hearing before U.S. District Court Judge Lisa Godbey Wood, at the time of her arrest, Briley was attending training to become a canine handler and then would have been in a position to further allow contraband in prisons.
Sentencing for Briley will be scheduled before Judge Wood after completion of a pre-sentence investigation by U.S. Probation Services.
“Briley betrayed the trust placed in her by the Georgia state prison system through her illegal and potentially dangerous activity,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This extensive investigation proves that the FBI will not tolerate public corruption, especially by fellow law enforcement officials who choose their own personal gains over protecting the people they were sworn to protect.”
“This operation has dismantled a serious criminal enterprise which funneled guns and drugs into our communities,” said ATF Assistant Special Agent in Charge Beau Kolodka “ATF and its law enforcement partners acted quickly and judiciously on information developed during this long investigation. The safety of the public is at the core of ATF’s mission and we stand at the front line eradicating violent crime from our streets.”
“Illegal activity being carried out by prison staff will not be tolerated,” said Georgia Bureau of Investigation Director Michael Register. “This guard is being held accountable for her role in facilitating drug trafficking behind the wire. We are committed to working with our local, state, and federal partners to investigate drug trafficking and smuggling and bring these offenders to justice.”
“We maintain a zero-tolerance policy for individuals who choose to bring discredit to the Georgia Department of Corrections and pose a threat to the safety of the public and the operations of our facilities,” said Tyrone Oliver, Commissioner of the Georgia Department of Corrections. “We appreciate the support of our federal partners in ensuring that justice will be served, and we are proud of our agents who were diligent in working this case to help stop the introduction of dangerous contraband into one of our facilities.”
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Agencies involved in the investigation include the FBI Coastal Georgia Violent Gang Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the Georgia Bureau of Investigation; the Georgia Department of Corrections; the Georgia Department of Community Supervision; the Glynn County Police Department; the Brunswick Police Department; and sheriff’s offices from Glynn, Pierce, Camden, Wayne, Treutlen, McIntosh, Toombs, Telfair, Dodge, and Ware counties. The case is being prosecuted for the United States by Assistant U.S. Attorneys Jennifer J. Kirkland and Criminal Division Deputy Chief E. Greg Gilluly Jr.
Ponte Vedra Man Sentenced to Prison and Ordered to Pay More Than $1.9 Million in Taxes He Willfully EvadedRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Timothy J. Corrigan today sentenced Patrick Brian Hines to a year and a day in federal prison for the willful evasion of taxes due and owing. The court also ordered Hines to pay $1,927,077.90 in restitution to the Internal Revenue Service. Hines had pleaded on November 2, 2022.
According to court documents, from 2004 through 2011, Hines owned and operated a network of telecommunication entities that purchased the rights to specific 1-800 phone numbers and charged consumers’ telephone bills for directory assistance services. Hines owned and operated these entities in his own name. After several lawsuits against the entities and Hines, in April 2011, Hines dismantled most of his entities and the entities filed for bankruptcy. In October 2012, a new telecommunication company was established in Hines’s wife’s name. Hines operated the company established in his wife’s name for his personal benefit from 2012 through 2018, during which time the company generated more than $4 million in revenue. Rather than owning and operating the company in his own name, Hines operated it through nominees. This was done during the time the Federal Communications Commission issued a forfeiture order for the entities and Hines to pay $1.6 million. In addition, in 2016, the California Public Utilities Commission filed a complaint against Hines and his companies, which resulted in a finding that Hines was responsible for $9.8 million plus interest, which remains outstanding. Hines used multiple nominee owners for the company in an attempt to distance himself from it and to evade and defeat the payment of income taxes and other obligations.
From 2012 through 2018, Hines used a system of nominee entities and individuals to conceal his assets and income. Hines paid personal expenses from the company’s business accounts, and he diverted profits of the company into the bank accounts of other nominee entities he controlled and to individual bank accounts he controlled. From 2012 through 2018, Hines arranged for $2.5 million to be spent on personal expenses from these nominee accounts, to include $38,000 in personal training sessions, dues for two private clubs, $275,000 in mortgage payments for a multi-million-dollar residence, and tuition for his children’s private schooling.
Beginning as early as November 28, 2011, the IRS sent Hines collection notices of his unpaid taxes, yet Hines failed to pay. Despite advice from his accountant to pay his taxes, Hines claimed to be “broke” and living off of the proceeds from the sale of the house.
On June 29, 2016, Hines filed an IRS Form 433-A in which he falsely claimed to have no income, but was supported by his spouse who gave him $3,479 per month, even though he knew that he had received the personal benefit of at least $2 million from 2012 through 2018. Hines has accrued penalties and interest as a result of his delinquent taxes, resulting in total outstanding balance of $1,927,077.90.
“For over a decade, Mr. Hines lied to the Internal Revenue Service, cheated the tax system, and stole from honest American taxpayers,” said Brian Payne IRS-CI Special Agent in Charge. “Mr. Hines’s attempts to conceal assets and income to evade taxes were unsuccessful and a tough lesson that came with significant consequences.”
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Kelly S. Karase.
Pine Ridge Man Sentenced to Federal PrisonRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a Pine Ridge, South Dakota, man convicted of Brandishing a Firearm During the Commission of a Crime of Violence and Assault on a Federal Officer was sentenced on April 10, 2023, by U.S. District Judge Jeffrey L. Viken.
As to the charge of Brandishing a Firearm During the Commission of a Crime of Violence, Daniel Tobacco, age 29, was sentenced to seven years in federal prison, followed by five years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund. As to the Assault on a Federal Officer charge, Tobacco was sentenced to four years and nine months in federal prison to be served consecutively with the other sentence, followed by five years of supervised release, and ordered to pay another $100 special assessment.
Tobacco was indicted for the charges by a federal grand jury in September of 2021, and pleaded guilty in December of 2022. The conviction stems from Tobacco engaging in a standoff with tribal and federal law enforcement at a residence north of Pine Ridge on September 2, 2021. Tobacco fired a semiautomatic pistol several times during the standoff. Tobacco pointed the gun toward an approaching Tribal law enforcement officer and squeezed the trigger as he was tased by the officer.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Tobacco was immediately remanded to the custody of the U.S. Marshals Service.
Orono Resident Agrees to Pay over $228,000 to Settle Allegations of Fraudulently Obtaining Pandemic Relief FundsRead the Press Release
PORTLAND, Maine: U.S. Attorney Darcie N. McElwee today announced that Jacob Hennie of Orono has agreed to pay $228,338.30 to settle a civil fraud case alleging that he fraudulently applied for, received and obtained forgiveness for two Paycheck Protection Program (PPP) loans, and fraudulently applied for and received a COVID-19 Economic Injury and Disaster Loan (EIDL) Emergency Advance.
The United States filed a complaint against Hennie in the United States District Court for the District of Maine on April 14, 2023. The complaint alleged that in July 2020, Hennie misrepresented that he operated a business with nine employees to receive a $9,000 EIDL Emergency Advance when he did not operate any business. In February 2021, Hennie obtained a first-draw PPP loan in the amount of $18,625 based on alleged misrepresentations in the loan applications. He then obtained a second-draw PPP loan in the amount of $20,833 based on alleged misrepresentations related to fictitious business expenses. Hennie received forgiveness for both PPP loans through allegedly misrepresenting how the loan funds were used.
The complaint against Hennie was brought by the United States pursuant to the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). The FCA provides that any person who “knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval” or “knowingly makes, uses, or causes to be made or used, a false record or statement material to a false or fraudulent claim” is liable to the United States for three times the amount of damages which the United States sustains, plus a civil penalty for each FCA violation. For FCA violations assessed after January 30, 2023, the minimum penalty per violation is $13,508.
FIRREA provides that the Attorney General may recover civil penalties against persons who knowingly make a false statement for the purpose of influencing a decision by the Administrator of the SBA or to obtain a loan, money, or anything of value under certain SBA programs, including the PPP. For FIRREA violations assessed after January 30, 2023, the maximum penalty per violation is $2,372,677.
The complaint filed by the United States is a result of the District of Maine’s ongoing efforts to identify and investigate fraudulently obtained pandemic relief funds. Recent amendments to federal law have extended the statute of limitations for civil and criminal fraud enforcement actions concerning PPP and EIDL loans from six to ten years. The civil action is docketed United States v. Jacob Hennie, 23-cv-00171-JAW (D. Me.).
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Orlando Felon Sentenced to More Than 7 Years on Firearm Charges in Connection with ShootingRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger today sentenced Darrius Jaques Garrett (33, Orlando) to seven years and six months in federal prison for possessing a firearm and ammunition as a convicted felon. The court also ordered Garrett to forfeit a Glock pistol and ammunition, which were used in this case. Garrett had pleaded guilty on November 30, 2022.
According to court documents, Garrett was charged with knowingly possessing a Glock pistol and .22 caliber rounds of ammunition on May 27, 2022, in connection with a shooting. At approximately 4:00 p.m. that day, the Orange County Sheriff’s Office was dispatched to Americana Boulevard in Orlando where they found a man who had sustained gunshot wounds to the torso. That man was later treated and released from the hospital. Surveillance images from a nearby business captured the shooting.
Five days later, on June 1, 2022, Garrett was observed in the same area by deputies with the same Dodge Charger depicted on the video. Inside, deputies found a loaded Glock firearm that authorities allege was used in the shooting.
Garrett is a 5-time convicted felon and is therefore prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Courtney D. Richardson-Jones.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety – one that includes investigating and prosecuting crimes, along with prevention and re-entry efforts. In the Middle District of Florida, U.S. Attorney Roger B. Handberg coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Orange County Woman Sentenced to Nearly 22 Years in Prison for Her Role in Murder of Man Shot on Her Boat and Tossed OverboardRead the Press Release
SANTA ANA, California – A San Juan Capistrano woman has been sentenced to 262 months in federal prison for her role in the October 2019 murder of a man whose body was found floating in the Pacific Ocean with bullet and blunt force trauma wounds, the Justice Department announced today.
Sheila Marie Ritze, 42, was sentenced late Monday afternoon by United States District Judge David O. Carter, who at the hearing described Ritze’s conduct as “horrific and horrendous” and noted its “callousness.”
At the conclusion of a 12-day trial in April 2022, a federal jury found Ritze guilty of one count of second-degree murder within in the special maritime and territorial jurisdiction of the United States, and one count of making false statements to federal investigators.
On October 15, 2019, Ritze went out on her boat – in what was described to the victim as a late-night lobster-fishing trip – with Hoang Xuan Le, 41, a.k.a. “Wayne,” and “Wangsta,” of Fountain Valley, and the victim, who owed Le a debt. Ritze’s boat was docked at Dana Point Harbor.
Around midnight, Ritze drove her boat out into the Pacific Ocean with Le and the victim on board. Le shot the victim on the boat, the victim went overboard, and Ritze and Le left the victim to die in the ocean, where he drowned. Le and Ritze then returned to Dana Point Harbor.
The victim’s body was recovered from the Pacific Ocean several miles northwest of Oceanside on October 16, 2019. The San Diego County Medical Examiner’s Office determined that he was a homicide victim who drowned after being shot and suffering blunt force trauma.
During a December 2019 interview with federal investigators, Ritze told a series of lies, including when she falsely said she had never met the victim prior to the fatal boat trip. Ritze and the victim had been in Las Vegas together 11 days prior to the murder.
“Ritze’s crime has left a grieving mother, grieving widow, grieving brothers, a grieving sister, and two fatherless small children,” prosecutors argued in a sentencing memorandum. “Ritze continued on with her life after murdering Dao as though nothing had happened, continuing to party with Le…and assisting Le with tracking [the victim’s] grieving widow with GPS trackers.”
At the conclusion of a 17-day trial in December 2021, a federal jury found Le guilty of first-degree murder within the special maritime and territorial jurisdiction of the United States, conspiracy to commit murder, and using a firearm in furtherance of a crime of violence. In February 2022, Le pleaded guilty to eight narcotics-related felonies, including distribution of cocaine and methamphetamine.
Le faces a mandatory sentence of life in federal prison at his July 17 sentencing hearing.
The Coast Guard Investigative Service and the FBI investigated this matter.
Assistant United States Attorneys Greg Scally and Gregory W. Staples of the Santa Ana Branch Office are prosecuting this case.
Orange County Convicted Felon Pleads Guilty to Kidnapping and Aggravated Assault on a Federal Law Enforcement OfficerRead the Press Release
MIAMI – On April 14, Marques Deon Jones, 40, from Orange County, pled guilty to kidnapping, aggravated assault on a federal law enforcement officer, and two felon in possession of a firearm charges, stemming from a two-day crime spree in Port St. Lucie and Fort Pierce, Florida.
On August 14, 2022, Jones pistol-whipped an employee of a Port St. Lucie group home located near SE Walton Road, before forcing the employee to leave with him in the employee’s vehicle. While inside the vehicle, Jones continued to beat the employee, threatening the employee that if he saw police, he would kill the employee and force police to kill him in a shoot-out. A group home supervisor, who witnessed Jones’ threats, the physical assault and the ensuing abduction, notified Port St. Lucie Police Department, who was able to identify Jones and issued a warrant for Jones’ arrest.
The following day, on August 15, 2022, a U.S. Marshals Service warrants unit located Jones, standing outside of a home in Fort Pierce. As the task force officers approached, they observed Jones retrieve a firearm from a parked car, turn, and attempt to flee. Jones later admitted to police that he retrieved the firearm because he wanted officers to shoot and kill him. Jones was arrested without injury. According to court documents, Jones was previously been convicted, in Orange County, of Domestic Battery and Aggravated Battery Causing Great Bodily Harm, both felonies.
Jones is scheduled for sentencing on June 29, before U.S. District Judge Aileen M. Cannon and faces a possible maximum sentence of life in prison.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Special Agent in Charge Christopher A. Robinson of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Division, and U.S. Marshal Gadyaces S. Serralta of the U.S. Marshals Service (USMS), made the announcement.
The case was investigated by the U.S. Marshals Service, ATF Fort Pierce, with assistance from the St. Lucie County Sheriff’s Office, Port St. Lucie Police Department and the Fort Pierce Police Department. The case is being prosecuted by Assistant U.S. Attorney Breezye Telfair.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-14069.
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OFAC-Designated Hizballah Financier and Eight Associates Charged with Multiple Crimes Arising Out of Scheme to Evade Terrorism-Related SanctionsRead the Press Release
A nine-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Nazem Ahmad and eight co-defendants with conspiring to defraud the United States and foreign governments, evade U.S. sanctions and customs laws, and conduct money laundering transactions by securing goods and services for the benefit of Ahmad, a Lebanese resident and dual Belgian-Lebanese citizen who was sanctioned by the United States for being a financier for Hizballah, a foreign terrorist organization. Despite being sanctioned and prohibited from engaging in transactions with U.S. persons since December 2019, Ahmad and his coconspirators relied on a complex web of business entities to obtain valuable artwork from U.S. artists and art galleries and to secure U.S.-based diamond-grading services all while hiding Ahmad’s involvement in and benefit from these activities. Approximately $160 million worth of artwork and diamond-grading services were transacted through the U.S. financial system. One defendant was arrested today in the United Kingdom at the request of the United States, and the eight remaining defendants, including Ahmad, are believed to reside outside the United States and remain at large. The government obtained seizure warrants for millions of dollars in assets that include a diamond ring, cash in an account, and artwork.
Breon Peace, United States Attorney for the Eastern District of New York; Matthew G. Olsen, Assistant Attorney General for the Justice Department’s National Security Division; Tae D. Johnson, U.S. Immigration and Customs Enforcement Deputy Director and Senior Official Performing the Duties of the Director, Department of Homeland Security; and Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement (BIS), announced the charges.
“The United States implemented terrorism sanctions so that terrorist organizations like Hizballah would be cut off from the goods and services needed to fund violent acts of terrorism. As alleged, Nazem Ahmad and his co-defendants benefitted from the multi-million-dollar trade in diamonds and artwork even after Ahmad was sanctioned for his involvement with a terrorist organization,” stated United States Attorney Peace. “Our Office will continue to prosecute individuals who evade these sanctions and thereby offer a lifeline to designated foreign terrorist organizations.”
“Despite being sanctioned for his dealings with a terrorist organization, Mr. Ahmad remained active in the US-based art and diamond trade while concealing his illicit involvement,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today we hold Ahmad and his associates accountable and demonstrate that those who would flout our sanctions cannot hide from US justice.”
“This HSI investigation speaks to the unwavering commitment of the U.S. and U.K. governments to prevent art and diamond markets from becoming a haven of illicit financial activity,” said U.S. Immigration and Customs Enforcement Deputy Director and Senior Official Performing the Duties of the Director Tae D. Johnson. “I commend HSI and our investigative partners for their dedication in seeing this investigation through – over many years – to substantial actions. We will utilize every tool at our disposal to dismantle these illicit networks.”
“The funding of foreign terrorist organizations like Hizballah is illegal, regardless of whether that funding comes in the form of cash or the export of high-priced diamonds and art,” said Assistant Secretary of Commerce for Export Enforcement Matthew S. Axelrod. “We are proud to have partnered with DOJ and HSI to bring this significant enforcement action.”
As alleged, Nazem Ahmad was involved in real estate development, the international trade of diamonds, and the international acquisition and sale of artwork, and operated these enterprises through a complex web of business entities. Ahmad was also an associate of high-level members of Hizballah, a Lebanon-based terrorist group that was designated by the United States as a Foreign Terrorist Organization and Specially Designated Global Terrorist. On December 13, 2019, pursuant to the International Emergency Economic Powers Act (IEEPA) and the Global Terrorism Sanctions Regulations, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) designated Ahmad and 11 businesses associated with Ahmad as Specially Designated Nationals (SDN) for Ahmad’s material support of, and provision of goods and services to, Hizballah. At the time of the designation, OFAC explained that Ahmad was “considered a major Hizballah financial donor who laundered money through his companies for Hizballah and provided funds personally to Hizballah Secretary-General Hassan Nasrallah” and was also “involved in ‘blood diamond’ smuggling” who “stores some of his personal funds in high-value art.”
Despite being sanctioned and prohibited from engaging in most transactions with U.S. persons, Ahmad continued to secure valuable goods and services from U.S. persons notwithstanding that such transactions constituted violations of U.S. sanctions and other federal laws. Specifically, Ahmad, together with his son Firas Michael Ahmad, daughter Hind Nazem Ahmad and brother-in-law Rami Yaacoub Baker, as well as associates Mohamad Hijazi, Mohamad Hassan Ismail, Sarya Nemat Martin, Ali Said Mossalem Sundar Nagarajan, and others, used numerous corporate entities and individuals to disguise Ahmad’s control and beneficial interest in the companies and in financial transactions, and facilitate the acquisition of multiple pieces of valuable artwork and diamond-grading services for millions of dollars’ worth of diamonds from U.S. persons.
Evasion of Terrorism Sanctions in the Diamond Trade
The defendants conspired to violate and evade U.S. sanctions by obtaining grading determinations and other services from a U.S.-based diamond grading company (Diamond Grading Company-1). The services of Diamond Grading Company-1, which were secured through multiple entities operating for Ahmad’s benefit, were valuable to the defendants because the services provided can affect the sales price of those diamonds and thus increase the amount that Ahmad can receive for the sale of his property. Collectively, the defendants and other conspirators sent approximately 482 diamond submissions to Diamond Grading Company-1 facilities after Ahmad was designated by OFAC in December 2019. The total weight of the diamonds submitted and graded post-sanctions was approximately 1,546 carats. For example, on or about March 18, 2021, an entity operating for the benefit of Ahmad shipped an approximately 45-carat diamond—valued at $80 million—to a facility belonging to Diamond Grading Company-1 in New York. Following the receipt of services from Diamond Grading Company-1, the 45-carat diamond was exported from the United States on April 26, 2021, back to the same entity.
Evasion of Terrorism Sanctions in the Art Market
The defendants also conspired to violate and evade U.S. sanctions by acquiring contemporary art from the United States, from U.S. persons outside the United States, or through U.S.-based financial transactions, on behalf of and for the benefit of Ahmad, despite his status as an OFAC-sanctioned SDN. Artwork allegedly obtained from the United States after Ahmad was sanctioned in December 2019 was valued at more than $450,000, while an additional $780,000 in artwork from U.S. persons located outside the United States was also acquired in violation of terrorism sanctions.
For example, in or about and between April 2021 and July 2021, Ahmad and several other defendants engaged in multiple transactions with a Chicago-based art gallery (Chicago Art Gallery-1), on behalf of and for the benefit of Ahmad. Ahmad allegedly commissioned multiple pieces of artwork, at least one of which can be seen in a picture with Ahmad, as depicted below:
Chicago Art Gallery-1 Painting Hanging (on Right) Before Ahmad Sitting at a Desk
Chicago Art Gallery-1 Paintings Commissioned by Ahmad
Between approximately February 2021 and November 2021, Ahmad and two other defendants engaged in transactions with a New York-based artist (New York Artist-1), on behalf of and for the benefit of Ahmad. After Ahmad directly negotiated the sale of artwork from New York Artist-1—pointedly directing the artist not to mention Ahmad’s name to anyone—six paintings valued at $199,800 were exported from the United States via John F. Kennedy International Airport to a Lebanese business entity used by Ahmad. At least one piece of artwork acquired from New York Artist-1 was hung in Ahmad’s residence in Lebanon as shown in the images below, which show Ahmad and co-defendant Firas Ahmad (two other uncharged individuals are obscured in the image below) in front of the artwork:
Between in or about May 2021 and June 2021, Nazem Ahmad and co-defendant Ali Said Mossalem allegedly paid for artwork acquired from a Nigerian-based artist through a wire transfer that was facilitated by a U.S. financial institution located in New York, New York. An image of one of the pieces of artwork acquired by Ahmad through the services of U.S. financial institutions is depicted below:
As part of this criminal scheme, the defendants also caused the undervaluation of goods in U.S. customs records in violation of federal law, and took other steps to obscure the value of the goods they received in order to avoid the payment of foreign taxes when the goods were imported into the relevant country.
The defendants and other conspirators engaged in this scheme to benefit Ahmad and themselves while at the same time evading terrorism-related sanctions, to avoid the payment of taxes to foreign governments on the import of valuable goods into foreign countries, and to make it more difficult for the United States government to carry out its lawful functions. Entities controlled by or operating for the benefit of Ahmad engaged in more than $400 million worth of financial transactions between approximately January 2020 and August 2022; the conspirators were responsible for importing more than $207 million of goods to the United States and exporting more than $234 million of goods from the United States between approximately December 2019 and December 2022, consisting primarily of diamonds and artwork; and approximately $160 million worth of transactions involved the U.S. financial system. At least $6 million of the proceeds of the criminal scheme was transferred to Lebanon for use by Ahmad and his associates.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Craig R. Heeren and Nicholas J. Moscow, and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section, are in charge of the prosecution with assistance from Paralegal Specialists Benjamin Richmond and Magdalena St. Surin. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is in charge of asset forfeiture. The Department of Justice Office of International Affairs is assisting with extradition and international legal assistance in this case.
This investigation was a collaboration between HSI Cedar Rapids, New York, Cultural Property Art and Antiquities Program and Trade Transparency Unit which was made possible through support from HSI Chicago, Dallas, Houston, Kansas City, Los Angeles, Raleigh, St. Paul, and Santa Rosa. HSI Attaché Offices in Africa, Asia, Europe, and the Middle East played critical roles in the investigation. U.S. Customs and Border Protection and U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office were also key investigative partners.
The Department of Justice’s Office of International Affairs provided critical assistance in this case. The Department also appreciates the significant cooperation and assistance provided by the United Kingdom authorities.
The Defendants:
NAZEM AHMAD (also known as “N.A.,” “Naz,” “Naz Ahmad,” “Nazem Ali Ahmad,” “Nazem Saeed Ahmad,” “Nazim Sa’id Ahmad,” “Nizam Saed Ahmad,” “Nazem Said Ahmed,” “Nazem Saied Ahmed,” “Nazeem Said Ahmad” and “Kariumu Muhamadi”)
Lebanon and BelgiumFIRAS MICHAEL AHMAD (also known as “Firas Ahmed” and “Firas Nazem Ahmad”)
Lebanon and BelgiumHIND NAZEM AHMAD (also known as “Dida Ahmad,” “Hind El Ris,” “Hind El-Riz” and “Julie”
BelgiumRAMI YAACOUB BAKER (also known as “Ramy Kamel Yaqoub Baker”)
Lebanon and BelgiumMOHAMAD HASSAN ISMAIL
LebanonMOHAMAD HIJAZI
LebanonSARYA NEMAT MARTIN (also known as “Sarya N. Marie”)
United StatesALI SAID MOSSALEM
LebanonSUNDAR NAGARAJAN (also known as “Nagarajan Sundar Poongulam Kasiviswanathan Naga” and “Sundar Poongulam K. Nagarajan Nagarajan”)
IndiaE.D.N.Y. Docket No. 23-CR-139 (DG)
OFAC-Designated Hezbollah Financier and Eight Associates Charged with Multiple Crimes Arising Out of Scheme to Evade Terrorism-Related SanctionsRead the Press Release
A nine-count indictment was unsealed today in the Eastern District of New York charging Nazem Ahmad and eight co-defendants with conspiring to defraud the United States and foreign governments, evade U.S. sanctions and customs laws and conduct money laundering transactions by securing goods and services for the benefit of Ahmad, a Lebanese resident and dual Belgian-Lebanese citizen who was sanctioned by the United States for being a financier for Hezbollah, a foreign terrorist organization.
According to court documents, despite being sanctioned and prohibited from engaging in transactions with U.S. persons since December 2019, Ahmad and his co-conspirators relied on a complex web of business entities to obtain valuable artwork from U.S. artists and art galleries and to secure U.S.-based diamond-grading services all while hiding Ahmad’s involvement in and benefit from these activities. Approximately $160 million worth of artwork and diamond-grading services were transacted through the U.S. financial system. One defendant was arrested today in the United Kingdom at the request of the United States, and the eight remaining defendants, including Ahmad, are believed to reside outside the United States and remain at large. The government obtained seizure warrants for millions of dollars in assets that include a diamond ring, cash in an account and artwork.
“Despite being sanctioned for his dealings with a terrorist organization, Mr. Ahmad remained active in the U.S.-based art and diamond trade while concealing his illicit involvement,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today, we hold Ahmad and his associates accountable and demonstrate that those who would flout our sanctions cannot hide from U.S. justice.”
“The United States implemented terrorism sanctions so that terrorist organizations like Hezbollah would be cut off from the goods and services needed to fund violent acts of terrorism,” said U.S. Attorney Breon Peace for the Eastern District of New York. “As alleged, Nazem Ahmad and his co-defendants benefitted from the multimillion-dollar trade in diamonds and artwork even after Ahmad was sanctioned for his involvement with a terrorist organization. Our office will continue to prosecute individuals who evade these sanctions and thereby offer a lifeline to designated foreign terrorist organizations.”
“Let this action against Nazem Ahmad’s international criminal organization serve as a reminder that the U.S. government and its allies will tirelessly prosecute those who are sanctioned for illicitly financing terrorist activities and wantonly violate those sanctions in order to continue accruing substantial wealth that can be used to continue financing Hezbollah,” said Deputy Secretary John K. Tien of Department of Homeland Security. “We are grateful to our partners across the federal government and our partnership with the United Kingdom that demonstrates international commitment and cooperation to preventing future atrocities by dismantling illicit financial networks supporting terrorism.”
“The funding of foreign terrorist organizations like Hezbollah is illegal, regardless of whether that funding comes in the form of cash or the export of high-priced diamonds and art,” said Assistant Secretary Export Enforcement Matthew S. Axelrod of the Department of Commerce. “We are proud to have partnered with the Justice Department and HSI to bring this significant enforcement action.”
As alleged, Ahmad was involved in real estate development, the international trade of diamonds, and the international acquisition and sale of artwork, and operated these enterprises through a complex web of business entities. Ahmad was also an associate of high-level members of Hezbollah, a Lebanon-based terrorist group that was designated by the United States as a Foreign Terrorist Organization and Specially Designated Global Terrorist. On Dec. 13, 2019, pursuant to the International Emergency Economic Powers Act (IEEPA) and the Global Terrorism Sanctions Regulations, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) designated Ahmad and 11 businesses associated with Ahmad as Specially Designated Nationals (SDNs) for Ahmad’s material support of, and provision of goods and services to, Hezbollah. At the time of the designation, OFAC explained that Ahmad was “considered a major Hezbollah financial donor who laundered money through his companies for Hezbollah and provided funds personally to Hezbollah Secretary-General Hassan Nasrallah” and was also “involved in ‘blood diamond’ smuggling” who “stores some of his personal funds in high-value art.”
Despite being sanctioned and prohibited from engaging in most transactions with U.S. persons, Ahmad continued to secure valuable goods and services from U.S. persons notwithstanding that such transactions constituted violations of U.S. sanctions and other federal laws. Specifically, Ahmad, together with his son Firas Michael Ahmad, daughter Hind Nazem Ahmad and brother-in-law Rami Yaacoub Baker, as well as associates Mohamad Hijazi, Mohamad Hassan Ismail, Sarya Nemat Martin, Ali Said Mossalem Sundar Nagarajan and others, used numerous corporate entities and individuals to disguise Ahmad’s control and beneficial interest in the companies and in financial transactions, and facilitate the acquisition of multiple pieces of valuable artwork and diamond-grading services for millions of dollars’ worth of diamonds from U.S. persons.
Evasion of Terrorism Sanctions in the Diamond Trade
As alleged, the defendants conspired to violate and evade U.S. sanctions by obtaining grading determinations and other services from a U.S.-based diamond grading company (Diamond Grading Company-1). The services of Diamond Grading Company-1, which were secured through multiple entities operating for Ahmad’s benefit, were valuable to the defendants because the services provided can affect the sales price of those diamonds and thus increase the amount that Ahmad can receive for the sale of his property. Collectively, the defendants and other conspirators sent approximately 482 diamond submissions to Diamond Grading Company-1 facilities after Ahmad was designated by OFAC in December 2019. The total weight of the diamonds submitted and graded post-sanctions was approximately 1,546 carats. For example, on or about March 18, 2021, an entity operating for the benefit of Ahmad shipped an approximately 45-carat diamond – valued at $80 million – to a facility belonging to Diamond Grading Company-1 in New York. Following the receipt of services from Diamond Grading Company-1, the 45-carat diamond was exported from the United States on April 26, 2021, back to the same entity.
Evasion of Terrorism Sanctions in the Art Market
The defendants also conspired to violate and evade U.S. sanctions by acquiring contemporary art from the United States, from U.S. persons outside the United States, or through U.S.-based financial transactions, on behalf of and for the benefit of Ahmad, despite his status as an OFAC-sanctioned SDN. Artwork allegedly obtained from the United States after Ahmad was sanctioned in December 2019 was valued at more than $450,000, while an additional $780,000 in artwork from U.S. persons located outside the United States was also acquired in violation of terrorism sanctions.
For example, in or about and between April 2021 and July 2021, Ahmad and several other defendants engaged in multiple transactions with a Chicago-based art gallery (Chicago Art Gallery-1), on behalf of and for the benefit of Ahmad. Ahmad allegedly commissioned multiple pieces of artwork, at least one of which can be seen in a picture with Ahmad, as depicted below:
Between approximately February 2021 and November 2021, Ahmad and two other defendants engaged in transactions with a New York-based artist (New York Artist-1), on behalf of and for the benefit of Ahmad. After Ahmad directly negotiated the sale of artwork from New York Artist-1 – pointedly directing the artist not to mention Ahmad’s name to anyone – six paintings valued at $199,800 were exported from the United States via John F. Kennedy International Airport to a Lebanese business entity used by Ahmad. At least one piece of artwork acquired from New York Artist-1 was hung in Ahmad’s residence in Lebanon.
As part of this criminal scheme, the defendants also caused the undervaluation of goods in U.S. customs records in violation of federal law and took other steps to obscure the value of the goods they received in order to avoid the payment of foreign taxes when the goods were imported into the relevant country.
The defendants and other conspirators engaged in this scheme to benefit Ahmad and themselves while at the same time evading terrorism-related sanctions, to avoid the payment of taxes to foreign governments on the import of valuable goods into foreign countries and to make it more difficult for the United States government to carry out its lawful functions. Entities controlled by or operating for the benefit of Ahmad engaged in more than $400 million worth of financial transactions between approximately January 2020 and August 2022; the conspirators were responsible for importing more than $207 million of goods to the United States and exporting more than $234 million of goods from the United States between approximately December 2019 and December 2022, consisting primarily of diamonds and artwork; and approximately $160 million worth of transactions involved the U.S. financial system. At least $6 million of the proceeds of the criminal scheme was transferred to Lebanon for use by Ahmad and his associates.
Assistant U.S. Attorneys Craig R. Heeren and Nicholas J. Moscow for the Eastern District of New York and Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section are in charge of the prosecution, with assistance from Paralegal Specialists Benjamin Richmond and Magdalena St. Surin. Assistant U.S. Attorney Claire Kedeshian of the is handling asset forfeiture. The Department of Justice Office of International Affairs is assisting with extradition and international legal assistance in this case.
This investigation was a collaboration between HSI Cedar Rapids, New York, HSI New York Counter Proliferation Investigations and Trade Transparency Unit which was made possible through support from HSI Chicago, Dallas, Houston, Kansas City, Los Angeles, Raleigh, St. Paul, and Santa Rosa. HSI Attaché offices in Africa, Asia, Europe, and the Middle East played critical roles in the investigation. U.S. Customs and Border Protection was also a key investigative partner.
The Department also appreciates the significant cooperation and assistance provided by the United Kingdom authorities.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Norristown Man Pleads Guilty to Possessing with the Intent to Distribute Heroin, Fentanyl, and MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A former resident of Norristown, PA pleaded guilty in federal court to a charge of violating federal narcotics laws, Acting United States Attorney Troy Rivetti announced today.
Keith Pope, age 34, pleaded guilty to Count One of the Indictment, before Senior United States District Judge Kim R. Gibson.
In connection with the guilty plea, on or about October 7, 2020, Pope was found to possess with the intent to distribute 40 grams or more of a mixture and substance containing a detectable amount of fentanyl and heroin, and a mixture and substance containing a detectable amount of methamphetamine.
Judge Gibson scheduled sentencing for August 23, 2023. The law provides for a minimum sentence of 5 years in prison and a maximum sentence of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Cambria County Drug Task Force, and FBI Safe Streets Task Force conducted the investigation that led to the successful prosecution of Pope.
Nicholas County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Shawn K. Bever, 45, of Craigsville, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on November 17, 2021, law enforcement officers investigating the illegal shooting of a bear encountered Bever outside his Craigsville residence. Officers saw an ATI .22-caliber pistol in Bever’s side-by-side all-terrain vehicle, parked on the property. Winchester .22-caliber ammunition was recovered from Bever’s pants pocket. Bever admitted to possessing the firearm and ammunition.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Bever was prohibited from possessing a firearm or ammunition because of his prior felony conviction for delivery of a controlled substance in Nicholas County Circuit Court on November 14, 2011.
Bever is scheduled to be sentenced on July 11, 2023, and faces a faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia Division of Natural Resources Police and the assistance provided by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorneys Nowles Heinrich and Lesley C. Shamblin are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-164.
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New Orleans Man Sentenced to Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS – JARON MCCREE, a resident of New Orleans, was sentenced on April 5, 2023, by U.S. District Court Ivan L.R. Lemelle to seventy (70) months incarceration, three (3) years of supervised release and a mandatory $100 special assessment fee after previously pleading guilty to possessing a firearm while being a convicted felon, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to the court records, on February 15, 2022, New Orleans Police Department detectives had an outstanding arrest warrant for MCCREE and saw him near a store in the French Quarter. One of the detectives approached MCCREE who then fled on foot.
The detective chased MCCREE and observed as he discarded a firearm in a bush. MCCREE was then arrested. Police later recovered a Glock model 17, nine-millimeter firearm, with an extended magazine, capable of holding thirty-one (31) rounds of ammunition, from the bush. Police also recovered twenty-eight (28) live rounds of ammunition.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Attorney Evans praised the work of Federal Bureau of Investigation and the New Orleans Police Department in this matter. The case was prosecuted by Assistant United States Attorney Mike Trummel of the Violent Crime Unit.
New Orleans Man Pleads Guilty to Violations of the Federal Gun Control and Controlled Substances ActsRead the Press Release
NEW ORLEANS, LOUISIANA – On April 11, 2023, BURNEAL ELLIOTT, age 21, of New Orleans, pleaded guilty to a four-count indictment for possession of a machinegun, possession of a firearm by a convicted felon, possession of a firearm in furtherance of a drug trafficking crime, and possession with intent to distribute cocaine, announced U.S. Attorney Duane A. Evans.
As to Counts 1 and 2, ELLIOTT faces a maximum sentence of 10 years of imprisonment, a fine of up to $250,000, and up to 3 years of supervised release. As to Count 3, ELLIOTT faces a maximum term of imprisonment of twenty (20) years, a fine not to exceed $1,000,0000, and at least three (3) years of supervised release following any term of imprisonment. As to Count 4, ELLIOTT faces a minimum term of imprisonment of five (5) years, a maximum term of imprisonment of life, all to be run consecutive to any other term of imprisonment, a fine of up to $250,000, and up to five (5) years of supervised release following any term of imprisonment. As to each count , ELLIOTT also faces payment of a $100 mandatory special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Mike Trummel of the Violent Crime Unit handled the prosecution.
New Castle Man Pleads Guilty to Illegally Possessing Drugs and a FirearmRead the Press Release
PITTSBURGH– Ricardo Reeves pled guilty to violating federal narcotics trafficking and firearm laws, Acting United States Attorney Troy Rivetti announced today.
Reeves, age 44 of New Castle, Pennsylvania, pled guilty before United States District Judge Arthur J. Schwab. Judge Schwab scheduled sentencing to occur on Aug. 16, 2023, at 9:30 a.m. Reeves will be sentenced for (1) possessing with intent to distribute 40 grams or more of a mixture containing fentanyl and heroin, as well as quantities of cocaine and cocaine base, and for (2) possessing a firearm in furtherance of a drug trafficking crime, all on Dec. 14, 2020.
Assistant United States Attorney Craig W. Haller is prosecuting this case on behalf of the United States.
The Lawrence County Drug Task Force, the Pennsylvania State Police, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the convictions in this case.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
More than 100 dogs forfeited in three separate federal civil actions involving fighting operationsRead the Press Release
SAVANNAH, GA: Recent civil actions in federal court have rescued more than 100 dogs from animal fighting operations in multiple locations in the Southern District of Georgia.
The U.S. Attorney’s Office for the Southern District of Georgia filed three civil forfeiture complaints between September and December 2022 seeking possession of 110 dogs allegedly involved in illegal dog fighting ventures, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. The U.S. Marshals Service (USMS) worked with local law enforcement and the U.S. Department of Agriculture Office of Inspector General (USDA-OIG) to seize the dogs, resulting in a final order of default in each of the complaints.
“Dog fighting is unacceptable and has no place in this District,” said U.S. Attorney Steinberg. “In addition, animal fighting ventures often entail other forms of illegal activity; this office will continue to work with its law enforcement partners at all levels to investigate and prosecute those who seek to profit off the abuse of helpless animals.”
The complaints include:
Civil Action No.: 5:22-CV-056
In March 2021, the USMS seized 23 dogs from the Ware County Animal Shelter after local animal control officers removed them from 3310 North Street in Waycross, Ga. The dogs were suspected of being involved in dog fighting activities.
Local animal control officers observed that the dogs’ conditions were inconsistent with those of pets, with housing and equipment indicative of a facility for fight training. After USMS took custody of the dogs, an evaluation by a veterinary contractor showed scarring on their faces and bodies, bite marks, and pressure sores, and some tested positive for hookworm. The 23 dogs were forfeited via court order on March 6, 2023.
Civil Action No.: 2:22-CV-00115
In June 2021, USMS seized 13 dogs from the Long County Animal Shelter after local law enforcement officers removed them from 362 Narcy Stafford Road in Glennville, Ga. These dogs were suspected of being involved in dog fighting activities.
Local law enforcement officers observed the dogs were kept in housing conditions consistent with an animal-fighting operation, including access to veterinary medicines and training equipment. An evaluation confirmed the condition of the animals was consistent with dog fighting, with fractured teeth, scarring and torn ears. Many of the dogs also were diagnosed with heartworm, hookworm, and/or giardia. These 13 dogs were forfeited via court order on Jan. 23, 2023.
Civil Action No.: 3:22-CV-177
In May 2022, USMS seized 74 dogs that were suspected of being involved in dog fighting activities, with 47 of the dogs seized from 138 Tucker School Road in Wrightsville, Ga., and 27 of the dogs seized from 236 James Grove Church Road in Wrightsville, Ga.
Federal agents observed that the dogs were housed in a manner consistent with fighting dogs, with training equipment, veterinary medicines, and pedigrees on site. The dogs had missing teeth and extensive scarring. These 74 dogs were forfeited via court order on April 6, 2023.
After taking the 110 dogs into custody, the USMS contracted with various veterinary service providers for care and rehabilitation of the dogs in preparation for sending the adoptable dogs to local animal shelters for adoption. Where relevant, the U.S. Attorney’s Office may pursue criminal action related to the seizures.
“The United States Department of Agriculture, Office of Inspector General, Investigations, actively investigates allegations of animal abuse,” said Acting Special Agent in Charge Salina Walker for USDA-OIG. “This agency has made animal fighting a high priority in order to demonstrate that these blatant acts of cruelty to animals will not be tolerated. We would like to acknowledge the agents and supporting law enforcement agencies for their relentless efforts in pursing individuals engaged in these activities. We would also like to thank the United States Attorney’s Office for aggressively prosecuting perpetrators of animal fighting.”
Under the federal Animal Welfare Act, it is a felony to fight dogs or to possess, train, sell, buy, deliver, receive, or transport them for that purpose, and violation of the law carries a statutory penalty of up to five years in prison. The statute further authorizes the seizure and forfeiture of animals involved in dog fighting and empowers the government to recover the costs for care of the animals from the dogs’ owners.
The cases were investigated by the U.S. Department of Agriculture Office of Inspector General and Special Agent Doug Bridges, with assistance from the U.S. Marshals Service and local law enforcement agencies. Assistant U.S. Attorney Shannon Heath Statkus, U.S. Department of Justice Environmental and Natural Resources Division Senior Trial Attorney Mary Hollingsworth and Attorney Lucy Chiu pursued the forfeiture of the dogs on behalf of the United States, with assistance from Southern District of Georgia Special Assistant U.S. Attorney Jessica K. Rock, Animal Crimes Prosecutor for the Prosecuting Attorneys Council of Georgia.
Media Advisory: United Against Hate Event to be Held in Cedar RapidsRead the Press Release
CEDAR RAPIDS, IA – The United States Attorney’s Office for the Northern District of Iowa is joining with the FBI, the Cedar Rapids Civil Rights Commission, the Linn County Attorney’s Office and others to host a forum designed to identify and address key issues related to hate crime reporting, investigation, prosecution and prevention. The forum is designed to educate the public on how to respond to hate crimes or hate incidents, including who to contact should a member of the public be the victim of a hate crime or incident.
The forum is part of the Department of Justice’s United Against Hate initiative. United Against Hate is a nationwide Department of Justice initiative to combat unlawful acts of hate. This initiative will connect federal, state and local law enforcement with communities in order to build trust and encourage people to report hate crimes and incidents.
Event Details
When: April 25, 2023
Where: Cedar Rapids Downtown Public Library – Beems Auditorium B
Time: 6:00 P.M.
A press release will be provided and interview opportunities will be available.
Follow us on Twitter @USAO_NDIA.
Manchester Man Pleads Guilty to Stealing More Than $165,500 in a Series of RobberiesRead the Press Release
CONCORD – A Manchester man pleaded guilty in federal court to a bank robbery and Hobbs Act robberies in connection with four gas stations in New Hampshire, U.S. Attorney Jane E. Young announces.
Hector Rivera Ayala, 34, pleaded guilty to four counts of Hobbs Act robbery and one count of bank robbery. U.S. District Court Judge Elliott scheduled sentencing for August 1, 2023. Rivera Ayala was charged on May 14, 2021.
In December 2019, Rivera Ayala robbed four gas stations and one bank in Manchester, including Rapid Refill on Second Street; Brother’s Express Gas Station on Union Street; Shell Gas Station on Eddy Road; Shell Gas Station on Hanover Street; and the Bank of New England on Elm Street. Each robbery was captured on video surveillance. For each robbery, the defendant entered the gas station and bank with his face partially obscured and carrying what appeared to be a firearm. Investigators recovered a shawl and a BB gun from the crime scene of one gas station. The defendant’s DNA was found on the shawl. In total, the defendant stole more than $5,500 from the gas stations and more than $160,000 from the bank.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 and restitution. 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.
The Federal Bureau of Investigation and the Manchester Police Department led the investigation. Assistant U.S. Attorney Matthew T. Hunter is prosecuting the case.
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Man Convicted of Child Abuse Resulting in Death and Voluntary ManslaughterRead the Press Release
A federal jury convicted an Oklahoma man on April 10 for the death of his daughter in Indian Country.
According to court documents and evidence presented at trial, Devin Warren Sizemore, 28, of McAlester, drowned his 21-month-old daughter. Sizemore was estranged from the child’s mother when he took the child for a visit. When he did not return the child and did not return to his residence, law enforcement was notified. Officers located Sizemore at a barn near a pond, where they confronted him and realized the child was face down in the pond. Sizemore admitted he “baptized” the victim and held her under water for approximately 30 seconds.
The Department of Justice’s Criminal Division and U.S. Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant and victim in this case are members of a federally recognized Indian tribe and the crimes occurred in Pittsburg County, within the boundaries of the Choctaw Nation Reservation and within the Eastern District of Oklahoma.
Sizemore was convicted of child abuse resulting in death and voluntary manslaughter and will be sentenced at a later date. Sizemore faces a maximum penalty of life in prison for the child abuse resulting in death charge and 15 years in prison for the voluntary manslaughter charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Christopher J. Wilson for the Eastern District of Oklahoma, and Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office made the announcement.
The FBI, Oklahoma Bureau of Investigation, McAlester Police Department, Krebs Police Department, and Pittsburg County Sheriff’s Office investigated the case.
Trial Attorneys Lisa K. Man and Gerald A. A. Collins of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Eastern District of Oklahoma and the District 18 (Pittsburg and Haskell Counties) District Attorney’s Office.
Los Angeles man, arrested with guns and drugs in stolen RV at Washington State park, sentenced to 10+ years in prisonRead the Press Release
Tacoma – A 45-year-old Los Angeles man was sentenced late yesterday in U.S. District Court in Tacoma to 126 months in prison for conspiracy to distribute methamphetamine, announced U.S. Attorney Nick Brown. Anthony Morales was arrested in May 2021 and pleaded guilty in November 2022. At the sentencing hearing, U.S. District Judge Benjamin H. Settle imposed five years of supervised release to follow prison.
According to records filed in the case, Morales conspired with others to use a stolen RV to transport and sell methamphetamine and other drugs. Morales was arrested in the stolen RV in Grayland Beach State Park. Inside the RV was more than a kilo of methamphetamine, counterfeit M30 pills containing fentanyl, five firearms, assorted ammunition, and high-capacity firearm magazines. Law enforcement also recovered $24,000 in cash. Morales also had a number of identity theft related documents – drivers licenses, Social Security cards in other names, a passport, checkbooks and credit cards in other names, as well as a credit card magnetic stripe reader/writer.
Morales has eleven previous convictions as an adult for crimes such as possession of controlled substances, firearms possession, theft, and identity fraud offenses. He has been sentenced to prison for terms ranging from two years to 32 months. Prosecutors recommended an 11-year prison term for this federal offense.
The case was investigated by the Drug Enforcement Administration (DEA), the Joint Narcotics Enforcement Task Force (JNET), comprised of officers with the Lewis County Sheriff’s Office, Centralia Police Department and the Washington State Department of Corrections, and the Grays Harbor Drug Task Force.
The case was prosecuted by Assistant United States Attorney Max Shiner.
Los Angeles Man Arrested on Complaint Alleging He Robbed 31 Gas Stations and Stores and Carjacked Two Motorists in Crime SpreeRead the Press Release
SANTA ANA, California – A Los Angeles man has been arrested on a federal criminal complaint alleging he committed armed robberies at Southern California convenience stores and gas stations during a 3½-week crime spree in which he also committed two carjackings, the Justice Department announced today.
Namir Malik Ali Greene, 23, was arrested Monday and is charged with interference with commerce by robbery (Hobbs Act). At a brief court appearance this afternoon in United States District Court in Santa Ana, Greene was ordered held in federal custody until a detention hearing scheduled for Thursday.
According to the complaint filed today, Greene committed 31 robberies or attempted robberies of gas stations and convenience stores and at least two carjackings in Los Angeles and Orange counties from March 21 to April 15. During the robberies, Greene allegedly brandished a firearm at the station and store employees, threatening to shoot them if they did not retrieve money for him from the cash register.
For example, the complaint affidavit alleges, on April 4, Greene robbed eight gas station convenience stores and attempted to rob one more. During each robbery, Greene allegedly pointed a black semi-automatic handgun at the store clerk and demanded money from the cash register. On that day, Greene stole at least $2,554 from gas station stores in Hermosa Beach, Marina del Rey, Long Beach, Pico Rivera, Whittier, Montebello, Santa Monica, and Los Angeles’ Mid-City neighborhood, according to the affidavit.
In total, Greene allegedly stole at least $15,360 in cash during his robbery spree and primarily targeted stores in Los Angeles County. He also allegedly carjacked a motorist at a Fullerton gas station on March 21 and he allegedly robbed an Anaheim gas station on April 15. Approximately 90 minutes prior to the Anaheim robbery, Greene allegedly carjacked a victim in Los Angeles and used the victim’s Honda Accord as his robbery getaway car.
Two days later, law enforcement located the stolen Honda Accord in Ontario and initiated a traffic stop. Greene instead tried to escape, and a vehicle pursuit ensued, with Greene eventually losing control of the car, colliding with a curb, and disabling the vehicle, according to the affidavit. Greene allegedly fled the disabled Honda Accord on foot and was apprehended shortly afterward by law enforcement, who took him into custody.
Greene was identified from security camera footage, eyewitness testimony, his tattoos, his jewelry, and photographs in his Instagram account, according to the affidavit.
A complaint contains allegations that a defendant committed a crime. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If convicted of the Hobbs Act robbery charge, Greene would face a statutory maximum sentence of 20 years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives’ Orange County Violent Crime Task Force (OCVCTF) investigated this matter, with assistance from the Los Angeles Police Department’s Robbery Homicide Division and the Ontario Police Department. The OCVCTF is comprised of federal and local law enforcement agencies, including, but not limited to, the ATF, the Brea Police Department, the Santa Ana Police Department, the Orange County District Attorney’s Office, and the Fullerton Police Department.
Assistant United States Attorney Jeffrey M. Chemerinsky, Chief of the Violent and Organized Crime Section, is prosecuting this case.
Las Vegas Man Sentenced to Prison for Firearms OffenseRead the Press Release
LAS VEGAS – A Las Vegas resident with prior felony convictions was sentenced today by U.S. District Judge Andrew P. Gordon to 78 months in prison for unlawful possession of multiple firearms and ammunition.
Lorenzo Lindsey (28) pleaded guilty in September 2020 to felon in possession of a firearm.
According to court documents and admissions made by Lindsey, on November 16, 2018, he possessed three 9mm firearms and 100 rounds of ammunition while he was in a gun store. From June 2018 to January 2019, he possessed a 9mm firearm and ammunition at his residence. He had previously fired the 9mm at an indoor shooting range. Lindsey has at least three felony convictions, and he is prohibited by law from possessing a firearm and ammunition.
United States Attorney Jason M. Frierson for the District of Nevada and Acting Special Agent in Charge Joshua Jackson for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
This case was investigated by the ATF. Assistant United States Attorney Edward Veronda prosecuted the case.
If you have information about illegal firearms activity, submit a tip to ATF by calling the hotline at 1-800-ATF-GUNS (1-800-283-4867) or through the ReportIt mobile app.
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Laguna Man Charged with Kidnapping, Assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Bret Anthony Vallo was arraigned on an indictment charging him with kidnapping, assault of an intimate partner by strangling, and assault with a dangerous weapon. Vallo, 31, of Laguna, and a member of the Laguna Pueblo Tribal, will remain on conditions of release pending trial, which has not been scheduled.
A federal grand jury indicted Vallo on June 15, 2022. According to the indictment and other court records, on March 21, 2019, kidnapped his intimate partner, identified as Jane Doe, by unlawfully confining her. On May 30, 2019, Vallo assaulted Doe by strangling and suffocating her, then, between July 1 and July 15, 2019, Vallo assault Doe with a dangerous weapon, specifically, a metal bar, with the intent to cause her bodily harm.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Vallo faces 151 months in prison.
The Bureau of Indian Affairs investigated this case with assistance from the Pueblo of Acoma Police Department. Assistant United States Attorney Robert James Booth II is prosecuting the case.
Kyle Hendrickson Scheduled for Initial Appearance in Federal Court TodayRead the Press Release
CONCORD – Kyle Hendrickson, 25, will appear before Magistrate Judge Andrea K. Johnstone for an initial appearance in federal court today, April 18, 2023, at 3:00 p.m. in connection with his alleged threat to the Portsmouth High School on April 12, 2023, U.S. Attorney Jane E. Young announces.
Hendrickson was charged with transmitting in interstate commerce a threat to injure the person of another on April 14, 2023. He was arrested on April 13, 2023 on state charges, and transferred into federal custody this morning.
According to the charging documents, Hendrickson posted a video to his SnapChat account on Wednesday, April 12, 2023, in which he brandished a handgun while in a vehicle outside of the Portsmouth High School. The video includes a text overlay that reads “imma shoot up the school.” School surveillance footage placed Hendrickson’s vehicle outside the high school at the time of the video. Law enforcement recovered an AR-15 rifle, a shotgun, camouflage body armor, a handgun holster, a red-dot sight, and numerous rounds of ammunition from Hendrickson’s vehicle. A handgun that resembles the one used in the SnapChat video was also recovered near a motel where Hendrickson had stayed on April 12, 2023.
The charge provides for a sentence of up to five years in prison, up to three years of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Federal Bureau of Investigation, Boston Division, and the Portsmouth Police Department led the investigation. The Federal Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Somersworth Police Department, the Portland (Maine) Police Department, and the Berwick (Maine) Police Department provided valuable assistance. Assistant U.S. Attorney Charles L. Rombeau 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.
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Kanawha County Man Sentenced to Prison for Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – Christopher Stephen Taylor, 52, of St. Albans, was sentenced today to six years and six months in prison, to be followed by 15 years of supervised release, for possession of prepubescent child pornography. Taylor must also register as a sex offender.
According to court documents and statements made in court, on May 19, 2022, Taylor attempted to print images depicting prepubescent child pornography from two compact disks he brought to the self-service photo kiosk of a St. Albans pharmacy. Taylor was unable to obtain the prints and left the store. A pharmacy employee found the child pornography uploaded to the kiosk and contacted law enforcement.
Taylor admitted to possessing 1,769 images and videos of prepubescent child pornography. Many of the children in the images were under the age of 12. Several of the images depict children subjected to sadistic or masochistic conduct. Taylor admitted that one of the images depicts an adult male sexually assaulting a prepubescent girl.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI), the St. Albans Police Department, and the West Virginia State Police Internet Crimes Against Children (ICAC) Task Force.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Julie M. White prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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-181.
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Justice Department Secures Agreement with General Motors and Announces a New Resource to Help Employers Avoid Immigration-Related Discrimination When Complying with Export Control LawsRead the Press Release
Note: View the Spanish version of the release here.
The Justice Department announced today that it has secured a settlement agreement with General Motors (GM) to resolve the department’s determination that GM discriminated against non-U.S. citizens in violation of the Immigration and Nationality Act (INA). The department also announced the release of a new fact sheet to help employers avoid citizenship status discrimination when complying with export control laws, which govern U.S. companies’ ability to export certain goods and software, technology and technical data. The department’s investigation of GM revealed that the company’s violations stemmed in part from its failure to properly consider the INA’s nondiscrimination requirements when also complying with export control laws.
“Export control laws do not justify or authorize an employer to discriminate against non-U.S. citizens in violation of the Immigration and Nationality Act,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When employers commit unlawful discrimination, the Civil Rights Division will continue holding them accountable. The Civil Rights Division is issuing a new fact sheet to help educate employers and promote greater compliance with anti-discrimination law going forward.”
Under export control laws and regulations, such as the International Traffic in Arms Regulations and the Export Administration Regulations, all “U.S. persons” working at U.S. companies can access export-controlled items without authorization from the U.S. government. U.S. persons under these laws include U.S. citizens, U.S. nationals, lawful permanent residents, refugees and asylees. An employer might need authorization from the State Department or the Commerce Department to share or release export-controlled items to workers who are not U.S. persons. To confirm if an employer needs to request authorization for an employee to access export-controlled information, the employer might need to obtain a worker’s citizenship or immigration status information to determine whether they are a “U.S. person.” This process is referred to as an “export compliance assessment.”
The department’s investigation determined that until at least September 2021, GM’s export compliance assessments unnecessarily required lawful permanent residents to provide an unexpired foreign passport as a condition of employment, imposing a discriminatory barrier on them in the hiring process. From at least July 2019 until May 2021, GM improperly combined its process for verifying workers’ permission to work in the United States with its export compliance assessment, which resulted in GM unnecessarily requiring that newly hired non-U.S. citizens provide specific and unnecessary documents to prove their permission to work.
Under the terms of the agreement, GM will pay $365,000 in civil penalties to the United States. The agreement also requires GM to train its personnel on the INA’s requirements, revise its employment policies and be subject to departmental monitoring and reporting requirements. Specifically, GM must separate its process to verify permission to work in the United States from its export compliance assessment process, and stop requiring lawful permanent residents to present foreign passports as a condition of employment.
The INA’s anti-discrimination provision generally prohibits employers from discriminating based on citizenship, immigration status or national origin during the hiring process, including by imposing unnecessary documentary demands as a condition of employment. This law also prohibits employers from asking for more documents than necessary or specific documents when checking an employee’s permission to work because of citizenship, immigration status or national origin. Federal law allows workers to choose which valid, legally acceptable documentation to present to demonstrate their identity and permission to work, regardless of citizenship, immigration status or national origin. As explained in the fact sheet issued today, these employer obligations do not change when complying with export-control laws and regulations.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute generally prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid discrimination when complying with export control requirements on IER’s website. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe for email updates from IER.
Johnstown Man Sentenced to 15 Months in Prison and 3 Years of Supervised Release for Distributing Crack-CocaineRead the Press Release
JOHNSTOWN, Pa. – A former resident of Johnstown, PA, has been sentenced in federal court to a total of 15 months in prison followed by 3 years of supervised release on his conviction of distributing crack-cocaine, Acting United States Attorney Troy Rivetti announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Damian Jeffers, age 52, of Johnstown, Pennsylvania.
According to information presented to the court, on or about October 4, 2021, October 20, 2021, and October 28, 2021, Jeffers was found to distribute less than 28 grams of a mixture and substance containing a detectable amount of cocaine base, in the form commonly known as crack.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Mr. Rivetti commended the Federal Bureau of Investigation, Cambria County Drug Task Force, and the FBI Safe Streets Task Force for the investigation that led to the successful prosecution of Jeffers.
Jackson Man Sentenced to over 11 Years in Federal Prison for Armed CarjackingRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to serve 57 months for carjacking and 84 months for brandishing a firearm in relation to a crime of violence, for a total of 141 months in federal prison, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, David Demazzio Tyler, 32, carjacked an 81-year-old victim at gunpoint in Clinton, Mississippi, on December 2, 2021. Tyler pled guilty to the armed carjacking on January 5, 2023.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Clinton Police Department, and the Jackson Police Department.
Assistant United States Attorney Jessica S. Terrill prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
International Business Organizations Convicted of Criminal Conspiracy to Violate Iranian SanctionsRead the Press Release
Two international business organizations pleaded guilty and were sentenced today in the United States District Court for the District of Columbia for their participation in a criminal conspiracy to violate U.S. export laws and sanctions by sending U.S.-origin goods to Iran.
Taiwan business organization DES International Co. Ltd. (DES), and Brunei business organization Soltech Industry Co. Ltd. (Soltech) each pleaded guilty to conspiring to defraud the United States and to violate the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations. The two companies were each sentenced to pay a fine of $83,769, which is three times the value of the goods unlawfully exported to Iran, and to serve a five-year term of corporate probation. The sentences were issued by U.S. District Judge Jia M. Cobb.
“The defendant companies, which shared common directors and employees, have pled guilty to obtaining U.S. export-controlled goods for the benefit of the government of Iran and concealing the US origin of those good to facilitate their illicit transfer,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today we are holding them accountable for violating our laws at the expense of U.S. national security.”
“These criminal convictions demonstrate that we will pursue any individual or organization, wherever located, that would violate our sanctions against Iran and thereby threaten our national security,” said U.S. Attorney Matthew Graves for the District of Columbia.
“HSI will continue to work with our federal and international law enforcement partners to ensure offenders who are violating U.S. export laws and sanctions are brought to justice,” said Acting Special Agent in Charge Craig Larrabee of HSI San Antonio. “We will remain steadfast in our commitment to protect our homeland from all adversaries.
“The defendants in this case took actions that placed profit and economic gain above U.S. national security and global stability,” said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Field Office. “Today’s sentencing demonstrates the unwavering commitment of the FBI, U.S. Attorney’s Office, Department of Homeland Security, Department of Defence and Department of Commerce (DOC) to hold accountable anyone who would threaten U.S. national security and the safety of the American people.”
“Keeping our nation's sensitive technologies out of the hands of our adversaries is one of our highest priorities,” said Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service (DCIS) Southwest Field Office. “DCIS, the law enforcement arm of the Department of Defense Office of Inspector General and our federal partners are committed to identifying and holding accountable those that seek to evade U.S. export enforcement laws, putting our war fighters at risk.”
“The Bureau of Industry and Security (BIS)’s aggressive enforcement of the Export Administration Regulations plays a critical role in protecting U.S. national security,” said Special Agent in Charge Trey McClish of the DOC. “In this instance, our partnership with HSI, DCIS, FBI and the U.S. Attorney’s Office sends the message that violating U.S. export control rules on Iran will not be tolerated.”
According to the plea agreement documents, DES and Soltech, which were affiliatd with one another by virtue of common directors, employees and customers, both procured goods from the United States for the benefit of Iranian government entities and business organizations. In particular, a sales agent for both DES and Soltech helped an Iranian research center obtain U.S. goods without a license from the Department of the Treasury. These goods included a power amplifier designed for use in electromechanical devices as well as cybersecurity software. The companies’ sales agent took steps to conceal the U.S. origin of the goods, including by removing serial number stickers with the phrase “Made in USA” from packages, and by causing the cybersecurity software to be downloaded onto a computer outside of Iran. In addition, the sales agent shared developments regarding this illegal conduct with other employees and directors of DES and Soltech. An arrest warrant issued for the sales agent has not yet been executed.
The FBI San Antonio Field Office, HSI, DCIS and DOC investigated the case.
Assistant U.S. Attorney Michael J. Friedman for the District of Columbia and Trial Attorney Christopher M. Rigali of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
International Business Organizations Convicted of Criminal Conspiracy to Violate Iranian SanctionsRead the Press Release
WASHINGTON – Two international business organizations pleaded guilty and were sentenced today in the United States District Court for the District of Columbia for their participation in a criminal conspiracy to violate U.S. export laws and sanctions by sending U.S.-origin goods to Iran.
Taiwan business organization DES International Co., Ltd. (“DES”), and Brunei business organization Soltech Industry Co., Ltd. (“Soltech”), each pleaded guilty to conspiring to defraud the United States and to violate the International Emergency Economic Powers Act and the Iranian Transactions and Sanctions Regulations. The two companies were each sentenced to pay a fine of $83,769, which is three times the value of the goods unlawfully exported to Iran, and to serve a five-year term of corporate probation. The sentences were handed down by United States District Judge Jia M. Cobb.
The announcement was made by U.S. Attorney for the District of Columbia Matthew M. Graves; Assistant Attorney General of the National Security Division Matthew G. Olsen; Special Agent in Charge Oliver E. Rich, Jr., of the Federal Bureau of Investigation’s (FBI) San Antonio Field Office; Acting Special Agent in Charge Craig Larrabee, of the San Antonio, Texas, Field Office of Homeland Security Investigations at the Department of Homeland Security Investigations (HSI); Special Agent in Charge Michael Mentavlos, of the Southwest Field Office of the Defense Criminal Investigative Service of the Department of Defense (DCIS); and Special Agent in Charge Trey McClish, of the Dallas Field Office of the Department of Commerce, Office of Export Enforcement (DOC).
“We will pursue individuals and organizations, wherever located, who would threaten our national security by attempting to illegally resell U.S. origin goods to Iran,” said U.S. Attorney Graves. “The U.S. government has many avenues to hold those who break our sanctions and export control laws accountable and will ensure that the penalties for these crimes will be substantially greater than the anticipated profit from these schemes. We thank all of our law enforcement partners for their unwavering commitment to this effort.”
“The defendant companies, which shared common directors and employees, have pled guilty to obtaining US export-controlled goods for the benefit of the government of Iran and concealing the US origin of those good to facilitate their illicit transfer,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today we are holding them accountable for violating our laws at the expense of US national security.”
“The defendants in this case took actions that placed profit and economic gain above U.S. national security and global stability,” said FBI San Antonio Division Special Agent in Charge Oliver E. Rich Jr. “Today’s sentencing demonstrates the unwavering commitment of the FBI, U.S. Attorney’s Office, Department of Homeland Security, Department of Defense and Department of Commerce to hold accountable anyone who would threaten U.S. national security and the safety of the American people.”
“HSI will continue to work with our federal and international law enforcement partners to ensure offenders who are violating U.S. export laws and sanctions are brought to justice,” said Acting Special Agent in Charge Craig Larrabee, HSI San Antonio. “We will remain steadfast in our commitment to protect our homeland from all adversaries.
“Keeping our nation's sensitive technologies out of the hands of our adversaries is one of our highest priorities," said Special Agent in Charge Mentavlos, Defense Criminal Investigative Service (DCIS), Southwest Field Office. “DCIS, the law enforcement arm of the Department of Defense Office of Inspector General, and our federal partners are committed to identifying and holding accountable those that seek to evade U.S. export enforcement laws, putting our warfighters at risk.”
“BIS’s aggressive enforcement of the Export Administration Regulations plays a critical role in protecting U.S. national security,” said Special Agent in Charge Trey McClish. Dallas Field Office of the Department of Commerce, Office of Export Enforcement “In this instance, our partnership with HSI, DCIS, FBI, and the U.S. Attorney’s Office sends the message that violating U.S. export control rules on Iran will not be tolerated.”
According to the plea agreement documents, DES and Soltech, which were affiliated with one another by virtue of common directors, employees, and customers, both procured goods from the United States for the benefit of Iranian government entities and business organizations. In particular, a sales agent for both DES and Soltech helped an Iranian research center obtain U.S. goods without a license from the Department of the Treasury. These goods included a power amplifier designed for use in electromechanical devices as well as cybersecurity software. The companies’ sales agent took steps to conceal the U.S. origin of the goods, including by removing serial number stickers with the phrase “Made in USA” from packages, and by causing the cybersecurity software to be downloaded onto a computer outside of Iran. In addition, the sales agent shared developments regarding this illegal conduct with other employees and directors of DES and Soltech. An arrest warrant issued for the sales agent has not yet been executed.
The investigation was conducted by the FBI’s San Antonio, Texas, Field Office, HSI, DCIS, and DOC. Assistant U.S. Attorney Michael J. Friedman and National Security Division Trial Attorney Christopher M. Rigali are representing the United States.
Indian National Pleads Guilty to Money Laundering Conspiracy Based in Wray, ColoradoRead the Press Release
Denver – The United States Attorney’s Office for the District of Colorado announces that Dhruv Jani, age 40, formerly of Wray, Colorado, pleaded guilty today to conspiring to commit money laundering.
According to the plea agreement, starting in January 2020, Jani was part of a conspiracy to launder funds obtained from a government official imposter scheme. Victims in the United States were contacted by telephone and coerced into believing they were under investigation by “Agents” of federal law enforcement agencies (the FBI, SSA, DHS, Treasury, or U.S. Drug Enforcement Administration). Victims were told that their identities had been connected to a criminal incident, that their imminent arrest and/or deportation from the United States had been ordered by law enforcement, and that the only way to avoid arrest and or deportation was to pay the “Government” large sums of money. In a typical scenario, the “Agent” instructed the victim to remain on the phone for the duration of the call while the victim traveled to their bank to withdraw cash. The “Agent” then convinced the victim to package and ship the cash to alleged government officials via Federal Express or United Parcel Service.
The government contends that fifty-seven victims mailed, or attempted to mail, approximately $1.6 million to Jani and his conspirators in Colorado. Many of these same victims were also directed to mail packages of cash and gift cards to individuals in other states. All told, the government contends that the victims who sent money and gift cards to Colorado and to other states are out approximately $7.2 million from the government imposter scheme.
United States District Court Judge Raymond P. Moore is scheduled to sentence Jani on October 6, 2023.
This investigation is being conducted jointly with investigators from the Social Security Administration (SSA) Office of Inspector General (OIG), United States Postal Inspection Service, Department of Homeland Security-OIG, Homeland Security Investigations (HSI), and the Sterling, Colorado Police Department. The District Attorney for the 13th Judicial District has also provided assistance. This case is being prosecuted by Assistant U.S. Attorneys Martha A. Paluch and Laura B. Hurd.
Case number: 22-cr-202
Illinois Man Sentenced to over Seven Years in Prison for Illegally Possessing a FirearmRead the Press Release
A man who illegally possessed a firearm was sentenced to over seven years in prison on April 17, 2023, in federal court in Cedar Rapids, Iowa.
Kayne Russell Donath, age 23, from East Dubuque, Illinois, was convicted of possession of a firearm by a felon.
At sentencing, the Court found that Donath received a ride from an individual in the community who was providing him a personal ride-sharing service. During this service, Donath revealed his possession of a firearm. After the individual was pulled over by law enforcement, officers discovered Donath had a warrant for his arrest. The Court found that Donath pulled down the gear shifter and forced the individual to elude law enforcement. Donath assaulted the individual with the firearm during the high-speed chase. Officers recovered the firearm after it was discarded in a nearby alley. The Court also found that Donath had previously committed assaults against law enforcement and another individual.
Sentencing was held before United States District Court Judge C.J. Williams. Donath was sentenced to serve 90 months’ imprisonment and must serve a three‑year term of supervised release following his term of incarceration. There is no parole in the federal system. Donath remains in the custody of the United States Marshal until he can be transported to federal prison.
The case was prosecuted by Assistant United States Attorney Jason Dorval Norwood and was investigated by the City of Dubuque Police Department’s Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1028.
Follow us on Twitter @USAO_NDIA.
Home Confinement Compliance Supervisor Sentenced to Prison Term for Sexually Abusing InmateRead the Press Release
MIAMI — A 60-year-0ld Miami man in charge of monitoring the compliance of federal inmates in home confinement is headed to federal prison after pleading guilty to sexually abusing a woman he monitored.
Benito Montes de Oca Cruz worked as a site supervisor for Riverside House, a federal Bureau of Prisons contractor responsible for providing custodial, supervisory, and disciplinary oversight to federal inmates in home confinement. As part of monitoring compliance, Cruz visited inmates at their homes.
On December 28, 2020, Cruz visited a woman who was serving part of her 51-month sentence at home. While there, Cruz engaged in sexual contact with the victim, including touching her sexually while they were both naked.
Law enforcement received information on this illicit activity and promptly investigated. Evidence against Cruz included a video that captured the illegal activity and DNA that Cruz left behind.
The full sentence imposed by United States District Judge Robert N. Scola was four months’ imprisonment, to be followed by one year of supervised release (with the first 120 days of supervised release in home confinement). In determining the sentence, Judge Scola noted the serious nature of the offense but also considered Cruz’s lack of prior criminal history, among other factors. Cruz must surrender to the federal Bureau of Prisons on June 1.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and Special Agent in Charge James Boyersmith of the Department of Justice, Office of Inspector General (DOJ-OIG), announced the sentence.
DOJ-OIG investigated this case and Assistant U.S. Attorney Edward N. Stamm prosecuted it.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 22-cr-20459.
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Former physician's assistant sentenced for health care fraud after posing as a licensed practitionerRead the Press Release
ATLANTA - Theresa Pickering has been sentenced to federal prison for committing health care fraud by posing as a licensed physician’s assistant, which resulted in approximately $147,000 in attempted losses to insurers.
“Pickering previously served prison time for similar conduct,” said U.S. Attorney Ryan K. Buchanan. “Then in blatant disregard for the law and safety, she knowingly placed patients at significant risk by again posing as a licensed medical provider.”
“Pickering did not learn from her previous fraud conviction. Instead, she chose to continue to endanger patient lives through theft and lies,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “This sentence will serve as a reminder to others that the FBI will not tolerate healthcare providers who engage in schemes that defraud the industry and put innocent patients at risk.”
"This individual egregiously lied about her qualifications to obtain access to patient information, which she then used to steal from federal health care programs," said Tamala Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). "HHS-OIG is proud to work alongside our law enforcement partners to hold accountable those who put patients at risk and undermine the integrity of federal health care programs."
“At OPM OIG, our number one priority is protecting patients from harm,” said Conrad J. Quarles, Deputy Assistant Inspector General for Investigations, OPM OIG. “This sentencing demonstrates our commitment to working with our Federal partners to hold accountable those that would seek to put the safety of Federal health care enrollees at risk.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: On or about September 24, 2019, Pickering was hired as a licensed physician’s assistant at a family practice in Norcross, Georgia. But Pickering was not a licensed physician’s assistant in Georgia at that time, nor had she been a licensed physician’s assistant in any state since March 2014. After Pickering served a prison sentence for a 2015 fraud and narcotics case related to her illegal practice as a physician’s assistant in the State of Mississippi, Pickering relocated to Georgia and again obtained employment as a licensed physician’s assistant at the Norcross-based family practice.
While employed at the practice, Pickering treated patients, diagnosed illnesses, ordered diagnostic tests and lab work, and handled sick visits and prescribed drugs to patients – none of which was authorized by law based on her lack of licensure and exclusion from federal health care programs. Pickering also issued prescriptions, including prescriptions for controlled substances, in the name of Doctor 1, a physician contracted by the practice, and without Doctor 1’s permission. Pickering caused the practice to submit at least approximately $147,000 in fraudulent claims for reimbursement to Medicare and numerous private insurance companies.
Theresa Pickering, 55, of Norcross, Georgia, was sentenced on April 18, 2023, to two years, nine months in prison to be followed by three years of supervised release. She was also ordered to pay restitution in the amount of $48,742.30.
This case was investigated by the Federal Bureau of Investigation, Department of Health and Human Services, Office of Inspector General, and Office of Personnel Management, Office of the Inspector General.
Assistant U.S. Attorney David A. O'Neal prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former insurance agent sentenced to prison for defrauding victims by creating life insurance policies in their names without their knowledgeRead the Press Release
CINCINNATI – A former insurance agent was sentenced in U.S. District Court to 24 months in prison for defrauding dozens of victims in the Cincinnati and Dayton areas.
Seneca Birchmore, 45, of Cincinnati, committed aggravated identity theft. Birchmore also fraudulently obtained two COVID Paycheck Protection Program loans.
As part of his sentence, Birchmore was ordered to pay nearly $147,000 in restitution.
According to court documents, Birchmore lost his license as an insurance agent in 2019 because he was writing unauthorized insurance policies so that he could collect the commissions.
After losing his license, Birchmore then stole the identities of two other insurance agents and used those identities to write more life insurance policies for customers who did not want them. Birchmore had the commissions from dozens of local victims’ policies deposited into his own bank accounts.
Local law enforcement departments received complaints from victims that money was being automatically withdrawn from their bank accounts for insurance policies they never ordered. Many of the victims are senior citizens, and most reside in Dayton, Englewood, Middletown and Cincinnati.
The commissions for Birchmore’s original fraudulent insurance policies under his own name as an agent totaled more than $8,000. The commissions for policies created under the stolen identities of other agents totaled more than $93,000.
“This case is based plainly on Birchmore’s greed combined with his wanton acts to take advantage of some of society’s most vulnerable people, the senior customers,” said U.S. Attorney Kenneth L. Parker. “Unfortunately, the victims in the case are not only the customers, but also the insurance agents whose identities he stole as well as the insurance companies he caused to pay the fraudulent commissions.”
As part of his conviction, Birchmore was ordered to pay the following restitution:
- Americo Financial Life and Annuity Insurance Company: $34,820.37
- Columbian Life Insurance Company: $16,604.01
- Transamerica Life Insurance Company: $4,671
- Mutual of Omaha: $2,104.65
- Great Western Insurance Company: $16,303.17
- Aetna Health and Life Insurance Company: $8,826.84
- American General Life Insurance Company: $2,718.45
- Guarantee Trust Life Insurance Company: $17,906.07
- Integrity Market: $1,000.00
- U.S. Small Business Administration: $41,665
In a separate scheme, Birchmore fraudulently obtained two COVID Paycheck Protection Program loans totaling more than $40,000. Birchmore claimed on both loan applications that he owned a business in his name and stated his gross income for 2019 was more than $13 million. No such business existed.
The defendant was charged federally and arrested in June 2022. He pleaded guilty in January 2023.
“I commend the diligence of the Ohio Department of Insurance's investigatory team for bringing detailed aspects of this case to light, and the work of the partner agencies to ensure accountability for breaking the law,” said Ohio Department of Insurance Director Judith L. French. “Insurance crimes are serious. They negatively impact consumers and also drive up the cost of insurance for all Ohioans.”
U.S. Attorney Parker and Director French were joined by the Social Security Office of Inspector General, U.S. Secret ServiceOhio Bureau of Motor Vehicles, U.S. Department of Labor Office of Inspector General, U.S. Marshals Service, Butler County Sheriff’s Office and Cincinnati Police Department in announcing the sentence imposed on April 13 by Senior U.S. District Judge Susan J. Dlott. Assistant United States Attorney Julie D. Garcia and former Special Assistant United States Attorney Timothy Landry represented the United States in this case.
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Former Police Officer Pleads Guilty to Theft of Firearms from Police Weapons Vault and Tampering with Multiple WitnessesRead the Press Release
SAN JUAN, Puerto Rico – Former police officer William Cintrón-Rivera, a.k.a. “El Kid/Kid” pleaded guilty to the theft of 54 guns and thousands of rounds of ammunition from the Puerto Rico Police Bureau, Guayama headquarters on July 17, 2019. On January 20, 2021, a federal grand jury charged the defendant with multiple counts of firearms violations and tampering with witnesses.
According to court documents, on July 17, 2019, in the District of Puerto Rico, defendant Cintrón-Rivera stole 54 firearms from the Puerto Rico Police Bureau (PRPB), Guayama headquarters. At the time of the theft, defendant Cintrón-Rivera was a police officer in the PRPB. In addition, the defendant was charged with the possession of six of the stolen firearms and thousands of rounds of ammunition.
The investigation revealed that Cintrón-Rivera attempted to intimidate and corruptly persuade two individuals to provide false information to federal investigators relevant to the theft, such as Cintrón-Rivera’s whereabouts on the night of the crime. Cintrón-Rivera also attempted to intimidate and corruptly persuade a female to provide false information to federal investigators regarding (a) the nature and duration of their relationship; (b) Cintrón-Rivera’s whereabouts during the timeframe of the theft; (c) the identity of an alleged informant; and (d) communications involving Cintrón-Rivera and her, including payment for an alleged cell phone.
Cintrón-Rivera is scheduled to be sentenced on August 2, 2023. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico and Christopher Robinson, Special Agent in Charge for ATF, made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Puerto Rico Police Bureau are investigating the case.
Assistant U.S. Attorney Luis A. Valentin and Jonathan L. Gottfried, Chief of the Violent Crimes and National Security Section, were in charge of the prosecution of the case.
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Former Physician Associated with 1-800-GET-THIN Sentenced to 7 Years in Federal Prison for Massive Fraud Against Health InsurersRead the Press Release
LOS ANGELES – A former doctor has been sentenced to 84 months in federal prison for scheming to defraud private insurance companies and the Tricare health care program for U.S. military service members by fraudulently submitting nearly $120 million in claims related to the 1-800-GET-THIN Lap-Band surgery business, the Justice Department announced today.
Julian Omidi, 54, of West Hollywood, was sentenced Monday evening by United States District Judge Dolly M. Gee.
Judge Gee also sentenced Surgery Center Management LLC (SCM), an Omidi-controlled Beverly Hills-based company, to five years’ probation. A separate hearing on restitution and forfeiture in this case, along with SCM’s fine, is expected in the coming weeks.
At the conclusion of a three-month trial, a federal jury in December 2021 found Omidi and SCM guilty of 28 counts of wire fraud and three counts of mail fraud. Omidi also was found guilty of two counts of making false statements relating to health care matters, one count of aggravated identity theft and two counts of money laundering. Omidi and SCM also were found guilty of conspiracy to commit money laundering.
“As found by the jury, the defendant Julian Omidi deliberately and repeatedly acted with an eye towards business and profits, rather than in the interest of GET THIN’s medical patients, by inducing patients to undergo medical treatment premised on fraud rather than medical necessity, including surgeries that carry significant risks and life-long health impacts,” said United States Attorney Martin Estrada. “Those who engage in fraud – to the detriment of vulnerable patients and the insurance companies – must always be held accountable.”
“Patients rely on medical providers to give them information that is truthful and accurate, so that the patients do not make inappropriate decisions about medical devices, which FDA oversees,” said Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations Los Angeles Field Office. “When providers give inaccurate information, we will investigate and bring to justice those who place profits over public health.”
“Mr. Omidi made millions at the expense of the multiple victim companies he defrauded, and he violated his oath to ‘do no harm’ by callously misleading patients about the need for a sleep study and subsequent weight loss surgery,” said Donald Alway, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This successful prosecution should send a clear warning to anyone in the medical profession who intends to falsify insurance claims for unnecessary procedures or provide faulty medical advice to patients seeking reliable care.”
“Medical providers are in a position of great trust, and this former doctor broke that trust victimizing patients including military service members with medically unnecessary treatment to boost his own profits by hundreds of millions of dollars,” said Insurance Commissioner Ricardo Lara. “Medical provider fraud is a multi-billion-dollar problem that drives up health insurance premiums and creates a drain on our economy. My Department of Insurance and our law enforcement partners are committed to investigating fraud and protecting consumers and the health care system.”
Omidi is a former dermatologist whose medical license was revoked in 2009 after state authorities found he had engaged in dishonesty and unprofessional conduct related to his application for his California medical license.
He controlled, in part, the GET THIN network of entities, including SCM, that focused on the promotion and performance of Lap-Band weight-loss surgeries. Omidi established procedures requiring prospective Lap-Band patients – even those with insurance plans he knew would never cover Lap-Band surgery – to have at least one sleep study, and employees were incentivized with commissions to make sure the studies occurred.
Omidi used the sleep studies to find a reason – the “co-morbidity” of obstructive sleep apnea – that GET THIN would use to convince the patient’s insurance company to pre-approve the Lap-Band procedure.
After patients underwent sleep studies – irrespective of whether any doctor had ever determined the study was medically necessary – GET THIN employees, acting at Omidi’s direction, often falsified the results. Omidi then used the falsified sleep study results in support of GET THIN’s pre-authorization requests for Lap-Band surgery.
Relying on the false sleep studies – as well as other false information, including patients’ weights – insurance companies authorized payment for some of the proposed Lap-Band surgeries. Moreover, even if the insurance company did not authorize the surgery, GET THIN still was able to submit bills for approximately $15,000 for each sleep study. Prosecutors estimate that Omidi’s conduct caused insurers and Tricare to pay at least approximately $41 million for Lap-Band procedures, sleep studies, and CPAP devices and accessories tainted by this fraud.
The victim health care benefit programs include Tricare, Anthem Blue Cross, UnitedHealthcare, Aetna, Health Net, Operating Engineers Health and Welfare Trust Fund, and others.
“Today, marks the end of the appalling chapter of Julian Omidi and 1-800-GET-THIN. Omidi was well educated; he had every opportunity to be successful and make ethical decisions. However, driven by greed, he committed some of the most unconscionable and atrocious acts,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation's Los Angeles Field Office. “There are no words strong enough to describe the actions taken by Omidi. We hope this sentencing brings some closure to all the victims affected by Omidi and 1-800-GET-THIN. IRS Criminal Investigations is committed to using our financial expertise to bring down people and organizations that take advantage of our community and cause irreparable harm.”
In 2014, the government seized more than $110 million in funds and securities from accounts held by individuals and entities involved in the criminal scheme, including Omidi. The government is seeking a money judgment order of forfeiture against defendants Omidi and SCM in the amount of $98,280,221 and is pursuing civil forfeiture of the seized property totaling $107,539,422.
The U.S. Food and Drug Administration Office of Criminal Investigations; the FBI; the Defense Criminal Investigative Service; IRS Criminal Investigation; and the California Department of Insurance investigated this matter.
Assistant United States Attorneys Kristen A. Williams, Ali Moghaddas, and David H. Chao of the Major Frauds Section, and Assistant United States Attorney David C. Lachman of the Terrorism and Export Crimes Section prosecuted this case. Assistant United States Attorney James E. Dochterman of the Asset Forfeiture and Recovery Section is handling the asset forfeiture portion of this case.
Former Hinds County Detention Officer Sentenced to 46 Months in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Mississippi – A Madison man was sentenced to 46 months in federal prison for possession with intent to distribute methamphetamine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, on August 18, 2018, Marcell Anderson, 26, a Hinds County detention officer, attempted to introduce contraband into the Hinds County Detention Center in Raymond, Mississippi. Anderson had an electrical taped bundle in his pants containing methamphetamine, marijuana, spice (synthetic marijuana), Xanax pills, rolling papers, and lighters.
Anderson was indicted by a federal grand jury and he pled guilty on January 25, 2023 to possession with intent to distribute methamphetamine.
The case was investigated by the Federal Bureau of Investigation and the Hinds County Sheriff’s Office.
The case was prosecuted by Assistant United States Attorney Keesha Middleton.
Former Federal Correctional Officer Pleads Guilty to Federal Civil Rights ChargeRead the Press Release
SAN JUAN, Puerto Rico – Former Bureau of Prisons Officer Emilio Rodríguez-Arroyo pleaded guilty today to one count of Deprivation of Rights Under Color of Law for using excessive force by striking an inmate whose hands were handcuffed behind his back and who was not resisting, resulting in bodily injury, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
According to court documents and information presented in court, on November 8, 2021, Rodríguez-Arroyo, a correctional officer at the Metropolitan Detention Center (MDC) in Guaynabo, Puerto Rico deprived victim E.R.R. of his Eighth Amendment right to be free from cruel and unusual punishment when the defendant struck E.R.R. in the head and face area shortly after having deployed oleoresin capsicum (OC) spray (also known as “pepper spray”) onto that area, and while E.R.R. was handcuffed behind his back, surrounded and controlled by other officers, and not resisting.
The defendant’s sentencing is scheduled for July 17, 2023, before U.S. District Judge Silvia Carreño-Coll of the U.S. District Court for the District of Puerto Rico.
The case was investigated by the FBI and the Department of Justice Office of Inspector General, and was prosecuted by Assistant U.S. Attorney Alexander Alum and Trial Attorney Eric Peffley of the United States Department of Justice, Civil Rights Division.
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Former Executive at Williams Sonoma, Inc. Charged with Three Others in Alleged Multi-Million Dollar Fraud SchemesRead the Press Release
SAN FRANCISCO - A federal grand jury in San Francisco indicted Eric Marsiglia, Kourosh Mirmehdi, Augusto Alizo, and Michael Podhurst, charging the defendants with conspiracy, wire fraud, money laundering, and related charges for their respective roles in two separate fraudulent schemes involving kickbacks and the diversion of millions of dollars of rebates belonging to Williams Sonoma, Inc., announced United States Attorney Ismail J. Ramsey and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Darren Lian. The indictment was filed April 11, 2023, and unsealed earlier today.
Two of the defendants, Marsiglia, 49, of Olive Branch, Miss., and Augusto Alizo, 51, of Weston, Florida, were arrested today in Mississippi and Florida, respectively.
According to the indictment, while employed by Williams Sonoma, Inc. (WSI), Marsiglia was involved in two fraudulent schemes. The first scheme was a conspiracy to divert rebates from commercial real estate brokers that should have gone to WSI; the rebates were diverted to accounts that Marsiglia controlled. As part of this scheme, Marsiglia allegedly paid a portion of the diverted funds to his co-conspirators, Kourosh Mirmehdi, 63, of Irvine, Calif., and Alizo. The second scheme involved the payment of kickbacks in exchange for Marsiglia directing business to companies controlled by codefendant Michael Podhurst, 63, of Union, New Jersey.
“Today’s arrests target a years-long fraud centered on defendant Marsiglia, who abused the trust placed in him by a prominent San Francisco public company,” said U.S. Attorney Ramsey. “The indictment alleges how each defendant, in separate ways, sought to capitalize on Marsiglia’s valued position within the company—but all with the singular goal of lining their own pockets with millions of dollars at the expense of his employer. Rest assured, we will prosecute corporate executives who accept kickbacks and bribes in exchange for steering contracts to undeserving individuals or companies.”
“This investigation and today’s arrests are a result of the hard work and dedication of IRS Criminal Investigation and the U.S. Attorney’s Office in Northern District of California. Our agents and prosecutors pursued a group of individuals, across state lines, who took advantage of members of our community for greed and personal enrichment,” said Special Agent in Charge Darren Lian of IRS Criminal Investigation’s Oakland Field Office. “CI special agents are determined to hold those who deceive and cheat accountable for their actions.”
Williams Sonoma, Inc. (WSI) is a home-goods retailer that operates brands Williams Sonoma, Pottery Barn, West Elm, and others. Marsiglia was WSI’s Vice President of Engineering, Projects, Planning, Facilities, and Real Estate, and, as such, was responsible for identifying commercial real estate opportunities for the company. For example, Marsiglia located warehouses that WSI could use as distribution centers, worked with landlords and commercial real estate brokers to negotiate the terms of leases, and outfitted warehouses and distribution centers. In his position, Marsiglia allegedly orchestrated the negotiation of real estate contracts on behalf of WSI that required third parties to pay millions of dollars in brokerage fee rebates to WSI. According to the indictment, rather than ensure that WSI received the brokerage fee rebates, Marsiglia instead created a shell company and then conspired with others to have the rebates paid to his company. In addition, as part of this scheme, Marsiglia allegedly paid a portion of the proceeds of this illegal scheme to his co-conspirators. Separately, Marsiglia also allegedly received kickback payments from another co-conspirator in exchange for directing contracts for business to companies controlled by the co-conspirator.
The indictment describes details of the alleged rebate diversion scheme. According to the indictment, around 2020 WSI experienced an increase in its need for warehouse space to enable it to more easily store products and ship them to consumers around the country. To meet this need, WSI worked with third-party logistics companies to assist in the negotiations with commercial real estate brokers. Marsiglia allegedly worked with codefendant Mirmehdi, who worked for a global third-party logistics company, to assist in the negotiations with commercial real estate brokers and landlords. The indictment describes how a common feature of such leasing arrangements includes the payment of rebates from the real estate brokers to the entity leasing the warehouse space. The indictment alleges Marsiglia and Mirmehdi used their positions and influence to formulate contracts and/or agreements that directed commercial real estate brokers to forward rebate payments to Marsiglia’s company, rather than to WSI. Specifically, Marsiglia created, owned, and operated a shell company named REM Group LLC. Marsiglia or Mirmehdi then allegedly represented to real estate brokers that REM Group was connected to or a part of WSI, inducing the brokers to pay rebates to REM Group. Marsiglia allegedly thereafter sent portions of the illegal proceeds of the scheme to codefendants Mirmehdi and Alizo, who was Mirmehdi’s boss at the logistics company. Marsiglia, Mirmehdi, and Alizo redirected broker fees to REM Group for warehouses leased to WSI in Florida, New Jersey, and Arizona, and attempted to do so for an additional warehouse being leased in California. In total, the indictment alleges Marsiglia, Mirmehdi, and Alizo diverted and misappropriated approximately $5.9 million in broker commission rebates owed to WSI.
The indictment also provides details of the kickback scheme. In his role at WSI, Marsiglia had authority to identify vendors and authorize and approve contracts for work to be done in the distribution centers. According to the indictment, beginning in 2018, Marsiglia worked with Podhurst to arrange for kickback payments to be paid to Marsiglia and REM Group in exchange for Marsiglia directing contracts for business in WSI’s warehouses to companies connected to Podhurst. Podhurst worked as a salesperson at a forklift and supply chain company (the Forklift Company) based in New Jersey. The indictment alleges Marsiglia and Podhurst first agreed that Marsiglia would hire the Forklift Company to provide goods or services for Williams Sonoma; in exchange, Marsiglia established REM Group as a consultant and the Forklift Company made kickback payments to REM Group. This kickback scheme continued when Podhurst and others founded a storage and material handling company to provide and build racking systems in WSI warehouses. Later, Podhurst started his own company, Precision Industrial Installations, and Marsiglia awarded contracts to that company in exchange for more kickbacks.
In total, WSI awarded companies connected to Podhurst more than $48 million in contracts for work done at warehouses around the country, and Marsiglia and Podhurst arranged for more than $12 million in kickbacks to be paid to Marsiglia’s company, REM Group.
The indictment alleges that from approximately 2018-2022, Marsiglia received nearly $20 million through his shell company, REM Group, all of which was in the form of stolen broker rebate payments or kickbacks received for awarding business to entities related to Podhurst.
In sum, the defendants were charged with the following counts:
Count(s)
Defendants
Charge
1
Eric Marsiglia
Kourosh Mirmehdi
Augusto Alizo
18 U.S.C. § 1349 – Conspiracy to Commit Wire Fraud
2-5
Eric Marsiglia
Kourosh Mirmehdi
Augusto Alizo
18 U.S.C. § 1343 – Wire Fraud
6
Eric Marsiglia
Michael Podhurst
18 U.S.C. §§ 1343, 1346, 1349 - Conspiracy to Commit Wire Fraud and Honest Services Wire Fraud
7-12
Eric Marsiglia
Michael Podhurst
18 U.S.C. §§ 1343, 1346 – Wire Fraud and Honest Services Wire Fraud
13
Eric Marsiglia
Kourosh Mirmehdi
Augusto Alizo
18 U.S.C. § 1956(h) – Money Laundering Conspiracy
14
Eric Marsiglia
Michael Podhurst
18 U.S.C. § 1956(h) – Money Laundering Conspiracy
Marsiglia made his initial appearance this morning in U.S. District Court for the Northern District of Mississippi. An initial appearance in federal court in San Francisco has not yet been scheduled. Alizo made his initial appearance this morning in federal court in the Southern District of Florida. An initial appearance in federal court in San Francisco has not yet been scheduled. Mirmehdi and Podhurst have not yet appeared in federal court for their initial appearance.
An indictment merely alleges that crimes have been committed, and each defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of 20 years in prison, and a fine of $250,000, plus restitution, if appropriate, for each violation of 18 U.S.C. §§ 1343, 1346, and 1349, as well as a maximum sentence of 20 years in prison, and a fine of $500,000, plus restitution, if appropriate, for each violation of 18 U.S.C. §1956(h). The court also may order an additional term of supervised release to begin after a prison term as part of any sentence. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorneys Ross Weingarten and Christiaan Highsmith are prosecuting the case with the assistance of Elizabeth Kim. The prosecution is the result of an investigation by the IRS-CI.
Former Detroit Police Lieutenant in Charge of Integrity Unit Sentenced to 2 ½ Years in Prison for Taking Bribes Connected to TowingRead the Press Release
DETROIT – A former police lieutenant in charge of the Detroit Police Department’s Integrity Unit was sentenced to 2 ½ years in prison for accepting bribes in a conspiracy with another Detroit police officer in connection with corruption in the towing industry in Detroit, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
John F. Kennedy, 57, of Rochester Hills, Michigan, at one point commanded the Detroit Police Department’s Integrity Unit—a division of the department’s Internal Affairs Division—and was responsible for investigating reports of law violations and professional misconduct by police officers and other city employees. Kennedy conspired with fellow Detroit police officer Daniel S. Vickers to commit bribery by accepting money and other items of value in exchange for Kennedy using and promising to use his influence as a supervisor to persuade other officers to make tow referrals to a towing company in violation of the city’s ordinance and Detroit Police Department policy. Under the city’s towing rotation, qualifying private towing companies are called by the police to tow cars that are seized by the police or reported stolen. Kennedy and Vickers were aware that by making towing referrals directly to a towing company which was not on the city’s towing rotation, they were violating the city’s rules and an ordinance which prohibit a towing company from receiving towing referrals if they are not on police department’s towing rotation.
Kennedy and fellow Detroit police officer Vickers agreed to accept bribes in the form of thousands of dollars in cars, car parts, car repairs, and new carpeting for Vickers’ home. Besides making illegal tow referrals in exchange for the bribes, Vickers and Kennedy also agreed to provide the towing company that Kennedy was investigating with confidential information about the status of the Integrity Unit’s case.
In total, Kennedy accepted bribes amounting to $14,950 during the course of the conspiracy. In addition, Vickers accepted over $3,400 in bribe payments from the towing company.
Vickers has pleaded guilty to the bribery conspiracy and was sentenced in February of this year to 27 months in prison.
Vickers and Kennedy were charged as part of the government’s investigation of corruption within the government and the Police Department of the City of Detroit relating to the towing industry and other matters. Thus far, six defendants have been charged in the probe, and five of those six defendants have been convicted.
U.S. Attorney Ison said, “Today’s sentence underscores our commitment to ensuring local police agencies embody the utmost commitment to excellence, integrity, and professionalism. Thankfully, today’s result is not emblematic of the character of our law enforcement partners. Nevertheless, this type of immoral conduct will and must be punished. We thank Chief of Police James White for his assistance in this investigation.”
“Police officers take an oath to protect and serve their community. Today, John Kennedy is being held accountable for violating that oath and using his official position to benefit himself personally,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “We appreciate the partnership and cooperation of Detroit Police Chief James White as the FBI’s Public Corruption Task Force continues to address public corruption in the City of Detroit.”
“This former officer’s actions are unacceptable for anyone who has the privilege to wear the Detroit Police badge,” said Detroit Police Chief James E. White. “We appreciate U.S. Attorney Ison’s work to bring accountability to those who fail in their sworn duty to serve and protect the public and will continue to collaborate with her office in any investigation of alleged wrongdoing by our officers. Delivering transparent, accountable, policing excellence that Detroiters deserve is a top priority of my administration.”
The case was investigated by the Detroit Area Public Corruption Task Force, which is led by the Federal Bureau of Investigation, with assistance from the Detroit Police Department, Michigan Attorney General's Office, Customs & Border Protection, and the U.S. Department of Homeland Security. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.
Former Detroit Police Lieutenant in Charge of Integrity Unit Sentenced to 2 ½ Years in Prison for Taking Bribes Connected to TowingRead the Press Release
DETROIT – A former police lieutenant in charge of the Detroit Police Department’s Integrity Unit was sentenced to 2 ½ years in prison for accepting bribes in a conspiracy with another Detroit police officer in connection with corruption in the towing industry in Detroit, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
John F. Kennedy, 57, of Rochester Hills, Michigan, at one point commanded the Detroit Police Department’s Integrity Unit—a division of the department’s Internal Affairs Division—and was responsible for investigating reports of law violations and professional misconduct by police officers and other city employees. Kennedy conspired with fellow Detroit police officer Daniel S. Vickers to commit bribery by accepting money and other items of value in exchange for Kennedy using and promising to use his influence as a supervisor to persuade other officers to make tow referrals to a towing company in violation of the city’s ordinance and Detroit Police Department policy. Under the city’s towing rotation, qualifying private towing companies are called by the police to tow cars that are seized by the police or reported stolen. Kennedy and Vickers were aware that by making towing referrals directly to a towing company which was not on the city’s towing rotation, they were violating the city’s rules and an ordinance which prohibit a towing company from receiving towing referrals if they are not on police department’s towing rotation.
Kennedy and fellow Detroit police officer Vickers agreed to accept bribes in the form of thousands of dollars in cars, car parts, car repairs, and new carpeting for Vickers’ home. Besides making illegal tow referrals in exchange for the bribes, Vickers and Kennedy also agreed to provide the towing company that Kennedy was investigating with confidential information about the status of the Integrity Unit’s case.
In total, Kennedy accepted bribes amounting to $14,950 during the course of the conspiracy. In addition, Vickers accepted over $3,400 in bribe payments from the towing company.
Vickers has pleaded guilty to the bribery conspiracy and was sentenced in February of this year to 27 months in prison.
Vickers and Kennedy were charged as part of the government’s investigation of corruption within the government and the Police Department of the City of Detroit relating to the towing industry and other matters. Thus far, six defendants have been charged in the probe, and five of those six defendants have been convicted.
U.S. Attorney Ison said, “Today’s sentence underscores our commitment to ensuring local police agencies embody the utmost commitment to excellence, integrity, and professionalism. Thankfully, today’s result is not emblematic of the character of our law enforcement partners. Nevertheless, this type of immoral conduct will and must be punished. We thank Chief of Police James White for his assistance in this investigation.”
“Police officers take an oath to protect and serve their community. Today, John Kennedy is being held accountable for violating that oath and using his official position to benefit himself personally,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “We appreciate the partnership and cooperation of Detroit Police Chief James White as the FBI’s Public Corruption Task Force continues to address public corruption in the City of Detroit.”
“This former officer’s actions are unacceptable for anyone who has the privilege to wear the Detroit Police badge,” said Detroit Police Chief James E. White. “We appreciate U.S. Attorney Ison’s work to bring accountability to those who fail in their sworn duty to serve and protect the public and will continue to collaborate with her office in any investigation of alleged wrongdoing by our officers. Delivering transparent, accountable, policing excellence that Detroiters deserve is a top priority of my administration.”
The case was investigated by the Detroit Area Public Corruption Task Force, which is led by the Federal Bureau of Investigation, with assistance from the Detroit Police Department, Michigan Attorney General's Office, Customs & Border Protection, and the U.S. Department of Homeland Security. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.
Former Department of Energy Contractor Sentenced to 121 Months for Distributing and Possessing Child PornographyRead the Press Release
KNOXVILLE, Tenn. – On April 18, 2023, the Honorable Thomas A. Varlan, United States District Judge for the Eastern District of Tennessee, sentenced David Bryon King, age 57, to serve 121 months in federal prison followed by a lifetime on supervised release for attempted distribution and possessing child pornography. During the time of the offense, King was a contractor working as a fire inspector for the Oak Ridge National Laboratory.
According to the filed plea agreement, King admitted that he distributed child pornography to others in 2022, in violation of 18 U.S.C. § 2522A(a)(2)(B), and possessed child pornography in 2021 and 2022, in violation of 18 U.S.C. § 2252A(a)(5)(B). King was identified as making online payments to individuals believed to be selling child pornography. Agents with the Department of Energy Office of Inspector General interviewed King at his residence. During the interview, King admitted to being in possession of child pornography, specifically on his smartphone. Agents seized the device and obtained a federal search warrant to search the device. Forensic analyses of King’s smartphone uncovered images and videos of child pornography and other evidence linking King to the attempted distribution of child pornography.
“Protecting children and holding perpetrators accountable is a top priority for the U.S. Attorney’s Office and we will continue to work with our law enforcement partners to investigate and prosecute child exploitation cases,” said United States Attorney Francis M. Hamilton III.
“I commend our agents and our partners at the Department of Justice and the U.S. Attorney’s Office for investigating and prosecuting such heinous crimes against children,” said Teri L. Donaldson, Inspector General for the Department of Energy. “Our investigators will continue doing everything they can to identify and investigate instances of child exploitation within the Department. Crimes against children have absolutely no place anywhere, and we will continue working with the Department of Justice and U.S. Attorney’s Offices around the country to investigate and prosecute the offenders.”
The case was investigated by the Department of Energy Office of Inspector General.
Assistant U.S. Attorney Jennifer Kolman represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
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Former Baltimore City Assistant State’s Attorney Sentenced to Two Years in Federal Prison for Unlawfully Obtaining Phone RecordsRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced former Baltimore City Assistant State’s Attorney Adam Lane Chaudry, age 43, of Baltimore, Maryland, today to two years in federal prison, followed by three years of supervised release, for two counts of fraud in connection with obtaining confidential phone records. As part of his guilty plea, Chaudry admitted that he committed the crime to stalk his victims.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Maryland State Prosecutor Charlton T. Howard III; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
“Adam Chaudry egregiously abused his power,” said U.S. Attorney Erek L. Barron. “We wield prosecutorial power for the public interest, not for personal interest. This office will tolerate nothing less.”
“Prosecutors, like law enforcement, are expected to protect the innocent and hold accountable those who partake in criminal activities. For Chaudry to abuse his power and the trust of both law enforcement and the public for his own inappropriate purposes hinders the ability to carry out the mission and feeds public skepticism,” said Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office. “Today’s sentence is a message such exploitation will not mar the reputation of prosecutors and law enforcement who take pride and responsibility in maintaining law and order.”
According to the plea agreement, from June 2009 to June 18, 2021, Chaudry worked as an Assistant State’s Attorney in the Baltimore City State’s Attorney’s Office (“BSAO”). From September 2015 until he left the BSAO, Chaudry worked in the BSAO’s Homicide Division. During his tenure in the office, Chaudry maintained an intimate relationship with two of the victims. At no time were any of the victims a witness or target of any criminal investigation or prosecution by the BSAO.
As detailed in the guilty plea, Chaudry fraudulently caused 65 grand jury and trial subpoenas to be sent to telecommunications companies in Florida and New Jersey requesting telephone records of the victims. Additionally, an investigator at BSAO provided Chaudry information that he previously requested, including a victim’s home address, MVA information, and driver’s license photograph. Chaudry then used this information, along with information from the fraudulent subpoenas, to get details about the victims’ hotel stays and other personal and private information.
U.S. Attorney Erek L. Barron commended the FBI and the State Prosecutor’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Sean R. Delaney and Special Assistant U.S. Attorney Sarah R. David, who prosecuted the case. For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Former Account Administrator Pleads Guilty to Payroll Fraud SchemeRead the Press Release
WASHINGTON – Warrenetta Renee Smith, 56, of District Heights, Maryland, pleaded guilty today in Superior Court to one count of First-Degree Fraud for a payroll fraud scheme in which she stole more than $62,000 from her former employer. U.S. Attorney Matthew M. Graves for the District of Columbia and Chief Robert Contee III of the Metropolitan Police Department made the announcement.
According to court documents, Smith, who was employed by a Washington, D.C. small business as an account specialist in the company’s accounting department, used her access to the company’s payroll management system to falsify her own payroll information for at least 84 pay periods between July 2018 and May 2020. To perpetuate the scheme, Smith would compile the weekly payroll information for each of the company’s employees to submit for approval by the company’s CFO. However, after receiving the necessary approvals, Smith altered her own approved regular hours, overtime, or leave in the company’s payroll management system, in order to fraudulently increase her pay for the applicable pay period.
The Honorable Andrea Hertzfeld accepted Smith’s guilty plea and scheduled sentencing for June 16, 2023. As part of the plea agreement, Smith agreed to pay $35,000 in restitution.
In announcing the guilty plea, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department’s Financial and Cyber Crimes Unit. They also commended the work of Assistant U.S. Attorney Benjamin D. Bleiberg for investigating and prosecuting the case.
Foreign National Involved in Religious Institution Check Theft Conspiracy Sentenced to Almost Three Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang today sentenced Daniel Velcu, age 43, of Baltimore, Maryland, to 34 months in federal prison, followed by three years of supervised release, for conspiracy to commit bank fraud and wire fraud. As part of his sentence, Velcu will be required to pay $1,313,499.79 in restitution.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Postal Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Acting Special Agent in Charge Michael Serra of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) Mid-Atlantic Region; Chief Marcus Jones of the Montgomery County Police Department; Chief Terry Sult of the Cary, North Carolina, Police Department; and Sheriff Dusty Rhoades of the Williamson County, Tennessee, Sheriff’s Office.
According to his guilty plea, beginning in June 2018 to October 2020, Velcu and his co-conspirators conspired to steal checks from the U.S. mail intended for religious institutions and deposit the illegally obtained funds into multiple fraudulent bank accounts at various victim financial institutions. Conspirators, including Velcu, conducted the thefts by driving to roadside mailboxes of churches and other religious institutions and removing the mail, specifically targeting donation checks.
As part of the scheme to defraud, Velcu and other co-conspirators fraudulently opened bank accounts at victim financial institutions, often in fictitious names, with the aid of co-conspirator Diape Seck, who was an employee at one of the victim financial institutions. Velcu used false names and accompanying fraudulent identity documents containing his photograph to open accounts and receive ATM cards and account information, in addition to using accounts opened by Seck. Velcu and others deposited stolen checks into the fraudulently opened bank accounts and into bank accounts held in his own or a family member’s identity. Velcu and co-conspirators then withdrew cash from the fraudulent bank accounts through ATMs and spent the illegally obtained proceeds using debit cards associated with the bank accounts.
During the course of the conspiracy, Velcu personally deposited at least 70 stolen checks, totaling at least $40,357.50 and those accounts received at least $48,987.44 from approximately 101 stolen checks. Information found on Velcu’s cellular phone revealed that eight additional accounts in the name of Velcu or a family member received at least $82,872.65 from approximately 145 stolen checks
On October 9, 2020, law enforcement executed a search warrant at Velcu’s residence and storage unit in Baltimore and recovered approximately $87,064 is cash, assorted gold coins and jewelry, all of which are being forfeited as proceeds of the conspiracy. Law enforcement also seized fraudulent French identity documents containing photographs of Velcu and a false name.
Five other conspirators previously pleaded guilty to the conspiracy and were sentenced to up to five years in federal prison. Former bank employee Seck was convicted after trial. Seck faces a maximum sentence of 30 years in federal prison for each of conspiracy to commit bank fraud; bank fraud; making false entries in bank records; and receipt of a bribe or reward by a bank employee. U.S. District Judge Theodore D. Chuang has scheduled sentencing for Seck on June 2, 2023, at 2:30 p.m.
United States Attorney Erek L. Barron commended the U.S. Postal Inspection Service, HSI, the FDIC Office of Inspector General, the Montgomery County Police Department, the Cary (North Carolina) Police Department, and the Williamson County (Tennessee) Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Elizabeth Wright, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Florida Man Found Guilty of Attempted Enticement of a MinorRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a jury has convicted James Dean Hanapel, age 22, of Jacksonville, Florida, of Attempted Enticement of a Minor Using the Internet following a 3-day jury trial in federal district court in Rapid City, South Dakota. The verdict was returned on April 13, 2023.
The charges carry a mandatory minimum sentence of 10 years imprisonment and a maximum penalty of life imprisonment and/or a $250,000 fine, five years up to lifetime of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Hanapel was indicted by a federal grand jury in August of 2021.
Evidence at trial established that Hanapel was arrested as a result of an undercover sex trafficking operation conducted during the 2021 Sturgis Motorcycle Rally, targeting internet predators. Following his sending of multiple chats and sexually explicit text messages to a person Hanapel believed to be a 14-year-old girl, but who was in fact an undercover agent, Hanapel negotiated a time and place he would meet the minor to engage in unlawful sex acts. When Hanapel arrived at the pre-determined location to meet the person he believed was the minor, he was instead met by law enforcement agents and placed under arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by the South Dakota Division of Criminal Investigation, South Dakota Internet Crimes Against Children Taskforce, Homeland Security Investigations, Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
A presentence investigation was ordered, and a sentencing date has not been set. The defendant was remanded to the custody of the U.S. Marshals Service.
Everett A. Simpson Convicted of Kidnapping and Interstate Transportation of Stolen VehiclesRead the Press Release
Burlington, Vermont – Following a jury trial, Everett A. Simpson, 45, formerly of St. Johnsbury, Vermont, was convicted on all counts – two counts of federal kidnapping and two counts of interstate transportation of stolen vehicles.
According to court documents and testimony, on January 4, 2019, Simpson absconded from the Valley Vista treatment facility in Bradford, Vermont, and stole a commercial van in Newbury, Vermont, eventually deserting that vehicle in a parking garage in Manchester, New Hampshire on the morning of January 5. Later that same day, in the parking lot of the Mall of New Hampshire, Simpson kidnapped a young woman and her four-year-old child after forcing his way into the young woman’s car. Simpson held the woman and her child against their will, driving from New Hampshire into Vermont, where Simpson attempted to locate his estranged wife. After abandoning the effort to find his wife, Simpson continued the kidnapping, now seeking to sexually assault the young woman. Simpson assaulted the woman in her car and at a hotel in White River Junction, before freeing her and her child. Simpson fled the area in the woman’s stolen car. Simpson was eventually arrested after two high-speed pursuits in Delaware County, Pennsylvania, during the second of which he was driving a third vehicle he had stolen.
United States Attorney Nikolas P. Kerest stated, “The crimes committed by Everett Simpson are of the worst variety; Simpson preyed on random victims, including a child. And, although the harms suffered by Everett Simpson’s victims are indelible, today’s across-the-board guilty verdict represents a significant step in holding Everett Simpson responsible for the heinous crimes he committed on January 5, 2019.”United States Attorney Kerest also commended the investigative agencies, including the Federal Bureau of Investigation in Vermont, Pennsylvania, and New Hampshire, the Vermont State Police, the Hartford Police Department, the Manchester, New Hampshire Police Department, and the Upper Darby, Pennsylvania Police Department, all of whom worked diligently alongside the trial team and were necessary to achieve today’s guilty verdict.
Simpson faces a statutory mandatory minimum of twenty years’ imprisonment, and a maximum sentence of life imprisonment. Simpson’s actual sentence will be determined by District Judge Sessions and will be advised by the U.S. Sentencing Guidelines.
Assistant United States Attorneys Matthew Lasher and Paul Van de Graaf represented the United States in the prosecution of Simpson. Simpson represented himself at trial with Steven Barth of the Office of the Federal Public Defender serving as stand-by counsel.
El Departamento de Justicia llega a un acuerdo con General Motors y anuncia un nuevo recurso para ayudar a los empleadores a evitar la discriminación relacionada con la inmigración en cuanto al cumplimiento con las leyes de control de exportacionesRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con General Motors (GM) que resuelve la determinación del Departamento que GM discriminó a no ciudadanos de los EE. UU., en contra de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés). Por otra parte, el Departamento anunció la publicación de una nueva hoja informativa que ayudará a los empleadores a evitar la discriminación por motivos de estatus de ciudadanía a la hora de cumplir con las leyes de control de exportaciones, las cuales gobiernan la capacidad de las empresas estadounidenses a exportar ciertos bienes y software, tecnología y datos técnicos. La investigación de GM que el Departamento realizó reveló que las infracciones de la compañía se debían, en parte, a no haber considerado adecuadamente los requisitos antidiscriminatorios de la INA en el momento de cumplir también con las leyes de control de exportaciones.
«Las leyes de control de exportaciones no justifican ni autorizan a un empleador a discriminar a no ciudadanos de los EE. UU., en contra de la ley de Inmigración y Nacionalidad», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Cuando los empleadores cometen actos discriminatorios ilegales, la División de Derechos Civiles seguirá obligándoles a rendir cuentas de sus acciones. La División de Derechos Civiles está emitiendo una nueva hoja informativa que ayudará a educar a los empleadores y promover mayor cumplimiento con las leyes antidiscriminatorias en el futuro».
Conforme los reglamentos y leyes de control de exportaciones, tales como los Reglamentos sobre el Tráfico Internacional de Armas y los Reglamentos para la Administración de Exportaciones, toda «persona en los EE. UU.» que está trabajando para una compañía estadounidense puede acceder a artículos sometidos al control de exportaciones sin la autorización del Gobierno de los EE. UU. En virtud de estas leyes, las personas en los EE. UU. incluyen a ciudadanos de los EE. UU., nacionales de los EE. UU., residentes permanentes legales, refugiados y asilados. Es posible que un empleador necesite la autorización del Departamento de Estado o el Departamento de Comercio para poder compartir o entregar artículos sometidos al control de exportaciones a trabajadores que no son «personas en los EE. UU.» Para confirmar si un empleador necesita pedir una autorización para un empleado para acceder a información sometida al control de exportaciones, puede que el empleador necesite obtener información sobre el estatus migratorio o de ciudadanía del trabajador para poder determinar si son una «persona en los EE. UU.» A este proceso se le llama una «evaluación del cumplimiento de exportaciones».
La investigación del Departamento determinó que, al menos hasta septiembre del 2021, las evaluaciones del cumplimiento de exportaciones de GM requerían, de manera innecesaria, que residentes permanentes legales proporcionaran un pasaporte extranjero vigente como condición de empleo, lo que les impuso una barrera discriminatoria durante el proceso de contratación. Y al menos desde julio del 2019 hasta mayo del 2021, GM combinó, de manera incorrecta, su proceso para verificar el permiso de los trabajadores para trabajar en los Estados Unidos con su evaluación del cumplimiento de exportaciones, lo que tuvo el efecto de que GM requirió, de forma innecesaria, que no ciudadanos de los EE. UU. que fueran recién contratados proporcionaran documentos específicos e innecesarios para demostrar su permiso para trabajar.
Conforme el acuerdo, GM pagará una sanción civil a los Estados Unidos que asciende a $365,000. Asimismo, el acuerdo requiere que GM capacite a su personal en cuanto a los requisitos de la INA, que revise sus políticas de empleo y que se someta a los requisitos de supervisión y declaración del Departamento. En concreto, GM deberá separar su proceso de verificación del permiso para trabajar en los Estados Unidos de su proceso de evaluación del cumplimiento de exportaciones y dejar de requerir que los residentes permanentes legales presenten pasaportes extranjeros como condición de su empleo.
Por lo general, la disposición antidiscriminatoria de la INA prohíbe que los empleadores discriminen por motivos de ciudadanía, estatus migratorio o nacionalidad de origen durante el proceso de contratación, lo que incluye la imposición de exigencias documentales innecesarias como condición de empleo. Asimismo, esta ley prohíbe que los empleadores pidan documentos específicos o más de los necesarios a la hora de comprobar el permiso para trabajar de un empleado por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen. Las leyes federales permiten a los trabajadores elegir los documentos válidos y legalmente aceptables que desean presentar para demostrar su identidad y permiso para trabajar, independientemente de su ciudadanía, estatus migratorio o nacionalidad de origen. Tal y como se explica en la hoja informativa que se emitió hoy, estas obligaciones del empleador no cambian cuando uno tiene que cumplir con los reglamentos y leyes de control de exportaciones.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley, por norma general, prohíbe la discriminación con base en el estatus de ciudadanía y la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; las prácticas documentales injustas; las represalias y la intimidación.
Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este video corto. Para más información sobre cómo los empleadores pueden evitar la discriminación en su cumplimiento con los requisitos de control de exportaciones, vaya al sitio web de la IER. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1‑800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a inscríbase.