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Tuesday 28 February 2023
Justice Department secures agreement with Park National Bank to resolve lending discrimination claimsRead the Press Release
COLUMBUS, Ohio – The Justice Department announced today an agreement to resolve allegations that Park National Bank (Park National), headquartered in Newark, Ohio, engaged in a pattern or practice of lending discrimination by “redlining” in the Columbus metropolitan area. This resolution is part of the Justice Department’s nationwide Combating Redlining Initiative.
“For far too long the doors to home ownership have been shut for Black families and many other people of color because of unlawful redlining by banks and other financial institutions,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When banks fail to provide equal access to lending services in neighborhoods of color, they engage in modern day redlining and exacerbate the racial wealth gap in our country. The Justice Department will continue to fight to fulfill the promise of our nation’s fair lending laws while tearing down the discriminatory barriers that deny Black people and other people of color access to economic opportunity and homeownership.”
“Let today’s settlement send a very clear message to banks: we will not tolerate discriminatory lending practices and we will hold you accountable,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “We are committed to enforcing fair lending laws, which require financial institutions to provide equal opportunity for every American to obtain home loans and credit. We take very seriously our duty and honor to uphold those laws.”
“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of the residents in those communities.
The complaint filed in federal court today alleges that, from at least 2015 to 2021, Park National failed to provide mortgage lending services in majority-Black and Hispanic neighborhoods in the Columbus area. Specifically, the department alleges that all of Park National’s branches and mortgage lenders in the Columbus area were concentrated in majority-white neighborhoods, and that the bank did not take effective measures to compensate for its lack of physical presence in majority-Black and Hispanic communities.
Under the proposed consent order, which is subject to court approval and was filed today in the U.S. District Court for the Southern District of Ohio along with the complaint, Park National has agreed, among other things, to do the following:
- Invest at least $7.75 million in a loan subsidy fund to increase access to credit for home mortgage, improvement, and refinance loans, as well as home equity loans and lines of credit, in majority-Black and Hispanic neighborhoods in the Columbus area; $750,000 in outreach, advertising, consumer financial education, and credit counseling initiatives; and $500,000 in developing community partnerships to provide services to residents of majority-Black and Hispanic areas that expand access to residential mortgage credit;
- Open one new branch and one new mortgage loan production office in majority Black-and Hispanic neighborhoods in the Columbus area; ensure that a minimum of four mortgage lenders, at least one of whom is Spanish-speaking, are assigned to serve these neighborhoods; and maintain the full-time position of Director of Community Home Lending and Development, who is responsible for overseeing lending in majority-Black and Hispanic areas; and
- Conduct a Community Credit Needs Assessment, a research-based market study, to help identify the needs for financial services in majority-Black and Hispanic census tracts in the Columbus area.
Park National worked cooperatively with the department to remedy the redlining concerns that were identified and has agreed to settle this matter without contested litigation.
The Justice Department’s Combating Redlining Initiative is a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since the initiative was launched in October 2021, the Department has announced six redlining cases and settlements and secured $84 million in relief for communities of color that have been victims of lending discrimination across the country.
More information about the department’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online. The public can also report potential civil rights violations through the U.S. Attorney’s Office main webpage or at /media/1227446/dl?inline.
Deputy Civil Chief Brandi Stewart and Assistant United States Attorney Michael J.T. Downey represented the U.S. Attorney’s Office in this matter.
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Justice Department Secures $9 Million from Park National Bank to Address Lending Discrimination AllegationsRead the Press Release
The Justice Department announced today a $9 million agreement to resolve allegations that Park National Bank (Park National), headquartered in Newark, Ohio, engaged in a pattern or practice of lending discrimination by “redlining” in the Columbus metropolitan area. The agreement is part of the Justice Department’s nationwide Combating Redlining Initiative that Attorney General Merrick B. Garland launched in October 2021.
“For far too long the doors to home ownership have been shut for Black families and many other people of color because of unlawful redlining by banks and other financial institutions,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When banks fail to provide equal access to lending services in neighborhoods of color, they engage in modern day redlining and exacerbate the racial wealth gap in our country. The Justice Department will continue to fight to fulfill the promise of our nation’s fair lending laws while tearing down the discriminatory barriers that deny Black people and other people of color access to economic opportunity and homeownership.”
“Let today’s settlement send a very clear message to banks: we will not tolerate discriminatory lending practices and we will hold you accountable,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “We are committed to enforcing fair lending laws, which require financial institutions to provide equal opportunity for every American to obtain home loans and credit. We take very seriously our duty and honor to uphold those laws.”
Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of the residents in those communities. The complaint filed in federal court in the U.S. District Court for the Southern District of Ohio today alleges that, from at least 2015 to 2021, Park National failed to provide mortgage lending services by redlining majority-Black and Hispanic neighborhoods in the Columbus area. Specifically, the complaint alleges that all of Park National’s branches and mortgage lenders in the Columbus area were concentrated in majority-white neighborhoods, and that the bank failed to take any meaningful measures to compensate for its lack of physical presence in majority-Black and Hispanic communities.
Under the proposed consent order, which was also filed today in federal court and is subject to court approval, Park National has agreed, among other things, to do the following:
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Invest at least $7.75 million in a loan subsidy fund to increase access to credit for home mortgage, improvement, and refinance loans, as well as home equity loans and lines of credit, in majority-Black and Hispanic neighborhoods in the Columbus area; $750,000 in outreach, advertising, consumer financial education, and credit counseling initiatives; and $500,000 in developing community partnerships to provide services to residents of majority-Black and Hispanic areas that expand access to residential mortgage credit;
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Open one new branch and one new mortgage loan production office in majority Black-and Hispanic neighborhoods in the Columbus area; ensure that a minimum of four mortgage lenders, at least one of whom is Spanish-speaking, are assigned to serve these neighborhoods; and maintain the full-time position of Director of Community Home Lending and Development, who is responsible for overseeing lending in majority-Black and Hispanic areas; and
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Conduct a Community Credit Needs Assessment, a research-based market study, to help identify the needs for financial services in majority-Black and Hispanic census tracts in the Columbus area.
Park National worked cooperatively with the department to remedy the redlining concerns that were identified and has agreed to settle this matter without contested litigation.
The Justice Department’s Combating Redlining Initiative is a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since the Initiative was launched, the department has announced six redlining cases and settlements and secured $84 million in relief for communities of color that have been victims of lending discrimination across the country. This includes a $31 million settlement with City National Bank, the largest in Justice Department history.
More information about the department’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.
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Justice Department Files Complaint Alleging Public Health Endangerment Caused by Denka Performance Elastomer’s Carcinogenic Air PollutionRead the Press Release
Today, on behalf of the U.S. Environmental Protection Agency (EPA) and in coordination with the U.S. Attorney’s Office for the Eastern District of Louisiana, the U.S. Department of Justice filed a complaint under Section 303 of the Clean Air Act against Denka Performance Elastomer LLC (Denka) to compel Denka to significantly reduce hazardous chloroprene emissions from its neoprene manufacturing facility in LaPlace, Louisiana. The complaint asserts that the LaPlace plant’s operations present an imminent and substantial endangerment to public health and welfare due to the cancer risks from Denka’s chloroprene emissions.
“We allege that Denka’s emissions have led to unsafe concentrations of carcinogenic chloroprene near homes and schools in St. John the Baptist Parish, Louisiana,” said Associate Attorney General Vanita Gupta. “The Justice Department’s environmental justice efforts require ensuring that every community, no matter its demographics, can breathe clean air and drink clean water. Our suit aims to stop Denka’s dangerous pollution.”
“When I visited Saint John the Baptist Parish during my first Journey to Justice tour, I pledged to the community that EPA would take strong action to protect the health and safety of families from harmful chloroprene emissions from the Denka facility,” said EPA Administrator Michael S. Regan. “This complaint filed against Denka delivers on that promise. The company has not moved far enough or fast enough to reduce emissions or ensure the safety of the surrounding community. This action is not the first step we have taken to reduce risks to the people living in Saint John the Baptist Parish, and it will not be the last.”
“The Justice Department and EPA have worked closely together to bring decisive action to address Denka’s harmful air pollution,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Today’s complaint is part of our ongoing effort to advance environmental justice in overburdened communities through the enforcement of laws.”
Denka’s facility manufactures neoprene, a flexible, synthetic rubber used to produce common goods like wetsuits, beverage cozies, laptop sleeves, orthopedic braces, and automotive belts and hoses. Chloroprene is a liquid raw material used to produce neoprene and is emitted into the air from various areas at the facility.
According to the complaint, filed today in the U.S. District Court for the Eastern District of Louisiana, air monitoring – conducted by both the EPA and Denka over the past several years – consistently shows long-term chloroprene concentrations in the air near Denka’s LaPlace facility that are as high as 14 times the levels recommended for a 70-year lifetime of exposure. This complaint seeks to compel Denka to eliminate the public health endangerment caused by its emissions by greatly reducing the levels of chloroprene to which this community is being exposed.
The complaint also names DuPont Specialty Products USA LLC – the owner of the land beneath Denka’s facility and Denka’s landlord. DuPont is a necessary party to ensure there are no delays in any actions that Denka is ordered to take to reduce its chloroprene emissions as a result of the rights DuPont holds under its lease agreement with Denka.
In 2010, EPA published its peer-reviewed assessment of chloroprene that concluded the chemical is “likely to be carcinogenic to humans.” According to guidance that looks at impacts of certain cancer-causing chemicals to children, EPA also acknowledged that children accumulate excess lifetime cancer risk from breathing chloroprene faster than adults. Approximately 20% of the total population living within two-and-a-half miles of Denka are children under the age of 18, and about 800 to 1,000 children are under the age of five. Children are particularly vulnerable to carcinogens like chloroprene because they change DNA and harm cells, meaning they are “mutagenic.” Denka’s chloroprene’s emissions reach more than 300 young children who attend the 5th Ward Elementary School, located within approximately 450 feet of Denka’s facility. Approximately 1,200 children who attend East St. John High School, located roughly a mile-and-a-half north of Denka, are also exposed to the facility’s chloroprene emissions.
Justice Department Attorneys Steven Shermer, Davis Forsythe, and Hannah Frazier of the Environment and Natural Resources Division’s Environmental Enforcement Section are handling this matter.
Joplin, Webb City Man Indicted for Drug Trafficking, Illegal FirearmsRead the Press Release
SPRINGFIELD, Mo. – A Joplin and Webb City, Mo., man was indicted by a federal grand jury today for drug trafficking and illegally possessing firearms.
Milan Alexander, 42, who maintains residences in both Joplin and Webb City, was charged in a four-count indictment returned by a federal grand jury in Springfield, Mo. Today’s indictment replaces a federal criminal complaint that was filed against Alexander on Feb. 3, 2023.
Today’s indictment alleges that Alexander possessed fentanyl, methamphetamine, and cocaine, all with the intent to distribute, on Feb. 2, 2023.
The indictment also charges Alexander with one count of being a felon in possession of firearms. Alexander was allegedly in possession of two Glock 9mm pistols, two Century Arms Mini Draco 7.62-caliber pistols, a Springfield Armory .45-caliber pistol, a Heckler & Koch 9mm pistol, and a Brigade multi-caliber pistol on Feb. 2, 2023.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Alexander has three prior felony convictions for possession of a controlled substance and two prior felony convictions for resisting arrest, as well as prior felony convictions for being a felon in possession of a firearm, aggravated fleeing from law enforcement, possession of marijuana with the intent to deliver, and possession of a controlled substance with the intent to deliver.
According to an affidavit filed in support of the original criminal complaint, detectives with the Ozark Drug Enforcement Team found a total of 649 grams of fentanyl, two firearms, and a box that contained 750 rounds of 9mm ammunition and 320 rounds of 7.62 ammunition in Alexander’s Joplin residence. Detectives also found a duffel bag that contained six firearms at Alexander’s Webb City residence.
Following the execution of search warrants at both of his residences, law enforcement officers attempted to conduct a traffic stop to arrest Alexander. Alexander led officers on a high-speed pursuit until his vehicle was disabled by tire deflation devices deployed by Seneca, Mo., police officers. Alexander then fled on foot but, after an extensive search with the assistance of a police support dog, was found hiding in a shed.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Cameron A. Beaver. It was investigated by the FBI, the Ozark Drug Enforcement Team, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Joplin, Mo., Police Department, the Webb City, Mo., Police Department, the Newton County, Mo., Sheriff’s Department, the Seneca, Mo., Police Department, and the Jasper County, Mo., Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Jamaican Man Sentenced for Illegal ReentryRead the Press Release
BOSTON – A Jamaican man was sentenced yesterday for illegally reentering the United States after two prior removals.
Arik Hugh Halliman, 40, was sentenced by U.S. District Court Judge Leo T. Sorokin to time-served (approximately seven months in prison) to be followed by three years of supervised release. Halliman will be subject to removal proceedings. In November 2022, Halliman pleaded guilty to one count of unlawful reentry of a deported alien.
In 2008, Halliman was arrested in Worcester County on cocaine trafficking charges, for which he was convicted in 2011 and sentenced to five years in prison. Upon completion of his sentence, Halliman was placed into removal proceedings and deported in June 2013.
Sometime after his 2013 removal, Halliman illegally reentered to the United States. In 2018, he was arrested in Worcester County on cocaine trafficking charges and subsequently arrested by immigration authorities after making bail on the state charges. Once in immigration custody, Halliman’s previous order of removal was reinstated and he was deported for the second time in July 2018.
Sometime after his 2018 removal, Halliman again illegally reentered to the United States. In July 2022, Halliman was arrested in Dudley, Mass., for motor vehicle violations and using a false ID. Upon making bail, Halliman was arrested by immigration authorities and transferred into federal custody.
United States Attorney Rachael S. Rollins and Todd Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes Unit prosecuted the case.
Indictment Charges Alleged Darknet Marketplace Fentanyl DealerRead the Press Release
WASHINGTON – An indictment, unsealed today, charges a Coraopolis, Pennsylvania man with running a counterfeit drug conspiracy that sold fentanyl and methamphetamine disguised as Oxycontin, Xanax and Adderall on a Darknet Marketplace. Jacob Blair, 25, is also charged in a parallel indictment in the Western District of Pennsylvania with possession of fentanyl and methamphetamine related to a February 24, 2022, search warrant. Blair was arrested by FBI and Drug Enforcement Administration (DEA) agents on February 24, 2023, in Aliquippa, Pennsylvania. The indictments were announced by United States Attorney Matthew M. Graves, of the U.S. Attorney’s Office for the District of Columbia and Acting United States Attorney Troy Rivetti, of the U.S. Attorney’s Office for the Western District of Pennsylvania.
In the District of Columbia, Blair is charged with conspiracy to distribute and possess with intent to distribute fentanyl, methamphetamine, and metonitazene along with money laundering. According to the indictment, since at least May 2022, Blair and his co-conspirators ran a Darknet narcotics trafficking business. Blair and his network operated under the profile name YourVendorsSupplier (“YVS”). Blair’s YVS Darknet marketplace profile page lists over 459 successful drug sales in that time period. YVS was advertised on one darknet market as “a syndicate of professionals that specialize in making the best products the markets have to offer. We focus on quality, consistency, stealth, and speed. Nothing but the best. . . now vending on 5 markets, time will show that we mean business, and we’re here to stay.” YVS listed a variety of drugs for sale on their darknet market vendor account, to include several varieties of counterfeit oxycodone, Adderall and Xanax which, in reality, were fentanyl and methamphetamine. The counterfeit oxycodone pills Blair sold contained fentanyl and metonitazene; the counterfeit Adderall pills contained methamphetamine.
Blair only accepted cryptocurrency in exchange for controlled substance. Once an order came in, Blair took payment in the form of Bitcoin or Monero (cryptocurrencies) on the marketplaces. After the payment was confirmed, Blair and his network would pack the controlled substances in vacuum-sealed packaging, packaging materials, and padded shipping envelopes to disguise the substance, and would drop the packages in various United States Postal Service drop boxes in West Virginia and Pennsylvania for shipment throughout the United States.
Blair is also charged with money laundering. According to the indictment, between August of 2022 and at least February 1, 2023, Blair knowingly conducted cryptocurrency transactions, consisting of drug trafficking proceeds, through various cryptocurrency wallets and cryptocurrency exchange businesses in order to conceal that the transactions were from drug trafficking.
Law enforcement executed a series of search warrants on February 24, 2023, at residences associated with Blair and a storage unit owned by Blair. They seized over 10,000 suspected fentanyl pills, plastic tubs of raw powder, a pill press, and 11 firearms including an AK-47 and AR-15.
A separate indictment was filed against Blair in the Western District of Pennsylvania. According to that three-count indictment, Blair attempted to possess over 100 grams of a mixture and substance containing a detectable amount of a fentanyl analogue; possessed with intent to distribute over 40 grams of a mixture and substance containing a detectable amount of fentanyl and 50 grams of a mixture and substance containing methamphetamine; and possessed with intent to distribute over 400 grams of a mixture and substance containing a detectable amount of fentanyl.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The conspiracy charge carries a statutory maximum sentence of life in prison. The money laundering charge carries a statutory maximum of 10 years in prison. The charges also carry potential financial penalties, and the indictment contains a notice of forfeiture for all illegal gains. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the Pittsburgh and Washington, D.C. offices of the FBI, the DEA, the U.S. Postal Inspection Service, and Homeland Security Investigations. Valuable assistance was provided by the Pittsburgh Bureau of Police and the Moon Township Police Department.
The District of Columbia case is being prosecuted by AUSA Kevin Rosenberg, of the Violence Reduction and Trafficking Offenses Section. The Western District of Pennsylvania indictment is being prosecuted by DeMarr Moulton.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indianapolis Man Sentenced to 10 Years in Federal Prison for Armed Robberies of Seven Businesses in Eight DaysRead the Press Release
INDIANAPOLIS- Johnathon Griffin, 42, of Indianapolis, Indiana, was sentenced to 10 years in federal prison after pleading guilty to seven counts of commercial robbery.
According to court documents, between January 25, 2021, and February 2nd, 2021, Johnathon Griffin robbed, or attempted to rob, the following seven Indianapolis businesses:
DATE
VICTIM BUSINESS
January 25, 2021
Family Dollar, 1836 E. 10th Street
January 26, 2021
Circle-K, 6734 E. Washington Street
January 26, 2021
Speedway, 2012 English Avenue
January 31, 2021
Dollar General, 3725 N. Keystone Avenue
January 31, 2021
Family Dollar, 5131 N. Keystone Avenue
February 1, 2021
Circle-K, 2080 N. Shadeland Avenue
February 2, 2021
Dollar General, 8323 E. Washington Street
During each of the robberies, Griffin brandished what appeared to be a firearm at victim employees, made threats, and demanded money from the business’ cash register.
On February 2, 2021, investigators with the Indianapolis Metropolitan Police Department conducted surveillance of Griffin after identifying him as a suspect in prior robberies. Investigators followed Griffin to the Dollar General located on East Washington Street, near Warren Park. Griffin entered the store, brandished what appeared to be a firearm when the register was opened, and demanded money from the employee. Griffin grabbed the entire register drawer and ran from the store and attempted to flee in a vehicle. IMPD officers pursued Griffin as he fled. Soon after the pursuit began, Griffin crashed into two other vehicles and was immediately arrested by IMPD officers. During a search of Griffin’s vehicle, officers located a revolver style BB-gun matching the description of the weapon used in the seven robberies.
“Over just eight days, this defendant repeatedly intimidated, threatened, and robbed hard working employees of seven different businesses,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Violent spree criminals like this defendant are a grave danger to the public. Reducing violence in our communities is a top federal law enforcement priority, and I commend the FBI and IMPD for their work to hold the defendant accountable for his crimes.”
“The defendant’s spree of violent robberies terrorized innocent victims who were simply doing their jobs,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “This sentence demonstrates the importance of collaboration between law enforcement partners to ensure violent offenders such as this are held accountable, and residents can feel safe in their homes and places of work.”
The FBI and IMPD investigated this case. The sentence was imposed by U.S. District Court Judge James R. Sweeney. Judge Sweeney also ordered that Griffin be supervised by the U.S. Probation Office for 3 years following his release from federal prison. Griffin must also pay restitution to each victim.
U.S. Attorney Myers thanked Assistant United States Attorney Lawrence D. Hilton, who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Hyde Park Man Pleads Guilty to COVID-Relief and Federal Assistance Benefit FraudRead the Press Release
BOSTON – A Hyde Park man pleaded guilty yesterday in federal court in Boston to using a stolen identity to fraudulently obtain pandemic relief funds and Supplemental Nutrition Assistance Program (SNAP) benefits, previously known as Food Stamps.
Fernando Mateo Valenzuela, 69, pleaded guilty to three counts of mail fraud, two counts of aggravated identity theft and two counts of misrepresentation of a Social Security number. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for May, 24 2023. Valenzuela was charged by criminal complaint in June 2022 and subsequently indicted by a federal grand jury in August 2022.
Valenzuela used the identity of a United States citizen to apply for and receive $29,051 in Pandemic Unemployment Assistance (PUA) benefits, made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Valenzuela also used the identity to apply for and receive $7,230 in SNAP benefits.
The charges of mail fraud each provide for a sentence of up to 20 years in prison, three of supervised release and a fine of up to $250,000. The charges of aggravated identity theft each provide for a mandatory minimum sentence of two years in prison, one of supervised release and a fine of up to $250,000. The charges of misrepresentation of a Social Security number each provide for a sentence of up to five years in prison, up to three 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.United States Attorney Rachael S. Rollins; Bethanne M. Dinkins, Special Agent in Charge of the U.S. Department of Agriculture, Office of Inspector General, Office of Investigation, Northeast Region; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England; Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General; Phillip M. Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General; Ketty Larco-Ward, Postal Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and John E. Mawn Jr., Interim Colonel of the Massachusetts State Police made the announcement. Valuable assistance was provided by the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; United States Marshals Service; U.S. Department of State, Diplomatic Security Service; and the Boston Police Department. Assistant U.S. Attorney David Tobin of Rollins’ Major Crimes Unit is prosecuting the case.
The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Hot Springs Man Sentenced to More Than 7 Years in Federal Prison for Firearms PossessionRead the Press Release
HOT SPRINGS – A Hot Springs man was sentenced yesterday to 92 months in prison followed by three years of supervised release on one count of being a Felon in Possession of a Firearm. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the U.S. District Court in Hot Springs.
According to court documents, on February 10, 2020, Investigators with the Hot Springs Police Department, Special Investigations Division, conducted a controlled purchase of a firearm from Larry Wayne Natt, Jr., age 36. The firearm Natt possessed and transferred was manufactured outside the State of Arkansas and therefore traveled in interstate commerce. Prior to Natt possessing the firearm, Natt was convicted of at least one felony offense and prohibited from possessing firearms. Furthermore, Natt was aware of his status as a convicted felon at the time of possession.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Hot Springs Police Department investigated the case.
Assistant U.S. Attorney David Harris prosecuted the 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 make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Hickory Man Is Sentenced to 50 Years for Sexual Exploitation of A Minor and Possession of Child Sexual Abuse MaterialRead the Press Release
STATESVILLE, N.C. – Vincent Deritis, 33, of Hickory, N.C., was sentenced today to 50 years in prison and a lifetime of supervised release for the sexual exploitation of a minor and possession of child sexual abuse material (CSAM), announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Deritis was also ordered to register as a sex offender after he is released from prison.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Reed Baer of the Hickory Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents, evidence presented at trial and today’s sentencing hearing, between October 2018 and March 2019, Deritis created child pornography of an unknowing minor victim on three occasions. On April 3, 2019, law enforcement executed a search warrant at Deritis’ residence. A forensic analysis of electronic devices seized from the defendant’s home and files in his cloud storage account revealed that Deritis possessed images and videos of the minor victim naked while getting in or out of the shower, photos of the minor’s genitalia, and thousands of images of child pornography Deritis had downloaded from the internet. On June 22, 2022, a federal jury convicted Deritis of three counts of production of child pornography and one count of possession of child pornography.
“Deritis is a child predator who caused a minor victim substantial harm,” said U.S. Attorney King. “Protecting children and holding perpetrators accountable is a priority for my office. Federal prosecutors work hand-in-hand with our law enforcement partners to investigate and prosecute child exploitation cases, and our victim assistance unit ensures that victims and their families receive the support and assistance they need throughout the court process and beyond.”
“This sentence sends the message that those who seek to exploit our most vulnerable population, will face accountability for their predatory ways,” said HSI Special Agent in Charge Martinez. “We will continue to work tirelessly with our law enforcement and community partners to protect the children in our communities.”
Deritis is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended HSI and the Hickory Police Department for their investigation of the case.
Assistant United States Attorney Nick J. Miller, of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
HSI Arrested Comptroller of Athletic Club Indicted in $1 Million Wire Fraud SchemeRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned an indictment on February 23, 2023, charging Zuleika Molina-Orozco with eight counts of wire fraud in violation of Title 18, United States Code, Section 1343.
According to court documents, Molina-Orozco was the comptroller of Company A, a not-for-profit sports and social club located at a resort in Humacao, Puerto Rico, and had access and control over Company A’s bank account. Between October 2019 and March 2022, Molina-Orozco fraudulently made thirty-nine (39) unauthorized wire transfers from Company A’s bank account to three (3) of her credit cards and two (2) unauthorized wire transfers to another bank account, all totaling $1,100,283.36. The money the defendant obtained from the fraud scheme was used to pay the defendant’s personal credit card expenses, to purchase a 2020 Ford F-150 truck, and to transfer money to other individuals.
The defendant is scheduled for her initial court appearance today at 1:30 p.m. before U.S. Magistrate Judge Marshal D. Morgan of the U.S. District Court for the District of Puerto Rico. If convicted, she faces a maximum penalty of 20 years in prison. 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 Rebecca C. González-Ramos, Acting Special Agent in Charge of Homeland Security Investigations (HSI) made the announcement.
HSI investigated the case.
Assistant U.S. Attorney Scott H. Anderson is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former State Lawmaker Sentenced for COVID-19 Fraud Scheme at Springfield Health Care CharityRead the Press Release
SPRINGFIELD, Mo. – A former Missouri state representative was sentenced in federal court today for a nearly $900,000 COVID-19 fraud scheme, as well as a separate $200,000 fraud scheme in which she made false claims about a fake stem cell treatment marketed through her clinics in southern Missouri, and for illegally providing prescription drugs to clients of those clinics.
“This disgraced health care professional exploited her patients, some with terminal illnesses, who came to her for medical care,” said U.S. Attorney Teresa Moore. “This disgraced former public official exploited her constituents as the community struggled during the Covid-19 pandemic by stealing public funds. She lied to her patients, to her community, and to federal agents. Today’s sentence holds her accountable for her fraud and deceit.”
Patricia “Tricia” Ashton Derges, 64, of Nixa, Mo., was sentenced by U.S. District Judge Brian C. Wimes to six years and three months in federal prison without parole. The court also ordered Derges to pay $500,600 in restitution to her victims.
“Derges exploited her position as an elected official and a medical professional to benefit herself financially with complete disregard, to not only her constituents, but to the oath she took as a health care professional to do no harm,” said Charles Dayoub, Special Agent in Charge of FBI Kansas City. “She not only fraudulently received nearly $300,000 in CARES Act funds, but also deceived patients by marketing fake stem cell treatment and illegally provided drugs to clients of her clinics. Her actions were a betrayal of trust, eroding the very core of our confidence in a system we rely on and damaging the public’s trust not only in our elected officials but in our health care system.”
“This official violated the trust of her constituents and her duties as an elected official, by putting personal profit before her community's health and well-being,” said Curt L. Muller, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Her sentencing demonstrates that there are consequences for stealing taxpayer dollars and endangering public health. HHS-OIG will continue to investigate allegations of federal health care fraud and to ensure that these funds are used for their intended purposes.”
On June 28, 2022, Derges was found guilty at trial of 10 counts of wire fraud, 10 counts of distributing drugs over the internet without a valid prescription, and two counts of making false statements to a federal law enforcement agent.
Derges was elected in November 2020 as a Missouri state representative in District 140 (Christian County) and served one term. Derges, who was never a physician, surrendered her assistant physician’s license on June 29, 2023. Derges formerly operated three for-profit Ozark Valley Medical Clinic locations in Springfield, Ozark, and Branson, Mo. Derges also operated the non-profit corporation Lift Up Someone Today, Inc., with a medical and dental clinic in Springfield.
COVID-19 Fraud Scheme
Derges was convicted of three counts of wire fraud related to her attempt to fraudulently receive nearly $900,000 in CARES Act funds. Derges actually was awarded $296,574 in CARES Act funds for Lift Up, although Lift Up did not provide any COVID-19 testing services to its patients. In fact, Lift Up’s medical clinic closed at the beginning of the COVID-19 pandemic and remained closed from March to June 2020.
Derges sought CARES Act funding for COVID-19 testing that had been provided, and already paid for, at her for-profit Ozark Valley Medical Clinic. Derges requested reimbursement for $379,294 in COVID-19 testing and related expenses, and future funding in the amount of $503,350. In total, Derges applied for $882,644 from the CARES Act Relief Fund on Lift Up’s behalf.
Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020, which provided $150 billion to states, tribal governments, and units of local government. Missouri was allocated approximately $2.3 billion. Missouri allocated approximately $34 million in CARES Act funds to Greene County. To administer the CARES Act funds it received, the Greene County Commission created the CARES Act Relief Fund to “promote recovery by funding programs and services that support the needs of those impacted by the COVID-19 public health emergency.” An advisory council of 30 citizen volunteers was appointed to review funding requests and make funding recommendations to the Greene County Commission.
Derges claimed in her application to the Greene County CARES Act Relief Fund that Lift Up provided COVID-19 testing and she sought reimbursement for “COVID-19 eligible expenses” that Lift Up had incurred. To support her claim, Derges provided invoices totaling $296,574 from Dynamic DNA for more than 3,000 COVID-19 laboratory tests. Derges submitted the Dynamic DNA invoices as Lift Up expenditures, although they were actually for testing done at Derges’s for-profit Ozark Valley Medical Clinic.
Lift Up, a non-profit charity, and Ozark Valley Medical Clinic, a for-profit corporation, are separate legal entities. Ozark Valley Medical Center had already received payment from its clients of approximately $517,000 for these COVID-19 tests. Ozark Valley Medical Center charged clients, patients, or their patients’ employers approximately $167 per sample for its COVID-19 testing services. Derges concealed from Greene County that these COVID-19 tests had already been paid for by other payors.
In December 2020, the Greene County Commission awarded Lift Up $296,574 in CARES Act funding based upon Lift Up’s fraudulent application and the Dynamic DNA invoices Derges had submitted. Derges deposited the check into Lift Up’s bank account, then transferred the funds into Ozark Valley Medical Center’s bank account.
Derges provided several more invoices from Dynamic DNA to Greene County later in December 2020 to further support her application for Lift Up, although the invoices were actually for testing done for clients at Ozark Valley Medical Center, raising the total to $589,143 for 6,177 COVID-19 tests. Derges concealed from Greene County that Ozark Valley Medical Center already had been paid approximately $1 million by clients, patients, or their patients’ employers, for these COVID-19 tests.
Stem Cell Fraud Scheme
Derges also was convicted of seven counts of wire fraud related to a nearly $200,000 fraud scheme, which lasted from December 2018 to May 2020. Derges marketed a stem cell treatment that actually utilized amniotic fluid that did not contain any stem cells. The federal indictment charged her with defrauding four specific victims, each of whom testified during the trial.
Derges exclusively obtained amniotic fluid from the University of Utah, which she marketed under the name Regenerative Biologics. Derges advertised Ozark Valley Medical Clinic as a “Leader in … Regenerative Medicine,” including stem cells, and marketed her “stem cell” practice through seminars, media interviews, and social media. Derges made similar claims in personal consultations.
In fact, however, the amniotic fluid Derges administered to her patients did not contain mesenchymal stem cells, or any other stem cells. The amniotic fluid she obtained from the University of Utah was a sterile filtered amniotic fluid allograft (a tissue graft comprised of human amniotic membrane and amniotic fluid components derived from placental tissue). The amniotic fluid allograft was “acellular,” meaning it did not contain any cells, including stem cells.
Despite being told by the University of Utah that the University of Utah’s amniotic fluid allograft was “acellular” and did not contain mesenchymal stem cells, Derges continued to tell her patients and the public that the amniotic fluid allograft contained stem cells.
Derges administered amniotic fluid, which she falsely claimed contained stem cells, to patients who suffered from, among other things, tissue damage, kidney disease, chronic obstructive pulmonary disease (COPD), Lyme disease, and urinary incontinence. In an April 11, 2020, Facebook post Derges wrote of amniotic fluid allograft: “This amazing treatment stands to provide a potential cure for COVID-19 patients that is safe and natural.”
The University of Utah sold its amniotic fluid allograft to Derges for approximately $244 per milliliter and $438 for two milliliters. Derges charged her patients $950 to $1,450 per milliliter. In total, Derges’s patients paid her approximately $191,815 for amniotic fluid that did not contain stem cells.
Controlled Substances Act
Derges also was convicted of 10 counts of distributing Oxycodone and Adderall over the internet without valid prescriptions. Derges, without conducting in-person medical evaluations of the patients, wrote electronic prescriptions for Oxycodone and Adderall for patients and transmitted them to pharmacies over the internet.
Because none of the assistant physicians whom Derges employed at Ozark Valley Medical Clinic could prescribe Schedule II controlled substances, it was the standard practice of the assistant physicians to see a patient and later communicate to Derges the controlled substances they wanted her to prescribe to their patients. Derges, without conducting an in-person medical evaluation of the patients as required by federal law, wrote electronic prescriptions for the patients and transmitted the prescriptions over the internet to pharmacies.
False Statements
Derges also was convicted of two counts of making false statements to federal agents investigating this case in May 2020.
Derges told agents that the amniotic fluid allograft that she used in her practice contained mesenchymal stem cells, which she knew was false. Derges also told federal agents that she had not treated a patient for urinary incontinence with amniotic fluid allograft, which she knew was false.
This case was prosecuted by Assistant U.S. Attorney Shannon Kempf and Supervisory Assistant U.S. Attorney Randall D. Eggert. It was investigated by the FBI, Health and Human Services – Office of Inspector General, the DEA and the Missouri Attorney General’s Medicaid Fraud Control Unit.
Former Sacramento Man Pleads Guilty to Distributing MethamphetamineRead the Press Release
SACRAMENTO, Calif. — Julio Adrian Jimenez-Sevilla, 35, formerly of Sacramento, presently residing in Oregon, pleaded guilty today to distributing at least 50 grams of actual methamphetamine, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Oct. 26, 2016, and December 1, 2016, Sevilla distributed methamphetamine to a buyer. In the October deal, Sevilla sold a buyer approximately 226 grams of 85% pure methamphetamine, and in the December deal, Sevilla sold a buyer approximately 226 grams of 97% pure methamphetamine. On Jan. 23, 2017, Sevilla illegally sold a buyer an AR-15 rifle.
This case is the product of an investigation by the Federal Bureau of Investigation and the FBI’s Safe Streets Gang Task Force. Assistant U.S. Attorney Aaron D. Pennekamp is prosecuting the case.
Sevilla is scheduled to be sentenced on July 11, 2023, by U.S. District Judge John A. Mendez. Sevilla faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of 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 U.S. 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.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Former National Guard member who made antisemitic & violent statements online sentenced to nearly 6 years in prison for making, selling ‘ghost guns’Read the Press Release
COLUMBUS, Ohio – A former Ohio National Guard member was sentenced in federal court today to 71 months in prison and six years of supervised release for making and selling “ghost guns,” untraceable homemade weapons made in whole or in part with a 3D printer.
Court documents detail that Thomas Develin, 25, of Columbus, also made antisemitic and violent statements online while employed to provide security services at local synagogues and Jewish schools.
Develin admitted in his October 2022 plea agreement that he created ghost guns to sell for profit. He also made and possessed homemade conversion devices to convert semi-automatic AR-15 rifles and Glock-type pistols into fully automatic machine guns. Develin admitted that he made and sold firearms that he knew were illegal.
Develin advertised online that he possessed and was selling 3D-printed sears, which are devices designed to convert semiautomatic AR-type rifles into fully automatic rifles. Devices that are intended to convert semiautomatic firearms into fully automatic firearms are considered “machineguns” under federal law. Other messages on Develin’s phone stated that he had manufactured a two-handed firearm with an overall length under 26 inches, which is illegal.
On March 31, the day Develin was arrested, agents discovered in his vehicle: night vision goggles, ballistic plates, a ballistic helmet, first aid equipment and a large quantity of ammunition including several loaded magazines.
Agents discovered more than 25 firearms in Develin’s residence and vehicle while executing search warrants in March and April 2022. They also discovered two IED manuals.
Develin admitted in his plea agreement that in late March 2022, he knew law enforcement may be coming for him, so he went to the property surrounding the cabin of a person he knew to hide and burn illegal firearms parts. In text messages with another person, Develin also discussed hiding and destroying incriminating evidence. Develin admitted he took these acts with the intent to obstruct the investigation.
Develin was also sentenced today in the Franklin County Court of Common Pleas to six years in state prison for various crimes, including making terroristic threats. His state sentence will run concurrent to his federal term of incarceration.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Columbus Police Chief Elaine Bryant announced the sentence imposed today by U.S. District Judge Sarah D. Morrison. The law enforcement agencies were assisted by the Federal Bureau of Investigation (FBI). Assistant United States Attorneys Peter K. Glenn-Applegate and Jessica W. Knight are representing the United States in this case.
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Former City of Harvey Employee Found Guilty on Five Counts of Facilitating BriberyRead the Press Release
CHICAGO — A federal jury in Chicago has found a former building inspector for the City of Harvey guilty on five counts of using a facility of interstate commerce (a cell phone) to facilitate violations of the Illinois state bribery statute.
Evidence at trial revealed that between February to April of 2018, Lester Crowder, 73, of Ohio met nine times with an individual who said he was looking to open a nightclub in Harvey. In those meetings, Crowder communicated that the individual would need to pay up to $50,000 in cash bribes in order to obtain the nightclub property and obtain the necessary permits. Crowder collected approximately $13,000 in bribe payments from the individual, who was cooperating with the FBI and recording their conversations. During the same time, Crowder was captured on court-authorized recordings communicating with another individual confirming their intent to take bribes.
Sentencing has not yet been scheduled before the Honorable Martha Pacold. Each count could carry a sentence of up to five years in federal prison.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Robert W. Wheeler, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Machelle L. Jindra, Special Agent in Charge of the Housing and Urban Development Office of the Inspector General. The government is represented by Assistant U.S. Attorneys Sean Franzblau and Megan DeMarco.
Former Bookkeeper Sentenced to over 2 Years in Federal Prison for Stealing Nearly One Million Dollars from Anderson Community School CorporationRead the Press Release
INDIANAPOLIS- Carla Burke, 63, of Anderson, Indiana was sentenced to 28 months in federal prison after pleading guilty to wire fraud and falsifying tax documents.
According to court documents, Carla Burke served as the Anderson Community School Corporation (ACSC) Food Service Department’s Bookkeeper since 2007. As part of her employment duties, Burke maintained the financial records, bank account, and vendor invoices for the Food Service Department, and generated checks in the name of the Department for payments to vendors.
From January 1, 2014, to June 30, 2019, Burke issued checks in the name of ACSC Food Service to herself as the payee and then cashed the checks at her personal bank. Burke falsified records by recording that the payee was a vendor, rather than herself. Burke then cashed the checks and used the money for her own personal expenditures, including gambling.
In order to conceal her scheme, Burke failed to report approximately $225,381 in income derived from the checks on five years of income tax returns, then lied to federal agents about her conduct.
The scheme was uncovered during a routine, scheduled Indiana State Board of Accounts (SBOA) audit. SBOA conducted a disbursement of funds test and found missing documentation. In total, Burke cleared approximately 312 fraudulent checks totaling $976,773.29 in losses to ACSC.
“The defendant stole nearly a million dollars intended to put food in the mouths of children to satisfy her own greed,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Public employment is a public trust, and the sentence imposed today shows that those who violate that trust will be held accountable. I commend the SBOA for their diligence and partnership with our office as we combat waste, fraud, and abuse on behalf of all Hoosiers.”
The Federal Bureau of Investigations, Internal Revenue Service, and Indiana State Board of Accounts investigated this case. The sentence was imposed by U.S. District Court Judge, James P. Hanlon. Judge Hanlon also ordered that Burke be supervised by the U.S. Probation Office for 3 years following her release from Federal prison. Burke was also ordered to pay $976,772.39 in restitution to Anderson Community School Corporation and $141,190 to the Internal Revenue Service.
U.S. Attorney Myers thanked Assistant United States Attorney Tiffany J. Preston, who prosecuted this case.
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Former Advanced Practice Nurse Admits Role in Health Care Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – A former Pennsville, New Jersey, advanced practice nurse today admitted defrauding New Jersey state and local health benefits programs and other insurers by submitting fraudulent claims for medically unnecessary prescriptions, Attorney for the United States Vikas Khanna announced.
Ashley Lyons-Valenti, 66, of Swedesboro, New Jersey, pleaded guilty today by videoconference before U.S. District Judge Robert B. Kugler to an information charging her with one count of conspiring to commit health care fraud.
Lyons-Valenti was previously charged with Vincent Tornari, 49, of Linwood, New Jersey, and Brian Sokalsky, 44, of Margate, New Jersey, in a 33-count indictment in June 2020. The charges against Tornari and Sokalsky remain pending, and they are set to proceed to trial later this year. The charges and allegations against Tornari and Sokalsky are merely accusations, and they are presumed innocent unless and until proven guilty.
According to court documents and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
Lyons-Valenti was previously an advanced practice nurse at a medical office in Pennsville, New Jersey. At the same time, Tornari hired Lyons-Valenti’s live-in boyfriend to be a sales representative for his company which promoted compound medications, even though Lyons-Valenti’s boyfriend had no background or experience in medicine and pharmaceutical sales. Tornari and Lyons-Valenti’s boyfriend had an agreement that the boyfriend would receive a commission on all prescriptions authorized by Lyons-Valenti. Lyons-Valenti then authorized numerous medically unnecessary prescription medications associated with Tornari and her boyfriend – including for her patients, staff members and co-workers at the medical office where she worked, and her children – for the sole purpose of financially benefitting herself, her boyfriend, and Tornari. In exchange for authorizing the prescriptions, Lyons-Valenti’s boyfriend paid her half of his commissions that he received from Tornari. As a result of the scheme, health insurance paid over $1.2 million for medically unnecessary medications and Lyons-Valenti received over $90,000 in kickbacks for signing the prescriptions.
As part of her plea agreement, Lyons-Valenti also admitted to attempting to obstruct or impede the administration of justice with respect to the investigation of the health care fraud conspiracy by trying to influence the testimony of a grand jury witness.
Lyons-Valenti faces a maximum penalty of 10 years in prison and a $250,000 fine. Sentencing is scheduled for July 11, 2023.
Attorney for the United States Khanna credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of IRS - Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark; and the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Jonathan Mellone, with the investigation leading to today’s guilty plea.
The government is represented by Christina O. Hud, Senior Trial Counsel in the Health Care Fraud Unit; R. David Walk, Jr., Chief of the Opioid Abuse Prevention and Enforcement Unit; and Assistant U.S. Attorney Daniel A. Friedman of the Criminal Division in Camden.
lyonsvalenti.sinformation.pdfFlorida Sex Offender Sentenced to Federal Prison for Attempting to Exploit A 13-Year-Old Minor in TennesseeRead the Press Release
NASHVILLE – A Florida man previously convicted of sex crimes against a child was sentenced yesterday in U.S. District Court in Nashville to 15 years in federal prison for attempted production of child pornography or attempted sexual exploitation of a minor, announced U.S. Attorney Henry C. Leventis.
David Earl Parker, 62, of Bryceville, Florida, was also ordered to serve seven years of supervised release upon the expiration of his prison sentence.
Parker was indicted in December 2021, after contacting an undercover FBI agent online, who was posing as a 13-year-old female living in Clarksville, Tennessee. During subsequent months of texting the purported minor female, Parker sent photos of his genitals and requested that the minor female send nude photos to him. The conversations continued with Parker making sexually explicit comments and eventually planned to travel to Clarksville to have sex with her. On January 23, 2022, the FBI arrested Parker in Bryceville, Florida on the warrant associated with the indictment. Parker pleaded guilty in October.
Parker was previously convicted in Florida in 2015 after being arrested for similar conduct and arriving at an agreed location to have sex with a 14-year-old female.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Monica R. Morrison.
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Felon Sentenced for Possessing Firearm Used in Gilpin Court ShootingRead the Press Release
RICHMOND, Va. – A Richmond man was sentenced today to 78 months in prison for being a convicted felon in possession of a firearm.
According to court documents, on February 19, 2021, T'Mar Green, 23, and another person were approached by law enforcement officers in Gilpin Court. When the officers asked if they could speak with them, both individuals began to run from the officers. While running, Green pulled out a firearm that he had in his possession and threw the loaded firearm near one of the residential buildings in the 100 block of St. James Street. Officers then detained Green and recovered the firearm.
After officers recovered the firearm, they were able to link it to a shooting which occurred on February 16, 2021, also in Gilpin Court. On that date, Green and others engaged in a shootout where Green shot and wounded another person with the same firearm he possessed on February 19, 2021. The victim was treated for his injuries at a local hospital. Green was previously prosecuted in State Court for the shooting.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Michael Weddel, Acting Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorney Stephen E. Anthony prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-15.
Federal Jury Finds Precision Lens and Owner Paul Ehlen Liable for Paying Kickbacks in Violation of the False Claims ActRead the Press Release
ST. PAUL, Minn. – A federal civil jury has returned a verdict in favor of the United States for more than $43 million for violations of the False Claims Act and Anti-Kickback Statute. During the six-week jury trial before U.S. District Judge Wilhelmina M. Wright, the United States proved that the Defendants the Cameron-Ehlen Group, Inc., which does business as Precision Lens, and its owner Paul Ehlen paid kickbacks to ophthalmic surgeons to induce their use of Defendants’ products in cataract surgeries reimbursed by Medicare. The jury found that Defendants’ kickbacks caused the submission of 64,575 false claims to the Medicare program between 2006-2015.
As proven at trial, Precision Lens and Ehlen provided kickbacks to physicians in various forms, including travel and entertainment. The United States identified multiple examples of trips, including high-end skiing, fishing, golfing, hunting, sporting, and entertainment vacations, often at exclusive destinations. For many of the trips, Precision Lens and Ehlen transported physicians to luxury vacation destinations on private jets. These included trips to New York City to see a Broadway musical, the College Football National Championship Game in Miami, Florida, and the Masters golf tournament in Augusta, Georgia. Precision Lens and Ehlen also sold frequent flyer miles to their physician customers at a significant discount, enabling the physicians to take personal and business trips at well below fair market value.
The United States also proved that Precision Lens maintained a fund, referred to internally at Precision Lens as a secret fund or slush fund, in furtherance of its kickback scheme. Precision Lens used money from the secret fund to finance multiple physician trips.
“The False Claims Act and the Anti-Kickback Statute provide assurance to the United States and Medicare beneficiaries that healthcare decisions are made based on the best interest of the patient and nothing else,” said Assistant U.S. Attorney Chad Blumenfield. “The jury’s verdict protects the integrity of the Medicare system for patients and those healthcare providers who operate fairly and legally. Companies may not use expensive trips and other items of value to persuade physicians to use their products, and physicians may not accept that remuneration. We thank the jury for its service throughout this lengthy trial.”
The United States previously announced a $12 million settlement of related allegations with Sightpath Medical, Inc. and TLC Vision Corporation (collectively “Sightpath”) and their former CEO, James Tiffany. Dr. Jitendra Swarup also resolved claims that he had accepted kickbacks in a settlement agreement of more than $2.9 million.
This civil lawsuit was originally brought by a Relator, or whistleblower, under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government for false claims and to share in any recovery. The government often relies on whistleblowers to bring fraud schemes to light that might otherwise go undetected. The whistleblower in this matter, Kipp Fesenmaier, will receive a percentage of the amounts awarded at trial.
The case was handled by the Civil Division of the U.S. Attorney’s Office for the District of Minnesota, including AUSAs Chad Blumenfield, Bahram Samie, and Andy Tweeten and paralegals Darcie Boschee and Laura Kolars. The case was investigated with assistance from the Office of Inspector General of the U.S. Department of Health and Human Services and the Federal Bureau of Investigation.
Federal Firearms Licensee Pleads Guilty to 5 Counts of Violating Gun LawsRead the Press Release
PITTSBURGH, PA - A resident of Butler, Pennsylvania, pleaded guilty in federal court to charges of violating federal firearm laws, Acting United States Attorney Troy Rivetti announced today.
Grant Williams, age 61, pleaded guilty to five counts of failure to make entry in a record by a federal firearms dealer before Chief United States District Judge Mark R. Hornak.
In connection with the guilty plea, the Court was advised that Williams held a federal firearm license and sold firearms from his business, Sportsman’s Supply Company, in Butler, Pennsylvania. As a federal firearm licensee, Williams was required to maintain acquisition and disposition books related to the firearms he obtained and sold. When selling a firearm, Williams was required by federal law to record a firearm’s description and the transferee’s name, place of residence, and date of birth. Federal firearm licensees are required to share such records with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to determine the disposition of firearms in the course of a criminal investigation.
In April 2022, the ATF attempted a firearm trace of a firearm sold by Williams that had been used in a crime. Because Williams’ acquisition and disposition books did not record the disposition of that firearm, the trace was unresolved. Due to a subsequent unresolved firearm trace, the ATF conducted an audit of Williams’ records between May and August 2022. The audit revealed that 2,636 firearm acquisitions were neither in William’s possession nor recorded in his disposition records.
The ATF’s investigation revealed that Williams’ annual firearm sales grew to about 50,000 firearms per year during the COVID-19 pandemic. The investigation further revealed that many of Williams’ firearm sales used GunBroker.com, which is an online auction site that operates similar to eBay. Following the close of an auction, the firearm would be mailed from Williams’ possession to a different federal firearm licensee to be transferred to the buyer. However, Williams was still required to record the disposition of those firearms. During the pandemic, Williams’ business was one of the top five sellers on GunBroker.com.
At each count, the law provides for a term of imprisonment not more than one year, a fine of $100,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court placed Williams on bond.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation that led to the prosecution of Williams.
Executive Director of Dubois County Nonprofit Charged with Embezzling over $156,000Read the Press Release
EVANSVILLE- Ellen L. Corn, 47, of Petersburg, Indiana has been indicted by a federal grand jury on fifteen counts of wire fraud, after allegedly embezzling over $156,000 from a Dubois County nonprofit organization that facilitates a youth mentoring program. The indictment was unsealed on February 27, 2023, following Corn’s arrest and initial appearance.
According to court documents, Corn served as the Executive Director for the nonprofit from March 2017 through August 2022. During her employment, Corn had various financial responsibilities including entering all income and expenses into the organization’s accounting software.
Over that five-year period, Corn allegedly stole more than $156,000 by using an organizational credit card for personal expenses without authorization. She attempted to conceal her unauthorized purchases by not entering them into the accounting software. Corn allegedly used the organization’s credit card to purchase goods and services from various businesses, including Amazon, Target, Walmart, and to make payments to colleges. Further, Corn allegedly used the credit card to make electronic payments from the official business PayPal account to her personal PayPal account. Once the funds appeared in her PayPal account, she transferred them to her personal checking account.
If convicted of wire fraud, Corn faces up to 20 years’ imprisonment. A federal district court judge will determine the actual sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Jeffrey R. Adams, Special Agent in Charge of the USSS Indianapolis Field Office, and Nathan Schmitt, Chief of Police for the Jasper Police Department made the announcement.
U.S. Attorney Myers thanked Assistant United States Attorney Matthew B. Miller, who is prosecuting this case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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El Departamento de Justicia obtiene $9 millones de Park National Bank para resolver alegaciones de discriminación por exclusión financiera en el ámbito crediticioRead the Press Release
El Departamento de Justicia hoy anunció un acuerdo de $9 millones para resolver alegaciones de que Park National Bank (Park National), con sede en Newark, Ohio, incurrió en un patrón o una práctica de discriminación en el ámbito crediticio al practicar “exclusión financiera” (“redlining”, en inglés) en la zona metropolitana de Columbus. El acuerdo forma parte de la Iniciativa para Combatir la Exclusión Financiera a nivel nacional del Departamento de Justicia que el Fiscal General Merrick B. Garland lanzó en octubre de 2021.
“Por demasiado tiempo se han cerrado las puertas de ser propietarios de vivienda a las familias afroestadounidenses y a muchas otras personas de color debido a las prácticas ilegales de exclusión financiera de los bancos y otras instituciones financieras”, afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Cuando los bancos no proporcionan un acceso equitativo a los servicios crediticios en los barrios de color, incurren en una práctica moderna de exclusión financiera y agravan la disparidad racial de riqueza en nuestro país. El Departamento de Justicia seguirá luchando para cumplir la promesa de las leyes de préstamos justos de nuestra nación, al tiempo que derriba las barreras discriminatorias que niegan a los afroestadounidenses y a otras personas de color el acceso a las oportunidades económicas y a ser propietarios de vivienda”.
“Hagamos que el acuerdo de hoy envíe un mensaje muy claro a los bancos: no toleraremos prácticas discriminatorias en el ámbito crediticio y les haremos rendir cuentas”, declaró Kenneth L. Parker, el Fiscal Federal para el Distrito Sur de Ohio. “Estamos comprometidos a hacer cumplir las leyes de préstamos justos, que exigen que las instituciones financieras ofrezcan igualdad de oportunidades a todos los estadounidenses para obtener préstamos y crédito hipotecarios. Nos tomamos muy en serio nuestro deber y honor de hacer cumplir esas leyes”.
La exclusión financiera es una práctica ilegal en la que los prestamistas evitan proporcionar servicios de crédito a las personas que viven en comunidades de color por motivos de la raza, color de piel u origen nacional de los residentes en esas comunidades. En la demanda entablada hoy ante el Tribunal Federal de Distrito para el Distrito Sur de Ohio se alega que, al menos desde 2015 hasta 2021, Park National no prestó servicios de crédito hipotecario al reducir la oferta en los barrios de mayoría afroestadounidense e hispana de la zona de Columbus. En concreto, la demanda alega que todas las sucursales y prestamistas hipotecarios de Park National en la zona de Columbus se concentraron en barrios de mayoría blanca, y que el banco no tomó ninguna medida significativa para compensar su falta de presencia física en las comunidades de mayoría afroestadounidense e hispana.
En virtud de la orden por consentimiento propuesta, que también fue entablada hoy ante el tribunal federal y está sujeta a aprobación judicial, Park National ha acordado, entre otras cosas, hacer lo siguiente:
- Invertir al menos $7.75 millones en un fondo de subvención de préstamos para aumentar el acceso al crédito para hipotecas, mejoras y refinanciación de viviendas, así como préstamos y líneas de crédito sobre el valor neto de la vivienda, en los barrios de mayoría afroestadounidense e hispana de la zona de Columbus; $750,000 en iniciativas de divulgación, publicidad, y educación financiera de los consumidores y asesoramiento crediticio; y $500,000 en el desarrollo de asociaciones comunitarias para prestar servicios a los residentes de zonas de mayoría afroestadounidense e hispana que amplíen el acceso al crédito hipotecario residencial;
- Abrir una nueva sucursal y una nueva oficina de generación de préstamos hipotecarios en los barrios de mayoría afroestadounidense e hispana de la zona de Columbus; garantizar que un mínimo de cuatro prestamistas hipotecarios, al menos uno de los cuales sea hispanohablante, estén asignados para atender a estos barrios; y mantener el puesto a tiempo completo de Director de Préstamos y Desarrollo de Viviendas Comunitarias, responsable de supervisar los préstamos en las zonas de mayoría afroestadounidense e hispana; y
- Realizar una Evaluación de las Necesidades de Crédito de la Comunidad, un estudio de mercado basado en la investigación, para ayudar a identificar las necesidades de servicios financieros en las zonas censales de mayoría afroestadounidense e hispana de la zona de Columbus.
Park National trabajó en colaboración con el Departamento para remediar las inquietudes de exclusión financiera que se habían identificado y ha acordado resolver este asunto sin litigio contencioso.
La Iniciativa para Combatir la Exclusión Financiera es un esfuerzo coordinado para hacer cumplir las leyes para abordar esta forma persistente de discriminación contra las comunidades de color. Desde al lanzamiento de la Iniciativa, el Departamento ha anunciado seis casos y acuerdos de exclusión financiera y ha conseguido $84 millones en ayuda para las comunidades de color que han sido víctimas de discriminación en el ámbito crediticio en todo el país. Esto incluye un acuerdo de $31 millones con City National Bank, el más grande en la historia del Departamento de Justicia.
Se puede encontrar información adicional sobre los esfuerzos del Departamento de hacer cumplir las leyes de préstamos justos en https://www.justice.gov/crt-espanol/hce. Las personas pueden denunciar la discriminación en el ámbito crediticio llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o presentando un informe en línea.
El Departamento de Justicia obtiene $9 millones de Park National Bank para resolver alegaciones de discriminación por exclusión financiera en el ámbito crediticioRead the Press Release
El Departamento de Justicia hoy anunció un acuerdo de $9 millones para resolver alegaciones de que Park National Bank (Park National), con sede en Newark, Ohio, incurrió en un patrón o una práctica de discriminación en el ámbito crediticio al practicar “exclusión financiera” (“redlining”, en inglés) en la zona metropolitana de Columbus. El acuerdo forma parte de la Iniciativa para Combatir la Exclusión Financiera a nivel nacional del Departamento de Justicia que el Fiscal General Merrick B. Garland lanzó en octubre de 2021.
“Por demasiado tiempo se han cerrado las puertas de ser propietarios de vivienda a las familias afroestadounidenses y a muchas otras personas de color debido a las prácticas ilegales de exclusión financiera de los bancos y otras instituciones financieras”, afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Cuando los bancos no proporcionan un acceso equitativo a los servicios crediticios en los barrios de color, incurren en una práctica moderna de exclusión financiera y agravan la disparidad racial de riqueza en nuestro país. El Departamento de Justicia seguirá luchando para cumplir la promesa de las leyes de préstamos justos de nuestra nación, al tiempo que derriba las barreras discriminatorias que niegan a los afroestadounidenses y a otras personas de color el acceso a las oportunidades económicas y a ser propietarios de vivienda”.
“Hagamos que el acuerdo de hoy envíe un mensaje muy claro a los bancos: no toleraremos prácticas discriminatorias en el ámbito crediticio y les haremos rendir cuentas”, declaró Kenneth L. Parker, el Fiscal Federal para el Distrito Sur de Ohio. “Estamos comprometidos a hacer cumplir las leyes de préstamos justos, que exigen que las instituciones financieras ofrezcan igualdad de oportunidades a todos los estadounidenses para obtener préstamos y crédito hipotecarios. Nos tomamos muy en serio nuestro deber y honor de hacer cumplir esas leyes”.
La exclusión financiera es una práctica ilegal en la que los prestamistas evitan proporcionar servicios de crédito a las personas que viven en comunidades de color por motivos de la raza, color de piel u origen nacional de los residentes en esas comunidades. En la demanda entablada hoy ante el Tribunal Federal de Distrito para el Distrito Sur de Ohio se alega que, al menos desde 2015 hasta 2021, Park National no prestó servicios de crédito hipotecario al reducir la oferta en los barrios de mayoría afroestadounidense e hispana de la zona de Columbus. En concreto, la demanda alega que todas las sucursales y prestamistas hipotecarios de Park National en la zona de Columbus se concentraron en barrios de mayoría blanca, y que el banco no tomó ninguna medida significativa para compensar su falta de presencia física en las comunidades de mayoría afroestadounidense e hispana.
En virtud de la orden por consentimiento propuesta, que también fue entablada hoy ante el tribunal federal y está sujeta a aprobación judicial, Park National ha acordado, entre otras cosas, hacer lo siguiente:
- Invertir al menos $7.75 millones en un fondo de subvención de préstamos para aumentar el acceso al crédito para hipotecas, mejoras y refinanciación de viviendas, así como préstamos y líneas de crédito sobre el valor neto de la vivienda, en los barrios de mayoría afroestadounidense e hispana de la zona de Columbus; $750,000 en iniciativas de divulgación, publicidad, y educación financiera de los consumidores y asesoramiento crediticio; y $500,000 en el desarrollo de asociaciones comunitarias para prestar servicios a los residentes de zonas de mayoría afroestadounidense e hispana que amplíen el acceso al crédito hipotecario residencial;
- Abrir una nueva sucursal y una nueva oficina de generación de préstamos hipotecarios en los barrios de mayoría afroestadounidense e hispana de la zona de Columbus; garantizar que un mínimo de cuatro prestamistas hipotecarios, al menos uno de los cuales sea hispanohablante, estén asignados para atender a estos barrios; y mantener el puesto a tiempo completo de Director de Préstamos y Desarrollo de Viviendas Comunitarias, responsable de supervisar los préstamos en las zonas de mayoría afroestadounidense e hispana; y
- Realizar una Evaluación de las Necesidades de Crédito de la Comunidad, un estudio de mercado basado en la investigación, para ayudar a identificar las necesidades de servicios financieros en las zonas censales de mayoría afroestadounidense e hispana de la zona de Columbus.
Park National trabajó en colaboración con el Departamento para remediar las inquietudes de exclusión financiera que se habían identificado y ha acordado resolver este asunto sin litigio contencioso.
La Iniciativa para Combatir la Exclusión Financiera es un esfuerzo coordinado para hacer cumplir las leyes para abordar esta forma persistente de discriminación contra las comunidades de color. Desde al lanzamiento de la Iniciativa, el Departamento ha anunciado seis casos y acuerdos de exclusión financiera y ha conseguido $84 millones en ayuda para las comunidades de color que han sido víctimas de discriminación en el ámbito crediticio en todo el país. Esto incluye un acuerdo de $31 millones con City National Bank, el más grande en la historia del Departamento de Justicia.
Se puede encontrar información adicional sobre los esfuerzos del Departamento de hacer cumplir las leyes de préstamos justos en https://www.justice.gov/crt-espanol/hce. Las personas pueden denunciar la discriminación en el ámbito crediticio llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o presentando un informe en línea.
Drug Trafficking Organization Sentenced to More Than 44 Years Combined in Federal PrisonRead the Press Release
HOT SPRINGS – A Hot Springs drug trafficking organization was sentenced today to federal prison for crimes related to the Distribution of Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the U.S. District Court in Hot Springs.
According to court documents, in 2020, agents with the Drug Enforcement Administration (DEA) began investigating a drug trafficking organization operating within the Western District of Arkansas, Hot Springs Division. During the course of their investigation, investigators identified Jose Luis Aguilar as the leader of this group. Jose Luis Aguilar regularly supplied narcotics to multiple dealers in the Hot Springs area between July 29, 2020, through at least September 25, 2020.
Those members of the drug trafficking organization indicted federally have been sentenced as follows:
Jose Luis Aguilar: age 61, Houston, Texas – one count of Conspiracy to Distribute Methamphetamine and one count of Aiding and Abetting in the Possession with the Intent to Distribute 500 Grams or More of a Mixture or Substance Containing Methamphetamine – 235 months imprisonment and 5-year term of supervised release.
Eric Alexi Aguilar: age 25, Houston, Texas – one count of Conspiracy to Distribute Methamphetamine and one count of Aiding and Abetting in the Possession with the Intent to Distribute 500 Grams or More of a Mixture or Substance Containing Methamphetamine – 120 months imprisonment and 5-year term of supervised release.
James Franklin Wells, Jr: age 60, Hot Springs, Arkansas – one count of Possession with Intent to Distribute More Than 50 Grams of a Mixture or Substance Containing a Detectable Amount of Methamphetamine – 180 months imprisonment and 4-year term of supervised release.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Drug Enforcement Administration, Homeland Security Investigations Little Rock, the Hot Springs Police Department, the 18th East Judicial District Drug Task Force and the Garland County Prosecutors Office investigated the case.
Assistant U.S. Attorney Bryan Achorn and Special Assistant U.S. Attorney Trent Daniels prosecuted the case.
Dr. Charles J. Southall, III Sentenced to 60 Months in Prison for Money Laundering, Obtaining over $889,000 Through FraudRead the Press Release
NEW ORLEANS – DR. CHARLES J. SOUTHALL, III, age 65, was sentenced today by United States District Judge Jay Zainey to 60 months in prison, followed by a 3-year term of supervised release, after SOUTHALL previously pleaded guilty to laundering proceeds unlawfully obtained from a wire fraud scheme, in violation of Title 18, United States Code, Sections 1957 and 2 announced U.S. Attorney Duane A. Evans. Additionally, Judge Zainey ordered SOUTHALL to pay $889,565.86 in restitution to the victims of his offenses and a mandatory $100 special assessment fee.
According to court documents, SOUTHALL has served as the Executive Pastor of First Emanuel Baptist Church (FEBC) since about 1989. FEBC maintained houses of worship in New Orleans, Louisiana, and Baton Rouge, Louisiana, owned multiple parcels of real property in New Orleans, and created housing ministry entities to provide affordable housing to low-income New Orleans residents and to receive income from renting some of the properties FEBC owned. As Executive Pastor, SOUTHALL led and counseled the FEBC congregation, participated in the administration and operation of charitable organizations affiliated with FEBC, including its housing ministries, and solicited donations purportedly for specific repair, developmental, and charitable projects and tithes in support of FEBC and its mission. SOUTHALL received a salary in accordance with the terms of his employment contract, as well as monetary gifts from the FEBC congregation throughout the year.
Exploiting his position as Executive Pastor, SOUTHALL defrauded FEBC and some of its members in several ways. First, SOUTHALL solicited tithes and donations from several members and then improperly diverted the money to his personal use. For example, SOUTHALL solicited a $10,000 tithe from Victim A in July 2019, the proceeds of which he deposited into his personal financial accounts and used to pay for personal expenses. Between August 2016 and July 2020, SOUTHALL solicited multiple donations from Victim B ostensibly for various charitable purposes and the improvement of FEBC’s New Orleans building. SOUTHALL improperly diverted approximately $106,408.38 of the funds Victim B donated to FEBC to financial accounts under SOUTHALL’S personal control and to pay for SOUTHALL’S personal expenses unrelated to FEBC or its mission without the knowledge or authorization of Victim B.
Second, SOUTHALL diverted approximately $150,000 of income that resulted from the rental of properties owned by FEBC and its affiliated housing ministries to his personal use and benefit without the knowledge or authorization of FEBC.
Third, SOUTHALL developed and implemented a scheme to defraud FEBC by causing real properties owned by FEBC to be sold and diverting a portion of the profit from the sale of the real properties to and for SOUTHALL’S personal benefit without the knowledge or authorization of FEBC or the FEBC Board of Trustees. In total, SOUTHALL improperly caused approximately $537,805.51 of profit from the sale of FEBC-owned real properties located on Amelia Street, Fourth Street, and Baronne Street to be diverted to SOUTHALL’S personal benefit improperly and without authorization.
Additionally, SOUTHALL and others created the Spirit of Excellence Academy for the purpose of operating a charter school in New Orleans. In about 2013, SOUTHALL secured funding to create an affiliated school in Baton Rouge. Although Spirit of Excellence received funding in the form of grants and loans, the Baton Rouge school never opened. According to rules promulgated by the State of Louisiana, Board Members of charter schools were prohibited from receiving compensation for providing services to the school other than for reimbursement of actual expenses. As President of the Board of Directors of Spirit of Excellence Academy, SOUTHALL submitted financial statements that represented he had no personal or financial interest with Spirit of Excellence Academy.
Notwithstanding these representations, in about September 2013, SOUTHALL hired Person A to be employed and compensated by Spirit of Excellence Academy for consulting work related to the creation of Spirit of Excellence Academy – Baton Rouge. Between about September 2013 and September 2017, Spirit of Excellence Academy paid Person A approximately $220,600, all of which was deposited into a financial account SOUTHALL and Person A jointly controlled. SOUTHALL regularly diverted a portion of the funds paid to Person A to SOUTHALL’S personal use, including by transferring some of the funds from one or more of the accounts he controlled jointly with Person A to other financial accounts under SOUTHALL’S control or causing the funds to be used to pay SOUTHALL’S personal credit card bills. In total, between about September 2013 and September 2017, SOUTHALL improperly caused approximately $85,351.97 of the funds paid to Person A by Spirit of Excellence Academy to be diverted to SOUTHALL’S personal benefit and use in the manner described above.
In total, SOUTHALL obtained approximately $889,565.86 through his fraudulent schemes. SOUTHALL then engaged in a series of financial transactions using the proceeds of the criminally derived proceeds he obtained, including negotiating a check in the amount of $11,841 to purchase tickets, using funds originating from the sale of the Fourth Street property in the amount of $100,000 to open and fund a JPMC individual investment account for himself; negotiating a cashier’s check in the amount of $95,000 to purchase a vehicle; and negotiating a cashier’s check in the amount of $10,764.11 for the down payment of another vehicle.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and Forensic Accountant Josephine M. Beninati, CPA, CFE in this matter. Assistant United States Attorneys Jordan Ginsberg, Chief of the Public Corruption Unit, and Monetary Penalty and Asset Recovery Unit Asset Forfeiture Coordinator Alexandra Giavotella were in charge of the prosecution.
District Man Sentenced to Seven Years in Prison for Child ExploitationRead the Press Release
WASHINGTON – Jason Tipton, 36, of Washington, D.C., was sentenced today to seven years in prison for distribution of child pornography. Tipton pleaded guilty on October 11, 2022.
According to court documents, after identifying Tipton, law enforcement arrested him in April 2020. During execution of a search warrant at his residence, various digital devices were seized. The partial extraction of his cellphone revealed a series of hyperlinks in a “Notes” section on the phone. A subsequent search of the defendant’s iCloud account revealed these same hyperlinks, which contained over 200 videos depicting the sexual abuse of very young children. Several of these videos depict victims known to law enforcement, who have been identified by the National Center for Missing and Exploited Children as victims depicted in series of child sexual abuse material that is widely traded. The defendant admitted that he had several KIK accounts, all of which he deleted, that he used to trade images depicting the sexual abuse of young children. He admitted to sending pictures of a child relative to strangers that he met over the internet, who had expressed a sexual attraction to children. He admitted that he took pictures of a child sleeping and that he sent those pictures to other individuals he met online.
In addition to the prison term, U.S. District Court Judge Trevor N. McFadden ordered $21,000 in restitution to the victim, 10 years of supervised release, and ordered Tipton to register as a sex offender for 25 years.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
In announcing the sentence, U.S. Attorney Matthew M. Graves, FBI Special Agent in Charge Wayne Jacobs, of the Washington Field Office’s Criminal and Cyber Division, and Chief Robert J. Contee, III, of the Metropolitan Police Department commended the work of the FBI agents and MPD detectives. They also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office Victim/Witness Advocate Yvonne Bryant, and Assistant U.S. Attorney Amy Larson, who investigated and prosecuted the case.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Deputy Attorney General Lisa Monaco and Secretary Deb Haaland Meet with Not Invisible Act CommissionRead the Press Release
This week, as part of the continued work by the Department of Justice and the Department of the Interior to implement the Not Invisible Act and combat the crisis of Missing and Murdered Indigenous People (MMIP), Deputy Attorney General Lisa Monaco and Secretary Deb Haaland hosted the first in-person plenary session of the Not Invisible Act Commission at the U.S. Department of the Interior in Washington, D.C. The two-day meeting follows a series of online sessions since the establishment of the Commission last year.
The Not Invisible Act, which was authored by then-Rep. Haaland and passed into law in October 2020, established the Commission as a cross jurisdictional advisory committee composed of both federal and non-federal members including law enforcement, Tribal leaders, federal partners, service providers, family members of missing and murdered individuals, and survivors. Deputy Attorney General Monaco and Secretary Deb Haaland announced the members of the Commission last year as part of a live event to recognize National MMIP Awareness Day on May 5.
Deputy Attorney General Monaco reported that after hearing from Tribal representatives and subject-matter experts during consultations, the Department of Justice was successful in its efforts to secure more Indian country law enforcement resources to address the crisis of missing or murdered Indigenous People in fiscal year 2023. The Deputy Attorney General also stressed the Department’s commitment to doing everything in its power to offer support and partnership to the Commission as it develops and finalizes its recommendations.
“The Justice Department is steadfast in our pledge to work with Tribal governments in preventing and responding to the violence that has disproportionately harmed Tribal communities. And we are committed to listening and being responsive to what our partners have to say,” said Deputy Attorney General Lisa Monaco. “We are eager to receive the recommendations of this group of experts.”
“This work requires each of us to face our own trauma, to relive unimaginable pain, and visualize a future in which our loved ones are safe and our communities have closure. We're here for our children, grandchildren and relatives we have yet to meet,” said Secretary Deb Haaland. “This work is urgently needed and requires all of us working collaboratively. I am so grateful to the Commission for the work they are doing and the lasting impact they will have.”
The Commission is developing recommendations through the work of six subcommittees focused on improving intergovernmental coordination and establishing best practices for state, Tribal and federal law enforcement to bolster resources for survivors and victim’s families, and combatting the epidemic of missing persons, murder and trafficking of American Indian and Alaska Native peoples, as specified under the law.
As part of the Commission’s final report to Attorney General Merrick B. Garland, Secretary Deb Haaland and Congress, the subcommittees selected specific locations to hold field hearings this year to hear directly from the public in some of the communities most affected by the MMIP crisis:
April:
- Tulsa, Oklahoma
- Anchorage, Alaska
May:
- Flagstaff, Arizona
June:
- Minneapolis, Minnesota
- Northern California
- Albuquerque, New Mexico
July:
- Billings, Montana
* A national, virtual field hearing will be held later in Summer 2023 with details to follow.
Hearings will include both panel discussions and a public comment period. Specific topics of the hearings as well as logistical details and information will be made available to the public as the date of each hearing approaches. Trauma-informed mental health professionals will be available at each location.
Department of Interior Deputy Attorney General Monaco, Secretary Haaland, members of the Not Invisible Act Commission and staffD.C. Woman Sentenced to 32 Months in Prison for Stealing Government Benefit FundsRead the Press Release
WASHINGTON – Rosemary Ogbenna, 46, of the District of Columbia, was sentenced today to 32 months in prison for felony charges relating to her scheme to steal more than $400,000 in government benefit funds, provided by the Social Security Administration (SSA) and the U.S. Department of Veteran’s Affairs (VA), intended for the care and benefit of government beneficiaries.
Ogbenna pleaded guilty on June 28, 2022, in U.S. District Court for the District of Columbia, to charges of mail fraud and false statements. In addition to the prison term, U.S. District Court Judge Trevor N. McFadden ordered 36 months of supervised release and ordered Ogbenna to pay restitution in the amount of $523,696. He also ordered forfeiture in the same amount. Her sentences on the two counts were ordered to run concurrently.
The sentence was announced today by United States Attorney Matthew M. Graves, Special Agent in Charge Michael McGill, of the Social Security Administration (SSA) - Office of Inspector General (OIG), Philadelphia Field Division, Special Agent in Charge Kim Lampkins, of the U.S. Department of Veteran’s Affairs (VA) - Office of Inspector General (OIG) for the Mid-Atlantic Field Office, and Special Inspector General for the Troubled Asset Relief Program Christy Goldsmith Romero.
According to the facts admitted in her guilty plea, Ogbenna perpetrated a scheme in which she obtained and used SSA and VA benefit funds – which were intended for the care of elderly, mentally ill, disabled, and veteran beneficiaries – for her own personal use and benefit. According to Court documents, Ogbenna stole more than $400,000 in government benefits funds intended for the benefit of others who had been tenants of her rooming house business.
The Social Security Administration administers benefit programs under federal law, including the Old-Age, Survivors, and Disability Insurance (“OASDI”) program, which provides monthly benefit funds to qualified retired and disabled workers and their dependents, and to survivors of insured workers. Eligibility and benefit amounts under this program are determined by a worker’s contributions to Social Security. Under another program, qualifying individuals receive monthly benefit funds under the Supplemental Security Income for the Aged, Blind, and Disabled (“SSI”) and related programs.
The U.S. Department of Veterans Affairs serves the needs of American veterans, including providing monthly government benefit funds through its Veterans Benefits Administration.
As Ogbenna admitted in Court documents, she carried out a scheme between at least March 19, 2009 and February 23, 2020, in which she obtained and maintained control over SSA benefit funds for some tenants of her rooming house business by becoming the Representative Payee of their SSA benefit funds. Although a Representative Payee has a duty to use SSA benefits solely on behalf of the beneficiary, Ogbenna used a portion of those funds for her own personal use and benefit. Ogbenna also gained control over some tenants’ monthly VA benefits and used a portion of those VA benefit funds for her personal use and benefit without authority. In addition, Ogbenna made false statements to agents investigating the fraud scheme, claiming she had paid back a beneficiary for using their intended funds when she had not.
This case was investigated by the Social Security Administration (SSA) - Office of Inspector General (OIG), the U.S. Department of Veteran’s Affairs (VA) - Office of Inspector General (OIG) and the Office of the Special Inspector General for the Troubled Asset Relief Program. Assistant U.S. Attorney Diane Lucas of the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia, prosecuted the case, supported by Financial Analyst Bryan Snitselaar and former Paralegal Specialist Chad Byron, and Paralegal Specialists Mariela Andrade, Daniel Haines, and Lisa Abbe.
Coraopolis Man Indicted in Western Pennsylvania and in the District of Columbia on Drug ChargesRead the Press Release
PITTSBURGH - A resident of Coraopolis, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of possession of fentanyl and methamphetamine. Jacob Blair, 25, is also charged in a parallel indictment in the District of Columbia with conspiracy to distribute and possess with intent to distribute fentanyl, methamphetamine, and metonitazen and money laundering.
Blair was arrested by FBI agents on Feb. 24, 2023 in Aliquippa, Pennsylvania. He made an initial appearance in federal court and is detained pending a detention hearing on March 1, 2023.
The indictments were announced by United States Attorney Matthew M. Graves, of the U.S. Attorney’s Office for the District of Columbia and Acting United States Attorney Troy Rivetti, of the U.S. Attorney’s Office for the Western District of Pennsylvania.
According to the three-count Indictment returned in the Western District of Pennsylvania, on or about February 24, 2022, Blair is alleged to have attempted to possess over 100 grams of a mixture and substance containing a detectable amount of a fentanyl analogue; possessed with intent to distribute over 40 grams of a mixture and substance containing a detectable amount of fentanyl and 50 grams of a mixture and substance containing methamphetamine; and possessed with intent to distribute over 400 grams of a mixture and substance containing a detectable amount of fentanyl.
According to the Indictment returned in the District of Columbia, Blair is accused of running a counterfeit drug conspiracy that sold fentanyl and methamphetamine disguised as Oxycontin, Xanax and Adderall on a Darknet Marketplace.
The law provides for a maximum total sentence of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The cases are being prosecuted by Assistant U.S. Attorneys DeMarr Moulton, in the Western District of Pennsylvania, and Kevin Rosenberg in the District of Columbia.
This case is being investigated by the Pittsburgh and Washington, D.C. offices of: the FBI, the Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Department of Homeland Security/Homeland Security Investigations, along with the Pittsburgh Bureau of Police, and the Moon Township Police Department.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Columbia County man sentenced to federal prison for production of child pornographyRead the Press Release
AUGUSTA, GA: A Columbia County man has been sentenced to federal prison for creating and possessing images depicting the sexual exploitation of a child.
Michael Benjamin Buckner, 39, of Grovetown, Ga., was sentenced to 15 years in prison after previously pleading guilty to Attempted Production of Child Pornography, said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge Dudley H. Bowen also fined Buckner $3,500, ordered him to register as a sex offender and to serve 15 years of supervised release upon completion of his prison term. There is no parole in the federal system.
“Investigations and prosecutions of predators continue to be a priority in our efforts to protect the most vulnerable among us,” said U.S. Attorney Steinberg. “We commend our law enforcement partners for their vigilance in following the evidence to hold Michael Buckner accountable.”
As described in court documents and testimony, investigators from the Grovetown Department of Public Safety arrested Buckner and his wife, Amber Buckner, 37, in October 2021 on a state charge of cruelty to children after they were alerted by officers from the Columbia County Board of Education Police. In a subsequent search of the contents of Michael Buckner’s cell phone, investigators and FBI agents discovered photos depicting sexually explicit images of children.
In addition to his federal sentence, Michael Buckner also faces state prosecution for cruelty to children. Amber Buckner is serving a 10-year prison sentence after pleading guilty in December 2022 to a state charge of cruelty to children.
“Our community and its children are much safer with this lengthy prison sentence handed down to Buckner,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “We strive every day to protect our children and will continue to use every law enforcement resource available to identify and prosecute individuals who exploit children in such a manner.”
The case was investigated by the FBI, the Grovetown Department of Public Safety, and the Columbia County Board of Education Police Department, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons, Deputy Chief of the Criminal Division of the U.S. Attorney’s Office for the Southern District of Georgia.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Co-Leader of COVID-19 Loan Fraud Ring Extradited from Montenegro to Begin Serving Prison SentenceRead the Press Release
LOS ANGELES – A Southern California woman who fled to Montenegro to avoid serving a lengthy prison sentence has been returned to the United States after spending approximately one year as a fugitive.
Tamara Dadyan, 43, of Encino, was extradited by Montenegro and arrived in Los Angeles Monday evening. She is expected to appear this afternoon in United States District Court in Los Angeles.
According to court documents, Dadyan was a member of a Los Angeles-based fraud ring that schemed to fraudulently obtain more than $20 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds. Dadyan and her co-conspirators used dozens of fake, stolen or synthetic identities – including names belonging to elderly or deceased people and foreign exchange students who briefly visited the United States years ago and never returned – to submit fraudulent applications for approximately 150 PPP and EIDL loans.
In support of the fraudulent loan applications, Dadyan and her co-conspirators also submitted false and fictitious documents to lenders and the Small Business Administration (SBA), including fake identity documents, tax documents and payroll records. Dadyan and her co-conspirators then used the fraudulently obtained funds as down payments on three luxury homes in California. They also used the funds to buy gold coins, diamonds, jewelry, luxury watches, designer handbags, cryptocurrency, securities and a Harley-Davidson motorcycle.
In June 2021, Dadyan pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud, one count of conspiracy to commit money laundering and one count of aggravated identity theft. She was sentenced in December 2021 to 130 months in prison.
In January 2022, Dadyan fled the United States. U.S. authorities determined Dadyan had fled to Montenegro where she joined Richard Ayvazyan and Marietta Terabelian, two other participants in the scheme and conspiracy who also fled after their convictions. Ayvazyan and Terabelian, who were respectively sentenced to 17 years and six years in prison, were extradited to the United States from Montenegro in November 2022.
United States Attorney Martin Estrada; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI), Los Angeles Field Office; Special Agent in Charge Weston King of the SBA’s Office of Inspector General (SBA-OIG), Western Region; and Special Agent in Charge Jay N. Johnson of the Federal Housing Finance Agency’s Office of Inspector General (FHFA-OIG), Western Region made the announcement.
The Government of Montenegro, including the Ministry of Justice, provided significant assistance in the extradition of Dadyan to the United States. The Justice Department’s Office of International Affairs also provided substantial assistance in securing the arrest and extradition of Dadyan.
The FBI’s Los Angeles Field Office, IRS-CI, SBA-OIG, and FHFA-OIG investigated the case. The U.S. Marshals Service transported Dadyan from Montenegro to the United States.
Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section, and Assistant United States Attorneys Scott Paetty and Brian Faerstein are prosecuting the case. Assistant United States Attorney Dan Boyle is handling forfeiture proceedings. Trial Attorney Goran Krnaich and International Affairs Specialist Marina Shimarova of the Justice Department’s Office of International Affairs handled the extraditions, with significant assistance from Assistant United States Attorney John Lulejian.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted more than 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Co-Leader of COVID-19 Loan Fraud Ring Extradited from Montenegro to Begin Serving Prison SentenceRead the Press Release
A California woman who fled to Montenegro to avoid serving a lengthy prison sentence has been returned to the United States after spending approximately one year as a fugitive.
Tamara Dadyan, 43, of Encino, was extradited by Montenegro and arrived in Los Angeles Monday evening. She is expected to appear this afternoon in the U.S. District Court in Los Angeles.
According to court documents, Dadyan was a member of a Los Angeles-based fraud ring who engaged in a scheme to fraudulently obtain more than $20 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds. Dadyan and her co-conspirators used dozens of fake, stolen, or synthetic identities – including names belonging to elderly or deceased people and foreign exchange students who briefly visited the United States years ago and never returned – to submit fraudulent applications for approximately 150 PPP and EIDL loans.
In support of the fraudulent loan applications, Dadyan and her co-conspirators also submitted false and fictitious documents to lenders and the Small Business Administration (SBA), including fake identity documents, tax documents, and payroll records. Dadyan and her co-conspirators then used the fraudulently obtained funds as down payments on three luxury homes in California. They also used the funds to buy gold coins, diamonds, jewelry, luxury watches, designer handbags, cryptocurrency, securities, and a Harley-Davidson motorcycle.
In June 2021, Dadyan pleaded guilty to one count of conspiracy to commit wire fraud and bank fraud, one count of conspiracy to commit money laundering, and one count of aggravated identity theft. She was sentenced in December 2021 to 10 years and 10 months in prison.
In January 2022, Dadyan fled the United States. U.S. authorities determined Dadyan had fled to Montenegro where she joined Richard Ayvazyan and Marietta Terabelian, two other participants in the scheme and conspiracy who also fled after their convictions. Ayvazyan and Terabelian, who were respectively sentenced to 17 years and six years in prison, were extradited to the United States from Montenegro in November 2022.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Martin Estrada for the Central District of California; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office; Special Agent in Charge Weston King of the SBA Office of Inspector General (SBA-OIG), Western Region; and Special Agent in Charge Jay N. Johnson of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), Western Region, made the announcement.
The Government of Montenegro, including the Ministry of Justice, provided significant assistance in the extradition of Dadyan to the United States. The Justice Department’s Office of International Affairs also provided substantial assistance in securing the arrest and extradition of Dadyan.
The FBI Los Angeles Field Office, IRS-CI, SBA-OIG, and FHFA-OIG investigated the case. The U.S. Marshals Service transported Dadyan from Montenegro to the United States.
Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Brian Faerstein and Scott Paetty for the Central District of California are prosecuting the case. Assistant U.S. Attorney Dan Boyle for the Central District of California is handling forfeiture. Trial Attorney Goran Krnaich and International Affairs Specialist Marina Shimarova of the Justice Department’s Office of International Affairs handled the extraditions with assistance from Assistant U.S. Attorney John Lulejian for the Central District of California.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted more than 200 defendants in more than 130 criminal cases and has seized over $78 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Charleston Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Scott Phalen, 63, of Charleston, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on July 15, 2022, law enforcement officers responded to a report from an employee at a Kanawha City restaurant in Charleston that an individual had placed a firearm in a trash can at the restaurant. Officers recovered a SCCY, model CPX-1, 9mm semi-automatic pistol from the trash can. Phalen admitted to possessing the firearm and further admitted to placing the firearm in the trash can.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Phalen was prohibited from possessing a firearm because of his prior felony conviction for first-degree sexual abuse in Kanawha County Circuit Court on February 14, 2012.
Phalen is scheduled to be sentenced on June 22, 2023, and faces a maximum penalty of 15 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Troy D. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-204.
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Central Oregon Woman Sentenced to 20 Years in Federal Prison for Sexually Abusing a Child, Sharing Video of Abuse OnlineRead the Press Release
EUGENE, Ore.—A Redmond, Oregon woman was sentenced to 20 years in federal prison today for sexually abusing a six-year-old child, videorecording the abuse, and sharing the video online with a romantic partner.
Selina Wynne Duflo, 35, was sentenced to 240 months in federal prison and 12 years’ supervised release.
According to court documents, on a least two occasions in July 2019, Duflo, acting at the direction of her romantic partner—Daniel Seibert, 30, of Lake Forest, California—sexually abused a six-year-old child in her care, recorded the abuse, and sent the recordings to Seibert. In 2019, federal agents executed a search warrant for digital devices in their investigation of Seibert. While searching Seibert’s devices, police recovered videos of Duflo sexually abusing a six-year-old child. One of the videos also included a two-year-old child.
On May 4, 2021, a federal grand jury in Eugene returned a four-count indictment charging Duflo with production and transportation of child pornography. On December 1, 2022, Duflo pleaded guilty.
On January 21, 2021, Seibert was sentenced in the Central District of California to 292 months in federal prison after previously pleading guilty to producing child pornography, traveling to engage in illicit sex, and using a facility of commerce to induce a minor to engage in criminal sexual activity.
This case was investigated by Homeland Security Investigations (HSI) with assistance from Oregon State Police and the Deschutes County Sheriff’s Office. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to contact HSI at (866) 347-2423 or submit a tip online at report.cybertip.org.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Celebrate Safe Communities 2023Read the Press Release
HONOLULU – The United States Attorney’s Office, Weed and Seed Hawaii, Inc., State of Hawaii Attorney Generalʻs Office, Department of Commerce and Consumer Affairs, Office of the Securities Commissioner, and the Honolulu Police Department, in partnership with Pearlridge Center and along with other community partners are coordinating the Celebrate Safe Communities Day on Saturday, March 4, 2023, 10:00 a.m. to 3:00 p.m. at Pearlridge Center Mauka. This is a free event for the entire community.
This partnership was formed so these federal, state and county agencies and other service providers could better work together to keep communities safe from crime, fraud, and disasters. “We are delighted to participate again in this event, which has helped educate our community about important safety issues since 2012,” said United States Attorney Clare E. Connors. “Everyone is a potential target and to keep safe, it is critical to know about threats such as online scams, fraud prevention, disaster preparedness, and substance abuse prevention. This partnership helps our different agencies provide as much useful information to as many families as possible.”
There will be over 30 interactive vendors at Pearlridge Center Mauka along with static displays in the TJ Maxx parking lot. Some of the vendors and static displays include those from the United States Attorney’s Office, Honolulu Police Department, Honolulu Fire Department, Hawaii Army National Guard, Department of Public Safety canine unit, Hickam Federal Credit Union’s Keiki ID, Walk Wise Hawaiʻi, Aloha Medical Mission and many other excellent resources vendors.
For more details, please visit pearlridgeonline.com. For more information, contact Lorrie Kanno, Program Director, Weed and Seed Hawaii at [email protected] (e-mail) or https://weedandseedhi.org./ (web).
Cairnbrook Man Pleads Guilty to Possessing Methamphetamine and Unlawfully Possessing a Firearm and AmmunitionRead the Press Release
JOHNSTOWN, Pa. – A former resident of Cairnbrook, PA pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, Acting United States Attorney Troy Rivetti announced today.
Travis Emert., age 43, pleaded guilty to Counts One and Two of the Indictment, before United States District Judge Stephanie L. Haines.
In connection with the guilty plea, on or about Nov. 9, 2021, Emert knowingly, intentionally, and unlawfully, possessed with the intent to distribute a quantity of a mixture and substance containing a detectable amount of methamphetamine, a Schedule II controlled substance. Further, on or about Nov. 9, 2021, Emert knowingly, intentionally, and unlawfully, possessed firearms and ammunition, after having previously been convicted of a crime punishable by imprisonment for a term exceeding one year.
Judge Haines scheduled sentencing for July 5, 2023. The law provides for a maximum sentence of 20 years in prison, a fine of $1,000,000, or both, for Count One, and a maximum sentence of 15 years in prison, a fine of $250,000, or both, for Count Two. 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 Arnold P. Bernard Jr. is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Laurel Highlands Resident Agency, Pennsylvania State Police, and the Somerset County District Attorney’s Office conducted the investigation that led to the successful prosecution of Emert.
Brown County Man Sentenced to 60 Months in Prison for Possession with Intent to Distribute and Distribution of MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – A Timewell, Illinois man, Thomas L. Langan, 58, of the 1800 block of East Street. has been sentenced to 60 months for possession with intent to distribute and distribution of methamphetamine.
At the sentencing hearing, the government presented evidence that the defendant sold 100% pure methamphetamine from his residence in Brown County on multiple occasions, culminating in a search warrant of the residence resulting in federal prosecution. The months long investigation also resulted in the forfeiture of Langan’s residence by the Brown County State’s Attorney, due to its use in the trafficking of methamphetamine. Evidence was also presented that Langan had a prior conviction from Brown County relating to manufacturing methamphetamine at the residence in 2013.
Langan was indicted in May of 2022 and pleaded guilty in September of 2022. He has been detained by the United States Marshals Service since his arrest.
The statutory penalties for distribution of more than 5 grams of methamphetamine and possession of methamphetamine with intent to distribute more than five grams of methamphetamine are not less than five years in prison and up to 40 years in prison, at least 4 years of supervised release, and up to a $5,000,000 fine. The statutory penalties for distribution of methamphetamine are up to 20 years in prison, up to 3 years of supervised release, and up to a $1,000,000 fine.
“Ice methamphetamine’s rampant use in Central Illinois places a burden on everyone. Our society’s health care systems, social services, law enforcement, and the community, have suffered the devastating impact of pure methamphetamine on communities in Central Illinois,” said Assistant U.S. Attorney Sarah E. Seberger. “I would like to thank the local, state, and federal agencies for their cooperative and dedicated efforts in this successful prosecution.”
The Drug Enforcement Administration and the Illinois State Police West Central Illinois Task Force investigated the case with assistance from the Brown County Sheriff’s Office and the Brown County State’s Attorney. Assistant United States Attorney Sarah E. Seberger represented the government in the prosecution.
Bookkeeper Pleads Guilty to Embezzling Money from Alaska Native VillageRead the Press Release
ANCHORAGE – A Minto woman entered a guilty plea for embezzling, stealing, and obtaining by fraud money that was owned and under the care, custody, and control of an Indian tribal government.
According to court documents, Melanie Gail Titus, 52, of Minto, was employed as the bookkeeper for the Minto Village Council, which is the federally recognized native governing body for the Native Village of Minto. The Minto Village Council receives federal funding from various federal agencies. The defendant embezzled a total of $55,753.99 between January 2015 and June 2019 from the Minto Village Council. As its bookkeeper, she developed several schemes during her employ including issuing herself multiple payroll checks for the same pay periods, tendering duplicative deposits, and issuing duplicative reimbursements for work expenses.
The defendant is scheduled to be sentenced on June 1, 2023, for the federal charge of theft concerning programs receiving federal funds, and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Lane S. Tucker of the District of Alaska made the announcement.
The Federal Bureau of Investigation, with assistance from the Alaska State Troopers, investigated the case.
Assistant U.S. Attorney George Tran is prosecuting the case.
Berks County Man Indicted for Fraudulently Selling Body ArmorRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Marco Decamillo, age 46, of Reading, Pennsylvania, was indicted by a federal grand jury on a charge of mail fraud.
According to United States Attorney Gerard M. Karam, the indictment alleges Decamillo perpetrated a scheme using his company, “Downrange Tactical,” to advertise and sell ballistic rifle plates and other body armor which Decamillo falsely claimed were certified by the National Institute of Justice. The indictment further alleges, that on January 13, 2021, Decamillo mailed four body armor plate inserts to a P.O. Box in Wyoming, Pennsylvania.
The matter was investigated by Homeland Security Investigations (HSI). Assistant U.S. Attorney James Buchanan is prosecuting the case.
The maximum penalty under federal law for this offense is twenty years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Bemidji Man Pleads Guilty to Possession with Intent to Distribute MethamphetamineRead the Press Release
ST. PAUL, Minn. – A Bemidji man has pleaded guilty to possession with intent to distribute methamphetamine, announced United States Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, on May 2, 2022, law enforcement observed Levi Adams Westbrook, 30, meet with a suspected drug trafficker in the Minneapolis-St. Paul metro area. As Westbrook was traveling back toward northern Minnesota, officers stopped the vehicle in which Westbrook was a passenger. After Westbrook exited the vehicle, officers saw a plastic bag with approximately one pound of methamphetamine on the front passenger floorboard where Westbrook was sitting. Officers also seized a .22 caliber “pen” gun from the passenger compartment. The “pen” gun discharged as the police were securing the gun into evidence.
Westbrook pleaded guilty on February 24, 2023, in U.S. District Court before Judge Wilhelmina M. Wright to one count of possession with intent to distribute methamphetamine. A sentencing hearing has not yet been scheduled.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Southeast Minnesota Violent Crime Enforcement Team, and the Paul Bunyan Drug Task Force.
Assistant U.S. Attorney Bradley M. Endicott is prosecuting the case.
- Belle Vernon Man Sentenced to 7 Years in Prison for Receipt and Possession of Child Sexual Abuse Material
Ava Man Faces Additional Child Pornography ChargesRead the Press Release
SPRINGFIELD, Mo. – An Ava, Mo., man previously indicted for producing child pornography after photos of the child victim’s sexual assault were discovered at his former residence now faces additional charges that include victimizing a second child.
Harold Lloyd Blair, Jr., 66, was charged in a three-count superseding indictment returned by a federal grand jury in Springfield. Today’s indictment replaces the original indictment returned on Dec. 6, 2022, and includes two additional counts.
Today’s superseding indictment retains the original charge against Blair for using a minor to produce child pornography from Dec. 24, 2010, to Dec. 23, 2014. It also includes a second count, involving another child victim allegedly used by Blair to produce child pornography from Oct. 17, 2013, to Oct. 16, 2014.
The indictment also charges Blair with one count of possessing child pornography.
The investigation began on Dec. 2, 2022, when workers employed by Douglas County, Mo., were tearing down Blair’s former residence after he sold it to the county. The workers discovered a filing cabinet that contained images of child pornography and contacted the Douglas County, Mo., Sheriff’s Department.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Douglas County, Mo., Sheriff’s Department, Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, and the West Plains, Mo., Police Department, with assistance from the Douglas County, Mo., Prosecuting Attorney.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Ava Man Faces Additional Child Pornography ChargesRead the Press Release
SPRINGFIELD, Mo. – An Ava, Mo., man previously indicted for producing child pornography after photos of the child victim’s sexual assault were discovered at his former residence now faces additional charges that include victimizing a second child.
Harold Lloyd Blair, Jr., 66, was charged in a three-count superseding indictment returned by a federal grand jury in Springfield. Today’s indictment replaces the original indictment returned on Dec. 6, 2022, and includes two additional counts.
Today’s superseding indictment retains the original charge against Blair for using a minor to produce child pornography from Dec. 24, 2010, to Dec. 23, 2014. It also includes a second count, involving another child victim allegedly used by Blair to produce child pornography from Oct. 17, 2013, to Oct. 16, 2014.
The indictment also charges Blair with one count of possessing child pornography.
The investigation began on Dec. 2, 2022, when workers employed by Douglas County, Mo., were tearing down Blair’s former residence after he sold it to the county. The workers discovered a filing cabinet that contained images of child pornography and contacted the Douglas County, Mo., Sheriff’s Department.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Stephanie L. Wan. It was investigated by the Douglas County, Mo., Sheriff’s Department, Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, and the West Plains, Mo., Police Department, with assistance from the Douglas County, Mo., Prosecuting Attorney.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Authorities Make Huge Methamphetamine Seizure at Border; Tijuana Man Arrested and ChargedRead the Press Release
SAN DIEGO – A Tijuana man appeared in federal court late yesterday to face federal drug trafficking offenses following the seizure of more than 2,200 pounds of methamphetamine and 53 pounds of fentanyl discovered in the Chevy van he was driving as he attempted to cross into the United States through the Otay Mesa Port of Entry Cargo Facility.
It is believed to be one of the largest methamphetamine seizures in San Diego County.
The complaint alleges that on February 22, 2023, at approximately 3:47 p.m., the 2005 Chevy Van applied for entry into the United States through the Otay Mesa Commercial Port of Entry. A Customs and Border Protection Officer referred the vehicle to a secondary inspection area based on a computer-generated referral. Officers found 63 packages in the rear cargo area of the van concealed within cardboard boxes. The packages contained substances that field-tested positive for methamphetamine and fentanyl. Law enforcement then arrested the driver, Andres Gonzales Soriano.
“This is huge quantity of dangerous drugs that is no longer destined for the streets of San Diego and beyond,” said U.S. Attorney Randy Grossman. “A seizure of this magnitude saves lives.” Grossman thanked the prosecution team as well as Customs and Border Protection and Homeland Security Investigations for their excellent work on this case.
“These drugs are a blight that destroy lives and fuel crime and violence in our communities,” said Chad Plantz, special agent in charge, HSI San Diego. “This massive seizure likely saved lives and delivers a significant financial blow to the drug cartels.
“CBP officers are the front-line of stopping these dangerous drugs from entering the U.S.” said Sidney K. Aki, CBP Director of Field Operations in San Diego. “Keeping our communities safe is among our top priorities, and this major interdiction will prevent its negative impacts and the proceeds from funding transnational criminal organizations.”
DEFENDANTS Criminal Case No: 23-mj-0611-BLM
Andres Gonzalez Soriano 24 Tijuana
SUMMARY OF CHARGES
Importation of Methamphetamine and Fentanyl, in violation of Title 21 U.S.C. §§ 952 and 960
Maximum Penalty: Twenty years in prison, $1 million fineAGENCY
United States Customs and Border Protection
Homeland Security Investigations
Drug Enforcement Administration
Border Crime Suppression Team
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Monday 27 February 2023
Wichita Man Indicted for Sex TraffickingRead the Press Release
WICHITA, KAN.– A federal grand jury in Wichita returned an indictment charging a Kansas man with sex trafficking.
According to court documents, Markeece Anderson, 30, of Wichita is charged with two counts of sex trafficking by force, fraud or coercion. Anderson allegedly coerced a woman to engage in commercial sexual acts.
The Wichita Police Department is investigating the case.
Assistant U.S. Attorney Jason Hart is prosecuting the case.
OTHER INDICTMENTS
Veronica Mora-Medero, 48, of Ontario, California, was indicted on one count of possession of methamphetamine with the intent to distribute and one count of interstate travel in aid of racketeering. The Drug Enforcement Administration (DEA) is investigating the case. Special Assistant U.S. Attorney Katie Andrusak is prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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West Tennessee Man Sentenced to 14 Years for Methamphetamine PossessionRead the Press Release
Jackson, TN – Jonathan Wayne Green, 41, of Holladay, Tennessee, has been sentenced to 14 years in federal prison for possession of over 50 grams of actual methamphetamine with the intent to distribute. United States Attorney Kevin G. Ritz announced the sentence today.
According to the information presented in court, on April 16, 2019, an officer with the Camden Police Department responded to a trespassing complaint in a restricted area at Camden General Hospital. The officer observed a pickup truck which matched the description from the complaint. After the truck drove into a nearby McDonald’s parking lot, the officer conducted a traffic stop.
The driver, Jonathan Wayne Green, appeared to be nervous while talking with the officer and confessed that he was on state probation and that he had a large amount of methamphetamine in the backseat of his truck. A search of the truck revealed over a pound of methamphetamine (which was individually wrapped in three separate smaller bags inside of a larger Ziplock bag), cash, and drug paraphernalia. Green admitted to selling methamphetamine earlier that night.
United States District Judge S. Thomas Anderson sentenced Green to 168 months' imprisonment, to be followed by five years of supervised release. There is no parole in the federal system.
This case was investigated by the Camden Police Department and the Drug Enforcement Administration (DEA).
United States Attorney Kevin Ritz thanked Assistant United States Attorney Josh Morrow, who prosecuted this case, as well as law enforcement partners who investigated the case.
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.
West Seneca Man Going to Prison for Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Shawn Johnson, 35, of West Seneca, NY, who was convicted of possession of child pornography, was sentenced to serve 48 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney David J. Rudroff, who handled the case, stated that in September 2019, investigators discovered an IP address, traced to Johnson, attempting to download suspected child pornography using the internet. On December 2, 2019, the FBI obtained a search warrant for Johnson’s Angle Road residence. As investigators executed the search, they encountered Johnson standing in his bedroom smashing a laptop computer against the wall and trying to damage it. The laptop, which sustained serious damage, was sent to the FBI's Digital Forensics Analysis Unit Laboratory where much of the data was recovered. The hard drive was found to contain numerous images and videos of child pornography.
The sentencing is the result of an investigation by the by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Matthew Miraglia, and the Cheektowaga Police Department, under the direction of Chief Brian Gould.
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Wells Fargo Personal Banker Sentenced for Money Laundering and Bank FraudRead the Press Release
SAN DIEGO – Leopoldo Lora-Aguilera, a former Wells Fargo personal banker, was sentenced in federal court today to 33 months in custody for money laundering conspiracy and bank fraud.
Aguilera was arrested by FBI agents for his participation in an international money laundering organization based in Tijuana, Mexico which operated primarily in San Diego. The criminal organization laundered funds in excess of $12.5 million dollars before being disrupted by the FBI.
According to the plea agreement and other public records, Aguilera abused his position of trust as a personal banker with Wells Fargo Bank by opening bank accounts with false identities and wire transferring millions of dollars to Mexico. Aguilera conducted these transactions in exchange for thousands of dollars in cash payments from the criminal organization. The FBl's investigation linked these funds to the sale of narcotics by a Mexican drug cartel, specifically the sale of multi-kilogram amounts of fentanyl in the Midwest.
Aguilera admitted to opening 26 bank accounts for the money laundering organization, including eleven that were created by Aguilera using fictitious identities. Specifically, Aguilera used his position as a personal banker with Wells Fargo Bank to knowingly enter false names, passport numbers, and dates of birth on the fictitious bank accounts. These 11 fictitious accounts alone were used by the criminal organization to wire transfer a total of $3.8 million to Mexico. A majority of those wire transfers were conducted by Aguilera himself. Aguilera's use of these fictitious accounts was identified by Wells Fargo and brought to the attention of the FBI. Agents arrested Aguilar and disrupted the scheme shortly after.
In conjunction with Aguilera's arrest, the FBI identified and seized 17 bank accounts that belonged to the money laundering organization containing in excess of $230,000. Further investigation by the FBI resulted in a second round of arrests of Aguilera’s co-conspirators in the Spring of 2022. To date, the FBI has arrested Melisa Valdivia Diaz, Alma Leticia Murillo Valdivia, and Jorge Alberto Ortiz Borrego for participating in the multi-million-dollar money laundering scheme. All three defendants have pleaded guilty in a related case, admitting they participated in the conspiracy. Sentencings are pending.
“Money launderers are a lifeblood of the cartels,” said U.S. Attorney Randy Grossman. “Today’s sentencing underscores that money launderers are key players in the cartel structure and will be treated as such.”
Grossman thanked the prosecution team and the FBI San Diego Cross Border Violence Task Force for their excellent work on this case.
“This case highlights the FBI’s dedication to holding all individuals accountable who make space for the cartels to function in our communities,” said Special Agent in Charge Stacey Moy of the FBI San Diego Field Office. “Although Lara-Aguilera was convicted on the financial aspect of these crimes, his actions directly facilitated the trafficking of fentanyl and other dangerous narcotics throughout our country. The FBI is committed to investigating all who manipulate U.S. financial systems to enable money laundering and drug trafficking.”
This case is the result of efforts by the U.S. Attorney’s Office and the FBI San Diego Cross Border Violence Task Force, who were assisted by Wells Fargo Bank's internal investigators in Arizona and California. This case is being prosecuted by Assistant U.S. Attorney Blanca Quintero.
DEFENDANT Case Number 19-CR-1955-BAS
Leopoldo Lora-Aguilera Age: 58 Chula Vista, CA
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Sections 1956(h) and 1957
Maximum penalties: Twenty years in prison and $500,000 fine
Bank Fraud – Title 18 U.S.C., Section 1344
Maximum Penalties: Thirty years in prison and $1 million fineAGENCY
FBI San Diego Cross Border Violence Task Force
Wells Fargo Agrees to Training on New Companywide Policy to Improve Telephone Access by Customers Who are Deaf or Hard of HearingRead the Press Release
DENVER—The U.S. Attorney’s Office for the District of Colorado announced that it has resolved a complaint under the Americans with Disabilities Act (ADA) made by a Wells Fargo customer who is hard of hearing relating to accessing Wells Fargo’s banking services via telephone. In the resolution, Wells Fargo has adopted changes to its companywide ADA policy for communications with customers with disabilities and agreed to provide training to its call center representatives on the new policy.
The complainant, who has difficulty hearing and speaking on the telephone, attempted to use her caregiver to relay information on her behalf on telephone calls with Wells Fargo customer service representatives. The complainant was a consumer banking and credit card customer with Wells Fargo, and some of her telephone inquiries related to fraudulent charges that had been made using her credit card. The complainant alleged that Wells Fargo refused to permit the caregiver to assist the complainant, which prevented her from receiving services over the telephone. This refusal forced the complainant to visit Wells Fargo bank branches in-person during the COVID-19 pandemic in the summer and fall of 2020.
The ADA requires that places of public accommodation allow individuals with disabilities to use appropriate auxiliary aids and services, including by allowing others to communicate on their behalf, in order to ensure effective communication so that they can receive equal service from businesses and other public accommodations.
To resolve the complaint, Wells Fargo agreed to pay the complainant $10,000. In addition, Wells Fargo made changes to its companywide ADA policy to clarify that companions of individuals with disabilities may provide communication assistance. Wells Fargo also agreed to train call center employees and other customer service representatives on the policy. Wells Fargo also agreed to reach out to other customers who had made complaints about the same issue and notify them of the policy change. These companywide changes and efforts may affect numerous individuals nationwide, as Wells Fargo serves approximately one in three households in the United States, with approximately 4,700 banking locations across the country.
“The U.S. Attorney’s Office is committed to ensuring that customers with hearing disabilities can access the same customer services that are offered to other customers,” said U.S. Attorney Cole Finegan. “We applaud Wells Fargo’s cooperation in adopting companywide policy changes and providing training to ensure that its customer service representatives provide equal access for customers with disabilities.”
Additional information about the U.S. Attorney’s Office’s civil rights enforcement program can be found at https://www.justice.gov/usao-co/civil-rights-enforcement.
This case was handled by Assistant U.S. Attorney Zeyen Wu.